Victoria Craig hosts this Financial Times news briefing covering major political and economic developments across three regions. The program features FT correspondents Leo Lewis (Tokyo Bureau Chief), Claire Jones (US economics editor), and Raya Jalabi (Middle East correspondent).

The briefing examines the UK's deepening political crisis around Lord Mandelson's appointment, Japan's snap election results under PM Takeichi, economists' skepticism about AI's inflation impact, and Syria's efforts to revitalize its oil industry after reclaiming key fields from Kurdish forces.

UK Political Crisis Deepens as Starmer Loses Key Ally

Chief of Staff Morgan McSweeney resigned Sunday, claiming responsibility for PM Starmer's appointment of Lord Mandelson as US ambassador despite Epstein connections.

Mandelson spokesperson said he 'regrets believing Epstein's lies about his criminality' while Starmer apologized to victims and agreed to Parliament document release.

Political observers suggest McSweeney's departure will not resolve questions about Starmer's judgment in the widening scandal.

Japan's PM Takeichi Wins Decisive Snap Election Victory

Takeichi's Liberal Democratic Party secured single-party majority after just two weeks of campaigning, the shortest in Japan's modern history.

Leo Lewis notes she 'presented herself as an agent of change' and someone who 'understands the pain of ordinary Japanese, particularly with rising prices.'

Immigration emerged as central issue, with Takeichi stressing need to 'preserve Japan's culture' amid record high foreign worker numbers.

Business tensions arose over her consumption tax cut proposals and weak yen comments, forcing campaign trail reversals.

Economists Challenge AI Productivity Boom Claims

Fed chair nominee Kevin Warsh argues AI will create productivity boom allowing strong growth without inflation, but FT-University of Chicago poll disagrees.

Claire Jones reports economists expect 'negligible impact on inflation from AI boom' over next two years, with short-term inflationary pressure from investment spending.

Syria Reclaims Oil Fields, Courts International Investment

Damascus reclaimed control of major northeastern oil fields from Kurdish forces after 'lightning military offensive,' ending year-long stalled negotiations.

International sanctions lifted last June opened door for major oil companies including Total, Shell, ConocoPhillips, and Chevron to sign exploration deals.

Raya Jalabi describes visiting fields with equipment 'held together by rubber bands and wooden planks' due to decades of sanctions and civil war damage.

Syria targets 100,000 barrels per day production within months, far below pre-war peak of 580,000 but sufficient for domestic consumption needs.

Regional instability and potential ISIS resurgence remain risk factors, though experts say companies factor these into investment calculations.