Financial Times Europe - 12.09.2019

2 ★ FINANCIAL TIMES Thursday12 September 2019

FINANCIAL TIMES
Bracken House, 1 Friday Street,
London EC4M 9BT.

Subscriptions & Customer service
Tel: +44 207 775 6000, [email protected],
http://www.ft.com/subscribetoday
Advertising
Tel: +44 20 7873 4000 [email protected],
[email protected]
Letters to the editor
[email protected]
Executive appointments
Tel: +44 20 7873 4909
http://www.exec-appointments.com

Published by:The Financial Times Limited,
Bracken House, 1 Friday Street, London EC4M 9BT.
Tel: +44 20 7873 3000; Fax: +44 20 7407 5700.
Editor: Lionel Barber.
Germany: emirören Media, Hurriyet AS-BranchD
Germany, An der Brucke 20-22, 64546 Morfelden-
Walldorf, +49 6105 327100. esponsible Editor, LionelR
Barber. Responsible for advertising content, Jon Slade.
Italy: Monza Stampa S.r.l., Via Michelangelo Buonarroti,
153, Monza, 20900, Milan. Tel. +39 039 28288201
Owner, The Financial Times Limited; Rappresentante e
Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -
Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy.
Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in
Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.
Spain: ermont Impresion, Avenida de Alemania 12, CTC,B
28821, Coslada, Madrid.Legal Deposit Number

(Deposito Legal) M-32596-1995;

Publishing Director, Lionel Barber;

Publishing Company, The Financial Times Limited,

registered office as above. Local Representative office;

C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN

1135-8262.

UAE: Nisr Publishing LLC, P.O.Box 6519. Dubai. EditorAl

in Chief: Lionel Barber.

Qatar: ar Al Sharq, PO Box 3488, Doha-Qatar. Tel: +97D

44557825

France:Publishing Director, Jonathan Slade, 46 Rue La

Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)

5376 8253; Commission Paritaire N° 0914 C 85347; ISSN

1148-2753.

Turkey:Dunya Super Veb Ofset A.S. 100. Yil Mahallesi

34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24.

Sweden: esponsible Publisher - Christer NorlanderR

© Copyright The Financial Times 2019.

Reproduction of the contents of this newspaper in any

manner is not permitted without the publisher’s prior

consent. ‘Financial Times’ and ‘FT’ are registered trade

marks of The Financial Times Limited. The Financial

Times and its journalism are subject to a self-regulation

regime under the FT Editorial Code of Practice:

http://www.ft.com/editorialcode

Reprints e available of any FT article with yourar

company logo or contact details inserted if required

(minimum order 100 copies).

One-off copyright licences for reproduction of FT articles

are also available.

For both services phone +44 20 7873 4816, or email

[email protected]

I N T E R N AT I O N A L

M U R E D I C K I E— EDINBURGH
JA N E C R O F T— LONDON

Scotland’s highest court has ruled that
British premier Boris Johnson’s proroga-
tion of parliament was unlawful, but
stopped short of ordering the recall of
MPs to Westminster ahead of a UK
Supreme Court hearing.
Edinburgh’s Court of Session saidyes-
terday Mr Johnson’s advice to the Queen
“was unlawful and is thus null and of no
effect”. His decision to prorogue, or sus-
pend, parliament ahead of Brexit was
“motivated by the improper purpose of
stymying parliament”.
The Scottish ruling contrasted with a

decision by London’s High Court astl

week, released in full yesterday, that the

suspension of parliament was “inher-

ently political” and so could not be

reviewed by the courts.

Both Scottish and English rulings and

another case brought in Belfast will be

considered by the Supreme Court for

three days starting on Tuesday.

Anti-Brexit campaigners had hoped

the Scottish court might order an imme-

diate recall of parliament, but Lord Car-

loway, its top judge, said it would not

make any “ancillary orders” before the

Supreme Court hears the case.

Downing Street said the government

was “disappointed” by the decision and

would appeal. It said that if the govern-

ment was defeated at the Supreme

Court it would abide by the ruling and

parliament would be reconvened.

Mr Johnson has insisted that parlia-

ment was being suspended as a routine

matter ahead of setting out its plans for

a new session. “Proroguing parliament

is the legal and necessary way of deliver-

ing this,”Number 10 added.

But in a draft ruling on a legal

challenge brought by more than 70

parliamentarians, the Scottish judges

made clear they believed Mr Johnson’s

real intention was to undermine parlia-

mentary scrutiny in the run-up to the

UK’s exit from the EU.

Lord Carloway said the Queen’s deci-

sion to order the suspension of parlia-

ment, on the premier’s advice, would

not usually be subject to judicial review,

but could be unlawful if its purpose was

to stymie scrutiny of the executive.

“The circumstances in which the

advice was proffered and the content of

the documents produced [by the UK

government] demonstrated that this

was the true reason for the prorogation,”

a draft summary of the decision quoted

him as saying.

Lord Brodie, also on the three-judge

panel, said the prorogation was “an

egregious case of a clear failure to com-

ply with generally accepted standards of

behaviour of public authorities”.

