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Good morning.
As we head into the third day of the UK Conservative occasion’s annual convention, Prime Minister Rishi Sunak has been dealing with a storm of protest over plans to axe the northern leg of the HS2 high-speed rail line.
Downing Road insisted “no choice has been taken” on HS2 however senior Conservatives mentioned Sunak had determined to save lots of billions of kilos by constructing solely the southern leg between London and Birmingham.
Aides to Jeremy Hunt, the chancellor, didn’t deny that he had already authorised the novel scaling again of the HS2 challenge. “A call can be introduced sooner or later,” mentioned one.
Andy Road, the Tory mayor of the West Midlands, accused the prime minister of “cancelling the long run” and undermining investor confidence in Britain by aborting the nation’s most high-profile infrastructure challenge.
“In case you inform the worldwide funding neighborhood you’ll do one thing you bloody effectively have to stay to your phrase,” he mentioned at a gathering on the perimeter of the Conservative convention. Right here’s what different Tories are saying in a debate that has dominated the convention.
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Go deeper: In an indication of a rising rift between Sunak and his occasion’s proper wing, former premier Liz Truss has returned to steer the push for extra tax cuts on the convention in Manchester.
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Opinion: Politicians ought to agree with Sunak on multiculturalism and mirror on Britain’s relative success in integrating minorities, however they need to achieve this with out illusions, writes Stephen Bush.
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UK financial system: Retail inflation declined to the bottom degree in a 12 months final month as meals worth development eased sharply to a single-digit fee, business knowledge confirmed.
With the Tory occasion persevering with and Labour holding its personal convention from Sunday, Britain has a busy month in politics. For up-to-date evaluation, join our Inside Politics e-newsletter or take heed to our weekly podcast, Political Repair.
What do you consider Sunak’s probabilities of unifying his occasion earlier than subsequent 12 months’s elections? Let me know at firstft@ft.com — Tee
And right here’s what else I’m protecting tabs on immediately:
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Sam Bankman-Fried: Jury choice at a Manhattan federal courtroom kicks off the trial of the FTX founder, who faces prison fees that carry a mixed most sentence of greater than a century in jail. Listed below are among the central figures in crypto’s most high-profile trial.
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German Unity Day: Markets are closed in Germany, which marks the reunification of East and West Germany in 1990.
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Nobel Prize: Winners are being introduced over the week with Katalin Karikó and Drew Weissman receiving the award in drugs yesterday for his or her work which led to Covid-19 vaccines. The award for physics can be introduced immediately.
5 extra high tales
1. Unique: The European Fee is making ready to launch about €13bn in EU funds to Hungary, frozen since final December due to human rights and rule of regulation considerations. The transfer may safe Budapest’s assist for a rise to the bloc’s finances as Brussels seeks to make sure persevering with monetary assist to Ukraine. Learn the total story.
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Associated: The weekend deal to avert a US authorities shutdown additionally stripped out any assist for Kyiv, revealing simply how unpredictable Washington’s backing might be.
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The FT View: In what appears set to be a multiyear battle of attrition, the west should discover methods to hurry up assist for Ukraine and to lock it in for the long run, writes the Monetary Instances’ editorial board.
2. Unique: India has demanded Canada withdraw roughly 40 diplomats by October 10, in response to individuals conversant in the matter, in an escalation of the disaster that erupted when Prime Minister Justin Trudeau mentioned New Delhi might have been linked to the homicide of a Canadian Sikh. Demetri Sevastopulo has extra particulars from Ottawa.
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Opinion: Regardless of their courtship of New Delhi, the west can’t flip a blind eye if Canada offers convincing proof of India’s position within the killing, writes Gideon Rachman.
3. The IMF’s chief has backed reforms that might finally give Beijing extra voting energy throughout the fund and warned of “devastation” if her establishment stays with out enough monetary sources to help struggling nations. Kristalina Georgieva informed the Monetary Instances that the IMF ought to higher characterize modifications within the world financial system, implicitly referring to China. Right here’s how illustration within the fund may change.
4. Microsoft’s CEO has referred to as the concept that customers have alternative in web search “bogus” due to contracts that make Google the default search engine on cell gadgets. At an antitrust trial pitting Google towards the US Division of Justice, Satya Nadella additionally testified that he had explored whether or not Apple would swap to an settlement with Microsoft’s search engine Bing. Right here’s extra from Nadella’s testimony.
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Extra Large Tech: X, previously generally known as Twitter, has signed a first-of-its-kind take care of celeb Paris Hilton centred round dwell buying and different unique content material.
5. US Treasury yields climbed to a 16-year excessive yesterday after higher than anticipated manufacturing knowledge bolstered traders’ perception that the US financial system is in fine condition. Bond costs, which transfer inversely to yields, dropped sharply world wide in current weeks as traders anticipated central banks to carry rates of interest increased for longer.
The Large Learn
ESG rankings affect, and in some instances dictate, which shares and bonds make it into the $2.8tn of funding funds which might be marketed as sustainable, lending legitimacy to corporations and traders that declare to be inexperienced. But that energy is now coming below intense formal scrutiny. Regulators and politicians world wide are asking questions on how the rankings are derived — and whose pursuits they actually serve.
We’re additionally studying . . .
Chart of the day
Renewable vitality shares have bought off sharply in current months, considerably underperforming fossil gasoline corporations, as increased rates of interest take a toll on the sector. The S&P International Clear Vitality Index, made up of 100 of the most important such corporations, is ready for its worst annual efficiency since 2013.
Take a break from the information
Adventurous tailoring, barely-there clothes and a designer debut — at Paris Style Week, manufacturers together with Alexander McQueen, Balenciaga and Valentino performed to their strengths, writes FT trend editor Lauren Indvik.
Extra contributions from Benjamin Wilhelm and Gordon Smith
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