Good morning. As we speak we’re overlaying:

• Beijing’s retaliation towards Brussels’ EV tariffs

• Vietnam’s incentives for overseas traders

• Mushroom’s sculptural, surreal and barely creepy magnificence

However we begin with a scoop: PwC China has instructed shoppers it expects Chinese language authorities to hit it with a six-month enterprise ban that can begin as early as September, as a part of punishment over its audit of collapsed property developer Evergrande.

The motion towards PwC comes after China’s securities regulator in March mentioned Evergrande had inflated its mainland revenues by nearly $80bn within the two years earlier than the developer defaulted on its money owed in 2021, regardless of PwC’s China unit giving the accounts a clear invoice of well being.

The enterprise ban, which may include a big high quality, could be the hardest ever motion by Chinese language regulators towards a Massive 4 agency as Beijing steps up scrutiny over the function performed by auditors in monetary scandals.

Right here’s how the ban and high quality would disrupt operations on the agency.

Thanks for studying FirstFT. Do you could have any questions on PwC China or Beijing’s crisis-hit property sector? E-mail us at firstft@ft.com or hit “reply” and bear in mind to incorporate your title and the place you’re writing from. We’ll reply as many as attainable in a particular weekend version of the publication.

Right here’s what else I’m protecting tabs on right this moment:

• Rate of interest bulletins: South Korea and Turkey are anticipated to carry rates of interest regular once they meet right this moment.

• Jackson Gap Financial Symposium: US policymakers will collect for his or her annual assembly in Wyoming amid rising considerations in regards to the well being of the world’s largest financial system.

• Outcomes: Company earnings are anticipated from Australia’s Sonic Healthcare, Taiwan’s Fubon Monetary Holding Co., and China’s Ping An Insurance coverage Group, amongst others.

5 extra prime tales

1. China has launched an anti-dumping investigation into imported European dairy merchandise within the newest escalation of its commerce dispute with the EU. The transfer is Beijing’s strongest retaliation but towards Brussels’ tariffs on Chinese language electrical automobile imports.

2. 5 our bodies have been discovered by divers looking the wreckage of Mike Lynch’s superyacht Bayesian, which sank off the coast of Sicily. 4 our bodies have been pulled from the sunken yacht on Wednesday, a fifth physique was discovered however not but eliminated whereas a sixth individual stays lacking. After two days of struggling to discover a approach by way of particles, divers gained entry to Bayesian’s cabins with an underwater drone.

3. Sephora is slicing again its workforce in China as one among LVMH’s largest income mills struggles to achieve traction within the powerful mainland magnificence market. The cuts characterize lower than 3 per cent of Sephora’s China-based workforce, however they level to stress within the nation’s extremely aggressive and price-sensitive magnificence market.

4. Walmart offered its complete stake in Chinese language ecommerce large JD.com for $3.6bn, because the world’s largest retailer focuses on increasing its personal manufacturers within the nation. The US retailer disclosed in a submitting to the US Securities and Trade Fee that it had utterly disposed of its practically 10 per cent holding within the ecommerce firm. Ryan McMorrow has the complete story right here.

5. Federal Reserve officers final month signalled their readiness to start out slicing rates of interest at their September assembly within the face of slowing job progress and easing inflation. Learn extra from the minutes of their July assembly.

The Massive Learn

China has a big footprint in Africa due to its $1tn Belt and Highway Initiative, which affords to finance and construct infrastructure in largely poorer nations and provides it a bonus within the race for management of crucial minerals. However a $10bn US-backed railway illustrates Washington’s want to compete with Beijing in Africa.

We’re additionally studying . . . 

Chart of the day

Western traders have piled again into gold as they place for US rate of interest cuts this 12 months, serving to to drive costs to document highs this week. Costs reached $2,531 per troy ounce in buying and selling yesterday, taking gold’s good points for the 12 months to greater than a fifth, boosted by purchases by institutional traders and bullish hedge fund bets.

Take a break from the information

Have you ever ever thought out rising mushrooms for his or her aesthetic enchantment? These pink oyster mushrooms would possibly make you contemplate it.

Extra contributions from Tee Zhuo and Melody Abike Adebisi