The EU’s competitiveness has been the talk of the continent (“Draghi hopes to save Europe from itself”, Opinion, September 18).
Former and current prime ministers, business leaders and heads of the EU’s largest investment funds, among other prominent voices, are lamenting what has been termed a “competitive crisis”.
EU leaders are right to focus on this issue. Europe is falling behind.
As leaders look for real solutions to these real challenges, they should take a page from the book of those running US capital markets and get rid of the EU’s antiquated shareholder rights equity issuance rules.
Advertisement
The US method of raising equity capital through open offerings is faster and more efficient, and it ultimately better serves shareholders.
Conversely, the EU’s stringent shareholder rights rules, while designed to protect investors, often impede companies’ timely access to capital.
As chief executive of a fund manager I know that in today’s fast-paced global economy cost, speed and access to capital is critical.
Rights offerings often succeed not because of the companies’ attractiveness — for example, a perception that they are strong and well managed — but because of wide discounts offered that are consequently coercive to shareholders who didn’t want to absorb dilution.
Advertisement
That’s anathema to a competitive market. The prevalence of deeply discounted, defensive rights issues is one of the reasons why European markets have lagged behind the US, in our view.
By modernising these rules, the EU could create a more dynamic and responsive market environment. Simplifying the equity issuance process would make it easier for European companies to compete on the global stage, attracting more investment into the region through the improved access to and cost of capital. Investors are more likely to put their money into markets where companies can act swiftly and decisively.
Moreover, reforming these regulations would send a strong signal that the EU is committed to fostering a competitive and innovation-friendly economy via vibrant capital markets. This could help reverse the current trend of European companies being overshadowed by their American and Asian counterparts.
Joseph Harvey Chief Executive, Cohen & Steers, New York, NY, US
Dreaming of renting or buying villas around the globe for your next adventure? Well, here’s a twist on the typical travel tale – Miami-based Storylines is crafting a floating eco-friendly paradise with 530 luxury homes aboard. Forget cabins, condos, or villas – this is a private residence vessel, and the dwellings are rightfully called ‘residences.’
The vessel, MV Narrative, is scheduled to set sail in 2027 from Split, Croatia, embarking on a journey around the world every three years. Unlike the hurried pace of a typical world cruise, this voyage offers a more measured experience, allowing residents to immerse themselves in each region for up to three months and savor five days at every port. This thoughtful pace benefits not only the residents but also the port cities, many of which are seeking relief from the overwhelming influx of day-trippers delivered by traditional cruise liners.
As for life aboard this extraordinary ship, imagine residing in a home where the view is ever-changing, revealing the world’s most breathtaking landscapes and the vast, serene ocean. Whether your tastes lean toward a cozy interior studio, ideal for those who favor simplicity, or an expansive four-bedroom penthouse with multiple balconies, there is a residence to suit your preferences. An annual fee, in addition to the purchase price, covers all maintenance, concierge services, and grants access to the ship’s numerous amenities, ensuring a life of comfort and elegance as you sail across the globe.
Advertisement
On that note, the luxury doesn’t end at your doorstep – The onboard community enjoys access to an array of world-class facilities rivaling those of the finest land-based resorts. Whether it’s indulging in gourmet dining at one of the ship’s several specialty restaurants, rejuvenating in the full-service spa, or keeping active with state-of-the-art fitness facilities and pools, every aspect of life onboard is designed to enhance your well-being, longevity and enjoyment. For traveling families, children can enjoy the cinema, a library, and even an onboard school, ensuring that every resident, whether retired or working and raising a family, has the resources and spaces they need to live life fully. The education includes on-shore excursions for world-schooling.
For those fortunate enough to have the freedom to work remotely, the ship is fully equipped with high-speed, reliable satellite internet, ensuring that you stay connected no matter where in the world you are. Imagine logging into your virtual office while sailing past the rugged cliffs of the Mediterranean or taking a conference call with the vibrant skyline of Hong Kong as your backdrop. That would certainly take the grind out of work!