The ruling prompted calls for parlia-

ment to be recalled before the Supreme

Court hearing. Joanna Cherry, the SNP

MP who headed the groupthat brought

the Scottish case, saidthe majority of

MPs “want to be in the house scrutinis-

ing and debating Brexit... therefore

parliament should return”.

Keir Starmer, the opposition Labour

party’s Brexit spokesman, said it was

obvious that shuttingparliament at a

crucial time was wrong and that the

prime minister was not telling the truth

about why he was doing it.

“What we need to do is get back to

parliament and see if we can reopen up

those doors and get Boris Johnson back

in parliament and hold him properly to

account,” Sir Keir said.

But in the earlier ruling on a legal

challenge to prorogation by anti-Brexit

campaigner Gina Miller, London’s High

Court said the premier’s decisions to

prorogue and his advice to the Queen

were “inherently political in nature and

there are no legal standards against

which to judge their legitimacy”.

Editorial Comment age 8p

V I C TO R M A L L E T —PARIS
JA M E S S H OT T E R —WARSAW
M I C H A E L P E E L —BRUSSELS

A burst ofdiplomatic activity y Frenchb
president Emmanuel Macron to repair
the EU’s frayed relations with Moscow
has triggered alarm in other European
capitals, where suspicion of Russian
leader Vladimir Putinruns deep.
Mr Macron’s immediate aim has been
to brokertalks between Mr Putin and
Volodymyr Zelensky, the new Ukrain-
ian president, to try to end the Russian-
backed separatist war in eastern
Ukraine.
A peace summit, the first in three
years, is expected in Paris this month
following last week’s exchange of pris-
oners between iev and Moscow.K
But the French leader has a broader
ambition — to strengthen European ties
to Russia to secure Moscow’s co-opera-
tion inother international crises, in par-
ticular the dangerousdispute over Iran’s
nuclear ambitions.
“Pushing Russia away from Europe is
a profound strategic error, because we
will push Russia either into an isolation
that increases tensions or into alliances
with other great powers such as China,”
the French leader told a gathering of his
country’sambassadorsin August. “The
European continent will never be stable
or secure if we don’t pacify and clarify
our relations with Russia.”
Like US leader Donald Trump, Mr
Macron, who hosted Mr Putin at the
French presidential retreat at the Fort
de Brégançon ahead of last month’s G
summit, envisages the return of Russia
to the group of leading industrialised
economies, from which it was excluded
after its annexation of Crimeain 2014.
His diplomatic outreach s based oni
the conclusion that “it’s absurd to have
relations with Moscow that are worse

than they were during the cold war”,

said Thomas Gomart, director of

the French Institute of International

Relations.

Butsome of France’s allies, notably

Germany, the Netherlands, Poland and

the Baltic states, are wary, and several

want to maintain or reinforce EU sanc-

tions against Russia imposed over

Crimea.

Norbert Röttgen, head of the Bun-

destag’s foreign affairs committee,

accused Paris of failing to co-ordinate

with Berlin or other EU capitals. “The

problem is that you’re rewarding Putin

even though he hasn’t moved an inch on

anything,” he said.

But Nils Schmid, foreign affairs

spokesman for the SPD, the junior part-

ner in Ms Merkel’s coalition, said: “This

is part of a co-ordinated approach...

Germany and France are definitely

pulling in the same direction on

this, although France does it more

bombastically.”

Poland, where historical suspicion of

Russia has been exacerbated by Mos-

cow’s meddling in Ukraine, has also crit-

icised the French strategy.

“Many countries, especially those

that are not Russia’s closest neighbours,

are keen to ignore the fact that Russia

has not really changed its ways in the

Ukrainian conflict,” said Pawel Jablon-

ski, an adviser to Polish prime minister

Mateusz Morawiecki. “We have no illu-

sions about [Russia].”

Polish officials say the country will

push to maintainEU sanctions on Mos-

cow, which are due for renewal early

next year. Paris has for now ruled out

lifting the sanctions: speaking at a meet-

ing of the French and Russian foreign

and defence ministers on Monday,

France’s foreign minister, Jean-Yves Le

Drian, said it was “not yet time”.

But French officials have suggested

Paris will not makeCrimea an obstacle

to better relations if Mr Putin and Mr

Zelensky can reach agreement on end-

ing the war in Ukraine.

Russia hasseized on Mr Macron’s

rhetoric as an example of the pragmatic

co-operation with Europe it has called

for. But Moscow has made no suggestion

it will make significant concessions over

Crimea or easternUkraine.

The concerns of several EU states,

particularly the Netherlands, have been

stoked by Ukraine’s surrender to Russia

ofVolodymyr Tsemakh, aseparatist

commander, as part of the prisoner

swap. Mr Tsemakh was identified as a

“person of interest” by a Netherlands-

led investigation into the 2014 downing

of flight MH17 in eastern Ukraine, in

which 298 were killed, including almost

200 Dutch nationals. The Hague has

said it “greatly regrets” the decision to

let him go.

