FirstFT: Putin vows to retaliate for Moscow drone attack

Good morning. Vladimir Putin has vowed to retaliate against what he claimed were Ukrainian drone strikes on Moscow, which exposed Russia’s growing vulnerability to blowback from his invasion.

Russia’s president accused Ukraine of “terrorist activity” and “provoking us to respond with tit-for-tat measures” after strikes hit residential areas in the Russian capital yesterday, which he said were aimed at “scaring Russian citizens and hitting residential buildings.”

Although Putin did not say how Moscow would respond and claimed Russia did not attack civilian targets in Ukraine, he made his first reference for several months to a possible nuclear escalation of the war, accusing Ukraine of trying to cause an accident at a nuclear power plant in occupied Zaporizhzhia or use a dirty bomb.

Here’s what else I’m keeping tabs on today:

• GDP reports: The latest growth figures for India and Turkey are due today. The latter will indicate the scale of the economic challenge Turkey’s re-elected president Recep Tayyip Erdoğan will face in his next term.

• UK trade deals: Britain’s free trade deals with Australia and New Zealand come in force today. (Reuters)

• Japan factory output: Monthly industrial production figures will be published today.

Five more top stories

1. A top Chinese scientist said China investigated whether Covid-19 might have originated in a Wuhan laboratory — the first admission from a senior official that Beijing took the so-called lab leak theory seriously after years of heated denials. The former head of the Chinese Center for Disease Control and Prevention made the remarks during a BBC Radio 4 podcast.

2. Western countries are increasing pressure on Turkey to admit Sweden to Nato, as Stockholm makes a final push to overcome Ankara’s opposition to its membership. The impasse has driven a rift between Turkey and its Nato allies.

• Opinion: In the FT, Sweden’s prime minister writes that a new anti-terror law entering force on Thursday delivers “on the last part” of an agreement to secure Ankara’s support for entry into the military alliance.

3. China has called for “stable and constructive” ties with the US in a meeting with Elon Musk that highlighted the complex relationship between Beijing and the billionaire boss of Tesla, Twitter and SpaceX. Read the full story on Musk’s first visit to Beijing since the outbreak of the coronavirus pandemic.

• More on US-China relations: In the latest sign of tensions between the two countries, Beijing has declined the Pentagon’s request for a meeting at a security forum in Singapore this week.

4. Nvidia has become the first chipmaker to hit a $1tn valuation, leading a surge of enthusiasm across Wall Street for companies seen to benefit from the latest developments in artificial intelligence. Its high-water mark valuation puts it among an elite group of US stocks including Apple, Microsoft, Amazon and Google’s parent Alphabet.

5. The head of Goldman Sachs’ private equity business in Asia says she has stopped trying to raise money in the US because of geopolitical tensions between Washington and Beijing. Read more from her remarks at a private equity conference in Hong Kong yesterday.

The Big Read

Centerview has an envied reputation, earning staggering fees advising on some of Wall Street’s largest transactions despite a modest headcount and largely avoiding the internal drama that has paralysed other banks — until recently. Now, a bitter lawsuit with a former partner is bringing that harmonious culture — and the firm’s future — into question.

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A self-made Chinese billionaire with a fascination for the science of metals is posing a fundamental challenge to a traditional motor industry. Bai Houshan dominates a key part of the global market for a vital component of EV batteries. Here’s what the story of his success teaches us about challenging China’s ascendancy in cleantech.

Take a break from the news

. . . and check out six of Hong Kong’s best rooftop bars. The FT’s Orla Ryan, a relative newcomer to the city, shares with readers where to head for a cocktail for views that are guaranteed to give you a lift. At some, you feel closer to the sky than the ground below.

Additional contributions by David Hindley and Emily Goldberg