Along with many of the residences coming equipped with home offices, dedicated co-working spaces provide the perfect environment for productivity, featuring ergonomic workstations, private meeting rooms, and stunning views that make even the most mundane tasks feel inspired.
One of Storylines goals is to create an environment with the most healthy work-life balance imaginable. After a day of work, you can unwind by exploring a new port of call, or simply relaxing with fellow residents in one of the many luxurious lounges, one of which is a waters-edge marina – this includes use of watersports equipment such as scuba gear, kayaks and jet skis.
These interior studio residences showcase cutting-edge European space-saving design, offering both style and functionality. With the push of a button, your luxurious 6-star mattress bed smoothly folds away, transforming the space into a cozy lounge area. While this is the entry-level, inside studio (meaning there is no window), a digital screen window brings the outside world to you – it displays live scenes from various onboard CCTV cameras, so you never miss a moment of the ever-changing view.
The spacious RU2 range homes are all outside balcony units, featuring a large waterfront living room with a minibar that separates the living and sleeping areas. You can choose between a Murphy bed that folds away to make space for a table and chairs or a sofa that converts into a queen-sized bed, providing both comfort and space.
The RU3 range are stunning one-bedrooms that offer abundant space, featuring a dedicated workspace, a wet bar with a dining area, and a spacious lounge. The bedroom is a luxurious retreat, enclosed in glass with curtains that can be drawn for complete privacy or left open to enjoy the breathtaking views from bed. It also includes a generous walk-in wardrobe and a bathroom with a combination bathtub/shower.
The RU4 range includes expansive two-bedroom homes that boast an extra-deep balcony designed for seamless indoor/outdoor living. The waterfront master bedroom includes a walk-in closet and an en-suite bathroom, while the guest bedroom also offers its own private bathroom. The lounge area features a pop-up television lift cabinet, allowing you to enjoy stunning views during the day and your favorite shows at night.
The RU5 range is the cream of the crop. The premium residences span two levels on decks 17 and 18. Available in three floor plans with options for two or four bedrooms, this expansive home is perfect for a family and ensures your guests feel right at home. The living area includes a full bar, a dining setting for eight, and cozy lounges to enjoy the ever-changing scenery. The open-plan design fills every corner with natural light and fresh air. With two balconies, each over 100 square feet, this is a true home at sea, ideal for entertaining or simply relaxing.
Simply sign up to the Retail sector myFT Digest — delivered directly to your inbox.
Australia’s consumer watchdog has sued the country’s two largest supermarket chains Coles and Woolworths over accusations that they engaged in “illusory” discounting on hundreds of products ranging from Tim Tam biscuits to cat food.
The Australian Competition and Consumer Commission launched the legal action on Monday after months of wider debate in the country about the power and influence of the retailers.
Advertisement
The ACCC alleged that the two supermarkets — which control about 65 per cent of Australia’s grocery market, according to a Treasury report this year — engaged in “misleading” practices related to discounts on goods between 2021 and 2023.
The watchdog said Coles and Woolworths advertised discounts on items that were sold at the same or sometimes higher price than the regular cost of the products. They did so by implementing “price spikes” of about 15 per cent on the goods for brief periods before offering them at a discount to the inflated price.
“We allege these misleading claims about illusory discounts diminished the ability of consumers to make informed choices about what products to buy, and where,” said Gina Cass-Gottlieb, chair of the ACCC.
In one example, the ACCC said Woolworths offered an Oreo family pack for a regular price of A$3.50 (US$2.40) for at least a year until November 2022. That month, Woolworths increased the price of the Oreo pack to A$5.00 for 22 days before promoting it as “prices dropped” at a cost of $4.50 — “29 per cent higher than the product’s previous retail price of A$3.50,” said the ACCC.
Advertisement
Australia’s Prime Minister Anthony Albanese said the artificial discounting would be “completely unacceptable” if proven. “Customers don’t deserve to be treated as fools by the supermarkets,” he said at a press conference.
