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

Alibaba has secured a U.S. federal court ruling preventing the Trump administration from enforcing lobbying restrictions linked to its inclusion on a Pentagon blacklist of companies allegedly supporting China's military. The ruling blocks a measure that prohibited the U.S. Department of Defense from doing business with companies represented by lobbying firms that also work for blacklisted Chinese entities, a restriction that had prompted several major U.S. lobbying firms to sever ties with Chinese technology businesses. Alibaba was added to the Pentagon's 1260H blacklist in June 2026 and has challenged its designation, maintaining that it has no involvement with the Chinese military.

 

Bloomberg

Reuters

Dongpeng Beverage and Mengniu, two of China's largest drinks and dairy producers, have terminated their sponsorship agreements with French soccer star Kylian Mbappé after an unverified video appeared to show him referring to former Chinese leader Mao Zedong as a “dictator”. The footage, in which Mbappé seemingly discusses an internet meme depicting his face superimposed onto Mao's image, has sparked widespread criticism on Chinese social media. Both companies announced the immediate termination of their partnerships, citing zero-tolerance policies towards behavior that offends Chinese national sentiments. Mbappé, who previously enjoyed significant popularity in China, has faced calls for his image to be removed from branded products, although the authenticity of the video has yet to be independently verified.

 

Bloomberg

France 24

The Guardian

Bloomberg reports on the impact of the deadly attacks by Iran-backed Yemeni militants and the broader regional war on Saudi Arabia's non-oil sector, observing that the disruption has “effectively shut [Riyadh's] financial district.”  Tim Callen, a former International Monetary Fund mission chief for Saudi Arabia, said: “The attacks on Saudi take away one of the investment attractions of the past, namely stability in an unstable region . . . With the risk of escalation in the U.S.-Israel attacks on Iran, things don’t look likely to get better in the short-term.”

 

Bloomberg

The European Union is to propose new rules mandating the bloc's 27 member states to have climate resilience plans in place to deal with average global temperatures rising 3C above pre-industrial levels by the end of the century. Members will be required to have national plans for how they will adapt by end-2030. Climate change “is threatening to increasingly undermine Europe’s social and territorial cohesion,” said a draft document, which added: “Climate resilience is becoming increasingly relevant.” Bloomberg notes that Europe is the fastest warming continent and could see average temperatures rise up to 5C by the end of the century.

 

Bloomberg

Financial Times

The Federal Reserve is expected to leave interest rates unchanged at 3.75%–4% at its October meeting, despite stronger-than-expected September inflation data strengthening the case for further tightening. Consumer and wholesale price increases have raised concerns that inflation remains stuck near 3%, above the Fed’s 2% target, while substantial artificial intelligence (AI) investment, higher energy costs, and tariffs continue to support economic activity and put pressure on prices. However, Fed Chair Kevin Warsh and other senior officials have signaled a preference for patience following September’s rate increase, reducing market expectations of an October hike to approximately 15%. Policymakers are also mindful of financial market volatility and the proximity of the November 3rd midterm elections, although officials maintain that politics do not influence their decisions. While some Fed officials favor more immediate tightening to contain inflation, investors widely anticipate another rate increase in December, with some economists forecasting additional hikes in early 2027.

 

Wall Street Journal

A Washington grand jury has refused to indict Cassidy Hutchinson, the former White House staffer who provided testimony against President Donald Trump before a House committee investigating the 6 January 2021 U.S. Capitol insurrection. Republican lawmakers had accused her of lying under oath in her testimony in 2022 about Trump's behavior on Jan. 6. Associated Press says the DOJ's failure to secure a grand jury indictment against Hutchinson is the latest setback in its efforts to charge perceived adversaries of Trump.

 

CNBC

Washington Post

Associated Press

Anthropic's AI model Claude bypassed a paywall ​and accessed publicly available U.S. ‌state of Georgia aggregate voter counts without human authorization. “Claude did not access the state’s voter registration system, change any voting records, or pull any individual voter records,” Anthropic said. The company, which earlier this month identified instances of ​Claude "working around a restriction to reach data that ‌was ⁠gated by a token or a fee," said it had since put in place guardrails to prevent similar actions happening again. 

 

Axios

Reuters

The Guardian

President Donald Trump has said he ​would ban the term ‌artificial intelligence in documents "and everything else", as he ​questioned why the ​Wall Street Journal was not ⁠using his preferred ​term, super intelligence. "When will ​The Wall Street Journal start calling Artificial Intelligence (AI), a very ​bad and inaccurate name, ​SI (Super Intelligence), the name which ‌virtually ⁠everyone else is using, or soon will be," Trump wrote on ​Truth ⁠Social. "In short order, we will be ​officially BANNING the ​term, “AI/Artificial ⁠Intelligence,” in all relevant documents, and everything else, ⁠due ​to its inaccuracy."

