Connect with us

Published

on

It wasn’t yet official, but Sir Keir Starmer was straight out of the blocks on Wednesday morning to congratulate Donald Trump on his imminent victory – as America reeled from an election that turned from being too close to call into an emphatic, definitive and quick win.

The president-elect took the Electoral College, the popular vote, and the Senate.

The victory is hugely consequential, not just for a divided America that now has at its helm a president who ran a campaign that played on fear, economic and social insecurity and grievance, but for the UK and Europe too.

The US election has chosen a strongman leader for uncertain times and he enters the White House with a huge mandate. How he chooses to wield that power matters to us all.

For the Labour government, it will be a more trying diplomatic test than would have befallen a Conservative one.

Follow live updates – Trump wins US election

As Donald Trump noted when he and Sir Keir dined at Trump Tower in September ahead of the election, he and Starmer are not natural bedfellows.

More on Donald Trump

“You’re a liberal so we won’t always agree,” he reportedly told the UK prime minister over dinner. “But we can work together.”

Sir Keir, a former human rights lawyer and a part of the sister party to the Democrats, and Donald Trump, a brash, deal-making billionaire businessman, are not an obvious match.

For Donald Trump, relationships matter. He hit it off with Boris Johnson but never really rubbed along with Theresa May.

Sir Keir’s approach will be to keep calm and carry on. I’m told the PM is of the view that “it is not about what Trump says but what he does”.

He is obviously not the preferred choice of the Labour leadership, but those in Number 10 are pragmatic and have been preparing for the outcome for some months.

“For us, there will always be areas of common interest than transcend party politics, as does the special relationship,” one senior figure said.

“Our approach is that it’s ultimately for the American people, and they have clearly chosen who they want to be president – and our responsibility is to make the relationship work in the UK national interest.

“That’s why the PM took time to have dinner with President Trump in September – and that was a very successful evening. It’s fortuitous to have that time so we are not starting from scratch.”

Please use Chrome browser for a more accessible video player

Starmer congratulates Trump

There have already been moments of possible tension that the prime minister has brushed off as inconsequential, aware that it is unwise to poke the bear.

When, on our way to the Commonwealth summit in Samoa, Trump’s election team filed a complaint against Labour, accusing it of “blatant foreign interference” in the US election in aid of the Harris campaign.

This came after media reports about contact between Number 10 operatives and the Harris team and apparent volunteering efforts.

Sir Keir calmly brushed aside concerns and refused to rise to the bait – despite some of his most senior staff being personally targeted in the Trump complaint.

Meanwhile, David Lammy, the foreign secretary, has spent a good portion of his time in recent months with Republicans – with his supporters insisting the ground work has “paid off”.

“They know him now and he has good relations with JD Vance,” one supporter said.

I’m also told that past sharp criticisms of President Trump by Mr Lammy – he once called Trump a “neo-Nazi sociopath” – are long forgotten.

“He won’t hold a grudge if you treat him with respect when he’s in office,” insisted one insider.

The coming months will see whether that proves true, but government insiders point out to me that the reason Sir Keir took Mr Lammy to the Trump dinner in New York was to test the water.

“It was a successful evening. If there had been an issue, President Trump would have said something,” one said.

Please use Chrome browser for a more accessible video player

Will Lammy apologise for Trump comments?

Sir Keir ever pragmatic, the mood more widely in government was pretty flat on Wednesday, as London woke up to the Trump win.

Many Labour staffers had gone over to support the Harris campaign, other members of the Starmer team had attended the Democratic convention in a time-honoured tradition of these two sister parties.

This was a government that had wanted a Democrat win.

As one insider said to me on Wednesday morning: “I hoped right up to the last moment that he wouldn’t win. But he has and here we are.”

There is plenty of anxiety in the UK about what Trump 2.0 might mean.

For starters, he has threatened across-the-board trade tariffs on all trading partners of 10% to 20%, while floating special treatment for the US’s chief rival China, with tariffs of up to 60%.

Blanket tariffs would hit billions of pounds of UK automotive, pharmaceutical and liquor exports.

Read analysis:
Trump 2.0: Power beyond his wildest imagination
Harris’ team will be searching for answers
What Trump’s win means for the UK

One senior government figure told me they have been wargaming the scenarios but did not know how the coming months would play out, noting the political win for Trump at home could make him bolder still.

“We are very well prepared, but you have to accept unpredictability is a key feature of Trump,” the senior figure said.

“The UK does not have a trade deficit on goods with the US, so we might not be top of his hit list, but a clean sweep like this [politically] probably makes him feel he has been totally validated.”

