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Lululemon has apologized after a promotional yoga event at the Great Wall of China attracted criticism on social media over the alleged use of a Japanese drum, highlighting the cultural sensitivities facing foreign brands in the Chinese market. The Canadian athleisure group issued an apology on Chinese social media platform Weibo to both actor Zhu Yilong, who performed at the event, and the wider public after accusations circulated that the drum used during the performance was Japanese. Lululemon said it had failed to identify potential controversy due to limitations in its expertise, acknowledged that it should have been more cautious in its planning process, and removed all related promotional content. The incident comes amid heightened tensions between China and Japan and underscores the reputational risks international companies face when marketing products in China, where cultural and political issues can rapidly gain traction online. Last year, outdoor clothing brand Arc’teryx faced a similar backlash following a fireworks event in Tibet.

 

Nikkei Asia

CNN

Caixin Global

Financial Times

The European Parliament has approved a long-delayed trade agreement with the United States, removing a key obstacle to a deal that helped avert President Donald Trump’s threat to impose higher tariffs on European car exports. Lawmakers voted 440 to 151 in favor of the agreement, which will see the European Union eliminate tariffs on U.S. industrial goods and selected agricultural products, while American tariffs on European imports remain higher. The deal, originally agreed between Mr. Trump and European Commission President Ursula von der Leyen last year, was delayed by political disputes and legal challenges in the U.S. The agreement was designed around a 15% tariff rate on E.U. exports to the U.S., but a subsequent U.S. Supreme Court ruling forced the administration to rely on temporary emergency powers, resulting in a 10% additional levy on top of existing duties. The agreement still requires formal approval from EU member states.

 

Euronews

Financial Times

New York Times

Politico

Insurance executives fear that insurers, backed by a flood of financial capital, may now be underpricing the risk they are taking on. As risks multiply, coverage  becomes cheaper to buy.

 

Financial Times

U.S. import-price inflation remained firm in May, rising 1.9% year-over-year and exceeding economists’ expectations, as higher fuel and nonfuel import costs continued to pressure prices despite a slight moderation from April’s pace. The Labor Department reported that import prices increased 1.9% in May, compared with a 2% rise in April and above forecasts of a 1.1% increase. Fuel import prices climbed 12.5% year-over-year, slowing from April’s 18.6% increase as global markets adjusted to the effects of the Iran conflict, while nonpetroleum import prices rose 0.8%, up from 0.6% in April. Over the past 12 months, import prices have increased 6.7%, marking the strongest annual import-price inflation since August 2022 and a sharp acceleration from the largely flat readings seen through much of last year. The figures exclude tariffs and transportation costs, providing a measure of underlying import-cost pressures facing the U.S. economy. 

 

Wall Street Journal

China’s economy showed signs of renewed pressure in May, with retail sales falling 0.6% year on year, the first decline since December 2022, while fixed asset investment dropped 4.1% year to date as the property downturn continued to weigh on activity. Exports remained a bright spot, rising 19.4%, and industrial production grew 4.5%, but weak consumer confidence, falling new home prices and a 16.2% decline in property investment highlighted the challenges facing policymakers.

 

Financial Times

Reuters

South China Morning Post

Yum Brands has agreed to sell Pizza Hut for $2.7bn, with private equity firm LongRange Capital acquiring the business outside mainland China for $1.5bn and Yum China purchasing the China operations for approximately $1.2bn. The sale follows years of underperformance at Pizza Hut, whose global sales fell 2% last year while Yum Brands' overall sales increased 5%. The chain has struggled to adapt to the growth of delivery-focused competitors such as Domino’s and, more recently, third-party delivery platforms including DoorDash and Uber Eats. Founded in 1958, Pizza Hut grew into the world's largest pizza chain but has faced declining sales and restaurant closures as consumer preferences shifted away from its traditional dine-in model.

 

Chicago Tribune

CNBC

Reuters

Wall Street Journal

World Health Organization (WHO) epidemiologist Olivier le Polain has indicated that the spread of Ebola in the Democratic Republic ​of Congo may be much wider than official estimates. "There are still ​many blind spots in some areas that are high risk," he said. "Surveillance really needs to be strengthened in ​those areas." Le Polainhe ​said the WHO does not yet have projections ​for ⁠the size of the epidemic. The U.S. CDC has said it could be on ⁠the ​same level as the 2014-2016 ​West Africa outbreak, which caused more than 11,000 deaths.

 

Reuters

The European Banking Authority (EBA), the E.U.’s banking regulator, has rejected industry calls for a major overhaul of the bloc’s capital requirements, setting out what it called "targeted" and "balanced" proposals ‌to simplify the bank capital framework without weakening the sector's resilience. The EBA suggested that supervisors set Pillar 2 Guidance when they deem a lender's own management buffer to be too thin under stress or when its capital planning isn't sufficiently conservative. The regulator's suggestions, which are likely to be key for a forthcoming European Commission report on banking competitiveness that is expected next month, include "Clear and transparent" methodologies to assess potential overlaps between bank-specific and sector-wide capital requirements and prioritizing qualitative measures over quantitative capital requirements.

 

Bloomberg

Financial Times

Reuters

Meta CEO Mark Zuckerberg has told staff that the social media company has made mistakes in ​the AI transformation of its workforce, according to an internal memo seen ‌by Reuters. "Given ⁠the complexity of these changes, we've made mistakes and will almost certainly make more," ​Zuckerberg wrote in the memo. He also said that he is "focused on providing as much stability as possible" regarding future organizational changes. "I don't want to overpromise because the world is changing in ways that are out of our control," he wrote. Zuckerberg reiterated that Meta does not expect more company-wide layoffs this ​year.

 

Reuters

Kohl’s has appointed former Foot Locker chief operating officer Elliott Rodgers as its new COO, effective September 9th, as the department store retailer continues efforts to improve performance and execute its turnaround strategy. Mr Rodgers will oversee Kohl’s enterprise operations, including stores, supply chain and distribution centers, procurement and loss prevention, reporting directly to chief executive Michael Bender. The appointment follows Kohl’s recent hiring of Matt Ward as head of supply chain and comes as the retailer works to improve its merchandise offering, restore previously reduced product categories and strengthen its value proposition after several years of weak sales performance.

 

Wall Street Journal

The International Labour Organization (ILO) has agreed ​to adopt the first binding employment standards for gig workers in sectors such as ride-hailing and food ‌delivery. The Decent Work in the Platform Economy Convention, which was adopted at the 114th annual International Labour Conference in Geneva, aims to extend labor protections to hundreds of millions of people worldwide who work through digital platforms. A growing number of workers are being excluded from standard labor protections due to their classification as independent contractors rather than employees, and the protections include an end to such classification, as well as enforcement of minimum wage requirements and obligations including healthcare, sick leave and social security contributions. “For the first time in the history of international law, the women and men who move our cities, who clean and care in our homes . . . will be named, recognised and protected by a binding international standard,” said Amanda Brown, vice chair of the ILO’s Workers’ Group.

 

Al Jazeera

Reuters

Daily Star (Bangladesh)

Companies are racing to set rules on how employees can bet on prediction markets. Recent high-profile cases have highlighted how the platforms’ soaring popularity could facilitate opportunities for insider trading.

 

Financial Times

Record-high gold prices are prompting dealers to melt down some vintage luxury watches, particularly mid-market models from brands such as Omega and TAG Heuer, where the value of the gold exceeds resale prices. Traders say rising bullion values have made scrapping certain watches more profitable than selling them second-hand. While high-end brands such as Rolex and Patek Philippe remain largely protected by strong collector demand, experts warn that historically significant timepieces are being permanently lost.

 

Reuters