FT News Briefing

Raghuram Rajan, a distinguished professor at the University of Chicago and former RBI governor, joins renowned economist Martin Wolf to analyze the current state of global democracy. They discuss India's recent election results and the importance of a robust opposition to counteract rising authoritarianism. Rajan emphasizes the need for accountability in governance and critiques the disconnect between government narratives and public concerns. The conversation also touches on India's economic aspirations and the dynamics affecting democracies worldwide.

Lucy Fisher, FT's Whitehall editor and host of Political Fix, dives into the intriguing parallels between UK and US politics. She discusses how Margaret Thatcher’s 1979 victory foreshadowed Reagan's rise and explores the implications of the looming UK general election on the US presidential race. The conversation highlights shifting voter attitudes, the emergence of right-wing alternatives, and concerns over declining political engagement in both countries. With political scandals shaping public sentiment, the upcoming elections could see surprising outcomes.

Chinese electric vehicle manufacturers are bracing for the EU's new tariffs, which aim to protect local markets from competitive threats. Meanwhile, Toyota finds itself in hot water amid a scandal that could shake investor confidence just before its shareholder meeting. The discussion also touches on global tensions in the automotive industry, including the U.S. import levies and concerns about safety and data compliance within major Japanese automakers. Keir Starmer unveils ambitious tax plans, stirring up the political landscape in the UK.

The Federal Reserve plans to hold interest rates steady but hints at just one cut by the end of 2024. Meanwhile, Terraform Labs faces a hefty $4.47 billion penalty from the SEC, signaling serious regulatory scrutiny. In a twist, tech companies are rallying against California's proposed AI safety bill, which could introduce a controversial 'kill switch' on AI models. With US inflation dipping to 3.3%, the market is buzzing over these pivotal economic shifts and the ongoing battle between innovation and regulation.

Central banks are racing to increase their US dollar reserves as interest rates soar, raising questions about the future of global currencies. Meanwhile, the EU plans hefty tariffs on Chinese electric vehicles, impacting international trade dynamics. The UK Tories are pledging significant tax cuts in an effort to revitalize their political standing. In Mexico, the new president-elect's proposed reforms lead to a sharp drop in the peso, highlighting the volatile relationship between political actions and market confidence.

Apple has joined forces with OpenAI to roll out innovative AI features, enhancing user experience on its devices. The company's late entry into the AI race raises questions about its competition with tech giants like Google and Microsoft. Meanwhile, private equity groups are gearing up to dominate U.S. accounting firms. In France, President Macron's shock announcement of snap parliamentary elections puts his leadership to the test as he navigates a challenging political landscape against rising far-right opposition.

Far-right parties are experiencing significant gains in the European Parliament, reflecting a shift in voter sentiment influenced by economic concerns. In Israel, opposition leader Benny Gantz has stepped down from the emergency government amidst political turmoil. Investors are increasingly turning away from sustainability-focused funds, leading to a staggering $40 billion withdrawal this year. Meanwhile, Iran is disqualifying moderates from the presidential race, raising concerns about the country's political landscape.

In a riveting discussion, Anne Applebaum, a Pulitzer Prize-winning journalist who has observed the political landscapes in the U.S. and Europe, joins Martin Wolf to dissect democracy's precarious state. They delve into Poland's recent elections as a beacon of hope against populism and analyze the far-reaching consequences if Donald Trump secures a second term. The conversation explores political bias, citizen engagement, and the fragile future of liberal democracy, underscoring the global implications of America's political shifts.

Silicon Valley's elite is making a surprising turn, rallying behind Donald Trump with multimillion-dollar fundraisers. The hosts dissect this political shift, revealing how key figures are moving away from Biden and the implications for free speech and regulations. There's a fascinating contrast between the tech giants' support for Trump and the sector's traditional liberal stance. The conversation even weaves in a lighthearted discussion about pandas, highlighting the complex relationship between politics and personal sentiment in the tech world.

The European Central Bank has made a significant move by cutting interest rates for the first time in five years, signaling a response to a sluggish economy. There's also exciting news as Ukraine prepares for EU membership talks. Meanwhile, optimism is rising for the London Stock Exchange, with notable initial public offerings on the horizon. The discussion paints a picture of cautious monetary adjustments amidst economic uncertainties and potential market recovery.