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Keir Starmer is fighting for the future of Downing Street
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The US Navy has seized an Iranian cargo ship
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The Russian economy is faltering, says Sweden
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The pro-Russian ex-president will win the elections in Bulgaria
You can listen to today’s top news stories with the FT News Briefing podcast.
We begin with Sir Keir Starmer, fighting to retain power as the fallout from Lord Peter Mandelson’s vetting fiasco grows.
What you need to know: The British Prime Minister will today fight for his future in Downing Street as he tries to explain to MPs how Mandelson became Britain’s ambassador to the US despite failed security checks.
The Prime Minister’s statement in the House of Commons tomorrow comes ahead of testimony from Sir Olly Robbins, who was sacked as head of the Foreign Office last week over the vetting scandal.
What can you expect: Starmer, who has rejected calls to resign, will insist he was unaware of the vetting verdict and will blame Robbins for the “unforgivable” act of not revealing Mandelson’s failure.
But the former top official is expected to tell the House of Commons Foreign Affairs Committee tomorrow that by taking steps to address the grandee’s alleged conflicts of interest, he has addressed red flags raised during the vetting process.
Why it’s important: Some Labor MPs said that after the Mandelson scandal, major losses in May’s local elections could spell the end of Starmer’s tenure as British prime minister. Others said he was still able to cling. Jim Pickard has more from London.
Here’s what else we’re keeping an eye on today:
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Economic data: The EU publishes updated fourth quarter GDP figures.
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Switzerland: The FT Live Commodities Summit kicks off at the Beau-Rivage Palace in Lausanne and online. Register here.
Five more top stories
1. A US Navy ship has seized an Iranian cargo ship in the Gulf of Oman, Donald Trump said. The US president’s announcement came as Washington and Tehran gave conflicting statements on whether new peace talks would begin in Pakistan. Crude oil prices rose in Asia this morning following the news, but remained below $100 a barrel.
2. Exclusive: Russia’s ailing economy has failed to recover Even as rising oil prices during the war with Iran boosted the Kremlin’s depleted coffers, the head of Sweden’s military intelligence said. Urals crude, the main oil blend, must remain above $100 a barrel for a year for Moscow to close its budget deficit, Thomas Nilsson added.
3. Russia-friendly former president Rumen Radev is on course to win the Bulgarian parliamentary elections with an outright majority. The outcome could stabilize the government after a long series of snap elections but could bring the EU and NATO member closer to Moscow.
4. Europe’s rearmament drive is a “magnet” for criminals attracted by the large sums poured into the defense sector, the new head of Olaf, the EU’s anti-fraud agency, warned. Olaf has received an increasing number of tips about “defense abuses,” the agency said.
5. Western car manufacturers are fighting to stay relevant in China, the world’s largest car market, with new electric vehicles made with Chinese technology that they also want to bring to other international markets.
The great reading
The powerful US Senate Banking Committee will begin hearings tomorrow to confirm Kevin Warsh as chairman of the Federal Reserve. Trump’s candidate wants big changes at the world’s most powerful central bank. But there is a risk of confrontation with the American president when it comes to interest rates.
We are also reading. . .
Chart of the day
Former Spanish central bank governor Pablo Hernández de Cos is the most qualified candidate to succeed Christine Lagarde as president of the European Central Bank, according to a think tank survey of monetary policy experts.
Take a break from the news. . .
Milan’s post-war apartments were designed and built for people from all walks of life. But current rising real estate prices, amid the city’s economic success, are driving residents away, writes Marianna Giusti.
