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More than 300 South Koreans who were detained in an immigration raid at a Hyundai plant in the U.S. state of Georgia have arrived home. A chartered Korean Air jet carrying the workers and 14 non-Koreans who were also detained in the raid took off from Atlanta at midday local time on Thursday (17:00 BST). One South Korean national has reportedly chosen to stay in the U.S. to seek permanent residency. Korean companies would be "very hesitant" about investing in the U.S. following the raid, South Korean President Lee Jae Myung said on Thursday. "The situation is extremely bewildering," Lee observed, while noting it is common practice for Korean firms to send workers to help set up overseas factories. "If that's no longer allowed, establishing manufacturing facilities in the U.S. will only become more difficult . . . making companies question whether it's worth doing at all," he added. On Friday, the South Korean foreign ministry said it had called for the U.S. Congress to support a new visa for Korean firms.

 

Korea Joongang Daily

Bangkok Post

BBC News

The Korea Times

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U.S. Senator Ron Wyden has urged the Federal Trade Commission (FTC) to investigate Microsoft for what he describes as "gross cybersecurity negligence," as he linked the company's practices to a series of ransomware attacks on critical infrastructure, including healthcare organizations. In a letter to FTC Chairman Andrew Ferguson, Wyden likened Microsoft to "an arsonist selling firefighting services to their victims," highlighting the risks posed by default configurations in Windows that have facilitated these cyber incidents. A notable example cited was the May 2024 attack on Ascension, a hospital operator, which compromised the data of nearly 5.6m individuals. Wyden asserts that Microsoft's outdated security measures contributed to the breach.

 

Reuters

U.S. Senator Ted Cruz has proposed a bill that would allow artificial intelligence companies to apply for two-year exemptions from federal regulations in a bid to foster innovation and help U.S. firms compete with China. Cruz emphasised that while the "regulatory sandbox" would not exempt companies from all laws, it would enable them to experiment with new technologies while outlining potential risks and mitigation strategies. However, consumer advocacy group Public Citizen has expressed concerns that the proposal could treat Americans as "test subjects" and highlighted the need for careful oversight of AI development amid varying state regulations.

 

Reuters

The U.S. Consumer Financial Protection Bureau (CFPB) may need to reduce its workforce due to new funding limits imposed by Congress. An internal email revealed that staff should ensure their resumes are up to date in preparation for potential layoffs. The CFPB's funding comes from the Federal Reserve, rather than taxpayer funds. However, Congress this summer reduced the maximum the CFPB may request to 6.5% of the Fed's expenses, rather than 12%, reducing the maximum available to the agency by hundreds of millions of dollars.

 

Reuters

In August, consumer prices increased by 2.9% year-over-year, marking the largest rise since January, according to the Labor Department. The uptick was driven by higher costs for gas, groceries, hotel rooms, airfare, clothing, and used cars. Core prices, excluding food and energy, also rose by 3.1%, remaining above the Federal Reserve's 2% target. As the Fed prepares for its upcoming meeting, it faces pressure to cut short-term rates from 4.3% to about 4.1%. However, rising inflation complicates this decision. Jerome Powell, the Fed Chair, indicated that the focus is shifting towards job concerns, especially as the unemployment rate increased to 4.3% and weekly claims for unemployment benefits rose sharply. The overall inflation rate accelerated by 0.4% from July to August, surpassing the previous month’s 0.2% increase.

 

The Baltimore Sun

Bloomberg

CNBC

New York Times

Initial jobless claims rose by 27,000 to 263,000 in the seven days to September 6th, the Labor Department reported Thursday, the highest level since October 2021. Economists polled by the Wall Street Journal had estimated that new claims would decline by 2,000, to a total of 235,000. The four-week moving average of new jobless claims increased to 240,500, the highest since June, while continuing claims, reported with a one-week lag, were unchanged at 1.94m. “The surge in initial jobless claims in the first week of September came primarily from Texas, while claims declined in most states," commented economist Eliza Winger. "While any deterioration in the labor market bears watching given growing labor-market weakness, a broader increase in claims would have been much more concerning.”

 

ABC News

Bloomberg

Market Watch

Wall Street Journal

The U.S. budget deficit for August fell $35bn or 9% from a year earlier to $345bn, the Treasury Department said on Thursday, with receipts rising 12% to $344bn and outlays up $2bn to $689bn. With one month to go in the 2025 fiscal year, the year-to-date deficit rose $76bn, or 4% to $1.973tn. Net customs receipts in August hit $29.5bn, quadrupling from $7bn a year earlier, driven by changes to tariff policies.

