Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

Apple has sued OpenAI, alleging that former employees, including hardware chief Tang Tan, helped obtain trade secrets as the AI company develops devices that could challenge the iPhone. The case echoes Apple’s lengthy legal battles against Android manufacturers and may help slow staff departures or delay a rival before it launches hardware. OpenAI denies seeking competitors’ confidential information, while chief executive Sam Altman said he has “tremendous respect” for Apple. The dispute exposes Apple’s vulnerability after struggling to produce leading AI products and relying on Google technology for its redesigned Siri. However, Apple retains major advantages through its chips, installed device base and control over access to billions of users. The lawsuit may buy incoming chief executive John Ternus time, but Apple’s future position will ultimately depend on developing compelling AI devices and services.

 

CNBC

Forbes

Wall Street Journal

Demographer Steven Ruggles forecasts that slowing population growth could shrink the U.S. labour force by 2.1m between 2030 and 2040, strengthening worker bargaining power and raising wages. Lower fertility, reduced immigration growth and plateauing female participation are limiting workforce expansion. Ruggles said labour scarcity would create “a huge incentive to adopt labor-saving devices, like AI.” Research also suggests businesses respond to fewer young workers by investing in productivity-enhancing technology, although AI’s gains may arrive too slowly or displace workers instead.

 

Wall Street Journal

U.S. farmers and agricultural groups are warning that the rapid expansion of AI data centres in rural areas could reduce farmland and increase competition for water and electricity. Industry leaders fear the loss of productive agricultural land, rising utility costs and pressure on livestock and crop production. While technology companies argue data centres use resources efficiently and can support local economies, farming organisations are urging policymakers to balance digital infrastructure growth with long-term food production and rural sustainability.

 

The Wall Street Journal

Starbucks is developing artificial intelligence (AI)-assisted software to replace some of the applications it currently buys from technology vendors, including Microsoft and IBM, as part of a broader effort to cut costs and reduce its reliance on third-party software. The coffee chain is building in-house alternatives to Microsoft's inventory management system and IBM's maintenance software, with some tools expected to launch by the end of 2027, subject to testing. The initiative forms part of Starbucks' wider turnaround strategy, which includes a target to reduce costs by $2bn, with the company spending around $400m annually on software alone. Starbucks is also reviewing all of its technology contracts and has already reduced its enterprise technology budget by around $30m this fiscal year, including $10m in software savings. 

 

Los Angeles Times

OpenAI's second-ranking executive, Fidji Simo, has announced she will step down from her full-time role after an extended medical leave, citing a worsening neuroimmune condition, and will remain with the company as a part-time advisor. Her departure creates another leadership vacancy as OpenAI prepares for a potential IPO and intensifies competition with rival Anthropic in the enterprise AI market. Simo, who joined OpenAI last year to oversee the company's product and business operations, led initiatives including the introduction of advertising in ChatGPT, new health-related features, and the development of AI coding tools for businesses. Her responsibilities will now be divided among President Greg Brockman, finance chief Sarah Friar, and chief strategy officer Jason Kwon, as chief executive Sam Altman faces the task of reshaping the leadership team during a period of heightened competitive and strategic pressure.

 

CNBC	Wall Street Journal

Federal Reserve Chair Kevin Warsh has appointed members to five independent task forces that will examine key issues affecting U.S. monetary policy as part of his broader effort to reshape the central bank. The groups include academics, former central bankers, and business leaders such as former Walmart chief executive Doug McMillon, Andreessen Horowitz cofounder Marc Andreessen, and Microsoft Xbox CEO Asha Sharma, and are expected to deliver recommendations to the Federal Open Market Committee by the end of the year. The task forces will study topics including productivity, inflation, and the use of economic data in policymaking, with their findings potentially influencing the Fed's future approach to interest rates. Warsh has suggested that sustained productivity gains driven by artificial intelligence could support lower interest rates, although some Fed officials have warned that AI could also fuel inflation if demand outpaces supply.

 

CNN

CNBC

New York Times

Reuters

The International Energy Agency (IEA) has warned that global gasoline and diesel supplies could tighten this summer as conflicts in the Middle East and Russia continue to disrupt refinery operations. Shipping restrictions through the Strait of Hormuz following the conflict involving Iran have forced Gulf refiners to reduce output, while Ukrainian attacks on Russian refineries and Moscow's subsequent diesel export ban have added further pressure to global fuel supplies. Despite easing crude oil prices following a temporary ceasefire earlier this year, demand for gasoline has remained strong as governments seek to shield consumers from higher fuel costs, leading to faster-than-normal declines in industry inventories. The IEA cautioned that fuel markets could tighten further if refinery disruptions continue or if shipping through the Strait of Hormuz is significantly disrupted again.