James Nixey and Mathieu Boulègue of

the Chatham House think-tankaccused

Mr Macron of hubris. “The French pres-

ident’s assumption that he can find a

way to bring Russia into the fold (or in

from the cold.. .) is mistaken,” they

wrote. “Russia does not want to be

brought in, even if it says it does. And

certainly not on the EU’s terms.”

Additional reporting by Guy Chazan in

Berlin

M I C H A E L P E E L— BRUSSELS

Ursula von der Leyen’s new European

Commission is heading for a potential

showdown with the EU parliament

over one of the posts created in her pro-

posed Brussels team: commissioner for

“protecting our European way of life”.

The job, to be taken by Margaritis Schi-

nas, a Greek who is a former chief

spokesperson for the commission, cov-

ers migration, one of the most conten-

tious issues of recent years for the EU,

particularly since an influx of asylum

seekers in 2015 and 2016.

Some MEPs have said the job title and

the description set for the role by Mrs

von der Leyen’s team echoes the lan-

guage of the far-right by suggesting that

Europeans and their cultures are under

threat from the arrival of outsiders.

They have threatened to block the

nomination at parliamentary hearings

that must confirm the27 new commis-

sioners.

Sophie in ‘t Veld, a Dutch MEP with

the Liberal group that helped deliver

Mrs von der Leyen’s narrow majority

when confirmed as the next commis-

sion president in July, called on her to

think again.

“Reactions in parliament to the crea-

tion of this portfolio seem to be gener-

ally very negative,” she said. “Everyone

immediately recognises the ‘dog whis-

tle’, in particular when the title of the

portfolio is read in conjunction with the

mission letter for Schinas.”

Mrs von der Leyen’s appointment let-

ter to Mr Schinas talks of the need for

“workers... equipped to thrive in our

evolving labour market”, as well as

“well-managed legal migration, a strong

focus on integration and ensuring our

communities are cohesive and close-

knit”.

“The European way of life is built

around solidarity, peace of mind and

security,” she writes. “We must address

and allay legitimate fears and concerns

about the impact of irregular migration

on our economy and society.”

Ms in ‘t Veld said Mrs von der Leyen

“would be well advised to reshape Schi-

nas’ portfolio herself immediately and

not wait for parliament to force her

hand”.

Ska Keller, co-president of the Greens

group in the EU parliament, said it was

“scary” to see the proposed new portfo-

lio. “We hope President von der Leyen

does not see a contradiction between

supporting refugees and European val-

ues,” Ms Keller tweeted.

Mina Andreeva, chief commission

spokeswoman, said criticism eflected ar

“fundamental misreading of what the

portfolio is about”. She said the job

reflected a “broad political approach

including European values, democracy,

asylum, the reform of [the] Dublin

[migration rule] and fighting cross-

border terrorism”.

“The central mission that vice-presi-

dent Schinas will be tasked to ensure is

to co-ordinate the work on inclusion

and ‘building a genuine Union of equal-

ity and diversity’,” she said. “You will

also see that the portfolio covers the

areas of migration, security union,

employment and education and cul-

ture.” A spokesperson for Mrs von der

Leyen said: “Europe stands for vibrant,

open and democratic societies”.

UK

PM advice to Queen unlawful, rules court

Suspension of parliament

described as ‘egregious’ by

member of three-judge panel

‘A clear failure to comply

with generally accepted

standards of behaviour

of public authorities’

Commission team

Von der Leyen

under fire

for creating

‘European

way of life’ job

France. approchement risksR

Macron’s Russian

overture sparks

EU unease

French leader’s ambition is to

secure Putin’s co-operation in

other disputes such as Iran

Pro-Russia rebels

in east Ukraine.

Below, Vladimir

Putin and

Emmanuel

Macron —Aleksey

Filippov and Gerard Julien/AFP

‘The

problem is

that you’re

rewarding

Putin even

though he

hasn’t

moved

an inch’

M A RT I N A R N O L D— FRANKFURT

When the European Central Bank’s gov-

erning council meetstoday, its outgoing

president Mario Draghi will face one of

the most crucial moments in his eight-

year tenure.

The talian economist is widely cred-I

ited with saving the euro by promising

to do “whatever it takes” to ease

Europe’s crippling debt crisis in 2012.

The question now is whether he will be

able to launch one last stimulus push to

boost the eurozone’s stagnant inflation

and weak growth before he hands over

to Christine Lagarde next month.

Many economists believehis uncon-

ventional monetary policies are losing

their effectiveness, while some mem-

bers of the ECB governing council are

opposed to pumping even more cheap

money into markets.

How big will the stimulus be?

There is broad consensus among econo-

mists that the ECB will cut its deposit

rate further into negative territory, the

first cut since March 2016, when it fell to

a record low of minus 0.4 per cent.

The only question is whetherit will

choose to cut by 10 basis points or 20bp.

