LONDON/MILAN: Italian financiers who handle some of their country’s biggest deals out of London are moving to Milan, lured by bumper tax breaks at a time of deep uncertainty about Brexit, sources familiar with the plans said.
Investment bankers making the switch include Goldman Sachs’ co-head of Italy Francesco Pascuzzi, who also co-heads the global power and infrastructure team, and is looking to move early next year, the sources told Reuters.
Goldman and JPMorgan have started looking for new offices in Milan as their current bases, in the bustling heart of Milan, behind La Scala theater, are too small to house those seeking to relocate.
Goldman has about 20 people on its payroll in Milan – Italy’s financial capital – but expects headcount to double by 2019 as a result of Italian bankers returning from London, said the sources who declined to be named as the plans are confidential.
JPMorgan, which has a much bigger presence of about 160 staff, aims to significantly increase that number, they added.
“Hiring bankers from London used to be hard, no one was too keen to relocate as London was the place to be in finance. But things have changed,” said Leopoldo Attolico, the Italy country manager for Citi, which has 200 Milan staff and expects some workers to seek relocation from London.
“Now there is a sense of insecurity among non-UK nationals working in London and we have seen more interest in relocating to Milan, also thanks to new fiscal incentives.”
For those returning, Italy is offering significant perks, including a 50 percent income tax break. There is no mass exodus, however, with only dozens of Italians choosing to relocate so far.
But the shift points to a growing fragmentation of the European investment banking sector, which has been almost exclusively concentrated in London for the past 20 years.
As Brexit nears, more financiers are expected to shift to their home countries or to other financial hubs like Frankfurt and Paris. This would increasingly spell the end of a model that has allowed banks to streamline operations and costs by covering European markets out of Britain.
“You don’t move back to Italy to get a tax break, but it’s a good incentive when you’re thinking about your next step,” said former DBAY investment adviser Raffaele Petrone who returned to Italy in February to join private equity firm Armonia SGR.
Antonino Mattarella, nephew of Italian president Sergio Mattarella, is also among bankers making the switch. In February the 38-year-old, who spent 12 years in London at Goldman Sachs, became Bank of America’s Italy head in Milan.
Some private equity and hedge fund executives have shifted too.
Giuseppe Prestia, partner at Charterhouse, has just relocated to Milan after handling the private equity house’s Italian investments out of London for 13 years, and his firm is considering opening its own base in Italy, according to the sources.
London-based buyout funds Cinven and Advent have started beefing up their Milan subsidiaries, with Advent director Francesco Casiraghi being the first to relocate, they said.
Over the past two decades, thousands of graduates have left Italy due to a lack of work and career prospects, with London a favorite destination.
In a bid to reverse this brain drain the government has introduced the 50 percent, five-year income tax break for high-skilled Italian workers returning from abroad, as well as a flat tax rate of €100,000 on foreign income aimed at luring the wealthy of all nationalities.
Fabrizio Pagani, chief of staff for Italy’s finance minister, has been organizing international events to promote Milan as a financial center. “We have seen a lot of interest around these new fiscal policies, especially the one offering a 50 percent tax holiday,” he said.
Milan still has a long way to go to come close to rivaling London or New York. Its share of global foreign currency trading is 0.3 percent compared with 36.9 percent in London, according to the Bank for International Settlements, while Italy lags Britain, France and Germany for investment banking fees.
But there are other attractions for affluent financiers.
Known as a hub for world-class design, fashion and food, the city of 1.3 million people boasts 17 Michelin-starred restaurants among about 7,000 bars, cafes and eateries. It is also marketing itself as a modern banking center with the newly developed Porta Nuova financial district reshaping the skyline.
“More than €6 billion has been invested in office space in Italy over the past 24 months, a significant part of which went to Porta Nuova,” said Manfredi Catella, CEO of real estate investment firm Coima.
Apartments in prime areas like the Brera district cost about $12,000 per square meter versus an average of $25,000 in London’s exclusive Mayfair.
“For someone from London buying in Milan is like going to the supermarket,” said Vincenzo Albanese, CEO of estate agency Sigest.
Albanese said financial-sector workers in London had been sounding out the Milan property market over the past year with top-floor terraced apartments in high demand.