He added that the alleged behaviour could have added to Australia’s inflation problem. “When you’re charging more for products than you should, it of course has an inflationary impact by definition,” he said.
The Australian government on Monday also issued an update on its plan to introduce a mandatory code for the country’s largest food retailers that would give regulators the right to impose huge fines on the companies if they are found to have breached regulations around pricing.
The ACCC action will increase pressure on retailers, which have argued in recent months that they have absorbed higher input costs as inflation has soared.
Advertisement
Coles said it would defend itself during proceedings brought by the ACCC. In a statement, it said the regulator’s allegations covered a period of significant cost inflation, which triggered an increase in the retail price of products.
“Coles sought to strike an appropriate balance between managing the impact of cost price increases on retail prices and offering value to customers through the recommencement of promotional activity as soon as possible after the establishment of the new non-promotional price,” it said in a statement.
Woolworths said it would review the allegations. “Cost-of-living pressures remain a key issue for millions of Australians who shop with us every week,” said Amanda Bardwell, the recently appointed chief executive.
Advertisement
Coles and Woolworths shares both dropped about 3.5 per cent following the ACCC action.
Tesco is one of a number of supermarkets that matches some prices to Aldi
Dozens of Tesco products price-matched to Aldi – such as chicken nuggets, cottage pie and blackcurrant squash – are not like-for-like, BBC Panorama has found.
In the case of chicken nuggets, the Tesco product contained 39% chicken compared with 60% in the Aldi one.
Of 122 Tesco products, 38 – nearly a third – had at least five percentage points less of the main ingredient than the Aldi products they had been matched to.
Twelve Tesco products were found to have more of the main ingredient.
Advertisement
Tesco told the BBC it constantly reviews the quality of its products and has clear processes in place to ensure its price-match products are comparable to Aldi.
It also said a higher proportion of any one ingredient does not necessarily mean it is better quality.
Consumer expert Kate Hardcastle says Panorama’s findings are an example of “value engineering” which involves changing quantities of ingredients to reduce the price.
Advertisement
Discount supermarkets like Aldi and Lidl have thrived as shoppers have adapted to the higher cost of living.
Aldi’s low prices have helped it overtake Morrisons as the UK’s fourth biggest supermarket.
Tesco is not the only supermarket to offer products priced to match Aldi.
Sainsbury’s, Morrisons and ASDA offer similar ranges, but Panorama found no clear evidence of a pattern of consistent differences in the proportions of main ingredients in their goods compared with the Aldi versions.
Advertisement
Tesco matches Aldi’s prices on about 700 items out of its 30,000 product lines. They are usually low-priced everyday goods.
Ingredients listed on 122 Tesco products price-matched to Aldi were analysed by Panorama in August.
We found that Tesco chicken kievs, part of the supermarket’s Hearty Food Co range, had 44% chicken, compared with 57% in the Aldi equivalent. In the same range, Tesco cottage pie had 18% beef, whereas Aldi Inspired Cuisine Cottage Pie had 25%.
In the case of Tesco Hearty Food Co chicken nuggets, there was 39% chicken listed on the ingredients, but in Aldi Roosters Chicken Nuggets there was 60%.
A can of Tesco Stockwell & Co Chilli Con Carne lists beef as making up 15% of its ingredients, while in Aldi Bramwells Chilli Con Carne the figure is 27%.
Advertisement
Meanwhile, Tesco No Added Sugar DS Apple Blackcurrant Squash had 6% fruit juices from concentrate, while Aldi Sun Quench Double Strength Apple & Blackcurrant Squash had 20%.
Reducing quantities of the most expensive element in a product – such as meat in a ready-meal lasagne – can make a significant difference to prices, says consumer expert Kate Hardcastle.
“It’s only when you [customers] flip it over and look at that tiny, tiny, font size to see you’re not getting the same deal,” she explains.
But not all of the Tesco price-match products analysed by Panorama had less of the main ingredient than Aldi equivalents.