 

Gizmodo

The Hill

Forbes

Reuters

Uber is facing a class action lawsuit in Australia from women who have experienced sexual assault or harassment while using its services. Law firm Slater and Gordon is investigating whether Uber's policies adequately protect female passengers and if the company has responded appropriately to complaints of driver misconduct. Cindy Bors, the firm's practice group leader, emphasized that the legal action focuses on Uber's responsibility for passenger safety, saying: “Women should be able to get home in an Uber safely.” The investigation follows numerous legal actions globally regarding Uber's handling of such claims. Despite Uber's insistence that its drivers are independent contractors, Bors argues that this should not shield the company from accountability in cases of sexual assault. Taylor Mostacci, a victim of an indecent assault by an Uber driver, highlighted the lasting impact of her experience, saying: “I'll never risk being in an Uber by myself.”

 

Sydney Morning Herald

Major consumer goods companies including Coca-Cola, Procter & Gamble, Nestlé, and Reckitt Benckiser have warned of further price increases in 2027 as the U.S. war on Iran drives up energy, raw material and freight costs, putting additional pressure on profit margins. Procter & Gamble has raised its estimated profit impact from rising costs to $1.4bn from $1bn, while Reckitt has indicated that further price increases may be necessary after lowering its annual revenue forecast. The warnings come as consumers in Europe and North America remain sensitive to higher prices, with companies struggling to balance protecting profitability against weakening demand. Nestlé has acknowledged that price increases can temporarily reduce sales volumes, highlighting the challenges facing manufacturers as persistent inflationary pressures threaten to further constrain household spending.

 

Reuters

Anthropic finance chief Krishna Rao faces growing pressure to demonstrate sustainable profitability as the artificial intelligence company prepares for a Nasdaq IPO under the ticker ANT. Anthropic reported revenue of $16.29bn for the first half of 2026, up from $1.16bn a year earlier, while its operating loss narrowed from $2.14bn to $693m. However, its net loss reached $80.75bn, largely reflecting a $72.39bn accounting charge related to financing instruments. Computing infrastructure expenses climbed to $8.95bn from $2.33bn, highlighting the substantial costs of supporting AI growth. Anthropic's enterprise customer base continues to expand, with more than 11,900 customers generating at least $100,000 annually as of September 30th. Investors will closely examine whether the company can sustain revenue growth, manage infrastructure commitments, and improve profitability amid intensifying competition, potential pricing pressures, and governance risks.

 

Fortune

Law firm Weil Gotshal & Manges has hired restructuring and merger specialists from Davis Polk to assess its future, including a potential wind-down, following a collapse in merger talks with Willkie Farr & Gallagher. The firm has faced mounting partner departures, with prominent M&A lawyers joining rivals including Cravath, while Skadden has also recruited two Weil partners. 

 

Law

Bloomberg Law

Financial Review

Financial Times

Reuters

As healthcare costs rise, many employers are reducing or eliminating coverage for GLP-1 drugs used for weight loss. A recent WTW survey revealed that only 53% of employers with over 100 employees currently cover these medications, down from 57% in 2025. Additionally, 16% of employers are considering dropping coverage, a significant increase from 9% last year. But some companies say covering the drugs, whatever the price, is worth it based on employee health. “We spend about $250 million or more on GLPs, and that's up from zero” four or five years ago, Bank of America CEO Brian Moynihan told CNBC in August. “We see a great impact on the employees . . . our view is that [because of] the long-term health benefits, plus there may be more short-term health benefits . . . it's a good investment.”

 

CNBC

Apple has acknowledged display issues affecting a small number of its newly launched iPhone Duo devices, following reports of cracked inner screens and bright horizontal lines appearing near the handset’s hinge. The company’s first foldable smartphone, which went on sale on Friday with prices starting at $1,999, has attracted strong initial demand but faced concerns over durability within days of release. Apple has confirmed that affected devices will be replaced under its AppleCare warranty, while out-of-warranty inner-screen repairs could cost $999. Independent repair specialist iFixit has suggested that the problems may be linked to the device’s complex hinge mechanism, although the cause remains unconfirmed. Despite the early technical issues, Apple has reported positive customer feedback and growing developer support, with applications being updated to take advantage of the phone’s larger foldable display.

 

USA Today

Bloomberg

CNBC

Reuters