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Today’s big scoop is on PwC, ie running to contain the fallout from emails released by an Australian Senate committee showing it had used confidential information received while working with the government to advise corporate clients on new anti-tax avoidance rules.
The Big Four firm has sent some of its top executives to Sydney, including global general counsel Diana Weiss and global tax chief Carol Stubbings, according to a person close to the firm familiar with the details.
Australian politicians have called for the partners who received the emails to be named, as well as the customers who benefited from the information. The company is preparing to reach out to affected customers given the likelihood that names will be released in the coming weeks.
The firm is seeking to understand the full extent of partner engagement outside Australia and whether there was a wider cultural issue within the firm, said two people familiar with the situation. Global chairman Bob Moritz said the firm would support partners whose customers were affected, according to an internal memo seen by the Financial Times.
And here’s what I’ll be keeping an eye on over the next few days:
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Economic data: The UK today has flash data on gross domestic product for the first quarter, while France releases its consumer price index for last month.
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Biden hosts Sanchez: Spanish Prime Minister Pedro Sánchez is meeting the US president today at the White House, with Ukraine and defense on the agenda.
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Results: This was reported today by Allianz, Norwegian Air, Richemont and Société Générale.
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Elections: Turkey AND Thailand hold general elections on Sunday, while Albania and Italy have local polls.
How do you think the scandal will affect PwC’s global reputation? Let us know at firstft@ft.com.
Five more top stories
1. Exclusive: EU diplomacy chief warned China ‘will gain geopolitical advantage’ from a Russian defeat in Ukraine and that Brussels must respond to Beijing’s ambitions to build a new world order. Read more from Josep Borrell’s private letter to EU foreign ministers.
2. Exclusive: UBS prioritizes Credit Suisse investment banking integration and cost reduction, while a decision on the future of his Swiss home business is expected within months, according to people involved in the planning. Read more details on how the acquisition is going.
3. Exclusive: Schroders criticized Silver Lake’s planned €2.6 billion takeover bid for Software AG, saying the deal “materially undervalues the company”. The London-based asset manager is the largest external shareholder of the German business software group. Read the full story.
4. The United States and China have held talks to try to stabilize relations between countries, with US National Security Advisor Jake Sullivan meeting top Chinese diplomat Wang Yi in Vienna. The White House has called the discussions “candid, substantial and constructive”.
5. Elon Musk hired a new Twitter CEO. While the billionaire hasn’t named his successor, he has said so it would start in about six weeks.
How well did you manage to keep up with the news this week? Take our quiz.
The big read
© Jens Schlueter/AFP/Getty Images
Germany is throwing billions of euros in subsidies to tech companies in a bid to revive the country’s semiconductor industry. Although there has been massive investment from companies like Intel and Infineon, the level of state support is starting to reach high levels even proponents of investing in chips find it excessive.
We are also reading. . .
Chart of the day
The Bank of England yesterday raised interest rates to the highest level in nearly 15 years. In its latest assessment of the UK’s economic outlook, the central bank too he abandoned his earlier prediction of a recession but he admitted that he underestimated food price increases in his previous forecasts.
Take a break from the news
From a nine-litre watering can to an Hermès yak wool blanket, that’s it 32 essential things from this weekend’s HTSI guest editor Kate Moss.
Additional contributions by Gordon Smith and Emily Goldberg
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