Twelve of the 122 Tesco comparisons had at least five percentage points more than Aldi’s. These included:
Advertisement
Hearty Food Co 10 Fish Fingers had 64% Alaska pollock, compared with Aldi’s Everyday Essentials Fish Fingers which had 58%
Tesco’s Eastmans Coleslaw had 57% of cabbage, while Aldi’s The Deli Creamy Coleslaw had 47%
Also in the Eastman range, Reduced Fat Houmous had 62% of cooked chickpeas, whereas Aldi’s The Deli Reduced Fat Houmous had 55%
Tesco said: “Since we launched our Aldi Price Match four years ago it has proved very popular with customers.”
It added that all of its products carry information about ingredients so customers can make informed choices.
As the cost-of-living squeeze continues to affect many, supermarkets say they’re doing what they can to help us save money, offering discounts and promotions. But just how good are these deals?
Watch now on BBC iPlayer or on BBC One on Monday 23 September at 20:00 (20:30 in Northern Ireland)
Aldi’s most recent figures, published earlier this month, showed its pre-tax profits more than tripled to a record £536.7m in the year to the end of December 2023, driven by an extra £2.4bn in sales.
Advertisement
Price rises and new store openings drove much of the rise in earnings, but it also attracted new customers. However, the chain is now growing at a slower rate than most of its big rivals, including Lidl.
This time last year, Aldi was the fastest-growing supermarket, according to industry data, but it has since lost ground in market share as competitors have fought back.
It has more than 1,020 stores across the UK and employs 45,000 people.
Tesco’s Stockwell & Co Chilli Con Carne has 15% beef, while its Aldi comparison product has 27%
The vast majority of the products Aldi and Lidl sell are own-label.
Advertisement
Last year, Giles Hurley, Aldi’s boss in the UK and Ireland, told the BBC products sold under a supermarket’s own name now make up more than half of everything shoppers buy, by value.
“If you look in volume terms that figure is much bigger and at the moment own-label products are growing at twice the rate of branded goods,” Mr Hurley said.
“Why would [shoppers] go back?”
Meanwhile, Tesco, the UK’s biggest supermarket chain, reported in April that its pre-tax profits hit £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February.
Cherished among locals and visitors alike, San Diego Historic Landmark and Preferred Hotels & Resorts member, La Valencia has embodied coastal California charm since it opened in 1926. Originally named Los Apartmentos de Sevilla, the hotel was designed in a Spanish Colonial Revival style – its pink façade inspired by the owners’ vacation to Waikiki Beach in the 1950s. Famed for its 11-story Spanish-tiled tower, Mediterranean-style architecture, and stunning Pacific Ocean and La Jolla Cove views, “The Pink Lady” has served as a glamorous getaway for Hollywood’s elite, hosting many notable guests over the decades, from Ginger Rogers to John Lennon. Nods to the hotel’s rich history are still evident across the property, including beautiful courtyards and an original tile medallion of the Pink Lady of La Valencia in its ocean-facing garden. Throw in Les Clefs d’Or Concierge Services and award-winning California coastal cuisine and it’s easy to see why this “grand dame” remains such an iconic place to stay in Southern California.
Advertisement
The Swimming Pool
La Valencia’s swimming pool is nothing short of breathtaking. Overlooking the La Jolla Shoreline and framed by palm trees and tropical plants, it’s the perfect place to while away an afternoon or entire day on one of the plush sun loungers, which are interspersed with side tables and wide sun umbrellas, enjoying food and beverage service (think ahi poke nachos, Mediterranean flatbread, and seared local bluefin tuna salad, plus Frosé All Day cocktails) from the poolside cabana bar. COOLA sun care products are available, and complimentary Wi-Fi can keep you connected if you need to WFP (‘Work From Pool’). There’s a private hot tub area, too, but much like the rest of the hotel, the entire terrace offers epic Pacific Ocean views.
