The US Federal Trade Commission has filed a lawsuit against biotech company Amgen, seeking to block its $28.3bn acquisition of Horizon Therapeutics. The FTC argues that the deal could cause price hikes of between 40% and 60% for a range of drugs including cinacalcet, used to treat kidney disease, which is produced by the two companies. The antitrust regulator also warned of "rampant consolidation" in the pharmaceutical industry and called for greater scrutiny of mergers and acquisitions.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
The British government's plan is to fight the next election having successfully delivered on its five pledges to the electorate, according to Inside Politics. However, the government is far from keeping those pledges and, unless something changes, its election argument will be “Hey! Two out of five ain’t bad!” The one thing the Conservatives could do to make the problem worse is add a sixth pledge that they don't plan to meet, according to the platform. Michael Gove has said that the current level of migration to the UK is causing “inevitable pressure” on housing and public services with Suella Braverman arguing for lower immigration and tighter controls. Yet Jeremy Hunt and various spending departments have called for more migration to help fill vacancies and keep the economy running. Labour is also in the news over plans like gradually prohibiting smoking by increasing the age you can start buying cigarettes, which are thought to increase attention on Conservative targets. The Labour party's policy platform will be hammered out at a meeting of the party’s national policy forum in mid-July.
Car manufacturer Stellantis has warned that it will not manufacture electric vehicles in the UK without changes to the Brexit deal. The parent firm of Citroen, Fiat, Peugeot and Vauxhall, which employs over 5,000 workers in the UK, committed to EV manufacturing at its Luton and Ellesmere Port plants two years ago. It has now told a Commons inquiry into EV battery supply that its UK investments are in the balance because of the trade deal agreed by the UK and the EU. Stellantis called for the UK and EU to keep existing rules until 2027 without this being subjected to tariffs.
Humanitarian rescue efforts in the Mediterranean Sea and beyond have been intentionally delayed by European Union authorities in order to deter refugee arrivals, according to a study published in Security Dialogue. The report details how EU naval operations build delays into their designs, intentionally patrolling areas of the sea where few boats are expected. The report claims that the phase of strategic neglect began in 2017, when EU states withdrew their rescue assets from central Mediterranean resulting in a “rescue vacuum”. A report from Maltese authorities in March 2023 claimed that they ignore "more than 20,000 people in distress; 413 boats with people needing help were not assisted and only three boats were rescued by Malta's armed forces.” The lack of assistance has led to an increased number of deaths in the Mediterranean. Meanwhile, EU member states have shifted surveillance operations to the sky, using drones to search for boats carrying refugees and migrants. The use of “aerial assets under its current strategy has not had a meaningful impact on the death rate,” according to Human Rights Watch.
Stellantis, a major car manufacturer with brands including Vauxhall, Peugeot and Citroen, has warned it may close British factories unless the UK government renegotiates its Brexit agreement with the European Union. The carmaker has committed to making electric vehicles in the UK, but says it is impossible to source enough components locally to meet new rules requiring 45% of component value to originate from the UK or EU. The regulations are required to avoid a ten percent export tariff on EVs. The company warned manufacturing would become “unsustainable” if it could not secure competitive prices, potentially resulting in factory closures.
Experts have suggested that it would be challenging to find businesses that could meet the 45% local component requirements. The production of a battery alone typically represents 40% of an EV’s value. Sir Keir Starmer, leader of the opposition Labour Party, has described the threat as an “existential crisis” for the UK car industry, warning of “800,000 jobs” at risk. The head of the Society of Motor Manufacturers and Traders, Mike Hawes, has called for greater investment in battery production in the UK.
Other companies, including Nissan, have expressed concerns regarding local content regulations. Last year, Nissan and Tesla both warned of the increased costs they may face as a result of rules that will require them to relocate factories or double down on supply chain and procurement strategies to avoid punitive export tariffs.
