Global Economy updates
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Goldman Sachs has become the last of the big US investment banks to raise salaries for junior staff in response to complaints about burnout from new recruits caught in a dealmaking boom during the pandemic.
First-year analysts will now earn a base wage of $110,000, rising to $125,000 in their second year, according to people familiar with the decision. Those at the more senior associate rank will receive a boost to $150,000.
The figures do not include annual bonuses, which can be multiples of salaries in buoyant years.
Goldman declined to comment.
The increases mean that Goldman will have one of the most generous starting pay packages in the industry, having previously paid junior bankers less than their peers, according to Wall Street Oasis, a website that tracks pay.
Five more stories in the news
1. Square to acquire Australia’s Afterpay for $29bn Jack Dorsey’s payments company Square has reached a deal to acquire Australian “buy now, pay later” provider Afterpay in a $29bn all-stock transaction that would be the largest takeover in Australian history. Read more in today’s #fintechFT newsletter. You can sign up here.
2. Chinese stocks rise, US government bonds rally Calls from Beijing for greater co-operation with Washington calmed investors’ nerves on Monday after the worst month in almost three years for Chinese stocks. In the US, government bonds rallied, reflecting mounting concern over decelerating economic growth.
3. Grab battles effects of pandemic ahead of New York listing Grab, the south-east Asian company behind the world’s biggest merger with a “blank cheque” group, has reported slower growth as it grapples with continued coronavirus-related disruption ahead of its delayed $40bn New York listing.
4. Japan calls for greater attention to ‘survival of Taiwan’ Nobuo Kishi, Japan’s defence minister and younger brother of former prime minister Shinzo Abe, has called on the international community to pay greater attention to the “survival of Taiwan” as he warned that China’s military build-up was enveloping the island. Read our full interview with Kishi.
5. Tories defend fundraising amid donor controversy The UK’s Conservative party on Monday hit back at accusations it has offered privileged access to senior ministers in return for large donations, claiming that the Labour party has its own arrangements for offering special access.
Tokyo Olympics round-up
Belarusian sprinter Krystsina Tsimanouskaya has taken refuge in Poland’s embassy in Japan after alleging she had been taken to the airport against her will having criticised her country’s coaches.
New Zealand weightlifter Laurel Hubbard became the first openly transgender athlete to compete in an Olympics.
The US women’s soccer team lost their semi-final 1-0 to Canada. “We just didn’t have it today,” said US star player Megan Rapinoe.
Simone Biles will return to competition in the women’s balance beam event final on Tuesday, USA Gymnastics said.
How have Russian athletes been regularly featured on podiums as medal winners even though Russia has been banned from the Olympics? FT’s Murad Ahmed and Max Seddon explain. (FT, BBC)
Add ‘Tokyo Olympics’ to myFT for all our coverage from the Games, and don’t miss our “alternative medals table”.
China is rushing to control its first widespread appearance of the Delta variant amid its worst coronavirus outbreak in more than a year.
The US has administered at least one dose of a Covid-19 vaccine to 70 per cent of adults, reaching the milestone almost one month later than planned. Lindsey Graham became the first vaccinated senator to test positive for Covid-19.
The airline industry’s optimism is slowly spreading as the highest number of planes take flight since the start of pandemic.
European governments are resorting to imaginative ways to increase vaccination rates: France is suspending health workers who refused to get inoculated without pay, while one German town is giving out free Bratwurst. (FT, AP)
Sign up for our Coronavirus Business Update newsletter and follow the latest developments on our live blog.
The day ahead
Reserve Bank of Australia The central bank will hold its monthly meeting today as it faces a resurgence of coronavirus and the prospect of needing to walk back earlier comments about tapering monetary stimulus. (Bloomberg)
UK quarterly GDP data Great Britain will release second-quarter gross domestic product figures today. Last month, data showed that the UK’s economic recovery slowed significantly in May. (Reuters)
Raisi takes power in Iran Iran’s new president Ebrahim Raisi will assume power on Tuesday at a time of huge challenges for the Islamic republic, shaken by recent protests over water and electricity shortages and readying itself for more talks over the revival of its nuclear deal with global powers.
What else we’re reading, watching and listening to
China’s young ‘lie flat’ instead of accepting stress A trend among young Chinese to opt out of stressful jobs, represents the antithesis of the country’s development model that has delivered extraordinary growth over four decades. As China’s young put the “996” — 9am to 9pm six days a week — work schedule on notice, Beijing is more than a little perturbed. (FT, NYT)
Electric cars and the search for a circular economy The cobalt that goes into electric vehicle batteries can travel more than 20,000 miles from the mine to the automaker before a buyer places a “zero emission” sticker on the bumper. JB Straubel, the man considered the brains behind Tesla, is betting big that the circular economy can give EVs a more sustainable future.
Weary Tunisians welcome president’s power grab Tunisia’s president Kais Saied provoked a political crisis when he fired the prime minister and suspended parliament for 30 days. While opponents have accused Saied of bringing back one-man rule, many Tunisians consider him a saviour after seeing their standards of living plummet since the 2011 revolution.
Lunch with the FT: mathematician Hannah Fry The author-broadcaster talks to John Thornhill about the limitations of artificial intelligence, how to teach Boris Johnson about exponential growth and how a cancer diagnosis made her reassess risk.
Listen: In the latest episode of the Tech Tonic, John asks whether AI’s potential in the fight against the climate crisis justifies the massive amounts of energy it takes to run these systems.
Plant-based milk vs conventional dairy More and more consumers are turning to non-dairy alternatives for milk. But as Judith Evans reports, plant-based products have some way to go to match the popularity, nutrients and earnings of traditional cow’s milk, which continues to cream the largest profits.
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