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Good morning. In today’s newsletter we’re covering:
Xi’s shift on youth unemployment in China
Upheaval in global shipping
Uniqlo’s quest to win over China’s middle class
But we start with Taiwan, where the opposition-dominated parliament has broadened its own powers despite objections from the ruling Democratic Progressive party and the country’s largest protests in a decade.
The legal amendments passed after a voting marathon yesterday undermined President Lai Ching-te’s attempt to unify Taiwan against growing threats and pressure from China just a week after he took office.
The amendments to the law governing the legislature give it extensive authority to investigate government policies and projects. They also allow lawmakers to find government officials guilty of contempt of parliament, a new criminal charge punishable with fines or prison.
While opposition parties say Taiwan’s political system gives the president powers that are too far-reaching, the ruling party, civic groups and academics said the changes undermined Taiwan’s democracy.
“This is a parliamentary coup,” said Wu Rwei-ren, a political scientist and historian at Academia Sinica, Taiwan’s top research institution. Read the full story.
Here’s what else I’m keeping tabs on today:
Economic data: Vietnam publishes CPI inflation data, industrial output and trade balance figures for May. Australia releases April CPI figures.
BHP-Anglo American talks: The mining companies have failed to make progress on terms for their £39bn megamerger, setting the stage for fraught final hours of talks before a 5pm (London time) deadline for negotiations to expire.
Trump ‘hush money’ trial: A verdict could come today, when the jurors are likely to be handed the case for deliberations following closing arguments.
South Africa general election: The governing African National Congress is in danger of losing its parliamentary majority for the first time since the end of apartheid.
The US-China geopolitical relationship: what is the way forward? Join FT, Nikkei Asia and Asia Society experts for a free webinar on June 18 and put your questions to our panel now.
Five more top stories
1. Xi Jinping has shifted his stance on youth unemployment a year after telling young people in China struggling to get a job that they should “eat bitterness”, or endure hardship. Striking a more sympathetic note yesterday, China’s leader ordered the Communist party’s politburo leadership group to make the provision of “high-quality full employment” an economic priority.
2. Toyota has unveiled plans for a new generation of internal combustion engines designed to be used alongside batteries in hybrid vehicles. In a rare joint appearance, the heads of Toyota, Mazda and Subaru pledged to continue investing in fuel-based technology, betting on a continued need for older technologies even as car buyers shift towards Tesla and other electric-vehicle makers.
3. Israel sent tanks into the heart of Gaza’s southernmost city, according to eyewitnesses. The expansion of its military operation in Rafah comes despite growing international condemnation following lethal Israeli air strikes over the weekend that killed dozens of civilians.
4. Exclusive: India’s Adani Group is in talks to expand into ecommerce and payments as the conglomerate builds a digital business to compete with the likes of Google and Reliance Industries in the world’s most populous country. The plans come as the group seeks to move on from damaging scandals and diversify into consumer-facing sectors.
5. Hess shareholders have approved a $53bn takeover by Chevron, advancing a controversial acquisition at the heart of a high-profile brawl between America’s leading oil companies. The takeover remains subject to an investigation by the Federal Trade Commission and an arbitration process launched by rival ExxonMobil.
The Big Read
Pirate attacks, Middle East instability and drought are causing disruption and congestion at the world’s ports, and could grow worse as the pre-Christmas “peak season” approaches in late summer and autumn. The simultaneous problems are creating what analysts call “real black swan events” for the industry, with one executive saying he had not seen anything like this “in my 30 years in shipping”.
We’re also reading . . .
Chart of the day
The Philippines is pressing the US and its allies to boost trade and investment in the country as escalating tensions with Beijing — Manila’s biggest trading partner — spark fears of a wider economic fallout.
Take a break from the news
Why has perfume become so expensive? The answer lies in the rise of niche fragrances, which are made with rare and expensive ingredients for a more exclusive market. “This category of perfume is driven by passion — not what we think is [rational] or not,” said one fragrance maker.
Additional contributions from Camille de Guzmán and Leah Quinn
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