Twin scandals hit PwC’s Asia earnings

In the present day’s agenda: Poland’s historic grievances; Israel bans UNRWA; Spain’s financial system shines; a Nigerian tech ‘unicorn’; and Europe’s automotive disaster

Good morning. We start with the impression of scandals on PwC’s backside line in Asia.

What occurred? PwC’s enterprise within the area shrank over the previous 12 months after twin scandals induced the Massive 4 accounting agency to lose shoppers in China and compelled it to promote its authorities consulting arm in Australia.

How dangerous was the hit? The agency reported a 12.7 per cent decline in Asia-Pacific earnings for the 12 months ended June 30, reflecting its lack of market share within the area and offsetting progress within the Center East and Europe.

Income in Asia-Pacific, the smallest of the agency’s areas, fell from $10bn within the 2023 fiscal 12 months to $9.3bn, down 5.6 per cent in native currencies.

The 2 scandals compounded an ongoing slowdown within the consulting market that has additionally crimped progress at rivals Deloitte and EY of their most up-to-date fiscal years. Learn the complete report.

Right here’s what else I’m maintaining tabs on immediately:

• Excessive-level conferences: European Fee president Ursula von der Leyen has a working lunch with Nato secretary-general Mark Rutte. Ukrainian President Volodymyr Zelenskyy joins Nordic leaders on the Nordic Council assembly in Reykjavík.

• UK: The funeral of Alex Salmond is held. The previous Scottish first minister died of a coronary heart assault whereas in North Macedonia this month.

• Outcomes: Adidas, Alphabet, BP, HSBC, Lufthansa, McDonald’s, Mondelez, Novartis, PayPal, Pfizer, Reddit, Santander, Visa and YouGov are among the many firms reporting. Full listing within the Week Forward e-newsletter.

Hear instantly from the presidents of Kenya and Somalia and different leaders on the FT’s Africa Summit beginning immediately, the place they are going to focus on learn how to drive sustainable progress throughout the continent. Register right here.

5 extra prime tales

1. Ukraine ought to exhume and rebury ethnic Poles massacred on its territory, and Germany ought to spend money on navy co-operation and compensate Polish victims of the Nazis, Poland’s overseas minister has mentioned, including that historic grievances can’t be brushed apart even throughout Russia’s battle towards Ukraine. Learn the complete interview with Radosław Sikorski.

2. Spain is ready to surpass the US to change into the world’s fastest-growing main superior financial system this 12 months, increasing at greater than 3 times the tempo of the Eurozone as a complete. Economists surveyed in a ballot anticipate GDP knowledge this week to indicate the nation’s financial system is heading in the right direction to develop by 2.7 per cent this 12 months. Right here’s what’s driving progress.

3. International funding banks anticipate UK debt gross sales this 12 months to rise near £300bn, the second-highest on file, as the federal government heads for a showdown with bond traders at tomorrow’s Funds. Gilts are on monitor for his or her worst month since April as unease over a proposed loosening of the nation’s borrowing guidelines provides gas to a latest sell-off.

• Healthcare enhance: The NHS in England will obtain £1.5bn subsequent 12 months to ship 2mn further appointments as a part of a multibillion-pound annual package deal to strengthen the well being service.

• Personal fairness: Executives, lobbyists and advisers are searching for a cope with UK chancellor Rachel Reeves on carried curiosity.

4. Israel’s parliament authorized two items of laws yesterday that ban the UN company for Palestinian refugees from working inside Israeli territory and lower diplomatic ties with the organisation. The measures, which threaten the company’s potential to supply meals, drugs and shelter to just about 2mn Gazans displaced by battle, have raised considerations amongst Israel’s closest allies.

5. Unique: The Nigeria-based fintech Moniepoint has gained “unicorn” standing after elevating $110mn from traders together with Google, a uncommon shiny spot within the funding marketplace for African tech firms. One of many continent’s fastest-growing teams, Moniepoint offers digital monetary companies to a market the place many nonetheless lack entry to financial institution accounts. Learn extra concerning the start-up’s growth plans.

• Extra from Nigeria: The nation’s president has summoned oil magnate Aliko Dangote to an emergency assembly with business officers to debate supplying the industrialist’s new $20bn refinery with crude.

Strive your hand in working the UK financial system with the FT’s Funds recreation.

The Massive Learn

Europe’s automotive business is confronting an ideal storm. Demand is falling at dwelling and abroad, whereas firms are navigating a dangerous and costly transition from combustion engines to electrical propulsion. Exacerbating these issues is China, which is exporting high-quality, lower-cost electrical autos to Europe in higher numbers. Between protectionism and authorities incentives, there aren’t any simple options.

We’re additionally studying . . . 

• US overseas coverage: America wants a brand new method that’s rooted within the breaking apart of concentrated world financial energy, writes Chris Murphy, the junior senator for Connecticut.

• US elections: With only one week left, Kamala Harris and Donald Trump seem deadlocked. Right here’s what to know concerning the presidential race in its closing stretch.

• Snap’s struggles: Founder Evan Spiegel is battling to revive the social media firm’s fortunes as ambitions are hit by the rising power of arch-rival Meta.

Chart of the day

The writer of works by JK Rowling and Sarah J Maas, Bloomsbury has remained steadfastly impartial via the years. Its shopper division, pushed by gross sales of two of probably the most profitable authors of recent occasions, has risen, however the firm can also be diversifying into reference titles, having lately acquired the educational listing of US writer Rowman & Littlefield for $83mn in a hunt for steady revenues.

Take a break from the information

Jean Tinguely is seen as a pioneer of kinetic artwork. With the centenary of the latter-day Dadaist’s delivery simply months away, the Pirelli HangarBicocca museum in Milan has kicked off celebrations early with a retrospective that highlights the unconventional nature of his work and his connections with the Italian metropolis.