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Financier Anthony Scaramucci, the White House communications director, has left his role after a brief and explosive 10-day stint, as John Kelly, Donald Trump’s new chief of staff, moved to stamp his authority on an unruly administration.
In his first public act, Mr Kelly removed Mr Scaramucci after the former hedge fund executive openly attacked White House colleagues in vulgar terms.
Sarah Huckabee Sanders, White House press secretary, announced that in future all administration officials would need to go through Mr Kelly to speak to President Donald Trump, including daughter Ivanka and son-in-law Jared Kushner. (FT)
In the news
Venezuela opposition targeted
Venezuelan opposition leaders Leopoldo López and Antonio Ledezma were taken from their homes, where they were serving house arrest, family members said on Tuesday, adding that President Nicolás Maduro was responsible for their fate.
Both leaders in recent days had called on Venezuelans to join protests against Mr Maduro over the creation of an all-powerful legislative body called the constituent assembly, which was elected on Sunday.
The US on Monday imposed sanctions, freezing all of Mr Maduro’s assets subject to US jurisdiction and said Americans were prohibited from dealing with him. “Yesterday’s illegitimate elections confirm that Maduro is a dictator who disregards the will of the Venezuelan people,” said Treasury secretary Steven Mnuchin. (FT)
Trump dictated son’s statement on Russian lawyer meeting
Donald Trump is said to have personally dictated the statement used by his son Donald Trump Jr to explain his meeting with a Russian lawyer in June 2016. Mr Trump’s advisers mapped out how to respond to the revelations on the sidelines of the G20 meeting in Germany last month, but the plan changed when Mr Trump chose to dictate the lines later issued to the New York Times. (Washington Post)
Brexit blow for banks
Britain’s departure from the EU will push up costs for banks by as much as 4 per cent and their capital requirements will rise by up to 30 per cent, according to consultants Oliver Wyman. Many banks have decided they cannot wait for clarity over Brexit negotiations and are already making plans to move staff to other European capitals. The consultancy estimates wholesale banks — which serve corporate and institutional clients — would need to find $30bn to $50bn extra capital to support new European operations.
HSBC on Monday became the first lender to put a price tag on Brexit, saying the immediate disruption would cost it $200m to $300m. The bank said it planned to move 1,000 of its 6,000 UK investment banking jobs to France. Conservative MP Nicky Morgan has asked the Bank of England provide details on the City’s readiness for a hard Brexit. There was some good news however — Deutsche Bank on Tuesday confirmed its commitment to the City by signing a lease for a new London HQ despite plans to move some staff after Brexit (FT, Guardian)
UK confirms Brexit means end to free movement
Downing Street insisted on Monday that it remained committed to the tough negotiating stance outlined by Theresa May earlier this year, including ending the free movement of EU citizens to the UK in March 2019. The comments came after days of contradictory statements from ministers. Senior officials have meanwhile accused Mrs May of wasting the past year as her “control freak” regime has stifled arguments over policy and alienated other EU countries. (FT)
British American Tobacco, the second-largest listed cigarette company, is under formal investigation by the UK’s Serious Fraud Office over claims that it bribed officials in east Africa to undermine anti-smoking laws.
Los Angeles steps aside for Paris
Los Angeles has agreed to let Paris hold the 2024 Olympics after reaching an agreement with the International Olympic Committee for the city to instead host the 2028 games. The two cities were the only remaining bidders for the 2024 games after others withdrew citing cost concerns. The IOC wanted LA and Paris to reach an agreement before its meeting in September. The body has agreed to advance the US city $1.8bn for agreeing to wait. (FT, BBC)
HBO has confirmed it has fallen victim to a cyber attack after hackers claimed to have stolen material including plot points from an upcoming episode of its hit series Game of Thrones. The hackers claimed to have released unaired episodes of the shows Baller and Room 104. (FT, Entertainment Weekly)
Sam Shepard dies at 73
The US actor, Pulitzer-winning playwright and one of the most important and influential writers of his generation, specialised in capturing the darker sides of American family life. (NYT)
The day ahead
Wall Street expects a slight uptick in iPhone sales to 41m units for the three months to June, with revenues of $45bn and earnings per share of $1.57 when Apple reveals its fiscal third-quarter results. Apple’s guidance for its fourth quarter will receive extra scrutiny amid concerns that at least one new iPhone model will not launch until October, falling outside the company’s financial year. Supply chain sources have pointed to a shortage of the new OLED screen technology that the next iPhone is expected to use. (FT)
Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.
What we’re reading
The US-China dispute over genetic data
The FBI is beginning to raise national security questions about genetic data going overseas — what will it mean for the biotech industry? (FT)
China’s biggest bank and money laundering
An investigative piece on how the Industrial and Commercial Bank of China allegedly helped launder hundreds of millions of euros for Chinese residents of Spain who needed to get illicit piles of cash back home. (Reuters)
How not to promote a start-up
Start-ups live or die by publicity. Favourable press coverage can draw in new users, but there’s a danger of start-ups chasing media buzz and losing their way amid the hype. (FT)
Apple v WeChat
The biggest rival to Apple’s flagship smartphone in China is a messaging app that allows users to pay for food, hail cabs, stream video and more. (WSJ)
Video of the day
Abenomics and the beef bowl
Leo Lewis says Yoshinoya's signature dish has been a good metaphor for Japan's economy but that signs of weak consumer confidence suggest Abenomics may have lost its flavour. (FT)