Financial Times Europe - 20.02.2020

2 ★ FINANCIAL TIMES Thursday20 February 2020

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: Roula Khalaf.
Germany: emirören Media, Hurriyet AS-BranchD
Germany, An der Brucke 20-22, 64546 Morfelden-
Walldorf, +49 6105 327100. esponsible Editor, RoulaR
Khalaf. 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, Roula Khalaf;

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: MasarPrinting & Publishing, P.O. Box 485100,

Dubai. Editor in Chief: Roula Khalaf.

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° 0919 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 2020.

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

SA M F L E M I N G— BRUSSELS

JA M E S S H OT T E R— WARSAW

TheEU’sricheststateshavedugintheir

heels over the bloc’s forthcoming

seven-year budget ahead of a summit

today as the European Council presi-

dent seeks to ease the impact of spend-

ingcutsonpoorercountries.

Charles Michel last week put forward

a budget framework ncluding a seriesi

of compromises over regional develop-

ment funding s he worked to softena

opposition from central and eastern

European countries in time for the lead-

ers’ meetings in Brussels.

Member states are grappling with a

near €60bn funding gap in the multi-

annual financial framework because of

the UK’s decision to quit the EU. As a

result, net payers into the budget are

being asked to shoulder an extra bur-

den, while net recipients, led by the

cohesion fund countries, are facing

tighter spending programmes.

Mr Michel’s proposals have received a

mixed response from central and east-

ern nations that are net recipients of

support from the EU budget. But the

European Council president still faces

trenchant opposition from many parts

of the EU, teeing up difficult talks.

The richest states remain adamant

that they are being forced to assume too

much of the budgetary burden under

the MFF, which begins in 2021. The big-

gest net contributors, including Ger-

many, Denmark, Sweden, Austria and

the Netherlands, want the budget kept

at no higher than 1 per cent of EU gross

national income, compared with Mr

Michel’s proposal for 1.074 per cent.

They are also clinging to rebates

aimed at easing their budgetary bur-

dens. These will play a central role in the

talks, which could last days. “If Presi-

dent Michel wants the European Coun-

cil to be successful, he needs to come up

with a substantially revamped pro-

posal,” said one EU diplomat.

Mr Michel’s strategy has been to wear

down opposition from poorer member

states, which have been infuriated by

proposed cohesion cuts nearing 15 per

cent compared with the current period.

Pawel Jablonski, Poland’s deputy for-

eign minister, told the Financial Times

that the budget proposals still required

“a lot of work”.

Behind the scenes, countries in the so-

called Friends of Cohesion group have

been poring over the detail of Mr

Michel’s ideas to weigh the implications

for their less developed regions. The

proposals include topping up the cohe-

sion spending pot by €6bn compared

with proposals from the EU’s Finnish

presidency late last year; diverting some

money from the most prosperous

regions; lifting the EU share in co-

financed projects in the poorest areas;

and making it easier to transfer funds

between different spending pots.

In a sop to Poland and Hungary, Mr

Michel also suggested a relatively high

bar for the EU to suspend payments

when a state breaches the bloc’s rule of

law principles.

The proposals are important to cen-

tral and eastern Europe, given the role

cohesion has played in development

since the region’s members began join-

ing the EU in 2004. The funds have

helped revive infrastructure that crum-

bled behind the iron curtain.

Top figures from Germany’s coalition

government discussed the Michel offer

over the weekend and emerged with a

tough position. Heiko Maas, the foreign

minister, said Berlin wanted more

money funnelled into modern priorities

such as research, that the budget vol-

ume being requested by Mr Michel was

too high, and that the EU needed to

agree a permanent system of rebates to

help net payers including Germany.

Germany is also among countries con-

cerned by Mr Michel’s rule of law pro-

posal. Tytti Tuppurainen, Finland’s

minister for European affairs, said: “We

cannot allow the rule of law mechanism

to be a dead letter in the budget book.”

It was now high time to settle the MFF,

she said.