Morecontentious is the robablep

restarting of the quantitative easing pro-

gramme of sovereign and non-financial

corporate bond purchases.

The central bank bought €2.6tn of

bonds between 2015 and last December.

But the heads of the German, Dutch,

Austrian and Estonian central banks —

who all sit on the governing council —

have said they oppose restarting QE.

With bond markets already pricing in

a sizeable stimulus and the German

economyon the brink of recession, the

stakes for Mr Draghi, below,are high.

Will the QE rules change?

When the ECB launched QE four years

ago, it imposed a one-third limit

on the amount of outstand-

ing bonds of any single

member state that it could

buy — known as the issuer

limit. This was designed to

prevent the ECB from hold-

ing enough of any one

country’s debt to have the

power to block a potential

restructuring.

This limit is viewed by

economists as a hurdle to

another large-scale QE

programme because the ECB is already

close to owning 33 per cent of some

countries’ bonds, such as Germany’s.

Mr Draghi said recentlythe ECB still

had “considerable headroom” to buy

more bonds, emboldened by a rulinglast

year by the European Court of Justice

that QE as currently designed was legal.

Yet some analysts saidinvestors

would only believethe ECBhad plenty

of QE firepower left if it raised the limit.

Will there be relief for banks?

Critics saynegative ratesweaken het

eurozone’s struggling banking system,

discouraging lending and motivating

institutions and savers to hoardcash.

To mitigate the hit to the finan-

cial system, the ECB has been

discussing a possible tiering

system in which a portion of

banks’ excess deposits are

exempt from negative rates.

One question is how the ECB

could avoidlimitations of such

a system. For instance,

banks could start trad-

ing their tiering

rights, pushing

up money mar-

ket rates.

Willit change its forward guidance?

The ECB signalled in July that it was con-

sidering changing the language it uses to

describe its intentions. For example,

instead of saying it would not raise rates

before the middle of next year, it could

say that rates would rise only if inflation

expectations came into line with its tar-

get of below, but close to, 2 per cent.

Another ideais to introduce more

symmetry to the inflation target. This

would mean that when the central bank

undershoots, as the ECB has done for

years, it indicates it will tolerate over-

shooting in the future to compensate.

How will Donald Trump react?

After very dovish comments by Mr

Draghiin July, Mr Trumpsaid monetary

easing would weaken the euro. This, he

tweeted, made it “unfairly easier for

them to compete against the USA”.

Having already accused China of

being a currency manipulator and

started a trade war with Beijing, econo-

mists fearan ECB rate cut could provoke

a similar backlash. Such a currency war

with the US could outweigh any poten-

tial benefits ofmonetary easing.

Editorial Comment age 8p

Markets Insight age 20p

MAKE A SMART INVESTMENT ECB meetingEurozone prepares for debate over fresh stimulus

Subscribe to the FT today at FT.com/subscription

STOCK MARKETSS&P 500 Mar 302365.932361.13prev %chg0.20WorldMarkets

Nasdaq CompositeFTSEurorst 300FTSE 100Euro Stoxx 50Dow Jones Ind7369.5220703.38 20659.32 0.211500.725902.743481.675897.557373.72 -0.063475.271493.750.180.470.

FTSE All-ShareCAC 40Xetra DaxNikkeiHang Seng19063.22 19217.48 -0.804011.0124301.09 24392.05 -0.3712256.43 12203.00 0.445089.645069.044011.80 -0.020.

FTSE All World $297.99297.730.

$ per ££ per €$ per €CURRENCIES1.074Mar 301.2490.8591.0751.241prev0.

¥ per $¥ per £SFr per €€ indexCOMMODITIES111.295 111.035139.035 137.82289.046 89.3721.0691.072$ index€ per $£ index¥ per €£ per $€ per £SFr per £119.476 119.363104.636 103.93076.705 76.951Mar 300.8010.9321.1641.244prev0.9301.1551.2380.

Oil Brent $Gold $Oil WTI $Mar 3050.221248.8052.981251.10prev52.5449.511.430.84%chg-0.

UK Gov 10 yrGer Gov 10 yrUS Gov 10 yrINTEREST RATESprice100.4698.8798.681.212.38yield0.390.00chg-0.03-0.

Jpn Gov 10 yrUS Gov 30 yrGer Gov 2 yrFed Funds E 0.66100.14price100.45102.58-0.752.99prev0.060.660.010.00chg0.000.

US 3m BillsEuro Libor 3mUK 3mPrices are latest for editionData provided by Morningstar-0.360.340.78-0.360.340.780.000.000.

