Good morning and welcome back. In today’s newsletter:
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Top Goldman Sachs lawyer Kathy Ruemmler to resign over Epstein links
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Schroders boss reassured UK Treasury ahead of £9.9bn US takeover
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Trump plans to roll back tariffs on metal and aluminium goods
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How London unwittingly killed housebuilding
We begin with Goldman Sachs general counsel Kathy Ruemmler, who said she will resign this summer after documents released by the US Department of Justice revealed the extent of her ties with sex offender Jeffrey Epstein.
What we know: Ruemmler told the FT that she would exit the Wall Street firm on June 30, saying: “I made the determination that the media attention on me, relating to my prior work as a defence attorney, was becoming a distraction.”
Her statement comes after documents showed she held extensive discussions with Epstein between 2014 and 2019, long after he pleaded guilty in 2008 to state charges of soliciting prostitution from a minor. Ruemmler joined Goldman in 2020.
Exit plans: Ruemmler’s decision to leave Goldman represents one of the most high-profile corporate downfalls from the disclosures of Epstein’s emails, which have reverberated from Wall Street to Westminster. Read the exclusive story.
Here’s what else we’re keeping tabs on today and over the weekend:
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Economic data: The EU publishes fourth-quarter GDP figures. January inflation data is due in the US.
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Munich conference: Prime Minister Sir Keir Starmer is set to make the case for the UK and its western allies to forge a multinational defence initiative at the annual security gathering.
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Ethiopia: The Italia-Africa summit in Addis Ababa begins today with Italy’s Prime Minister Giorgia Meloni scheduled to speak tomorrow.
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Results: Capgemini, Moderna and NatWest report earnings.
How well did you keep up with the news this week? Take our quiz.
Five more top stories
1. Schroders’ chief executive called the Treasury ahead of announcing its £9.9bn sale to US fund group Nuveen to reassure Downing Street of its commitment to the UK’s capital markets. The asset manager yesterday said that its board had backed a 612p-a-share offer from the Chicago-based investment firm.
2. Exclusive: US President Donald Trump is planning to scale back some tariffs on steel and aluminium goods as he battles an affordability crisis that has sapped his approval ratings ahead of November’s midterm elections. Read the exclusive story.
3. Exclusive: Bank executives are making a last-ditch push to dissuade the UK Treasury from appointing the former senior US financial regulator Michael Hsu as the next chief supervisor of British lenders and insurers, according to people briefed on the situation. Read the full story.
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Pay rise: Citigroup has increased Jane Fraser’s remuneration by nearly a quarter to $42mn, making her among the best paid chief executives at a Wall Street bank.
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Director term limits: Recent boardroom shuffles at FTSE 100 companies have given rise to renewed pressure for a review of the UK’s corporate governance code.
4. Exclusive: The co-founder of luxury concierge group Quintessentially is battling accusations of rape and financial misconduct in a series of lawsuits in California. Allegations against Aaron Simpson range from sexual assault and sex trafficking to money laundering and tax evasion, court filings show.
5. Exclusive: PwC UK received 60,000 applications for 2,000 entry-level places last year as graduates hunt for roles in a white-collar jobs market under threat from AI. But the Big Four accounting firm also said it will not automate some junior work.
News in-depth
As mass protests have rocked Iran in recent years, Reza Pahlavi, son of the former Shah, has launched a campaign to position himself as leader-in-waiting. It follows a years-long attempt by Pahlavi to expand his public profile.
We’re also reading . . .
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Air France-KLM warning: The airline group says it will be forced to halve its Asia flights due to EU climate rules that put it at a “significant competitive disadvantage” against rivals.
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Is Cuba next?: The communist regime is more isolated than ever and fuel supplies are dwindling. Will pressure from Trump cause Havana to buckle?
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Tech sovereignty push: Google’s top legal officer has warned that the EU risks undermining its own competitiveness drive by putting curbs on US groups.
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Financial street fight: The battle between crypto groups and banks over stablecoin rules is splitting Trump’s base, writes Gillian Tett.
Chart of the day
John Burn-Murdoch looks at the factors that have slowed construction of new houses in London as policy and regulations have squeezed the industry.
Take a break from the news . . .
It’s not too late to make Valentine’s Day plans. FT correspondents and writers share their top romantic spots in some of the world’s most alluring destinations.
Read the full article here