Western components utilized in kind of Russian missile that hit Kyiv youngsters’s hospital | Invesloan.com

Good morning. The Nato summit continues today in Washington — we’ll have more on what to expect below, and why European officials have been arranging meetings with Donald Trump’s associates on the sidelines of the gathering.

But first, we have an exclusive story on the type of Russian missile that destroyed a Kyiv children’s hospital on Monday, with experts and Ukrainian officials reporting that the model relies on western-designed components.

Captured on camera a second before it hit the cancer hospital, the Kh-101 is one of Russia’s most advanced cruise missiles and critical to its intensifying air strike campaign against Ukraine. Russia is making nearly eight times more Kh-101s than before Vladimir Putin’s full-scale invasion in 2022 — and is still dependent on parts from western countries, particularly the US.

Although sanctions have cut Russia off from some advanced components, the Kremlin’s defence sector has turned to microprocessors and other advanced technology not intended for military use. The transition is visible in Ukrainian analysis of a Kh-101 fired in January, which revealed 16 pieces of western-made electronics inside the missile. Here are more details from the latest analysis.

• US aid: The US will give Kyiv an additional Patriot air defence system to bolster the country’s defences against Russia, joining contributions from four other Nato members.

• More Russia: A Russian court has accused the widow of Kremlin critic Alexei Navalny of “extremism” and ordered her arrest if she ever returned home.

Here’s what else is happening today:

• Nato summit: Sir Keir Starmer will meet US President Joe Biden at the White House during his debut overseas trip since taking office. Britain’s new prime minister has promised a “road map” for the UK to raise defence spending.

• Opec: The cartel publishes its monthly oil market report.

• Companies: Trading updates are expected from Barratt Developments, Grafton Group, The Gym Group, Liontrust Asset Management, PageGroup, SSP Group and JD Wetherspoon. Manchester United has results.

Five more top stories

1. Exclusive: Risks from shadow banking are the biggest threat to the stability of the Eurozone’s financial system, a senior European Central Bank official has warned. Elizabeth McCaul, an ECB supervisory board member, said the “remarkable” growth of private funds and other sources of finance outside the regulated banks raises “caution lights”. Here’s more from her interview with the Financial Times.

2. The Democratic rift over the fate of Joe Biden’s re-election campaign widened yesterday after lawmakers held a tense and gloomy day of talks on whether to rally around the US president or push him to drop his bid. Biden won support from some key Democrats, but the realisation that he is digging in instead of stepping aside is instilling confusion, despair and anger in the party.

3. Exclusive: European delegations to this week’s Nato summit are holding meetings with Donald Trump’s associates in Washington, including former secretary of state Mike Pompeo. Leaders, ministers and senior officials of multiple European governments have sought out Trump’s foreign policy associates as nervousness about Biden’s re-election prospects rises inside the military alliance. Read the full story.

• Nato and the EU: In an age of populism, the west’s two most important institutions owe their surprising resilience to external events, writes Janan Ganesh.

4. Europe’s first new heavy-lift rocket in almost 30 years soared into space yesterday, promising an end to a crisis over the region’s ability to deploy its own satellites into orbit. Ariane 6, four years late and heavily subsidised, lifted off under clear skies from its launch pad near Kourou in French Guiana at about 4pm local time. Here’s how it could compete with Elon Musk’s SpaceX.

5. India and Russia have agreed to boost trade between their two countries, defying western efforts to squeeze the Russian economy over its invasion of Ukraine. In his trip to Moscow this week, Narendra Modi pledged with Vladimir Putin to increase annual bilateral trade to $100bn by 2030, up from $65bn at present, with India importing more Russian oil. Here’s more on what Modi has hailed as an “all-weather” relationship.

• Musk and Modi: Tesla’s chief blindsided the prime minister when he cancelled his India trip in April for talks in China. But the billionaire remains focused on long-term potential in the world’s most populous country.

The Big Read

The snap removal of Nigeria’s petrol subsidy has driven millions of citizens deeper into poverty. The drastic measure is part of “Tinubunomics”, a set of policies implemented by President Bola Tinubu, who says they are necessary to inject market discipline into the distorted and flat-on-its-back economy. But critics say the approach, which has included a massive devaluation of the naira, is a return to the shock therapy of the eighties and nineties that will impoverish millions in pursuit of market purity.

We’re also reading . . . 

• UBS vs Switzerland: In an increasingly acrimonious war of words, the bank’s leaders have clashed with the country’s establishment over issues from capital requirements to its CEO’s pay.

• Labour’s green plan: Big questions surround the new UK government’s admirable but detail-light goals on making Britain a “clean energy superpower”, writes Pilita Clark.

• City of London: The Square Mile is reclaiming momentum from Paris after twin election results that threaten to reverse the two capitals’ relative appeal, writes Patrick Jenkins.

• French politics: Emmanuel Macron’s centrists are off to a rocky start in their attempt to forge a governing coalition, as potential allies rebuffed them and cracks emerged within his own camp.

Chart of the day

Large London office buildings are proving almost impossible to sell, with only a handful of office buildings fetching more than £100mn in the first half of the year, according to new data. High interest rates have driven a sharp repricing while investors also face uncertainty after hybrid working became popular following the pandemic. 

Take a break from the news

For 13 years, Jamie Hawkesworth travelled around the British Isles with a cup of tea and his analogue film camera, alighting at different towns, rural villages and remote islands, photographing the faces and landscapes he came across. Ahead of a new solo exhibition in London tomorrow, he speaks to the FT about his low-fi photographs with a dreamlike quality, where the everyday is rendered sublime.

Additional contributions from Benjamin Wilhelm and Gordon Smith