FirstFT: India warns citizens over travel to Canada

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Good morning. India has warned its citizens to “exercise utmost caution” if travelling to Canada, amid a crisis in bilateral relations over the killing in June of a Canadian Sikh. 

India’s warning, which it said was prompted by Canada’s “deteriorating security environment”, came after Prime Minister Justin Trudeau said on Monday there were credible allegations that Indian agents were involved in the murder of Sikh activist Hardeep Singh Nijjar.

The government of Prime Minister Narendra Modi has rejected as absurd Canada’s allegations of its possible involvement in the killing of Nijjar, a campaigner for the creation of an independent Sikh state who had been designated as a terrorist by New Delhi.

The dispute has resounded in Canada — a country with one of the world’s largest Indian diaspora populations — and placed the two countries’ allies in a delicate spot at a time when India is becoming an increasingly valued partner for the US and other western democracies seeking to counter China. The FT’s John Reed reports from New Delhi.

Here’s what else I’m keeping tabs on today:

• Monetary policy: The Bank of England announces its interest rate decision, a day after inflation figures showed prices rose less than expected in August. The Bank of Japan begins a two-day meeting ahead of its own interest rate announcement on Friday.

• Volodymyr Zelenskyy in Washington: Ukraine’s president is expected to ask for more military aid during a visit to the US capital.

• Books: The Financial Times Business Book of the Year shortlist will be announced.

Join Martin Wolf, FT China watchers and UBS China economist Tao Wang for a subscriber-only webinar on China’s economic slowdown today at 11am GMT +1. Register for free here.

Five more top stories

1. Federal Reserve officials on Wednesday signalled support for another rate rise this year and fewer cuts in 2024 even as the US central bank held its benchmark interest rate steady at a 22-year high. The Federal Open Market Committee said it remained “highly attentive to inflation risks”, noting that economic activity had been expanding at a “solid pace” and that jobs gains, while slower, were “strong”. Here’s more on the Fed’s latest meeting.

2. WhatsApp has launched its in-chat payments service for businesses in India. Hundreds of millions of WhatsApp users in India will be able to pay for products and services through the chat app, as its parent company Meta seeks to generate more revenue from the messaging service in its biggest market.

3. Global investment banks are eyeing expansion in India, attracted by robust economic growth and the desire to reduce exposure to China amid tensions with the US. “It’s almost impossible for an international bank to ignore India,” said Debasish Purohit, co-head of India investment banking at Bank of America. Read the full story.

4. Goldman Sachs has raised more than $15bn to buy investors’ stakes in private equity funds and invest in deals where buyout groups sell portfolio companies from one of their funds to another. The fundraise is the latest sign of sustained support for the fast-growing “secondary” strategy amid a broader slowdown in buyout fundraising. The FT’s Will Louch reports.

5. Amazon is looking to tap generative AI to reignite excitement about its home devices, including the Alexa voice assistant, against a backdrop of job cuts in the company’s hardware division. Generative AI would “drive an entirely new Alexa experience” and usher into life a “smarter and more conversational” voice assistant, Amazon’s head of devices, Dave Limp, said on Wednesday. Here are more details on the AI-driven upgrades.

Deep dive

The green transition is fuelling increasing demand for rare earths in Europe. Although they are found across the world, no country has exploited these minerals like China, which accounted for 70 per cent of rare-earth mining production last year. With the EU almost entirely dependent on the country for the supply and processing of rare earths, can Europe go green without China? The FT’s visual team investigates.

We’re also reading . . . 

• Corporate malfeasatainment: Could the downfall of a second-hand car dealer prove restorative for Japan’s psyche?

• In defence of the UN: The organisation badly needs reform. But Gillian Tett still believes the world would be worse off today without it.

• Afro-Indian trade: The recent G20 summit in New Delhi brokered permanent membership for the African Union, presenting a huge opportunity for both Africa and India.

Chart of the day

Analysis of the main chip inside Huawei’s Mate 60 Pro smartphone reveals that the Chinese company has joined the elite group of Big Tech companies — including Apple — capable of designing their own semiconductors. Facing US sanctions, the breakthrough will help the Chinese company to reduce its reliance on foreign technology.

Take a break from the news

Latin reggaeton superstar J Balvin has teamed up with Australian-born museum director Melissa Chiu to bring art — and mental health awareness — to Gen Z.

Additional contributions from Tee Zhuo and Gordon Smith