Seasonal Guest Experiences
There might be no prettier place to land on yoga mats and salute the sun than La Valencia’s ocean-view El Jardin where the hotel will be hosting an hour-long Vinyasa yoga class every Friday morning at 8:30 a.m. through September 30. Complimentary for hotel guests and $25 for a local drop-in rate, it’s led by Dr. Austin Shutler with mats, towels and bottled water all provided. Mark calendars for Breast Cancer Awareness Month programs in October, which include the hotel’s third annual Pink Tea Series and this year’s Poolside Movie, ‘Breakfast at Tiffany’s’ (October 12), with a portion of proceeds from both going to benefit Susan G. Komen San Diego.
Advertisement
New Chef, New Menus
La Valencia Hotel recently appointed executive chef Alex Pailles to redefine the dining experience across its three restaurants: theMediterranean Room, Med Patio, and glamorous La Sala lobby bar. After a nearly decade-long tenure at The Marine Room, Pailles also brings a wealth of fine dining experience from his time at the Michelin-starred Xerta Restaurant in Barcelona to the fore. Drawing on his Mexican heritage, Pailles has created complex flavor journeys using hyper-local ingredients across dishes, including sweetwater prawns with aroz bomba and a tataki tuna crudowithcactus fruit aguachile, both of which can be found on the Mediterranean Room menu. Open daily for breakfast, lunch and dinner, with brunch served on weekends, score a table on The Med’s Ocean View Terrace for the prettiest dining backdrop in La Jolla. But for a post-yoga breakfast or early evening glass of Champagne swing by La Sala Lounge and nab a window seat for cinematic views.
The Whaling Bar
La Valencia Hotel fixture since 1949, historic lounge the Whaling Bar reopened in February after a $1.5 million renovation led by the SDCM Restaurant Group (of Kettner Exchange in Little Italy and standout speakeasies Grass Skirt and Captain’s Quarters). A 20-foot mural and original centerpiece, ‘Whale’s Last Stand,’ by Wing Howard anchors the intimate space, whose Moroccan-style interior and intimate ambiance are reminiscent of a 1940s cocktail lounge. Open daily from 11am to 11:30pm, menus have been created with nods to the original Whaling Bar and feature ‘Martini Hour’ nightcap cocktails like The Whaler (composed with cognac, coffee liqueur and homemade ice cream) alongside lunch and dinner dishes conceived by executive chef Brian Redzikowski that span Osetra Caviar with buckwheat pancakes, a ‘dip’ lobster roll, and Caesar ‘Twinkie’ salad.
Advertisement
Tempting Getaway Packages
When staying three nights or longer, save up to 30 percent off La Valencia’s historic suites with the How Suite It Is package. Located in the original Sevilla wing, the Sunset and Riviera Suites feature ocean-view king bedrooms and living rooms with a sleeper sofa, while the Pacific Suite boasts superb ocean views from its top floor perch on the private Cabrillo Wing along with a primary bedroom, separate living area, and powder room decked out with Art Deco décor. Although August might be National Dog Month, La Valencia’s Pampered Pooches package features everything your pup needs to feel at home year-round. Expect a plush dog bed and dog bowls placed in the room for your stay, welcome treats, plus a keepsake La Valencia monogram bandana and pink La Valencia tennis ball. A daily $25 daily credit for the dog menu, which features gourmet dishes like “steak & eggs” and “chicken & veggies,” and a nightly pet fee waived for up to two dogs, is also included. For more information, visit www.lavalencia.com.
Welcome to FT Asset Management, our weekly newsletter on the movers and shakers behind a multitrillion-dollar global industry. This article is an on-site version of the newsletter. Subscribers can sign up here to get it delivered every Monday. Explore all of our newsletters here.
Does the format, content and tone work for you? Let me know: harriet.agnew@ft.com
One event to start: I’m in New York this week and I hope to see lots of you on Wednesday and Thursday at our Future of Asset Management North America event at etc.venues 360 Madison. We have a great line-up of speakers, including Salim Ramji, the new CEO of Vanguard, Neuberger Berman’s George Walker, and Franklin Templeton’s Jenny Johnson. Register here and use the code AMNL10 for a 10 per cent discount.
And one scoop: Sandra Robertson, who has run Oxford university’s £6.5bn endowment fund since it was founded almost two decades ago, is stepping back as chief investment officer of Oxford University Endowment Management and will be replaced by deputy-CIO Neamul Mohsin.
Advertisement
In today’s newsletter:
Steve Cohen steps back from trading at hedge fund Point72
BlackRock and Microsoft plan $30bn fund to invest in infrastructure
Nuclear fuel prices surge as west rues shortage of conversion facilities
How Steven Cohen ran a hedge fund like a baseball team
Steve Cohen used to charter a yacht in the Mediterranean with friend and art dealer Larry Gagosian. But he never really switched off.
“We’d be in the middle of a wonderful dinner in Italy and he’d have to race back to the boat to trade,” said Gagosian, recalling how the hedge fund billionaire would have screens installed below deck to create a de facto trading floor.
“I said, Steve, I love you, and I love taking trips with you, but it’s not the most relaxing.”
Advertisement
However, after an investment career spanning almost half a century, Cohen, 68, announced last week he was stepping back from trading at Point72, the hedge fund he set up a decade ago, to focus on running the firm.
Point72 rose from the ashes of an insider trading scandal at its predecessor SAC Capital that cost $1.8bn to settle — the largest ever for insider trading — with Cohen subsequently barred for two years from managing external investors’ money.
In this profile, Costas Mourselas and I explore one of the hedge fund industry’s great comeback stories, from the cut and thrust atmosphere at SAC, where the returns seemed to good to be true (they were) to the Point72 of today, a business employing 2,800 people and running over $35bn in assets.
“Steve treated the business like a baseball team — if your shortstop is not performing then you trade him for someone else,” says one person who worked with him at SAC. “There’s no personal relationship, it’s just business.”
Advertisement
Cohen is as known for his ownership of the New York Mets and his world-renowned art collection as he is for his trading prowess. The collection is worth more than $1bn and includes works by Pablo Picasso, Andy Warhol and Alberto Giacometti. What distinguishes Cohen as a collector, says Gagoisan, is that he “is just as interested in seeing a new artist as going after a trophy. That’s not always the case.”
For Gagosian, his friend’s shift from player to coach may mean their holidays can resume. “We stopped chartering boats together,” he said. “Maybe now we’ll do it again.”
Read our full story here. And don’t miss this 2006 New Yorker article on the “$40mn-elbow”, one of the more bonkers tales I’ve ever heard. Casino magnate Steve Wynn had agreed to sell Le Rêve,” Picasso’s 1932 portrait of his mistress, Marie-Thérèse Walter, to Cohen and had worked out a deal. But as Wynn was showing the painting to friends the night before the exchange, he accidentally put his elbow through it . . .
BlackRock and Microsoft plan $30bn fund to invest in AI infrastructure
Energy is emerging as one of the biggest barriers for companies looking to exploit the recent advances in artificial intelligence, writes Brooke Masters in New York. The biggest digital companies are already warning of severe capacity bottlenecks in coming years because AI computing power requires far more energy than previous technological innovations.
Advertisement
BlackRock announced last week that it is joining forces with Microsoft and MGX, the Abu Dhabi-backed investment company, to address that problem with one of the biggest investment vehicles ever raised on Wall Street. The three groups will serve as general partners on the Global AI Investment Partnership, which will invest in data centres and the energy infrastructure needed to support them.
The partnership seeks to raise up to $30bn in equity investments and leverage to support up to an additional $70bn in debt financing. Nvidia, the fast-growing chipmaker, will advise on AI factory design and integration.
The fund will be managed by Global Infrastructure Partners and marks its first big fund since the private infrastructure investment group agreed to be acquired by BlackRock for $12.5bn earlier this year. That deal is due to close next month.
“The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed,” Brad Smith, Microsoft’s president, told Brooke. “This kind of effort is an important step.”
Advertisement
The fund marks the latest vehicle created by a large asset manager to meet the ever-growing demand for energy to power generative AI and cloud computing. Earlier this year Microsoft agreed to back $10bn in renewable electricity projects built by Canada’s Brookfield Asset Management.
“Mobilising private capital to build AI infrastructure like data centres and power will unlock a multitrillion-dollar long-term investment opportunity,” says Larry Fink, BlackRock chief executive.
Nuclear fuel prices surge
The price of fuel for nuclear reactors has surged much faster than that of raw uranium since the start of 2022, in a sign of the bottlenecks that have built up in the west following Russia’s invasion of Ukraine, writes Harry Dempsey in London.
Enriched uranium has more than tripled in price to $176 per separative work unit — the standard measure of the effort required to separate isotopes of uranium — since the start of 2022, according to UxC, a data provider.
Demand for uranium has been driven by a revival in atomic power in recent years. However, Russia plays a significant role in the multi-stage process of turning mined uranium into the fuel for a nuclear reactor. This includes converting yellowcake — uranium concentrate — into uranium hexafluoride gas, enriching it to increase the concentration of the type of uranium used for fission, and then turning the enriched uranium into pellets that go into reactors.
Advertisement
Uranium hexafluoride has jumped fourfold in price to $68 per kilogramme in the same period, indicating that conversion is the biggest bottleneck in the nuclear fuel supply chain, analysts said. In contrast, uranium ore has only doubled in price.
“The conversion and enrichment prices are reflecting a much bigger supply squeeze due to the Russia-Ukraine war and other factors,” said Jonathan Hinze, chief executive of UxC.
“Uranium alone does not tell the whole story when it comes to price impacts in the nuclear fuel supply chain.”
Five unmissable stories this week
Steven Eisman, best known for betting on the collapse of the US housing market, has been put on indefinite leave of absence by his employer Neuberger Berman after saying he was “celebrating” the destruction of Gaza.
Advertisement
Billionaire hedge fund manager John Paulson has brushed aside Wall Street worries that Donald Trump’s plans to raise tariffs will harm the economy, calling for the US to “decouple” from China.
Vanguard gave investors in a handful of its funds the chance to vote their shares last year, part of a revolutionary push to give people a say in the governance of America’s largest companies. Almost half of investors opted to let Vanguard do it for them after all.
Private equity is doing badly — however you measure it, writes Lex. Undeterred, private equity firms are aggressively pushing to include language in loan documents to increase payouts on deals.
The UK’s state-backed pension scheme Nest has agreed a tie-up with insurer Legal & General and Dutch pension fund manager PGGM to invest up to £1bn in build-to-rent properties.
Advertisement
And finally
The latest FT Magazine is a must-read Guide to the Business Lunch. It features our favourite business lunch restaurants in London, why lunchtime gossip is ripe for a comeback, and a review of Sweetings, the City’s last canteen. Plus I interviewed Jesus Adorno, the maître d’ at the legendary Le Caprice, on his memories from almost four decades of ego management, extreme discretion and Diana, Princess of Wales.
Thanks for reading. If you have friends or colleagues who might enjoy this newsletter, please forward it to them. Sign up here
We would love to hear your feedback and comments about this newsletter. Email me at harriet.agnew@ft.com
Recommended newsletters for you
Due Diligence — Top stories from the world of corporate finance. Sign up here
Working It — Everything you need to get ahead at work, in your inbox every Wednesday. Sign up here
This article is an on-site version of our Europe Express newsletter. Premium subscribers can sign up here to get the newsletter delivered every weekday and Saturday morning. Standard subscribers can upgrade to Premium here, or explore all FT newsletters
Good morning. Germany’s Social Democrats snatched a narrow regional election victory over the far-right Alternative for Germany yesterday, winning Chancellor Olaf Scholz an unexpected reprieve from calls that he allow someone else to lead the party into the next national election.
Today, we set out the stakes for Europe at the UN this week, and report on a decision by Brussels not to block oil drilling that endangers Greek marine life.
Crunch time
World leaders are descending on New York for the UN’s General Assembly this week for a session billed as particularly pivotal amid uncertainty over the future of support for Ukraine and global climate policy, writes Alice Hancock.
Advertisement
Context: Delegates from the UN’s 193 members are gathering against a backdrop of deepening conflicts in Gaza, Ukraine and Sudan, trade tensions, and increasing desperation over the state of the planet’s health.
Ahead of the gathering, UN secretary-general António Guterres warned that “global institutions and frameworks are today totally inadequate” to deal with the “complex and even existential challenges”, and said he hoped to rally leaders behind a “vision for the future”.
But the UN is not a decision-making body, and the gathering can only signal opinions on the global state of affairs through resolutions. Bilateral meetings and chatter in the corridors are often far more consequential.
For Ukraine, it could be a defining week for the future of global support, two and a half years after Russia’s full-scale invasion.
Advertisement
Ukrainian President Volodymyr Zelenskyy will address UNGA on Wednesday, before travelling to Washington DC to meet US President Joe Biden in a last-ditch attempt to persuade Biden to back a “victory plan” before his presidency ends in January.
“This is a historical mission,” Zelenskyy told reporters last week. Zelenskyy will also meet US presidential candidate Donald Trump. Russian President Vladimir Putin will not attend UNGA.
In back rooms elsewhere, harried climate envoys will use the last major global event before the COP29 climate conference in Azerbaijan this November to prepare a deal. The hope is that countries can agree on a figure for long-term climate finance in Baku, and sustain momentum on the phaseout of fossil fuels.
Advertisement
But European officials are not optimistic.
A European diplomat said that the talks so far had been “horribly not promising with unfortunately outsize expectations from developing countries”.
Chart du jour: Consequences
The world has experienced its hottest three-month period to August on record, with extreme weather causing floods in Europe. Meanwhile, the EU’s chief climate scientist has warned the EU will miss its climate targets if it does not force farmers to pay for emissions.
Hands off
The European Commission will not pursue a complaint by environmental NGOs about Greece approving oil and gas projects near protected natural sites, endangering whales, dolphins and loggerhead turtles, writes Daria Mosolova.
Context: ClientEarth, WWF and Greenpeace filed a complaint with the commission in December last year, urging Brussels to take action against Greece for what they say are breaches of EU climate laws in favour of offshore drilling.
Advertisement
In an official reply seen by the Financial Times, the commission said it would not. As the guardian of the EU treaties, the commission can open infringement proceedings against member states breaching EU law. But it argued that in individual cases of transgressions, it was up to national authorities to act.
“The European Commission is the guardian and enforcer of EU laws yet their reply suggests an unwillingness to engage,” said ClientEarth lawyer Francesco Maletto.
“It is clear, in the present case, the national court is not safeguarding EU law, but rather endorsing a blatant disregard of its obligations,” he added with regard to a previous decision by a Greek court.
EU rules on offshore oil and gas drilling require national authorities to assess the environmental impact of such projects on marine life in protected areas, known as Natura 2000 sites, before approving them.
Advertisement
According to climate activists, Greece has over the years granted at least six oil and gas companies concessions for damaging activities in the Hellenic Trench, a recognised biodiversity reservoir.
Researchers at WWF Greece have also warned that offshore drilling could compromise some of the country’s best-known tourist destinations, including the islands of Corfu, Zakynthos and Crete.
The number of infringement cases opened by the commission has declined in recent years, raising concerns from environmentalists that a more hands-off approach could scupper the union’s long-term climate goals.
The commission did not respond to a request for comment.
Advertisement
What to watch today
EU and western partners hold sanctions co-ordination forum in Brussels.
Trade Secrets — A must-read on the changing face of international trade and globalisation. Sign up here
Swamp Notes — Expert insight on the intersection of money and power in US politics. Sign up here
Are you enjoying Europe Express? Sign up here to have it delivered straight to your inbox every workday at 7am CET and on Saturdays at noon CET. Do tell us what you think, we love to hear from you: europe.express@ft.com. Keep up with the latest European stories @FT Europe
You must be logged in to post a comment Login