Pound touches near 4-year high as Trump rattles dollar
The pound briefly hit its highest level against the dollar for almost four years after markets were unnerved by a report that US President Donald Trump could bring forward the naming of the new head of the US central bank. Sterling rose above $1.37, which is the strongest since October 2021.The dollar weakened after the Wall Street Journal reported Trump had considered naming Jerome Powell's replacement as head of the Federal Reserve by September or October.The US Fed is independent from the government and Mr Powell chairs a committee that decides on interest rates which have remained unchanged this year, prompting a series of angry outbursts from Trump.
On Wednesday, Trump called Mr Powell "terrible" and said he was looking at "three or four people" who could replace him. Mr Powell's term is due to end in May 2026.There are concerns the US president could install someone who is sympathetic to his demands.Earlier this week, Mr Powell told US lawmakers the Fed would wait and see how the American economy reacts if Trump's so-called retaliatory tariffs against a range of countries come into force next month, after being paused until 9 July. The Fed is concerned that the levies, which are paid by the businesses importing the goods, might push up inflation.The US economy shrank in the first three months of this year - the first decline for three years - as government spending fell and imports rose as firms raced to get products into the country before the tariffs went live.JP Morgan, the investment bank, has lowered the chance of the US economy falling into recession this year but at 40% the probability of a slowdown remains comparatively high.Kaspar Hense, a senior portfolio manager at RBC BlueBay Asset Management, said traders were betting the dollar would fall "in this environment, where there is an erosion of institutions".While Kit Juckes, chief FX strategist at Societe Generale, said: "I think the market is pricing in President Trump appointing someone who at least at first sight appears more sympathetic to his cause."Mr Powell was himself a Trump appointee. During Trump's first term in the White House, Mr Powell replaced the then Fed chair Janet Yellen.Trump had criticised Ms Yellen for keeping interest rates too low, stating: "I think she should be ashamed of herself."Ms Yellen went on to become the US Treasury Secretary under President Joe Biden and said she did not think that Trump had a grasp of macroeconomic policy.
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The Guardian
20 minutes ago
- The Guardian
High flyer to pariah: the saga of Epstein-linked banker Jes Staley
In 1999, the future Barclays chief executive Jes Staley was gearing up for his biggest job yet. As head of JP Morgan's private bank, he would be in charge of a sprawling team that managed money and investments for some of the world's richest people. Among them was the mysterious but well-connected billionaire Jeffrey Epstein, with whom he would quickly develop a 'fairly close professional relationship'. Staley was soon holidaying on Epstein's private island, flying on his private plane, and gaining access to an impressive portfolio of ministers, entrepreneurs and royalty. The relationship ended up bolstering Staley's profile on Wall Street and even connecting his daughter to senior figures at Ivy League universities. But it would also help to end his career. In July 2019 Epstein was arrested on child sex trafficking charges, accused of sexually exploiting and abusing dozens of girls at homes in Manhattan and Palm Beach, Florida. Some victims were as young as 14, US prosecutors alleged. Epstein, who was in jail as he awaited trial, was found dead in his prison cell weeks later. The revelations about Epstein led to a media storm, bringing renewed attention to his former friends and business associates, including Staley. Barclays told the Financial Conduct Authority in October 2019 that the pair 'did not have a close relationship' and were last in contact 'well before' Staley took over as CEO four years earlier. But a subsequent FCA investigation, involving a cache of 1,200 emails from JP Morgan, convinced the regulator that it had been misled. The regulator alleged that the pair were indeed close friends and stayed in touch via Staley's daughter for years after he joined Barclays. It was not Staley's first run-in with the FCA, having been fined £642,000 for trying to unmask a whistleblower in 2018. But it was the final straw: he was banned from the holding senior management roles in the City in 2023, leading to him lose about £18m worth of pay. The 68-year-old fought back in an appeal this spring, arguing that he had always been transparent with Barclays and had followed internal legal advice on the letter's phrasing, which was meant to emphasise that he had no knowledge of Epstein's crimes. Judges on Thursday ruled in the FCA's favour, upholding the lifetime City ban. March's two-week tribunal hearing in London also gave the first public account of Epstein's role in Staley's life. This is what the court heard. The pair did not meet by chance, but on the recommendation of JP Morgan's then chief executive, Douglas 'Sandy' Warner, who felt that Epstein – already a client – was someone the newly appointed head of the private bank should know. The two men 'got on well', according to Staley's lawyers, and Epstein's career-boosting potential quickly became clear. He would refer wealthy friends to Staley, many of whom turned into JP Morgan clients. The pair occasionally socialised, Staley said, explaining that he would sometimes swing by Epstein's home in Manhattan for a drink or dinner. And, from 2005, he took his family on the first of a handful of trips to Epstein's private Caribbean island, Little St James. But Staley was adamant that Epstein was never part of his inner circle, was never invited to the family home, any 'milestone birthdays', or 'personal meals in restaurants'. Staley said he had few personal friends and remains a loner. 