FirstFT: Truss to shake up the Metropolis

Good morning. Liz Truss, the frontrunner to be the following UK prime minister, has the Metropolis of London’s prime regulators in her sights, planning a direct overview of their roles and duties if she wins, in accordance with marketing campaign insiders.

The overseas secretary, who’s 32 factors forward of former chancellor Rishi Sunak within the newest survey of Conservative celebration members, is contemplating merging the Monetary Conduct Authority, the Prudential Regulation Authority and the Funds Methods Regulator.

One well-placed monetary companies government mentioned Truss was privately vital of the FCA, which confronted its first industrial motion this yr beneath new chief government Nikhil Rathi, and wished to overtake monetary regulation as a part of “a wider conflict on technocrats” and civil servants.

The plans would signify the largest shake-up of the UK’s vital monetary regulatory authorities in additional than a decade. Truss’s management marketing campaign declined to touch upon the proposals, however one marketing campaign insider confirmed that she would overview the organisations.

“No selections have been made on the way forward for regulators. Liz will have a look at their position as a part of a overview. She’s clear that there has not been sufficient concentrate on financial progress” — a marketing campaign official

5 extra tales within the information

1. Fed minutes sign restrictive charges to remain Federal Reserve officers mentioned the necessity to hold rates of interest at ranges that prohibit the US economic system “for a while” to include the very best inflation in roughly 40 years, in accordance with minutes of their July assembly, when US central bankers carried out a second consecutive 0.75 proportion level fee rise.

2. Quant funds ramp up bets on US shares Quant funds, which try and trip the momentum of market tendencies, are rising bets on US shares, fuelling a rally that has added $7tn in worth since June whilst information factors to a slowdown on the planet’s largest economic system.

3. UK inflation fee hits 40-year excessive of 10.1% Shopper value inflation within the UK, pushed by increased meals costs, rose from 9.4 per cent in June to 10.1 per cent in July, its highest degree since February 1982 and the nation’s first double-digit annual improve in additional than 4 many years.

4. PwC’s UK companions’ pay tops £1mn for first time The Huge 4 accounting agency’s companions had been paid a median of greater than £1mn for the primary time final yr, buoyed by a bounce of one-third in consulting revenues and the disposal of a part of its enterprise. However PwC warned that inflation and rising wages would in all probability scale back accomplice pay this yr.

5. Japan’s alcohol recommendation: please drink extra The unorthodox government-backed “Sake Viva!” contest calls on folks aged 20 to 39 to assist revitalise an trade hit by demographic adjustments, the pandemic and long-term diminishing consumption that has lower into tax income.

How can Japan tempt youthful residents to drink extra alcohol? Share your solutions with me at firstft@ft.com. Thanks for studying FirstFT Europe/Africa — Jennifer

The day forward

UK transport strikes Greater than 50,000 members of the Rail Maritime and Transport, Unite and the Transport Salaried Staffs Affiliation unions will stroll out throughout the nation over pay, job losses and dealing practices.

Serbia and Kosovo meet Serbia’s president Aleksandar Vučić and Albin Kurti, Kosovo’s prime minister, will maintain joint discussions in Brussels with Josep Borrell, the EU’s overseas coverage chief, over a street map to resolve tensions beneath the specter of battle.

• Opinion: The EU and Nato have essential roles to play in stopping Russia from exploiting regional rivalries, writes Misha Glenny, rector of the Institute for Human Sciences in Vienna.

Financial information Egypt’s central financial institution holds a financial coverage assembly after its governor Tarek Amer resigned; his alternative has not been named. The EU and Canada publish July inflation figures, whereas US preliminary jobless claims are forecast to have risen barely final week. (FT, WSJ)

UK examination outcomes day College students in England, Wales and Northern Eire will obtain their A-level and vocational examination outcomes, that are anticipated to be down on final yr however up on pre-pandemic ranges. Examination physique AQA has mentioned papers could be extra generously graded to mirror the return to regular check situations.

Company earnings Electrical retailer AO World experiences full-year outcomes because it makes an attempt to shift its enterprise mannequin away from gross sales progress to constructing and sustaining margins, with an financial slowdown crimping gross sales demand. Different firms reporting embody Estée Lauder, Hella and Kohl’s.

What else we’re studying

The village marriage ceremony caught within the Taliban’s battle for Kabul In August 2021, folks in Dost Kol — a hamlet within the hills an hour west of Kabul — ready to rejoice the marriage of Mohammad Ullah to a bride from a neighbouring village. However the subsequent 24 hours introduced tragedy.

Central financial institution independence is on the decline Within the US, UK and Turkey, politics are gaining sway over central banks, writes economics editor Chris Giles. Even so, if Liz Truss turns into UK prime minister, she has a possibility to enhance the nation’s financial coverage — and the Financial institution of England’s accountability.

France’s magnificent rusting large The coat of paint that the Eiffel Tower will obtain for the 2024 Olympics can hardly conceal that it’s rusting. Paris bureau chief Victor Mallet assesses the wear and tear and tear on the pre-eminent image of France — and explains why Parisians might be ready a decade for correct repairs.

Neighbourhood apps are nice however IRL is best On the peak of the pandemic, utilization of on-line discussion board Nextdoor, which connects folks by location, elevated 80 per cent globally. However solely on-line interactions absolutely miss one thing necessary, argues Cristina Criddle.

Beware patronising the marginalised How would you’re feeling in case you had been advised, by somebody who knew little or no about you, that due to your immutable bodily traits you have to have been the sufferer of oppression? Treating folks as victims deprives them of company, writes Jemima Kelly.

Meals & drink

Ravinder Bhogal presents a menu that could be a style of Sicily, from caponata to pasta with sardines and apricot ricotta cake, all borrowed from a christening she gatecrashed this summer season.