British tech tycoon Mike Lynch and his 18-year-old daughter are among six tourists missing after a luxury yacht sank in a tornado off the coast of Italy.
One person has been confirmed dead, believed to be the vessel’s Canadian chef, while four of the missing passengers are British and two are American, according to Italian newspaper la Repubblica.
Survivors have been seen at the Di Cristina hospital in Palermo, while the Italian Coastguard said it believes Mr Lynch and the five others missing may still be inside the sunken yacht.
The Palermo Port Authority told Canadian broadcaster CBC News that officials recovered the body of Ricardo Thomas, a Canadian-born man who had been living in Antigua.
Salvo Cocina of Sicily’s civil protection agency said: “They were in the wrong place at the wrong time.”
Image: Survivors Charlotte Golunski, James Emsley and their one-year-old daughter Sophie Emsley, leave the Di Cristina hospital in Palermo. Pic: Reuters
Jonathan Bloomer, chairman of Morgan Stanley International, and Chris Morvillo, a lawyer at major firm Clifford Chance, and both of their wives are also among the missing.
A spokesperson for Morgan Stanley said they were “deeply shocked and saddened” and added: “Our thoughts are with all those affected, in particular the Bloomer family, as we all wait for further news from this terrible situation.”
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UK insurer Hiscox, which Mr Bloomer also chaired, confirmed his wife was also among the missing on Tuesday.
A Clifford Chance spokesperson added its priority was “providing support to the family as well as our colleague Ayla Ronald, who together with her partner, thankfully survived the incident”.
Image: Christopher Morvillo. Pic: Clifford Chance handout
Mr Lynch‘s daughter, Hannah Lynch, also remains unaccounted for but his wife, Angela Bacares, was rescued along with 14 others – including a mother who held her one-year-old baby above the waves.
Charlotte Golunski, 35, told la Repubblica she lost her baby Sofia for “two seconds”, adding: “I held her afloat with all my strength, my arms stretched upwards to keep her from drowning.
“It was all dark. In the water I couldn’t keep my eyes open. I screamed for help but all I could hear around me was the screams of others.”
Image: Charlotte Golunski
The baby’s father James Emsley also survived, Salvo Cocina of Sicily’s civil protection agency said. According to her LinkedIn profile, Ms Golunski is a partner at Mr Lynch’s firm, called Invoke Capital.
Mr Lynch, described as the British Bill Gates, was cleared earlier this year of conducting a massive fraud over the sale of software company Autonomy to Hewlett-Packard (HP) in 2011.
Image: Pic: Perini Navi
Eyewitness: Every hour that passes, this rescue mission moves closer to a recovery
In Sicily, they’re searching for survivors.
Fifty meters beneath these now calm waters are the remains of a superyacht, which was carrying 22 people when it was hit by extreme weather.
Relentless rain and wind battered the north coast of Sicily in the early hours of Monday, causing widespread damage on the land, and proving fatal at sea.
Fisherman Fabio was the first to the wreckage and told Sky News: “There were two sailboats half a mile away from the harbour with their anchors at sea.
“After 10 minutes, we saw a flare in the sky. We waited about 10 minutes to see the intensity of the tornado and went out to sea.
“We were first to give rescue, but we found no one at sea. We only found cushions and the remains of the boat.”
The weather was so bad overnight that locals described it as being like nothing they’d ever seen before.
Waterspouts – essentially like tornados on the water – tore into the coastline.
The yacht had been anchored. The sailing mast lights had been twinkling in the night sky. By morning, they were gone.
Authorities haven’t given up on those still lost at sea: Divers have already found one body near the wreckage, and they know with every hour that passes, this rescue mission moves closer to becoming a recovery.
There is also some speculation about the design of the ship, and perhaps what happened to the 75m mast, which was iconic on this particular yacht.
It was said to be the tallest aluminium mast in the world, and people here last night were talking about how they could see it glistening by night.
It’s thought that mast may have got caught up in this rotating column of cloud, these waterspouts that we’ve been talking about, and that may have caused it to break and may have caused the boat to then go on and capsize.
Investigators and inspectors from the UK Marine Accident Investigation Branch are making their way to Palermo today to assist.
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His co-defendant in that trial, Stephen Chamberlain, was separately confirmed dead after he was hit by a car on Saturday.
Gary Lincenberg, his lawyer, said in a statement: “Our dear client and friend Steve Chamberlain was fatally struck by a car on Saturday while out running.