Opinion age 9p

EU budget

Europe’s rich nations stand firm against bigger share of burden

Charles Michel: his plans received a

mixed response from net recipients

G U Y C H A Z A N —BERLIN

The German government has approved
a bill to force social networks to report
criminal posts to the police, in a move
that some critics say could pave the way
for internet censorship.
Under the proposal latforms such asp
FacebookandTwitter ill have to deletew
certain kinds of hate speech and flag the
content to the Office of the Federal
Criminal Police (BKA).
Posts that companies will be required

to report include those indicating prep-

arations for a terrorist attack and the

“formation of criminal and terrorist

groups”, as well as those featuring

instances of racial incitement and the

distribution of child pornography.

Networks would have to give the BKA

“the last IP address and port number

most recently assigned to the user

profile”.

Germany is at the forefront of efforts

to police the internet but experts say

some aspects of the bill give social net-

works too much power to decide what

constitutes illegal content, a role they

say should be the preserve of the courts.

Bernhard Rohleder, managing direc-

tor of Bitkom, the digital industry

group, said the bill “breaks with princi-

ples of our law-based state”. It was up to

prosecutors to interpret and enforce

applicable law, “not private companies”.

As a result of the legislation, “the plat-

forms concerned will be tempted to

report too much rather than too little

user data to the law enforcement

authorities, out of fear of fines”.

Authorities say they need tougher

tools to deal with a steep rise in online

hate speech. “We have to drain the

breeding ground on which extremism

thrives,” said Christine Lambrecht, jus-

tice minister. “We have to stop the spiral

of hatred and violence.”

The bill, passed yesterday, encapsu-

lates the challenge of trying to balance

the right to free speech against protec-

tion from harmful material.

Berlin has taken the view that free-

dom of expression cannot be used to jus-

tify the distribution of criminal content.

But Mr Rohleder said the proposals

risked becoming a “blueprint for

restricting free speech on the internet”.

The measures were first proposed

after two people were killed in a terror-

istattack n a synagogue in the east Ger-o

man city of Halle in October.

Ms Lambrecht said the billwould

make threats of sexual and physical

assault a punishable offence. “Social

networks will have to report all threats

of rape, death threats and racial hate

speech to the BKA,” she said.

Facebook declined to comment. But it

has said that an obligation to report all

content that might be illegal “raises a

number of legal, practical and societal

questions”.The Network Enforcement

Act2018, requires platformsto remove

potentially illegal material within 24

hours of being notified or face fines of up

to €50m.

Editorial Comment age 8p

Social media

German cabinet backs hate speech bill

Critics fear Big Tech will

gain too much power to

decide what is illegal

R O M A N O L E A R C H Y K— KYIV

Rinat Akhmetov, Ukraine’s richest and
most camera-shy oligarch, invited
attention last month after lavishing
€200m on one of the world’s most
expensive properties, Villa Les Cèdres
on the French Riviera.
But the purchase, revealed by the
Financial Times, does not mean the bil-
lionaire is preparing for a comfortable
Mediterranean retirement.
Rather, the 53-year-old feels he still
has a lot of business in Ukraine, angling
to become a closer ally of President
Volodymyr Zelensky while weakening
the influence of a longtime rival.
Tycoons wield vast influence on poli-
tics and the state, and seek proximity to
power to protect their business interests
and gain advantage over competitors.
In Ukraine, Mr Akhmetov has notice-
ably been offering supportive television
coverage to Mr Zelensky. y doing so,B
Mr Akhmetov is giving the president an
alternative to rival oligarchIgor Kolo-
moisky, who backed the Ukraine
leader’s rise with a similaramount of
airtime. A dispute over a bank formerly
owned by Mr Kolomoisky is making
him more of a problem for the presi-
dent, and giving Mr Akhmetov more
influence.
Mr Akhmetov “is focused on adapting
to a new political reality by seeking
points of compromise and partnership
with the new Zelensky leadership, offer-
ing media support in return, among
other things”, said Volodymyr Fesenko,
a political analyst. “And, as a part of this,
he seeks to neutralise the influence of
Kolomoisky.”
At the same time, Mr Akhmetov is
indispensable if Mr Zelensky is to solve
one of Ukraine’s most intractable prob-
lems, the smouldering war with Russia-
backed separatists in the east. The pres-
ident has pledged tobring it to an end
through tough talks with Russia’s Presi-
dent Vladimir Putin.
The region, known as the Donbas, is
Mr Akhmetov’s home and fiefdom. He
owns its emblematic Shakhtar Donetsk
football club and it was the heart of his
business empire, though he has lost con-
trol of many assets to Russia-backed

the 2000s, or for his rival’s control over

the electricity sector to be reduced.

