FirstFT: European carmakers backed to beat low-cost Chinese language EVs

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Good morning. On a go to to Beijing, France’s finance minister Bruno Le Maire has stated new French automotive subsidies are “paving the way in which” for Europe’s automotive trade to face up to the specter of an inflow of cheaper Chinese language electrical automobile imports.

Beneath a package deal of measures outlined in Could to help inexperienced industries, the French authorities will solely pay subsidies for brand new electrical autos based mostly on the emissions of their producers. That may hit producers from China, the place the trade depends on electrical energy largely powered by coal.

European producers are alarmed by Chinese language advances in EVs, with the nation taking the lead in battery manufacturing and its carmakers outselling western rivals in China’s home market. 

However Le Maire stated he was “not involved” concerning the risk to Europe’s carmakers from Chinese language electrical automobile imports.

“I believe with our new legislative choices, we pave the way in which in Europe for a much less naive method, bearing in mind the extent of emissions of the trade,” he stated. Learn the total story.

• Associated: The top of Europe’s largest automotive components provider Bosch has urged European governments to spend extra time enhancing the competitiveness of the EU as a substitute of specializing in the dangers firms face doing enterprise in China.

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

• Financial information: The EU publishes second-quarter development and month-to-month inflation figures. The eurozone is predicted to return to slight development within the second quarter, whereas inflation amongst its members is about to maintain falling in July.

• Outcomes: First-quarter earnings studies are due from Mizuho Monetary Group, Panasonic and Sumitomo Mitsui Monetary Group.

5 extra high tales

1. Two skyscrapers in Moscow’s premier enterprise district have been broken by drone strikes that sparked a fireball and left charred holes within the facet of the buildings. Sunday’s assault marks at the very least the fifth time that unmanned aerial autos have reached Moscow since Could. There was no fast declare of accountability from Ukraine.

2. Blackstone’s $68bn flagship property fund has gone from being one of many world’s greatest consumers of property to a big vendor, because it raises liquidity to satisfy redemptions and make investments billions in information centres to feed the factitious intelligence increase. Listed here are extra particulars from an FT evaluation of Blackstone’s securities filings.

3. French mining group Eramet has blamed a scarcity of EU funding for essential minerals for having pushed it right into a deepening partnership with China’s Tsingshan, the world’s largest chrome steel producer, which was behind the nickel market blow-up final yr. Right here’s what the corporate informed the FT about its partnership with the controversial Chinese language group.

4. A fundraising automobile for Donald Trump’s presidential marketing campaign spent greater than $40mn on authorized prices within the first half of the yr, marketing campaign finance filings are anticipated to point out on Monday. Information of the hefty authorized invoice comes as Trump’s workforce braces for extra legal prices in opposition to the previous president.

5. McKinsey chief Bob Sternfels has signalled he plans to run for a second time period as managing associate as he rebuilds the consultancy after years of reputational crises and because the agency battles mounting financial and geopolitical challenges. Huge US consultancies have come beneath enormous stress in China amid Beijing’s nationwide safety raids, however Sternfels stated he remained dedicated to working within the nation.

The Huge Learn

The deliberate NeuConnect electrical energy cable will allow the UK and Germany to commerce electrical energy immediately for the primary time, serving to the 2 G7 economies section out fossil fuels. However issues buying cables have delayed the £2.4bn challenge — and others prefer it — because the demand for the infrastructure outstrips provide. The shortages increase the query: will there be sufficient cables for the clear vitality transition?

We’re additionally studying . . . 

• Battle in Ukraine: A brand new mobilisation legislation reveals that Vladimir Putin is getting ready for an even greater conflict in Ukraine.

• Working from house: From return to workplace calls for to productiveness ranges, a number of what we predict we learn about distant work is improper, writes Pilita Clark.

• AI: The truth that giants comparable to Microsoft and Alphabet are dominating one other wave of tech innovation factors to deep dysfunction within the system, writes Ruchir Sharma.

Chart of the day

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Many nations rely upon India, the world’s largest rice exporter, for shipments of the staple. However amid rising meals costs in India, prime minister Narendra Modi’s authorities just lately banned exports of a number of rice varieties, sending shocks across the globe.

Take a break from the information

Final week, a revered former US intelligence official informed a congressional committee that, in impact, aliens exist. On this charming essay, the FT’s Henry Mance appears to be like on the proof and asks: is it now OK to suppose severely about aliens?