Those scenarios range from full-blown trade wars to more mildly protectionist measures, which the UK has already lived with under the Biden Administration’s Inflation Reduction Act – which was designed to drive businesses to the US through hundreds of billions of tax incentives.

“What he says in the heat of the campaign and what actually happens might differ. We have a window of opportunity during the transition [Trump will be inaugurated on 20 January] to argue that tariffs will have a huge impact on the US too,” the senior figure said.

“It’s hard to say what it’s going to mean for us now. There will be trade implications, but it’s not clear whether they will be flat tariffs that spark a trade war with China in which we all feel the pain or mildly protectionist stuff, which the US has been doing for years.

“In the nightmare trade scenario of huge tariffs… if this happens, this is going to make Brexit feel like a papercut.”

👉 Listen to Politics At Jack And Sam’s on your podcast app👈

For the UK, outside of the EU and dealing with China and the US, tariffs could be particularly acute and cause difficulties domestically.

As a big trading nation, tariffs would have big inflationary effects on goods.

“It would have a big impact on how we have to face China and Europe and creates retaliatory trade wars,” one person familiar with the scenario planning said.

“It forces us to choose. Do we face more to America, do we face more to China?

“We are exposed as a trading nation as we are relatively little between the bloc of the EU, China and the US. So we will be disproportionately affected and we don’t have big friends to buddy up to, so we will be squeezed.”

It’s also not clear how flat tariffs tie into the much-lauded post-Brexit trade deal that Trump was once keen on but President Biden was not.

The Labour government for now are unclear how this might be revisited, or whether they want it to be, in the light of both Trump’s protectionism and the Labour red lines on opening up the NHS to private pharma or agriculture to imports of genetically modified products.

The prospect of punitive tariffs to force the UK to the table is the very opposite of what the government wants.

However, could there be some middle ground?

One government official argues there could be scope for cooperation on security or technology that is different to a full-fat trade deal.

There is some hope that the deal maker Trump might be open to such tie-ups.

For broader foreign policy, Trump in the White House is a significant change and the UK government is bracing for his different approach.

Please use Chrome browser for a more accessible video player

Donald Trump’s victory in numbers

It is, insiders admit, hugely uncertain.

President Trump – in his focus in this election on the domestic US economy and borders – has not clearly spelt out how he intends to interact with the wider world on matters of Ukraine, the Middle East or China.

What is clear is that in Trump’s first term of power, he was often abrasive with old allies – he lambasted European friends for weak defence spending and even floated the prospect of leaving NATO.

Some NATO members now fear his return will lead to reduced US commitment to European security and an end to military support in Ukraine.

He has promised to end the war if he was returned to the White House, but has not spelt out exactly how he intends to do that.

This is true too of the Israel-Hamas war in Gaza and the Israel-Hezbollah war in Lebanon.

Trump has promised to bring “peace” to the Middle East, but has not said how. With his tough stance against Iran, Trump could end up offering more military US support for Israel. It is simply, for now, unclear.

What the UK government will now want to do in this transition time is to gain an audience with Trump and his team to press the UK and European interests.

However, there is an acknowledgement too within the government that it is now even more pressing for European allies to increase defence spending in the wake of a Trump win.

“Our approach will be to look at how he acts, rather than what he says,” one UK official said.

“He [Trump] has had an audience with Zelenskyy, who again has reiterated his ‘good discussions’ with Trump on the victory plan in September. But we agree with him, that Europe does need to do more [in spending].”

There is also a domestic question for Sir Keir in all of this.

Will the victory of Trump’s brand of populism and grievance politics fan those flames here in the UK?

Labour are all too alive to the threat of Reform, which won five seats, came second in dozens more and picked up 14% of the votes in the July election.

Sir Keir’s government knows it faces backlash should it fail to deliver on promises made.

There will also be obvious anxiety in government that Trump’s election in the US feeds into the global currents moving towards the populist right in Europe too, with Marine Le Pen now the bookmakers’ favourite to become the next president of France in 2027.

Please use Chrome browser for a more accessible video player

Highlights from Trump’s speech

President Trump’s priorities will undoubtedly be domestic, as he told the American people in his victory speech he would keep the promises he made to seal the US-Mexican border, deport millions of undocumented immigrants and fix the US economy.

But his pledges to the American people touch on our lives too.

His promise of sweeping tariffs to restore the US’s manufacturing base could hit our economy, while his pledge to retreat from America’s role as global policeman to a more isolationist approach could affect Europe’s security too.

It’s the biggest comeback in political history – and it takes not just America into the unknown, but her old allies too.