Last year’s election seemed to cement

Mr Kolomoisky’s closeness to the new

president. But their ties havefrayed

over the complex case ofPrivatBank, a

lender formerly owned by Mr Kolo-

moisky before being nationalised in

2016 over a hole in its balance sheet.

Mr Zelensky wants to gain IMF board

approval for a new $5.5bn loan pro-

gramme for his government. But this is

being jeopardised over PrivatBank:

while the fund wants authorities to hold

prior owners of the bank accountable

for the $5.5bn balance sheet hole, Mr

Kolomoisky has mounted legal chal-

lenges to the nationalisation.

As he tacks away from Mr Zelensky,

Mr Akhmetov ismoving in the other

direction.The president has received

favourable coverage on Mr Akhmetov’s

Ukraine TV channel and Ukraine 24.

“Akhmetov is doing all possible to

reduce Kolomoisky’s influence and

establish a positive relationship with the

new leadership,” said Natalia Ligachova,

chief editor at Detector Media, a

Ukrainian media watchdog.

J I M B R U N S D E N —BRUSSELS

L AU R A H U G H E S— LONDON

Brussels yesterday rejected UK allega-

tions of hypocrisy in its approach to

trade talks, saying instead that Britain

was reneging on prior commitments,

as the atmosphere soured ahead of the

startofnegotiations.

The European Commission responded

to British complaints that it is being

denied a standard trade deal by warning

the UK it could not “expect high-quality

access to the single market if it is not

prepared to accept the guarantees the

EU requires to ensure that competition

remains open and fair”.

The row centres on EU demands that

Britain sign up tocommon standards in

areas such as environmental law, labour

policy and state aid. Britain saysthe

requirements go far beyond what is con-

tained in agreements the bloc has with

countries such as Canada; the EU insists

the cases cannot be compared.

EU officials were also concerned the

UK appeared to be backing away from a

political declaration on future relations

agreed as part of theBrexit divorce deal

with the bloc. The declaration stressed

the need for a level playing field.

Stefaan De Rynck, a senior adviser to

Michel Barnier, EU chief Brexit negotia-

tor, said in London yesterday there were

concerns Britain was failing to honour

the “level of ambition” agreed last year.

Formal trade talks start next month,

and the EU is set to finalise its negotiat-

ing mandate next week. EU ambassa-

dors were once again unable to reach a

deal on the text in Brussels yesterday, in

part because France wanted the bloc’s

demands toughened further.

The EU now hopes ambassadors can

complete work on the text on Monday,

paving the way for European affairs

ministers to sign it off the following day.

“We are clear we are not asking for a

special, bespoke or unique deal,” said a

UK spokesperson. “We want a Canada-

style free trade agreement, which the

EU has frequently said is on offer.”

The exchangereflects the starkly dif-

ferent positions each side is taking on

future ties. Britain is emphasising its

desire for a standard free trade agree-

ment, and wrenching itself free from EU

rules, while the EU is entrenched in its

opposition to anything that might lead,

in its view, to businesses in the bloc

being unfairly undercut by the UK.

Both sides have used social media to

highlight different EU commission Pow-

erPoint slides they said backed up their

position. Downing Street turned to a

2017 slide showing that Britain could

choose theCanada-styledeal,while

Brussels published a new one showing

the economic relationship with the UK

was of a different order of magnitude.

In an accompanying note, Brussels

said “every trade deal we do around the

world has a level playing field element

to it”, and that “each agreement with a

third country depends on a number of

different factors, including distance,

and the level and intensity of trade”.

