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FirstFT: EY ‘pauses’ plan to split


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Our top story today is about EY “pausing” its plan to split in two amid fierce partner infighting over the fate of its tax experts.

And ahead of US president Joe Biden’s budget today, scroll down for our in-depth read on how the multitrillion-dollar proposal will sharpen an ideological clash with Republicans in the run-up to the 2024 presidential race.

Apart from that, here’s what I’ll be keeping tabs on today:

  • Results: Aviva, Deutsche Post DHL, Entain, Gap, Geox, Hugo Boss, Informa, JCDecaux, Kier and M&G report. See The Week Ahead newsletter for the full list.

  • Nato meeting: Turkey resumes talks with Sweden and Finland over their bids to join the military alliance.

Thank you for reading FirstFT. We’d love to hear from you at firstft@ft.com.

Today’s top news

1. EY has “paused” its plan to split the firm in two. The head of its US business told partners yesterday that the deal, which would separate the audit and consulting businesses, needed to be reworked. Here’s what is at the heart of the debate.

2. JPMorgan Chase is suing Jes Staley over the Jeffrey Epstein lawsuits, in an attempt to make the former executive liable for penalties the bank might face if it is found to have facilitated the late sex offender’s trafficking crimes. Read more details from JPMorgan’s court filing yesterday.

3. Britain is planning to loosen foreign worker rules to tackle chronic labour shortages, starting with the construction sector. While tackling inactivity in the UK workforce is still a priority, officials acknowledge it will not be enough to fill 1.2mn job vacancies.

  • UK property: House prices are falling across the country with 70 per cent of the most expensive properties selling below asking price, a poll found.

4. The UK will play a bigger role in the Aukus submarine deal than envisaged 18 months ago, sources said. The security pact with the US aims to help Australia secure nuclear-powered submarines to counter China. Read the full story here.

5. The US Federal Reserve is hurtling towards a tough call on interest rates as it decides whether to switch back to more aggressive rises. Here’s why the Fed has a short window to signal its thinking to investors.

News in-depth

US president Joe Biden (left) and House Speaker Kevin McCarthy
US president Joe Biden, left, and House Speaker Kevin McCarthy © FT montage: AP/Getty Images

US president Joe Biden will release a multitrillion-dollar budget plan today, sharpening the contrast with Republicans on taxes, social programmes and defence ahead of his likely re-election campaign launch. A clash of economic ideologies has become increasingly central to the 2024 race.

We’re also reading . . . 

Chart of the day

US women typically earn 82 cents for every dollar earned by men, little changed from the 80 cents they earned 20 years ago, according to research by Pew. Why is corporate America still struggling to close its gender pay gap?

Take a break from the news

The Nairobi Polo Club may not have the luxury brand sponsorships enjoyed by the likes of Florida’s Palm Beach or England’s Cowdray Park, but homegrown talents are leading a surge in popularity, driven by chair Raphael Nzomo’s efforts to make the sport more accessible and inclusive:

Always when you read about polo, it talks about polo being the game of kings and princes and knights and I am none of that. I’m just a hardworking adrenaline freak who was intrigued by the sport and was not daunted

Michelle Morgan rides a horse during a polo tournament at the Nairobi Polo Club, Kenya
Michelle Morgan rides a horse during a polo tournament at the Nairobi Polo Club, Kenya © Eduardo Soteras Jalil/Financial Times

Additional contributions by Emily Goldberg and Amy Bell

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