FirstFT: US crackdown on sanctions busters

Good morning, and happy Friday.

The US has launched a new crackdown on countries and individuals helping the Kremlin evade western sanctions. Meanwhile, Republicans are increasing their attacks on Democrats for dismissing the Wuhan lab leak theory.

And scroll down to chart of the day to find out why US borrowing costs have reached their highest level since before the 2007 global financial crisis.

Here’s what I’m keeping tabs on today and over the weekend:

• Scholz meets Biden: The German chancellor makes his first state visit to the White House, with Ukraine on the agenda.

• Republicans meet: The annual Conservative Political Action Conference resumes today with speakers including ex-US ambassador to the UN Nikki Haley and Georgia representative Marjorie Taylor Greene. Former president Donald Trump and Brazil’s ex-president Jair Bolsonaro close the conference tomorrow.

• Economic data: The Institute for Supply Management will release its monthly services purchasing managers’ index, which tracks the vast services sector.

• Chinese politics: China’s rubber-stamp parliament convenes on Sunday. Here’s a preview of what to expect.

Thanks for all the feedback so far on FirstFT’s new look. Keep it coming at [email protected]. Have a great weekend.

Today’s top news

1. The US has renewed efforts to crack down on sanctions dodging amid growing concern that Russia is fuelling the war in Ukraine by funnelling imports through countries such as the United Arab Emirates and Turkey.

2. Republicans step up attacks on Democrats and the White House over the origins of the Covid-19 pandemic. Republicans, who championed the theory that the virus escaped from a Chinese laboratory, claimed recent comments from US officials vindicated their views. Read why it is a debate that is likely to grow louder ahead of the 2024 presidential election.

3. Adani group shares jumped after a US investment firm bought $1.9bn of stock in four of its companies. The investment by New York-based GQG Partners gives a boost to infrastructure tycoon Gautam Adani after his conglomerate was hit by an attack from short seller Hindenburg Research five weeks ago.

4. Koch Industries has appointed a co-CEO from outside the family, with Dave Robertson joining billionaire Charles Koch to lead America’s second-largest private company. Koch will continue as chair, a role he has held since 1967. Learn more about the man with whom Koch is sharing power.

5. Brazil’s economy stagnated in the final quarter of 2022. Gross domestic product contracted by 0.2 per cent in the final three months of the year from the previous quarter, when it expanded 0.3 per cent, according to official data released yesterday.

How well did you keep up with the news this week? Take our quiz.

The Weekend Essay

Scientists warn we are not just facing a mass extinction event, but that one is already under way. The anxieties surrounding the fragility of ecosystems, however, are as old as time. What can we learn about tackling climate shocks from studying thousands of years of humanity’s response to natural disasters?

We’re also reading and watching . . . 

Chart of the day

An avalanche of hot inflation data over the past month has lifted US borrowing costs to levels not seen since before the 2007 global financial crisis. Recent moves have shocked observers and fuelled a debate about how high interest rates will have to go to cool inflation. Read the latest views of investors and economists.

Take a break from the news

In Bali, plastic bags are getting a second life as homeware. Plastic flip-flops have been transformed into art, and recycled bottle caps have been made into a chair as a wave of designers, artists and environmental advocates turn the island’s copious rubbish into upcycled treasures.

Additional contributions by Tee Zhuo and Emily Goldberg