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The Digital Operations Resilience Act (DORA) comes into force today, and UK businesses are grappling with rising costs associated with compliance, City AM reports. Tim Wright, a technology lawyer at Fladgate, said: “Judging from the activity we are seeing, many financial institutions are not fully prepared for DORA implementation.” Nearly 43% of financial services are predicted to miss the deadline, with many firms spending over €1m (£842,000) on compliance efforts. The pressure is particularly intense for smaller firms, which face resource constraints and complex requirements. James Hughes from software company Rubrik has stressed the need for understanding critical data and mitigating risks, and warned that failure to comply could lead to fines from the Financial Conduct Authority (FCA).

 

City AM

The cost of a ransomware attack against lab services provider Synnovis last year, which left hospital systems crippled for months, was more than seven times the company’s most recently disclosed annual profit. The cyber attack on the pathology firm — which is part-owned by the NHS — cost the provider £32.7m, accounts reveal.

 

Financial Times

Health Service Journal

Gateshead Council has said that a cyber-attack in the early hours of January 8 compromised the personal data of an unknown number of residents, and it is contacting people affected to advise them to be alert for phishing emails or fraudulent activity, and to consider changing their passwords. The council has said the breach is being investigated by the North East Regional Crime Unit. Mike Barker, strategic director for corporate services and governance, urged residents to be "vigilant for anything that does not seem right, and be cautious when sharing your personal information." The council has said its "robust security measures have meant the potential damage this could have caused has been mitigated, and we are still able to operate our day-to-day business activities."

 

BBC News

Daily Mirror

TechCrunch reports on Barcelona's popularity as a hub for spyware startups. Natalia Krapiva, legal counsel at nonprofit Access Now, which specialises in investigating and researching the technology, said: “It is a concerning development if a major city in Europe becomes a hub for spyware makers." She said the industry “goes hand in hand with corruption and abuse of power.” John Scott-Railton, a senior researcher at the Citizen Lab, added that “This will add fuel to the fire of Europe’s spyware crisis. If experience is a guide, it’s only a matter of time before this tech winds up used by customers against Spain’s allies and EU partners."

 

TechCrunch

The Institute and Faculty of Actuaries (IFoA) has released a report warning that global economic growth could decline by 50% between 2070 and 2090 due to the severe impacts of climate change. Sandy Trust, the report's lead author, said: “There is no realistic plan in place to avoid this scenario.” The report, titled Planetary Solvency – finding our balance with nature, criticises current economic theories that overlook the risks posed by nature degradation. It highlights that without urgent action to decarbonise and restore ecosystems, the world faces catastrophic consequences, including potential state failures and mass migration.

 

The Guardian

The Financial Conduct Authority (FCA) is contemplating an increase to the £100 contactless payment limit as part of its response to Labour’s calls to eliminate barriers to economic growth. City sources indicate that the FCA's discussions are still in the early stages, and it remains uncertain whether a formal proposal will emerge. The news comes after the Chancellor and Business Secretary met a number of regulators who were told that "economic growth is the absolute top priority for the government, as part of the Plan for Change to put more money in people's pockets.” Regulators are also understood to be looking at allowing banks and other lenders greater flexibility to allow “responsible risk-taking” from borrowers, according to the Times.

 

Sky News

The Times

The Financial Conduct Authority (FCA) has become embroiled in a contentious activist campaign targeting seven investment trusts, driven by concerns for retail investors' interests. The FCA has reached out to major retail investment platforms, including Hargreaves Lansdown and AJ Bell, regarding their communication with shareholders about upcoming votes on board memberships. Activist investor Boaz Weinstein, the founder of Saba Capital Management, is pushing for a vote to replace the boards, citing poor performance accountability. With stakes of between 19% and 29%, Saba aims to secure 50% of votes to succeed. Richard Stone, chief executive of the Association of Investment Companies, has stressed the need for proactive communication, saying: "With so much at stake, the regulator can't just rely on people doing the right thing." The FCA, however, views the voting rules as internal matters governed by the Companies Act.

 

Financial Times

The Times

France's central bank governor Francois Villeroy de Galhau has cautioned that any moves to pursue financial deregulation by Donald Trump's US administration would raise the chances of a financial crisis occurring. He said that "Financial deregulation as some people are calling for in the United States would be dangerous, including for the financial system itself." Villeroy also noted that light-touch regulation for non-bank financial actors including funds, venture capital, private equity as well as cryptoassets would also jeopardise financial stability.

 

Reuters

Ofcom has announced that all websites hosting pornographic content, including social media platforms, must implement stringent age verification methods by July under the Online Safety Act. This initiative aims to prevent children from accessing explicit material, which research shows many encounter as early as age nine. However, some industry voices, including Aylo, the parent company of Pornhub, argue that such measures may drive users to less safe areas of the internet. Privacy advocates also caution that many age verification methods could pose risks to both children and adults.

 

BBC News

In a landmark UK class action antitrust trial, Apple's newly appointed chief financial officer, Kevan Parekh, has refuted allegations that the App Store enjoys profit margins of around 75%. He said: "I wouldn't say they're accurate," in response to claims made by barrister Michael Armitage, who cited evidence from US litigation suggesting high operating margins. The £1.5bn case, led by class representative Rachael Kent, accuses Apple of monopolistic practices by compelling developers to use its App Store for app distribution. The claimants argue that the "excessive and unfair" commissions charged by Apple are ultimately passed on to consumers. Apple, however, contends that its integrated system offers significant benefits and faces intense competition in the market. City AM notes that there are over 20 class actions now active in the UK against Apple, Google and its parent firm Alphabet, Microsoft and Meta, with an estimated total of more than £30bn in alleged damages.