“He was a courageous man with unparalleled integrity. We deeply miss him.
“Steve fought successfully to clear his good name at trial earlier this year, and his good name now lives on through his wonderful family.”
Cambridgeshire Police said in a statement on Monday evening that the driver of the car, a 49-year-old woman from Haddenham, remained at the scene and is assisting with enquiries.
Image: Stephen Chamberlain
Pic: Cambridgeshire Police/PA
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Emergency responder Luca Cari told the news outlet the divers “can stay underwater for a maximum of 12 minutes, two of which are needed to go up and down,” meaning “the real time to be able to carry out the search is 10 minutes per dive”.
He added divers had identified a glass window on the Bayesian from which they could enter but said: “The spaces inside the sailing ship are very small and if you encounter an obstacle it is very complicated to move forward, just as it is very difficult to find alternative routes.”
The UK Marine Accident Investigation Branch said four of its inspectors are being deployed to Palermo for a preliminary assessment, while cave divers have joined the ongoing search.
The hull of the ship is resting at a depth of 50 metres.
A spokesman for the Foreign, Commonwealth and Development Office (FCDO) said: “We are in contact with the local authorities following an incident in Sicily, and stand ready to provide consular support to British nationals affected.”
Donald Trump’s trade war escalation has sparked a global sell-off, with US stock markets seeing the biggest declines in a hit to values estimated above $2trn.
Tech and retail shares were among those worst hit when Wall Street opened for business, following on from a flight from risk across both Asia and Europe earlier in the day.
Analysis by the investment platform AJ Bell put the value of the peak losses among major indices at $2.2trn (£1.7trn).
The tech-focused Nasdaq Composite was down 5.8%, the S&P 500 by 4.3% and the Dow Jones Industrial Average by just under 4% at the height of the declines. It left all three on course for their worst one-day losses since at least September 2022 though the sell-off later eased back slightly.
Analysts said the focus in the US was largely on the impact that the expanded tariff regime will have on the domestic economy but also effects on global sales given widespread anger abroad among the more than 180 nations and territories hit by reciprocal tariffs on Mr Trump‘s self-styled “liberation day”.
They are set to take effect next week, with tariffs on all car, steel and aluminium imports already in effect.
Price rises are a certainty in the world’s largest economy as the president’s additional tariffs kick in, with those charges expected to be passed on down supply chains to the end user.
The White House believes its tariffs regime will force employers to build factories and hire workers in the US to escape the charges.
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5:07
The latest numbers on tariffs
Economists warn the additional costs will add upward pressure to US inflation and potentially choke demand and hiring, ricking a slide towards recession.
Apple was among the biggest losers in cash terms in Thursday’s trading as its shares fell by almost 9%, leaving it on track for its worst daily performance since the start of the COVID pandemic.
Concerns among shareholders were said to include the prospects for US price hikes when its products are shipped to the US from Asia.
Other losers included Tesla, down by almost 6% and Nvidia down by more than 6%.
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PM: It’s ‘a new era’ for trade and economy
Many retail stocks including those for Target and Footlocker lost more than 10% of their respective market values.
The European Union is expected to retaliate in a bid to put pressure on the US to back down.
The prospect of a tit-for-tat trade war saw the CAC 40 in France and German DAX fall by more than 3.4% and 3% respectively.
The FTSE 100, which is internationally focused, was 1.6% lower by the close – a three-month low.
Financial stocks were worst hit with Asia-focused Standard Chartered bank enduring the worst fall in percentage terms of 13%, followed closely by its larger rival HSBC.
Among the stocks seeing big declines were those for big energy as oil Brent crude costs fell back by 6% to $70 due to expectations a trade war will hurt demand.
The more domestically relevant FTSE 250 was 2.2% lower.
A weakening dollar saw the pound briefly hit a six-month high against the US currency at $1.32.
There was a rush for safe haven gold earlier in the day as a new record high was struck though it was later trading down.
Sean Sun, portfolio manager at Thornburg Investment Management, said of the state of play: “Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade.”
He warned there was a big risk of escalation ahead through countermeasures against the US.
Sandra Ebner, senior economist at Union Investment, said: “We assume that the tariffs will not remain in place in the announced range, but will instead be a starting point for further negotiations.
“Trump has set a maximum demand from which the level of tariffs should decrease”.
She added: “Since the measures would not affect all regions and sectors equally, there will be winners and losers as in 2018 – although the losers are more likely to be in the EU than in North America.
