Good morning. This article is an on-site version of our FirstFT newsletter. Sign up to our Asia, Europe/Africa or Americas edition to get it sent straight to your inbox every weekday morning
We’re starting the week with our eye on defence, as EU and UK officials step up discussions on closer security co-operation in response to Russia’s war on Ukraine.
Those briefed on the talks said officials held informal but regular discussions aimed at improving co-ordination, including increasing European arms production. Separately, Brussels and London said in a joint communique that they would hold a dialogue on cyber security and counter-terrorism.
UK armed forces minister James Heappey attended the EU’s inaugural Schuman Security and Defence Forum last week and held “productive” bilateral meetings, the people said.
They added that the discussions were aimed at “incremental” progress rather than a formal agreement, with officials wary of potential political blowback from Eurosceptic members of the UK’s governing Conservative party.
The success of the Windsor framework, which was signed off by both sides on Friday, has helped remove Northern Ireland’s post-Brexit trading arrangements as a big obstacle to stepping up security collaboration, especially in the face of Vladimir Putin’s aggression.
The Russian leader has continued to ramp up tensions with the west. On Saturday, Putin announced plans to deploy tactical nuclear weapons in Belarus with storage units there to be completed by July 1. He likened the move to US nuclear deployments in Europe and said it did not violate international non-proliferation obligations.
In related news, Hungary’s parliament today will vote on Finland’s bid to join Nato after Turkey agreed this month to back the move. A successful vote would bring the military alliance one step closer to expanding its direct border with Russia.
Here’s what else I’m keeping tabs on today:
Bank of England: Andrew Bailey speaks at the London School of Economics this evening, a day before he faces a Treasury committee on Silicon Valley Bank.
Scottish leadership: Voting closes for the Scottish National party’s leadership contest, with the ruling party set to announce Scotland’s next first minister.
Germany: Ifo publishes its business climate index for this month.
What did you think of today’s FirstFT? Let us know at [email protected]. Thanks for reading.
Five more top stories
1. Intense protests rocked Israel yesterday night after its defence minister was sacked by Prime Minister Benjamin Netanyahu for calling for a halt to a contentious judicial overhaul, warning that it was a threat to national security.
2. Twitter has taken legal action after its source code was leaked on GitHub, a widely used open-source repository. The social media company said the leak included “proprietary source code for Twitter’s platform and internal tools”. Read the full story here.
3. More than $286bn has flooded into money market funds so far this month, with Goldman Sachs, JPMorgan Chase and Fidelity emerging as the biggest winners. The surge this month has helped push overall assets in money funds to a record $5.1tn. We have a breakdown of the inflows here.
4. European battery makers have welcomed the EU’s proposed response to US green subsidies but warned it must be followed with swift action or investment will drain across the Atlantic. Read more about why battery makers have struck a different tone from other European industrial groups.
5. One of Europe’s largest ammunition makers says its plant expansion is facing a roadblock because a new data centre for TikTok is using up all the spare electricity in the area. Read more about how “storage of cat videos” became a concern for Nammo’s growth.
The Big Read
Outwardly, Iran’s Islamic regime is projecting confidence that it has navigated the country’s recent tumult. But beneath the surface, the anger that inspired nationwide protests is still bubbling away. The question is whether the ideological hardliners in power will allow the changes that analysts believe are their best hope of staving off more unrest.
We’re also reading . . .
‘Swiss finish’: Once reflective of the high quality of financial safeguards in the country, the term has gained an unfortunate new meaning with Credit Suisse’s demise, writes Patrick Jenkins.
Wine and SVB: Silicon Valley Bank’s wine division has been a critical pillar to the sector, loaning out more than $4bn to wineries since 1990. After the bank’s collapse, its clients worry where they will get their funding.
Tech boom: Although conventional wisdom tells us otherwise, Rana Foroohar argues we are on the cusp of a new golden age for tech — just not one about consumers.
Chart of the day
While the jury is still out on the exact reason why mental health has declined among teenagers, some academics point to a growing body of research they say is hard to ignore: the proliferation of smartphones, high-speed internet and social media apps are rewiring children’s brains and driving an increase in eating disorders, depression and anxiety.
Take a break from the news
From bean-to-bar chocolate to Taiwanese casual dining, Gregory Marchand, chef-owner of Frenchie, shares with FT Globetrotter his favourite places to eat and drink in Sentier, a bustling pocket of Paris’s 2nd arrondissement.
Additional contributions by Annie Jonas
Recommended newsletters for you
Asset Management — Find out the inside story of the movers and shakers behind a multitrillion-dollar industry. Sign up here
The Week Ahead — Start every week with a preview of what’s on the agenda. Sign up here
Thank you for reading and remember you can add FirstFT to myFT. You can also elect to receive a FirstFT push notification every morning on the app. Send your recommendations and feedback to [email protected]
