FirstFT: Why EY ‘paused’ its split

Good morning.

Our top story today is that EY has “paused” its plan to split in two amid fierce partner infighting over the fate of its tax experts.

And keep reading to learn why oil executives are warning of higher prices for crude in the year ahead.

For the day ahead, I’ll be watching:

• China inflation data: February consumer price index and producer price index inflation rate data will be released today.

• Japan revised GDP: Final figures on fourth-quarter gross domestic product will be published this morning.

• Ex-Goldman banker sentencing: Roger Ng, who was convicted on bribery and money laundering charges related to the looting of 1MDB, will be sentenced today in the US.

Thank you for reading FirstFT. We’d love to hear from you at firstft@ft.com.

Today’s top news

1. The head of EY’s US business told partners on Wednesday that the deal to split the firm in two needed to be reworked, according to people familiar with the matter. The spin-off plan has been in the works since September. Here’s what is at the heart of the debate.

• Related read: PwC and KPMG are falling behind rivals EY and Deloitte in promoting women to run the most prestigious audits in corporate America, new data shows.

2. Oil executives have warned of higher prices now that Opec is back “in charge”. Despite recent record profits, the heads of American shale producers told the FT that rising costs and investor pressure to return cash to shareholders would continue to hamper US supply growth.

3. A bipartisan bill has paved the way for the US to ban Chinese apps that pose security threats, including the popular video-sharing app TikTok. Learn more about the proposed legislation.

4. US defence secretary Lloyd Austin plans to cut short his trip to Israel as demonstrators prepare for a mass protest against government plans to overhaul the judiciary. The decision follows Israeli officials’ concerns that they would be unable to secure the route to Austin’s meeting with his counterpart Yoav Gallant.

5. Switzerland’s biggest banks say rich Chinese clients have become increasingly worried about parking money in the country because of its tough approach to applying sanctions since Russia invaded Ukraine. “I have statistical evidence that literally hundreds of clients that were looking to open accounts are now not,” said one board director.

The Big Read

As it rebuilds from devastating floods, Pakistan will be a test case for an issue of growing global importance: how vulnerable countries, many of which have contributed little to global greenhouse gas emissions, recover from the havoc wreaked by increasingly frequent and extreme weather events — and how much polluting rich nations should help them.

We’re also reading . . . 

Chart of the day

China’s once male-dominated workplace is rapidly embracing female leadership just as a growing proportion of women exit the job market. The contradiction underscores the precarious situation facing female professionals in the world’s second-largest economy.

Take a break from the news

The Nairobi Polo Club may not have the luxury brand sponsorships enjoyed by the likes of Florida’s Palm Beach or England’s Cowdray Park, but homegrown talents are leading a surge in popularity, driven by chair Raphael Nzomo’s efforts to make the sport more accessible and inclusive:

Always when you read about polo, it talks about polo being the game of kings and princes and knights and I am none of that. I’m just a hardworking adrenaline freak who was intrigued by the sport and was not daunted

Additional contributions by Tee Zhuo and Amy Bell