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EU leaders are considering hitting the US with a €93bn ($107.7bn) package of tariffs in response to Donald Trump’s threats to Nato allies opposed to his campaign to take over Greenland. Another option that will be discussed at an emergency summit in Brussels on Thursday is the to date never-used 'Anti-Coercion Instrument' (ACI), which could limit access to public tenders, investments or banking activity or restrict trade in services, in which the US has a surplus with the bloc, including in digital services. "I'm convinced that [Europe] must not give in," observed Jérémie Gallon, a former French diplomat and current senior managing director at McLarty Associates, a Washington-based international strategic advisory firm. "Resisting a new attempt at humiliation and vassalisation is the only way Europe can finally assert itself as a geopolitical actor."

 

Financial Times

Politico

Reuters

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The UK government plans to announce significant reforms to the Competition and Markets Authority (CMA) this week. The changes will abolish the CMA's panel system, limiting its ability to assess mergers, particularly those involving foreign companies. The reforms aim to streamline the CMA's processes, merging market studies and investigations into a single procedure lasting six to twelve months. Officials claim the reforms will cut delays and provide greater certainty for companies pursuing mergers in the UK. However, critics argue these changes may undermine the independence of merger investigations. "There is a risk in relation to what an interventionist politician could do as it makes the system more vulnerable to political influence and gives far more discretion to the CMA's CEO and board to be more or less interventionist," one regulatory lawyer told Sky News.

 

Sky News

City AM

Businesses worldwide are bracing for a challenging year as 82% fear cross-border investigations, according to Baker McKenzie. Singapore and Hong Kong lead concerns among legal professionals, with 88% and 85% respectively. Trade policy worries are high in Germany and the UK, with 84% expressing concern. A separate report from BCG finds that global policy uncertainty is at an all-time high. Sunny Mann, global chair of Baker McKenzie, noted: "Organisations are more globally connected than ever, yet operating in an increasingly fragmented and unpredictable geopolitical environment."

 

City AM

The UK's Financial Reporting Council (FRC) is resisting pressure from audit firms to abandon its practice of publicly naming companies under investigation, according to the Times. Despite concerns raised during a recent consultation, the FRC is unlikely to change its policy, which allows discretion in naming firms. Noah Law, Labour MP, said that the practice could harm reputations without providing significant transparency. However, some industry voices support the current regime, citing the importance of maintaining public confidence. A spokesman for the FRC said: "Communication of the opening of investigations can be an important part of maintaining public and investor confidence in the integrity of the audit system, but a decision to publish is considered on a case-by-case basis and informed by the public interest."

 

The Times

Ukraine's chief negotiator, Rustem Umerov, has said discussions with US officials regarding the resolution of the war with Russia will continue at the World Economic Forum in Davos. Umerov noted that previous meetings in Florida focused on security guarantees and post-war recovery plans. He said: "We agreed to continue work at the team level during the next phase of consultations in Davos."

 

U.S. News

Latvia’s central bank governor Mārtiņš Kazāks - an ECB vice-president contender - has urged European policymakers not to be “naive” over the fact that the bloc is already “at war” with Russia.

 

Financial Times

One in ten UK business leaders avoids meeting junior colleagues due to fears of false allegations, according to a YouGov survey by global investigations firm Nardello & Co. The study revealed that 25% of leaders consider reputational damage a top concern, with 20% worried about managing wrongful allegations. Alan Kennedy, managing director at Nardello, noted that advancements in AI complicate the challenge of false narratives. Additionally, 42% of businesses are concerned about the reputational impact of data breaches, while 30% cite financial crime as a major threat. Joseph Pochron at Nardello points out that the UK Cyber Security and Resilience Bill, which is expected to be enforced later this year, will force organisations to adopt risk-based cybersecurity measures.

 

The Times

Sweden's Intellego Technologies,  the world's leading manufacturer of ultraviolet indicators, has asked KPMG to extend its forensic investigation into the company's accounting back to 2024. The request comes after the board reported former CEO Claes Lindahl to the police. The company suspects that most revenue transactions in 2025 are questionable, saying that all cash flow for that year should be scrutinised. Intellego plans to restate its financial accounts for 2025.

 

Bloomberg Tax

UK media regulator Ofcom has engaged a security consultancy to protect its staff following online harassment during an investigation into Elon Musk's X. The media regulator's online safety team has faced a wave of abuse, including offensive images generated by X's Grok bot. Ofcom previously hired Control Risks, a firm founded by ex-SAS officers, to enhance employee safety. The recent tender specifies "bespoke external online security checking" to identify and mitigate risks for staff. Ofcom has not commented on the situation.

 

The Sunday Telegraph

Elemental Group, Poland's largest recycling company, is set to invest $800m to establish a copper smelting and refining facility as it responds to Europe's strategic push to secure critical materials and reduce dependence on China. CEO Pawel Jarski revealed that two-thirds of this investment will focus on copper, with the remainder allocated to refining metals for electric vehicle batteries.

 

Bloomberg

Liberty Steel's Dalzell plant in Scotland is unable to produce steel for three Royal Navy warships due to cash flow issues. The mill has not filed accounts for five years and is struggling to buy necessary materials. Sir David Murray, a Scottish metals magnate, has called for government intervention, suggesting he could run the plant profitably with a £50m investment. He said: "It's a terrible error of judgment to remain idle when the British economy should have the capability of rolling wide steel."

 

The Guardian

Nigeria is set to pass legislation that would regulate artificial intelligence and provide regulators with new powers over data, algorithms and digital platforms. The National Digital Economy and E-Governance Bill would mandate greater scrutiny for higher-risk AI systems and require developers to file annual impact assessments. The proposed law would establish ethical standards for transparency, fairness and accountability, and the regulator would be granted powers to demand information, issue enforcement directives and suspend or restrict AI systems that are deemed unsafe or non-compliant.

 

Bloomberg