Mr De Rynck, in an address at the

London School of Economics, said: “It’s

clear that for us it’s a different ball game

that we are playing with the UK to the

one that we agreed with Canada in terms

of the level playing field.

“Some in the UK now seem to want to

become Canadians. But Dover is much

closer to Calais than Ottawa is.”

Brexit

Brussels and

UK trade

accusations

ahead of talks

Eastern Europe. ower playP

Ukraine oligarchs jostle to influence president

Akhmetov and Kolomoisky

tussle in effort to gain an

advantage over each other

He has declined interviews and

stayed out of the limelight in recent

years.MrAkhmetovhas learnt to bend

with Ukraine’s political currents. As an

MP in 2006-2012, he backed former

president Viktor Yanukovich. But when

he fled to Russia after being ousted by

the 2014 Maidan revolution, Mr

Akhmetov swiftly distanced himself.

Under President Petro Poroshenko he

took a pro-Ukraine stance after Russia

annexed Crimea and fomented the

proxy separatist war in the Donbas.But

Mr Akhmetov was left wrongfooted by

the rise of Mr Zelensky, who captured

the presidency from Mr Poroshenko.

The breakthrough was achieved with

strong television backing from Mr Kolo-

moisky, who has a longstanding rivalry

with Mr Akhmetov. Two ferroalloy

plants that Mr Kolomoisky controls

along with partners have long sought

lower electricity tariffs from utilities

controlled by Mr Akhmetov, according

to people familiar with the matter.

Mr Kolomoisky has also in interviews

called on the government to nationalise

utilities and other assets that Mr

Akhmetov acquired in privatisations in

separatists. Should Ukraine regain con-

trol, Mr Akhmetov’s ability to offer

thousands of people job security, or put

them out of work, makes him key to a

peaceful settlement.

An ethnic Tatar from a coal-mining

family, Mr Akhmetov controls indus-

trial, telecoms and media assets

throughout Ukraine throughSCM,

which is valued by Forbes at $6.6bn. His

French property joins aportfolio that

includes his £137m purchase in 2011 of

one of the UK’s most expensive flats at

London’s One Hyde Park. Mr Akhmetov

also has steel-rolling mills in Italy and

the UK, and a coal mine in the US.

Winner:

Shakhtar

Donetsk players

throw club

owner Rinat

Akhmetov in

the air after

securing the

Ukraine title in

2013. Below, the
      Villa Les Cèdres,
      which he bought
      for €200m
      AlexanderKhudoteply/
      AFP/Getty; Marlene
      Awaad/Bloomberg

Akhmetov

‘is focused

on adapting

to a new

political

reality’

‘Social networks will have

to report all threats of

rape, death threats and

racial hate to the BKA’

MAKE A SMART INVESTMENT

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 £Mar 30104.636 103.930119.476 119.36376.705 76.9511.2440.9321.1640.801prev0.9301.1551.2380.

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,eesfromermthatcissionfromwhichssagingsendingannotbeusesanservicesclientthe

Whauser.tsAppfromeutscheDBankworlastyk-issuedBearbannedlack-

iesbanker,passedconfidentialclientainformationtoa“pBerrysanceChristopherandafterdiscussionswfriend”Niehaususingersonal,aformerJithrWhatsAppacquaint-egulators.effer-,

accordingtoconMrtoTheFCAsaidMrhisNiehausfidentialemployervinformatheFCA.hadturnedoluntationonNiehausTherrily.overegulatorhadthemehisdesharedsaidvicessag-

ingbutnewmelastyearto“Sevsystem“onanumberofotheeralsituationhasdiafromwbankshavebimpress”peobecomeork-annedissueddeple.ccatrickierasthesions”vices,useof

