US banks under commodity pressure, China sets a new growth floor and a surge in deaths among older white Americans

The daily briefing “FirstFT” from the Financial Times.

This article is published in collaboration with FirstFT.

The presidents of Taiwan and China will hold talks on Saturday in the first cross-strait meeting between leaders since Taiwan broke away from the rest of China in 1949.

The ensuing row over the independent status of Taiwan, which Beijing still regards as a renegade province, has driven a military build-up in the region and repeatedly raised fears of conflict. (FT)

In the news

US banks under commodity pressure Institutions that handle physical commodities will be forced to hold large new capital cushions under Federal Reserve plans to hedge against costly disasters such as tanker spills or gas pipeline explosions. The Fed wants to use capital charges to discourage banks from risky activities that could threaten their survival in the event of a catastrophe, according to people briefed on the matter. (FT)

Tension on the seas Rivalry between China and the US spilled over into a meeting between major Asian defence ministers on Wednesday when plans to issue a joint statement were cancelled after failure to reach an agreement on language about the South China Sea. (FT)

White, middle-aged, uneducated and dying An alarming surge in deaths among older white Americans is being attributed to drug and alcohol abuse and mental health issues. The trend has reversed decades of progress and is not being seen in other advanced economies. (FT)

VW woes deepen The German carmaker said it had uncovered inconsistencies when determining carbon dioxide emission levels that could affect roughly 800,000 cars. VW estimated the economic risks of the problem, separate from the diesel emission cheating scandal, could be around EUR2bn. (FT)

Xi lowers expectations Chinese president Xi Jinping has set a new growth floor of 6.5 per cent as he warned that the economy faces domestic and global uncertainties. (WSJ)

Amazon opens first bookshop The online retailer, often blamed for killing high-street bookshops, opened its first ever bricks-and-mortar outlet for bibliophiles on Tuesday in its home city of Seattle. (FT)

It’s a big day for

Japan Post The company, along with its banking and insurance units, has listed in Tokyo in the largest IPO since Alibaba in September 2014. (FT)

You can see more upcoming events here. (FT)

Food for thought

China manufacturing: adapt or die The economy is slumping, labour costs are rising and customers are cutting orders. What can factory owners do to survive? (FT)

A credit system for China? How will policymakers develop a score chart that incorporates the social, moral, and financial history of an entire population? This analysis looks at plans by Beijing to create a credit scoring system for its citizens. (New Yorker)

The US labour market is not working The proportion of American men and women neither in work nor looking for it is worse than for nearly every other leading high-income country. Martin Wolf argues that the decline indicates a significant dysfunction in the US. (FT)

The 26m year time-bomb Scientists say new evidence supports a 26m year cycle linking comet showers and global mass extinctions. (The Atlantic)

A history of exhaustion Only recently have sleeping and doing very little – the ways human beings have always rested – come to be seen as an insufficient response to tackling stress. (BBC)

Video of the day

Tidjane Thiam defends investment banking The Credit Suisse chief says investment banking should focus on the real economy, with equity capital markets playing a bigger role in Europe. (FT)

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. REUTERS/Gary Cameron.