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The National Association of Insurance Commissioners (NAIC) has suspended its risk designations on the investments of insurers, after a cyber attack compromised data from rating agencies including Moody’s and S&P. Insurance Business says the suspension is more consequential than a routine processing pause because these ratings and designations sit at the center of U.S. insurance capital rules. NAIC said it was “actively working with an external cybersecurity partner to compare the scope and type of data the group posted with our own analysis.” The support organization for state insurance regulators said a complete assessment will take “at least several weeks.” 

 

Financial Times

Insurance Business

Insurance Journal

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The Bank for International Settlements (BIS) has warned that high AI spending by tech giants could trigger an investment bust, destabilising markets if financial returns underperform expectations. Record-high public debt across key economies was also a concern, along with stubborn inflation and oversight of non-bank financial firms. The BIS said economic activity had remained resilient in recent months, but policymakers must act decisively to preserve stability. "Policy actions must reinforce each other to avoid a pull and push on the global economy. Ultimately, ​success depends on sound fiscal and financial foundations," BIS General Manager Pablo Hernandez de Cos said.

 

Financial Times

Reuters

The Daily Telegraph

The International Monetary Fund (IMF) said the U.S. economy continues to demonstrate solid growth momentum and endorsed the Federal Reserve's decision to keep interest rates unchanged, while emphasizing that any future policy moves should be guided carefully by incoming economic data. IMF spokesperson Julie Kozack highlighted revised first-quarter GDP growth of 2.1% on an annualized basis, up from the previously reported 1.6%, citing a rebound in government spending, strong investment, and high labor productivity as signs of the U.S. economy's resilience. She said inflation remains above the Fed's 2% target but is expected to gradually ease, reaching that objective by the end of 2027. Ms. Kozack also welcomed the commitment of new Federal Reserve Chair Kevin Warsh to maintaining price stability, saying the central bank's decision to hold rates steady last week was appropriate given current economic conditions. She added that any future adjustments to monetary policy should be made cautiously and calibrated to evolving economic data.

 

Reuters

New orders for U.S. durable goods fell 4.5% in May to $332.1bn, a slightly steeper decline than the 4% drop economists had expected, reversing April’s 8.5% increase, according to the Commerce Department. The monthly decline was largely driven by the transportation sector, where large swings in high-value orders, such as commercial aircraft, often influence overall results. Excluding transportation equipment, durable goods orders rose 1.3%, indicating underlying demand remained relatively resilient. Meanwhile, shipments of durable goods increased 1% in May, following a 0.7% rise in April, suggesting manufacturing activity continued to strengthen despite weaker headline order figures.

 

Wall Street Journal

Google has put limits on Meta’s use of its Gemini AI models after the social media giant sought more computing capacity than the rival tech group could provide, the FT reports.

 

Financial Times

The Commodity Futures Trading Commission (CFTC) is investigating Polymarket as consumer protection advocates and states call for stricter oversight of fast-growing prediction market platforms. In a letter sent to CFTC Chairman Michael Selig, senators John Curtis (R., Utah) and Adam Schiff (D., Calif.) said the allegations in recent Wall Street Journal reporting about the social media promotion of fake bets “are deeply troubling and demand immediate scrutiny . . . The public-facing behavior alleged here does not resemble a sober financial market designed for hedging or price discovery . . . We remain concerned that the Commission is neither enforcing the law appropriately, nor is equipped to serve as a federal gambling regulator.” A CFTC spokesperson said in a statement: “We are conducting a comprehensive audit of active promotional content to ensure it complies with our standards, as well as applicable regulatory and legal disclosure requirements.” 

 

CNBC

Financial Times

Wall Street Journal

The National Highway Traffic Safety Administration (NHTSA) has proposed to end a government requirement for manual brake pedals ​in self-driving vehicles. The proposal would not apply to vehicles with human driver controls, and NHTSA said it would not drop braking performance requirements. NHTSA Administrator Jonathan Morrison said: “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance. This approach will ultimately reduce roadway crashes, prevent fatalities, and increase mobility.”  

 

Bloomberg

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NHTSA

Reuters

Reuters reports that U.S. biotechnology industry trade group BIO worked with the Food and Drug ​Administration on newly-announced plans to speed drug research. U.S. health officials said the initiative was designed "to restore America's leadership in clinical trials." BIO CEO John Crowley ​said: "We need more consistency at ​the FDA . . . We are aligned with Congress and the administration. These are bipartisan issues . . . Biotechnology is a national strategic asset." Crowley also said there is a need for standardized FDA review criteria. "There is uncertainty in the regulatory review process for many medicines, especially ​in rare diseases," he said.

 

Reuters

The European Commission is set to escalate a probe into Meta Platforms that alleges ​the platform's social media offerings are designed to be addictive to ‌children. The EU’s executive branch is preparing to issue preliminary findings that accuse Meta’s Facebook and Instagram of using exploitative design techniques to keep young users hooked, according to people familiar with the matter. Regulators haven’t set a date for when the findings will be announced, the people said.

 

Bloomberg

President Donald Trump has threatened to impose 100% tariffs on imports from European countries that introduce or expand digital services taxes targeting large American technology firms. The warning comes after the EU approved tariff reductions promised under last year's trade agreement with the U.S. Several European countries, including France, Denmark and Portugal, already levy such taxes, while others are considering similar measures. The European Commission said member states had the right to regulate and tax economic activity within their borders and described any such measures as non-discriminatory. Trump said any new tariffs would override elements of the existing EU-US trade agreement, although questions remain over the legal basis for imposing them.

 

Quartz

Wall Street Journal

Nike has appointed David Denton, currently chief financial officer of Pfizer, as its new CFO, replacing Matthew Friend as the sportswear giant continues a slower-than-expected turnaround amid supply chain challenges and intense competition. Mr Denton, who previously served as CFO at Lowe’s and CVS Health, will join Nike on August 17th. Nike has been grappling with elevated inventory levels and weak demand in key markets such as North America and China, with management acknowledging in March that the turnaround was progressing more slowly than anticipated. Analysts said the CFO change reflects the scale of the challenges facing the company, although it does not necessarily indicate further deterioration in trading performance.

 

Reuters

French oil company TotalEnergies must account for its customers’ greenhouse gas emissions, a Paris court has found. The ruling is a partial victory for climate change NGOs seeking to apply France's 2017 corporate duty of vigilance law to climate change. However, the ⁠court stopped short of ordering specific measures such as limiting overseas exploration and production or setting binding ​emissions reduction targets. The court said: “Climate-related risks and impacts to which the company may contribute through its activities fall within the scope of the law on the duty of vigilance for parent companies and ordering companies.” The city of Paris said the ruling was “a landmark decision in the history of French climate law.” The city's deputy mayor, Alice Timsit, said: “For the first time, a judge recognises that climate risks do indeed fall under the duty of vigilance owed by large corporations, and no fossil-fuel multinational can evade this responsibility.”

 

Financial Times

Reuters

The Guardian

The heat wave in Europe is officially the most severe ever recorded in the region, according to researchers at World Weather Attribution, who said such an intense June heat wave would have been virtually impossible 50 years ago. “Yes, this is climate change,” said Friederike Otto, a professor at Imperial College London and a co-author of the study. “Yes, it’s us, no, it’s not El Nino, yes, we have the solutions, no, we’re not implementing them fast enough.”

 

Bloomberg