US recovery falters, out of control spacecraft, Argentina’s bitcoin experiment

The daily briefing “FirstFT” from the Financial Times.

The US economy has lost momentum and that means it’s unlikely the Federal Reserve will tighten monetary policy any time soon. The central bank started the year in a bullish mood, with hiring and household spending strong. But growth has spluttered in recent months due to a toxic mix of a strong dollar and tumbling oil-related investment.

The headline figures look gloomy but FT Alphaville’s Matthew Klein is optimistic about the underlying figures, which show healthy real income growth and robust consumption. He points out that investment fell in the oil and gas industry but hummed along nicely elsewhere: “A particularly encouraging sign is the sharp increase in investment in computer software and research and development, which boosted growth more than at any time in the past 60 years after the late 1990s.” (FT)

In the news

Apple tax penalties and faulty watches The company warned investors that it could face “material” financial penalties from the European Commission’s investigation into its tax deals with Ireland – more than $2.5bn by FT calculations. It has also had to limit availability of thenew Apple Watch because of a technical fault in one of the components. (FT, WSJ)

Wall Street anti-bribery law dispute The US government is looking into whether banks ran afoul of US anti-bribery laws by giving jobs to relatives of well-connected officials and Chinese princelings, allegedly to curry favour in getting deals. But Wall Street banks are pushing back, accusing the government of “overreaching by threatening to criminalise standard business practices in some countries.” (WSJ)

Out of control spacecraft An unmanned Russian supply craft malfunctioned once it reached orbit and went into an uncontrolled spin. The attempt to resupply the International Space Station had to be abandoned and the spacecraft could tumble back down to Earth within the next 10 days. This Nasa footage shows it spinning above earth. (FT, Guardian)

Shinzo Abe in US Congress Japan’s prime minister gave an emotive speech, describing the American lives lost in the second world war as “sacrifices in defending freedom”, but stopped short of an apology. His speech gave little sense that Japan’s wartime history required a special reckoning but he did offer one of the most robust endorsements by any Asian leader ofObama’s “pivot to Asia”. (FT)

Nasdaq apology The equity exchange apologised for inadvertently releasing Twitter’squarterly results early. Nasdaq has been pushing into corporate services to diversify beyond equities trading and market listings but the move has come with high profile missteps. (FT)

It’s a big day for

Fifa Two candidates hoping to replace Fifa head Sepp Blatter have requested the chance to address the Asian Football Confederation at its annual conference today. Former Portugal international player Luis Figo and Dutch FA’s Michael Van Pragg want to make their case ahead of the May 29 vote for football’s top job but have not been invited to speak. Mr Blatter will be addressing attendees in his role as Fifa president. (Reuters)

Marking the Fall of Saigon Vietnam today marks the end of the Vietnam war. Martin Woollacott, who reported on the events of that day, reflects on what happened and what it meant both for Vietnam and the US. (Guardian)

Tesla Elon Musk’s car company is expected to unveil a battery for homes that will enable users to store solar energy and lessen reliance on the grid. (BuzzFeed)

Food for thought

Ireland: embracing change The FT examines whether a vote to legalise same-sex marriage shows a liberal spirit taking hold on the emerald isle. (FT)

“The Wire” creator on Baltimore riots David Simon, the former Baltimore Sun crime reporter and creator of the HBO series, gives context to the unrest in his home town: “The part that seems systemic and connected is that the drug war – which Baltimore waged as aggressively as any American city – was transforming in terms of police/community relations, in terms of trust, particularly between the black community and the police department.” (The Marshall Project)

Saudi succession bombshell Roula Khalaf explains what we should make of this new era in Saudi Arabia. It is an end to decades-long rule by ailing kings but younger family members may balk at the shifting line of succession; while concentrating power in the hands of security men has raised concerns over confrontation with Iran. (FT)

Argentina’s bitcoin experiment The country’s history of financial instability means a small but growing number of Argentines are using bitcoin – it is cheaper and more convenient than traditional financing. The New York Times examines the success of the digital currency in a country where less than half the population use Argentine banks and credit cards.

Third wave coffee boom The artisan coffee boom has spreading beyond its hipster roots in Brooklyn and Vancouver, and is boosting consumption worldwide. (FT)

Video of the day

Last chance saloon With UK election promises flowing thick and fast, Lionel Barber and Janan Ganesh discuss the final attempts to generate momentum. (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. REUTERS/Gary Cameron.