FirstFT: US relaxes tech restrictions to spice up Aukus safety pact

Good morning. Immediately we’re masking:

• Why SoftBank’s AI talks with Intel collapsed

• The worldwide trend manufacturers chopping Bangladesh orders

• The European fishing boats exploiting international waters

However first, the US is easing its restrictions on sharing delicate know-how with the UK and Australia, with the intention to strengthen their trilateral Aukus safety pact geared toward countering China within the Indo-Pacific.

The US Division of State is amending its Worldwide Site visitors in Arms Regulation guidelines to make it simpler to share military-related know-how with the allies.

The state division stated the reform would imply the UK and Australia didn’t want to use for licences to acquire American know-how for roughly 80 per cent of their defence-related commerce with the US.

One UK official described the reforms as a “big deal” as a result of it was “about the UK, Australia and US being as competitive as they can with China”.

Learn the total story from our US-China correspondent Demetri Sevastopulo.

Right here’s what I’m holding tabs on right this moment and over the weekend:

• Financial knowledge: Hong Kong, Taiwan and Malaysia publish second-quarter development figures. Hong Kong additionally stories July jobs knowledge, whereas South Korea releases revised commerce knowledge for July.

• Thailand: Parliament holds a vote on the successor to former prime minister Srettha Thavisin, who was dismissed by the constitutional court docket this week.

• Indonesia: The nation on Saturday holds its first independence day celebration in Nusantara, the brand new capital being carved out of the jungle. However the occasion has been scaled again amid setbacks to the $30bn venture.

• Singapore: Prime Minister Lawrence Wong on Sunday delivers the annual Nationwide Day Rally speech.

• Vietnam-China ties: Vietnamese chief To Lam begins a go to to China on Sunday. It’s his first international journey since turning into normal secretary of Vietnam’s ruling Communist celebration earlier this month following the dying of longtime ruler Nguyen Phu Trong. (Reuters)

How effectively did you retain up with the information this week? Take our quiz.

5 extra high tales

1. Unique: SoftBank held talks with Intel about producing a synthetic intelligence chip to compete with Nvidia however the plan foundered after the US chipmaker struggled to satisfy the Japanese group’s necessities. SoftBank is now specializing in discussions with Taiwan Semiconductor Manufacturing Co, folks acquainted with the matter stated.

2. Prime Minister Narendra Modi has condemned violence in opposition to girls and vowed to mete out “tough punishment” to perpetrators of sexual crimes after the rape and killing of a junior medic sparked protests throughout the nation. In his Independence Day remarks, Modi additionally urged neighbouring Bangladesh to make sure the protection of minority Hindus after protesters overthrew the federal government of his ally Sheikh Hasina final week.

3. China’s industrial manufacturing grew on the slowest charge in 4 months in July. The brand new knowledge provides to indicators of a weak begin to the third quarter as a deep property slowdown weighed on the world’s second-largest economic system.

4. Spy chiefs from the US and Israel yesterday started talks within the Qatari capital, Doha, geared toward securing the discharge of Israeli hostages and ending the Gaza warfare. The discussions have been given contemporary urgency by the looming risk that Iran and its regional proxy forces will retaliate in opposition to Israel for the back-to-back assassinations final month of two militant leaders.

5. Wall Avenue rallied as robust retail gross sales knowledge and strong outcomes from Walmart elevated confidence that the US economic system will keep away from a recession and obtain a “soft landing”. The S&P 500 closed 1.6 per cent larger — sufficient to wipe out all of the benchmark index’s losses for August.

Information in-depth

International trend manufacturers are shifting orders away from Bangladesh due to the turmoil that surrounded the autumn of authoritarian Prime Minister Sheikh Hasina, in response to producers on the planet’s second-largest garment exporter. Factories have been shut for days after Sheikh Hasina’s authorities brutally cracked down on scholar protesters, whereas a number of factories owned by regime loyalists have been torched in retaliatory assaults.

We’re additionally studying . . . 

• Visible investigation: European fishing vessels are taking over African flags, enabling them to exploit native fishing legal guidelines.

• Kishida’s successor: Japan’s subsequent chief must venture hope and confidence within the face of the nation’s challenges, the FT editorial board writes.

• Weight-loss capsules: Years earlier than Wegovy, Swiss drugmaker Roche turned down a possible $14bn-a-year “mega-blockbuster” weight problems therapy now being developed by rival Eli Lilly.

Chart of the day

Elon Musk’s following on X has almost doubled since his buy of the social media platform lower than two years in the past, handing the billionaire a public megaphone to amplify his more and more incendiary views.

Take a break from the information

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Further contributions from Harvey Nriapia and Tee Zhuo