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The White House plans to unveil a framework for trading tokenized or ​digital versions of securities, according to people familiar with the matter, who said the U.S. Securities and Exchange Commission (SEC) ​is expected to release an "innovation exemption" for ​tokenized stocks as soon as this week. Bloomberg reports that the SEC is inclined toward a decision to allow the trading of tokens that do not have the backing or consent of the public companies whose shares they track, the people said. These “third party” tokens would be tradeable on decentralized crypto platforms, though not all such instruments would necessarily carry the same benefits as normal stocks, such as voting rights or dividends.

 

Bloomberg

U.S. tax authorities will be barred from pursuing claims against Donald Trump, his family members or his companies, under an agreement to halt the President’s $10bn lawsuit against the Internal Revenue Service. The IRS is “forever barred and precluded” from pursuing “examinations” into Trump and “related or affiliated individuals,” including his family, trusts and “related companies, affiliates and subsidiaries,” a one-page document signed only by Acting Attorney General Todd Blanche says. The document did not bear the signature of any representative of the IRS or any current Trump lawyers. The agreement applies to “tax returns filed before the effective date” of Monday’s settlement, according to the document. John Koskinen, the former IRS commissioner from 2013 to 2017, said the expanded settlement set a “terrible precedent,” and “It makes you wonder what the President has to hide in those tax returns. He’s apparently been actively trading in the stock market and, since he knows a lot more about situations than the average investor, he’s probably generated significant taxable earnings . . . Not auditing his returns is the same as giving him an easy way to, in effect, receive money from the government.”

 

Financial Times

Politico

Reuters

The Guardian

Polymarket has launched prediction markets tied to the future valuations of companies including OpenAI, Anthropic, Anduril and SpaceX. "Prediction markets are one of the most powerful tools we have for democratizing access to financial information and opportunity," Polymarket CEO Shayne Coplan said. "Today’s launch brings that power to one of the last frontiers of financial markets that retail participants have never been able to access." The platform said the new offerings, including IPO timing, valuations, earnings, and secondary market activity, will exclusively source resolution data from Nasdaq Private Market via a new partnership between the two.

 

Financial Times

The Block

World Health Organization (WHO) Director-General Tedros Adhanom Ghebreyesus has expressed his deep concern over the rapid spread of a rare Ebola outbreak in eastern Congo, where at least 131 suspected deaths and over 500 cases have been reported. The outbreak has been exacerbated by delayed testing and a lack of approved treatments or vaccines. The WHO has declared the outbreak a public health emergency, and resources are being mobilized to combat the crisis. Meanwhile, Matthew M. Kavanagh, director of the Georgetown University Center for Global Health Policy and Politics, criticized the Trump administration's decision to withdraw from WHO and make deep cuts in foreign aid: “the exact surveillance system meant to catch these viruses early,” he said.

 

Los Angeles Times

NPR / National Public Radio

Morgan Stanley has given its entire Hong Kong investment banking team special devices to use in mainland China amid rising concerns over data compliance for staff travelling to the country.

 

Financial Times

Standard Chartered CEO Bill Winters has sought to reassure staff after the Asia-focused bank announced plans to cut 15% of back-office jobs by 2030 as it expands AI. Winters said at the time: "It's not cost-cutting. It's replacing in some cases lower-value human capital with the financial capital and the investment capital we're putting in." In ​a memo to staff on Wednesday, which observed that the media coverage of the plans "may be unsettling when reduced to simple ​headlines or a quote out of context," Winters said the bank had been open that its workforce will evolve. "Some roles ‌will ⁠reduce in number, some will change, and new opportunities will emerge. We will continue to prioritize investment in reskilling and redeployment wherever we can . . . Where changes do happen, we will handle them with thought and care."

 

Bloomberg

Reuters

Anthropic has said it will allow users of its Mythos cybersecurity model to share information about ​cyber threats with others who may be exposed to similar vulnerabilities. The company last week began telling partners in its "Project Glasswing" initiative, including major tech firms such as Amazon, Microsoft, Nvidia and Apple, that they ​are at their own discretion generally permitted to share findings, best practices, tools or code developed through the program. An Anthropic spokesperson has now said: "We fully support our partners sharing ​findings with each other and companies outside of Glasswing to triage vulnerabilities," adding: "As the program ⁠has matured, we've adapted [agreements with participating companies] to ensure key information can be shared broadly - including outside the program - for maximum defensive ​impact."

 

Reuters

EY has removed a report on cyber risks in loyalty programs after researchers found it contained fabricated data, false references, and broken citations that appeared to have been generated by artificial intelligence. The report, titled Points of Attack: Uncovering Cyber Threats and Fraud in Loyalty Systems, had been used by EY consultants in Canada to market cybersecurity services. Research group GPTZero said the document referenced a nonexistent McKinsey report, confused major financial figures, and included citations that either did not exist or failed to support the claims being made. Researchers also found that the report repeatedly cited the same $200bn figure for both the global loyalty market and unredeemed loyalty points without clarification. Several footnotes reportedly linked to unavailable or irrelevant web pages. EY said it had removed the report and launched a review into how it was approved, while emphasizing its commitment to the responsible use of AI. The firm added that the report was not connected to any client work.

 

International Accouinting Bulletin

Companies that pay hackers to identify vulnerabilities in their software are being inundated with low-quality AI-generated reports, forcing some businesses to suspend the programs altogether.

 

Financial Times

The International Labour Organization (ILO) has warned that the ongoing Middle East conflict will significantly impact global job markets. An ILO report predicts millions of job losses and a decline in real wages, particularly affecting migrant workers who rely on remittances. "The conflict is expected to affect labour markets for some time, with the scale and duration of its effects depending on how the situation evolves," the report said. Meanwhile, higher energy costs and supply chain disruptions are contributing to economic strain. "Beyond its human toll, the Middle East crisis is not a short-lived disruption. It is a slow-moving and potentially long-lasting shock that will gradually reshape labour markets," said ILO chief economist Sangheon Lee. who wrote the report.  The report highlights that the worst effects will be felt in the Middle East, Gulf states, and Asia-Pacific regions.

 

Khaleej Times Online

Lululemon has urged shareholders to vote against board nominees proposed by founder Chip Wilson, accusing him of promoting “outdated perspectives” as a proxy battle over the company’s future intensifies. Mr. Wilson, the company’s largest active shareholder, has criticized Lululemon’s strategy and leadership, calling for greater focus on core consumers, merchandising and marketing investment. The retailer said electing Mr. Wilson’s nominees would weaken the board and undermine incoming chief executive Heidi O’Neill’s turnaround plans. Mr. Wilson disputed claims that settlement talks had broken down and said he remained willing to work constructively with the company.

 

CNN

CNBC

Reuters

Wall Street Journal

Citigroup has struck a deal with BlackRock’s HPS Investment Partners, the investment firm's private credit unit, to extend up to €15bn of loans to companies and leveraged buyout groups across Europe.

 

Financial Times

Brazilian Supreme Court Justice Alexandre de Moraes has ordered the capture of Ricardo Magro, the controlling figure behind one of the country’s few private oil refining and fuel distribution groups, as part of an effort to crack down on organized crime that is infiltrating the formal economy and local politics. Federal investigators believe that the entity, Refit, used a complex corporate and financial structure to conceal assets, disguise ownership and move resources overseas. The federal government had already accused Magro of being Brazil’s biggest tax evader.

 

Bloomberg