Reeves warns UK public funds in worst state since second world conflict

Good morning. We begin at present with Rachel Reeves’s warning that Britain’s new Labour authorities has inherited “the worst set of circumstances for the reason that second world conflict”.

In her first main speech within the function, the UK chancellor ready the bottom for robust selections on the general public funds this 12 months as she vowed to prioritise development and unblock housing developments and onshore wind farms.

“We face a legacy of 14 years of chaos and financial irresponsibility,” Reeves mentioned yesterday, as she instructed the Treasury to look at earlier spending beneath the Conservatives.

The Treasury evaluation of the fiscal inheritance from Rishi Sunak’s authorities will likely be revealed earlier than parliament’s summer season recess this month.

In an obvious reference to spending controls or tax rises, Reeves mentioned the overview would pave the way in which for “troublesome selections” in an autumn Finances, the date of which may even be introduced earlier than MPs take their summer season break. Learn the total story.

Right here’s the newest on the Labour authorities:

And right here’s what I’m protecting tabs on at present:

• Nato: Members collect for a three-day assembly in Washington to have fun 75 years of the army alliance.

• US finance: US Federal Reserve chair Jay Powell presents his financial coverage report back to the Senate banking committee and Treasury secretary Janet Yellen testifies on the Home committee listening to on the state of the worldwide monetary system.

• Firms: Kinnevik publishes its half-year outcomes. Looking, OMV and Vistry Group have buying and selling updates.

• European Area Company: Ariane 6 will try its first flight from French Guiana between 3pm and 7pm native time.

5 extra prime tales

1. Joe Biden launched an aggressive effort to carry on to his get together’s presidential nomination yesterday, issuing a defiant letter to wavering congressional Democrats and showing on nationwide tv to insist: “I’m not going anyplace.” Right here’s extra on the president’s newest strikes, which embody becoming a member of a technique name for main contributors.

2. BlackRock, Norges and GIC are backing a listed non-public fairness car from the founders of Melrose Industries, in a float this week that may come as a fine addition to the London market. Rosebank Industries bosses will contribute about 10 per cent of the preliminary £50mn fundraising. It will listing on Purpose earlier than shortly shifting to the principle market as soon as it begins shopping for corporations.

3. France’s company leaders are bracing themselves for the tip of a decade-long business-friendly local weather after President Emmanuel Macron’s snap legislative elections resulted in a hung parliament. “We have to wait, however we’re all nervous,” mentioned one enterprise lobbyist. Discover out extra about why political gridlock and the rise of the left have sparked concern.

4. Narendra Modi will maintain talks with Russian President Vladimir Putin in Moscow at present, as India’s prime minister seeks to shore up relations and stem issues about Moscow’s drift in direction of China. Right here’s what to anticipate from his first bilateral go to after India’s election and likewise Modi’s first since Russia’s invasion of Ukraine in 2022.

5. X has been hit by stalling person development, because the social media platform’s proprietor Elon Musk divides audiences and it faces the rise of Meta’s rival platform Threads. Following years of double-digit development earlier than Musk’s takeover in 2022, X mentioned its variety of international each day lively customers within the second quarter of this 12 months was 251mn, an increase of 1.6 per cent from the identical interval the 12 months earlier than. Learn the total story.

The Massive Learn

A deal to permit US traders to redevelop a 1999 Nato bomb web site in Belgrade is a case examine in how a small non-aligned state can put together for Donald Trump’s doable return to the White Home. It additionally displays a heightened western deal with Serbia at a time when prising it away from its historic soulmate, Russia, has grow to be a precedence.

We’re additionally studying . . . 

Chart of the day

China’s electrical energy grid is about for an unparalleled funding of greater than $800bn within the subsequent six years to beat strains on the power system because the nation makes a fast shift from coal energy to renewable sources. The ageing grid has grow to be a major bottleneck for inexperienced progress, with rising indicators of strain on electrical energy distribution and transmission.

Take a break from the information

FT Weekend columnist Nilanjana Roy requires a return to studying, not as a distinct segment exercise, however as an important a part of rising up. However for this technology of youngsters, discovering the time and the precise books to learn is a severe problem. On this age of smartphones and with library closures widening the equality hole, how do you make studying engaging to youngsters?

Further contributions from Benjamin Wilhelm and Gordon Smith