Greece in arrears, climate deal boost, and US-Cuba ties

The daily briefing “FirstFT” from the Financial Times.

Greece is in arrears and out of time. It missed the EUR1.5bn payment it owed the IMF, the current bailout has expired and the eurozone’s finance ministers turned down Alexis Tsipras’s request for a third bailout.

The ECB meets today and there are fears now that its governing council could raise the amount of collateral required for the emergency loans now sustaining Greek banks. It is uncertain whether the four biggest banks will survive the next week. As Lex observes, Greece has done what an army of PR people could not: made banks objects of genuine pity.

In central and eastern European, regulators are trying to allay fears of contagion spreading to neighbouring countries where Greek banks have significant market share.

Nobel laureate Joseph Stiglitz argues that Argentina is proof there is life after default, and knows how he’d vote: ” a no vote would at least open the possibility that…Greeks might gain the opportunity to shape a future that, though perhaps not as prosperous as the past, is far more hopeful than the unconscionable torture of the present”. Martin Wolf is more torn between the devil he knows in the “self-righteous” eurozone and the deep blue sea of “sovereign default and monetary sovereignty”.

Meanwhile, an effort to crowdfund a bailout has only gone a small way to injecting EUR1.6bn into the Greek economy but the Greek spirits industry will certainly see a little boost – one of the perks is a bottle of ouzo. (FT, HuffPo, Guardian, Indiegogo)

In the news

Global climate deal boost Several countries unveiled their plans to curb greenhouse gas emissions. The US and Brazil jointly announced that they would each secure 20 per cent of their electricity from non-hydropower renewable sources by 2030. China confirmed its commitment to raising its proportion of non-fossil fuels, while South Korea said it would cut greenhouse gas emissions 37 per cent from usual levels. (FT)

Apple loses ebook appeal A 2013 ruling said it played a “central role” in a conspiracy with publishers to raise ebook prices. A US court upheld that ruling and Apple must now pay out $450m as part of the settlement. (FT)

Syria buffers Turkey is considering establishing a 33km-wide safe zone inside Syria , in an effort to strengthen the Free Syrian Army against Isis and to prevent Kurdish militia from capturing new border areas. Speculation of a Turkish military operation in Syria has grown after President Erdogan vowed last week to prevent Kurdish forces from creating “a new state” on Turkey’s southern flank. Jordan is already preparing to set up a security zone in southern Syria. (FT)

Uber execs to stand trial The ride-hailing company’s French division and two of its top executives are to stand trial on September 30 on charges of “misleading commercial practices” and “complicity in the illegal exercise of the taxi profession”. The government had already declared UberPop, which allows individuals to offer rides to the public without the standard 250 hours of training, illegal. (FT)

It’s a big day for

Processed food Kraft will seek shareholder approval of its Warren Buffett-backed merger with Heinz. 3G has been shaking up Kraft’s management ahead of the vote today, which is expected to pass. (WSJ)

US and Cuba They will announce today that they are to open embassies in each others’ capitals and formally re-establish diplomatic ties after more than 50 years of estrangement. Many aspects of the commercial embargo, however, will take much longer to expire. (FT)

Food for thought

Deutsche Bank clean-up Outgoing co-head Anshu Jain is embroiled in a furious row with financial regulators over a EUR130m bonus paid to a former star trader. And that’s just the latest of a series of problems. Germany’s biggest bank is facing its deepest crisis of confidencein a generation and investors say a management clear-out is needed to restore trust. (FT)

Talkin’ World War III blues A long look at why a nuclear conflict with Russia is more likelythan you might think, including how we got here, how it might happen and where the dangers lie. (Vox)

Smoke and mirrors Inside the US Chamber of Commerce’s covert global fight against antismoking laws, from “Ukraine to Uruguay, Moldova to the Philippines”. At stake: saving a tobacco industry with dwindling prospects in the west. How the weight of American business is ensuring that third-world residents continue to light up. (NYT)

A boundary-breaking ballerina Misty Copeland was named the first African-American female principal dancer in the 75-year history of the American Ballet Theater. Her fans celebrated but questions remain about why African-American dancers remain so under-represented at top ballet companies. Bloomberg looks at how the patronage of a Goldman Sachs banker helped take her to the top. (NYT, Bloomberg)

Video of the day

Chris Christie joins Republican field The two-term governor of New Jersey kicked off a long-shot bid for the presidency, becoming the 14th declared GOP candidate and vowing to bring his abrasive style to Washington. (On the same day, fellow contender Jeb Bush revealed 33 years of tax returns which show he has made $29m since leaving office in 2007 – some of which comes from profits from Obamacare and speaking fees from a South Korean metal and munitions manufacturer.)(FT, NYT)

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: A Greek flag flutters atop the Greek Parliament as a full moon rises in central Athens. REUTERS/Yannis Behrakis.