FirstFT: Yellen Warns US-China Detachment Would Be ‘Disastrous’

Good day. US Treasury Secretary Janet Yellen warned yesterday that any effort to disengage from China would be “disastrous” and “destabilizing for the rest of the world.”

In a major speech, Yellen said Washington’s national security measures targeting Beijing were not designed to “stifle” the Chinese economy and called for a “constructive and just” economic relationship between the two nations.

“America will assert itself when our vital interests are at stake,” said the Treasury secretary. “But we are not looking to ‘decouple’ our economy from China’s.”

While Yellen called for a “healthy economic relationship” and cooperation on macroeconomics and climate change, she said the US would continue to work with allies to resist Beijing’s “unfair” economic policies. Furthermore, she noted that the United States was preparing more measures that would likely anger Beijing. Read more of Yellen’s comments.

This is what else is happening today:

• UK Foreign Secretary Tour: James Cleverly’s four-day tour tour focuses on promoting a “free and open Indo-Pacific.” Cleverly will visit New Zealand today.

• Profits: Results from China XD Electric, ZTE Corp, SAP SE and Woodside Energy are expected today.

• Eid: The Muslim holiday marks the end of Ramadan. Financial markets are closed in several Middle Eastern countries, including Saudi Arabia, Egypt and Jordan.

Five more main stories

1. The Russian Wagner paramilitary group failed to ask China for arms supplies earlier this year., according to a leaked US intelligence report. Wagner representatives “sought ammunition and equipment” from China in “early 2023,” according to the previously unreported document – a request that indicated the group had some confidence that Beijing would be willing to arm Moscow.

2. Regional US banks have largely halted the massive outflow of deposits that threatened its stability after the collapse of Silicon Valley Bank, but its profit margins are shrinking unexpectedly fast. Here’s what we learned from the midsize banks that reported earnings this week.

3. SpaceX’s giant Starship rocket exploded after its first launch yesterday in a setback for Elon Musk’s company and its effort to build a spacecraft capable of flying to Mars. The nearly 400-foot-tall rocket, the most powerful ever launched, reached an altitude of nearly 25 miles before falling back to earth.

4. Credit Suisse investors in Singapore are in talks to sue the Swiss government for his decision to write down $17 billion of Credit Suisse bonds on the grounds that it violated a free trade agreement. Possible lawsuit in Singapore would open a new legal front.

5. Google has plans to introduce generative artificial intelligence into its advertising business. as big tech groups rush to incorporate innovative technology into their products. Read the full story.

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the great read

With India poised to overtake China as the world’s most populous country, its public digital infrastructure has become a central part of Prime Minister Narendra Modi’s efforts to present India as a rising economic superpower and alternative investment destination. for your neighbor. But the “India Stack”, its novel approach to integrating public and private digital services, has raised concerns about privacy and data protection.

We are also reading and listening. . .

chart of the day

If data is the oil of the 21st century, then Michael Bloomberg is the John D Rockefeller of today. Bloomberg the company has made Bloomberg the man filthy rich. Looking at Bloomberg’s $12 billion annual revenue, the vast majority of profits come from “the terminal,” its clunky but powerful data and analytics portal. But as the financial industry continues to transform, there is a pressing question to consider: what comes next?

Take a break from the news

The invisible cake sounds like something you read about garnishing the tables at Hogwarts, but it’s a real thing. The craze may have started in Japan, or it could be French. As with so many internet phenomena, it’s hard to track. try this apple and poppy seed invisible cakes recipe.

Additional contributions by Gordon Smith and Tee Zhuo