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The Financial Stability Board (FSB), the G20's risk watchdog, says surging global share prices and other assets have left markets susceptible to a crash amid the current uncertain economic and geopolitical backdrop. "While most jurisdictions have seen a rebound in financial markets in recent months, valuations could now be at odds with the uncertain economic and geopolitical outlook, leaving markets susceptible to a disorderly adjustment," said a letter from FSB Chair Andrew Bailey dated October 8th and published ahead of G20 meetings in Washington this week. "The need for global standards and cooperation therefore remains abundantly clear," the letter said.

 

Reuters

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Companies in the UK should plan for potential cyber attacks by going back to pen and paper, according to latest official advice. The government has written to chief executives across the country strongly recommending that they should have physical copies of their plans at the ready as a precaution. The advice comes as the National Cyber Security Centre (NCSC) reported a 50% increase in nationally significant cyber attacks this year, including hacks on Marks and Spencer, The Co-op and Jaguar Land Rover. Organisations need to "have a plan for how they would continue to operate without their IT, (and rebuild that IT at pace), were an attack to get through," said Richard Horne, chief executive of the NCSC.

 

BBC News

Around only 15% of euro zone workers fear their jobs are at stake because of US tariffs, but that could still have a meaningful impact on the economy, European Central Bank researchers have written in a blog post using data from the bank's most recent Consumer Expectations Survey. "Workers who expect to lose their jobs are more likely to actually lose them later," the blog argued. "Hence, while the direct impact of US tariffs on jobs appears to be limited, their impact on some workers can be stronger and might add further drag to firm and consumer confidence."

 

European Central Bank

Reuters

Ten major banks, including Bank of America and Deutsche Bank, are collaboratively exploring the issuance of a stablecoin linked to G7 currencies in response to the growing demand for digital assets. The initiative aims to "enhance competition across the market" while ensuring compliance with regulatory standards and best practices. As traditional finance adapts to the rise of cryptocurrencies, concerns remain about the regulatory implications and potential risks associated with stablecoins.

 

Reuters

Sanctions, rising costs and weak prices have plunged Russia’s coal mining industry into its worst crisis in more than 30 years. The sector risks lasting damage from the invasion of Ukraine.

 

Financial Times

UK finance minister Rachel Reeves has been warned that tax increases in the upcoming Budget could hurt businesses and drive some companies toward collapse. Shevaun Haviland, director general of the British Chambers of Commerce (BCC), cautioned that £30bn in tax rises could jeopardise jobs, investment, and growth, warning: "More taxes would risk sinking businesses that are struggling to survive." Haviland added: "With investment low and recruitment challenging, the message is clear: no further tax rises on business." A BCC survey shows that 25% of companies have reduced investment plans since a National Insurance hike for employers came into force in April, while a third have made, or are considering, redundancies.

 

The Daily Telegraph

Lloyds Banking Group is setting aside an additional £800m for compensation claims linked to the UK car loan mis-selling scandal. This takes the total amount allocated by the bank for redress to nearly £2bn. Lloyds said it is setting aside an additional £800m based on "the increased likelihood of a higher number of historical cases . . . being eligible for redress." The bank said its "best estimate" of the total cost of redress was £1.95bn. The Financial Conduct Authority (FCA) recently published details of its proposed compensation scheme, saying that lenders could be set to pay out a total of £8.2bn in compensation. The FCA forecasts that banks will account for 51% of the payouts, with captive lenders - the financial arms of the carmakers that issue loans to buyers - accounting for 47% and independent lenders liable for about 2%.

 

Sky News

BBC News

The Daily Telegraph

The Guardian

A lawsuit against five leading carmakers accused of cheating on emissions tests has opened at the High Court in London. The trial is the latest chapter in the so-called "dieselgate" scandal. The companies - Mercedes, Ford, Peugeot/Citroën, Renault and Nissan - face claims they used illegal software to allow their cars to reduce emissions of harmful gases under test conditions. Thomas De La Mare KC, for the car owners, said that "each player in the industry basically took a conscious decision that customer convenience, which helped the industry sell more cars, was more important" than preventing pollution. The five carmakers all deny the accusations.

 

BBC News

Daily Mail

The Guardian

The Independent

EY has been accused of misleading the UK's Financial Reporting Council over its audit of NMC Health, as a £2bn trial into alleged negligence by the firm reaches its closing stages.

 

Financial Times

Ofcom has fined online message board 4chan £20,000 under the Online Safety Act for failing to provide information about illegal content on its platform. The UK regulator will also impose a daily penalty of £100 for 60 days or until compliance is achieved. Technology Secretary Liz Kendall said that the government supports Ofcom's actions, highlighting the need to address illegal content. However, 4chan has refused to pay the fine. Preston Byrne, managing partner at Byrne & Storm, said: "That Americans don't obey British censors is a matter of settled US law."

 

The Daily Telegraph

The Dutch government has taken control of the chipmaker Nexperia due to concerns over potential technology transfers to its Chinese parent company, Wingtech. This "exceptional" action arises following signals of serious administrative issues and aims to protect crucial technology in Europe. As a result, Wingtech's shares fell by 10%, and the company said it would seek legal counsel to safeguard its interests amid the Dutch intervention.

 

Reuters

A number of Vodafone customers across the UK reported issues with services on Monday. DownDetector, which monitors web outages, said more than 130,000 people flagged problems affecting their Vodafone broadband or mobile network.

 

BBC News

The UK government has appointed Matthew Taylor as the first chair of the Fair Work Agency, which is set to launch next year. The new agency will enforce the Employment Rights Bill, which aims to enhance workers' rights, including parental leave and protections against unfair dismissal. Business Secretary Peter Kyle said that the current enforcement system fails both businesses and workers. The agency will consolidate the roles of three existing bodies and will have the authority to investigate employers violating wage laws. Paul Nowak, general secretary of trade union the TUC, said: “The Fair Work Agency is a vital opportunity to turn the page on the era of inadequate enforcement. For too long, bad bosses have got away with flagrantly breaking the law. This isn't right – it fails workers and the many decent employers who play by the rules.”

 

Daily Mail

Workers at Paris’s BHV department store have protested against management and its new partnership with fast-fashion giant Shein, which will open a permanent in-store space. Unions said customers disapprove and fear the deal will harm BHV’s reputation and sales, which are already hit by late payments and product shortages. BHV owner Société des Grands Magasins defended the move, saying it would modernise the store and attract younger shoppers.

 

Reuters