FirstFT: Erdoğan agrees to back Sweden’s Nato accession

FirstFT: Erdoğan agrees to back Sweden’s Nato accession
FirstFT: Erdoğan agrees to back Sweden’s Nato accession

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Good morning. Turkey’s president Recep Tayyip Erdoğan has agreed to support Sweden’s membership of Nato, the army alliance has stated on the eve of its annual leaders’ summit in Lithuania. The transfer paves the way in which for the Nordic nation to affix the US-led bloc after greater than a yr of opposition from Ankara.

Erdoğan’s choice to elevate his veto, after a last-ditch assembly with the leaders of Sweden and Nato on Monday night, got here after Turkey’s president linked his help for Stockholm’s accession to Turkey’s long-stalled EU bid.

The lifting of Erdoğan’s block opens the way in which for Turkey’s parliament to approve Sweden’s entry into the army alliance, a step seen as crucial to growing the defence of japanese Europe in response to Russia’s invasion of Ukraine.

Turkey’s president agreed to “ahead the accession protocol for Sweden [to join Nato] to the Grand Nationwide Meeting as quickly as attainable and work carefully with the meeting to make sure ratification,” Nato secretary-general Jens Stoltenberg stated after hours of negotiations with the leaders of Turkey and Sweden.

Stoltenberg described the choice as a “clear dedication” from Turkey’s president, however stated it was “not for me to enter the small print of the timelines of the totally different political establishments in Turkey”, when requested how quickly Sweden may grow to be a member of Nato.

  • Go deeper: The unity of Nato’s 31 members can be put to its biggest test for the reason that starting of the Ukraine warfare at this week’s summit, writes Gideon Rachman.

Right here’s what else I’m holding tabs on at present:

  • Financial knowledge: July unemployment figures are due within the UK, whereas Germany experiences the ultimate June client worth index and harmonised index of client costs, plus the ZEW financial sentiment survey.

  • Asean assembly: International ministers from south-east Asian international locations will meet in Jakarta, Indonesia to debate the disaster in Myanmar, tensions within the South China Sea and different regional points. (Related Press)

  • Warmth and flooding in China: Components of japanese and south-west China are preparing for torrential rain, whereas employers throughout a lot of the nation on Monday have been ordered to restrict outside work due to brutal warmth. (Related Press)

5 extra high tales

1. Russian president Vladimir Putin met Yevgeny Prigozhin and different Wagner commanders a couple of days after their aborted mutiny, the Kremlin has revealed. The revelation is an extra signal that Moscow is in no hurry to punish Prigozhin, who Putin had initially branded “a traitor”.

2. A high US banking regulator has introduced harder capital guidelines for a broader vary of lenders in an effort to shore up a monetary system rattled by the failure of a number of regional banks earlier this yr. Here are more details on the regulatory changes for larger lenders.

  • Extra US banks information: The most important US banks are this week set to report the biggest jump in loan losses for the reason that onset of the coronavirus pandemic, as rising rates of interest pile mounting stress on debtors throughout the financial system.

3. A rising variety of international locations are bringing their bodily gold reserves again house to keep away from Russian-style sanctions on their international belongings, whereas growing their purchases of the dear metallic as a hedge in opposition to excessive ranges of inflation. Read more on the global demand for gold.

4. The asset administration business faces dramatic consolidation over the following 4 years as one in six firms may disappear due to a mixture of market volatility, excessive rates of interest and stress on charges. Read more on the findings from PwC’s survey of 500 asset managers and institutional investors.

  • Extra asset administration information: Large cash managers in China have cut fees on thousands of mutual fund products, in a swift response to authorities stress to scale back charges throughout the nation’s fast-evolving monetary providers sector.

5. A Singapore hedge fund has filed a petition in Hong Kong to wind up defaulted developer Kaisa, marking one of many first instances coping with a Chinese language developer’s mainland debt following a property sector meltdown within the nation. Analysts say the case reflects creditors’ impatience with restructuring in China’s property sector.

The Large Learn

Volodymyr Zelenskyy, left, and Jens Stoltenberg © FT Montage/Reuters/Getty

As his battered troops proceed to combat off a relentless invasion and try and claw again occupied territory in Ukraine’s south and east, Volodymyr Zelenskyy will this Wednesday be in Lithuania’s capital, Vilnius, with one other strategic goal: to achieve a seat at Nato’s desk. However his bid poses difficult questions for the military alliance’s 31 members, from how ready they’re to combat Russia, as to whether its mutual-defence clause must be earned earlier than it’s given.

We’re additionally studying and watching . . .

Chart of the day

China’s financial system teetered on the brink of deflation in June, including to requires Beijing to launch a stronger stimulus package deal to maintain the nation’s sputtering post-Covid restoration. The patron worth index was flat yr on yr and declined 0.2 per cent in contrast with the earlier month, whereas manufacturing unit gate costs fell on the quickest tempo since 2016.

Take a break from the information

Feeling worn out? Take a nap. Employers are waking as much as the advantages of snoozing on the job, as teams from regulation companies to banks search assist for the overworked.

A workman takes a nap on a girder during the building of Radio City in New York in 1933
A brief snooze isn’t an indication of idleness or ethical decay. Framing a nap as fecklessness makes it extra interesting © Normal Photographic Company/Getty Photos

Extra contributions by Tee Zhuo and Gordon Smith

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