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

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

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

A authorities affect evaluation seen by the Financial Times has put the central estimate for the prices of registering chemicals on a brand new UK database — typically duplicating current registrations with the EU — at £2bn.

The chemicals trade final yr warned that the regime, often known as UK Reach, would value about £1bn. But the federal government now accepts that many extra substances should be registered than beforehand thought. UK corporations spent £500mn complying with the Brussels regime over the earlier decade, successful entry to 27 markets.

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Five extra tales within the information

1. Russia cuts gasoline deliveries to Europe by way of Nord Stream 1 Moscow’s state-owned power group Gazprom will slash gasoline flows by way of its largest pipeline to Germany to a fifth of capability from tomorrow, threatening to depart the continent wanting important 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 traders are nervously inspecting what the collapse of Mario Draghi’s authorities will imply for Italy’s means to hit bold 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 Staff shortages in Europe, delays in plane deliveries from producers and an absence of spare elements will trigger extended disruption, Qatar Airways chief government Akbar Al Baker told the Financial Times. Even as provide bottlenecks ease, demand for air freight continues to be rising.

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

5. South Africa opens up personal energy technology The authorities has enlisted the personal sector in an emergency plan to sort out the worst-ever rolling blackouts in Africa’s most industrialised economic system, scrapping controls on corporations 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 debate Taiwan and what classes from the Ukraine battle would possibly apply to the island.

EU power ministers meet An extraordinary assembly of the bloc’s power ministers takes place in Brussels with the purpose of making a package deal of measures to safe gas provides. FT premium subscribers can learn extra in our Europe Express e-newsletter.

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

Corporate earnings It is peak earnings season. Companies reporting embrace Alphabet, Coca-Cola, Heathrow, LVMH, McDonald’s, Microsoft, UBS, Unilever and Visa. See our Week Ahead electronic mail for the total listing.

US financial knowledge Residential gross sales are estimated to have declined in June, as did shopper confidence in July. The S&P CoreLogic Case-Shiller National Home Price Index will reflect home prices in May. (FT, WSJ)

What else we’re studying

Migrants exploited by understaffed care properties Chronic 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 situations of migrant employee exploitation. Why is that this taking place?

Total’s Patrick Pouyanné will not be backing down The TotalEnergies chief government is endeavor a collection of complicated oil and gasoline developments in difficult elements of the world whilst he pushes billions into clear power and environmental strain on the trade grows. How lengthy can he have it each methods?

HSBC’s previous might not assist its future Sharp minds try to divine the way forward for the financial institution by figuring out how its returns, regulation and capital base would change if it was damaged up, as demanded by shareholder Ping An Insurance. But it’s politics, not metrics, that determine how China acts, writes writer Michael Sheridan — and historical past will not be on HSBC’s facet.

How the Morrisons buyout soured for Goldman Sachs The struggle in Ukraine set off an financial shock that turned the Morrisons mega-deal from a dream ticket right into a nightmare. The grocery store buyout has value underwriting banks tons of of tens of millions 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 in opposition to different main currencies for the reason that begin of the yr. But if the economic 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 drink

Sweat, tears and gasps are all par for the course for the naive shopper of the Bollywood Burner at chef Vivek Singh’s Cinnamon Bazaar in Covent Garden. But there may be little room for pleasure on the earth of aggressive chilli consuming — all you are able to do is wipe your forehead and hope for a sympathetic server.