 

Bloomberg

The Organisation for Economic Cooperation and Development (OECD) has declared the end of the tax cuts era. Rising debts and increased spending on climate change, ageing populations, and defence have prompted the shift. The OECD's report on tax reforms highlights that jurisdictions across all income levels are now seeking to increase revenues. "High levels of debt, coupled with spending needs . . . has meant that jurisdictions . . . have adopted strategies to mobilize more revenues," the OECD said.

 

The Daily Telegraph

OpenAI has entered into a monumental $300bn contract with Oracle to secure computing power over the next five years, significantly boosting Oracle's revenue projections. This agreement is one of the largest cloud contracts ever, highlighting the increasing investment in AI data centers despite concerns about a potential market bubble. Following the announcement, Oracle Chairman Larry Ellison saw his wealth rise by approximately $100bn, reflecting the deal's substantial impact on the company's share prices.

 

Wall Street Journal

The European Court of Justice has ruled that nuclear energy and natural gas can be classified as environmentally sustainable investments. The decision follows Austria's lawsuit against the European Commission, which aimed to annul the inclusion of these energy sources in the EU's sustainability criteria. Austria's former environment minister, Leonore Gewessler, argued that the regulation could “[open] the door to the greenwashing of climate-harming and dangerous technologies.”  However, the court found that the Commission acted within its authority, stating that these sectors can contribute to climate change mitigation under certain conditions.

 

Daily Mail

The Independent

A Delaware court is leaning towards denying a motion from Gold Reserve to disqualify Elliott Investment Management's bid for Citgo Petroleum's parent company, as the final sale hearing is set to commence next week. Elliott's affiliate, Amber Energy, has submitted a $5.9bn bid, which has faced objections from Gold Reserve and other creditors, particularly regarding a $2.1bn payment to holders of a defaulted Venezuelan bond that could affect auction proceeds. The judge has encouraged all parties to focus on the merits of the bids during the upcoming four-day hearing, where arguments for and against the proposals will be presented.

 

Reuters

Mexico plans to increase tariffs on automobiles from China and other Asian countries to 50%, a move aimed at protecting local jobs and responding to US pressure regarding economic ties with China. The Economy Minister, Marcelo Ebrard, said that the tariffs, which will affect $52bn in imports, are necessary to ensure competitiveness in the local market, as Chinese cars are entering at prices below local reference levels. The overhaul of import levies will also impact various sectors, including textiles and steel, and is expected to safeguard approximately 325,000 industrial jobs in Mexico.

 

Reuters

According to a report by Morningstar, the potential impact of U.S. President Donald Trump's proposed tariffs on pharmaceuticals and efforts to reduce drug prices is expected to be manageable for major U.S. and European drugmakers. The analysis suggests that while companies may face higher long-term taxes and costs associated with relocating manufacturing to the U.S., the immediate risk from price reductions is "exceedingly low." The report estimates that an initial 15% tariff on pharmaceuticals could peak at about 4% of core profit for the companies examined, after mitigation strategies are implemented.

 

Reuters

As hurricane season peaks and wildfire risks rise, the IRS is encouraging individuals and businesses to update their emergency preparedness plans during National Preparedness Month. "Disaster readiness starts with safeguarding critical documents," the IRS emphasizes. Essential documents like tax returns, birth certificates, and insurance policies should be stored securely. Maintaining an inventory of property and assets, including photos and descriptions, can aid in insurance claims. If original documents are lost, banks can often provide electronic copies. Employers are advised to ensure their payroll providers have a fiduciary bond and to create an Electronic Federal Tax Payment System account for secure payments. The IRS also offers disaster relief, including delayed filing and payment deadlines for declared federal disasters. Uninsured losses can be deducted on tax returns for the year of the loss or the prior year, as detailed in Publication 547.

 

CPA Practice Advisor

Havana is gradually returning to normal after a nationwide blackout left 9.7m residents without power. The Cuban Energy and Mining Ministry reported that 80% of the capital has regained electricity. The restoration process is ongoing, with officials aiming to fully restore service soon, although the country's power system has been in crisis for years, struggling to meet demand due to outdated infrastructure and dwindling fuel imports. Residents expressed frustration over the situation, highlighting the severe impact on daily life amid Cuba's broader economic challenges.

 

Reuters