Fed expectations, Tunis attack and stargazing

The daily briefing “FirstFT” from the Financial Times.

Bond investors are betting that the Fed is making like Michael Jackson and doing a moonwalk– it looks like you’re going forward but you’re actually moving back. Thus undeterred by the Fed’s ditched pledge to be patient about lifting rates, plenty of the smart money is on US rates staying near historic lows.

But the mixed messages are confounding banks too; even the top chiefs at Goldman Sachs have different views on when the Fed will act and how they should position themselves. Industry execs have been hoping for an interest rate rise for years as it would boost profits – but they’re still not sure if their hopes are about to be fulfilled. (FT)

In the news

US reconsiders supporting Israel at UN Benjamin Netanyahu backtracked on his earlier rejection of a Palestinian state, but the White House is still rethinking the support it gives Israel at the UN. The US has previously used its veto on the UN Security Council to protect Israel from resolutions critical of its treatment of Palestinians, but it says that was based on the ultimate scenario of a two-state solution. (FT)

Holcim and Lafarge solidify EUR41bn deal Europe’s two largest cement companies rescued their merger by reconciling differences over financial terms and management. Holcim had said on Monday that the deal to create the world’s biggest cement company could “not be pursued in its present form”. (FT)

BNY Mellon’s $714m payment over fraud claims The largest US custody bank will pay to settle allegations of fraud by giving customers the worst rates on foreign exchange transactions while promising “best execution”. Matt Levine examines its FX execution and explains why it was, quite simply, bad. (FT, Bloomberg)

Militants claim responsibility for Tunis attack Isis claimed responsibility and other militant groups signalled association with the shooting of 20 tourists. Authorities have arrested nine people but have yet to establish any link to a militant group. Analysts are concerned that the shooting spree tactic is “catching on” pointing to similarities with recent attacks in the Canadian Parliament and Charlie Hebdo. Tunisia’s tourism, which accounts for 7 per cent of GDP has been hit as cruise ships suspended stops at the country. (NYT, FT)

Pharrell speaks out about Blurred Lines ruling The singer warned that creative industries are at risk of a wave of copycat litigation after a jury ruled that “Blurred Lines” infringed on the copyright of Marvin Gaye’s “Got to Give It Up”. Although the tracks have a similar sound and feel they have different note and chord sequences. “The verdict handicaps any creator out there who is making something that might be inspired by something else,” said Williams. (FT)

It’s a big day for

The Guardian, which names its new editor today. Alan Rusbridger steps down this year after two decades in charge and the shortlist is down to Katharine Viner, the Guardian’s US editor-in-chief, and Ian Katz, editor of the BBC Newsnight programme.

Stargazing Britain will see its first major solar eclipse for 16 years from about 8.30am. Grid managers will be monitoring it closely for disruption to power supplies – up to 35 gigawatts of solar power, the equivalent of about 80 conventional power stations, is expected to fall off the European grid during the event. Scientists will also hope to gain insights into the mysteries of the weather so forecasts and climate change models can be improved. (FT, New Scientist)

Food for thought

A hip hop education Irvin Weatherby Jr, a lecturer on English composition and literature at the City University of New York, teaches hip hop to his classes: “it’s a significant conveyor of Black English – just as significant as the prose and verse of any black writer.” But he does note that, “The problem with hip hop, unfortunately, is the role it plays in keeping the n-word alive.” (The Atlantic)

Invention starts with imagination Arthur C Clarke is cited as a techno-visionary for his idea of using space satellites for global communications but making fiction a reality doesn’t have to end there. Science writer Jon Turney looks at how storytelling can inspire more revolutionary technology from dog-walking drones to “magic meatballs”. (Aeon)

A divided land Faltering peace talks to resolve bitter civil war in Libya have taken on new urgency with the spread of Isis and other jihadi groups in the oil rich state.

Video of the day

What next for Uber? Lionel Barber talks to Travis Kalanick, chief executive of Uber and FT’s Boldness in Business Person of the Year. Kalanick explains why it is particularly difficult to do business in Seoul and why there’s no IPO coming any time soon. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: The United States Federal Reserve Board building is shown behind security barriers in Washington. REUTERS/Gary Cameron.