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U.S. regulators including the Securities and Exchange Commission (SEC), Treasury Department, and Federal Reserve are stepping up oversight of the rapidly growing $3tn private credit market, amid rising investor concerns, fund withdrawals, and questions over potential systemic risks. The SEC has launched multiple early-stage investigations into large private credit managers, focusing on loan valuations, adherence to disclosed investment policies, and potential conflicts in how loans are allocated across different funds, while also considering proposals to require more detailed data from the sector. At the same time, the Treasury and banking regulators are gathering information on leverage, funding structures, and banks’ exposure to private credit, with estimates suggesting total lending exposure of $410bn to $540bn. Although regulators have not yet sounded alarm over systemic risk, recent investor withdrawals exceeding $20bn, coupled with limited transparency and weaker inflows, have heightened scrutiny of the sector’s resilience, even as industry executives and major banks maintain that risks remain contained and unlikely to spill over into the broader financial system.

 

Wall Street Journal

The U.S. State Department ​has instructed diplomatic staff to bring attention to what it claims are widespread efforts by Chinese companies to steal intellectual property from U.S. artificial intelligence labs. The cable, seen by Reuters and which was sent to diplomatic and consular posts around the world, says diplomatic staff should speak to their foreign counterparts about "concerns over adversaries' extraction and distillation of U.S. AI models." 

 

Reuters

Meta Platforms is preparing to undo its acquisition of ​artificial intelligence startup Manus after China blocked the ‌deal on national security grounds. ​China had earlier ordered the U.S. tech giant to unwind its $2bn-plus ​acquisition of Manus amid tightening scrutiny by Beijing of ⁠U.S. investments in Chinese startups developing AI. China has given the two companies a preliminary ‌deadline ⁠of several weeks to reverse the transaction and fully restore Manus's Chinese assets to their original state.

 

Wall Street Journal

​Public hearings are taking place at the U.S. International Trade Commission headquarters in ⁠Washington regarding ​a set of ongoing Section 301 unfair ‌trade practices investigations into dozens of countries suspected of failing to act to prevent imports of goods made using forced labor. U.S. Trade Representative Jamieson Greer's office last month launched ​investigations into the economies of ​60 countries, including major U.S. trade partners and allies such as Australia, Canada, the European Union, Britain, Israel, India, Qatar and Saudi Arabia, saying they failed to ban imports of goods ‌produced ⁠with forced labor. Witnesses at the hearings are expected to include human rights groups, U.S. industry groups and representatives of foreign governments.

 

Reuters

The Democratic Republic of Congo is creating an armed security force to guard the country's mining sites and secure supply chains. The ​initiative will be funded by a $100m budget under strategic partnerships with ​the United States and the United Arab Emirates, the General Inspectorate ⁠of Mines (IGM) said. The 'Mining Guard' unit is expected to reach more than 20,000 personnel by the end of 2028. “The will of the President of the Republic is to clean up the entire mining sector, by eliminating ​practices that run ​counter to good ⁠governance, transparency and the traceability of minerals,” said Rafael Kabengele, the country’s inspector general of mines.

 

AP News

Financial Times

Reuters

More than 40,000 workers at Samsung Electronics' Pyeongtaek chip plant could launch an 18-day strike starting May 21 amid a dispute over the company's performance-based bonus cap. The union demands the removal of this cap and proposes allocating 15% of operating profit as bonuses. Analysts predict Samsung's operating profit could reach 300 trillion won by 2026. Samsung's previous compensation offers have not satisfied the union, which has gained leverage from successful negotiations with rival SK Hynix.

 

The Nation

The U.S. Justice Department has formally ended its criminal investigation into Federal Reserve Chair Jerome Powell, removing a major political hurdle that had stalled the confirmation of Kevin Warsh as his successor. The probe had focused on Powell’s congressional testimony regarding cost overruns tied to renovations of two historic Federal Reserve buildings, but a federal judge had already found “essentially zero evidence” of wrongdoing and ruled that earlier subpoenas were improper. The decision is expected to unlock progress in Mr. Warsh’s nomination, which had been effectively blocked by Republican lawmakers unwilling to proceed while the investigation remained open. With Powell’s term as chair set to expire on May 15th, the timing is significant for ensuring continuity in Fed leadership ahead of upcoming policy meetings. However, Mr. Powell could still remain on the Federal Reserve Board until 2028 and has indicated he will decide whether to stay based on what is best for the institution.

 

Wall Street Journal

The U.S. Treasury has canceled all contracts with Booz Allen Hamilton after losing confidence in the firm’s ability to vet and manage contractors, following a major IRS data leak in which a former Booz employee disclosed confidential tax records of high-profile individuals between 2018 and 2020. Treasury Secretary Scott Bessent said the decision reflects concerns over inadequate screening and safeguarding of sensitive taxpayer data, despite the incident occurring on government systems, while Booz Allen defended its role, noting it cooperated with the investigation and does not store IRS data, with the terminated contracts previously totaling $21m in obligations.

 

FedScoop

Starbucks is encountering resistance from some Seattle-based employees over plans to relocate roles to its new $100m Nashville office, with staff reportedly objecting to relocation terms including potential pay cuts or job losses. The company aims to create 2,000 jobs in Nashville as part of its expansion strategy, offering incentives such as stock grants and relocation support, but morale has reportedly declined among affected teams amid concerns over limited decision time and changing employment conditions.

 

The Tennessean

Procter & Gamble has warned higher oil prices could cut around $1bn from fiscal 2027 profits, as the Iran conflict drives up costs for packaging, transport and materials. The company expects earnings growth to sit at the lower end of forecasts, with additional short-term cost pressures already impacting margins. Despite these challenges, P&G reported strong quarterly results, with sales and earnings beating expectations, supported by price increases and product innovation. However, executives cautioned that rising costs and consumer sensitivity may limit further price rises, as inflation and geopolitical uncertainty weigh on demand.

 

Bloomberg

CNBC

Financial Times

Reuters

Supporters of a proposed billionaire tax in California claim to have collected nearly 1.6 million signatures, almost double the required amount for the November ballot. Advocates, including Suzanne Jimenez, chief of staff of the Service Employees International Union-United Healthcare Workers West, argue that the tax is essential to offset federal healthcare funding cuts, saying: “Most Californians and most billionaires recognize how reasonable and necessary this proposal is.” The tax would impose a one-time levy of up to 5% on taxpayers and trusts with assets over $1bn, potentially raising $100bn for healthcare and education. However, opponents, including Rob Lapsley of the California Business Roundtable, warn that it could harm the economy and lead to higher taxes for all Californians, saying: “This is an everyone tax that is called a billionaire tax.”

 

Los Angeles Times

New York Times

Wall Street Journal

According to a Reuters/Ipsos poll, 64% of Americans oppose the Trump administration's efforts to end birthright citizenship for children born in the U.S. The poll, conducted from April 15-20, also revealed stark partisan divides: only 9% of Democrats support ending the policy, while 62% of Republicans favor it. Trump's executive order was challenged in court and Supreme Court justices are expected to rule ​by the end of June; the high court, which has a 6-3 conservative majority, appeared unlikely to side with Trump during an April 1 oral argument.

 

U.S. News