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

areBantypicallykersattwointrainedinhowtostitutionssaidusenewstaff

meChpribandiaatwoambAndrewBodvatepeophones.plefromers,saidrk,butnartheinstallinga,abarristeratMabanksareuncaseset“apreceppsontheirdentabletotrix

else”.insaincludedthatitIngingformashowsappsasthetiontheFCAssharedbyMridenthesameasevtityandeesdetathesemes-Niehauserythingilsofa

clientandhismefferies.InoastedhowhembJMrortgageiNiehauswasinformonefadealwasationabinstanceightbesuspabletopayoffsucceendedfromJtheoutarivalofbankerssful.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 topubsisted Dfunds to pay for a wnmentlicans seshutdonald Town aftereking torump’sall

stopgap spending platime since 2013, as Dforcdefethathis plnce and border speeafederalannedshutd$33bnns.emocrats rown forincrndingThey fease inthe ficouldefuseearrst

Trump attUS budgettoacceptthe proposaQ&Aackoverandhealth billls.iPAGE 8

Shutdown risk as borderwall bidgoesoverthe top

FRIDAY 3 1MAR C H 2 017

BriefingEuropeidealmUSbargain-haking,asUShasbecomeuntersthecombigpaniestargetfuelrideaEuropeforcrTrump-fuelledoss-bM&Aorder

AequitytlanArepRepiortonhowtic.ort outmarket— PAGE 15; CHlines lrallytothehealthINAhuntonger NHS wCURBSservicecanforHITbargainsDEALS, PAGE 17aiting tsurviveacrossimesthe

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

Devemergingmovernmenttakingadgelopingvantageofacountrieshavedebtinarketsasthetradebooms.surgeinfirstsoldreoptimismtowquarterof— PAGE 15cordlevthisyear,elsofard

iinLonAreplannedoruncord455London tsurveydon.Whasrevtallorkbowerderbuildingsareealedconplans breganonstructhatationeak records

almiTheUSsecrduring2Tillersonostonetowe016.etaryof— PAGE 4fails toraweekstateeasehasfaTurkey tiledtoreensiconcileons

tenieTaxtraditionofyyipEsionsTo shiba irdoganonafternvestorsclericFtalksinAnissuesinethullahdoubt revivalkarawcludingSithPreGulen.— PAGE 9yriaandsidentReplanthecep

InafiledmanandstormyforCcastagerso–adoubtonarevivalhapter11three-vinganentrhourmebankruptcypreting,inveenchedsecrecyplanafterWeotecstorstion.stincultureaccused— PAGE 16ghouse

iMs,inamovetoemntitleseedsofTheHSBC woos tsuchas“banktrahasunvnsgenMx”,inaeileransgenderderbracedivdarangeofcustomdditiontoMr,ers.ersityand— PAGE 20customersgeder-nMrs,ncatertoeutralMissorthe

Datawatch

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

Crinted in LonNorankfurt,FPhicago, San©THE: 39,FINANCIAL^435 Brussels, M★Francdon,isco, WLiverpool,ilan,Madrashington DC,TIMES LTDGlasgow,id,New York,Dublin,^2017 Orlando,

Tokyo, Hong Kong,Singapore, Seoul, Dubai

Subel: 0800TwwFw.ft.or the latest news go toscribecom/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,saidheexJohnNafterBreoldelson,xit.chairmanofinsurapectedncemar-otherthe

illbereinsuredbacktoheadquayndicatesatswbusinessinsurerstorters,writteninitsfollow.MpicCityofLoturedabove.ostofBrusselsndonthethe

beenseenasgrLondon’ssTheBelgiancapitalhadnotoupsafterpeciathetheUlistinfirstKlechoiceavessurancethefor

EU,witshMrNboomesurgtransportthoelsonithDforughttobemorethesaidublinlinks,taindustry.theandLuxcitywononlentpoollikelyem-But

and“etoryrLexInsurers set to followpage 14xtremelygoodreputation”.page 18egula-

Lloyd’sofBrutotapnewtalentpoolwithEUbasesselsInsurancemarket

AFP

A MESJdutiAmomputercayesandnotbeBLITZclearimposystema— WabletohHITEHAL L EcquiredtortsintoandleDITO RtheUKthehugecollect

surgledmittedtoMPs.amentaravesHMeinwoRevyinquirythatthenewtheEU,enue&CustomstoldaparkloadexcustomspectedauthoritieshaveonceBritainsystemrlia-

conMinsaidmeededtime“hascoarch2019,wpleted,confidenceitwourgentacandllapsed”.henBrethetiontobereadybychairofuldbeopxitistheprobeduetobeerational

