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Good morning and welcome to FirstFT Asia. In today’s newsletter:
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Tehran’s message for Israel in negotiations
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Trump’s opening remarks at G7 summit
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Millennium in talks to sell minority stake
We start in the Middle East, with the latest updates on the conflict between Israel and Iran.
The latest: Israeli missiles hit the headquarters of Iran’s state television during a live broadcast on Monday. Footage shows the programme’s host leaving the studio as it filled with smoke. “Four bombs” struck the building and efforts are under way to extinguish the fire, according to a local TV reporter. Earlier in the day, the IDF had called on civilians to leave the area where the TV studio is located.
What could come next: Tehran’s message in discussions to end the war and resume nuclear programme talks is “very clear” — that it would not negotiate while under attack. “If the Israelis stop, they will stop, that’s the messaging we are getting,” a diplomat said. US President Donald Trump has said he would prefer to reach an agreement to resolve the nuclear stand-off, but has also threatened military action if diplomacy failed.
Economic shock: The Federal Reserve and Bank of England will meet in the coming days as Israel’s attack on Iran adds to a series of geopolitical shocks. The tensions will test their appetite for rate cuts, but central bankers are wary of appearing too tolerant of overshooting their inflation targets, economists say.
We’ll bring you real-time updates on the war and its impact at our live blog. Here’s more on the situation:
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Iran’s existential test: Forty years after its war with Iraq, the stakes for the Islamic republic are existential in Ayatollah Ali Khamenei’s “most significant moment”.
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Opinion: If Iran is losing a conventional conflict, there is a danger that it will resort to unconventional means of retaliation, writes Gideon Rachman.
Here’s what else I’m keeping tabs on today:
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G7 summit: More than a dozen leaders will conclude talks in Canada under the shadow of a rapidly escalating Israel-Iran conflict.
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Economic data: Japan makes an interest rate decision as the country’s inflation climbed last month to its fastest rate in more than two years.
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IEA: The International Energy Agency will issue its oil market report.
Five more top stories
1. Trump said it was a “big mistake” to exclude Russia and “not a bad idea” to include China in G7 summits. The US president’s opening remarks in Canada were delivered next to Mark Carney, marking an awkward start to this year’s summit. While China and Russia are part of the G20, a wider group that includes the world’s largest economies, Trump has long said he would like to see the G7 return to a G8 format.
2. Exclusive: One of the world’s largest hedge funds is in talks to sell a minority stake to external investors at a $14bn valuation. Millennium Management, which has more than $75bn in assets, will have a formal valuation for the first time, which would secure it one of the top valuations of any hedge fund manager, according to people familiar with the situation.
3. China’s industrial output growth slowed in May but consumer spending picked up, according to official data, highlighting uncertainty for the world’s second-largest economy as it navigates a trade war with the US. The onset of a full-blown trade war with the US has added to pressures on China’s economy.
4. Exclusive: JPMorgan’s European chief plans to relocate from London to New York, while keeping his role running the bank’s Europe, Middle East and Africa business. The move by Filippo Gori, who is also the lender’s co-head of global banking, is the latest in a string of examples of senior bankers overseeing UK-based operations from the US.
5. The man accused of assassinating a US lawmaker and her husband has been charged with murder. The suspect allegedly travelled to the homes of at least four public officials on Saturday, in a case federal officials are describing as the “stuff of nightmares”.
Today’s big read
The listing of Brazil’s JBS on the New York Stock Exchange on Friday caps one of the most dramatic business comebacks in recent history. Almost eight years ago, Wesley and Joesley Batista were in jail, engulfed in a corruption scandal that nearly toppled a president and stained the name of their global meat empire. The FT spoke with about a dozen people who have worked for, or know, the billionaire beef barons. Yet questions remain about the divisive figures.
We’re also reading . . .
Chart of the day
Abu Dhabi’s national oil company is offering to take over Santos, leading a consortium to bid for one of Australia’s largest energy companies. Santos said its board would recommend the offer, subject to terms being agreed. If the deal closes, the $22bn deal would be the largest takeover of an Australian company, based on the cash paid and total deal size including debt.
Take a break from the news
Are you tired of seeing the sun peak through your conference room blinds? Caroline Binham writes that we can pick up the pace of meetings by taking them outside. Aside from a better scenery, leaders like the late Steve Jobs were staunch advocates of the walking meeting. Is it the time to try moving from al desko to alfresco?