L AandaAboastaLJENNIURA N O Oondoni£37,FER TfulHOMNAN —nvestment000fineinthefirstcaseofWhatsAppmePSO N —DUB L I NLO N D O Nbankerssagehascosthisjob

rThefinebynicchatapp.egulatorsationsovercratheckingdownoncomFinanFacebookcialCon’spopularmu-duct

Astaff’sprthatnSevuthorityoblemeedtomocommunerallanewmehighlightsrgeidiaposenveicanitortion.stmentandartheforcochivebankshaveincreampaniessingtheir

bannedemainformationinencryptionccecludingssedwployithoutpWhaovermesystemtsApp,eesfromermthatcissionfromwhichssagingsendingannotbeservicesusesanclientthe

Whauser.tsAppfromeutscheDBankworlastyk-issuedBearbannedlack-

iesbanker,passedconfidentialclientnceainformationtoa“perrysaCBhristopherandafterfriend”discussionswNiehausersonalusing,aformerJithrWhatsAppacquaint-egulators.effer-,

accordingtoconMrtoTheFCAsaidMrNiehaushisfidentialemployervinformahadtheFCA.turnedoluntationonNiehausrily.Theroveregulatorthemehisdehadsharedssag-vicesaid

ingbutnewmeSevlastyearto“thesystem“onanumberofoeralsituationhasdiafromwbankshavebimpress”becomeork-annedpeoissueddeple.ccatrickierasthevices,useofsions”

issuedbanksmovetowaclamasdeiPhone-lovice”ppeddownonBlackBolicy.erryvingitsrdsa“staffs.GoldmanSaspurnstaff’sbringyourownphonetheirwchsbillsork-has

Bareantypicallykersattwointrainedinhowtostitutionssaidusenewstaff

meChpribandiaatwoambAndrewBodvatepeoplefromers,phones.saidrk,thebutnarinstallinga,abarristeratMabanksareuncaseset“apreceppsonabletotheirtrixdent

else”.insainthatitcludedgingInformaappsasshowsthetiontheFCAssharedbyMridenthesameasevtityandeesthesemes-detaNiehauserythingilsofa

clientandhismefferies.InoastedhowhembJMrortgageiNiehauswasinformonefadealwasationabinstanceightbesuspsucceendedfromJabletopayofftheoutarivalofbankerssful.ef-

feriesandreacebookFtionoforJcomment.efferiesdeclinedtofadisciplindisignedbdnotrespondtoarequestaryprocess.eforecommentthecomwhileple-

AdditiLombardonal reportpage 20ing by ChloeCornish

City wabanker lotchdog seses job over WhndsaclearatsApp boastmessage as

averCongreonattempt to tApril 28 have retaUS gthe US-Messional Reoverackxico border on tonmentfunds to pay for a wsisted Dpublicans seshutdonald Town aftereking torump’sall

stopgap spending platime since 2013, as Dforcdefethathis plnce and border speeafederalanned$33bnshutdns.own foremocrats rincrndingThey fease inthe ficouldefuseearrst

TrUS budgettoump attacceptQ&Athe proposaackoverandls.health billiPAGE 8

Shutdown risk as borderwall bidgoesoverthe top

FRIDAY 3 1MAR C H 2 017

BriefingEuropeidealmUSbargain-haking,asUShasbecomeuntersthecombigpaniestargetfuelrideaEuropeforcrTrump-fuelledoss-bM&Aorder

AequitytlanArepiReportonhowtic.marketort out— PAGE 15; CHlines lrallytothehealthonger NHS whuntINACURBSservicecanforHITbargainsDEALS, PAGE 17aiting tsurviveacrossimesthe

moreion-nsomeEmergingsurgicalproceurgentopausterityhaserationsandnations in resaiddureswpatientswforA&Etreaillbecord debtscrapillwaitped.tmentwlon— PAGE 4salesgerhilefor

Devemergingmovernmenttakingadgelopingvantageofacountrieshavedebtinarketsasthetradebooms.surgeinfirstsoldrequarterofoptimismtow— PAGE 15cordlevthisyear,elsofard

iplannedorunAreinLoncord455surveyLondon tdon.Whasrevtallowerderbuildingsareorkbealedconplans breganonstructhatationeak records

almiTheUSsecrduring2Tillersonostonetowe016.etaryof— PAGE 4fails toraweekstateeasehasfaTurkey tiledtoreensiconcileons

tenieTaxtraditionofyyipEsionsTo shiba irdoganonafternvestorsclericFtalksinAnissuesinethullahdoubt revivalkarawcludingSithPreGulen.— PAGE 9yriaandsidentReplanthecep

Inafiledandmanstormycastagerso–aforCdoubtonarevivalhapter11three-vinganentrhourmebankruptcyprenchedsecrecyeting,inveplanafterWeotecstorstion.stinaccused— PAGE 16cultureghouse

iMs,inamovetoemThetitleseedsofnHSBC woos tbanksuchas“hasunvtransgenMx”,inaransgenderdereilebracedivdarangeofcustomdditiontoMr,ers.ersityand— PAGE 20customersgender-nMrs,catertoeutralMissorthe

Datawatch

UK £2.70 ChannelIslands £3.00; Republic of Ireland €3.

