FirstFT: Xi Jinping declines invitation to go to Brussels for anniversary summit

Good morning. On right now’s agenda:

China’s President Xi Jinping has declined an preliminary invitation to go to Brussels for a summit to mark the fiftieth anniversary of ties.

Beijing informed EU officers that Premier Li Qiang, China’s second-ranked chief, would meet the presidents of the European Council and Fee in Brussels for the summit fairly than Xi, folks acquainted with the matter have mentioned. 

The internet hosting of EU-China summits historically alternates between Brussels and Beijing. The EU believes the significance of this assembly — to commemorate half a century of diplomatic relations — implies that China’s president ought to attend, the folks have mentioned. 

Each side have mentioned talks will proceed, however the preliminary snub has confirmed the view amongst many in Brussels that China won’t add concrete motion to its heat phrases about the necessity to co-operate within the face of Donald Trump’s assault on the worldwide world order.

Right here’s how this transfer might have an effect on relations between China and the EU.

• World CEOs assembly: Xi is in search of to carry a gathering with scores of chief executives together with Citadel’s Ken Griffin and HSBC’s new CEO Georges Elhedery. The listing of invitees remains to be being negotiated, folks acquainted with the matter have mentioned, however about 72 international chief executives are on an preliminary listing.

Right here’s what else we’re maintaining tabs on right now:

• Financial knowledge: S&P World Manufacturing PMI is due for international locations throughout the area together with China, India and Japan.

• World financial system: The OECD publishes its Interim Financial Outlook Report.

5 extra prime tales

1. The US launched a wave of air strikes in opposition to Houthi rebels in Yemen. The strikes on Saturday — when no less than 9 had been killed, the Houthi-run well being ministry has mentioned — had been the most vital army actions taken by Trump since he returned to the White Home. The US president additionally warned Iran to halt its help for the militant group “immediately,” prompting an indignant response from Tehran.

2. China’s greatest maker of the laser sensors for self-driving automobiles is planning its first abroad plant. Talking to the Monetary Instances, Hesai’s chief monetary officer mentioned the Shanghai-based firm is seeking to construct manufacturing strains overseas to “avoid risks related to geopolitics and tariffs”. Hesai drew international consideration final 12 months after the US defence division included it on a listing of “Chinese military companies”.

3. Greater than 200 of America’s largest company teams have eliminated mentions of DEI. Of the highest 400 firms within the S&P 500 index, 90 per cent that filed a report since Trump’s election have reduce no less than some references, in keeping with knowledge analysed by the FT.

• US customers: Whereas many retailers reported stable gross sales on the finish of final 12 months, they warned of slower progress sooner or later. To date, knowledge suggests consumers are reducing their spending.

4. A surge in separatist assaults within the Pakistani province of Balochistan — together with a hostage disaster final week that concerned a whole bunch of practice passengers — has underscored the boundaries of huge investments and financial improvement within the resource-rich province, analysts warned.

5. Practically half of South Korean preschoolers now attend “cram” faculties. Personal schooling spending is being pushed to report ranges as the price of having youngsters in one of many world’s fastest-ageing international locations will increase.

The Huge Learn

Donald Trump’s policymaking — from his unpredictable commerce insurance policies to federal authorities cuts — is elevating uncertainty and sapping confidence from buyers. It’s a far cry from the prevailing temper amongst companies earlier this 12 months. With rising US recession warnings, has the US financial system misplaced its aura of invincibility?

We’re additionally studying . . . 

• House rescue: A pair of US astronauts are set to go away house after a brand new crew arrived on the Worldwide House Station on Sunday. It’s anticipated to finish their nine-month mission that was speculated to final eight days.

• US ties: Trump’s transformation of the US has prompted a radical reconsideration of defence coverage that’s significantly difficult for Japan and South Korea, writes our editorial board.

• From Covid to right now: With the five-year anniversary of the primary lockdown approaching, inflation and market volatility are now information of monetary life.

Chart of the day

“Vanilla” buybacks in Japan have hit successive information lately in an effort to maintain buyers comfortable. However this 12 months, Japanese firms are pitching reforms. A string of conglomerates like Toyota and Seven & i Holdings sacked chief executives and bought belongings in an effort to hunt extra tangible modifications.

Take a break from the information . . . 

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