“To protect companies in Europe from the effects of tariffs, the EU should not respond with high counter-tariffs. In any case, their impact in the US is not likely to be significant. It would be more efficient to provide targeted support to EU companies in the form of investment and stimulus.”
British companies and business groups have expressed alarm over President Donald Trump’s 10% tariff on UK goods entering the US – but cautioned against retaliatory measures.
It comes as Business Secretary Jonathan Reynolds launched a consultation with firms on taxes the UK could implement in response to the new levies.
A 400-page list of 8,000 US goods that could be targeted by UK tariffs has been published, including items like whiskey and jeans.
On so-called “Liberation Day”, Mr Trump announced UK goods entering the US will be subject to a 10% tax while cars will be slapped with a 25% levy.
The government’s handling of tariff negotiations with the US to date has been praised by representative and industry bodies as being “cool” and “calm” – and they urged ministers to continue that approach by not retaliating.
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The latest numbers on tariffs
Business lobby group the CBI (Confederation of British Industry) said: “Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices”.
Industry body the British Retail Consortium (BRC) also cautioned: “Retaliatory tariffs should only be a last resort”.
‘Deeply troubling’
While a major category of exports, in the form of services – like finance and information technology (IT) – has been exempted from the tariffs, the impact on UK business is expected to be significant.
Mr Trump’s announcement was described as “deeply troubling for businesses” by the CBI’s chief executive Rain Newton-Smith.
The Federation of Small Businesses (FSB) also said the tariffs were “a major blow” to small and medium companies (SMEs), as 59% of small UK exporters sell to the US. It called for emergency government aid to help those affected.
“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” the FSB’s policy chair Tina McKenzie said. “The fallout will stifle growth” and “hurt opportunities”, she added.
Companies will need to adapt and overcome, the British Export Association said, but added: “Unfortunately adaptation will come at a cost that not all businesses will be able to bear.”
Watch dealer and component seller Darren Townend told Sky News the 10% hit would be “painful” as “people will buy less”.
“I am a fan of Trump, but this is nuts,” he said. “I expect some bad months ahead.”
Industry body Make UK said the 25% tariffs on cars, steel and aluminium would in particular be devastating for UK manufacturing.
Cars hard hit
Carmakers are among the biggest losers from the world trade order reshuffle.
Auto industry body the Society of Motor Manufacturers and Traders (SMMT) said the taxes were “deeply disappointing and potentially damaging measure”.
“These tariff costs cannot be absorbed by manufacturers”, SMMT chief executive Mike Hawes said. “UK producers may have to review output in the face of constrained demand”.
The new taxes on cars took effect on Thursday morning, while the measures impacting car parts are due to come in on 3 May.
Economists immediately started scratching their heads when Donald Trump raised his tariffs placard in the Rose Garden on Wednesday.
On that list he detailed the rate the US believes it is being charged by each country, along with its response: A reciprocal tariff at half that rate.
So, take China for example. Donald Trump said his team had run the numbers and the world’s second-largest economy was implementing an effective tariff of 67% on US imports. The US is responding with 34%.
How did he come up with that 67%? This is where things get a bit murky. The US claims it studied its trading relationship with individual countries, examining non-tariff barriers as well as tariff barriers. That includes, for example, regulations that make it difficult for US exporters.
However, the actual methodology appears to be far cruder. Instead of responding to individual countries’ trade barriers, Trump is attacking those enjoying large trade surpluses with the US.
A formula released by the US trade representative laid this bare. It took the US’s trade deficit in goods with each country and divided that by imports from that country. That figure was then divided by two.
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So, in the case of China, which has a trade surplus of $295bn on total US exports of $438bn, that gives a ratio of 68%. The US divided that by two, giving a reciprocal tariff of 34%.
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PM will ‘fight’ for deal with US
This is a blunt measure which targets big importers to the US, irrespective of the trade barriers they have erected. This is all part of Donald Trump’s efforts to shrink the country’s deficit – although it’s US consumers who will end up paying the price.
But what about the small number of countries where the US has a trade surplus? Shouldn’t they actually be benefiting from all of this?
That includes the UK, with whom the US has a surplus (by its own calculations) of $12bn. By its own reciprocal tariff formula, the UK should be benefitting from a “negative tariff” of 9%.
Instead, it has been hit by a 10% baseline tariff. Number 10 may be breathing a sigh of relief – the US could, after all, have gone after us for our 20% VAT rate on imports, which it takes issue with – but, by Trump’s own measure, we haven’t got off as lightly as we should have.