BritisincBhasxitSettingupadigitalcustomsrereaseindehpobeenatplanrtswhenningtheclabecaheartofrationsextheUKuseofWhitehall’sleavespectedatthefivefoldsystemtheEU.

chThesicoecksAbout53permefromtheEU,anddongleresaMayabecausemarketandnnouncedinJtheycentofBcustomsarriveritishimportsunion.throanuarynotrequireughthatButthe

Botcustomdbxitwhit3reotheclaratradingsun00m.tionsayouldincludeion,blocs.earthenumberisexbut,oHMRChdeparturefromnceandlesoutsidepectedthe60m

hoswhethelicallTherevedCkelytotofrustomsDeregulatoryrWhitehallcanimthrowaelationsabclarationsharperspegimeouts—inartheService,areplemotlightonsystem,entaeas

ranginssentialtoBretoatimeProeBritainblemsgricultureandgfromleaveswithxitcustomsCDSandtheEU.couldforceLoandfisheries—byimmigrationotherprojectsndontothe

EUadjustoughttohaveanimourownmuch,aWhitehallharderitsnegocustomsthanweantiaofficialsationposystemispropactonhowweid.ticipated,sition“Ifwithrunningvingthethat

pressdelivoftheCommonstreasuryselectcom-mInaittee,eringCDSwas“forlettertocertainHMRCAndrewoptionsinBsaidtheTyrie,chatimetablellenrussels.”chairmangingbutfor

achieHMRClinkedtodotemstoworkpropcomplexprassigneda“greenvable”.But,itogramme”zensofoadded,erly.InNthercothatntrafficmputereededtobeCDSwas“aovember,light”tosys-

coCDS,time.Butlastmbeenrmeansmmitteesaindicathereare“majorelegatedto“tingitwyingouldbeonth,itwrotetothepramber/red,”wogrammehadrisksordeliveredonissueshichthe

anditwatracktobeinternationalpparHMRCsaidlastillbeentinanumbero£eyardeliveredbyJanabletotradeonight:“[CsupportncetheUKfricuaryeas”.DS]isonleavestio2019,nless

fotheEU...IntomakeceHMRC’sssfulcusandredelivsureletterstoery.”thateachprojectternalsourceitreratingsaredetheselectquirescomforgetssignedsuc-themit-

tee,videnoecausedbychange,siontowhichleavebutsomeMPsbtheEUwillbexplanaMrsMay’scustomsunion.tionpublishedtoday,pro-unexforelieveitwaspecteddetheratingci-

EditoTimetablPhilip StScJPMorgan eye ophemriale toComment & Ne&Great Repephens&Chrisimport EU lawstionsotebookGilespage 18eal Bpage 3illpage 13page 12page 2

HMRC warns

customsrisks

being swamped

by Brexitsurge

33 CoFivefoldnfidenceinITplans‘riseindeclarationsexpectedhascollapsed’

STOCK MARKETSS&P 500 Mar 312367.102368.06 -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 3150.461244.8553.351248.80prev53.1350.350.220.41%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.overingrighttovcisiontoprioritisesprGibraltarcoaddetoanyogressonwtheclaEU-UKuldmakeusegitradevingith-the

300-MayearterritorialdisputebetweendridandLondonanobstacleto

amtrGibraltaryefullyclause,saeatmentbybitiousbeenyingtradeandsingledthethesterdaycouncilatoutterritoryairlineaforunfavohitbackatthebhad“ccessurableshame-ehestofdeals.the

