FirstFT: Twin scandals hit PwC’s Asia earnings

At present’s agenda: Poland’s historic grievances; Israel bans UNRWA; Spain’s economic system shines; a Nigerian tech ‘unicorn’; and Europe’s automobile disaster

Good morning. We start with the influence of scandals on PwC’s backside line in Asia.

What occurred? PwC’s enterprise within the area shrank over the previous 12 months after twin scandals precipitated the Huge 4 accounting agency to lose shoppers in China and compelled it to promote its authorities consulting arm in Australia.

How dangerous was the hit? The agency reported a 12.7 per cent decline in Asia-Pacific earnings for the 12 months ended June 30, reflecting its lack of market share within the area and offsetting development within the Center East and Europe.

Income in Asia-Pacific, the smallest of the agency’s areas, fell from $10bn within the 2023 fiscal 12 months to $9.3bn, down 5.6 per cent in native currencies.

The 2 scandals compounded an ongoing slowdown within the consulting market that has additionally crimped development at rivals Deloitte and EY of their most up-to-date fiscal years. Learn the complete report.

Right here’s what else I’m protecting tabs on at present:

• Excessive-level conferences: European Fee president Ursula von der Leyen has a working lunch with Nato secretary-general Mark Rutte. Ukrainian President Volodymyr Zelenskyy joins Nordic leaders on the Nordic Council assembly in Reykjavík.

• UK: The funeral of Alex Salmond is held. The previous Scottish first minister died of a coronary heart assault whereas in North Macedonia this month.

• Outcomes: Adidas, Alphabet, BP, HSBC, Lufthansa, McDonald’s, Mondelez, Novartis, PayPal, Pfizer, Reddit, Santander, Visa and YouGov are among the many firms reporting. Full checklist within the Week Forward publication.

Hear straight from the presidents of Kenya and Somalia and different leaders on the FT’s Africa Summit beginning at present, the place they are going to talk about the best way to drive sustainable development throughout the continent. Register right here.

5 extra high tales

1. Ukraine ought to exhume and rebury ethnic Poles massacred on its territory, and Germany ought to spend money on army co-operation and compensate Polish victims of the Nazis, Poland’s overseas minister has mentioned, including that historic grievances can’t be brushed apart even throughout Russia’s struggle towards Ukraine. Learn the complete interview with Radosław Sikorski.

2. Spain is about to surpass the US to turn into the world’s fastest-growing main superior economic system this 12 months, increasing at greater than 3 times the tempo of the Eurozone as an entire. Economists surveyed in a ballot anticipate GDP information this week to indicate the nation’s economic system is on track to increase by 2.7 per cent this 12 months. Right here’s what’s driving development.

3. World funding banks anticipate UK debt gross sales this 12 months to rise near £300bn, the second-highest on report, as the federal government heads for a showdown with bond traders at tomorrow’s Funds. Gilts are on observe for his or her worst month since April as unease over a proposed loosening of the nation’s borrowing guidelines provides gas to a latest sell-off.

• Healthcare enhance: The NHS in England will obtain £1.5bn subsequent 12 months to ship 2mn additional appointments as a part of a multibillion-pound annual package deal to strengthen the well being service.

• Non-public fairness: Executives, lobbyists and advisers are searching for a cope with UK chancellor Rachel Reeves on carried curiosity.

4. Israel’s parliament authorized two items of laws yesterday that ban the UN company for Palestinian refugees from working inside Israeli territory and lower diplomatic ties with the organisation. The measures, which threaten the company’s capability to offer meals, drugs and shelter to just about 2mn Gazans displaced by struggle, have raised issues amongst Israel’s closest allies.

5. Unique: The Nigeria-based fintech Moniepoint has gained “unicorn” standing after elevating $110mn from traders together with Google, a uncommon brilliant spot within the funding marketplace for African tech firms. One of many continent’s fastest-growing teams, Moniepoint supplies digital monetary companies to a market the place many nonetheless lack entry to financial institution accounts. Learn extra concerning the start-up’s growth plans.

• Extra from Nigeria: The nation’s president has summoned oil magnate Aliko Dangote to an emergency assembly with trade officers to debate supplying the industrialist’s new $20bn refinery with crude.

Attempt your hand in working the UK economic system with the FT’s Funds recreation.

The Huge Learn

Europe’s automobile trade is confronting an ideal storm. Demand is falling at house and abroad, whereas firms are navigating a dangerous and costly transition from combustion engines to electrical propulsion. Exacerbating these issues is China, which is exporting high-quality, lower-cost electrical automobiles to Europe in better numbers. Between protectionism and authorities incentives, there are not any simple options.

We’re additionally studying . . . 

• US overseas coverage: America wants a brand new method that’s rooted within the breaking apart of concentrated international financial energy, writes Chris Murphy, the junior senator for Connecticut.

• US elections: With only one week left, Kamala Harris and Donald Trump seem deadlocked. Right here’s what to know concerning the presidential race in its remaining stretch.

• Snap’s struggles: Founder Evan Spiegel is battling to revive the social media firm’s fortunes as ambitions are hit by the rising power of arch-rival Meta.

Chart of the day

The writer of works by JK Rowling and Sarah J Maas, Bloomsbury has remained steadfastly impartial by the years. Its client division, pushed by gross sales of two of essentially the most profitable authors of recent instances, has risen, however the firm can also be diversifying into reference titles, having lately acquired the tutorial checklist of US writer Rowman & Littlefield for $83mn in a hunt for steady revenues.

Take a break from the information

Jean Tinguely is seen as a pioneer of kinetic artwork. With the centenary of the latter-day Dadaist’s start simply months away, the Pirelli HangarBicocca museum in Milan has kicked off celebrations early with a retrospective that highlights the novel nature of his work and his connections with the Italian metropolis.