China allows currency to strengthen, Brussels backs IMF on Greece and Japan’s longest day

The daily briefing “FirstFT” from the Financial Times.

The People’s Bank of China rounded off an astonishing week by allowing the renminbi to strengthen against the dollar. On Friday morning, the central bank set the reference point around which the currency trades 0.05 per cent stronger than Thursday.

The devaluation of the currency earlier in the week startled investors and is now turning the mood of the market against an imminent interest rate rise by the US federal reserve. (FT)

In the news:

Oil futures drop to 2009 levels

US oil futures slipped to their lowest price since the financial crisis as a refinery glitch threatened to add to a persistent glut of crude. Nymex September West Texas Intermediate crude ended down 2.5 per cent at $42.23 a barrel on Thursday. (FT)

China vows blast investigation

President Xi Jinping has pledged a thorough investigation after two huge explosions ripped through chemical warehouses in the port city of Tianjin, leaving at least 50 dead. Elite troops, trained to handle nuclear or chemical disasters, have since been dispatched to the city to handle the fallout. (FT)

Brussels backs IMF on Greece 

The European Commission and the European Central Bank have thrown their weight behind debt relief measures championed by the fund, including extending repayment periods, which would allow Athens to achieve debt sustainability without the need for a full-scale debt haircut. (FT)

Every breath you take

About 4,400 people die every day in China as a result of air pollution. That adds up to roughly 1.6m people every year , according to a new study which found about three-eighths of the Chinese population breathe air that would be considered “unhealthy” in the US. (NYT)

A revealing new crime

Police in London are investigating a new form of “cyber flashing.” A 34-year-old commuter said she felt violated after receiving a series of lewd images from an unknown sender while on a train in the south of the city. (BBC)

It’s a big day for:

Historical grievances

Japanese prime minister Shinzo Abe is expected to make a speech to mark the 70th anniversary of the country’s defeat in the second world war – and South Korea and China will be listening closely for an apology. (The Economist)

US-Cuba relations

John Kerry is set to raise his country’s flag above the newly re-established embassy in Havana during the first visit to the island by a US secretary of state since 1945. (Politico)

Food for thought:

Japan’s longest day

On the night of the country’s surrender to the Allies in 1945, a group of rebel officers launched a coup d’etat and seized control of the imperial palace in Tokyo. Their objective: to prevent the country’s capitulation and continue fighting to the last man. (FT)

The riddle of the sword

A mysterious inscription on a 13th-century doubled-edged sword hasbaffled the British Library. So now it is taking to the internet to harness the collective wisdom of the online masses. (Quartz)

The president’s daughter

New genetic tests have confirmed a nearly century-old rumour: former US president Warren Harding had a love child. (BBC)

A fantasy that trumps reality

Donald Trump is essentially a narcissist taking his ego out for a joyride and – despite his early success in polling – it will not last for ever. So enjoy the trip, says Jacob Weisberg. (FT)

The Isis theology of rape

A harrowing look at how the extremist group – claiming its own twisted reading of the Koran – has codified sex slavery in the regions under its control, and uses the practice as a recruiting tool. (NYT)

Video of the day:

Range-bound amid panic

China’s renminbi devaluation saw big losses for some blue chip stocks but neither that nor Greece could knock the S&P 500 out of its trading range. James Mackintosh, investment editor, says US equities have been stuck in a tight six-month range and wonders if this signals complacency. (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: Customers select goods at a supermarket in Lianyungang, Jiangsu province. REUTERS/Stringer