Good morning, completely satisfied new yr and welcome again. In at this time’s publication:
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ECB president Christine Lagarde’s pay is 50% greater than disclosed
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UK monetary regulator closes 100 probes to give attention to high-impact circumstances
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A number of individuals killed after Iranian protests flip violent
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Do you have to actually go away the UK to keep away from inheritance tax?
We start with European Central Financial institution president Christine Lagarde, whose full pay is greater than 50 per cent greater than her disclosed wage, in accordance with a Monetary Occasions evaluation.
What we all know: The pinnacle of Europe’s financial authority earned a complete of about €726,000 in 2024, in accordance with the FT’s calculations, some 56 per cent greater than the “fundamental” wage of €466,000 disclosed by the ECB in its annual report.
This implies Lagarde earns almost 4 occasions greater than the chair of the US Federal Reserve, Jay Powell, whose wage is about by federal regulation and is at present capped at $203,000.
Why it issues: Whereas Lagarde’s full pay is modest in contrast with the chief executives of huge EU firms, the evaluation exposes how restricted wage disclosure stays on the ECB.
The central financial institution isn’t topic to the identical strict guidelines as listed firms within the bloc, which should give a “full and dependable image of the remuneration” of every of their administrators. Olaf Storbeck has the exclusive story.
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Extra Europe information: The area is thus far behind the US in digital infrastructure that it has “lost the internet”, Belgium’s cyber safety chief has warned.
Right here’s what else we’re holding tabs on at this time and over the weekend:
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Financial knowledge: S&P World releases manufacturing buying managers’ indices for France, Germany, Italy, Spain, the Eurozone, the UK and the US.
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South Korea-China relations: South Korean President Lee Jae Myung travels to Beijing on Sunday for a four-day state go to that features talks with Chinese language chief Xi Jinping.
5 extra high tales
1. The UK’s Monetary Conduct Authority has closed 100 investigations with out taking enforcement motion. The unprecedented cull of legacy circumstances highlights a strategic change on the regulator, with the main focus set on fewer but higher-impact cases.
2. A number of individuals have died and dozens have been arrested after protests in Iran turned violent, in accordance with native media, the primary fatalities in days of demonstrations over financial misery. Read the full report.
3. As much as 40 per cent of luxurious items had been bought at a reduction in 2025, hitting income as buyers query the worth of designer merchandise after years of worth rises. Extra customers are turning to outlet shops reasonably than paying full price for branded goods in boutiques.
4. Counties near London, equivalent to Hertfordshire and Surrey, have been most affected by Labour’s transfer to lift VAT on personal college charges, knowledge has proven. Most of England, nevertheless, has not skilled an exodus of private school pupils to the state sector because of the enhance within the levy.
5. Pizza evening within the UK is shifting from the excessive avenue to the grocery store aisle, as buyers select upmarket take-home choices that promise a slice of Italy for lower than the price of a takeaway. The shift comes as chains shut outlets and grapple with falling income.
The Large Learn
China plans to bolster its dominance of world manufacturing regardless of deflation at dwelling and heightened tensions with different buying and selling companions. However what are the prices of doubling down on its export-led growth model?
We’re additionally studying . . .
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Lab monkeys: Costs for the analysis animals in China are set to climb to their highest stage because the Covid-19 pandemic, pushed by surging demand from the biotech sector.
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London IPOs: After hopes of a resurgence in 2025 fell flat, the Metropolis is hoping a lot of flotations will revive the market this yr. Right here is what’s in the pipeline.
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UK inheritance tax: Advisers say extra shoppers are leaving the nation to make the most of residency guidelines and keep away from the levy. Alice Ross asks if it is a wise move.
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Battling tunnel imaginative and prescient: Cognitive blind spots are undermining our capability to see the world as it’s, rather than as we would like it to be, writes Gillian Tett.
Chart of the day
Confronted by mutinous backbenchers, dire ballot scores and predictions of a battering in Could’s native elections, Sir Keir Starmer has each cause to brace himself for a grim 2026. However can the UK financial system, which is heading for decrease inflation and borrowing prices, provide the UK prime minister with any relief?
Participate in a reside Ask an Expert Q&A with Roula Khalaf, editor of the FT, on January 8. Submit your questions on what’s going to form 2026.
Take a break from the information . . .
The Bayeux Tapestry will return to England for the primary time in additional than 900 years. The 70-metre embroidered sketch, an exhilarating depiction of struggle and political transformation, was in all probability stitched by nuns in Canterbury within the 1070s and put in in Bayeux Cathedral in 1077. Jackie Wullschläger tells us concerning the British Museum’s 2026 blockbuster.
