FirstFT: UK chemicals sector hit by £2bn Brexit red tape

Britain’s chemical substances sector faces a £2bn hit from post-Brexit red tape, twice the price of preliminary business estimates, as the federal government units up its personal regulatory regime, ministers have warned.

Regardless of Liz Truss and Rishi Sunak promising to “axe EU crimson tape” through the Tory management marketing campaign, the price of forms after leaving the bloc is mounting.

A authorities influence evaluation seen by the Monetary Instances has put the central estimate for the prices of registering chemical substances on a brand new UK database — usually duplicating current registrations with the EU — at £2bn.

The chemical substances business final yr warned that the regime, often known as UK Attain, would price about £1bn. However the authorities now accepts that many extra substances should be registered than beforehand thought. UK firms spent £500mn complying with the Brussels regime over the earlier decade, successful entry to 27 markets.

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5 extra tales within the information

1. Russia cuts fuel deliveries to Europe by way of Nord Stream 1 Moscow’s state-owned vitality group Gazprom will slash gas flows by means of its largest pipeline to Germany to a fifth of capability from tomorrow, threatening to go away the continent wanting vital provides forward of winter. Russia had already lowered deliveries to 40 per cent final month.

2. Italy’s entry to share of EU Covid fund in query European governments and buyers are nervously analyzing what the collapse of Mario Draghi’s authorities will imply for Italy’s skill to hit formidable reform milestones and unlock tranches of the EU’s €800bn Covid restoration fund — of which Rome is the largest recipient.

3. Qatar Airways boss: aviation faces years of disruption Employees shortages in Europe, delays in plane deliveries from producers and a scarcity of spare elements will trigger extended disruption, Qatar Airways chief govt Akbar Al Baker told the Financial Times. Whilst provide bottlenecks ease, demand for air freight remains to be rising.

4. Ex-Goldman banker accused of passing inside tricks to squash accomplice US authorities accused New York-based Brijesh Goel of passing sensitive market information to his squash accomplice, in certainly one of a collection of insider buying and selling circumstances introduced by federal prosecutors yesterday.

5. South Africa opens up non-public energy technology The federal government has enlisted the private sector in an emergency plan to sort out the worst-ever rolling blackouts in Africa’s most industrialised financial system, scrapping controls on firms producing their very own energy outdoors the damaged Eskom monopoly.

The day forward

Indo-Pacific army chiefs convention Attendees in Sydney as we speak and tomorrow embrace US army chief Mark Milley and Admiral John Aquilino, head of US Indo-Pacific command, who’re anticipated to discuss Taiwan and what classes from the Ukraine battle would possibly apply to the island.

EU vitality ministers meet A unprecedented assembly of the bloc’s vitality ministers takes place in Brussels with the purpose of making a package deal of measures to safe gasoline provides. FT premium subscribers can learn extra in our Europe Express newsletter.

GMB in Scotland votes to strike The union closes a ballot of just about 10,000 council employees for industrial motion this summer season over a pay dispute.

Company earnings It’s peak earnings season. Corporations reporting embrace Alphabet, Coca-Cola, Heathrow, LVMH, McDonald’s, Microsoft, UBS, Unilever and Visa. See our Week Ahead email for the total listing.

US financial knowledge Residential gross sales are estimated to have declined in June, as did client confidence in July. The S&P CoreLogic Case-Shiller Nationwide House Value Index will reflect home prices in Could. (FT, WSJ)

What else we’re studying

Migrants exploited by understaffed care properties Persistent underfunding of the social care sector has led to recruitment issues, with enforcement officers and regulators telling Sarah O’Connor they’re discovering an increase in cases of migrant employee exploitation. Why is this happening?

Whole’s Patrick Pouyanné is just not backing down The TotalEnergies chief govt is endeavor a collection of complicated oil and fuel developments in difficult elements of the world whilst he pushes billions into clear vitality and environmental strain on the business grows. How long can he have it both ways?

HSBC’s previous might not assist its future Sharp minds are attempting to divine the way forward for the financial institution by understanding how its returns, regulation and capital base would change if it was damaged up, as demanded by shareholder Ping An Insurance coverage. However it’s politics, not metrics, that determine how China acts, writes author Michael Sheridan — and historical past is just not on HSBC’s facet.

How the Morrisons buyout soured for Goldman Sachs The warfare in Ukraine set off an financial shock that turned the Morrisons mega-deal from a dream ticket into a nightmare. The grocery store buyout has price underwriting banks a whole bunch of thousands and thousands of kilos and now symbolises the excesses of the cheap-money period.

Is the greenback about to take a flip? The US greenback has risen greater than 10 per cent towards different main currencies because the begin of the yr. But when the financial system weakens and inflation rises, the Federal Reserve is more likely to pull the brakes and the dollar will reverse, writes professor Barry Eichengreen.

Food and drinks

Sweat, tears and gasps are all par for the course for the naive client of the Bollywood Burner at chef Vivek Singh’s Cinnamon Bazaar in Covent Backyard. However there may be little room for satisfaction on the earth of competitive chilli eating — all you are able to do is wipe your forehead and hope for a sympathetic server.