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After a frenetic week, the global bond market sell-off has cooled. But ahead of the market opening in London and Europe, the selling of bonds had deepened and spread to equities after recent hawkish speeches from central bank heads sparked fears that the post-crisis period of easy monetary policy was nearing its end. Those fears hit government bonds in most major countries this week, pushing borrowing costs sharply higher across the world and setting the stage for gold’s first monthly decline of the year.

Even as bond yields were easing, sentiment remained unsettled in Europe. The wild swings this week show how markets are prone to misconstrue statements of the obvious by leading policymakers. (FT, WSJ)

In the news

Trump acts against Chinese lender
The Trump administration has hit China’s Bank of Dandong with sanctions for alleged dealings with North Korea. The administration has cut the bank off from the US financial system in a big move aimed at convincing China to put more pressure on Pyongyang. Separately, Beijing has built new military facilities on a disputed reef in the South China Sea, suggesting Mr Trump did not convince China to change its maritime course during his summit in April with Chinese president Xi Jinping. (FT)

Germany backs same-sex marriage
German lawmakers on Friday voted to legalise gay marriage, making the country the 14th EU nation to grant equal rights to same-sex couples. Chancellor Angela Merkel voted against the reform, even though she had earlier in the week paved the way for the move by allowing members of her conservative bloc a free vote on the controversial question. (FT)

Buffett’s big dividend
Warren Buffett is poised to become one of the largest individual beneficiaries of the US banking industry’s success in this week’s Federal Reserve stress tests. The famed investor stuck with the banks even as many others shunned them after the 2008 financial crisis. He may now receive some $1.6bn in dividends. (FT)

Russia’s oil diplomacy
State-controlled oil company Rosneft is in discussions with Iraqi Kurdistan over the development of oilfields in disputed territory at the heart of tensions with Baghdad. The move into the KRG is the latest sign that Moscow is using the oil company to bolster a more aggressive foreign policy stance in the Middle East. (FT)

Sarin in Syria
The Organisation for the Prevention of Chemical Weapons said that the nerve agent sarin was used in an attack on the Syrian town of Khan Sheikhun last April. The OPCW did not say who was responsible but residents of Khan Sheikhun and the British government say the Syrian regime was behind the attack. The Syrian and Russian governments said the mass exposure to the chemical came after an opposition storage facility was hit. (Guardian)

China’s Uber of bikes
China’s latest export to the world is its bike-sharing service. After entering Singapore, it now has launched its services in Manchester with 1,000 bikes, charging 50 pence (60 cents) per half-hour. Known as “Uber of bikes”, Mobike is one of China’s most promising start-ups. (NAR)

The day ahead

Canada turns 150
On July 1 Canada turns 150 with its usual modesty. Here is a look at Expo 67, the world fair and centennial celebration that symbolised the country’s coming out on the international stage. (NYT)

Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.

What we’re reading

Spain, divided
The regional government of Catalan, the region surrounding Barcelona that has been a part of Spain for centuries, has vowed to hold a referendum on secession in October. (FT)

The rise of the middle-aged tennis champion
Rahul Jacob celebrates Roger Federer’s late rally and asks: is 30 the new 25 for top players? (FT)

Life after coal
Residents of coal-rich Appalachia have long accepted that the pollution and disease associated with coal mining are outweighed by the benefits of employment and high salaries, and strongly object to any criticism of the industry. One activist is fighting to show them that coal has no future. (New Yorker)

How handbags saved the saltwater crocodile
The multimillion-dollar trade in crocodile skins has helped revive numbers of Australia’s once-endangered crocs. A crocodile skin bag can cost anything from US$10,000 to US$400,000, making crocodile farming a lucrative business — no wonder luxury fashion houses have got in on the act. (FT)

Secret history of US meddling in Iran
The State Department has been quietly publishing previously secret documents outlining Washington’s role in the 1953 coup in Iran — an operation that ultimately pushed the country towards its revolution two-and-a-half decades later. (AP)

The iPhone’s unlikely beginning
“It began because Steve hated this guy at Microsoft.” The iPhone turned 10 this week, here is the real back-story behind its birth. (FT)

Video of the day

The Repeal Bill explained
The FT’s political correspondent Henry Mance travels around London to understand the challenges of the Great Repeal Bill, a large legislative programme to convert EU rules into British law after Brexit. (FT)


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