Briefing
iSwine fever threatens Europe’s pork
The virus is threatening to take hold as a sharp
increase in cases raises concerns among farmers
about its potential to devastate the region’s pork
industry.—PAGEiBrussels warns banks on no-deal Brexit
The EU’s financial regulation chief has urged banks
to finish their preparations for a no-deal Brexit,
saying they should not expect further help to
cushion the impact of the UK’s departure.—PAGEiBarclays takes axe to bonus pool
The bank cut the amount set aside for bonuses by
23 per cent in the first half of the year as chief Jes
Staley exerts a tighter grip on pay in a push to
achieve the lender’s profitability target.—PAGEiBuffett group’s cash pile hits $122bn
Berkshire Hathaway has
posted a jump in net profits
and its cash pile has swollen to
a high of $122bn, as the broader
US market lifted the value of its
portfolio.—PAGEiTrump move points to longer trade war
The president’s threat of new tariffs on Chinese
imports has left the prospect of a deal to end the
dispute looking increasingly remote.—PAGE2;
EDITORIAL COMMENT, PAGE 16; MARKET QUESTIONS, PAGE 8iRate of deforestation in Brazil soars
Loggers have razed an area of rainforest bigger than
Luxembourg since president Jair Bolsonaro came to
power, heightening fears for his administration’s
custodianship of the Amazon jungle.—PAGEiHong Kong braces for general strike
The city is preparing for its first general strike in
more than 50 years as unrest spreads after another
weekend of protests. The action is expected to
highlight how discontent is growing.—PAGEDatawatch
Revolution on hold
A failed uprising leaves Venezuela
trapped in limbo— BIG READ, PAGE 15
Oh #$@%!
Why swearing at work is good for
business— PILITA CLARK, PAGE 18
Share the wealth
The age of redistribution is
upon us— RANA FOROOHAR, PAGE 17
MONDAY 5 AUGUST 2019 WORLD BUSINESS NEWSPAPER EUROPE
World Markets
STOCK MARKETS
Aug 2 Jul 26 %Week
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FTSEurofirst 300 1489.18 1537.43 -3.
Euro Stoxx 50 3376.12 3524.47 -4.
FTSE 100 7407.06 7549.06 -1.
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Nikkei 21087.16 21756.55 -3.
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£ per € 0.916 0.
¥ per $ 106.565 108.
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SFr per € 1.091 1.
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Fed Funds Eff 2.38 2.39 -0.
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Euro Libor 3m -0.42 -0.42 0.
UK 3m 0.77 0.77 0.
Prices are latest for edition Data provided by MorningstarAMY KAZMIN— NEW DELHIThousands of people fled India’s Kash-
mir valleyyesterday after New Delhi
ordered the evacuation of visitors,
including tourists and pilgrims, citing
an elevated threat of terrorist violence.The Indian army said that there had
been numerous ceasefire violations in
the past week along the line of control
that divides Muslim-majority Kashmir
between India and its neighbour and
rival Pakistan.
Indian Air Force planes were assisting
in the evacuation of some 20,000 Indian
and foreign visitors from the region,
while many people rushed to Srinagar
airport to try to get seats on commercial
flights, sending ticket prices soaring.
India’s army described a “spurt in
activities of infiltration” by Pakistan’sborder action team, which it said was
seeking to provide cover for fighters to
slip into Indian-held territory “to dis-
rupt peace” along the line of control in
Kashmir.
However, Imran Khan, Pakistan’s
prime minister, yesterday accused India
of using “cluster munitions” against
civilians along the line of control in vio-
lation of international humanitarian
law, and urged Washington to intervene.
“President Trump offered to mediate
on Kashmir. This is the time to do so as
situation deteriorates there,” he
tweeted. “This has the potential to blow
up into a regional crisis.”
The departure of outsiders from the
picturesque but politically volatile terri-
tory generated anxiety and panic buy-
ing among Kashmir’s local population,
who formed long queues for petrol and
other supplies.Kashmiris were already on edge fol-
lowing the recent movement of tens of
thousands of Indian security personnel
to the heavily militarised region.
The exodus began after Indian
authorities announced late on Friday
that they were cancelling the Amarnath
Yatra, an annual pilgrimage to a sacred
cave, after finding evidence of a planned
terror attack on Hindu pilgrims. Secu-
rity officials told Indian media that they
had discovered a Pakistani-made land-
mine and an improvised explosive
device near the pilgrimage route.
