Russian military files reveal nuclear response strategy

Good morning. Here's what happened overnight and what you need to know today.

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1.

Nuclear options: Classified papers show that Vladimir Putin’s forces have practiced using tactical nuclear weapons at an early stage of conflict with a major world power. Leaked documents seen by the Financial Times describe the threshold for the country to use tactical nuclear weapons, which is lower than Russia has previously disclosed. The training scenarios described in the papers include a possible invasion by China. The collection of 29 Russian military files were written between 2008 and 2014, and outline a number of criteria for potential nuclear response, ranging from enemy incursion on Russian territory to the destruction of 20% of the country’s strategic ballistic missile submarines. (Financial Times)

2.

Share sale: Payments fintech Stripe is set to reach a USD65 billion ($100.1 billion) valuation, as it prepares a share sale for its employees to cash out more stock. According to unnamed sources cited by the Wall Street Journal, Stripe and some of its investors agreed to buy over USD1 billion of current and former employees’ shares. The new valuation is up from its USD50 billion valuation reached last year, but still down on its peak 2021 of USD95 billion. While the majority of funds for the tender offer are being provided by investors, the company said Stripe will also use a portion of its own capital to repurchase shares to offset dilution. Sequoia Capital and Goldman Sachs’ growth equity fund are reportedly among the participating investors. (Stripe Press Release)(Wall Street Journal)

3.

Streaming wars: India’s Reliance Industries and Walt Disney have announced a merger of their India TV and streaming assets, to create an USD8.5 billion entertainment giant. On completion, the JV will be controlled by Reliance who will own 16.45% of shares while Viacom18 will hold 46.82%. Disney will hold the remaining 36.84% of shares. Reliance will invest USD1.4 billion into the JV for its growth strategy. The companies announced that the joint venture will combine the Viacom18 and Star India businesses, and will bring together over 750 million viewers across India while also catering to the international Indian diaspora. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets. (The Walt Disney Company Press Release)(Reuters)

4.

Property crunch: Chinese developer Country Garden has been hit by a winding up petition by a Hong Kong creditor, adding to a mounting pile of legal action that could start a domino of liquidations across the country’s property sector. The petition was filed by Ever Credit and cited non-payment of a USD204 million loan facility plus accrued interest. The beleaguered developer which used to be the country’s largest, missed interest payments on offshore bonds mid-last year, leading to its default in October, underscoring the growing pressure on China’s property market. Country Garden is still negotiating a restructuring agreement with international creditors and plans to oppose the latest petition. (Financial Times)

5.

US politics: Mitch McConnell will step down as the Senate Republican leader in November, after almost two decades in the role. At 82, McConnell is the longest-serving Senate leader in US history, and plans to serve out his term which ends in January 2027, “albeit from a different seat in the chamber.” McConnell has been at odds with the Trump-aligned wing of the GOP, stemming from his refusal to adopt the position that Biden’s election in 2020 was the product of fraud. His age and sometimes stilted responses have also garnered McConnell negative press. Trump resolutely defeated rival Nikki Haley in the Michigan Republican primary on Tuesday with 68.1% of the votes to her 26.5%. (Associated Press)(CNN)

6.

Egyptian appeal: BP will invest around USD1.5 billion in Egypt over the coming three to four years, according to information viewed by Bloomberg, in order to develop gas projects and drilling. The investment comes after the oil and gas major announced it plans to form a gas-focused joint venture with Abu Dhabi National Oil Co (ADNOC) in Egypt last month, with BP owning 51% to ADNOC’s 49% of the JV. BP is set to continue holding around 70% of its existing interests in the country outside the ADNOC JV. Egypt’s gas production has fallen dramatically as domestic output has been hit by natural declines at its gas fields. The European Union also announced on Wednesday that its latest tender to buy gas jointly was three-times oversubscribed by international firms. (Bloomberg)(European Commission Press Release)

7.

Sky high: Bitcoin has broken through the USD60,000 mark for the first time in over two years, inching closer to its all-time high of USD67,7000 in November 2021. The cryptocurrency rose 6% during trading overnight and is up 36% since the beginning of the year. The SEC’s approval of spot Bitcoin exchange traded funds in the US earlier this year has buoyed Bitcoin’s market value. Additionally, Bitcoin’s fourth halving event in April is attracting investor attention, as the currency’s value has historically surged following halving events. (Reuters)

8.

Clock is ticking: Boeing has been given a 90-day ultimatum by the Federal Aviation Administration to devise a plan to fix “systemic quality-control issues.” The order comes just two months after a door panel blew out of a Boeing 737 Max-9 mid-flight, as a result of missing bolts. “Boeing must commit to real and profound improvements,” FAA Administrator Mike Whitaker said. “Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way.” Earlier this week, an expert panel’s report on Boeing found a disconnect between the manufacturer’s senior management and employees on safety culture. The FAA expects Boeing to incorporate the findings of the expert review panel in its report. (FAA Press Release)(Reuters)