 

Financial Times

Reuters

The Department of Justice (DOJ) is investigating allegations against United Auto Workers (UAW) President Shawn Fain, who is accused of improperly benefiting his fiancée and retaliating against senior union member Rich Boyer. Internal documents reveal that the DOJ has initiated a grand jury investigation based on findings from the union's monitor, Neil Barofsky. Fain has denied the allegations, labeling them as "bogus," and is campaigning for re-election later this year. The monitor's report indicated that Fain retaliated against Boyer but deferred disciplinary action pending further review. Fain claims Boyer provided false information to the monitor and suggests that the investigation is politically motivated due to past disagreements over the union's stance on Gaza. The UAW has been under federal oversight since a 2020 corruption scandal involving embezzlement by union officials.

 

U.S. News

California regulators are pursuing a $22m penalty from PG&E, alleging violations linked to the 2022 Mosquito fire in Placer County. The fire, which ignited on September 6, 2022, burned over 76,000 acres and destroyed 78 structures, prompting a state of emergency declaration by Gov. Gavin Newsom. The California Public Utilities Commission (CPUC) found that PG&E failed to maintain its power lines and delayed reporting the fire by two days. Daniel Kushner, PG&E's director of risk and electric compliance, stated that the destroyed equipment "were not involved in the ignition" of the fire and attributed the destruction to "internal miscoordination." In a proposed settlement, PG&E has agreed to pay $21m to California's general fund and up to $1m for a third-party review of its policies, pending CPUC approval on August 13.

 

Los Angeles Times

Press freedom groups and Democratic senators criticised federal subpoenas ordering four New York Times journalists to testify about reporting on security concerns involving President Donald Trump’s new Air Force One. The Justice Department said reporters were not targets and that it was investigating classified leaks. National Press Club President Mark Schoeff Jr. urged officials to withdraw the subpoenas, arguing that “a free and independent press serves the people, not the government.” The Times called the action an attempt to intimidate journalists and conceal government operations.

 

Politico

Volkswagen could eliminate about 50,000 additional jobs worldwide as it seeks to close a 20% cost disadvantage against comparable companies. Chief executive Oliver Blume told staff that the estimate represents a “theoretical deduction” rather than a confirmed target, with the group still assessing what reductions are necessary and feasible across its brands, businesses and regions. The potential cuts would come on top of 50,000 positions already agreed across Volkswagen, including at Porsche and Audi. Blume said further savings are required to improve competitiveness, signalling that the German carmaker’s restructuring could become considerably larger as management reviews operations throughout the global group.

 

Reuters

Rising marijuana positivity rates are prompting U.S. employers to reconsider whether pre-employment drug screening remains useful. Quest Diagnostics found that 4.4% of urine tests were positive in 2025, up from 3.9% in 2021, while 15% of hair tests detected cannabis and random hair screenings reached 21%. Outside safety-sensitive industries, many companies increasingly treat off-duty use like alcohol consumption and fear strict testing will reduce applicant numbers. Employment lawyer Todd Logsdon said some employers warn: “If I test for that, I’m not gonna have any applicants.” Around half of surveyed employers excluded cannabis from pre-hire testing, while several major companies have relaxed their policies. Differing state protections and possible federal reclassification create further uncertainty. Transport and construction employers are expected to retain testing, but other businesses may increasingly focus on workplace impairment. Meanwhile, cocaine, amphetamine and methamphetamine positivity increased, although fentanyl detections fell by half.

 

The Wall Street Journal

Circle Internet Group has received approval from the U.S. Office of the Comptroller of the Currency to establish Circle National Trust, a federally regulated national trust bank that will provide digital asset custody services and strengthen the infrastructure supporting its USDC stablecoin. The approval marks a significant regulatory milestone, with Circle saying federal oversight will enhance transparency, governance, and confidence in its blockchain-based financial services. Initially, Circle National Trust will provide custody services for the company and its affiliates, with the potential to expand to a limited number of institutional clients, including banks and other financial institutions. The approval follows Circle's application last year and a conditional approval granted in December, while the company's shares rose 13% in premarket trading on the news.

 

PYMNTS

Wall Street Journal