 

Financial Times

Techarati

City AM

Norway's anti-discrimination tribunal, Diskimineringsnemnda, has ruled that Air France's policy of not seating men next to unaccompanied children is discriminatory. The case arose when Dominique Sellier was asked to change seats on a flight from Oslo to Paris in October 2022. He filed a complaint. Air France defended its policy by citing that men are involved in 97.93% of suspected sex crimes, and argued it was necessary to protect minors from potential threats. Sellier said Air France's generalisation about men went too far. "How can we accept this kind of suspicion because we belong to the male gender?" Although he won his case before Diskimineringsnemnda, which was made up of three legal experts, Sellier said he had received no damages nor an apology from Air France.

 

France 24

The effectiveness of the UK's sanctions regime against Russia is being questioned following revelations from HM Revenue and Customs (HMRC). In response to a Freedom of Information request, HMRC admitted it has no central record of ongoing investigations into Russian sanctions. Despite issuing six fines since 2022, the department has not disclosed the names of the companies involved or the specifics of their violations. Mark Handley, a partner at Duane Morris, expressed surprise at HMRC's lack of knowledge regarding the number of investigations, saying: "If you're trying to organise an organisation like HMRC . . . you would think that they might know how many investigations they have ongoing."

 

Sky News

Emma Reynolds has been appointed as the new economic secretary to the Treasury, succeeding Tulip Siddiq, who resigned amid corruption allegations linked to her aunt. Despite previous lobbying efforts against stricter regulations on China while working for TheCityUK, Reynolds has been cleared to make decisions regarding the country. Sir Keir Starmer's spokesman said, that following discussions with the Treasury's top civil servant, James Bowler, "There is no need for any recusal nor any changes to her portfolio." The appointment has raised concerns about the so-called "revolving door" between government and lobbying roles. Starmer has previously said that a Labour government would eliminate such practices.

 

The Times

Oil giant BP is to cut about 4,700 staff, more than 5% of its total workforce, as part of plans to cut costs. The UK firm, which has a global workforce of about 90,000 people, confirmed the job losses on Thursday, but has not said how many roles will be affected in each country it operates in. An email to staff also confirmed that about 3,000 contractor positions will be axed this year. It is understood the cuts will be applied to those in office-based jobs rather than operational roles. In an email to staff, chief executive Murray Auchincloss said: "We have got more we need to do through this year, next year and beyond, but we are making strong progress as we position BP to grow as a simpler, more focused, higher-value company." Auchincloss added that he recognised "the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams." 

 

BBC News

Chinese officials and automakers are showing interest in acquiring German factories, particularly those of Volkswagen, which is planning closures amid economic challenges. A source revealed that such a move could enhance China's influence in Germany's prestigious auto industry. "We are committed to finding a continued use for the site," a Volkswagen spokesperson said, highlighting the company's focus on viable solutions for its operations. The potential investment comes as Chinese companies seek to establish a manufacturing presence in Europe to avoid EU tariffs on electric vehicles. Investment decisions would hinge on the new German government's stance towards China following an election in February, the source said.

 

U.S. News

Employees at business outsourcing service company Teleperformance in Greece who provide customer service for major tech firms including Apple, Google, and Netflix are on strike, alleging retaliation against union activities and excessive monitoring. Approximately 12,000 workers are demanding improved working conditions, including permanent contracts, fair wages, job security, and reduced hours. The unrest began in early 2024 due to stagnant wages and increasing productivity pressures. Nikos Spyrelis, a worker and president of the Setep union, said: "We are constantly monitored, recorded, and pressured to increase productivity." Many employees face high living costs, and some report harassment and bullying. Despite the ongoing strikes, Teleperformance has yet to agree to a collective labour contract, leaving workers' concerns unaddressed.

 

GreekCitytimes

Currys is set to increase its reliance on outsourcing to India due to rising employment costs in the UK, says the electrical retailer's chief executive Alex Baldock. The company anticipates an additional £30m in costs following the Chancellor's recent Budget, which introduced a £25bn National Insurance tax on employers and a 6.7% minimum wage increase. Baldock expressed concern that the policies could harm job creation, saying: "The National Insurance tax is a tax on jobs that doesn't benefit colleagues at all."

 

The Daily Telegraph

Next CEO Lord Wolfson says he is concerned that the rise in National Insurance could lead to reduced hours or job cuts. The retailer's wage bill is set to increase by £70m, and he warns that "the axe has fallen particularly hard on those entry-level, National Living Wage jobs." Lord Wolfson is calling for a staggered implementation of tax changes to mitigate the impact on employment. He has also raised concerns about a new workers' rights bill that he says could complicate staffing during peak seasons.

 

BBC News

A survey by recruitment firm Reed suggests the much-heralded four-day working week is an “impossible dream” for British workers, with many reporting that their workload is pushing them closer to working six days a week. Ian Nicholas, global managing director at Reed, suggested that the extra hours could be workers' attempts to demonstrate their value to avoid redundancy amid business cutbacks, or simply striving to keep operations running while companies struggle financially. The survey of 5,000 adults  indicated that fewer than a third of those working beyond their contracted hours were in receipt of overtime pay.

 

Daily Mirror