Continue Reading

Politics

Suspect in $190M Nomad hack to be extradited to the US: Report

Published

on

By

Suspect in 0M Nomad hack to be extradited to the US: Report

Suspect in 0M Nomad hack to be extradited to the US: Report

A Russian-Israeli citizen allegedly involved in the $190 million Nomad bridge hack will soon be extradited to the US after he was reportedly arrested at an Israeli airport while boarding a flight to Russia. 

Alexander Gurevich will be investigated for his alleged involvement in several “computer crimes,” including laundering millions of dollars and transferring stolen property allegedly connected to the Nomad Bridge hack in 2022, The Jerusalem Post reported on May 5.

Gurevich returned to Israel from an overseas trip on April 19 but was ordered to appear before the Jerusalem District Court for an extradition hearing soon after, according to the report. 

On April 29, Gurevich changed his name in Israel’s Population Registry to “Alexander Block” and received a passport under that name at Israel’s Ben-Gurion Airport the next day.

He was arrested at the same airport two days later, on May 1, while waiting to board a flight to Russia. 

Gurevich allegedly identified a vulnerability in the Nomad bridge, which he exploited and stole roughly $2.89 million worth of tokens from in August 2022.

Dozens of copycat hackers discovered and capitalized on the security vulnerability soon after, leading to a total loss of $190 million.

Gurevich allegedly reached out to a Nomad executive on Telegram

Prosecutors allege that shortly after the hack, Gurevich messaged Nomad’s chief technology officer, James Prestwich, on Telegram using a fake identity, admitting that he had been “amateurishly” seeking a crypto protocol to exploit.

He allegedly apologized for “the trouble he caused Prestwich and his team” and voluntarily transferred about $162,000 into a recovery wallet the company had set up.

Prestwich told Gurevich that Nomad would pay him 10% of the value of the assets he had stolen, to which Gurevich responded that he would consult his lawyer. However, Nomad never heard back from him after that.

Russia, Israel, Telegram, United States, Hacks
Alleged messages between Gurevich and Nomad’s James Prestwich were shared on X by Israel-based Walla News journalist Yoav Itiel. Source: Yoav Itiel

At some point during the negotiations, Gurevich demanded a reward of $500,000 for identifying the vulnerability.

Related: Do Kwon is in US custody after extradition battle

US federal authorities filed an eight-count indictment against Gurevich in the Northern District of California on Aug. 16, 2023, in addition to obtaining a warrant for his arrest. California is where the team behind the Nomad bridge is based.

The US submitted a formal extradition request in December 2024, the Post noted.

The money laundering charges that Gurevich faces carry a maximum of 20 years, significantly harsher than what he would face in Israel.

Gurevich is believed to have arrived in Israel a few days before the $190 million exploit occurred, prompting Israeli officials to believe he carried out the attack while in Israel.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Continue Reading

Politics

How Nigel Farage is flirting with Labour’s most loyal voters – and the battle to stop him

Published

on

By

How Nigel Farage is flirting with Labour's most loyal voters - and the battle to stop him

For much of its history, the trade union movement’s main opponent has been the Conservative Party. But now it finds itself taking on a different type of adversary – one it might describe as a wolf in sheep’s clothing.

It began when Nigel Farage, known for being a staunch advocate of free trade and private markets, declined to criticise the Unite union for its bin strike in Birmingham, before calling for the nationalisation of British Steel following the near collapse of its plant in Scunthorpe.

The Reform UK leader has been sweet-talking the trade unions, speaking their language and brandishing their leaflets in public in what appears to his critics to be a new opportunistic strategy.

Farage’s courting of union members has alarmed the movement’s leaders – so much so that Sky News understands the executive of the Trades Union Congress (TUC), which represents unions across the country, has been holding meetings to draw up a strategy on how best to combat his appeal and more broadly, the far-right.

Over the weekend, as the two main parties were processing the battering they received in the local elections largely courtesy of Farage’s party, Unison’s general secretary Christina McAnea urged members of councils now controlled by Reform to join a union.

“Unions are there to ensure no one can play fast and loose with the law,” she said, after Farage threatened to sack staff working in areas such as diversity or climate change.

‘Political fraud’

More on Labour

Paul Nowak, the general secretary of the TUC, has begun to step up his criticism of the former UKIP leader – accusing him of “cosplaying as a champion of working people”.

“He is not on the side of the working people,” he tells Sky News. “He’s on the side of bad bosses who want to treat staff like disposable labour.

“Unions will continue to expose him for the political fraud he is.”

At the moment, that campaign is largely focused on highlighting Farage’s voting record – in particular his decision to oppose the Employment Rights Bill, legislation unions say they have wanted for decades.

