Starmer carves UK financial services out of EU alignment push

Good morning, happy Friday and welcome back. In today’s newsletter:

UK to exclude financial services from EU alignment push
Glencore-Rio Tinto megamerger talks
Iran’s internet blackout
Why smartphone and PC prices are set to rise this year

We begin in the UK, where Prime Minister Sir Keir Starmer says he will exclude the City of London from his push for “closer alignment” with the EU, following lobbying by financial services firms against any return to Brussels rules.

What we know: British government officials told the FT that while ministers wanted “closer co-operation” with the EU on financial services, the prime minister had no intention of trying to reintegrate the sector with the Brussels rule book. Concerns were raised after Starmer’s comment this week that “if it’s in our national interest to have even closer alignment with the single market, then we should consider that”.

Why the City is pushing back: Industry figures say the sector has moved on from the debate about single market access in the aftermath of the 2016 Brexit vote. Steven Fine, chief executive of investment bank Peel Hunt, said the UK now had “significantly less friction” in its regulatory framework than much of Europe. Another City non-executive director said financial services did not need to be included because the EU “needs us more than we need them”. Read the full story.

Here’s what else we’re keeping tabs on today and over the weekend:

Results: J Sainsbury and Unite issue trading updates, while Polestar and TSMC report earnings.
Poland: Farmers are set to protest against the EU-Mercosur trade deal in Warsaw.
South Africa: China will lead joint maritime drills with Brics+ countries today. President Cyril Ramaphosa addresses a rally tomorrow to celebrate the 114th anniversary of the African National Congress party.
Benin: Parliamentary elections are scheduled for Sunday, following a December coup attempt.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. Glencore and Rio Tinto have restarted talks over a potential $260bn megamerger to create the world’s largest mining company, nearly a year after previous discussions between the two collapsed. A race to secure copper is reshaping the sector, with prices hitting a record of more than $13,300 per tonne this week and analysts warning of a supply shortfall.

2. Exclusive: Apollo Global Management is seeking a replacement for its head of Europe operations, its second senior leadership change in quick succession in a region where the US private capital firm is intensifying its activity. Rob Seminara will relinquish the position to move into a global role.

3. Senior politicians should be paid more than £1mn a year to solve “a fundamental problem with the talent in politics,” according to Ryanair chief Michael O’Leary. He also stressed that the budget airline does not “hate” its customers — at least not all of the time. Read the full interview.

4. Prices of smartphones and PCs are set to rise this year, with consumer products hit by a shortage of memory chips caused by the rapid construction of AI data centres. Read the warnings from Arm, Qualcomm and Samsung.

Chinese AI: DeepSeek rival MiniMax soared more than 60 per cent in its trading debut, the latest to tap public markets to fund model development and global expansion.

5. Iran was almost completely cut off from the internet yesterday, according to monitoring groups, as the Islamic republic struggled to contain the most serious wave of protests in years. The demonstrations began in late December after shopkeepers in Tehran shut their stores to protest against rising prices and have since spread across the country.

The Big Read

Montage of Donald Trump against a backdrop of vintage world maps — © FT montage/Getty Images

Trump’s military actions in Venezuela show how US foreign policy has become geared towards securing access to energy and critical minerals. Here’s more on the new era of resource imperialism.

We’re also reading and listening to . . .

Russia’s Venezuelan misadventure: Nicolás Maduro’s capture leaves Vladimir Putin’s costly plans to build an anti-US bulwark in Latin America in tatters.
Trump’s whirlwind week: The US president lurched from capturing Venezuela’s leader to attacking private equity firms in a tumultuous start to 2026.
Unhedged 🎧: Markets are holding up even as geopolitical risks mount. Katie Martin and Rob Armstrong discuss the global economy’s resilience.
Economists face recession: Demand for their work in the US is down as a hiring crunch hits. Soumaya Keynes looks at three causes.

Chart of the day

Data shows the most AI-proof jobs blend quantitative ability with social skills.

Take a break from the news . . .

As the Millennium Seed Bank’s collection nears 2.5bn seeds, its quest to preserve the world’s flora and restore endangered species is more urgent than ever.