©CNoFPrankfurt,THEhicago, Sanrinted in Lon: 39, 435 FINANCIALBrussels, M★Francdon,Liverpool,isco, Wilan,Madrashington DC,TIMES LTDGlasgow,id,New York,Dublin, (^2017) Orlando,
Tokyo, Hong Kong,Singapore, Seoul, Dubai
SubTwwFor the latest news go tow.ft.el: 0800scribecom/298 4708subscribeIn pnowrintand online
http://www.ft.com
Recent attnotablymassAnders BrNorway,acre bythe 2011theacks —eivik in
att acks in ParisBrusandbombibucked the trselsngs—haveNice, andsui cidetheend
Sources: Jane’s Terrorism and Insurgency Centreof generfat alities fromterrorwestincidents inern Europeallylow
Terror attacks in western EuropeHighlighted attackOthers
NorwayParisBrusselsNice
A Five StarIt aly’s pthe pooropulists are tr— B I GREAD, PAG E 1 1plan?ying to woo
WORLD BUSINESS NEWSPAPER
Trump vspoliTechtical risktit ans need to mini—GILL I A N T E T T, PAG E 1 3the Vamiselley Dear DletterMay’s first stab at the br— ROBE RTon...SHRIMSLE Y, PAG E 1 2eak-up
Lloyd’sofLondonEUbasetohelpdealselsover“fiveorcitiesinexpecteditsdelossofpacisiontochoseBsix”wsetupansspiththeortingotherrus-
rightscenturies-ket,saidheexJohnNafterBreelson,oldxit.chairmanofinsurapectedncemar-otherthe
illbereinsuredbacktoheadquayndicatesatswbusinessinsurerstorters,writteninitsfollow.MpicCityofLoturedabove.ostofBrusselsndonthethe
beenseenasgrLondon’ssTheBelgiancapitalhadnotoupsafterpeciathetheUlistinfirstKsurancechoiceavesleforthe
EU,witsboMrNhurgomestransportthoithDelsonforsaidughttobemoreublinlinks,tatheindustry.theandLuxcitywononlentpoollikelyem-But
and“etoryrLexInsurers set to followpage 14xtremelygoodreputation”.page 18egula-
Lloyd’sofBrutotapnewtalentpoolwithEUbasesselsInsurancemarket
AFP
A MESJdutiAmcomputerayesandnotbeBLITZclearimpo— WsystemaabletohHITEHAL L EcquiredtortsintoandleDITO RthecollecttheUKhuge
surgleamentaravesHMdmittedtoMPs.einwoRevyinquirythatthenewtheEU,enue&CustomstoldaparkloadexcustomspectedauthoritieshaveonceBritainsystemrlia-
conMinsaidmeededtime“hascoarch2019,wpleted,confidenceitwourgentacandllapsed”.henBrethetiontobereadybychairofuldbeopxitistheprobeduetobeerational
BritisincBhasreSettingupadigitalcustomsreaseindebeenathpoxitplanrtswhenningtheclabecaheartofrationsextheUKuseofleavespectedatthefivWhitehall’ssystemtheEU.efold
chThesicoegleAbout53pernmefromtheEU,anddoresaMayacksbecausemarketandnnouncedinJtheycentofBcustomsarriveritishimportsunion.throanuarynotrequireughthatButthe
Botcustomdbehit3reothclaraxitwtradingsun00m.tionsayouldincludeion,blocs.thenumberisexearbut,oHMRChdeparturefromnceandlesoutsidepectedthe60m
hoscallliwhethekelytoTherevtofredCustomsDeregulatoryrWhitehallcanimthrowaelationsabclarationsharperspegimeoutthes—inarplemotlightonService,aresystem,entaeas
rangineoatimtProssentialtoBreBritaineblemsgricultureandgfromleaveswithxitcustomsCDSandtheEU.couldforceLofisheries—byandimmigrationotherprojectsndontothe
EUadjustoughttohaveanimourownmuch,aWhitehallharderitsnegocustomsthanweanofficialsatiationposystemispropactonhowweid.ticipated,sition“Ifwithrunningvingthatthe
pressdelivoftheCommonstreasuryselectcom-mInaittee,lettertoforeringCDSwas“certainHMRCAndrewoptionsinBsaidtheTyrie,chatimetablerussels.”llenchairmangingbutfor
achieHMRClinkedtodotemstoworkpropcomplexprassigneda“greenvable”.But,itogramme”zensofoadded,erly.InNthercothatntrafficmputereededtobeCDSwas“aovember,light”tosys-
coCDS,time.Butlastmbeenrmeansmmitteesaindicathereare“majorelegatedto“tingitwyingouldbeonth,itwrotetothepramber/red,”wogrammehadrisksordeliveredonissueshichthe
anditwatracktobeinternationalpparHMRCsaidlastentinanumbero£eyarillbedeliveredbyJanabletotradeonight:“[CsupportncetheUKfricuaryeas”.DS]isonleavestio2019,nless
theEU...IntomakefoceHMRC’scusandressfuldelivsureletterstoery.”sourceitreternalthateachprojectratingsaredethequiresselectcomforgetssignedsuc-mit-the