International schools are also reporting a pick-up in interest.
“We had a lot of interest from Italians working in London who decided it was time to come back. This has been a trend since Brexit,” said Chris Greenhalgh, principal at the British School of Milan.
Greenhalgh said Milan’s municipality recently gathered all international schools and asked them to provide details about their capacity as part of a pitch to lure people from London.
St. Louis School recently added a third school to its Milan network in expectation of a boom in demand from returning Italians, converting a former monastery into a 600-place school.
Ahead of Brexit, tax perks tempt Italian bankers back to la dolce vita
Ahead of Brexit, tax perks tempt Italian bankers back to la dolce vita
Algeria ‘seeking to humiliate France,’ interior minister says
- Algeria won independence from France in 1962 after a ferocious seven-year war that is still the subject of trauma for both sides
NANTES, France: Algeria is trying to humiliate France, France’s Interior Minister Bruno Retailleau said on Friday, after several Algerian influencers were arrested for inciting violence in a growing crisis between Paris and its former colony.
Four Algerian influencers supportive of Algerian authorities have been arrested in recent days over videos that are suspected of calling for violent acts in France.
Meanwhile, Algeria has also been holding on national security charges French-Algerian novelist Boualem Sansal, a major figure in modern francophone literature, who was arrested at Algiers airport in November.
“Algeria is seeking to humiliate France,” Retailleau said on a visit to the western city of Nantes.
“Algeria is currently holding a great writer — Boualem Sansal — who is not only Algerian but also French. Can a great country, a great people, allow itself to keep in detention for the wrong reasons, someone who is old and sick?“
Turning to the influencers, he said it was “out of the question to give a free pass to these individuals who spread hatred and anti-Semitism.”
“I think we have reached an extremely worrying threshold with Algeria,” he said, adding France “cannot tolerate” an “unacceptable situation.”
“While keeping our cool ... we must now consider all the means we have at our disposal regarding Algeria,” he added.
One of those arrested is “Doualemn,” a 59-year-old influencer detained in the southern city of Montpellier after a video posted on TikTok.
He was deported on a plane to Algeria on Thursday afternoon, according to his lawyer, but was sent back to France the same evening as Algeria had banned him from its territory.
On Thursday, Lyon prosecutors said Sofia Benlemmane, a Franco-Algerian woman in her 50s, was also arrested.
Followed by more than 300,000 people, she is accused of spreading hate messages and threats against Internet users and opponents of the Algerian authorities, as well as insulting statements about France.
Arrested in Brest on Jan. 3, Youcef A., 25, known as “Zazou Youssef” on TikTok, will be tried on Feb. 24 on charges of justifying terrorism.
Placed in pretrial detention, he faces seven years in prison if convicted.
And “Imad Tintin,” 31, was taken into police custody on Saturday in Grenoble for a video, since removed, in which he called for “burning alive, killing and raping on French soil.”
He will be tried on March 5 for incitement to acts of terrorism.
Algeria won independence from France in 1962 after a ferocious seven-year war that is still the subject of trauma for both sides.
Riyadh prepares for 2nd annual Saudi Elite Hockey Championship
- 80 players from 8 teams will battle it out at the Prince Faisal bin Fahd Olympic Complex on Jan. 17 and 18
- Najd Falcons were crowned winners of the inaugural event last year, ahead of runners-up Alittihad Club
RIYADH: Final preparations are underway for the second annual Saudi Elite Hockey Championship at the Prince Faisal bin Fahd Olympic Complex in Riyadh next week.
Eight teams, featuring a total of 80 players, will battle it out on Jan. 17 and 18: defending champions Najd Falcons, last year’s runners-up Alittihad Club, Alshabab Club, Jubail Buraq, Naqi, UTSC, Arab Legends and Hamra Legends.
The event has been organized under the supervision of the Saudi Hockey Federation, which said the championship represents a significant step in the development of hockey, in line with the wider sports renaissance in the Kingdom as part of efforts to enhance quality of life and contribute to the goals of the Vision 2030 plan for national development and diversification.
Meta nixes diversity and inclusion program as it prepares for second Trump administration
The move, which was first reported by Axios, comes on the heels of the social media giant’s decision to end its third-party fact-checking program and scale back policies on hate speech and abuse.
Citing an internal memo sent to employees, Axios said the Menlo Park, California-based tech giant said the US Supreme Court “has recently made decisions signaling a shift in how courts will approach DEI. … The term ‘DEI’ has also become charged, in part because it is understood by some as a practice that suggests preferential treatment of some groups over others.”
In practice, this means Meta will no longer have a team focused on diversity and inclusion and the company said it will instead “focus on how to apply fair and consistent practices that mitigate bias for all, no matter your background.”
The company will also end it’s “diverse slate approach” to hiring, which meant that a diverse pool of candidates was considered for every open position.
Other companies that have ended DEI programs recently include McDonald’s, automaker Ford, Walmart and farm equipment maker John Deere.
West Bank family wants justice for children killed in Israel strike
- Israeli troops or settlers have killed at least 825 Palestinians in the territory, according to Health Ministry figures
TAMMUN, Plestinian Territories: Batoul Bsharat was playing with her eight-year-old brother Reda in their village in the occupied West Bank. Moments later, an Israeli drone strike killed him and two of their cousins.
“It was the first time in our lives that we played without arguing. It meant so much to me,” the 10-year-old said as she sat on the concrete ledge outside the family home in the northern village of Tammun where they had been playing on Wednesday.
At her feet, a crater no wider than two fists marked where the missile hit.
The wall behind her is pockmarked with shrapnel impacts, and streaks of blood still stain the ledge.
Besides Reda, Hamza, 10, and Adam, 23, were also killed.
The Israeli army said on Wednesday that it had struck “a terrorist cell” in Tammun but later promised an investigation into the civilian deaths.
Batoul puts on a brave face but is heartbroken at the loss of her younger brother.
“Just before he was martyred, he started kissing and hugging me,” she said.
“I miss my brother so much. He was the best thing in the world.”
Her cousin Obay, 16, brother of Adam, was the first to come out and find the bodies before Israeli soldiers came to take them away.
“I went outside and saw the three of them lying on the ground,” he said. “I tried to lift them, but the army came and didn’t allow us to get close.”
Obay said his elder brother had just returned from a pilgrimage to Makkah.
“Adam and I were like best friends. We had so many shared moments together. Now I can’t sleep,” he said, staring into the distance, bags under his eyes.
Obay said the soldiers made him lie on the ground while they searched the house and confiscated cellphones before leaving with the bodies on stretchers.
Later on Wednesday, the army returned the bodies, which were then laid to rest. On Thursday, Obay’s father, Khaireddin, and his brothers received condolences from neighbors.
Despite his pain, he said things could have been worse as the family home hosts many children.
“Usually, about six or seven kids are playing together, so if the missile had struck when they were all there, it could have been 10 children,” he said.
Khaireddin was at work at a quarry in the Jordan Valley when he heard the news. Adam had chosen to stay home and rest after his pilgrimage to Makkah.
He described his son as “an exceptional young man, respectful, well-mannered and upright,” who had “nothing to do with any resistance or armed groups.”
Khaireddin, like the rest of the Bsharat family, said he could not comprehend why his home had been targeted.
“We are a simple family, living ordinary lives. We have no affiliations with any sides or movements.”
Violence has soared in the West Bank since war broke out in Gaza with the Hamas attack of Oct. 7, 2023.
Israeli troops or settlers have killed at least 825 Palestinians in the territory, according to Health Ministry figures.
As the Israeli army has stepped up its raids on West Bank cities and refugee camps, it has also intensified its use of air strikes, which were once a rarity.
A day before the Bsharat home was hit, a similar strike had struck Tammun.
Khaireddin regrets that the army made “no apology or acknowledgment of their mistake.”
“This is the current reality — there is no accountability. Who can we turn to for justice?“
US hits Russian oil with toughest sanctions yet in bid to give Ukraine, Trump leverage
- US sanctions seen costing Russia billions of dollars a month
- US official sees no danger of global crude oil shortage
WASHINGTON/NEW DELHI/LONDON: US President Joe Biden’s administration imposed its broadest package of sanctions so far targeting Russia’s oil and gas revenues on Friday, in an effort to give Kyiv and Donald Trump’s incoming team leverage to reach a deal for peace in Ukraine.
The move is meant to cut Russia’s revenues for continuing the war in Ukraine that has killed more than 12,300 civilians and reduced cities to rubble since Moscow invaded in February, 2022.
Ukrainian President Volodymyr Zelensky said in a post on X that the measures announced on Friday will “deliver a significant blow” to Moscow. “The less revenue Russia earns from oil ... the sooner peace will be restored,” Zelensky added.
Daleep Singh, a top White House economic and national security adviser, said in a statement that the measures were the “most significant sanctions yet on Russia’s energy sector, by far the largest source of revenue for (President Vladimir) Putin’s war.”
The US Treasury imposed sanctions on Gazprom Neft and Surgutneftegas, which explore for, produce and sell oil as well as 183 vessels that have shipped Russian oil, many of which are in the so-called shadow fleet of aging tankers operated by non-Western companies. The sanctions also include networks that trade the petroleum.
Many of those tankers have been used to ship oil to India and China as a price cap imposed by the Group of Seven countries in 2022 has shifted trade in Russian oil from Europe to Asia. Some tankers have shipped both Russian and Iranian oil.
The Treasury also rescinded a provision that had exempted the intermediation of energy payments from sanctions on Russian banks.
The sanctions should cost Russia billions of dollars per month if sufficiently enforced, another US official told reporters in a call.
“There is not a step in the production and distribution chain that’s untouched and that gives us greater confidence that evasion is going to be even more costly for Russia,” the official said.
Gazprom Neft said the sanctions were unjustified and illegitimate and it will continue to operate.
US ‘no longer constrained’ by tight oil supply
The measures allow a wind-down period until March 12 for sanctioned entities to finish energy transactions.
Still, sources in Russian oil trade and Indian refining said the sanctions will cause severe disruption of Russian oil exports to its major buyers India and China.
Global oil prices jumped more than 3 percent ahead of the Treasury announcement, with Brent crude nearing $80 a barrel, as a document mapping out the sanctions circulated among traders in Europe and Asia.
Geoffrey Pyatt, the US assistant secretary for energy resources at the State Department, said there were new volumes of oil expected to come online this year from the US, Guyana, Canada and Brazil and possibly out of the Middle East will fill in for any lost Russian supply.
“We see ourselves as no longer constrained by tight supply in global markets the way we were when the price cap mechanism was unveiled,” Pyatt told Reuters.
The sanctions are part of a broader effort, as the Biden administration has furnished Ukraine with $64 billion in military aid since the invasion, including $500 million this week for air defense missiles and support equipment for fighter jets.
Friday’s move followed US sanctions in November on banks including Gazprombank, Russia’s largest conduit to the global energy business, and earlier last year on dozens of tankers carrying Russian oil.
The Biden administration believes that November’s sanctions helped drive Russia’s rouble to its weakest level since the beginning of the invasion and pushed the Russian central bank to raise its policy rate to a record level of over 20 percent.
“We expect our direct targeting of the energy sector will aggravate these pressures on the Russian economy that have already pushed up inflation to almost 10 percent and reinforce a bleak economic outlook for 2025 and beyond,” one of the officials said.
Reversal would involve congress
One of the Biden officials said it was “entirely” up to the President-elect Trump, a Republican, who takes office on Jan. 20, when and on what terms he might lift sanctions imposed during the Biden era.
But to do so he would have to notify Congress and give it the ability to take a vote of disapproval, he said. Many Republican members of Congress had urged Biden to impose Friday’s sanctions.
“Trump’s people can’t just come in and quietly lift everything that Biden just did. Congress would have to be involved,” said Jeremy Paner, a partner at the law firm Hughes Hubbard & Reed.
The return of Trump has sparked hope of a diplomatic resolution to end Moscow’s invasion but also fears in Kyiv that a quick peace could come at a high price for Ukraine.
Advisers to Trump have floated proposals that would effectively cede large parts of Ukraine to Russia for the foreseeable future.
The Trump transition team did not immediately respond to a request for comment about the new sanctions.
The military aid and oil sanctions “provide the next administration a considerable boost to their and Ukraine’s leverage in brokering a just and durable peace,” one of the officials said.
