FirstFT: A defiant Johnson sacks former ally

Boris Johnson’s turbulent three-year premiership was nearing its end on Wednesday night after he was urged to quit by a delegation of his closest cabinet allies on a night of chaos in Downing Street.

As his premiership hung by a thread, Johnson retaliated by sacking Michael Gove, one of the ministers who told the prime minister to go, according to allies of the levelling up secretary.

The UK prime minister was warned that unless he stepped down there would be further cabinet resignations, followed by an inevitable humiliating defeat by Tory MPs in a no-confidence vote next week. Gove had been the first minister to tell Johnson to step down. One individual with knowledge of the conversation said: “Michael essentially told him that it’s time to go — it’s over.”

But Johnson told ministers he would fight on, effectively daring them to resign, and warned that if he quit there would be a chaotic Tory leadership contest in the midst of an economic crisis.

Johnson’s power drained away during the course of a dramatic day, which saw more than 35 government resignations and many more Tory MPs denounce his character and integrity.

Read more

• Inside Westminster: An inside look at how the mood at Westminster quickly turned against Johnson

• Johnson’s possible successors: These six key contenders are expected to launch bids to succeed the prime minister as Tory leader.

• Who’s already left?: Here’s our running list of UK officials who have quit since Tuesday evening — and their messages to Johnson.

• FT View: The departure of Boris Johnson is long overdue, writes our editorial board.

Thanks for reading FirstFT Asia and here is the rest of today’s news — Emily

Five more stories in the news

1. US and UK intelligence chiefs call for vigilance on China The heads of the FBI and MI5 have warned that China’s industrial espionage poses a growing threat to western groups, including through special purpose acquisition companies. In a joint appearance in London, the chiefs of the US and British intelligence agencies called on companies to be much more vigilant about China.

2. Hong Kong’s biggest IPO of 2022 Tianqi Lithium, a Chinese supplier of key components in rechargeable batteries, has priced its Hong Kong share offer near the top of an expected range to raise about $1.7bn, in the city’s biggest listing this year.

3. South Korean effort to compensate wartime slave labourers The country has launched an initiative to resolve longstanding compensation claims from the victims of Japanese wartime forced labour practices. The “government-private consultative body” marks a concerted effort by South Korea’s conservative administration to repair the countries’ rocky relationship.

4. Ben & Jerry’s sues owner Unilever over sale of Israel licence The maker of Cookie Dough and Phish Food ice cream filed a suit in a New York court late on Tuesday to block Unilever selling its Ben & Jerry’s brand in Israel to a local licensee, saying operating in the occupied territories conflicted with the group’s “core values”.

5. Meta pushes ahead with digital collectibles Facebook’s parent is moving forward with plans to roll out access to non-fungible tokens to its 3bn users despite the crash in crypto asset prices, the company’s new head of fintech has told the Financial Times. Stephane Kasriel said the company would not “in any way” adjust its plans concerning so-called non-fungible tokens which it hopes will appeal to young people.

The day ahead

Hajj begins After a two year hiatus because of the pandemic, Saudi Arabia will again welcome international pilgrims to perform the annual ritual. One million people are expected to attend. (Al Jazeera)

G20 foreign ministers meeting Officials will gather in Bali today. Russian Foreign Minister Sergei Lavrov is expected to attend despite the sanctions that some G20 nations have imposed on Russia. (Reuters)

Samsung pre-earnings guidance The South Korean company will issue its expectations for second-quarter earnings, which will be released later this month. The guidance comes amid signs the global chip shortage is slowing. (NYT)

What else we’re reading

Fumio Kishida’s ‘golden’ chance to reform pacifist constitution On the surface, Sunday’s upper house election appears to be about the economy and soaring commodity prices that have squeezed living standards. But experts said the outcome could have profound consequences for Japan’s security and defence strategy — and might even open the way for a revision of its war-renouncing constitution.

Qatar comes out on top The Gulf state has built an outsized role in global commodity markets since it began exporting liquefied natural gas more than two decades ago. Now, following Russia’s invasion of Ukraine and several deals to develop a gasfield, Qatar’s influence is set to grow.

Will the crypto crash derail the next web revolution? This year’s market collapse — part of a broader retreat from risky financial assets in the face of rising interest rates — could seriously weaken the incentives that have made crypto one of the hottest corners of the tech world. Web3, a new generation of user-controlled online services that supporters believe will dethrone today’s internet giants, are now at risk.

Why the yen is down but not necessarily cheap Investors should be wary of arguments that imply the yen is grossly undervalued. These fail to take into account structural changes in Japan’s economy that have fundamentally altered the trading backdrop for the yen, writes JPMorgan’s Benjamin Shatil.

Congo president warns of risk of war with Rwanda Félix Tshisekedi told the Financial Times that conflict could break out unless his country’s neighbour stopped backing rebel groups fighting in the east. The president’s comments followed a strong offensive in eastern Congo by the M23 militia, which he said was backed by Rwanda.

Fashion

What does one wear to the office when it’s too hot to wear anything? Whatever you do, do not succumb to those tempting shapeless linen dresses that look like a discarded dishcloth at the end of the day. They do nothing for anyone, writes style columnist Anna Berkeley.