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Pressure is intensifying on the US Federal Reserve to increase interest rates. John Williams, president of the Federal Reserve Bank of San Francisco, is the latest of a growing number of senior policymakers at the Fed who say the US economy has recovered from the financial crash and that this should be reflected in monetary policy.
However, in the wake of mediocre jobs and manufacturing reports this month, traders have been betting more heavily on rates staying put. The divergent data highlight the difficult choice for Fed officials as they decide whether to raise interest rates this month for the first time since last December. On the one hand, policymakers are keen to make sure the economy does not overheat and cause inflation to rise too far beyond its 2 per cent target. But on the other, they have to consider the risk that higher rates could weigh on already fragile economic growth. (FT)
In the news
Bumper autumn The starting gun for what is expected to be a bumper autumn for corporate bond sales was fired on Tuesday, with new offerings from US and European companies testing investor appetite. More than a dozen sold debt on Tuesday, including Siemens, Home Depot, Honda, Deere & Co and Duke Energy, as corporate treasurers raced to lock in low borrowing costs before a possible market disruption. (FT)
Syria peace plan Syria’s opposition has drawn up a detailed transition plan for the war-torn country. The High Negotiation Committee, which represents more than 30 political and military forces, says it envisages a nonsectarian future without Bashar al-Assad. The blueprint comes amid reports of a chlorine gas attack on opposition-held Aleppo by Mr Assad’s forces. (Guardian, Reuters)
Trump’s donation woes The US presidential candidate is under fire for donating $25,000 to a group supporting Pam Bondi, Florida’s attorney-general, to allegedly influence a review of fraud allegations at his eponymous Trump University. Mr Trump denies any wrongdoing and said he “never spoke to her about that at all”. (NYT)
Brexit fears hit UK factories Data reveal the biggest fall in manufacturing for a year last month. The drop has been blamed on Brexit-related uncertainty and comes as the British prime minister and some members of her cabinet appear to disagree over their vision for the country’s future outside the EU. (FT)
Fox pays $20m sexual harassment lawsuit Rupert Murdoch’s company will pay Gretchen Carlson to resolve the former Fox News presenter’s harassment claim against Roger Ailes, the ousted head of the rightwing channel. Fox apologised to Ms Carlson, who said Mr Ailes — who is now advising Republican presidential nominee Donald Trump — had asked her to start a sexual relationship with him. (FT)
It’s a big day for
Dell The final piece in the company’s complex $62bn acquisition of EMC is set to fall into place when an unusual tracking stock with a notional face value of more than $16bn starts trading in New York. (FT)
Bank of England Governor Mark Carney will make his first public appearance since the central bank unveiled its easing package last month, when he testifies before parliament. Pro-Brexit ministers have seized on a recent string of upbeat business surveys. (FT)
iPhone obsessives Apple is holding a keynote event, where executives are expected to unveil the iPhone 7, a new Apple Watch and software improvements. (Macworld)
Keep up with the important business, economic and political stories in the coming days with the FT’s weekahead.
Food for thought
The tide of globalisation is turning At least in terms of trade and capital flows, the evidence is clear, writes Martin Wolf. “Globalisation has reached a plateau and, in some areas, is in reverse.” (FT)
ASEAN’s integration hiccups The Association of Southeast Asian Nations is trying to create a common market, but 5,975 regulations are threatening to rob the project of its meaning. (NAR)
Selling your baggage allowance A clutch of new apps allows passengers to make money from their airline baggage allowance. Passengers and “customers” in destination cities are paired up in a sort of Airbnb for suitcases. (Economist)
How Snowden hid in Hong Kong It is one of the busiest, most crowded cities on earth. Yet for two weeks the world’s most wanted man managed to hide in Hong Kong. Here is how Edward Snowden did it. (National Post)
Is white hair good for business? After a quarter century of dying her hair brown, FT business editor Sarah Gordon felt compelled to embrace the real her — or at least her real hair. She asks why women are so reluctant to show their white (or grey) hair. (FT)
Video of the day
Simon Schama on art in the media How does art translate to television and other broadcast media? Historian, broadcaster and FT contributing editor Simon Schama speaks to arts writer Harriet Fitch Little about the challenges and discoveries. (FT)