Taiwan mulling big US defence purchase as overture to Trump

In today’s newsletter:

• Taiwan considers big US defence purchases

• Indian investors are lukewarm over Swiggy’s $1.3bn IPO

• What Trump unleashed means for America

Good morning. Taiwan is considering buying a big package of US weapons, including the Aegis destroyer, to show the incoming administration of Donald Trump that it is serious about boosting its own defences against China.

Several people familiar with the situation said Taipei would probably request the Lockheed Martin vessels and Northrop Grumman’s E-2D Advanced Hawkeye, an airborne radar system. It also wants more Patriot missiles and may request F-35 fighter jets, which would be controversial in Washington. 

The deliberations come as countries consider how to avoid becoming a target of the new administration given the emphasis Trump has put on the need for allies to spend more on defence.

Elbridge Colby, a former Pentagon official and candidate for a top job in the Pentagon or on the National Security Council, has been vocal in urging Taiwan to spend more. “Those who care about Taiwan should be super clear they need to dramatically step up. Their fate hangs in the balance,” he recently wrote on social media platform X.

A senior Taiwanese national security official said there had been “informal discussions” with the Trump team about what kind of arms package would demonstrate Taiwan’s determination to invest in its own defence. Here’s what else we know.

Scroll down for more coverage of Trump’s return:

• Bitcoin hits record high: Bitcoin reached $80,000 for the first time after Trump’s election victory, which the crypto industry has hailed as a win for digital currencies.

• US oil industry: Executives are eagerly awaiting Trump’s expected rollback of environmental regulations, but production is unlikely to increase significantly during his second term in office. 

• Global corporate tax deal ‘in peril’: Attempts to stop some of the world’s biggest companies shifting profits across borders to avoid paying tax would be undermined by Trump’s second term, experts said.

• Inside Trump 2.0: His first term was heavily reliant on the party establishment. The inner circle now includes several billionaires and is in tune with the ideas of the new right.

Here’s what else I’m keeping tabs on today:

• COP29: The UN climate summit begins in Azerbaijan’s capital city Baku.

• China: Singles Day, an annual holiday created for unmarried people, used by retailers as an opportunity to push store sales.

• TSMC: The Taiwanese semiconductor giant is suspending production today of their most advanced artificial intelligence chips for Chinese customers, as the US continues to disrupt Beijing’s AI ambitions.

Join the FT’s M&A webinar on November 20 as experts discuss how the US election, artificial intelligence and interest rates will affect global dealmaking. Register for free here.

Five more top stories

1. The Philippines intends to buy intermediate-range missile launchers from the US, a plan likely to trigger more Chinese protests over Manila’s efforts to boost its defences. Defence secretary Gilberto Teodoro told the FT that his country was looking at getting mid-range capability launchers, which the US brought to the Philippines in April for two bilateral military exercises.

2. Trading in Indian food delivery app Swiggy begins on Wednesday in a $1.3bn initial public offering that investors have already given a lukewarm reception. Swiggy rushed to list and capitalise on elevated valuations this year as the country’s stock market soared. But the IPO has landed against a backdrop of dismal earnings across corporate India.

3. Israeli Prime Minister Benjamin Netanyahu claimed yesterday that his office was the target of an “organised witch hunt”, amid brewing scandals relating to leaks of classified documents and an alleged attempt to blackmail a military official.

• Ceasefire talks: Qatar has suspended its efforts to mediate a ceasefire and hostage deal between Israel and Hamas in a sign of the Gulf state’s mounting frustration with the warring parties’ failure to agree to end the war in Gaza.

• Amsterdam violence: The European city is on edge after what authorities called an outbreak of antisemitic “hit and run” violence against Israeli football fans after a game on Thursday night.

4. Iran has started implementing rolling power blackouts across the country as the Islamic republic struggles with a shortage of natural gas ahead of winter. Two-hour daily outages will be enforced in the capital city of Tehran starting today, local media reported.

5. Big British companies from the London Stock Exchange Group to broadcaster ITV are set for an unexpected £700mn windfall after the UK won an appeal against a Brussels state aid clampdown that had forced London to collect tax against its wishes. HM Revenue & Customs is refunding the companies after a September ruling reversed a 2019 decision by the European Commission.

The Weekend Essay

Donald Trump’s victory represents a decisive rejection by American voters of liberalism, writes The End of History author Francis Fukuyama, and ushers in a new era for the country and possibly the world.

We’re also reading . . . 

• Can India reverse its manufacturing failure?: The industrial boom in the southern state of Tamil Nadu offers a model for the rest of the country to emulate, writes Arvind Subramanian.

• Bosses: Too many leaders avoid spending time with workers doing the jobs the business depends on, writes Pilita Clark.

• Brazil’s gambling problem: The explosion of online sports betting in the South American nation has fuelled an epidemic of addiction with potentially damaging consequences for its economy.

Chart of the day

Premier League football clubs are targeting stadium upgrades to boost revenues as England’s top 20 teams aim to reap the benefits of rising ticket demand.

Take a break from the news

In FT Magazine, media editor Anna Nicolaou explores how Interscope Records under chief executive John Janick signed Billie Eilish and Olivia Rodrigo, putting it at the forefront of the “sad girl” sub-genre.