FirstFT: Reeves warns UK public funds in worst state since second world warfare

Good morning. We begin at the moment with Rachel Reeves’s warning that Britain’s new Labour authorities has inherited “the worst set of circumstances since the second world war”.

In her first main speech within the position, the UK chancellor ready the bottom for robust selections on the general public funds this yr as she vowed to prioritise development and unblock housing developments and onshore wind farms.

“We face a legacy of 14 years of chaos and economic irresponsibility,” Reeves mentioned yesterday, as she instructed the Treasury to look at earlier spending underneath the Conservatives.

The Treasury evaluation of the fiscal inheritance from Rishi Sunak’s authorities shall be revealed earlier than parliament’s summer season recess this month.

In an obvious reference to spending controls or tax rises, Reeves mentioned the evaluate would pave the way in which for “difficult choices” in an autumn Price range, the date of which may even be introduced earlier than MPs take their summer season break. Learn the complete story.

Right here’s the newest on the Labour authorities:

And right here’s what I’m protecting tabs on at the moment:

• Nato: Members collect for a three-day assembly in Washington to rejoice 75 years of the navy alliance.

• US finance: US Federal Reserve chair Jay Powell presents his financial coverage report back to the Senate banking committee and Treasury secretary Janet Yellen testifies on the Home committee listening to on the state of the worldwide monetary system.

• Corporations: Kinnevik publishes its half-year outcomes. Looking, OMV and Vistry Group have buying and selling updates.

• European Area Company: Ariane 6 will try its first flight from French Guiana between 3pm and 7pm native time.

5 extra prime tales

1. Joe Biden launched an aggressive effort to carry on to his social gathering’s presidential nomination yesterday, issuing a defiant letter to wavering congressional Democrats and showing on nationwide tv to insist: “I’m not going anywhere.” Right here’s extra on the president’s newest strikes, which embrace becoming a member of a technique name for main contributors.

2. BlackRock, Norges and GIC are backing a listed personal fairness car from the founders of Melrose Industries, in a float this week that may come as a fine addition to the London market. Rosebank Industries bosses will contribute about 10 per cent of the preliminary £50mn fundraising. It will listing on Purpose earlier than rapidly shifting to the principle market as soon as it begins shopping for firms.

3. France’s company leaders are bracing themselves for the top of a decade-long business-friendly local weather after President Emmanuel Macron’s snap legislative elections resulted in a hung parliament. “We need to wait, but we are all worried,” mentioned one enterprise lobbyist. Discover out extra about why political gridlock and the rise of the left have sparked concern.

4. Narendra Modi will maintain talks with Russian President Vladimir Putin in Moscow at the moment, as India’s prime minister seeks to shore up relations and stem considerations about Moscow’s drift in direction of China. Right here’s what to anticipate from his first bilateral go to after India’s election and in addition Modi’s first since Russia’s invasion of Ukraine in 2022.

5. X has been hit by stalling consumer development, because the social media platform’s proprietor Elon Musk divides audiences and it faces the rise of Meta’s rival platform Threads. Following years of double-digit development earlier than Musk’s takeover in 2022, X mentioned its variety of international day by day energetic customers within the second quarter of this yr was 251mn, an increase of 1.6 per cent from the identical interval the yr earlier than. Learn the complete story.

The Huge Learn

A deal to permit US buyers to redevelop a 1999 Nato bomb website in Belgrade is a case research in how a small non-aligned state can put together for Donald Trump’s attainable return to the White Home. It additionally displays a heightened western give attention to Serbia at a time when prising it away from its historic soulmate, Russia, has grow to be a precedence.

We’re additionally studying . . . 

Chart of the day

China’s electrical energy grid is about for an unparalleled funding of greater than $800bn within the subsequent six years to beat strains on the power system because the nation makes a fast shift from coal energy to renewable sources. The ageing grid has grow to be a big bottleneck for inexperienced progress, with rising indicators of stress on electrical energy distribution and transmission.

Take a break from the information

FT Weekend columnist Nilanjana Roy requires a return to studying, not as a distinct segment exercise, however as an important a part of rising up. However for this technology of kids, discovering the time and the fitting books to learn is a severe problem. On this age of smartphones and with library closures widening the equality hole, how do you make studying enticing to youngsters?

Extra contributions from Benjamin Wilhelm and Gordon Smith