US and UK diverge on China, all change in Canada and insights into the fund management industry

The daily briefing “FirstFT” from the Financial Times.

While the UK is busy feting Xi Jinping during the Chinese leader’s pomp-filled state visit, the US is fretting that perhaps its biggest ally is making a grave mistake. “London is playing a dangerous game of tactical accommodation in the hopes of economic benefits, which could lead to more problems down the line,” according to one former Obama administration adviser.

For his part, Mr Xi said the visit would lift relations to a “new height”. The UK and China were now “increasingly interdependent” parts of “a community of shared interests ”, he told the Houses of Parliament. (FT)

In the news

All change in Canada Justin Trudeau’s Liberal party sealed a stunning victory in Canada’s general election, ousting Stephen Harper and his Conservatives from their near-decade reign. In his first press conference following the victory, Mr Trudeau announced that Canadian fighter jets would end air strikes against Isis in Syria and Iraq. (FT, The Guardian)

Ferrari races to $9.8bn valuation The luxury carmaker scored a near $10bn valuation as it completed a long-awaited US initial public offering. The Italian group, which is being spun off from Fiat Chrysler, raised $893m by selling 17.2m shares at $52 apiece. (FT)

‘Clock boy’ moves to Qatar A Muslim teenager from Texas, who was detained after his teacher mistook his homemade clock for a bomb, is leaving the US to study in Qatar. Ahmed Mohamed has been given a full scholarship for his secondary and undergraduate education in Qatar, just weeks after his case went viral. (BBC)

Tesla’s shares hit reverse The stock fell as much as 10 per cent — the most in eight weeks — after Consumer Reports said the company’s Model S had fallen from its recommended list because owners said it was not reliable. The magazine had earlier celebrated the car with an off-the-chart score of 103 on its 100-point scale. Meanwhile, GM is set to become the first US carmaker to launch a mass-market, long-range pure electric vehicle with the Chevy Bolt. (Bloomberg, FT)

Crédit Agricole pays $787m penalty The bank allegedly processed $32bn in transactions that violated US sanctions related to Iran, Sudan, Cuba and Myanmar. (FT)

Walmart’s embarrassing climbdown The retailer has withdrawn claims that some products it was selling were made in America after an investigation by US regulators. The Federal Trade Commission said on Tuesday that Walmart had taken voluntary steps “to prevent consumer deception” related to “Made in USA” logos that appeared on its products and website. (FT)

It’s a big day for

Marty McFly Keep an eye out for a flying DeLorean: the protagonist of the Back to the Futuretrilogy travelled to 2015 on October 21 in the second instalment. We still don’t have the hover boards, but the movie did get a few things — drones, for instance — right. (BBC)

Read more about upcoming events this week.

Food for thought

To live any other way was nuts In 1978, six people stole $6.25m in cash, along with jewels, from a cargo terminal at New York’s JFK airport in the biggest heist in the city’s history. It was dramatised in Martin Scorsese’s Goodfellas, and on Tuesday Vincent Asaro told a Brooklyn courtroom all about it and his other feuds, crimes and escapades. (NYT)

A plot twist in the soap opera Procter & Gamble has given the world many things: washing powder, disposable nappies and soap operas. Now it wants something in return: more time to prove that it should not be broken up despite slipping sales and market share. (FT)

Gun trade thrives in Jerusalem The Battle Club gun range in Jerusalem is awash with customers jostling to hear about different models of Glock handguns. The upsurge in demand follows a month of violence that has seen eight Israelis killed and more than 70 wounded in attacks by Palestinians wielding guns, knives, screwdrivers and other sharp objects, prompting the government to ease restrictions on licensing for firearms. (Vice News)

Russia’s barefaced blackmail Moscow wants to veto a planned IMF loan aimed at helping the recovery of Ukraine. The west must not let it succeed, argues the FT’s Martin Wolf. “Russia cannot be allowed both to ruin Ukraine and hold a veto over efforts to rescue it. It should be made clear that such uncooperative behaviour merits further tightening of sanctions.” (FT)

The floating city in the sky This month, thousands of residents of cities in southern China reported seeing a huge city hovering ominously in the sky. The phenomenon, caught on video, sparked a spate of conspiracy theories. However, meteorologists believe the apparition was a Fata Morgana: an optical illusion that distorts distant objects, caused by the warming of the atmosphere above land or oceans. (Quartz)

Video of the day

Fund management: fee wonderland Charley Ellis, author of Winning the Loser’s Game, explains to the FT’s John Authers how, almost uniquely, the fund management industry has managed to avoid competing on price. (FT)

This article is published in collaboration with FirstFT. Publication does not imply endorsement of views by the World Economic Forum.

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Image: A flag hangs from the Bank of China offices in the City of London. REUTERS/Toby Melville.