Fed caution, Uber disrupted, and China decoupling

The daily briefing “FirstFT” from the Financial Times.

A gradual rate rise is still on the cards for the Federal Reserve but the central bank is in no hurry. Janet Yellen said policy makers are still waiting to see more “decisive” evidence of the strength of the recovery.

The Fed chair noted the economy has regained some momentum after a dismal start to the year and officials have stuck with projections suggesting the first rate rise could come as soon as September.

And the rate setters are divided , according to the Fed’s projection of where individual policy makers on the committee expect the fed funds rate to be at the end of each year. (FT)

In the news

JPMorgan’s Jimmy Lee dies The investment banker who helped the bank land prominent roles on some of the biggest technology deals, including the initial public offerings of Facebook, Twitter and Alibaba, died suddenly on Wednesday. Jamie Dimon paid tribute to Lee, saying he was “was a master of his craft“. (FT)

Uber disrupted Drivers for the ride-hailing service are employees, not independent contractors, so the company should pay their expenses. Uber lost a legal case in California that could set a new precedent elsewhere, putting the $40bn company’s business model at risk. Uber has always insisted it is not a regular taxi company because it does not own a fleet of cars, a factor that has helped keep a lid on costs. (FT)

The walled country Hungary plans to build a 175km-long security fence along its southern border with Serbia to stop the flow of migrants across the EU’s external border. Its foreign minister said it “cannot afford to wait any longer” while the EU seeks to agree a common approach to rising migration from the Balkans, Middle East and Africa. (FT)

Frozen forehead, double chin Allergan will spend $2.1bn on a biotech group that makes a treatment designed to shrink a flabby neck, after paying $70bn for the maker of Botox last year. Injectable cosmetics, which consumers pay for out of their own pockets, are becoming more attractive to pharmaceutical companies as drug prices come under pressure from insurance providers and the Affordable Care Act. (FT)

Microsoft clears its cache Former Nokia boss Stephen Elop will leave the tech company as part of an executive reshuffle, which reflects a move by Satya Nadella to shore up the company’s underperforming businesses. Close allies of former chief executives Steve Ballmer and Bill Gates will also be leaving. (FT)

US banknote to feature woman The world’s reserve currency is getting a bit of gender balance and the US Treasury is turning to the public to help it decide who should take the starring role. (FT)

Greek debt crisis

The Greek central bank took the unprecedented step of contradicting the government , saying that the country’s leaders should sign a deal offered two weeks ago or they would risk an “uncontrollable crisis” that could force Athens out of the EU. Still, investors don’t seem too worried about a default.

Jean-Claude Juncker, the European Commission president, earlier accused the Tsipras government of misleading Greeks about proposals by creditor institutions, in an increasingly bitter war of words ahead of Thursday’s finance ministers meeting. Here are the nastiest insults the two sides have flung (so far this week).

The FT has been debating the prisoners’ dilemma of this five-month stand-off. Giles Wilkes argues that this is not a prisoner’s dilemma “because none of the parties benefit from Grexit, no matter what the other one does.”

Today is the best chance for the two sides to forge a deal, but with hopes diminishing, here are the other meetings and deadlines coming up. You can keep track of what happens by heading here for the FT’s coverage of the crisis as it comes. (FT, Quartz)

It’s a big day for

Fitbit Shares start trading on the New York Stock Exchange today. The company clinched avaluation of $4.1bn after selling shares in an initial public offering. (FT)

Hong Kong Lawmakers rejected a proposal to change how Hong Kong chooses its chief executive, a Beijing-backed plan that set off huge protests nine months ago. About 30 pro-Beijing lawmakers staged a surprise walkout less than a minute ahead of the vote, leaving only eight lawmakers to vote in support of the reform. (SCMP)

Food for thought

Next seasons robotics Metallic colours are the new black with exoskeletons coming into fashion. The physical assistance they provide might give people a wider range of job options but could they open up a new area of legal dispute? Have you been injured by your shell suit? (FT)

Rejoice, denizens of the internet Turns out cat videos are not only big business – they’regood for you too. At least according to a study conducted by Indiana University, which found that watching, say, a cat in a shark costume ride a Roomba , “boosts viewers’ energy and positive emotions”. Let’s not over-analyse this. Let’s not even think about the methodology. Let’s just soak it in and call it a day. (WaPo, IU, YouTube)

Foxtons It’s the estate agent that people love to hate, notoriously aggressive even in a cut-throat industry. And yet people are excited when one turns up in their neighbourhood. As a competitor puts it, “If you have a name as a really ruthless, sharky bastard estate agent, a lot of people, when they come to selling their house, will think, ‘I want that ruthless, sharky bastard.'” (Guardian)

SoftBank: on hold Masayoshi Son’s ambition to use Sprint to disrupt the US telecoms market was derailed. Can he get his plan back on track? (FT)

Video of the day

China decouples from itself The decoupling of China’s shares from both the domestic economy and the rest of the emerging markets leaves little wiggle room for investors during the country’s economic adjustment from construction to consumption. (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:The United States Federal Reserve Board building is shown. REUTERS/Gary Cameron.