Daily briefing: EU rebuffs UK’s Brexit proposal for the City
French finance minister says EU will not negotiate with US ‘with a gun to our head’
Brussels has rejected the UK’s proposals on how to govern the City of London’s access to the European market after Brexit, saying Theresa May’s latest financial services plan would rob the EU of its “decision-making autonomy”.
Michel Barnier, the EU’s chief Brexit negotiator, told European affairs ministers on Friday that the British prime minister’s vision for the City’s future relationship with the EU would violate the principle that access rights to the bloc’s financial services market are a gift from Brussels that can be freely withdrawn. His remarks were a rebuff to the UK government and highlight the many conflicts between the two sides despite a more conciliatory tone over the Northern Ireland border issue at the same meeting.
Jonathan Ford argues it would be a mistake to reduce the City’s openness to engage in a tit-for-tat with the EU.
In the news
Fiat Chrysler chief falls ill
The Fiat Chrysler empire — seemingly on the long road to success — is suddenly facing uncertain times after the departure of Sergio Marchionne, who is unlikely to return after complications from surgery.
Trump hits back at Iran’s Rouhani
Donald Trump lashed out against Iran late on Sunday, warning his counterpart Hassan Rouhani never to threaten the US — or else. “WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!,” Mr Trump said on Twitter. The outburst comes after Mr Rouhani warned in a televised speech on Sunday that a confrontation with Iran would be the “mother of all wars”.
Finance ministers split over global trade
The schism in global trade relations was laid bare at a meeting of G20 finance ministers and central bank governors in Argentina over the weekend, who warned that increasing trade tensions risk undermining the global economy. Bruno Le Maire, the French finance minister, said the EU would not negotiate trade with the US “with a gun to our head”, referring to the Trump administration’s more aggressive trade stance. As the prospect of a full-blown global trade war escalates, the renminbi slumped to its lowest level against the dollar in a year on Friday. (FT)
Tapes and documents: Trump lashes out at probes
It was a rocky weekend for the US president as further information was revealed about the investigations into his campaign’s ties to Russia and the hush-money paid to women with whom he had alleged affairs. In stark terms, the FBI said Carter Page, a former campaign adviser, had “been collaborating and conspiring with the Russian government”. Meanwhile, Mr Trump’s attorney Michael Cohen said he had secretly recorded a conversation about the payments to a former Playboy model.
Putin-Trump bilateral business idea hits trouble
There is deep scepticism in Russia that the plan hatched at the Helsinki summit can get off the ground following a widespread backlash after the meeting. Donald Trump and Vladimir Putin want to create a new world order, writes Anne-Marie Slaughter. But the Helsinki meeting may still prove to be the turning point for Republicans in their support for the US president.
Tariffs set to dominate automakers’ earnings
All eyes will be on what the big three US automakers say this week about the future impact of tariffs. As Carlos Ghosn, chief of Nissan and Renault, said last week, nobody wins with US auto tariffs. “There is no way we can escape the fact that the costs of cars are going to go up,” he warned.
The day ahead
Rodrigo Duterte address
The Philippines president will deliver his third state of the nation address on Monday. To mark the occasion, the FT has taken a look at the numbers behind his economic policy. (FT)
May cabinet meeting
Following the EU’s rejection of the UK’s financial services Brexit plan, prime minister Theresa May will convene her last cabinet meeting before the summer break, where she is expected to tell ministers to step up their lobbying efforts.
Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.
What we’re reading
Can factor investing kill off the hedge fund?
Data-driven funds that systematically exploit human weaknesses, such as our tendency to favour glamorous stocks over solid ones, are disrupting traditional asset management. Will the fund managers survive?
Kissinger takes lunch with the FT
Henry Kissinger, the grand consigliere of American diplomacy, talks about Putin, the new world order — and the meaning of Trump. “We are in a very, very grave period.”
As Dogbert in the cartoon strip Dilbert put it back in 1995: “Leadership is nature’s way of removing morons from the productive flow.” Top jobs are difficult, but the Peter Principle was right, says Tim Harford: the wrong people are in them.
Rosé all day
Over the past couple of years rosé wine has become the summer drink of choice for millennials. Here, British wine critic Jancis Robinson explores the real care being lavished on rosé production all over the world.
The children shunned for being witches
The shocking tale of the stigmatisation of children as witches in the Niger Delta region and their ensuing torture and neglect. It is typically vulnerable children with disabilities and illnesses who are targeted, while others are branded for appearing withdrawn, lazy or unruly.
China’s sharp eyes
Last week we brought you a deep dive on the Chinese Communist party using big tech. Now, we go inside China’s surveillance state. From school children to political dissidents: here’s how technology is tracking a nation.
Jennifer Bissell-Linsk & Darren Dodd & Alice Woodhouse