Defence companies ramp up hiring

Good morning.

We start today with an FT survey that found global defence companies are recruiting workers at the fastest rate since the end of the cold war. The survey of the hiring plans of 20 large and medium-sized US and European defence and aerospace companies found they are looking to recruit tens of thousands of people this year.

Governments around the world have ramped up military spending since Russia’s full-scale invasion of Ukraine and amid widespread geopolitical tensions. 

The sudden spike in orders after decades of low volumes, combined with competition for digital skills from technology groups and a labour market still dealing with Covid-era staff shortages, are some of the factors driving the industry-wide hiring spree.

And here’s what I’m watching today:

• China: The country’s second-most powerful official will continue his visit to Australia, which is part of a wider regional tour to improve diplomatic relations after several years of acrimony.

• The People’s Bank of China: The bank will announce its medium-term lending facility (MLF) rate. Also coming, the industrial output for May, retail sales and house price index data.

• In India and other countries: Financial markets will be closed for the Bakri Id/Eid al-Adha holidays.

• France: The campaign for French parliamentary elections will officially begin. Stay up to date with the FT’s Europe Express newsletter.

Five more top stories

1. China’s President Xi Jinping told European Commission President Ursula von der Leyen that the US was trying to trick China into invading Taiwan, but he would not take the bait. The remarks are the first known case of Xi making this claim to a foreign leader and come as tensions are high across the Taiwan Strait. 

2. Benjamin Netanyahu denounced yesterday plans by his country’s military for a limited pause in operations near a crossing into Gaza as “unacceptable”. The prime minister’s comments come amid growing domestic criticism of his handling of the nine-month war against Hamas. 

3. Adidas has launched an investigation into allegations of large-scale bribery in China. The move comes after the sportswear maker received a whistleblower complaint that accused senior staff of embezzling “millions of euros”.

4. Hyundai is planning to list its Indian business in what is set to be one of the biggest-ever public offerings in India. The South Korean automaker will sell up to 142mn shares, or 17.5 per cent, of its holding in Hyundai Motor India on local exchanges.

5. Taiwan’s president Lai Ching-te has implored the country’s armed forces to shake off its Chinese Nationalist party legacy and urgently focus on its mission of defending an unprecedented threat from China.

The Big Read

Toyota is betting that its continued investment in fuel-based technology will pay off at a time when consumers are choosing hybrids rather than fully electric vehicles due to concerns about cost and driving range. The world’s largest carmaker by sales has developed a new generation of smaller engines with a unique design using shorter pistons that promises higher fuel efficiency when used alongside batteries in hybrid vehicles. But industry executives and analysts remain divided on whether the bet will pay off.

We’re also reading and listening to . . . 

Chart of the day

China’s residential mortgage-backed securities (RMBS) market has shrunk by almost two-thirds over the past year after a wave of early repayments from property owners that highlight the country’s constrained investment landscape. Analysts said the data was a sign of more households choosing to repay their debts.

Take a break from the news

Meet Japan’s legendary Ama, a hearty group of female freedivers who seek pearls, lobsters, abalone and more with an average age of 70. Traditionally, while the men went out on their boats to fish, the Ama would dive, carrying stones around their waists that would help them sink to the bottom; then they would search along the rocky ocean floor and, if they were lucky, find an oyster containing a pearl. The Ama remain a fixture in the Japanese imagination, symbolising resilience and the sea.

Additional contributions from Tee Zhuo and Benjamin Wilhelm