Critics see chance to close US accounting regulator

Good morning, on today’s agenda we have:

• The threat facing the US audit regulator under Donald Trump

• Nato’s new chief warns of dire threat to the US if Ukraine is pushed into a bad deal

• Vietnamese tycoon Truong My Lan can avoid the death penalty if she pays three-quarters of the $12bn she is accused of misappropriating

The US Public Company Accounting Oversight Board is facing the greatest threat to its survival in its history under the incoming Trump administration, according to accounting sector veterans and political observers.

The watchdog, which was set up two decades ago in the wake of the Enron scandal, has handed out record fines to the likes of PwC, Deloitte and KPMG under its current chair Erica Williams.

The first Trump administration proposed giving the agency’s work to the Securities and Exchange Commission to save roughly $64mn a year, but such a change would require action by Congress and the idea did not gain traction.

Now Republicans are set to hold majorities in both houses of Congress, and Bill Huizenga, who introduced legislation to close the board in 2021, is one of the candidates vying for to be chair of the House of Representatives financial services committee.

“The bill is out there, it’s been written, it’s available,” said Lynn Turner, a former chief accountant at the SEC and an adviser to the PCAOB. Folding the agency into the regulator would mean “you’ll have to cut those salaries and the staff would be gone”, he said. “It would destroy the PCAOB and they know that. It’d be dead in 24 months.” Read more about plans to close the regulator here.

Here’s what else we’re keeping tabs on today:

• Job openings: US government data is expected to show that job openings in October rose to more than 7.47mn, up from about 7.44mn in September

• Fedspeak: Federal Reserve governor Adriana Kugler will deliver a speech about the labour market and monetary policy at a Detroit Economic Club event.

• FT Global Banking Summit: The two-day event featuring speakers such as Barclays chief CS Venkatakrishnan and Deutsche Bank chief Christian Sewing opens in London.

Join us from December 4 to 6 at The Global Boardroom, where more than 100 experts including Steven Alan Barnett, senior resident representative in China for the IMF, will tackle topics ranging from the impact of a second Trump term to artificial intelligence, trade and climate change. Register for free here.

Five more top stories

1. Exclusive: Nato’s new secretary-general Mark Rutte has told the Financial Times that the US would face a “dire threat” from China, Iran and North Korea if Ukraine were pushed to sign a peace deal on terms favourable to Moscow. Rutte added that he made this point to Donald Trump when they met in Florida on November 22. Read more of the interview with Rutte here.

2. Vietnamese tycoon Truong My Lan can avoid the death penalty if she repays $9bn of the $12bn she is accused of embezzling in what has been characterised as Vietnam’s largest-ever financial fraud. The case is part of a larger crackdown that has resulted in government officials being arrested and the prosecution of several business executives. Read more here.

3. China has hit back against the US’s latest chip restrictions by banning shipments to the US of raw materials used in chip production. The ban announced on Monday in response to US sanctions highlights the chokehold China has on key materials critical for chip production. Read more about Beijing’s response here.

4. Brazilian state-controlled oil major Petrobras must be “as big as possible” to secure its future, the company’s boss Magda Chambriard has told the FT. The priority for growth will include billions of dollars for low-carbon initiatives but also an increase in crude production to replenish the company’s oil reserves. Read more about Petrobras’ plans here.

5. A judge in Delaware has rejected Tesla’s attempt to restore Elon Musk’s $56bn pay package after previously striking it down as a breach of the board’s fiduciary duty. Lawyers for the shareholder who brought the original suit were also awarded $345mn, instead of the $5.6bn in Tesla shares that they had requested. Read more about the decision.

The Big Read

While last month’s US election was fought against the backdrop of a cost of living crisis, the country’s economic performance in recent years has been the envy of the developed world, a record rooted in faster productivity growth. But with Donald Trump set to enter the White House in January, economists ask: could his policies endanger the US’s lead?

We’re also reading and listening to . . . 

• ‘Qualitynesia’: Borne along on the tide of technology, it is far too easy to forget that some things really were better quality in the past, writes Sarah O’Connor.

• Heavy toll: New York will be the first city in the US to impose congestion charges on motorists. It’s sorely needed, writes Siona Jenkins.

• Tech Tonic 🎧: Amid the artificial intelligence boom, demand for AI chips has exploded. In today’s episode, James Kynge visits a data centre to find out how advanced AI chips are reshaping the industry.

Chart of the day

Births across the EU’s 27 member states fell to 3,665,000 in 2023, according to figures updated last month, the lowest number since comparable data was first collected in 1961 and the largest annual decline on record. The dearth of children is expected to heap pressure on state finances, as working-age populations shrink and the cost of spending in areas such as healthcare and pensions rises.

Take a break from the news

The Professional Darts Corporation has spent decades transforming darts from a boozy pastime into a global enterprise and a rightfully respected sport. Here’s how a radical reinvention — and a certain British 17-year-old — have helped the game of darts hit the bullseye.