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Britain's largest life insurers, including Aviva and Legal & General, have successfully passed a stress test conducted by the Bank of England (BoE). The test simulated a market crash that could have wiped out nearly £9bn of capital. The insurers maintained 154% of the required capital, down from 185% prior to the scenario. The BoE's assessment comes amid concerns over risks in the $3trn "shadow banking" sector, in which private equity firms rather than banks lend to companies. The stress test is limited to the capital held within a given insurance firm, rather than any wider financial services company that the insurer may sit within, and the Bank noted that there might be extra capital available from the wider group.

 

The Daily Telegraph

CIOs Face Rising Pressure on AI

A new white paper from ServiceNow highlights how AI adoption is racing ahead of enterprise readiness, leaving UK CIOs under growing pressure to show meaningful transformation. With boards expecting rapid progress and clear risk mitigation, many leaders are struggling to bridge the gap between experimentation and enterprise-scale impact. The report outlines how AI agents can help CIOs respond to C-suite demands, streamline decision-making, and deliver measurable value without exposing the business to unnecessary risk. It offers a practical look at what the board wants, where organisations are falling behind, and how CIOs can regain control of their AI agenda.
Download the guide

 

A study by cybersecurity firm Kaspersky reveals a significant rise in résumés posted on underground forums, doubling in early 2024 compared to the previous year. The trend reflects a growing shadow job market that is absorbing unemployed and overqualified individuals amid AI-fuelled layoffs. Alexandra Fedosimova, a digital footprint analyst at Kaspersky, observed: "The shadow job market is no longer peripheral; it's absorbing the unemployed." The report highlights that résumés now outnumber vacancies by 55% to 45%, with many applicants willing to take any job, including illegal roles. Kaspersky urges monitoring of online activity to guide youth towards legitimate tech careers.

 

Khaleej Times Online

The UK's Office for Budget Responsibility (OBR) is expected to downgrade its economic growth forecasts for each year to 2030/31 - the remainder of the parliament. While the OBR had previously forecast growth of 1.9% in 2026, economic forecasters have been less optimistic, with projections ranging between 0.9% and 1.4%, according to a survey of City analyst notes compiled by the Treasury. The Bank of England, meanwhile, has projected GDP growth to hit 1.2% next year. Neil Shearing, group chief economist at Capital Economics, said there was "no coherent, fully-fleshed out strategy for lifting long-term growth," while Hetal Mehta, chief economist at St James's Place, warned that GDP growth "has been lacklustre." 

 

City AM

The Guardian

The Independent

Brexit is costing the UK up to £90bn annually in lost tax revenues, according to new analysis from the House of Commons Library. The average Briton is now £2,700 to £3,700 worse off. Lib Dem leader Ed Davey, whose party commissioned the analysis, has urged ministers to negotiate a new customs union with the EU, to "fix our broken relationship with Europe." Sir Nick Harvey, chief executive of European Movement UK, said the analysis "shows just how much economic harm leaving the EU has wreaked on us both nationally and individually. Billions lost in tax every year, and all of us several thousand pounds poorer."

 

The Independent

Michael Claesson, Sweden’s chief of defence staff, tells the Financial Times that Russia is “exploiting vulnerabilities in the information environment” in order to “break up cohesion in our societies.”

 

Financial Times

At the G20 summit, Chinese Premier Li Qiang called for deeper economic cooperation with Germany, urging both sides to “properly address their respective concerns.” The meeting marked a rapid thaw in relations strained by Chinese export curbs on rare earths and semiconductors. Despite geopolitical tensions, China remains a critical market for German goods, buying $95bn worth in 2024. Li emphasised collaboration in key sectors such as hydrogen, biomedicine, and smart manufacturing, while China urged Berlin to resist external “interference and pressure” in its China policy.

 

Reuters

The European Union plans to tighten its foreign investment rules to ensure that Chinese companies do not gain advantage from the bloc’s open market without generating benefits for local workers.

 

Financial Times

Business Secretary Peter Kyle has hinted he may concede to amendments on Labour's Employment Rights Bill to make it less damaging to business during a speech at the Confederation of British Industry's (CBI) annual conference. He said concerns about the Bill, which provides day one protections, bans zero-hour contracts and alters statutory sick leave, were exaggerated, observing: "In the world we're living in now, the workplace is fundamentally different than it was 10 and 20 years ago. The law has to keep up, regulation has to keep up." Kyle added: "I'll do what it takes to get it through because I need to get on with the real business." He also said that he would hold a series of 26 consultations with companies after the Bill becomes law. 

 

City AM

The Times

Daily Mail

The Guardian

PwC global chairman Mohamed Kande says the growth of artificial intelligence may eventually lead to fewer entry-level graduates being hired, although he said AI was not behind recent job cuts at the firm. In 2021, PwC said it wanted to hire 100,000 people over the course of five years, but Kande said this would no longer be possible. "When we made the plans to hire that many people, the world looked very, very different," he said. "Now we have artificial intelligence. We want to hire, but I don't know if it's going to be the same level of people that we hire - it will be a different set of people." Kande noted that PwC actually needed to hire hundreds of new AI engineers but was struggling to find them.

 

BBC News

The Guardian

Major insurers including AIG and Great American are seeking to exclude artificial intelligence risks from corporate policies, as companies face multibillion-dollar claims that could emerge from the fast-developing technology.

 

Financial Times

Christophe Périllat, the CEO of French car parts maker Valeo, warns that most job losses at the company will be in Europe unless Brussels protects the sector from Chinese competition.

 

Financial Times

French retailer Casino has announced a second debt restructuring plan within two years, aiming to cut its €1.4bn loan maturing in 2027 to €800m and reduce the interest rate from 9% to 6%. Majority shareholder France Retail Holdings has proposed a €300m capital increase, which would raise its stake to around 68% if no others participate. Casino has also extended its turnaround plan to 2030, targeting €15.8bn in GMV with €1.7bn in capital investment and over €150m in savings in the final two years.

 

Bloomberg

Reuters

The International Committee of the Red Cross (ICRC) has announced a 17% budget cut for 2026 that will result in nearly 3,000 job losses, as dwindling donor funding forces the organisation to make drastic changes. ICRC President Mirjana Spoljaric said: "The financial reality is forcing us to make difficult decisions to ensure we can continue to deliver critical humanitarian assistance." The cuts come amid escalating global conflicts and a significant international aid funding crisis. In light of its shrinking budget, ICRC said it would need to prioritise safeguarding its presence in the most critical conflict zones, including Sudan Israel and the occupied Palestinian territories, Ukraine and the Democratic Republic of Congo.

 

France 24

The Bank of England has warned that micro-aggressions in the workplace can lead to serious health issues for ethnic minorities, including heart disease and diabetes. A presentation obtained by The Telegraph highlights research linking racism and discrimination to chronic illnesses. The training materials encourage employees to report micro-aggressions, such as inappropriate comments about race. A Bank spokesman said: "This optional training . . . is one of several ways we look to support our staff." The initiative aims to foster an inclusive work environment and address reported disparities in treatment.

 

The Sunday Telegraph

A new report from the Center for Global Development (CGD) finds that wealthier countries, including the US and Japan, are scaling back global development efforts, slashing aid and multilateral funding. The US dropped to 28th in the Commitment to Development Index, with further declines expected due to policy shifts under President Trump, who has also shuttered the United States Agency for International Development (USAID).  Although some progress was noted in emissions cuts and migration support, CGD’s Ian Mitchell warned: “The changes the Trump administration is making are very significant.”  Sweden, Germany, and Norway lead the rankings.

 

Reuters