tee,siontocausedbychange,videnoewhichleavebutsomeMPsbxplanaMrsMay’swillbetheEUcustomsunion.tionpublishedtoday,pro-unexforelieveitwaspecteddetheratingci-
EditoTimetablPhilip StScJPMorgan eye opheme torialComment & Ne&Great Repephens&Chrisimport EU lawstionsotebookGilespage 18eal Bpage 3illpage 13papage 12ge 2
HMRC warns
customsrisks
being swamped
by Brexitsurge
33 CoFivefoldnfidenceinITplans‘riseindeclarationsexpectedhascollapsed’
STOCK MARKETSS&P 500 2367.10Mar 312368.06 -0.04prev %chgWorldMarkets
Nasdaq CompositeFTSEurorst 300FTSE 100Euro Stoxx 50Dow Jones Ind7322.9220689.64 20728.49 -0.191503.035918.693495.595914.347369.52 -0.633481.581500.720.400.150.
FTSE All-ShareCAC 40Xetra DaxNikkeiHang Seng18909.26 19063.22 -0.813990.0024111.59 24301.09 -0.7812312.87 12256.43 0.465122.515089.644011.01 -0.520.
FTSE All World $297.38298.11 -0.
$ per ££ per €$ per €CURRENCIES1.070Mar 311.2510.8551.0741.249prev0.
¥ per $¥ per £SFr per €€ indexCOMMODITIES111.430 111.295139.338 139.03588.767 89.0461.0711.069$ index€ per $£ index¥ per €£ per $€ per £SFr per £119.180 119.476104.536 104.63677.226 76.705Mar 310.8000.9351.1691.252prev0.9321.1641.2440.
Oil Brent $Gold $Oil WTI $Mar 311244.8553.3550.461248.8050.35prev53.130.220.41%chg-0.
UK Gov 10 yrGer Gov 10 yrUS Gov 10 yrINTEREST RATESprice100.3598.6399.271.222.41yield0.33-0.01chg0.02-0.
Jpn Gov 10 yrUS Gov 30 yrGer Gov 2 yrFed Funds E 0.6699.27price100.36102.57-0.753.04prev0.070.660.010.00chg0.000.
US 3m BillsEuro Libor 3mUK 3mPrices are latest for editionData provided by Morningstar-0.360.340.78-0.360.340.780.000.000.
ALEX BAST E FA N WAG ST Y LstanceinBreTheEUyesterdaytookatGEORGE PARKERRKER— B R U Sxitne— L—gotiatBERLINOND O NSEL Soughopions,rejectingening
arEuropeanCeBritain’sxplicitlygivrangementspleaforearlyouncilpreingthataSpainavetopplytotradetasidentDonGibraltar.overanylksandald
Tusk’stheroadtoBre“phasedwhichareanimportantain’sexapprfirstpecdraftofoach”totationsbyxit,soughttodthethedivorceproc-settingoutamileguidelines,ampBstoneonrit-
essdealscSpaindrawalThedethattheterms.overingcisiontopriorighttovritisesprGibraltarcoaddetoanyogressonwtheEU-UKuldclamakeusegitradevingith-the
300-MayearterritorialdisputebetweendridandLondonanobstacleto
amtreatmentbyclause,safullyGibraltaryebitiousbeentradeandsingledyingthesterdaythecouncilatterritoryoutairlineaforunfavohitbackatthebhad“ccessshame-ehestofurabledeals.the
Spain”.Maclause,pthe“MrTusk’stextSeniorEUtraditionalointingdridleftroomfornSpaoutdiplomatsdefendednishpthatitonlyrosition”.notedegotheeflectedtiatorsthatdraft
wastowthatminrgely“laisterorkw“withintheEUconTheresaMay’sithinstructive”,wthepacomingmonegotiatingrametersofithonesaalliesstancewasnths.insistedwhatweyingitPrime
insistenceonawereexupside”.EuropeanCoBritishpecofficialsating,purtofJcondmittederhapsmoreonusticeinanytinuingrthatoletheEU’stransi-forthethe
tiondealBrusselsscouldbeproeeslittleroomforblematic.compro-
msupervisoryandenforcementinstru-Brestatusrequire“exit,ise.IfBwithinthexistingrritainwantstoproguidelinestheegulasinglemarketstateitwtory,budgetary,longafterouldits
citizenhastobmentsandMreginonlyonce“TuskwantsbeenmadeonBrights,wstructurestoahichritain’sesufficientprtalksonWhitehallopply”.futurexitogress”billandtradefficials
bNatoelievemossibleifpreaBossuredEuropeansummitinrisJcertaineansohnson,simtheforBrusselsconultaneditionsarecolleaguesataeignsecrthatoustalksaremet.MrsMayetary,
afterBrehadnotinRepwhenJonaorts &shethan Powell,xitwanalysislinkedsetendedtoithatradeTimcurityco-oppage 3Harford &“thrdeal.eaten”eratheEUtion
Man inHenry Mthe News: Daancepage 12vid Davispage 11
Br usselswithSpain htakes tough sanded veto over Gtance on Breibraltarxit
