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French pharmaceutical giant Sanofi's Paris headquarters have been raided by authorities as part of a tax fraud investigation into a financing deal provided by Société Generale. The probe focuses on a deal from over a decade ago, amid suspicions of aggravated money laundering and tax fraud. Sanofi said in a statement that it “considers it has complied with all applicable laws and regulations in this matter.” Societe Generale's offices in Paris and Luxembourg were searched by the Parquet National Financier earlier this year as part of a tax fraud case focused on services the lender offered to large companies.

 

Luxembourg Times

UK supermarket chain Asda said its turnaround plan was running six months behind schedule after sales were hit by another spell of severe disruption stemming from a £1bn-plus IT overhaul.

 

Financial Times

Bank of International Settlements General Manager Pablo Hernández de Cos has urged tighter controls on hedge fund leverage in government bond markets, citing rising debt and growing risks from non-bank financial institutions. Speaking at the London School of Economics, he warned that strategies like cash-futures basis trades and zero-haircut repos expose markets to instability. De Cos proposed wider use of central clearing and mandatory minimum haircuts on collateral to limit risk. “The growing intermediation of record-high public debt levels by NBFIs introduces significant new financial stability challenges,” he said, saying leverage control is a key policy priority.

 

Reuters

The bird flu virus that has been spreading among wild birds, poultry and mammals could lead to a pandemic worse than Covid-19 if it mutates to transmit between humans, the head of France's Institut Pasteur respiratory infections centre has said. "What we fear is the virus adapting to mammals, and particularly to humans, becoming capable of human-to-human transmission, and that virus would be a pandemic virus," Marie-Anne Rameix-Welti told Reuters.

 

Reuters

Richard Hughes, the chairman of the UK's Office for Budget Responsibility (OBR), could be dismissed following last week's leak of Budget details. The leak occurred just before finance minister Rachel Reeves's budget announcement. Questioned on Hughes' future on Sunday, Reeves refused to confirm that his position was safe. Concerns have also arisen regarding the OBR's influence on government spending forecasts. Hughes said he would resign if he lost the confidence of Reeves or the Commons Treasury Committee.

 

Daily Mail

The Times

Getty Images' CEO, Craig Peters, says the firm could reduce UK investments if a merger with Shutterstock is blocked by the Competition and Markets Authority over concerns it could reduce competition. Suggesting that there were "parts of these businesses that probably don't continue to invest in the UK" if the deal is blocked, Peters said: "We fundamentally believe that this merger is not anticompetitive. We believe it is pro growth and ultimately good for the market."

 

Financial Times

Financial Times

The Times

France’s antitrust authority has dismissed Qwant’s complaint accusing Microsoft of abusing market dominance. Qwant alleged Microsoft imposed exclusivity restrictions and favored itself in search advertising. However, the Autorité de la Concurrence ruled Qwant failed to provide convincing evidence and denied interim measures. Microsoft welcomed the decision, saying it remains committed to “fostering innovation” in Europe. Qwant, which relies on Microsoft’s Bing for results, had anticipated the rejection and plans to escalate the case through courts or other regulatory bodies.

 

Reuters

Apple has informed the European Commission that its Apple Ads and Apple Maps services meet the Digital Markets Act (DMA) thresholds. The Commission now has 45 working days to determine if these services should be designated as gatekeepers. If designated, Apple will have six months to comply with the DMA’s regulatory requirements, which aim to ensure fair competition and limit the dominance of major tech platforms in the digital market.

 

Reuters

Swiss voters have overwhelmingly rejected a proposal to impose a 50% levy on inherited fortunes exceeding 50 million Swiss francs. The initiative, which was backed by the youth wing of the Social Democrats, sought to fund climate change projects.  "The super rich inherit billions, we inherit crises," they argued. Critics had warned the tax could drive wealthy individuals out of Switzerland, diminishing tax revenues. 

 

Euronews.com

Financial Times

Politico

Reuters

The European Union's top court has dismissed an appeal from Michael Heßler, a European Commission official, who sought a tax break for his daughter despite her being over 26. He argued that she was still a student when he filed for the rebate, which he wanted retroactively from 2021. However, the court ruled that Commission staff can only receive the child tax break if they qualify for the child allowance, which ceases once the child turns 26 or is no longer in full-time education. The ruling comes as the Commission reviews its 32,000 staff's working conditions, amid calls for shorter hours and improved work-life balance.

 

EurActiv.com

The Government has confirmed the continuation of its Digital Services Tax (DST) despite pressure from the US. The DST, a 2% tax on the revenues of multinational tech companies which has generated £800m from US tech firms, is expected to double by 2030. A Treasury review of the levy, published alongside the Budget, acknowledges that the tax may have raised consumer prices.

 

City AM

German chemical group Wacker Chemie is to eliminate 1,500 jobs, or nearly 10% of its workforce, as part of a cost-cutting strategy. The job losses, primarily in Germany, aim to save over €300m annually and will be completed by the end of 2027. "Particularly in Germany, the excessively high energy prices and bureaucratic obstacles continue to act as a major brake on the successful development of the chemical industry," said CEO Christian Hartel. Wacker reported a net loss of over €80m in Q3, driven by weak demand and increased competition, particularly from China.

 

The Local Germany

M&G, a major shareholder in HICL Infrastructure, has joined other investors in opposing a £5.3bn merger with The Renewables Infrastructure Group (TRIG). M&G, which holds a 3.4% stake, argues there is "no strategic nor financial rationale" for the merger, which it views as a transfer of value to TRIG shareholders. M&G said it would vote against the deal if management does not reconsider. The HICL board supports the merger, claiming it will enhance scale and visibility. Shareholder votes are scheduled for later this month, with HICL needing a 50% majority to proceed.

 

The Times

Deutsche Boerse has entered exclusive talks to acquire Allfunds Group in a €5.29bn ($6bn) cash-and-stock deal that values the fund distribution platform at about €8.80 per share - a 33% premium to its prior close. The proposal includes roughly equal parts cash and new Deutsche Boerse shares, plus a €0.20 dividend. Allfunds’ board unanimously agreed to negotiate, though the deal isn’t guaranteed and terms may change. 

 

Bloomberg

Wall Street Journal

The House of Lords Select Committee on the Constitution has warned of increasing distrust in the UK's legal system that has placed the rule of law under threat. “Everyone, but particularly those in public life, needs to be proactive in strengthening our rule of law culture, and this must start now. Failing to do so risks the rise of extremist political parties, growing antipathy towards democracy, and, ultimately, creating space for a dictatorship of arbitrary rule,” the report said. The report, which was the result of a nine-month long inquiry, also observed that alternative dispute resolution mechanisms, including mediation or arbitration, may be appropriate to widen access to justice.

 

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