Stay informed with free updates
Simply sign up to the World myFT Digest — delivered directly to your inbox.
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
Good morning.
Rishi Sunak quelled a rightwing Conservative revolt over his flagship Rwanda asylum bill yesterday as the House of Commons approved the legislation in a pivotal vote.
Many of the rightwing Tory MPs who were threatening to rebel over the bill had earlier indicated they would back down, and the bill was approved by 320 votes to 276 at its third reading in the Commons.
The UK prime minister had been hit by the biggest rebellion of his premiership on Tuesday after 60 Tory MPs backed an amendment to toughen up the bill by preventing asylum seekers from appealing against their removal under international human rights law.
Lee Anderson and Brendan Clarke-Smith resigned as Tory deputy chairs before they were sacked in order to vote for the amendment, as did Jane Stevenson, formerly a ministerial aide.
The bill underpins a near two-year-old plan by the government to send some asylum seekers to Rwanda, and thereby try to deter migrants from coming to the UK in small boats across the English Channel. Here’s more on the legislation, which is now set to face harsh opposition in the House of Lords.
-
Analysis: When asked by the Financial Times about the Tory revolt, a former cabinet minister pulled an imaginary pistol from his pocket and took aim at his two feet. Read more about the heavy toll the Rwanda bill has taken on Sunak.
For more on British politics, sign up for our Inside Politics newsletter written by Stephen Bush. Here’s what else I’m keeping tabs on today:
-
Davos day four: The World Economic Forum’s annual meeting continues after Argentina’s libertarian President Javier Milei delivered a fiery speech yesterday accusing western leaders of abandoning “the values of the west”. Stay updated with our on-the-ground coverage and live events from Switzerland.
-
Monetary policy: The European Central Bank publishes minutes from its latest rate-setting meeting. Sign up for our premium Central Banks newsletter by Chris Giles for more insights on rate-setters’ battle against inflation, or upgrade your subscription here.
-
Economic data: The International Energy Agency publishes its monthly oil market report.
-
Northern Ireland: Today marks the legal deadline for restoring power-sharing in the region after the assembly collapsed in February 2022.
-
Companies: Taiwan Semiconductor Manufacturing and Birkenstock report fourth-quarter results, while UK-based investment platform AJ Bell have updates.
What are your bonus expectations? Do you intend to invest, save or spend the cash? Let us know in our quick, anonymous survey here.
Five more top stories
1. Global stocks and bond markets retreated yesterday as investors scaled back expectations of swift interest rate cuts in the eurozone, the UK and the US. The worldwide sell-off came after European Central Bank president Christine Lagarde signalled that borrowing costs would come down in the summer rather than spring. It also followed the first rise in UK inflation in 10 months. Here’s what the central bank chief said about rate prospects.
2. Bobby Jain’s new hedge fund is falling short of its original $8bn-$10bn fundraising target, thwarting his ambition for the industry’s largest-ever debut. The Credit Suisse veteran and former co-chief investment officer of Millennium Management has told potential clients he is now aiming to launch Jain Global in July with $5bn-$6bn of assets, according to investors. Here’s why he’s had to scale back his goal.
3. Morgan Stanley’s market capitalisation premium against Goldman Sachs is shrinking after the former warned this week that its flagship wealth management business — which helped make it a Wall Street darling — would fall short of profitability targets in the near future. The difference between the two banks stands at about $11bn, the smallest gap in three years.
4. Exclusive: Boeing’s financial targets must “take a back seat” as it focuses on safety, warned Aengus Kelly, chief executive of the world’s biggest aircraft leasing company AerCap. The US aerospace and defence group cannot “afford another slip-up” with its 737 Max aircraft, he told the FT. Read the full interview.
5. A US appeals court has allowed a sales ban on Apple’s Watch Series 9 and Ultra 2 to resume, the latest setback in the technology giant’s dispute with health technology company Masimo over patents for its blood oxygen tracking feature. Here’s more on the court’s decision yesterday.
Visual story
Joyce Poole, 67, has been researching elephants for five decades and is convinced they are capable of complex communication. While years of study have revealed the meaning of some of their calls, there is still a great deal she doesn’t know. A new tool could transform our understanding of the animal kingdom: generative artificial intelligence. The FT’s audiovisual team explores how the same technology that is powering ChatGPT could eventually allow us to understand — or even speak — animal languages.
We’re also reading . . .
-
Red Sea attacks: For decades, the world has relied on the US Navy to keep shipping lanes safe. But the latest Houthi attacks show the risks of this dependence, writes Alan Beattie.
-
Ukraine: A series of attacks and smear campaigns targeting prominent Ukrainian journalists has cast a shadow over Volodymyr Zelenskyy’s record on safeguarding media freedom.
-
German politics: Growing popular anger with a government seemingly lurching from crisis to crisis is boosting support for the country’s far-right politicians.
-
Nigerian youth: Our Thriving Cities special report explores an initiative that aims to lift a new generation in the African country out of poverty through access to professional training and experience.
Chart of the day
December’s unexpected rise in UK inflation is a setback for those who had hoped the Bank of England was already entering the home straight of its long journey to restore price stability. But how worried should central bankers be?
Take a break from the news
Franz Kafka, born in Prague to a German-speaking, Jewish Czech family, died on June 3 1924. As the centenary of his death approaches, Nilanjana Roy reflects on the enduring attraction of an unlikely literary superstar who is said to have burnt about 90 per cent of his writings — and the relevance of his works in an increasingly Kafkaesque world.
Additional contributions from Benjamin Wilhelm and Gordon Smith