Tensions between India and Pakistan
— which have fought four wars over
Kashmir since 1947 — have been rising
along the line of control. This year, India
carried out a missile strikeon a sus-
pected terror training camp in Pakistan
after a suicide bomber killed 44 para-
military personnel in theregion.New Delhi orders visitors to leave
Kashmir after terror threat rises
ProfileiPAGE 3Candidate for top IMF job
offers diplomatic skills© THE FINANCIAL TIMES LTD 2019
No: 40,160★Printed in London, Liverpool, Glasgow, Dublin,
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Luxembourg €3.80 UAE Dh17.Chinese tourists
spend more than a
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trillion dollars
abroad a year, up
from $30bn a
decade previously.
Over the same
period, the UK and
Japan saw tourist
spending fall by
$20bn.Extensive travel
International tourism expenditure
( bn*)Source: World Tourism Organization * Current valuesChina
US
Germany
UK
France
Australia
Russia
South Korea
PETER CAMPBELL— LONDON
KANA INAGAKI— TOKYO
The chief executive of Fiat Chrysler
Automobiles says the company is open
to restarting merger talks with Renault,
in asign that the aborted €33bn tie-up
could yet go ahead.
Despite significant hurdles to a deal,
Mike Manley told the Financial Times
that the Italian-American carmaker was
still “interested in hearing” from its
French rival, adding a combination
offers “significant synergies”.
“The industrial logic that was present
before, it is still present,” he said.
“Should the circumstances change, then
maybe dreams come together and
things can happen.”
FCA and Renault held private talks
for several months earlier this yearabout combining to form a “European
champion” with higher global sales than
General Motors.
After the Financial Times reported
the discussions in May, FCA publicly
launched a €33bn merger proposal.
The deal fell apart just 10 days later,
after increasing exasperation on the
part of FCA’s board at the behaviour of
the French government, which owns
15 per cent of Renault’s shares and has
double voting rights.
The fractious state of Renault’s global
alliance with Nissan, which has been
shaken by the ousting of Carlos Ghosn,
the former chairman of both compa-
nies, was also a factor in the talks failing.
“As they work through those things,
those circumstances that are necessary
to move or change potentially couldhappen”, Mr Manley said. “If that was
the case, we would be interested in hear-
ing from them.”
The comments came as top execu-
tives at Nissan and Renault opened dis-
cussions on the potential reduction of
the French group’s 43 per cent stake in
the Japanese carmaker, in an effort to
salvage the fraying alliance.
The imbalance in the relationship,
where Nissan holds only a 15 per cent
non-voting stake in Renault, has been a
source of tension for the partners.
It remains unclear how fast the talks
will advance with differences in how the
two companies want to rebalance their
capital structure.
Nissan is aiming to reduce Renault’s
stake to 20-25 per cent, according to
people briefed on exchanges, whileRenault envisions a holding of30-35 per
cent.
The talks,first reported by the Wall
Street Journal, were not reliant on
Renault reviving the deal with FCA, the
people said. But they added that the
French carmaker remained keen to find
a way forward with Nissan’s support.
Both Nissan and Renault declined to
comment.
Global carmakers are increasingly
seeking alliances as they battlerising
investment demands and stagnating
sales.
Mr Manly stressed FCA had a “solid
future” as an independent business, but
added: “That doesn’t mean to say that if
there is a better future through an alli-
ance and partnership or merger that we
wouldn’t be open and interested to it.”FCA chief raises hopes of bringing
€33bn Renault merger back to life
3 ‘Industrial logic still present’ 3 Drive for Europe champion 3 Tie-up faces Nissan hurdles
US shootings
Twin attacks
leave 29 dead
A survivor of Saturday’s mass shooting
in the Texan city of El Paso, near the
Mexican border, speaks to a police
officer yesterday outside the shopping
mall where the killings took place.
At least 20 people died in the El Paso
attack. A further nine were killed in a
shooting yesterday in Dayton, Ohio,
promptingfresh recriminations over
gun control.
The alleged killer in El Paso was
linked by police to an online tract that
referred to a “Hispanic invasion”. Mex-
ico’s government decried “racist dis-
course” that provoked hate crimes and
three Democratic presidential candi-
dates accused President Donald Trump
of encouraging “white nationalism”.
Full storypage 2
Mark Ralson/AFP/Getty ImagesMike Manley
says Fiat
Chrysler is still
‘interested’ in
an alliance with
its French rival
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