'From what I recall, Jes didn't have very many friends,' his former chief of staff Sasha Wiggins told the court in March. And Staley said parts of Epstein's life always remained a mystery. 'I really didn't know how much money he had,' Staley said. 'What his background was, was always sort of shrouded.' But by 2006, the mask started to slip when Epstein was arrested after Florida police were tipped off that he was recruiting young girls for massages and sexual encounters. He pleaded guilty to soliciting prostitution from a minor and in 2008 he was sentenced to 18 months in jail. Staley stayed in contact, though, and visited Epstein after his indictment. He said Epstein did not deny that he solicited a prostitute, but maintained that he thought the girls were over 18. 'Obviously he lied to me,' Staley told the court in March. He again visited Epstein in around 2009, when he was on a prison work release programme in Florida. Staley said he reported the visit to JP Morgan, which was reviewing whether to keep Epstein as a client. But emails suggest he had been leaning on the imprisoned Epstein for advice throughout the financial crisis, writing in October 2008: 'I am dealing with the Fed on an idea to solve things. I need a smart friend to help me think through this stuff. Can I get you out for a weekend to help me (are they listening?)' The court heard that Staley turned to Epstein to help connect his daughter – a burgeoning physics major – with scientists and senior professors at Ivy League universities. The financier, who Staley referred to as 'Uncle Jeffrey', would later be invited to her graduation in 2015. Staley stressed that he did not then know of Epstein's crimes. 'Mr Staley said to me once: 'Why would I have introduced my wife and daughters to Mr Epstein if I thought he was a paedophile?'' Wiggins told the court. When Epstein was released on house arrest in July 2009, Staley was one of the four people he emailed to say: 'Free and home.' Staley replied: 'I toast your courage !!!!!' But more cryptic messages between the two stirred the most controversy, including an exchange about Disney princesses in July 2010. 'That was fun. Say hi to Snow White,' Staley wrote. 'What character would you like next?' Epstein asked, to which Staley replied: 'Beauty and the Beast.' 'Well one side is available,' Epstein responded. Staley told the court he was not able to explain the exchange. Months earlier, in September 2009, Epstein emailed a woman to say: 'Jes staley is staying at the berkeley hotel in London tonight.' Staley said he could not recall the reason behind the message. That year Staley's career took another leap, with his promotion to lead JP Morgan's investment bank. Even the chief executive, Jamie Dimon, was singing his praises, telling Fortune magazine: 'Jes has impeccable character and integrity.' The new gig meant Epstein was no longer a direct client. But that did not end their relationship, or Staley's effusive messages. In November 2009, Staley detoured from a work trip to visit Epstein's ranch in New Mexico, replete with a 26,700-square-foot mansion, private airstrip, and seven-bay heated garage. He emailed Epstein in thanks: 'So when all hell breaks lose [sic], and the world is crumbling, I will come here, and be at peace. Presently, I'm in the hot tub with a glass of white wine. This is an amazing place … I owe you much. And I deeply appreciate our friendship. I have few so profound.' In December, months after Epstein's release, the pair finally found time to meet in person. 'I realize the danger in sending this email. But is [sic] was great to be able, today, to give you, in New York City, a long heartfelt hug. To my friend, Thanks. Jes.' At times, their emails were more explicit: discussing sex scandals and lovers. One message, sent from a debutante ball that Staley attended in November 2010, told Epstein that Staley had seen a woman – 'your lover,' Staley said, 'she says u slept with her!!' Epstein separately sent photos, one of which was of a woman in a low-cut ballgown. 'You were with Larry, and i had to put up with …' Epstein wrote. When FCA lawyers suggested that this interaction was a sign that he and Epstein were 'personally close', Staley suggested that such behaviour was not uncommon between people who were 'professionally close – you know, if you've ever worked on a trading floor on Wall Street'. Staley said there were also parts of his life he kept from Epstein, including having sex with a member of Epstein's staff. 'Oftentimes I would go to Epstein's apartment and he would be late, and she and I got the chance to know each other.' This led to sexual intercourse, he said, 'much to my embarrassment today'. The former banker, who has a wife and two daughters, said the confession came at a personal cost. 'I have been honest such that I have put my marriage at risk … I have never shied away from telling the truth about all of this.' The date of the encounter was not disclosed in court, but the FCA revealed that Epstein's former employee had 'carved' Staley out of a settlement she had reached with Epstein's estate. 'I was not aware of that,' Staley told the court. Despite the allegedly secret encounter, Epstein and Staley would send messages declaring their close ties, referring to each other as family. In one exchange in March 2011, Epstein writes: 'Told you −−−− family.' Staley replied with one word: 'Family'. Behind the scenes, Epstein's banking relationship with JP Morgan was starting to unravel. The bank was considering dumping Epstein as a client but was careful about breaching the issue with Staley, saying they were friends. 'He needs to understand the potential backlash to the firm given all the work done to root out clients involved in human trafficking,' an internal memo said. Staley tried to convince the bank's top lawyer to 'hear [Epstein] out', according to a JP Morgan meeting note. He also revealed to Epstein that his transactions were under review. Staley admitted to sharing internal information with Epstein but denied having pushed the bank to keep him as a client. Panic set in by September 2009, when Epstein told Staley that a 'family meeting was required'. Epstein was concerned about an 'abusive reporter', and instructed Staley on how to respond: 'I think your response should be [that] all of the incidents that they raise happened a decade ago, I paid my debt and like everyone else should be given another chance.' Epstein said he had been 'unaware of the full heat that you have taken as a result of our friendship', adding: 'I'm sorry.' The financier hired a London lobbyist for a 2012 campaign to make Staley Barclay's chief executive, dubbed 'Project Jes'. In emails the lobbyist claimed he hoped to convince top-level policymakers, including George Osborne, who was chancellor, and Mervyn King, the Bank of England governor, to support the US banker. Staley said he never knew about the push. Barclays ultimately installed its own head of retail and business banking, Antony Jenkins, whose ousting three years later led to Staley's leadership. In early 2013 Staley left JP Morgan, moving to the hedge fund Blue Mountain Capital. At this point, Staley claimed, his relationship with Epstein started to decline. But the FCA alleged that their communication did not wither, pointing to a string of emails in early 2013 in which the pair discussed dinner plans, new work numbers and planned meet-ups. Staley also kept up an annual tradition of emailing Epstein on New Year's Eve. The declarations of friendship continued in January 2015, when Staley told Epstein: 'The strength of a Greek army was that its core held shoulder to shoulder, and would not flee or break, no matter the threat. That is us.' That year, Epstein was back in the media's crosshairs. An anonymous woman had filed a lawsuit alleging she was repeatedly sexually abused by Epstein between 1999 and 2002, and that he had loaned her out to rich and influential men. By that April, Staley had what he says was his last in-person meeting with Epstein, having again taken his family to visit the financier's private island. 'Thanks for the flight and thanks for the lunch. Your place is crazy, and special … I count u as a deep friend. The girls seemed to enjoy the sail. All the best Jes.' Within months, Staley was taking another stab at the Barclays job, and kept Epstein abreast of developments. Weeks before the appointment, Staley emailed: 'Cross your toes !!!' Staley was back in touch days before receiving his Barclays contract: 'We're very close.' The British tabloids, however, were circling, pouncing on another prominent figure with ties to a convicted sex offender. News of Prince Andrew's relationship with Epstein had caused a media frenzy as early as 2011, years before a disaster BBC interview that led to the prince being forced to step back from public duties in 2019. Days before Staley was confirmed as Barclays' new boss, the Mail on Sunday was chasing up claims that Epstein lobbied Barclays to hire Staley in both 2012 and 2015. Epstein forwarded the newspaper's queries to Staley, who later replied: 'Ok. I'm going to play is [sic] simple. I've known you as a client. I will tell B tomorrow. Let me know if they say something else. But stay away from them. I'm fine.' The article was published with the headline: 'Andrew's billionaire paedophile friend secretly backed new Barclays boss for job'. Staley said he cut contact with Epstein days later, following 'strong advice' from Barclays. 'I telephoned Mr Epstein and told him that we could not ever again have communication, which he accepted. The relationship ended there. I have had no communication with him since then,' Staley told the court. There is no evidence of direct contact between the two men after October 2015, but the FCA alleged they stayed in touch via Staley's daughter until at least February 2017. Emails show that Epstein asked Staley's daughter to ask the newly installed chief executive's opinion on other bankers, tried to connect Staley with royalty in the Middle East, and to ask whether Staley was interested in a post with the US Treasury. Staley said he did not recall any of those conversations, and he did not realise at the time that his daughter and Epstein were still corresponding. The tribunal on Thursday raised concerns in its judgment about Staley's evidence, saying he 'could be inconsistent in his answers when he felt that it would suit his case', adding that he had 'shown no remorse for his conduct'. Judges have sided with the FCA, upholding its City ban and scuppering efforts to restore his reputation. And while the tribunal reduced his penalty by £1.8m to £1.1m, it reflected pay he lost from Barclays as a result of the FCA ruling. It is not clear how much Staley has paid in legal costs trying to challenge the UK regulator. Staley said in a statement: 'I am disappointed by the outcome and the time it took for this process to play out – that was entirely beyond my control. As the tribunal accepted, I was never dishonest. It took years of arguing with the authority and until November 2024 to establish that fact and it took more time for the financial penalty to be reduced by 40%. 'I have worked tirelessly for my prior employers for the entirety of my career. I am proud of the support I gave to many individuals during that career and the strategy I developed to help Barclays when it faced immense challenges. The tribunal recognised what they described as 'my long and distinguished career'.'
Telegraph
26 minutes ago
- Telegraph
Trump rejected invitation to Bezos wedding
Donald Trump rejected an invitation to Jeff Bezos's star-studded Venetian wedding. Mr Bezos, the tech billionaire, was reportedly trying to cosy up to the US president, in what could be seen as an attempt to fill the position of 'First Buddy' vacated by Elon Musk. The Wall Street Journal (WSJ) reported that the 61 year-old, who is preparing for his lavish three-day wedding in Venice, had spoken twice to Mr Trump in the last few weeks. As part of his charm offensive, Mr Bezos extended an invitation to his upcoming nuptials with Lauren Sanchez, the journalist. White House officials confirmed to the WSJ that the invitation had been offered. Mr Trump was not expected to attend the Venice ceremony owing to scheduling conflicts, however. Mr Trump's daughter Ivanka, a friend of Ms Sanchez' is expected to attend, along with her husband, Jared Kushner. Donald Jr, the president's eldest son, is also going. In 2019, Mr Trump mocked Mr Bezos as 'Jeff Bozo' in a dig at the Washington Post, which the billionaire owned. However, the newspaper did not support Kamala Harris in last year's presidential election, breaking a liberal tradition going back decades. In February, the Post refused to run an advert attacking the administration that asked whether Donald Trump or Elon Musk was running the country. Earlier this year, Mr Bezos abandoned plans to display how much Mr Trump's proposed tariffs were costing Amazon customers on each transaction following a direct appeal from the president. Mr Bezos, the founder of Amazon and one of the world's richest men, appears to be trying to exploit Mr Trump's spectacular falling out with Mr Musk, which started at the end of last month. Dave Limp, chief executive of Mr Bezos's space company Blue Origin, has also held talks with Susie Wiles, the White House Chief of Staff, the WSJ reported. There are powerful business reasons for Bezos's approach, notably the possibility of government contracts for Blue Origin. Until now, Elon Musk's SpaceX has dominated the market, spectacularly outstripping Blue Origin in the race to become Nasa's main contractor since the US stopped using the Russians to ferry missions to the International Space Station.
Telegraph
27 minutes ago
- Telegraph
Elon Musk's right-hand man ‘quits Tesla'
One of Elon Musk's closest allies at Tesla has left the company amid a deepening crisis at the electric carmaker. Omead Afshar, a senior executive who has been described as Mr Musk's 'fixer', has stepped down from his role at the company, according to Bloomberg. Mr Afshar joined Mr Musk's company in 2017 and rose to run Tesla's operations in North America and Europe. It was not immediately clear why Mr Afshar had left Tesla. He has boasted of his close relationship with Mr Musk, including their intense work schedule during the troubled production of Tesla's Model 3 Sedan. 'I was with Elon nearly every single day during Model 3 Hell. This included Thanksgiving, Christmas, New Year's Eve, his birthday and nearly missing his brother's wedding,' Mr Afshar recently wrote on X, Mr Musk's social media site. He also oversaw the building of Tesla's factory in Austin, Texas, which is now the company's headquarters. Mr Afshar's departure follows the exit this month of Milan Kovac, Tesla's head of engineering for the company's Optimus robot program. Mr Kovac said he wanted to spend more time with family. They are leaving as Tesla battles a sales slump amid a politically motivated backlash – Mr Musk has been a key supporter of Donald Trump – and fierce competition from Chinese rivals. Chinese giant BYD overtook Tesla to become the world's biggest electric vehicle (EV) manufacturer this year and Skoda sold more EVs than Mr Musk's company in Europe last month. Net income at the company crashed by 71pc to $409m (£297m) in the first three months of the year in what was its least profitable quarter since 2020. Shares have dropped by more than 25pc in the last six months. Mr Musk publicly stepped back from his role in Mr Trump's administration in May following the backlash against Tesla, but stressed that the work of his so-called department of government efficiency (Doge) would continue. But he later lashed out at the president over Mr Trump's spending bill and its implications for America's debt burden. In a sign of the intensity of the backlash against Mr Musk over his association with Mr Trump, a group of French drivers sued the company this month, claiming the billionaire was turning their vehicles into 'extreme Right' symbols.
