EY advised Wirecard that the draft of an impartial audit report by KPMG lacked “context” and could lead to wrong conclusions concerning the enterprise on the coronary heart of an accounting scandal that has shaken company Germany.
The German funds group’s longstanding auditor intervened only a day earlier than the April publication of the KPMG report which raised doubts about an organization now uncovered in one of many nation’s greatest postwar accounting frauds.
KPMG had been unable to confirm the existence of actions which, on paper, accounted for half of Wirecard’s income and all its working revenue. Two months later Wirecard collapsed after this third-party buying enterprise (TPA), which was stated to hold out funds processing for the corporate in international locations the place it lacked licences to function, was proven to be a sham.
Paperwork reviewed by the Monetary Occasions present that EY and Wirecard noticed two drafts of the KPMG audit earlier than its publication. The investigation had been commissioned by Wirecard in October in an effort to allay considerations over the group’s accounting and was overseen by the supervisory board. (FT)
EU leaders spent a 3rd day locked in marathon summit talks over Europe’s proposed €750bn response to the coronavirus pandemic on Sunday.
The top of India’s largest financial institution stated the nation’s escalating coronavirus outbreak dangers jeopardising a years-long clean up of the monetary system.
Japan’s authorities has vowed to press forward with a marketing campaign to promote domestic tourism regardless of fears it may unfold Covid-19 — and it has remained steadfast that the Tokyo Olympics will happen subsequent 12 months.
The primary medical trial outcomes from Oxford college’s a lot anticipated Covid-19 vaccine might be printed in The Lancet on Monday. (FT, WaPo, NYT)
Within the information
UK alerts it’ll droop extradition treaty with Hong Kong The transfer got here because the British overseas secretary criticised Beijing’s “egregious human rights abuses” in opposition to its Uighur minority. Dominic Raab stated on Sunday he would replace the Home of Commons on Monday on the UK’s extradition preparations with Hong Kong. (FT)
US weighs ban on TikTok as friction with China rises The White Home is considering putting TikTok on a blacklist that may successfully stop Individuals from utilizing the favored video app, as one possibility to stop China from acquiring private information by way of the social media platform. (FT)
Chinese language state seizes management of 9 insurers, trusts and brokers Regulators have seized control of 9 troubled insurers, belief firms and securities brokers, in an indication that the federal government continues to be grappling to comprise hidden dangers throughout the monetary sector. The transfer represents one of many largest monetary takeover operations in current reminiscence. (FT)
Lewis, civil rights activist and congressman, 1940-2020 John Lewis, the son of sharecroppers who turned one in all America’s most distinguished liberal politicians, died on Friday night after a lifetime as a totemic determine within the US civil rights motion and greater than three many years as a Democratic congressman. Right here’s how the Black Lives Matters generation remembers Mr Lewis. (FT, AP)
Flooding in India and Nepal displaces tens of millions Practically 4m folks in northeastern India and neighbouring Nepal have been displaced by Brahmaputra River flooding after monsoon rains. There have been not less than 189 deaths, authorities officers stated on Sunday. (Nikkei Asian Overview)
US Democrats search probe into ‘secret police power’ in Oregon Senior Democratic lawmakers have known as for inquiries into the Trump administration’s use of federal law enforcement officers to quell protests in Oregon, saying the administration didn’t have “unfettered authority” to crack down on peaceable demonstrations. (FT)
Netanyahu corruption trial to start in January Israeli prime minister Benjamin Netanyahu’s corruption trial will start listening to witnesses on the beginning of 2021, a courtroom selected Sunday. In the meantime, Israel’s proper wing fears the window is closing for prime minister to ship his promise to annex the West Bank. (Reuters, FT)
FBI probes Twitter hack The FBI and New York state have launched investigations into Wednesday’s unprecedented hack at Twitter. The Nice Twitter Hack of 2020 has uncovered the precarity of our on-line existence, Richard Waters writes. (FT)
The day forward
Folks’s Financial institution of China choice The central financial institution will resolve its key charge on Monday, which is prone to stay at 3.85 per cent, with the restoration of the nation’s financial system in June seen as giving the financial institution sufficient room to maintain its financial coverage stance on maintain for now. (FT)
US secretary of state visits UK Mike Pompeo kicks off the week on Monday with a two-day go to to the UK, the place he’ll talk about coronavirus, China and Hong Kong and the US-UK free commerce settlement with Britain’s prime minister Boris Johnson and Dominic Raab, overseas secretary. (FT)
What else we’re studying
Europe and US can nonetheless beat Chinese language tech One of many greatest errors Donald Trump made lately was making an attempt to go it alone in his expertise and commerce conflict with China, writes Rana Foroohar. The outcome led the US, Europe and China to maneuver in separate digital instructions. (FT)
Courageous Hong Kongers deserve higher from buyers Impartial UN human rights specialists have known as for brand spanking new mechanisms to watch the deteriorating state of affairs, such because the speedy appointment of a UN particular rapporteur or envoy. The worldwide enterprise group ought to echo these calls, writes Darren Mann, a surgeon primarily based in Hong Kong. (FT)
Carmen Callil’s Lunch with the FT For generations of readers, Carmen Callil modified the world. Virago Press, which she based in 1973, put the lives and work of girls centre stage and burnished the reputations of numerous feminine writers. Ms Callil talks empire, injustice and extra with FT’s Horatia Harrod. (FT)
Turkey fuels regional energy recreation over fuel reserves Underneath the path of President Recep Tayyip Erdogan, Turkey has adopted an increasingly assertive response to being excluded from regional efforts to take advantage of the world’s fuel assets, that are topic to claims from not less than eight international locations starting from Libya to Egypt and Israel. (FT)
How fixed Slack messaging has made work extra taxing Office chat was intrusive earlier than the pandemic — and issues have gotten worse, writes Pilita Clark. And since Slack feels so just like the pinging messaging apps we use at dwelling, it instils a way of privateness at work that doesn’t essentially exist. When staff return to the workplace, it’ll imply new elevator etiquette. (FT, WSJ)
Younger South Koreans forging a brand new skilled tradition A brand new technology of working South Koreans are resisting their nation’s rigid social and professional demands. And dissident individualists, a gaggle South Koreas name honjok, are rising in quantity. (Remainder of World)
Going to Mass throughout a pandemic The US is reopening, no matter whether or not it’ll kill folks. It forces the query: what’s definitely worth the threat? A haircut? Protesting for racial justice? A wafer and some hymns? Claire Bushey discovered her alternative was Mass, when she went to church for the primary time for the reason that pandemic started. (FT)
Pandemic M&A Coronavirus has upended the enterprise world however for dealmakers there’s a specific agony: buyers’ remorse. The FT has tracked 40 offers struck shortly earlier than the pandemic. Listed below are stockpicking tips from readers who entered our annual contest — and are up by greater than 200 per cent. (FT)
Video of the day
China-India tensions A lethal conflict within the Himalayas is forcing New Delhi to look at its relationship with Beijing. International China editor James Kynge and south Asia bureau chief Amy Kazmin talk about the geopolitical and trade implications. (FT)
— to www.ft.com