Euro Zone financial news

FirstFT: UK unveils post-Brexit state assist scheme to help business

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The UK will immediately set out plans for a less complicated, extra “nimble” post-Brexit system of state subsidies, which the federal government will use to turbo-charge or prop up chosen industries.

The federal government stated the system would “begin from the idea that subsidies are permitted in the event that they observe UK-wide rules — delivering good worth for the British taxpayer whereas being awarded in a well timed and efficient means”.

The UK will arrange a “subsidy recommendation unit” throughout the Competitors and Markets Authority, which might solely supply recommendation on whether or not a subsidy is honest.

Rows over state assist have been a supply of friction through the negotiations on the UK-EU commerce deal final yr, with Brussels pushing for Britain’s guidelines to stay aligned with the bloc with a purpose to guarantee a “level-playing subject”.

  • Extra on Brexit: though Britain’s resolution to depart the EU is seldom talked about on doorsteps these days, campaigners stated UK politics had change into much less in regards to the left-right break up and extra about tribal id.

5 tales within the information

1. Brussels: EU may very well be destroyed by nationwide authorized challenges In an interview with the Monetary Instances, Didier Reynders, the EU’s justice commissioner, has vowed to struggle again in opposition to a proliferation of authorized challenges and rulings by member states which have attacked the supremacy of EU legislation, warning that they might destroy the union itself.

“What’s the threat if we don’t maintain this? It’s that we are going to destroy the union itself.”

2. International tax deal backers’ battle Negotiators in Paris are battling to influence holdouts to enroll to the G7’s international deal on company taxation this week amid considerations that the compromises wanted will water down the ultimate settlement. China, India, jap European international locations and creating nations have raised objections to the deal — however talks on the OECD are in search of to search out carve-outs to convey them on board.

3. Declan Kelly resigns as Teneo chief The influential adviser to many Fortune 500 chief executives has resigned as head of the communication agency Teneo. His exit comes 5 days after the FT revealed that Kelly had inappropriately touched a variety of girls with out their consent at a charity live performance in California in Could.

4. Microsoft and Google finish truce on authorized battles The top to an nearly six-year truce to stop open warfare between the rival Huge Tech corporations clears the way in which for direct battle as regulators take purpose at obstacles to competitors among the many main US know-how teams.

5. Jacob Zuma sentenced to jail South Africa’s prime court docket has sentenced the previous president to fifteen months in jail for contempt of court docket after he defied an order to attend an inquiry into allegations of corruption underneath his presidency. Zuma should flip himself in to police inside 5 days.

If Jacob Zuma fails to show himself in, the police should ‘take all steps vital’ to make sure that he goes to jail, the court docket stated © Bloomberg

Coronavirus digest

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The day forward

Didi’s New York IPO China’s ride-hailing app Didi will start buying and selling on the NYSE immediately after elevating a minimum of $4bn in one of many largest international listings since Alibaba’s in 2014. The group defeated Uber to change into dominant in its dwelling nation’s cities, however problems with progress and regulation loom.

Column chart of Sector’s contribution to group’s total sales (%) showing Didi's revenues breakdown

US-Taiwan commerce talks Taiwan and the US will focus on provide chain safety and digital commerce of their first such talks in 5 years, which kick off immediately, because the international locations search to deepen financial ties within the face of tensions with China. For the most recent developments in international commerce, enroll for our Commerce Secrets and techniques e-newsletter.

Eurozone inflation knowledge Figures due immediately are anticipated to indicate a modest dip from 2 per cent in Could to 1.9 per cent in June. The ECB’s inflation goal is just under 2 per cent. The UK’s stamp obligation vacation can also be because of finish.

What else we’re studying

Amazon’s altering of the guard As founder Jeff Bezos prepares to step down, whether or not Amazon can survive with out him stays a urgent concern. However information of his departure did little to maneuver the corporate’s inventory worth or dent its $1.7tn market worth. The market’s shrug was testomony, maybe, to buyers’ belief within the company machine Bezos constructed over the previous 27 years — and in his substitute, Andy Jassy.

Bitcoin’s limits What’s the purpose of constructing a killing when you can’t spend the loot? Prospects of Binance, one of many world’s largest cryptocurrency exchanges, are confronting that query after their accounts have been minimize off from one of many UK’s fundamental funds programs. Brooke Masters explores.

Reflation commerce unwind wrongfoots hedge funds Betting in opposition to the worth of US authorities bonds was a successful play earlier this yr. However current gyrations and the spectre of a coverage pivot from the Federal Reserve have heaped vital doubt on whether or not buyers ought to stay within the reflation commerce that has captivated Wall Road.

  • Opinion: Ought to central banks do one thing about inequality and, if that’s the case, what? This has change into a scorching subject, writes Martin Wolf. However the vital structural reforms can be tougher than many economists think about.

George Osborne’s horrible histories The previous chancellor has been put in because the centrepiece of a brand new exhibition on the British Museum, amongst different fossilised stays of David Cameron’s authorities. He’s now chair of the museum, a ceremonial function that principally entails elevating cash and refusing to present the Greeks again the Elgin Marbles, writes Robert Shrimsley.

Robert Shrimsley: Visitors will be able to feast on the former chancellor’s mummified political legacy
Robert Shrimsley: Guests will have the ability to feast on the previous chancellor’s mummified political legacy © Lucas Varela

What’s fuelling China’s on-line nationalists? Chinese language nationalist sentiment is mounting on-line, particularly on Weibo, the nation’s greatest social media platform. It was once outsiders, akin to a US politician criticising Beijing, who acquired the worst of bloggers’ assaults. Now, insiders bear the brunt, writes Yuan Yang.

Wellbeing and health

FT Globetrotter has launched a collection serving to readers discover nice cities by bicycle. Columnist Simon Kuper shares suggestions for getting across the French capital, whereas Asia tech reporter Mercedes Ruehl reveals 4 of Singapore’s most scenic cycle routes.

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