The Fed lifts off, Brazil cut to junk again and first modular smartphone launched

This article is published in collaboration with The Financial Times.

The Fed raised rates for the first time in nearly a decade, ending the near-zero environment that has prevailed in the US since the financial crisis. Policymakers expect only “gradual” future increases in the federal funds rate after the quarter-point increase to 0.25-0.5 per cent.

Investors took the widely expected move in their stride, while many welcomed it on the grounds that it would remove uncertainty — and Lex argues that it is an appropriate response to the state of the real economy. But some question whether the rise is premature, and first-time homebuyers, in particular, are likely to suffer as a result.

The next big question: who will move next? (FT)

In the news

Brazil cut to junk again Fitch became the second agency to slash the credit rating of Latin America’s largest economy to below investment grade, reflecting a “deeper recession than previously anticipated”. (FT)

US and Cuba to resume flights Officials in Washington and Havana have reached an understanding on resuming commercial flights between their two countries, with an announcement imminent. The move is a significant step nearly a year after the former cold war enemies began restoring diplomatic relations. (BBC)

The Uber/Facebook alliance The world’s biggest ride-hailing company has agreed an alliance with Facebook Messenger that will allow users to order a ride from within the chat app. The tie-up gives Uber access to millions of potential new users and marks the first time that Messenger has ventured into the transport field. (FT)

Xi defends China cyber-sovereignty President Xi Jinping has defended China’s right to a “sovereign” internet in a speech that underlines China’s increasingly assertive efforts to justify online censorship. Delivering the keynote speech at the second annual Global Internet Conference in Wuzhen, he defended “the right of individual countries to independently choose their own model of cyberspace governance”. (FT)

First modular smartphone launched A smartphone designed to be easy to repair and upgrade goes on sale this week. The internal components of the Fairphone 2 are split into modules that can be replaced with minimal tools or expertise. The company behind the phone hopes this will encourage owners to keep their phones for longer, rather than regularly changing to new devices. (BBC)

It’s a big day for

Brexit EU leaders gather for a two-day summit in Brussels, where they are set to hold their first substantive talks on the UK’s demands to renegotiate its membership terms. George Soros, for one, says the UK should think twice before leaving the bloc. (FT)

Food for thought

Putin’s gunslinger gait Russian President Vladimir Putin walks with a peculiar “gunslinger’s gait”. His “clearly reduced right-sided arm swing” is likely linked to the weapons training he received when he was part of the Soviet KGB, according to a new study published in the British Medical Journal. (The Guardian)

Celebrate the rise of flawed, febrile China There are many risks to the rise of the world’s second-largest economy. But David Pilling argues that there may be even more reasons to celebrate. “China’s rise is the most important event of our epoch . . . The consequences of the rejuvenation of a nation containing one-fifth of the world’s people will be profound, drawing the globe’s centre of gravity from west to east.” (FT)

A giant co-working office above London LA-based architect Clive Wilkinson has drawn up conceptual plans for a giant shared office that would hover above London, enabling people to simply walk upstairs to their mobile workplace. The single, horizontally connected workplace would offer a solution to escalating commute times, Mr Wilkinson said. (Dezeen)

Dealmakers: The irrepressible Mr Windhorst Once hailed as a “wunderkind” in his native Germany, Lars Windhorst oversaw the collapse of two companies, fell into personal bankruptcy and received a suspended jail sentence — all before he was 34. Now, the financier has launched a charm offensive in London, hoping to rebuild his reputation through lavish parties and successful deals. (FT)

Death of a masonic grandmaster Licio Gelli, an Italian financier and former grandmaster of notorious masonic group Propaganda Two, has died at the age of 96. Mr Gelli, a life-long self-admitted fascist, was linked to some of Italy’s most troubling episodes. (BBC)

Video of the day

The fight Cameron needs over Brexit David Cameron, UK prime minister, is heading for a crucial summit in Brussels as he seeks to renegotiate the terms of Britain’s EU membership. FT editor Lionel Barber talks to political commentator Janan Ganesh about the dilemma the PM faces. (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: Silhouetted workers walk in front of office towers in the Canary Wharf financial district in London. REUTERS/Luke MacGregor.