Emerging market currencies slump, a $61bn warning and ready for the Fed’s announcement

The daily briefing “FirstFT” from the Financial Times.

Emerging market currencies fell to 15-year lows as China’s equity rout and free-falling commodity prices reverberate throughout the global economy. (FT)

The turbulence is expected to increase once the US Federal Reserve increases interest rates from near-zero levels, a move that is likely to have a chilling effect on developing markets. (FT)

In the news:

Disneyland brought back to reality

The fairytale kingdom at Disneyland Paris got a dose of the real world on Tuesday after the European Commission told France to investigate whether the theme park is unfairly rigging some of its fantastical prices. (FT)

Nothing to tweet about

Social media is flying the Twitter coop. The number of monthly active users on the site grew by just 2m, or 1 per cent, over the previous quarter – a growth ratedeemed “unacceptable” by company executives. (FT)

Kerry comes out fighting

US secretary of state John Kerry sharpened his rhetoric as he intensified efforts to coax Congress into supporting the Iranian nuclear deal. “If you kill the deal, you are not making America safer,” he told fellow Democrats. (Reuters)

You can go now

In a sign of Berlin’s hardening attitude towards propping up eurozone members, the German government’s economic advisers said countries should be able to exit the euro if they are unable to manage their debts. (FT)

Slaves’ salvation

The Peruvian army rescued 39 prisoners from a “production camp” run by Maoist rebels. The captives, some of whom were kidnapped 30 years ago, were forced to work in the fields, while a number of the female hostages were expected to “procreate and give birthto new rebels“. (BBC)

Licence to kill

Regulators in the US granted the operator of Virgin Galactic’s SpaceShipTwo a licence despite noting failings in the company’s safety regime. The decision came to light following an investigation into why the suborbital rocket crashed during a test flight last year, killing the co-pilot. (FT)

It’s a big day for:

Microsoft, which launches Windows 10. The new software is “imperative” for the tech brand after its previous operating system, Windows 8, flopped. (FT)

Israeli spy Jonathan Pollard, who was granted parole after serving 30 years in a US prison for passing classified documents to Jerusalem. White House officials have denied Mr Pollard’s forthcoming release is an olive branch to Israel following the Iranian nuclear deal. (NYT)

Food for thought:

A $61bn warning

Increasingly wary of Chinese forays into the Indian Ocean, New Delhi is eyeing a deterrence strategy: it plans to spend at least $61bn on expanding its navy in the coming decade. The Kadmatt, a hi-tech submarine killer set to be launched soon, is just one of the country’s latest lethal weapons. (Bloomberg)

The writing on the (digital) wall

In the 1990s, the gangs of Los Angeles marked their territory with graffiti and gangland violence. Today, the feuds have moved on to social media, with some more conscientious crooks using online posts to warn residents of impending violence. (WaPo)

Only in Japan

Moss-viewing excursions – literally trips to view moss blooms in forests or other scenic areas – are the latest craze to hit Japan. For fans of the new and somewhat understated pastime, moss-viewing offers a respite from the daily rat race. (Japan Times)

A cyber fighter’s stance

The high-profile hack of Sony Pictures left tech experts at some of world’s biggest financial institutions reeling. They were just as vulnerable and they needed tostart fighting back. (FT)

Bonding over baldness

Four bald women walk into a bar in Brooklyn, New York. Their mission: to sort out a litany of cases of mistaken identity on the streets of the Big Apple. (NYT)

Video of the day:

Ready for the fed As the market awaits this month’s announcement on monetary policy from the Federal Reserve, it is putting only a one-in-five chance on a rate rise in September. John Authers suggests this may be too low and the Fed may try to strike a more hawkish tone. (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: Workers walk outside the London Stock Exchange. REUTERS/Andrew Winning.