Greenpeace has said that the UK relies too heavily on lithium battery manufacturing and argued that the move away from the low-carbon market would result in greater global reliance on a small handful of multimillion-dollar mining companies, “where the human and environmental costs are generally high”.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
Discussions are taking place to renew the Black Sea grain deal that allows wartime exports of Ukrainian grain. The deal ends on Thursday, and Russia is requesting more support for its own sales of fertilisers and food. However, a Turkish source claimed to see a high probability that the grain deal would be extended. Meanwhile, leaders of the Group of Seven nations intend to further tighten sanctions on Russia at their summit this week. In addition, fighting continues between Russian forces and Ukrainian rebels.
France is surpassing Britain as a leader in Europe and making progress with its big business investment and tech start-ups. With infamous hurdles such as a 35-hour week, high taxes and lengthy lunches, British business leaders have dismissed the French efforts to improve. This couldn't be further from the truth and France is beginning to outshine great britain through reforms, pro business and pro innovation engagements — wooing global corporations such as Tesla and pharmaceutical giant Pfizer to invest in France.
Regulator Ofwat has increased demands for water companies in England and Wales to invest more into sewage infrastructure, following public pressure to reduce pollution levels in rivers, lakes, and seas. Despite paying out £1.4bn in dividends last year, water providers have been slow behind on spending targets with only three-fifths of the £2.2bn allocated to wastewater infrastructure for 2025 having actually been spent. The increased demand comes just as construction, finance, energy and labour costs are rising, which threatens the delivery of desired investment. Last month, Ofwat made the proposal to reapportion £1.6bn of expenditure planned for 2025 to 2030 to the next two financial years. More than £1bn of this is aimed at reducing the number of annual average spills from storm overflows, which was 301,091 recorded in 2022. The UK’s investment in water infrastructure is also reported to be lagging behind Europe.
Greece's Alexandroupolis port gets $26 million EU funding
Reuters
23-05-17 11:56
Greece has secured €24m ($26m) in funding from the European Union to improve the port of Alexandroupolis in the northern Aegean Sea. The port could become an important hub for energy supplies into Europe, with Greece and Bulgaria investigating a potential pipeline to transport crude oil to Burgas. The funds will be used for dredging work and developing road infrastructure, while an adviser will be appointed to work on a business plan. The Greek government recently called off the sale of a 67% stake in Alexandroupolis, citing its strategic value.
The European Commission is to sign a deal agreeing regulatory co-operation with the UK, signalling improving relations between the two parties since the Northern Ireland trade dispute was settled earlier this year. The draft memorandum of understanding will lay the groundwork for voluntary regulatory co-operation, and will include the creation of a joint EU-UK Financial Regulatory Forum. The MOU is aimed at enhancing the flow of dialogue when making equivalence decisions, increasing co-operation in international regulatory bodies, and sharing regulatory updates and market analysis. The partnership is expected to be built on a shared commitment to preserve market integrity, financial stability, and protect investors and consumers. Despite the agreement, the memorandum “does not deal with the access of UK-based firms to the single market”, a spokesperson for the commission said, adding that this could still lead to the adoption of equivalence decisions.
Stellantis has become the first carmaker to urge the UK to renegotiate the terms of its Brexit deal. The parent company of car brands including Alpha Romeo, Peugeot, Vauxhall and Chrysler has called for a delay to beefed-up European Union (EU) “rules of origin”, saying that these could lead to it having to close its Ellesmere Port factory. The factory could be forced into closure as electric vans produced there, which comprise over 70% imported components, face a 10% tariff when they are exported to the EU from next year. Stellantis warned rising costs of raw materials, supply chains and the conflict in Ukraine had prevented it from meeting its planned content standards when announcing the expansion of the Cheshire plant in 2021. Car manufacturers across the UK and continental Europe have echoed its concerns over the rules of origin, which they claim will raise costs for EV drivers and reduce uptake.