The bill offers protection from unfair dismissal from the first day of employment and sick pay for all workers from the first day of absence, among other measures.

The TUC says the bill is incredibly popular – and not just among Labour voters.

According to a poll it conducted of more than 21,000 people with campaign group Hope Not Hate, banning zero hours contracts is supported by more than seven in 10 UK voters – including two in three Reform voters from the 2024 election.

“People are going to find there are improvements to their life and work,” an insider tells Sky News. “We want them to understand who was for it, and who was against it.”

The TUC has also begun promoting videos on social media in which workers in the electric vehicle industry accuse Farage of threatening their jobs.

Farage’s response to the bill has been to claim that a clause within in that gives workers protection from third party harassment could herald the end of “pub banter”.

‘There has always been fellow feeling with unions’

But Gawain Towler, an ex-Reform press officer who has worked on and off for Farage for 20 years, insists his former boss isn’t against workers’ rights – he’s just opposed to Labour’s bill.

“Reform don’t see it as a workers rights’ bill – we think it takes away opportunities for work because it scares people away from employing people,” he says.

Nigel Farage reacts next to a local in Scunthorpe.
Pic: Reuters
Image:
Nigel Farage campaigning during the local elections in Scunthorpe.
Pic: Reuters

He believes “mass migration” is the real obstacle to better wages and job security, and argues net zero policies are “costing union members their jobs”.

The government may point to a recent study suggesting the net zero sector has grown by 10% over the past year, supporting the equivalent of 951,000 full-time jobs.

For Farage’s allies, his courting of union members is neither disingenuous nor new.

“He’s anti-union management, he’s not anti-union,” says Towler, who noted Farage’s friendship with the late union leader and Brexit advocate Bob Crow.

“Nigel has always been a free trader, but he’s never been deeply partisan, which is why he was able to start the Brexit Party. There has always been that fellow feeling with unions.”

Indeed, on one issue, a commonality is emerging between Reform and the GMB union.

While general secretary Gary Smith has criticised Farage for being “soft on Russia” and for voting against the Employment Rights Bill, there is an agreement between the pair over the impact of net zero.

Those sceptical of the government’s plans for the green transition point to Port Talbot in Wales, where 2,500 workers are expected to lose their jobs, and Grangemouth, where the closure of Scotland’s last remaining oil refinery is expected to result in around 400 job losses.

Members of Unite union take part in a demonstration to protest at Petroineos plans to close Grangemouth oil refinery.
Pic: PA
Image:
Members of Unite union protest at plans to close Grangemouth oil refinery.
Pic: PA

Although Unite has no common truck with Reform, it has warned there should be “no ban without a plan” when it comes to issuing new oil and gas licences.

‘Labour has one shot with workers’

For some unions, Labour’s position on certain issues has provided Reform with an opening.

There’s disappointment at some Labour policies in government – from partly watering down the Employment Rights Bill to stave off dissent from business leaders, to welfare cuts and offering below-inflation pay rises for public sector workers.

Gawain Little, the general secretary of the General Federation of Trade Unions, tells Sky News the party risks leaving “space open for fakers like Farage to come along and pretend they have people’s interests at heart”.

Only a sense that austerity is over, likewise the cost of living crisis, will truly “challenge” the Reform leader, he says.

One GMB member says Farage’s strategy is “from the same playbook” as right-wing parties in Europe, such as the AfD in Germany and Georgia Meloni’s Brothers of Italy.

By “continuously legitimising” Reform by talking tough on migration, union activists who usually get the word out for Labour have been left demoralised.

Farage on the picket line?

The current distance with some unions did not start in government. It began in opposition, when Labour refused to back workers who were on strike and when the party did not endorse some candidates put forward by some of the more left-wing unions.

But so far, sources in Labour have dismissed Farage’s tactics as just words – and believe his previous anti-union rhetoric will weigh against him when he tries to court votes.

In fact, Mr Farage’s calls for the renationalisation of steel have been interpreted as him “trying to jump on the bandwagon” of Labour’s success.

However, Damian Lyons Lowe, the founder of pollster Survation, spots danger for Labour if Farage is able to successfully tilt in the direction of workers’ rights – especially if the government finds itself unable to follow.

He says taking the side of unions in an industrial dispute over pay would be an example of a classic “wedge” strategy that Farage can deploy to back Labour into a corner.

Read more:
Why is it taking so long to settle the Birmingham bin dispute?
Tories ‘are not doing a deal with Reform,’ Kemi Badenoch insists

And given the government’s initial 2.8% pay offer to public sector workers is below that reportedly drawn up by the independent pay review body for NHS workers and teachers, there is the very real prospect this scenario could arise.

