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Jimmy Lai, the Hong Kong media tycoon and former owner of the now-defunct Apple Daily newspaper, has appeared in court in a long-delayed national security trial that could put him in prison for life.

The 76-year-old mogul, who has already spent almost three years in prison, was among the Chinese territory’s most well-known democracy champions and a prominent critic of the Chinese Communist party. He faces a life sentence if found guilty of colluding with foreign forces and conspiracy to publish seditious material after the trial that is expected to last for 80 days.

There was a heavy security around the Magistrates’ Courts in West Kowloon for the start of the trial, including an armoured vehicle, a bomb disposal vehicle and police dogs.

The trial, which is being held without a jury, was delayed for months after Hong Kong’s government barred Lai’s defence lawyer, UK barrister Tim Owen, in late 2022 on the basis that foreign legal representation could pose a national security threat.

The US, UK and European parliament have called for Lai’s release, with UK foreign secretary David Cameron saying he was “gravely concerned” about Lai’s “politically motivated prosecution”.

Lai, a British citizen, appeared visibly thinner in court on Monday wearing a grey blazer, and waved to the public gallery from the dock. Read more of the account of Lai’s first day of the trial.

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

• US Steel takeover: Shares in US Steel rose in pre-market trading after it agreed to be bought by Nippon Steel of Japan for $14.9bn an an all-cash deal or $55 a share. The shares in the US company, which rejected an offer from rival Cleveland-Cliffs in August, closed on Friday at $39.51 each.

• Monetary policy: The Bank of Japan begins a two-day meeting that investors are watching for hints of a change to the central bank’s longstanding near-zero interest rate policy.

• Israel: US defence secretary Lloyd Austin lands in Israel for talks with Prime Minister Benjamin Netanyahu and his counterpart Yoav Gallant and is expected to press for an end to the destructive bombing campaign that has killed thousands of civilians in Gaza.

• Nikola founder sentenced: Trevor Milton to be sentenced in a Manhattan federal court after being convicted in October 2022 of fraud for lying to investors about his electric vehicle company’s technology.

Five more top stories

1. The head of the IMF has urged Ukraine’s allies to rapidly unlock tens of billions of dollars for the country, as she warned that delays in providing the extra funding would jeopardise Kyiv’s tentative economic recovery. Kyiv can manage a likely short-term funding gap of “a couple of months”, Kristalina Georgieva said in an interview.

• War in Ukraine: Leaders of EU countries have been left brainstorming ways to stop Hungary’s Viktor Orbán from blunting the bloc’s support for Ukraine after he blocked €50bn in aid last week.

• Opinion: Western leaders who led their people to believe the war would be easier than it is are to blame for rising “Ukraine fatigue”, writes Martin Sandbu.

2. The UK, Germany and France yesterday stepped up calls on Israel for a ceasefire, as Israeli protesters urged Prime Minister Benjamin Netanyahu to negotiate another hostage release deal with Hamas. Israel has seen some of its most significant demonstrations since the war started, after its army admitted on Saturday to shooting and killing three Israelis in Gaza who were presumed to have escaped from Hamas captivity. Here’s the latest on the war.

• ‘Gaza metro’: The Israeli army has taken journalists to see a “flagship” Hamas-built tunnel, part of a network estimated to be as long as 500km and bigger than the London Underground. John Paul Rathbone describes what he saw.

• UN aid chief: Martin Griffiths explains why Gaza is the “worst ever” humanitarian crisis he has experienced in an interview with the FT’s Henry Mance.

• The FT View: Israelis deserve a better leader than Netanyahu, and one who can see that a secure future for the Jewish state lies in a settlement with Palestinians, writes the FT’s editorial board.

3. Corporate bankruptcies are increasing at double-digit rates in most advanced economies as borrowing costs rise and governments unwind trillions of dollars worth of pandemic-era support for struggling businesses. Following a decade of decline, the number of US corporate bankruptcies rose 30 per cent in the 12 months to September compared with the year-ago period, according to courts data. Here’s more on the findings.

4. Washington has raised concerns with Mexico over an imminent wave of Chinese investment into the country, as three of China’s largest electric-vehicle makers prepare to build factories south of the US border. MG, BYD and Chery, known in Mexico as Chirey, have all been speaking to officials in Mexico to find sites this year, according to several people with knowledge of the talks.

5. PwC is asking audit regulators around the world to loosen rules on independent board members as it is running into problems finding experienced candidates who meet strict requirements against conflicts of interest. The Big Four firm is seeking to improve its governance following a scandal at its Australian business. Read the full story.

News in-depth

Following his improbable election victory, Javier Milei has ditched his outlandish ideas in favour of a more orthodox approach to economics. Gone was his pledge to adopt the US dollar as Argentina’s national currency during his first week in office in favour of a devaluation of the peso. And instead of burning down the country’s central bank, Milei appointed a former investment bank colleague to run it. Michael Stott and Clara Nugent look back at a week that still contained some surprises.

We’re also reading . . . 

• 2024 economic outlook: Rana Foroohar offers three reasons why the economic reality in 2024 is likely to be much more nuanced than many market participants believe.

• Africa: The continent is the biggest problem for global growth, as its countries have been unable to capitalise on its demographic dividend, writes Ruchir Sharma.

• Office life: Mispronouncing a colleague’s name at work can be hazardous — and not just if it’s the boss, writes Pilita Clark.

Chart of the day

Last week’s rally in global bond markets has shattered investors’ months-long assumption that interest rates in the US and elsewhere will remain higher for longer. The benchmark 10-year US Treasury yield, seen as a proxy for borrowing costs around the world, fell below 4 per cent for the first time since August. The policy-sensitive two-year yield, which closely tracks rate expectations, slipped to its lowest point since May. Other government bond markets have also undergone a dramatic about-turn. “Higher for longer is dead,” said one analyst.

Take a break from the news

The Financial Literacy and Inclusion Campaign is a charity created by the Financial Times to lobby policymakers to take financial education more seriously and to give people a better understanding of the financial system. Deputy editor Patrick Jenkins explains why you should donate to it this year.

Additional contributions from Tee Zhuo and Benjamin Wilhelm