Spain”.MaSeniorEUclause,pthe“MrTusk’stexttraditionalointingdridleftroomfornSpaoutdiplomatsdefendedthatitonlyrnishposition”.notedegothetiatorseflectedthatdraft

wastowthatminrgely“la“withinorkwistertheEUconTheresaMay’sithinstructive”,wthepanegotiatingcomingmorametersofithonesaalliesstancewasnths.insistedwhatweyingitPrime

insistenceonawereexBupside”.EuropeanCoritishpecofficialsating,purtofJconerhapsmoreondmittedusticeinanytinuingrthatoletheEU’stransi-forthethe

tionBrusselssdealcouldbeproeeslittleroomforblematic.compro-

msupervisoryandenforcementinstru-Brestatusrequire“exit,ise.IfBwithinthexistingrritainwantstoproguidelinestheegulasinglemarketstateitwtory,budgetary,longafterouldits

mentsandhascitizentobbeenmadeonBeginonlyonce“MrTuskwantsrights,wstructurestoatalksonhichsufficientprritain’seWhitehallopply”.futurexitogress”billandtradefficials

bNatoelievemossibleifpreaBossuredEuropeansummitinrisJohnson,certaineanssimtheforBrusselsconultanecolleaguesataditionsareeignsecrthatoustalksaremet.MrsMayetary,

afterBrehadnotinRepwhenJonaorts &shethan Powell,xitwanalysislinkedsetendedtoithatradeTimcurityco-oppage 3Harford &“threaten”deal.ertheEUation

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 Eoplease inthe natwill benenglishionalworkers acouncils,thefit 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

©CNoFPrankfurt,THEhicago, Sanrinted in Lon: 39, 436 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
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
RweDCsUNC A N RreA LPH ATepingditSuissetaxinveOBINSO NKINS— Z Uhas— B R U S SRIC HstigabeentionsintargetedbyELStheUK,
FcitbimageaTheSwoackSwrs-operatinganceandsataxhavitzerland’sissbanksaidyewithatheNattemptstoetherlauthoritiesaen.nds,sterdayitcleanupsettingfterwasits
“oconcerningwpartfficesinLoDeresinGermanywerealsoinvolved,utchacontactedbylouthondon,Paclienttaxmaritiessaidrisandcaltters”.theircoAmsterdamofficialsunter-
wtoovsaiditwasinveeffTheohileAerhaulrtsbyinqustrauiriesthebusinessmolia’srevcountry’sstigathreatentountingaSwenuebankdelsandenissbank.departmentdermineingsectorsure
dcusteqrbillionownoneTheprouiremomersmeetsofentsfobesdollarsinvaders,wriskllowinternasparkinganfines.ingahichreUS-ledtionalsultedininterna-clamp-tax
menttionageEntionscocU’seral’sojudicialal”disputeathatithad-ordinatedbyEurojfficeeliaisonbody.fterxprebeentheSwissssed“aleftoutofattoust,stonish-rney-thethe
sublandcenCretyes,Frajectofinveditsterday,Suisse,wnceandstigahoseidentionsintheUK.tifiedsharesThebtheNfell1.2peritselfasanksaidether-the
itlaunchedagatherinforcomfollowed“aHMpliance”Revcrimmationaboutenue&Customsbutwasstrainalinvetegyostigaffullstilltheprosaiditclienttiontryingtobes.hadtaxinto
taxsuspectedandderingby“areachofcertainoauthothisiritytaxefitsadded:nveglobalvasionandmoneyemployfinastiga“Theintionncialinees”.sendsaternstitutionTheUKationallaun-clear
meingsthoseseekaction,Dutchprssageandgoldsaidthatingtoevadetax.”osetheycutors,whointhereisnoseizedjewingotsaspartofhidingellery,paitiatedplaceint-theirthefor
probe;Switzerlandinvethousataxastigationhadrevuthorities.nd”bankawhileFrenchoandnotdeccountsopenedinealed“sevclaredtofficialssaidFrenchtheireral
delibopsaiditwas“ademeraTheSwissattorney-general’sofficeerateexandetionhasdawstoclusionofrittenenishedatbeenorganxplanationfromSwitzerlaisedwthewaynd”.Itiththisthe
Dinevadetax.ItagrranIn2014,CretheUStoan“eutchagingcuthorities.onspiracy”toditeedtofinesof$2.6bn.Suissextensivepleadedhelpandwide-guiltyclients
in PHouDublin,Additional rearislder inCarLondon,oline Biporting byand MnhamLaura Nichaeland VStotoonan inanessahard
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: