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Rachel Reeves says Labour would ‘unashamedly champion’ the City

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Rachel Reeves says Labour would ‘unashamedly champion’ the City

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Shadow chancellor Rachel Reeves has said she has no plans to restore a cap on bankers’ bonuses, as she vowed to “unashamedly champion” Britain’s financial services sector if Labour wins the general election.

Reeves will this week launch Labour’s plan for financial services, promising to cut red tape, embrace artificial intelligence, bolster regional financial centres and promote green finance.

But Labour’s blueprint, drawn up with advice from City grandees, is most notable for what it does not do: Reeves recognises that the sector does not want a big political upheaval after years of post-Brexit change.

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“The last thing we need is a massive upheaval,” said one ally of Reeves. “Rachel recognises that stability and security is needed.”

Reeves said that she would not reintroduce the post-financial cap on bankers’ bonuses — set at 200 per cent of regular pay — which was scrapped in 2022 by Liz Truss’s chancellor Kwasi Kwarteng.

“The cap on bankers’ bonuses was bought in in the aftermath of the global financial crisis and that was the right thing to do to rebuild the public finances,” she told the BBC. “But that has gone now and we don’t have any intention of bringing that back.”

The financial services plan, seen by the Financial Times, welcomes some recent Conservative regulatory changes in the City, including chancellor Jeremy Hunt’s Edinburgh Reforms and changes to the Solvency II insurance regime.

Reeves’s argument is that many of them did not go far enough. “Too often in the last decade, British politicians have sounded embarrassed about the sectors we excel in,” she told the FT. “That will change with Labour.”

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“The next Labour government will unashamedly champion the UK’s financial services sector,” she added.

Former Labour leader Ed Miliband once branded parts of the City “predators”, while his successor Jeremy Corbyn had a dismal relationship with the Square Mile. Pro-Brexit Tories have also clashed with the City in recent years.

The financial services plan will be launched on Thursday at a Labour business day attended by 400 business leaders, including from companies such as Google, Shell, AstraZeneca, Airbus and Goldman Sachs.

Reeves hopes her financial services plan, drawn up with shadow City minister Tulip Siddiq, will help to cement the bonds between Labour and business.

Nigel Higgins, Barclays chair and one of a number of City figures who advised Labour on its financial services plan, said the party’s report recognised the “importance of international competitiveness”.

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However Labour has been criticised by private equity bosses over a plan to close a “carried interest” tax loophole that allows buyout bosses to pay less tax on part of their earnings.

The Labour report includes several proposals, some of which have been announced before, and others that will be subject to consultation:

  • A review of City regulation to cut outdated rules and reduce overlap between different watchdogs

  • Regulating the buy now, pay later sector and “exploring” the prospects for long-term mortgages

  • Endorsing the use of artificial intelligence in the City and becoming a “global standard setter”

  • Building a more “collaborative relationship with the EU”, including mutual recognition of professional qualifications

  • Empowering the British Business Bank to invest more in growth capital

  • Rolling out 350 “banking hubs” to help people have free access to banking services

Advisers on Labour’s plan, acting in a personal capacity, included Sir John Kingman, chair of Legal & General; David Schwimmer, chief executive of the London Stock Exchange Group; and Baroness Shriti Vadera, chair of Prudential.

Charles Randell, former chair of the Financial Conduct Authority, also advised on the plan and said it provided for “stable and proportionate regulation”.

The Tories have argued Labour would be bad for business, targeting in particular the party’s £28bn-a-year spending plan for green investments. The Conservatives claim this would force Labour to increase taxes or break fiscal targets to reduce debt as a proportion of GDP in five years’ time.

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Some in the City are also anxious that Reeves, if she becomes Labour chancellor, would target business with higher taxes to raise funds for struggling public services. Labour has said it has no plans to do so.

Prime Minister Rishi Sunak is expected to announce the line-up of his business advisory council for 2024 on Wednesday.

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US planning to seize Iran-linked ships in coming days, WSJ says | The Jerusalem Post

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US planning to seize Iran-linked ships in coming days, WSJ says | The Jerusalem Post

The US is planning to board and seize Iran-linked oil tankers and commercial ships in the coming days, according to a Saturday report by The Wall Street Journal.

The report noted that these actions would take place in international waters, potentially outside of the Middle East.

The US “will actively pursue any Iranian-flagged vessel or any vessel attempting to provide material support to Iran,” US Chairman of the Joint Chiefs of Staff Gen. Dan Caine said. “This includes dark fleet vessels carrying Iranian oil.”

“As most of you know, dark fleet vessels are those illicit or illegal ships evading international regulations, sanctions, or insurance requirements,” Caine continued.

Caine was further quoted as saying that the new campaign, which would be operated in part by the US Indo-Pacific Command, would be part of a broader US President Donald Trump-led campaign against Iran, known as “Economic Fury.”

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 White House spokeswoman Anna Kelly told the WSJ that Trump was “optimistic” that the new measures would lead to a peace deal.

The potential US military action comes as Iran tightens its grip on the Strait of Hormuz, including attacking several ships earlier on Saturday, the WSJ reported.

The report cited CENTCOM as saying that the US has already turned back 23 ships trying to leave Iranian ports since the start of its blockade on the Strait.

The expansion of naval action beyond the Middle East will provide the US with further leverage against Iran by allowing it to take control of a greater number of ships loaded with oil or weapons bound for Iran, the report noted.

“It’s a maximalist approach,” said associate professor of law at Emory University Law School Mark Nevitt. “If you want to put the screws down on Iran, you want to use every single legal authority you have to do that.”

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Iran claimed earlier on Saturday that it had regained military control over the Strait, intending to hold it until the US guarantees full freedom of movement for ships traveling to and from Iran.

“As long as the United States does not ensure full freedom of navigation for vessels traveling to and from Iran, the situation in the Strait of Hormuz will remain tightly controlled,” the Iranian military stated.

In addition, Iranian Supreme Leader Mojtaba Khamenei declared on Saturday in an apparent message on his Telegram channel that the Iranian navy is prepared to inflict “new bitter defeats” on its enemies.

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Video: The Origins of the Supreme Court’s Shadow Docket

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Video: The Origins of the Supreme Court’s Shadow Docket

new video loaded: The Origins of the Supreme Court’s Shadow Docket

Secret memos obtained by The New York Times illuminate the origins of the Supreme Court’s shadow docket. Our reporter Jodi Kantor explains what these documents reveal about the court.

By Jodi Kantor, Alexandra Ostasiewicz, June Kim and Luke Piotrowski

April 18, 2026

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What’s it like to negotiate with Iran? We asked people who have done it

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What’s it like to negotiate with Iran? We asked people who have done it

A Pakistani Ranger walks past a billboard for the U.S.-Iran peace talks in Islamabad on April 12, 2026. The talks, led by Vice President JD Vance, produced no concrete movement toward a peace deal.

Farooq Naeem/AFP via Getty Images


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Farooq Naeem/AFP via Getty Images

Despite stalled talks with Iran and a fragile ceasefire nearing its end, President Trump expressed optimism this week that a permanent deal is within reach — one that may include Iran relinquishing its enriched uranium. However, experts who spent months negotiating a nuclear agreement during the Obama administration say mutual mistrust, starkly different negotiating styles make a quick truce unlikely.

Referring to Vice President Vance’s whirlwind negotiations in Islamabad last week that appear to have produced little beyond dashed expectations, Wendy Sherman, the lead U.S. negotiator on the Joint Comprehensive Plan of Action (JCPOA) nuclear deal finalized in 2015, says the administration’s approach was all wrong.

“You cannot do a negotiation with Iran in one day,” she told NPR’s Here & Now earlier this week. “You can’t even do it in a week.” To get agreement on the JCPOA, she said, it took “a good 18 months.”

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The talks leading to that deal highlighted Iran’s meticulous style of negotiation, says Rob Malley, who was also part of the JCPOA negotiating team and later served as a special envoy to Iran under President Joe Biden.

Summing up the two sides’ differing styles, Malley said: “Trump is impulsive and temperamental; Iran’s leadership [is] stubborn and tenacious.”

U.S. Secretary of State John Kerry speaks during a news conference on the Iran nuclear talks deal at the Austria International Centre in Vienna, Austria on July 14, 2015.

U.S. Secretary of State John Kerry speaks during a news conference on the Iran nuclear talks deal at the Austria International Centre in Vienna, Austria on July 14, 2015.

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In 2015, patience led to a deal

The talks in 2015, led by Secretary of State John Kerry and Iran’s Foreign Minister Mohammad Javad Zarif, culminated with a marathon 19-day session in Vienna to finish the deal, says Jon Finer, a former U.S. deputy national security adviser in the Biden administration. Finer was involved in the negotiations as Kerry’s chief of staff. He said his boss’s patience “was a huge asset” in getting the deal to the finish line, he said.

Mohammad Javad Zarif, Iran's foreign minister during the negotiations for the Obama-era nuclear deal, speaks on April 22, 2016 in New York.

Mohammad Javad Zarif, Iran’s foreign minister during the negotiations for the Obama-era nuclear deal, speaks on April 22, 2016 in New York.

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“He would endure lectures … ‘let me tell you about 5,000 years of Iranian civilization’… and just keep plowing ahead,” Finer said, adding that a tactic of Iranian negotiators seemed to be “to say no to everything and see what actually matters” to the U.S.

“They’re just maddeningly difficult,” he said. “You need to go back at the same issue 10 or 12 times over weeks or months to make any progress.”

Even so, Finer called the Iranian negotiators “extremely capable” — noting that, unlike the U.S., they often lacked expert advisers “just outside the room,” yet still mastered the details of nuclear weapons, nuclear materials and U.S. sanctions.

“They were also negotiating not in their first language,” Finer added. “The documents were all negotiated in English, and they were hundreds of pages long with detailed annexes.”

Vance’s trip to Islamabad suggests that the U.S. doesn’t have the patience for a negotiation to end the conflict that could be at least as complex and time-consuming. “The Trump administration came in with maximalist demands and actually just wanted Iran to capitulate,” Sherman, who served as deputy secretary of state during the Biden administration, told Here & Now. “No nation – even one as odious as the Iran regime – is going to capitulate.”

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Distrust but verify

Iran was attacked twice in the past year. First in June of last year, as nuclear negotiations were ongoing, Israel and the U.S. struck the country’s nuclear facilities. Months later, at the end of February, Iran was attacked again at the start of the latest conflict. This time around, “the level of trust is probably almost at an all-time low,” Malley said.

“It’s hard for them to take at their word what they’re hearing from U.S. officials,” Malley said. The Iranians, he said, have to be wondering how long any commitment will last and “will be very hesitant to give up something that’s tangible” – such as their enriched uranium – in exchange for anything that isn’t ironclad or subject to suddenly be discarded by Trump or some future president.

“Once they give up their stockpile … they can’t recapture it the next day,” Malley said.

Even during the 2013-2015 nuclear deal talks, the decades of mistrust between Tehran and Washington were impossible to ignore, Finer said. “Our theory was not trust but verify — it was distrust but verify,” he said, adding: “I think that was their theory too.”

Malley cautions about relying on the JCPOA as a guide to how peace talks to end the current war might go. The leadership in Tehran that agreed to the deal is now gone — killed in Israeli airstrikes, he says. The regime’s military capabilities are also greatly diminished and “whatever lessons were learned in the past … have to be viewed with a lot of caution, because so much has changed,” he said.

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Negotiations have a leveling effect

Mark Freeman, executive director of the Institute for Integrated Transitions, a peace and security think tank based in Spain that advises on conflict negotiations, says several factors shape the U.S.-Iran relationship. Going into talks, one side always has the upper hand, he says, but negotiations have a leveling effect. “The weaker party gains just by virtue of entering into a negotiation process,” he said.

Each side is looking for leverage, he adds.

In Iran’s case, it has used its closure of the Strait of Hormuz to exert such leverage, while the White House has shown an eagerness to resolve the conflict quickly. “If one side perceives the other needs an agreement more … that shapes the entire negotiation,” he said.

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