This FT News Briefing episode, hosted by Mark Filippino on Thursday, December 4th, covers three major financial and political stories affecting global markets and institutions.

The first segment features Kate Duguid, FT's U.S. Markets Editor, discussing bond market concerns about Kevin Hassett, the frontrunner for Federal Reserve Chair to replace Jay Powell when his term ends in May.

The episode also covers HSBC's appointment of Brandon Nelson as chair after a hectic selection process, and explores the EU's controversial plan to use frozen Russian assets for Ukraine loans.

Paola Tama from Brussels provides detailed analysis of the EU's 210 billion euro proposal and the political tensions between member states, particularly Belgium's opposition and Hungary's resistance to Ukraine support.

Bond Market Pushback on Fed Chair Frontrunner

Two to three weeks before final Fed chair interviews, Treasury Department reached out to big bond investors including Wall Street banks, asset managers, and Treasury Borrowing Advisory Committee members to solicit feedback on candidates

"Kevin Hassett is seen as a Trump loyalist. He's the White House's top economic advisor. He worked in the first Trump administration. He is seen as somebody who is very close to President Trump" - Kate

Bond market participants expressed concern about potential scenario with "an ultra-dovish Fed chair and we also have inflation rising" which "could lead to huge, huge, huge problems in the bond market" - Kate

Investors worried Hassett might lack capacity to build coalitions within the consensus-based Fed organization, particularly if his views differ significantly from the rest of the board

"Secretary Scott Besant, both he personally and his Treasury Department, have a uniquely close relationship with market participants" compared to predecessors, given his hedge fund background - Kate

"President Trump has displayed a willingness in the past to make policy decisions that the market doesn't necessarily like" suggesting bond investor concerns may not sway the final decision - Kate

HSBC Chair Appointment After Rushed Search

Brandon Nelson, former KPMG partner and interim chair since early October, officially appointed as HSBC chair after Sir Mark Tucker's earlier-than-expected departure announcement

Sources indicated the board was divided on other candidates' suitability just before landing on Nelson, highlighting the hectic nature of the selection process

EU's Frozen Russian Assets Plan for Ukraine

EU Commission plans to use approximately 210 billion euros of frozen Russian state assets to make a loan for Ukraine covering the next two years of financial needs

The plan targets financial institutions holding these assets, primarily Belgian Central Security Depository Euroclear, asking them to loan assets to EU which will then loan to Ukraine

"Kiev will not have to pay back until Russia has paid reparations in the context of a peace deal" - Paola, describing the loan structure

"One of the striking things that came out when the commission made its proposal is that it will not require unanimity" allowing the plan to proceed without EU 27 consent - Paola

EU justifies bypassing unanimity by citing emergency powers based on risks that "Russia's invasion of Ukraine and Russia's continued hybrid threats in Europe are going to wreak havoc on our economy" - Paola

Belgium's Opposition to Asset Seizure Plan

Belgium holds approximately 185 billion euros of the frozen Russian assets, representing the lion's share of the total

Belgian Prime Minister opposed the plan, "calling it fundamentally wrong" and arguing "it impedes peace efforts, that it would potentially melt down Europe's financial system" - Paola

Belgium demands guarantees from EU and other member states to avoid being "solely on the hook" if Russia presents claims or assets are due back as part of peace process

"If this legal basis flies, they have found a way to isolate Russia-friendly countries, but they cannot really do it in the face of opposition from Belgium" - Paola

EU leaders summit in two weeks will be "the showdown moment" to determine how EU intends to continue funding Ukraine, with alternative option using EU budget requiring unanimity