“It could pose a real threat to Labour,” Lyons Lowe says, with union members in “post-industrial” areas potentially receptive to a message of “protectionism, industrial revival, and national self-sufficiency”.

Could what started with Farage brandishing leaflets end up with him joining the picket line?

While one union insider doesn’t think Farage will ultimately convince union leaders, members may be tempted.

The Starmer government has “one shot to deliver for workers”, they warn.

“If they don’t, Farage and Reform are waiting in the wings.”

Continue Reading

Politics

New crypto bill draft seen to curb big crypto firm influence

Published

on

By

New crypto bill draft seen to curb big crypto firm influence

New crypto bill draft seen to curb big crypto firm influence

The new “Digital Asset Market Structure Discussion Draft” introduced by House Republicans on May 5 could work to reduce the dominance of large crypto firms and promote more participation in the broader market, according to an executive from Paradigm. 

The discussion draft, led by the House agricultural and financial services committee chairs Glenn Thompson and French Hill, is an “incremental, albeit meaningful, rewrite” of the Financial Innovation and Technology for the 21st Century Act (FIT21), Paradigm’s vice president of regulatory affairs Justin Slaughter said in a May 5 X post.

New crypto bill draft seen to curb big crypto firm influence
One-pager of the digital asset market structure discussion draft submitted by House Republicans on May 5. Source: US House Agriculture Committee

One of the major changes from FIT21 is that the draft defines an affiliated person as anyone who owns more than 1% of a digital commodity issued by the project — down from 5% in the FIT21 bill — a move Slaughter said may curb the influence of big crypto firms and lead to more participation in the crypto market.

“This is a portent of the entire bill. There are often criticisms of crypto being too dominated by a few large firms. This bill makes clear the regulatory regime proposed is going to push against that fact and strongly encourage more small-d ‘democratization’ of the space.”

The draft also defines a “mature blockchain system” as one that, together with its related digital commodity, is not under the “common control” of any person or group.

New crypto bill draft seen to curb big crypto firm influence
Source: Justin Slaughter

The Securities and Exchange Commission would be the main authority regulating activity on crypto networks until they become sufficiently decentralized, Slaughter noted.

The draft also clarified that decentralized finance trading protocols are those that enable users to engage in a financial transaction in a “self-directed manner.” Protocols that meet this criterion are exempt from registering as digital commodity brokers or dealers.

The draft also referred to digital commodities as “investment contract assets” to distinguish their treatment from stocks and other traditional assets under the Howey test.

According to Slaughter’s analysis, securities laws won’t be triggered unless the secondary sale of tokens also transfers ownership or profit in the underlying business.

Crypto firms would also have a path to raise funds under the SEC’s oversight while also having a “clear process” to register their digital commodities with the Commodity Futures Trading Commission, the committee members said in a separate May 5 statement.

Joint rulemaking, procedures, or guidelines related to crypto asset delisting must be established by the CFTC and SEC should a registered asset no longer comply with rules laid out by the regulators.

A ‘clear opportunity’ to advance crypto innovation, rules once and for all

Speaking about the need for a comprehensive crypto regulatory framework, the House committee members said crypto is a “clear opportunity” to advance innovation in the US — most notably through modernizing America’s financial infrastructure and reinforcing US dollar dominance.

The Republicans criticized the previous Biden administration and the Gary Gensler-led SEC for adopting a regulation-by-enforcement strategy rather than creating clear rules for market participants.

Related: VanEck files for BNB ETF, first in US

Many crypto firms were stuck in “legal limbo” as a result of the unclear rules, which pushed some industry players overseas, where clearer rules exist, the House committee members said.

“America needs to be the powerhouse for digital asset investment and innovation. For that to happen, we need a commonsense regulatory regime,” said Dusty Johnson, chairman of the subcommittee on commodity markets, digital assets and rural development.

Slaughter added: “This is the bill that will, finally, provide a clear regulatory regime on crypto that many have been calling for.”

Republicans already facing roadblocks over discussion draft

House Financial Services Committee Ranking Member Maxine Waters plans to block a Republican-led event discussing digital assets on May 6, a Democratic staffer told Cointelegraph.

The hearing, “American Innovation and the Future of Digital Assets,” is expected to discuss the new crypto markets draft discussion paper pitched by Thompson, Hill, and other committee members.

However, according to the unnamed Democratic staffer, the current rules require all members of the House Financial Services Committee to agree on such hearings.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Continue Reading

Trending