This article is an on-site version of our FirstFT newsletter. Subscribers can sign up to our Asia<\/a>, Europe\/Africa<\/a> or Americas<\/a> edition to get the newsletter delivered every weekday morning. Explore all of our newsletters here<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n Good morning and welcome back to FirstFT Asia. In today\u2019s newsletter:<\/p>\n Masayoshi Son floats idea of a US-Japan sovereign wealth fund<\/p>\n<\/li>\n China\u2019s cost-conscious tourists flock to Hong Kong<\/p>\n<\/li>\n The pride and pain of Japanophilia<\/p>\n<\/li>\n<\/ul>\n SoftBank founder Masayoshi Son has floated the idea of creating a joint US-Japan sovereign wealth fund to make large-scale investments in tech and infrastructure across the US. <\/p>\n What we know:<\/strong> The idea has been raised at very high political levels in Washington and Tokyo, including in discussions between Son and US Treasury secretary Scott Bessent. The plan has not yet crystallised into a formal proposal, though the idea has come up several times in recent weeks as Japanese negotiators and the Trump administration edge towards a trade deal.<\/p>\n How the fund could work:<\/strong> Under the suggested wealth fund structure, the US Treasury and the Japanese ministry of finance would be joint owners and operators of the fund, each with a significant stake. They would then open the vehicle to other limited partner investors, and could potentially offer ordinary Americans and Japanese the chance to own a slice. <\/p>\n One person familiar with the discussions said that to be effective in its investment ambitions the fund would have to be \u201cenormous\u201d \u2014 with potentially $300bn in initial capital and then heavily leveraged.<\/p>\n What is the appeal of a joint fund?<\/strong> \u201cThe theory is that Bessent is looking for revenue streams for the Treasury that do not involve raising taxes, and however far out this joint fund may sound, it would in theory provide that,\u201d said one person briefed on the situation. The person added that Japan wanted \u201ca properly governed covenant that protects Japan from the ad hoc decisions of Oval Office politics\u201d. <\/p>\n Read more about Son\u2019s joint fund idea<\/a>.<\/p>\n Here\u2019s what else I\u2019m keeping tabs on today:<\/p>\n Economic data:<\/strong> Singapore publishes the April industrial production index.<\/p>\n<\/li>\n Country Garden:<\/strong> The Chinese developer has a winding up hearing scheduled for today in Hong Kong\u2019s High Court.<\/p>\n<\/li>\n South-east Asia:<\/strong> The 46th Asean Summit begins in Kuala Lumpur, Malaysia.<\/p>\n<\/li>\n<\/ul>\n 1. US oil executives are warning that a decade-long shale boom is ending,<\/strong> as Trump\u2019s tariffs push up costs and falling crude prices squeeze profits. Oil companies are cutting spending and idling drilling rigs<\/a>, while analysts slash output forecasts, despite the US president\u2019s pledge to \u201cunleash\u201d production. <\/p>\n 2. US pressure on Latin America to cut trade with China could lead to economic disaster<\/strong> because the region is so dependent on trade with Beijing, according to the outgoing head of the Organisation of American States. Luis Almagro, secretary-general of the political forum for the past decade, told the FT that \u201cthe worst thing that can happen to Latin America is to be forced to choose\u201d between the US and China. Read the full interview<\/a>.<\/p>\n 3.<\/strong> The EU is ready to advance trade talks with the US \u201cswiftly and decisively\u201d<\/strong> but needs Trump to return to his original 90-day negotiation period, European Commission president Ursula von der Leyen said yesterday after a call with the US president. The discussion came two days after Trump said he would impose 50 per cent tariffs on EU imports from June 1. Here\u2019s more on the \u201cgood call\u201d between the two leaders<\/a>.<\/p>\n 4. Russia has carried out its largest aerial attack on Ukraine,<\/strong> shattering any hopes that a record prisoner exchange completed yesterday could lead to a cessation of hostilities. At least 12 people were killed and dozens more injured in Sunday\u2019s overnight attack, which the Ukrainian air force said was the single-largest aerial assault of the war so far<\/a>.<\/p>\n 5. Movie fans flocked to see Disney\u2019s <\/strong>Lilo and Stitch<\/strong><\/em> and the eighth instalment of Paramount\u2019s <\/strong>Mission: Impossible<\/strong><\/em> franchise,<\/strong> giving Hollywood hope for a return to box office growth after years of disappointment. Cinemas in North America raked in more than $260mn through Sunday<\/a>, setting a record for the Memorial Day holiday weekend.<\/p>\n Join us for a subscriber-only webinar on Wednesday for insights into the most consequential geopolitical rivalry of our time: the US-China showdown. <\/em>Register now and put questions to our panel.<\/em><\/a><\/p>\n Chinese tourists are flocking to Hong Kong, but beneath the rising number of visitors from the mainland (34mn last year), the city\u2019s tourism industry is struggling. Chinese tourists are spending less \u2014 with some preferring to eat and sleep across the border in neighbouring and cheaper Shenzhen \u2014 squeezing revenues for the Asian financial hub\u2019s retail, restaurant and hotel sectors. The rise of cost-conscious day-trippers marks a \u201cstructural shift\u201d among mainland Chinese travellers<\/a>, economist said.<\/p>\n Last year, as the overall mainland beer market shrank in China, Heineken\u2019s sales volumes increased nearly 20 per cent to just under 700mn litres \u2014 almost enough to serve a pint to everyone in the country. The Dutch lager maker is using its partnership with China Resources Beer, China\u2019s biggest brewer, to push into the country\u2019s growing premium market<\/a>.<\/p>\n As a surge in travel to Japan has led to complaints of overtourism, the FT\u2019s Tokyo bureau chief Leo Lewis writes about the \u201cpride and pain of Japanophilia\u201d<\/a>. <\/p>\n\n
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Take a break from the news<\/h3>\n
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