wage to £7.50 per hour. Butwhich wwill ptoday’sAbout 2.3m peile preincreill have to pay caressure on Ease inoplethe natwill benenglishionaltheworkers acouncils,fit fromriseliving
lotstanew living waged 25 andexpected to cost co—amore. Some 43 permounting to 341,ageover —anduncils’ care searn less tthecent of careincr000 peopleease iserviceshanthe
£360m inAnalysisiPAGE 4thecomingfinancialyear.
Livingpressure onwage rise to pcareservicesile
UK £3.80; ChannelIslands £3.80; Republic of Ireland €3.80 S ATURDAY1APRIL/S U N DAY 2 APRIL 2 017
©CNoPF: 39,rankfurt,rinted in LonTHEhicago, SanBrussels, M 436 FINANCIALFranc★don,isco, WLiverpool,ilan,Madrashington DC,TIMES LTDGlasgow,id,New York,Dublin, (^2017) Orlando,
Tokyo, Hong Kong,Singapore, Seoul, Dubai
SubTwwFor the latest news go tow.ft.el: 0800scribecom/298 4708subsIn pcribenowrintand online
http://www.ft.com
Censors and sensitivityWarning: this article may be upsetting — LIFE & ARTS
H OT E CW HNO LO GYD RIVER LESS I S
C H A NA MERICAN GIN G A N WAY OF LIF E
T H EO F T END H E
R O A D FT WEEKEND MAGAZINE
Escape the taper trapHow high earners can evade a pension headache —FT MONEY
The lure of the exoticRobin Lane Fox on the flair of foreign flora — HOUSE & HOME
How To Spend It
Chic new lodgings in ScotlandMAGAZINE
Art of persuasoverdisputedpainionting of Jane AusMystery deepensten
Austen’sdescendantsinsisttheRiceportraitdepictsherasagirl—seemagazineBridgeman Art Library
RsCDUNC A N RwereA LPH ATepingditSuissetaxinveOBINSO NKINS— Z Uhas— B R U S SRIC HstigabeentionsintargetedbyELStheUK,
FcitbimageaTheSwanceandors-operatingackSwitzerland’sisssataxhavbanksaidyewithatheNattemptstoetherlauthoritiesaen.sterdayitnds,cleanupsettingfterwasits
“owpartfficesinLoereDconcerningsinGermanywerealsoinvolved,utchacontactedbylouthondon,Paclienttaxmaritiessaidrisandtters”.caltheircoAmsterdamofficialsunter-
wtoovseffThehileAaiditwasinveortsbyerhaulinqtheuiriesustrabusinessmostigalia’srevcountry’sthreatentountingaSwenuebankdelsandenissbank.departmentdermineingsecsuretor
dcustrbillionTheproeqownoneomersmeetuiremsofentsfobesdollarsinvaders,wriskllowsparkinganfines.hichreinternaingaUS-ledtionalsultedininterna-clamp-tax
menttionageEntionscocU’seral’sojudicialalthatithaddisputea”-ordinatedbyEurojfficeeliaisonbody.fterxprebeentheSwissssed“aleftoutofattoust,stonish-therney-the
sublandcenCretyes,Frajectofinveditsterday,Suisse,wnceandstigaidenhosetionsintheUK.tifiedsharesThebtheNitselfasfell1.2peranksaidether-the
itlaunchedagatherinforcomfollowed“aHMpliance”Revcrimmationaboutenue&Customsstrabutwasinalinvetegyostigaffullstilltheprosaiditclienttiontryingtobes.hadtaxinto
taxsuspectedandderingby“areachofcertainoauthothisiritytaxefitsadded:nveglobalvasionandmoneyemploystiga“Theinfinationncialinees”.sendsaternstitutionTheUKationallaun-clear
meingsthoseseekaction,Dssageutchprandgoldsaidthatingtoevadetax.”osetheythereisnoseizedjewcutors,whoiningotsaspartofhidingellery,paitiatedplacetheirint-thefor
probe;Switzerlandinvethousataxastigationhadrevuthorities.nd”bankawhileFrenchoandnotdeccountsopenedinealed“sevclaredtofficialssaidFrenchtheireral
delibopsaiditwas“ademeraTheSwissattorney-general’sofficeandetionhaserateexdawstoclusionofrittenenishedatbeenorganxplanationfromSwitzerlaisedwthewaynd”.Itiththisthe
Dinranevadetax.ItagrIn2014,CreutchagingctheUStoan“euthorities.onspiracy”toditeedtofinesof$2.6bn.Suissextensivepleadedhelpandclientswide-guilty
in PHouDublin,Additional rearislder inCarLondon,oline Biporting byand MnhamichaelLaura Nand Voonan inStotanessahard
Credit Suisse
engu lfed in
f 3 reshUK, France and Nethertax probelands swoop
3 Blow for bid to clean up Swiss image
FEBRUARY 4^2
017
THE RISE OF ECO-GLAM
390_Cover_PRESS.indd 1 19/01/2017 13: