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Verizon-Frontier deal goes to the wire as investors demand higher price

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Exterior of Frontier’s headquarters

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Verizon’s $20bn acquisition of Frontier Communications faces a nail-biting showdown at an investor meeting next week after some of the biggest shareholders in the fibre network company demanded at least a 30 per cent price increase.

Canada-based BCE’s proposed $3.6bn acquisition of Ziply this week — a telco with a fibre network similar to that of Frontier — has become a flashpoint.

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The Frontier investors have told Verizon and the Frontier board that the valuation metrics in the Ziply deal imply a far higher purchase price for Frontier, citing the long-term growth prospects for fibre broadband service.

According to an analysis prepared by Frontier’s shareholders, the company’s projected growth makes its shares worth more than $50 a share, far higher than the deal price of $38.50.

Glendon Capital Management and Cerberus Capital Management, which combined own about 17 per cent of Frontier shares, are among the investors angling for a higher deal price, said multiple people familiar with the matter.

Ares Management, the company’s single largest shareholder with about a 15 per cent stake, has not indicated which way it plans to vote, said people familiar with the matter. It has hired boutique bank Houlihan Lokey to evaluate its options.

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Verizon’s offer in early September represented a 44 per cent premium over Frontier’s trading range at the time. The company has said its offer is fair and it does not plan to raise the price. But the acquisition is also central to the company’s strategy of expanding its fibre internet capabilities, which shareholders view as a sign it will not let the buyout collapse.

Frontier has said that if shareholders reject the deal terms, the company will return to its strategy as a standalone business. The company’s share price was about $34 on Friday. Some analysts are sceptical of the shareholders’ lofty Frontier valuation.

“Frontier’s shareholders’ choice is really between $38.50 per share in cash or a go-it-alone future with the risks and opportunities that journey presents,” Nick Del Deo, a managing director at MoffettNathanson, wrote in a note on Wednesday.

Verizon and Frontier declined to comment.

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The proposed deal suffered additional blows in recent days, after the closely watched proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis directed investors to abstain from voting next week, which in effect counts as rejecting the $38.50 price.

“Given the possibility of substantially more value down the line, and the lack of urgency to approve a transaction that is not projected to close for more than a year, it seems reasonable for shareholders to exercise the optionality of abstaining for the time being,” ISS said in its report on November 1.

Frontier filed for bankruptcy protection in 2020 after the acquisition of a regional telecoms business resulted in an unsustainable debt load. It emerged from bankruptcy in 2021, in which it transferred equity control to its bondholders, allowing it to shed billions of dollars of liabilities. Shortly after, it relisted on the stock market.

Some of the company’s biggest shareholders — including Ares, Cerberus and Glendon — have been with the company since bankruptcy. The investors were some of the group’s biggest noteholders, with Cerberus owning more than $500mn of its debt, according to court filings.

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The activist hedge fund Jana Partners successfully pushed Frontier into starting a sale process earlier this year, before the company’s management had initially planned.

Recent deals between Verizon’s rivals have upped the competition in the sector, with T-Mobile earlier this year announcing joint ventures with private equity groups EQT and KKR to buy Lumos and Metronet, respectively.

Telco companies that historically relied on legacy copper wire businesses, such as Frontier, have been investing heavily in fibre networks to compete with cable broadband providers. While their traditional businesses have suffered in recent years, there is renewed interest in fibre internet buildouts as data loads explode with coming artificial intelligence applications.

“This is a true game of chicken,” said one person involved in the transaction.

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Additional reporting by James Fontanella-Khan and Eric Platt in New York

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Canada braces for second Donald Trump presidency

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Donald Trump’s emphatic victory in the US presidential election has caused jitters north of the border in Canada, a close ally with a trading partnership worth about $1.3tn a year.

In his congratulatory message to the president-elect, Prime Minister Justin Trudeau reminded Washington that Canada and the US have “the world’s most successful partnership” and that they “are also each other’s largest trade partners and our economies are deeply intertwined”.

Meanwhile Chrystia Freeland, the finance minister, told reporters in Ottawa that while there were a “lot of anxieties” after Trump’s victory, “Canada will be absolutely fine”.

Ottawa had first-hand experience of Trump’s “America First” trade policy during his previous administration. In 2017 the former president insisted on renegotiating the two-decade old North American Free Trade Agreement, which he described as a “disaster” that, along with China, had hollowed out the US manufacturing sector.

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Trump also accused Trudeau of being “two-faced” during tense 2019 talks on Nato defence spending, with Canada’s contributions to the alliance still below the minimum of 2 per cent of GDP.

Canadian defence spending is likely to remain a sticking point. Mélanie Joly, minister of foreign affairs, said on Wednesday that Canada would be tripling its defence budget. “We want to strengthen the Nato alliance, and Canada will continue to contribute,” she said.

But Trudeau told a Nato summit in July that the 2 per cent target would not be reached until 2032.

Agriculture is another area that caused problems between the two neighbours. Trump railed against Canadian protections on dairy products during his presidency, tweeting in 2018: “Canada charges the US a 270% tariff on Dairy Products! . . . Not fair to our farmers!”

Canada’s Digital Services Tax Act, which places a 3 per cent tax on global technology companies, mostly based in the US, could also be an area of concern in the upcoming Trump administration.

Canadian officials are keen to play down any possible friction, pointing out that the two countries along with Mexico signed the US-Mexico-Canada Agreement, which replaced Nafta, during Trump’s last term. 

“Our trading relationship today is governed by the trade deal concluded by President Trump himself and his team. That’s really, really important,” Freedland said this week.

She and other officials have also been meeting US counterparts throughout the year to bolster trade continuity. Candace Laing, president of the Canadian Chamber of Commerce, on Wednesday issued a statement pointing out that the two countries share “an impressive $3.6bn in daily trade” and “tariffs and trade barriers that will only raise prices and hurt consumers in both countries”.

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Goldy Hyder, president of the Business Council of Canada, said Trump’s strong mandate offers Canada opportunities. “We can enhance energy security, drive economic growth, boost shared prosperity and establish ourselves as the global standard for innovation and economic co-operation,” he said.

But there is nervousness in Ottawa. Trump has threatened to impose duties of 10-20 per cent on imports from all trading partners. With the USMCA agreement up for review in 2026, it could be subject to change under his presidency. 

Trudeau on Thursday re-established the cabinet committee on Canada-US relations to focus on “critical” bilateral issues. After its first meeting on Friday, Freedland, its chair, said the group would meet “often and early next week”, and added that Trump and his pick for trade representative, Robert Lighthizer, have described USMCA as a “model trade deal and I agree with them”.

“We know our trading relation is strong and mutually beneficial . . . We are the most important export market for the US by a long shot,” she said.

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If Trump were to impose his proposed 10 per cent blanket tariffs, it would hit about one-tenth of US imports from Canada between 2026 and 2027, said Tony Stillo, Canadian director of the Oxford Economics think-tank. 

“A second Trump presidency will likely also lead to greater global uncertainty so it will be important to expect the unexpected, particularly when it comes to tariffs,” he warned.

Stillo added that if tariffs were imposed, Canada would likely respond with proportional retaliatory and, in some cases, targeted levies that would hit Republican state governors as a way to put pressure on Trump.

Government officials are meanwhile keen to highlight areas in which the US and Canada are co-operating, such as on China.

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François-Philippe Champagne, minister of innovation, science and industry, said Canada was now more “strategically integrated” with the US on critical minerals, the cross-border automotive industry and green energy supply chains.

“Everyone [in Washington] is talking about security, that is the paramount topic. [Also] supply chain resiliency — they understand that we are their key strategic partner,” he said.

This week Ottawa ordered Chinese-owned social media company TikTok to close its Canadian office based on “national security grounds” and “advice from partners”, Champagne added.

The Trump presidency is also good news for Canada’s oil and gas sector, which sends most of its products to the US.

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“Energy is the cornerstone of our trade relationship. That just got truer,” said Heather Exner-Pirot, a policy director at the Macdonald-Laurier Institute, an Ottawa-based think-tank.

After US President Joe Biden scrapped the $8bn Keystone XL pipeline in June 2021, maintaining an integrated North American energy system and bidirectional energy flows “is increasingly in focus”, said a spokesperson for Enbridge, a Calgary-based multinational pipeline and energy company.

Ultimately, Canada’s relations with its more powerful neighbour would depend on Trump’s approach to the rule of law, said Errol Mendes, professor of law at Ottawa university. 

“If it turns out to be a shift towards autocracy, Canada is in very deep trouble on trade, international security, migration and social conflict internally and externally,” he warned.

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Urgent warning to first-time buyers after Budget tax hike – five ways you can beat soaring costs

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Urgent warning to first-time buyers after Budget tax hike - five ways you can beat soaring costs

FIRST-TIME buyers face paying £1,400 MORE in tax to buy a home after Rachel Reeves’ Budget.

The Chancellor had promised to make it easier to get on the housing ladder – but experts are now warning that the changes to stamp duty will force thousands to delay making the move.

First-time buyers face paying £1,400 MORE in tax to buy a home after Rachel Reeves’ Budget

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First-time buyers face paying £1,400 MORE in tax to buy a home after Rachel Reeves’ BudgetCredit: Alamy
In her first Budget, Reeves revealed a hit to anyone buying a second home by increasing stamp duty charges from 3 to 5 per cent

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In her first Budget, Reeves revealed a hit to anyone buying a second home by increasing stamp duty charges from 3 to 5 per centCredit: Rex

Home movers will also be hit with a £6,400 bill after April next year.

Rosie Murray-West explains what is happening and the impact on the housing market.

THE HIDDEN CHANGE

IN her first Budget, Rachel Reeves revealed a hit to anyone buying a second home by increasing stamp duty charges from 3 to 5 per cent.

But she was less vocal about changes to stamp duty relief for first-time buyers from April 1, 2025.

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At present, first-time buyers pay stamp duty on any property over £425,000, but this will dip back to £300,000.

Other buyers pay the tax on properties above £250,000 and this will return to £125,000.

The tax is set at 5 per cent of the property price above the threshold, rising to 10 per cent for any part over £925,000.

First-time buyers will receive no extra relief if the home they buy is worth over £500,000, instead of the current £625,000.

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FIRST-TIME BUYERS HIT

DESPITE promises that things would be easier, brokers say the changes will have a negative impact on first-time buyers.

From April next year, a first-time buyer purchasing an average price property worth £328,000 will now face £1,400 in upfront costs.

Eight key takeaways from Labour’s budget

A home-mover buying the same price property will pay £6,400 in stamp duty from April 2025, up from £3,900 at present.

Mortgage broker John Fraser-Tucker says: “This change could force many to delay their dreams of home ownership.”

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The change puts stamp duty thresholds back to the levels they were before Liz Truss’s 2022 “mini-budget”.

Movers buying a £425,000 home will pay an extra £2,500 in stamp duty, a total of £11,250.

First-time buyers, who currently pay no stamp duty, would pay £6,250 on a £425,000 home.

Andrew Greenwood, of Leeds Building Society, says the change means London first-time buyers will need to keep renting for an an extra year to save up for the tax.

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“Our country needs to develop a long-term, joined-up plan to improve stability in the housing market if we are to solve the problem,” he said.

Government watchdog the Office for Budget Responsibility says that the amount of stamp duty paid to HMRC per year will go from £14.1billion to £25.4billion in five years’ time.

Upcoming changes will have a negative impact on first-time buyers
Upcoming changes will have a negative impact on first-time buyers

HOW IT WILL ALSO AFFECT MOVERS

AS well as stamp duty, other costs faced by buyers are also increasing.

Property expert Karen Noye, from wealth manager Quilter, predicts that a rush of buyers trying to beat the stamp duty deadline could cause a hike in house prices, meaning homeowners will need to borrow more.

The Budget also means the cost of borrowing will likely be more expensive, despite this week’s bank rate cut.

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Gilt yields — the amount the Government must pay to borrow money — rose after Reeves said she would borrow more cash to fund her Budget, and these can push up mortgage rates.

Mortgage broker David Hollingworth, from London & Country, says that even after the base rate cut, fixed-rate mortgages could still “nudge up” if higher market rates persist, which would make funding a house purchase more expensive in the short-term.

According to financial data service Moneyfacts, the average two-year fixed rate mortgage was at 5.38 per cent this week, up from 5.36 per cent on October 11.

A 25-year mortgage on a £328,000 property with a ten per cent deposit would cost £1,792 a month.

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IT’S BAD NEWS FOR RENTERS TOO

Renters’ Rights Bill contains protections for tenants that could push up costs

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Renters’ Rights Bill contains protections for tenants that could push up costsCredit: Alamy

THE Budget was also bad news for those who need to rent a property until they can save enough for a deposit, as many believe rents are set to rise too.

Reeves added a stamp duty surcharge on those buying second homes, while the recently announced Renters’ Rights Bill contains protections for tenants that could push up costs.

Stuart Collar-Brown, of estate agency membership body Propertymark, says landlords will exit the market leaving fewer homes and higher rents.

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Finally, champions of first-time buyers noted the omission of the Freedom To Buy scheme from the Budget.

The scheme was unveiled before the Labour victory, with Starmer promising it would get 80,000 people on to the housing ladder, with the Government acting as a guarantor for those unable to save big deposits.

“The failure to implement the Freedom To Buy scheme, a cornerstone of their manifesto, is likely to have left aspiring homeowners feeling deeply disillusioned,” says John Fraser-Tucker, from Mojo Mortgages.

The scheme offered a glimmer of hope, particularly for those struggling to save large deposits in high-demand areas.”

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ACT FAST TO BEAT THE RISING COSTS

IF you want to save thousands in stamp duty by buying before the April 1 deadline, meticulous preparation and quick thinking are key.

Nicholas Mendes, from mortgage broker John Charcol, gives his top tips for first-time buyers wanting to get a purchase across the line before the stamp duty increase hits.

 GET A MORTGAGE IN PRINCIPLE: Before you even view a property, check how much you can borrow by talking to a mortgage broker or lender.

This can strengthen your position as buyers and enable you to act quickly when you find a suitable property.

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You should also budget for other costs at this point, including legal fees, surveys and moving expenses, to ensure complete financial readiness.

RESEARCH THE LOCAL MARKET: Knowing how long it takes properties to sell in your area will help with negotiations, while signing up with local agents can help you get in first with the deals.

An agent can help identify suitable properties and alert buyers to new listings as soon as they become available.

ENHANCE YOUR CREDIT SCORE: Banks are often more cautious with first-time buyers, so your credit score – which shows a lender how you manage your money now – is particularly important.

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Avoid making new credit applications in the months leading up to your mortgage application, as each inquiry can temporarily lower your score.

Ensuring all bills and debt repayments are made on time is crucial, as missed payments can significantly impact your score.

 CUT DOWN ON YOUR SPENDING: Lenders check your recent bank statements for regular outgoings, so now is the time to cut down on anything you can.

This means avoiding large transactions that might be hard to explain.

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If you have regular monthly subscriptions, it might also be wise to cancel any unnecessary ones.

 HAVE DOCUMENTS READY: Mortgage lenders require a detailed view of your financial health, so getting your finances in order is essential.

“Begin by gathering key documents such as recent payslips, tax returns and bank statements from the last three to six months, and any other evidence of income.

It’s also helpful to have documentation on hand for any other sources of income, such as bonuses, freelance work or government benefits.

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Sleepy Welsh village which was once a busy port has beautiful coastal paths and cosy pubs

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We explored the beautiful Pembrokeshire Coast in Wales

SINKING into the snug sofa in our cottage, Welsh tea in hand, I let out a satisfied sigh after a weekend of coastal walks, delicious food, and the best company.

My partner Emily, our sausage dog Forrest and I had spent the past couple of days exploring the rugged Pembrokeshire coastline, sampling local delicacies, and uncovering the charms of the village of Solva.

We explored the beautiful Pembrokeshire Coast in Wales

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We explored the beautiful Pembrokeshire Coast in WalesCredit: Getty
Pastel painted buildings in Solva's Main Street

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Pastel painted buildings in Solva’s Main StreetCredit: Alamy

We stayed in the dog-friendly Alma Cottage, one of the many luxury retreats offered by Coastal Cottages, which has more than 500 properties across Wales.

Set in a quiet no-through lane, the beautifully converted old fishing house combined traditional stone charm with modern comforts.

The spacious living room was perfect for unwinding after our adventures, with a sprawling sofa and two armchairs that were hard to get up from due to their outrageous comfort.

Upstairs, two big bedrooms offered stunning views of the coast, while the functional shower room completed the perfect cottage experience.

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Plus, we were welcomed with a thoughtful touch: a dog bowl for Forrest that made us feel right at home.

On arrival, we were delighted by a Welsh hamper worth £40, filled with local treats including Welsh cakes from Tan Y Castell Bakery, Pembrokeshire black forest jam, and lemon sherbet white chocolate.

Solva itself is a picture-postcard coastal village with a fascinating history.

Formed in a “drowned valley” by a meltwater channel, the village was once a bustling port in the 1800s, with capacity for 30 vessels.

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Though the industry has faded, reminders of Solva’s past remain, such as the stone lime kilns still visible at the head of the beach.

Today, the village has a relaxed, almost sleepy feel, with as many dogs as people, making it a perfect spot for Forrest to explore.

Underrated towns you need to visit

From the Cambrian Inn, where we had a hearty lunch of fish and chips washed down with Welsh beer Butty Bach, to the Print House Café, where we enjoyed a coffee, nearly every shop, pub, and restaurant welcomed Forrest with open arms.

A bracing two-and-a-half hour walk along the Pembrokeshire Coast Path took us to St Davids, the smallest city in the UK.

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You wouldn’t know it was a city until you go round a corner and find the magnificent St Davids Cathedral, home to the shrine of St David, Wales’ patron saint.

We also visited Chapel Chocolates for some indulgent award-winning treats.

The convenient £1.60 T11 bus delivered us back to Solva in just ten minutes.

Back in the village, we stopped for a couple of London Prides at The Ship, a pub where we learned about the old dividing line that once separated sailors from their captains — still seen in the notch at the bar.

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Cold-water swim

Later, a burger dinner at The Hats & Barrels, paired with Welsh Double Dragon beer, was the perfect way to round off the evening, followed by a rich raspberry cheesecake.

Solva also has a touch of class, evident in its quaint shops such as Window On Wales, a three-floor treasure trove of Welsh goods.

Art lovers should not miss the Raul Speek Gallery, located in a converted chapel, showcasing vibrant paintings by the Cuban-born artist who has called Solva home since the Nineties.

If you’re after history, a visit to the Solva Woollen Mill, just a ten-minute drive away, is a must.

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It’s the oldest working woollen mill in Pembrokeshire and the only one in Wales specialising in flat woven carpets, rugs, and runners.

A week’s stay with up to three guests at Alma Cottage in Solva is from £490

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A week’s stay with up to three guests at Alma Cottage in Solva is from £490Credit: Supplied

The restored waterwheel is a charming attraction, with King Charles and Queen Camilla choosing the mill to create carpets for their Welsh home.

In the early mornings, when the tide is in, a cold-water swim in the bay is a great way to kick off the day.

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Solva’s charm is at its peak during the crisp, quiet mornings when the village feels almost untouched.

We ended our weekend with a memorable lunch at Crug Glas Country House, a 12th-century farmhouse just a short drive from Solva.

The beautifully decorated hotel made us feel as though we had stepped back in time.

I indulged in a squid starter, followed by an extraordinary roast duck main course, all rounded off with a sticky toffee pudding that was the perfect sweet ending to our trip.

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Solva's harbour once had a capacity of 30 ships

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Solva’s harbour once had a capacity of 30 shipsCredit: Getty

GO: Pembrokeshire

STAYING THERE: Coastal Cottages of Pembrokeshire has hundreds of properties sleeping two to 30 guests and a concierge team offering experiences from chefs to yoga.

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A week’s stay with up to three guests at Alma Cottage in Solva is from £490.

Two pets allowed at £15 per pet per week.

Visit coastalcottages.co.uk or call 01437 765 765.

OUT & ABOUT: visitpembrokeshire.com

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Keir Starmer green-lights multibillion-pound fighter jet with Italy and Japan

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Keir Starmer green-lights multibillion-pound fighter jet with Italy and Japan

Unlock the Editor’s Digest for free

The UK has given the green light to building a new multibillion-pound fighter jet with Italy and Japan, ending fears that the flagship project could fall victim to the new Labour government’s strategic defence review.

Ministers gave the go-ahead for the Global Combat Air Programme (GCAP) at a meeting on Tuesday, according to several people familiar with the decision. A formal announcement is expected in the coming weeks. 

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UK Prime Minister Sir Keir Starmer “chaired a meeting of some ministers . . . at which they made a firm commitment to GCAP”, said one British government official.

The news will come as a relief to Italy and Japan, Britain’s partners on GCAP, after Labour sparked fears in the summer shortly after taking power that it could axe the jet project on cost grounds.

Armed forces minister Luke Pollard in July described the programme as “really important” but had said it would not be right for him to prejudge Labour’s strategic defence review (SDR).

Starmer similarly stopped short of confirming Britain’s participation would continue during a visit to the Farnborough Air Show in late July.

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GCAP is intended to expand each nation’s defence capabilities to address rising threats from Russia and China. It merges Japan’s F-X programme with the UK and Italy’s Tempest project, with the aim of delivering a supersonic jet by 2035.

The UK has committed just over £2bn to the original Tempest programme alone but the eventual cost of GCAP is not yet fully known. The project is underpinned by a trilateral treaty between the partner nations signed in December last year.

Britain’s biggest defence companies, BAE Systems and Rolls-Royce, are working together alongside industrial partners Leonardo of Italy and Mitsubishi Heavy Industries of Japan on the programme.

“Starmer was aware of the discomfort from Japan and Italy at the uncertainty the SDR was creating and wanted to make a firm decision one way or the other sooner rather than later,” said a person familiar with the meeting. 

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UK defence secretary John Healey has stressed the importance of GCAP in recent weeks, including at the G7 Defence Ministers Summit in Naples.

The Ministry of Defence said the UK was a “proud member of the Global Combat Air Programme, working together with our partners Japan and Italy we are fully focused on delivering a next-generation combat aircraft for 2035”.

“We are making rapid progress across the programme, driving innovation, creating jobs and boosting the industrial base of each country.”

British chancellor Rachel Reeves announced an additional £2.9bn for the MoD for next year in her recent Budget, intended to ensure the UK continues to meet and exceed its Nato commitments.

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Labour’s defence spending review comes after the UK’s National Audit Office last year branded the MoD’s equipment plan for Britain’s armed forces “unaffordable”.

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Mozambique leaders accuse protesters of coup attempt as post-poll violence escalates

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A woman reacts while holding used teargas cannisters after police officers fired at a crowd gathering during a “national shutdown” against the election outcome, at Luis Cabral township in Maputo, Mozambique

Bloody protests in Mozambique over the country’s disputed general elections have escalated into an attempted coup, according to Frelimo, the governing party that was declared the victor in the polls.

Alcinda de Abreu, spokesperson for Frelimo, which has held power since the country’s liberation from Portugal 49 years ago, said the violence amounted to an “assault” on a democratically elected government.

“We have seen calls for violence, insubordination, general insurrection and finally an attempted coup d’état,” she said on state television.

But Adriano Nuvunga, head of Mozambique’s non-profit Center for Democracy and Human Rights (CDD), said the government was seeking to create a false narrative to justify the crackdown. “This is not an attempted coup — this is Mozambicans simply demanding the government show electoral fairness,” he told the Financial Times.

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The protests, in which the CDD says at least 39 people have been killed, erupted late last month after the country’s electoral commission declared Frelimo’s presidential candidate Daniel Chapo the winner of the October 9 polls — in which voters picked the members of parliament as well as the president — with 71 per cent of the vote.

Opposition candidate Venâncio Mondlane, backed by the Podemos party, took 20.3 per cent of the vote, the commission said. Mondlane’s own parallel tally had given him a majority.

Widespread claims that the election was rigged were underscored by the EU observer mission, which said it had witnessed “irregularities during counting and unjustified alteration of election results at polling stations”.

Mondlane, a 50-year-old engineer, has urged supporters to protest against the election results, culminating in a march in the capital, Maputo, on Thursday, which he dubbed a “day of liberation”.

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A woman reacts while holding used teargas cannisters after police officers fired at a crowd gathering during a “national shutdown” against the election outcome, at Luis Cabral township in Maputo, Mozambique
A protester in the Mozambique capital Maputo grasps a used tear gas canister after police fired at the crowd © Siphiwe Sibeko/Reuters

The protests on Thursday descended into bloodshed, with footage showing police, as well as unidentified individuals in plain clothes with rifles, on the streets of the capital Maputo and protesters cowering or hiding in homes. Five people were killed in the city, the CDD said, adding to 34 killed by security forces during other protests over the past two weeks.

The authorities have also periodically shut down internet access and blocked social media over the past two weeks.

“There are tanks rolling in the streets, and people without uniforms carrying rifles and shooting to kill . . . who apparently belong to the police’s investigating arm. They shouldn’t be there. The streets resemble the site of a civil war,” Nuvunga said.

By Friday, reports suggested the violence had eased, and the South African company Grindrod, which had closed the ports it operates in Maputo as the protests escalated on Thursday, resumed activity.

In recent days, businesses across the country had ground to a halt, with some shops closed to deter looters.

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South Africa, Mozambique’s largest trading partner, closed the Lebombo border post, the main crossing point between the two countries, on Thursday after vehicles were torched on the Mozambique side. On Friday, the border was partially opened again.

Mozambique’s defence minister Cristóvão Chume told reporters earlier in the week that there was “an intention to change the democratically established power”. If it continued, he said, “the armed forces will have to protect the interests of the state”.

Amnesty International described the government response as the country’s “worst crackdown on protests in years”.

“We’re seeing police using military tactics and weapons of war on people who are doing nothing more than protesting against the election results,” Khanyo Farisè, Amnesty International’s director for the region, told the FT. “It sends a chilling message that anyone who exercises freedom of speech will be dealt with.”

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A protester looks on near a burning barricade during a ‘national shutdown’ against the election outcome, in Maputo, Mozambique
A car used as a barricade burns during protests in Maputo on Thursday © Siphiwe Sibeko/Reuters
A police officer carries an injured person during a ‘national shutdown’ against the election outcome, at Luis Cabral township in Maputo, Mozambique
Police carry an injured protester away amid a crackdown on demonstrations in which 39 people have died © Siphiwe Sibeko/Reuters

She said the death toll, along with the estimated 2,700 people detained in recent weeks and hundreds injured, was likely to be a vast underestimate.

“Yesterday, we saw the police shooting rubber bullets at kneeling protesters who had their hands in the air. Organisations like the African Union and Southern African Development Community need to intervene,” she said.

SADC, a regional inter-governmental body, plans to discuss the crisis at a special meeting in Harare on November 20.

The EU has yet to release its final report on the election, but said after the protests began that it “condemns the violent dispersal of demonstrators” and urged the authorities to respect protesters’ right to assemble.

With Frelimo showing no sign of softening its approach, tensions were likely to escalate, Nuvunga said. “A lot of people have died already, and more will until this is resolved.”

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inside Donald Trump’s new White House

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Donald Trump seen discussing the election with Elon Musk and Dana White at Mar-a-Lago

Nibbling on crabs, sushi and sugar cookies, some of the richest and the soon-to-be most powerful people in the world waited for the election results on Tuesday night at Mar-a-Lago, Donald Trump’s gilded fortress on the sea.  

At one of the tables, Trump sat with Elon Musk, the billionaire technology executive, and Dana White, chief executive of the Ultimate Fighting Championship.

Hours before the final outcome was established, Musk decided to call the whole race. “Game, set and match,” he posted on X, the platform he owns, to his 200mn followers, at 10.32pm. 

The next day, after it was confirmed that the Republican had defeated Kamala Harris, Trump and Musk ate together on the terrace of the resort, with Musk wearing a T-shirt of astronauts walking on the moon with Mars in the distance. 

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“Novus Ordo Seclorum,” Musk wrote on X, the Latin expression for “a new era is born”.

Amid the jubilant scenes at Mar-a-Lago, there were plenty of signs about how a second Trump presidency might be different than the first one — and, in particular, just how changed his new inner circle will be.

The 78-year-old Republican appears to be even more influenced by his billionaire donors and allies than he was during his first term in office — particularly Musk. He is also more willing to embrace the ideology of the politically ascendant new American right, and more determined to press ahead with his aggressive agenda from his very first day in office.


Trump’s inner circle

Eight years ago, Trump was forced to lean on the Republican establishment for counsel: this time, the group of individuals who have his ear are largely Maga loyalists, ranging from his vice-president-elect JD Vance and his eldest son Don Jr to a circle of wealthy allies pitching for plum jobs in the administration.

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On Thursday, Trump made his first big personnel announcement, tapping Susie Wiles, his top campaign strategist and a longtime political operative in Florida, to be the next White House chief of staff.

It marks the opening move in what is expected to be a flurry of personnel announcements over the coming week that will reveal Trump’s team, including his cabinet, as he prepares to move back into the White House on January 20.

Trump’s goal will be to quickly implement policies ranging from the mass deportation of undocumented immigrants to sweeping tax cuts and across-the-board tariffs on imports that he promised on the campaign trail, along with exacting retribution against his political opponents.

At this stage in 2016, after defeating Hillary Clinton, many in Trump’s entourage were political novices who were unprepared for the task of building a new government. Trump eventually turned to his then vice-president-elect, Mike Pence — a former governor and member of Congress with deep roots in the Republican party — to run his transition operation. 

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Donald Trump seen discussing the election with Elon Musk and Dana White at Mar-a-Lago
Donald Trump on election night with Ultimate Fighting Championship chief Dana White, centre, and Tesla chief Elon Musk. Trump appears to be even more influenced by his billionaire donors and staunch allies than in his first term © Elon Musk/X

He also tapped Reince Priebus to be chief of staff, Steven Mnuchin as treasury secretary and Rex Tillerson for secretary of state — all figures who were palatable to traditional business groups and the national security apparatus, but whom he did not know particularly well.

Trump has come to regret those choices for restraining the populist agenda he really wanted to pursue and has been desperate to avoid that scenario again.

“It was a free-for-all. Nobody expected Trump to win,” says John Feehery, Republican former congressional aide now at EFB Advocacy, a consultancy, about the aftermath of the 2016 election.

“People are now understanding that instead of pursuing their own visions, they’re trying to pursue Trump’s vision.”


It is not unusual for chief executives and business leaders to have close access to politicians, especially during a campaign, but Musk’s proximity to Trump has been especially remarkable — and a sign that the next administration may have a distinctively plutocratic element to it.

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Musk publicly endorsed Trump, bankrolled a Super Pac that spent $172mn on the 2024 election, hosted him on X for a lengthy conversation, and canvassed the crucial state of Pennsylvania, which ended up flipping to Trump.

In return, Trump has said he will appoint the Tesla and SpaceX chief to a commission that will roll back regulations and drastically cut government spending. Musk has said the election is crucial for his vision of colonising Mars.

“He actually helped Trump get elected. He got his fingernails dirty and got it done,” says Feehery. “The level of his work . . . gives him tons of loyalty from Trump.”

Susie Wiles
Susie Wiles, centre, in Palm Beach on election night. Trump this week appointed his top campaign strategist as the next White House chief of staff © Carlos Barria/Reuters

Their alliance carries big risks in terms of potential conflicts of interest, which Trump allies deny, as well as potential disagreements down the line over policy. But, for now, it seems to be suiting both men.

There are other top executives in Trump’s new orbit. Two billionaires are chairing his transition team. Personnel is being led by Howard Lutnick, the long-standing boss of Cantor Fitzgerald, the financial services firm that lost hundreds of employees in the September 11 attack on the World Trade Center. Lutnick is an old friend of Trump and even once appeared on The Apprentice.

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The transition’s policy programme is being led by Linda McMahon, the former chief executive of World Wrestling Entertainment who is also chair of the America First Policy Institute, a think-tank that has been trying to develop an agenda to support Trump’s ideas.

Both are considered potential cabinet picks — Lutnick for treasury and McMahon for commerce — after writing multimillion dollar checks to the campaign. But other top billionaires in the inner circle are also angling: hedge fund managers John Paulson and Scott Bessent, who was in Palm Beach wearing a pro-Trump pin on his lapel this week, are also in contention for Treasury.


The Trump family will remain influential in the new administration, but this time with a more Maga flavour. 

In 2016, Trump’s daughter Ivanka and her husband Jared Kushner took on senior White House positions. Kushner, who was a Democrat when he was younger, was considered by some foreign governments to be one of the more pragmatic people to deal with amid the chaos of the first Trump term. But neither Ivanka Trump or Kushner are expected to join this administration.

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The most influential family member this year has been Donald Trump Jr, the 46-year-old eldest child. He played an important role in persuading his father to back JD Vance, the Ohio senator, to be his running mate, and he was one of the voices pushing for Trump to engage more with podcasts popular among young men. 

Trump Jr also helped build the campaign’s relationship with Robert F Kennedy Jr — the scion of the Democrats’ most famous family who was at one stage running a third-party bid for the presidency, before swinging behind Trump. During the campaign, donors got the chance to win a day of falconry together with the two men. “A true Renaissance man,” Trump Jr described Kennedy.

Trump Jr has not always appeared to be his father’s favourite. But more than any other family member, he has been an energetic champion of the new right, including on his own podcast. 

Don Jr and Robert F Kennedy Jr
Donald Trump Jr helped build the campaign’s relationship with Robert F Kennedy Jr. During the campaign, donors got the chance to win a day of falconry together with the two men © robertfkennedyjr/instagram

Although he appears to have little appetite for taking a formal position in the administration, he intends to play an important role in the transition, policing potential appointments for their loyalty. Before the election, he talked about the need to create a “Maga bench” of potential officials and keeping “bad actors” out of the administration, as he believes happened in 2016. 

“Now we know who the real players are, the people who will actually deliver on the president’s message, the people who don’t think that they know better than the duly elected president of the United States,” he told Fox and Friends this week. “I want to make sure that those people are in this administration.”

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Vance, 40, will also play an influential role in setting the direction of the White House. As the youngest vice-president since Richard Nixon served in the role seven decades ago, he is in prime position to shape the future of the Republican party.

He has risen from poverty to become a senator, picking up along the way a Yale Law School diploma, four years in the Marines, Silicon Valley venture capitalist experience under Peter Thiel and a best-selling book, Hillbilly Elegy. He has also helped overturn the GOP’s old country club image.

“We won’t cater to Wall Street. We’ll commit to the working man,” Vance said at the Republican party’s convention this summer.

A person close to Vance said that tech and immigration were two core policy interests; he told the Financial Times in August that Google “ought to be broken up”, but Trump later questioned whether that would be going too far.

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According to Oren Cass, chief economist at the think-tank American Compass and also an FT contributing editor, “Vance has been an integral leader within the new right since its formative stages.”

In August, Trump added Kennedy and Tulsi Gabbard — another Democrat turned Trump supporter — to his transition team. Both were at Mar-a-Lago this week, but it was unclear what kind of role they would get. Kennedy is in “meeting after meeting after meeting. And he dislikes meetings,” says a person close to the Trump campaign.

But Kennedy has been speaking to reporters about potential roles in the new administration in the areas of health and science, vowing to review research on vaccines and calling for the elimination of fluoride from drinking water.

Many of the candidates for top jobs have been present in Palm Beach this week. North Dakota Governor Doug Burgum, a potential pick for energy secretary, was standing right in front of the stage at the victory rally on election night, while former acting national intelligence director Ric Grenell and Tennessee Senator Bill Hagerty — rumoured as top State Department picks — were also spotted around town. Kash Patel, former US defence department chief of staff who could be given a top job in intelligence, was also in attendance at Mar-a-Lago.

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Donald Trump and Melania Trump arrive at the home of John Paulson and Alina de Almeida
Donald and Melania Trump visit the Palm Beach home of hedge fund manager John Paulson and Alina de Almeida, who is engaged to Paulson, earlier this year © Alon Skuy/Getty Images

Amid the speculation, there is little tolerance for anyone who criticised Trump in the past. Trump adviser Tim Murtaugh says former staffers who turned against Trump are “trying to figure out how to pivot for their own professional betterment”. He adds: “We’re all aware of who those people are.”

Even the wealthiest Palm Beach locals worry about the impact of all the well-to-do people coming to pitch for positions.

Thomas Peterffy, the billionaire chair of Interactive Brokers and a Trump donor, who lives two minutes from Mar-a-Lago, laments that his neighbour’s victory will increase road closures on the island.

“I remember, eight years ago, after he got elected, people kept coming and going because he was constantly interviewing people for ambassadorships and various cabinet positions,” says Peterffy. “So, this traffic jam is going to go on for a while.”

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