A crucial deal aimed at averting a global food crisis has been extended. Here’s everything you need to know
CNN
23-05-17 16:38
Russia, Ukraine and Turkey have agreed to extend the UN-brokered Black Sea grain deal which has allowed the safe passage of ships from Ukraine and prevented global food insecurity occuring while Russia blockade vital grain exports. Ukraine is key exporter of grain with it accounting for 10% of the world wheat market, 15% of the corn market, 13% of the barley market, and a key global player in the sunflower oil sector. The agreement has been renewed for a third time for two months as there were fears that it would not be renewed after Russia called for it to be scrapped, citing concerns that a separate agreement with the UN to facilitate shipments of its own foodstuffs and fertilisers had not yielded results and dissatisfaction with the sanctions imposed by G7 nations. The EU had previously lifted all duties on Ukrainian grain via land to facilitate exports, causing a glut of cheap Ukrainian grain to flow into central and eastern Europe and affecting the sales of local producers.
Carmaker Stellantis has warned that it could leave the UK altogether if electric vehicle (EV) manufacturing becomes unsustainable. One issue is that under Brexit rules, the UK faces 10% tariffs on cars traded with Europe from 2024. Furthermore, new EU rules insist that from January, EVs must source at least 60% of their batteries from the EU and UK, causing the cost of certain key commodities to increase, suggesting the tightening of the rules represents a problem for car makers on both sides of the Channel. The UK also faces energy challenges with steel makers reporting electricity prices twice what they are in other EU countries.
President Joe Biden’s visit to Asia to reassure allies of the US focus on China’s aggressiveness in the region has backfired. The trip, which was originally intended to be a tour of three nations to highlight the US commitment to the Asia region, has been hugely diminished as Biden has cancelled stops in Papua New Guinea and Australia to focus on debt-limit talks with Republicans. Furthermore, there is speculation that if the US defaults on its debt, in conjunction with Biden’s decision to leave Asia early, this would undermine Biden’s message of strength and provide a potentially favourable contrast with China’s President Xi Jinping. Despite this, Biden still plans to attend a Group of 7 meeting in Japan where allies will confront what they call China’s economic pressure on less powerful countries. One foreign diplomat has claimed that skipping the G-7 would undermine a sense of unity towards China.
UK culture secretary, Oliver Dowden, clashed with deputy leader of the Labour Party, Angela Rayner, during the Prime Minister's Questions in Parliament. Dowden compared Rayner and Labour leader Keir Starmer's tense working relationship to that of Phil and Holly of British TV, however, Rayner criticised the "conveyor belt of crisis" in the UK represented by the Conservative Party, calling them "a carnival of conspiracy".
Barclays is said to be planning a major push to grow business in Paris, with the aim of expanding its headcount in the city by around 200 people over the next two to three years. The bank already has around 300 employees in the French capital and plans to move to larger premises next year. In March, Paris overtook London as Europe’s largest stock market with the UK capital now $250bn (£204bn) smaller than the French equivalent. It lost its place as Europe’s largest centre for trading equities for the first time last year when Paris overtook it.
Wales lost 3-0 to Hungary in their first ever Euro Under-17 Championship game on Wednesday. Although Wales started well, Hungary took the lead before half-time and doubled their advantage with 15 minutes left to play. Adam Umathum scored Hungary's third goal, leaving Wales to face Ireland in their next Group A game.
Josep Borrell, the European Union's foreign policy chief, has proposed adding €3.5bn ($3.85bn) to a fund used to finance military aid for Ukraine. The European Peace Facility (EPF) was initially designed to help developing countries buy military equipment but was adapted to include funding for Ukraine after Russia's invasion started in February 2020. The proposed increase in the financial ceiling follows the EPF using far more funding than anticipated, with a budget of €5bn originally planned until 2027. The fund is available for EU countries to claim back a portion of the cost of weapons and ammunition supplied to Ukraine.
