FirstFT: Truss to shake up the City

Good morning. Liz Truss, the frontrunner to become the UK’s next Prime Minister, has the City of London’s top regulators in sightare planning an immediate review of their roles and responsibilities if they win, according to campaign insiders.

The Secretary of State, who is 32 points ahead of former Chancellor Rishi Sunak in the latest survey of conservative party members, is considering merging the Financial Conduct Authority, the Prudential Regulation Authority and the Payments Systems Regulator.

A well-placed financial services executive said Truss was privately critical of the FCA, which this year faced union action for the first time under new chief executive Nikhil Rathi, seeking to overhaul financial regulations as part of “a wider war on technocrats.” and officials.

The plans would represent the biggest shock to the UK’s critical financial regulatory authorities in more than a decade. Truss’ leadership campaign declined to comment on the proposals, but a campaign insider confirmed it would review the organizations.

“No decisions have been made about the future of regulators. Liz will look at their role as part of a review. It is clear that there has not been enough focus on economic growth” — a campaign official

Five more stories in the news

1. Fed Minutes Signal Restrictive Rates To Stay Federal Reserve officials discussed the need to keep interest rates at levels that constrain the U.S. economy “for some time” to contain the highest inflation rate in about 40 years, according to the minutes of their July meeting when U.S. central bankers implemented a second consecutive 0.75 percent rise in the points price.

2. Quant Funds Increase Bets on US Stocks Quant funds, which try to follow the momentum of market trends, are increasing bets on US equitiessparking a rally that has added $7 trillion in value since June, even as data points to a slowdown in the world’s largest economy.

3. UK inflation hits 40-year high of 10.1% UK consumer price inflation, driven by higher food prices, rose from 9.4 per cent in June to 10.1 per cent in July, the highest level since February 1982 and the first double-digit annual increase in more than four decades.

4. PwC’s UK partners pay £1million for the first time The partners of the Big Four accounting firms were: paid over £1 million on average supported for the first time last year by a one-third jump in advisory revenues and the sale of some of its business. But PwC warned that inflation and rising wages would likely lower partner wages this year.

5. Japanese Alcohol Advice: Please Drink More The unorthodox, government-backed “Sake Viva!” The contest calls on people aged 20 to 39 to help revitalize an industry hit by demographic change, the pandemic and long-term decline in consumption that has led to tax revenue declines.

How can Japan entice younger citizens to drink more alcohol? Share your suggestions with me on firstft@ft.com. Thanks for reading FirstFT Europe/Africa — Jennifer

the next day

British transport strikes More than 50,000 members of the Rail Maritime and Transport, Unite and Transport Salried Staffs Association unions will walk out across the country because of wages, job cuts and work practices.

Serbia and Kosovo meet Serbian President Aleksandar Vučić and Kosovo Prime Minister Albin Kurti will hold joint talks in Brussels with EU foreign policy chief Josep Borrell on a roadmap to resolve tensions under the threat of conflict.

Opinion: The EU and NATO play a crucial role in preventing Russia from exploiting regional rivalries, writes Misha Glenny, Rector of the Institute of Human Sciences in Vienna.

Economic data Egypt’s Central Bank Holds Monetary Policy Meeting After Governor Tarek Amer Resigned; his replacement has not been named. EU and Canada release inflation figures for July, while US initial jobless claims are up prediction increased slightly last week. (FT, WSJ)

UK exam results day Students in England, Wales and Northern Ireland will receive their A-level and vocational exam results, which are expected to be lower than last year but higher at pre-pandemic levels. Examining body AQA has said papers would be more generously reviewed to reflect the return to normal testing conditions.

Corporate Profits Electricity retailer AO World reports full-year results as it tries to shift its business model from revenue growth to building and maintaining margins, with an economic slowdown dampening sales demand. Other companies reporting include Estée Lauder, Hella and Kohl’s.

What else do we read

The Village Marriage Caught in the Taliban’s Struggle for Kabul In August 2021, people in Dost Kol — a hamlet in the hills an hour west of Kabul — were preparing to celebrate Mohammad Ullah’s wedding to a bride from a neighboring village. But the next 24 hours brought tragedy.

Sardar Mohammad points to the hole in the window made by the bullet that killed his eight-year-old daughter Basmeena © Oriane Zerah

Central bank independence is declining In the US, UK and Turkey, politics is gaining power over central banks, writes economics editor Chris Giles. Still, if Liz Truss becomes UK Prime Minister, she has a chance to improve the country’s monetary policy – and the responsibility of the Bank of England.

France’s magnificent rusting giant The coat of paint that the Eiffel Tower will receive for the 2024 Olympics can hardly hide the fact that it is rusting. Parisian bureau chief Victor Mallet assesses the wear and tear on France’s preeminent symbol – and explains why Parisians can wait ten years for proper repairs.

Neighborhood apps are great, but IRL is better At the height of the pandemic, use of the online forum Nextdoor, which connects people by location, increased by 80 percent worldwide. But only online interactions are definitely missing something important, argues Cristina Criddle.

Beware of patronizing the marginalized How would you feel if you were told, by someone who knew very little about you, that you must have been a victim of oppression because of your unchanging physical characteristics? Treating people as victims robs them of agency, writes Jemima Kelly.

Eat Drink

Ravinder Bhogal presents a menu that tastes like Sicily, from caponata to pasta with sardines and apricot-ricotta cake, all borrowed from a baptism she dropped this summer.

Gastronomically speaking, Sicily is the meeting place of at least two great traditions, the Arab and the Southern Italian © Aaron Graubar