In the present day’s agenda: Rising-market currencies dump; Nasdaq board variety guidelines thrown out; FBI director steps down; weight-loss medication’ potential makes use of; and a festive pie recipe

Good morning. We begin with an unique story on Nato. Individuals concerned in early confidential talks have instructed the Monetary Occasions that the alliance’s European members are weighing a rise of defence spending targets, from the present 2 per cent of GDP to three per cent by 2030. Right here’s what we all know.

Why that is underneath dialogue: The talks, forward of Nato’s annual summit subsequent June, are partly in anticipation of Donald Trump’s return. In his first presidency, Trump used Nato’s 2018 summit to demand extra spending or threat the US leaving the alliance. That, and a realisation that present spending ranges are usually not sufficient to help Ukraine in opposition to Russia, has compelled capitals to tackle board the dimensions of under-investment.

The impression on European budgets: The steep rise would put intense stress on international locations with already strained nationwide budgets, together with in France, Germany and the UK, and has raised misgivings in lots of capitals. Seven European Nato members nonetheless fail to fulfill the present 2 per cent benchmark agreed a decade in the past. Italy, which has already damaged the EU’s public deficit guidelines, spends 1.49 per cent and has pledged to succeed in 2 per cent by 2028. Spain is on the backside with 1.28 per cent and has sought to dilute the give attention to the goal. Extra particulars on the key talks right here.

• EU-UK ties: Prime Minister Sir Keir Starmer will right this moment settle for an invite to carry talks on defence co-operation with the bloc, within the first such assembly since Brexit.

Right here’s what else we’re retaining tabs on right this moment:

• Financial information: The Worldwide Power Company publishes its month-to-month oil market report, whereas the US has its producer worth index.

• EU: The bloc is about to formally approve the accession of Romania and Bulgaria to its Schengen free motion space, whereas the European Central Financial institution is anticipated to lower rates of interest in its determination right this moment.

• Mahmoud Abbas: The Palestinian president begins a two-day go to to Rome, the place he’ll meet Italian Prime Minister Giorgia Meloni and Pope Francis.

Be part of business leaders and policymakers in Brussels or on-line this morning for the FT’s Tech Management Discussion board with Join Europe, as they focus on the right way to develop Europe’s digital financial system. Register right here.

5 extra high tales

1. A surging US greenback and a “confluence of dangerous information” have sparked the most important sell-off in emerging-market currencies for the reason that early levels of the Federal Reserve’s aggressive rate-raising marketing campaign two years in the past. The decline has been broad, with a minimum of 23 currencies tracked by Bloomberg falling in opposition to the greenback this quarter. Learn the total story.

• US inflation: Client costs rose 2.7 per cent final month, matching Wall Avenue’s forecasts and clearing the best way for an anticipated fee lower subsequent week.

2. A US courtroom has thrown out guidelines requiring Nasdaq-listed firms to have boards meet sure racial or gender variety standards or clarify why they didn’t. The appeals courtroom’s majority mentioned the Securities and Trade Fee mustn’t have signed off on the foundations. Right here’s extra on the most recent blow to the range, fairness and inclusion motion.

3. Christopher Wray will step down as FBI director earlier than Donald Trump is sworn in subsequent month. The announcement comes lower than two weeks after the president-elect nominated Kash Patel to guide the company. The controversial decide has pledged to stamp out the “deep state” and defended far-right conspiracy theories. Extra particulars right here.

4. Iran has sought to place a courageous face on the sudden overthrow of its Syrian ally Bashar al-Assad, even because it evacuated 1000’s of its residents through the insurgent takeover of Damascus. Ayatollah Ali Khamenei, Iran’s supreme chief, mentioned yesterday that its allies would “develop stronger underneath stress” and “lengthen [their] attain over your complete area”.

• Syrians in Europe: Amid rising calls to return to their homeland, refugees in Germany and elsewhere are in a “wait and see” mode.

5. Certainly one of Thailand’s richest households believes it overpaid in its $4bn acquisition of Selfridges and a handful of different luxurious department shops in Europe in 2021. Tos Chirathivat, govt chair of household conglomerate Central Group, instructed the FT that given elevated rates of interest globally, the worth was “excessive” in hindsight.

The Large Learn

So-called GLP-1 medication similar to Ozempic and Wegovy have helped remodel the waistlines of sufferers and the highest traces of pharmaceutical teams. However past their authentic give attention to weight problems and diabetes, GLP-1 remedies might additionally doubtlessly be used for dependancy, coronary heart illness and Alzheimer’s. Decrease-priced orally administered medication might assist sort out the rising tide of power illnesses and decrease prices for public well being programs.

We’re additionally studying . . . 

• Murdoch feud: A courtroom ruling that rejected Rupert Murdoch’s try and overhaul the household belief has left him and his youngsters in a bitter stalemate.

• UK farming: James Dyson’s latest challenge, which makes use of robots to choose strawberries, is bringing much-needed new considering to the business, writes John Gapper.

• Nigel Farage: Assist for Reform UK is rising quick, however can he flip the rightwing populist celebration right into a critical contender for presidency? 

• David Bonderman: The non-public fairness pioneer who co-founded TPG and led the buyout of Continental Airways has died at 82.

Chart of the day

Is the market financial system and open commerce in international retreat? Most international locations aside from the US have chosen a mannequin the place even intensive state intervention is especially stored behind the border, writes Alan Beattie.

Take a break from the information

This recipe for rooster and champagne pie comes from the menu of Bob Bob Ricard, the flamboyant London restaurant recognized for its “press for champagne” button at each desk. A splash of bubbly transforms the dish from good to glamorous, writes Harriet Fitch Little.