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EU officials are to limit the scope of the bloc’s contested supply chain law and remove a clause requiring businesses to make climate transition plans after months of pressure from companies and governments including the United States. Under the changes, the EU will limit its corporate sustainability due diligence directive (CSDDD) to only the largest EU corporations - those with more than 5,000 employees and €1.5bn annual turnover. A spokesperson for US oil and gas major ExxonMobil said the changes "didn’t go nearly far enough," observing that the EU's due diligence law would still apply to foreign companies.

 

Financial Times

Reuters

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The EU has launched an investigation into Google concerning its artificial intelligence summaries which appear above search results. The European Commission said it would examine whether the firm used data from websites to provide this service, and whether it failed to offer "appropriate compensation" to publishers. A Google spokesperson said the investigation "risks stifling innovation in a market that is more competitive than ever," adding "Europeans deserve to benefit from the latest technologies and we will continue to work closely with the news and creative industries as they transition to the AI era."

 

BBC News

Financial Times

EU regulators raided Temu's European headquarters in Dublin last week, investigating potential Chinese state subsidies. The raid is part of broader concerns regarding cheap imports from China, particularly low-value ecommerce shipments benefiting from a customs waiver for parcels under €150. Retailers argue this gives platforms like Temu and Shein an unfair advantage. The EU plans to eliminate this duty exemption by the end of 2027.

 

Financial Times

The Times

When new BMW chief executive Milan Nedeljkovic was the German carmaker's production chief in 2021, he opted for Nvidia's technology to virtually plan new factories, at a time when artificial intelligence was not a prominent industry focus. His decision, seen as a bold move in the face of established factory software from Siemens, has proven successful as BMW begins production of its new electric vehicle range, Neue Klasse. Nedeljkovic's use of Nvidia's realistic simulations effectively prepared BMW's plants for this next phase of manufacturing, Bloomberg reports.

 

Bloomberg

The European Union has struck a tentative deal to reduce greenhouse gases by 90% through 2040 compared with 1990 levels. The deal allows international carbon credits to account for a greater share of emissions reductions. It will now need to be approved by member states and the European Parliament to become law. “Today, Europe has united around our clear direction for climate policy - based in science and protecting our security and competitiveness,” said Danish Climate Minister Lars Aagaard. “The target delivers on the need for climate action while safeguarding our competitiveness and security.”

 

Bloomberg

Reuters

European companies are accelerating their efforts to diversify supply chains away from China, driven by increasing trade uncertainty and Beijing's strict export controls. According to a report from the European Union Chamber of Commerce, over 70% of firms have reassessed their supply chain strategies, with some onshoring within China while others are seeking alternatives abroad. The ongoing depreciation of the yuan and persistent deflation in China have intensified these concerns for European businesses, with 22% still reliant on critical imports from the country.

 

Reuters

A report indicates that German corporate bankruptcies are expected to rise to approximately 23,900 in 2025, marking an 8.3% increase from the previous year and the highest level since 2014. This surge is attributed to ongoing economic challenges, including rising costs and regulatory burdens, particularly affecting small and medium-sized enterprises. Additionally, personal insolvencies are projected to increase by 6.5%, driven by high living costs and widespread over-indebtedness among citizens.

 

Reuters

HSBC is negotiating a settlement of around $300m with French authorities regarding its involvement in one of Europe's largest tax frauds. The so-called "cum-cum" scandal, which has reportedly cost France €4.5bn in tax revenues, has implicated several banks. Crédit Agricole recently settled a similar investigation for €88.2m.

 

The Times

Thousands gathered in Vilnius, Lithuania's capital, on Tuesday to protest legislation that will increase political pressure on public media and align the nation with eastern European countries including Hungary and Slovakia that have tightened controls on free speech. “This is in no way compatible with the principles of free and independent media and a democratic state,” read a petition signed by more than 130,000 people.

 

Bloomberg

Germany's chancellor Friedrich Merz has said foreign companies must obey German and EU rules when they operate there. "Just as European and German companies have to follow the rules in America, sometimes facing very draconian punishments, so American companies must accept our rules here, and if they don't, then there are possibilities for sanctioning them," Merz said following U.S. President Donald Trump's criticism of an EU penalty imposed on social media platform X.

 

Reuters

Slovakia's parliament has approved a controversial plan to dismantle the independent Whistleblower Protection Office, which safeguards those reporting corruption. A coalition of 78 lawmakers, led by Prime Minister Robert Fico, voted in favour despite widespread criticism from opposition parties, the Slovak prosecutor-general, and various NGOs. “The level of protection, as well as people's trust in the whistleblower protection system, which we have been working hard to build at the office over the past years, will be significantly weakened by this law,” the Whistleblower Protection Office said in a statement. Michal Šimečka, leader of the opposition Progressive Slovakia party, called it "an attack against the rule of law." The changes were pushed through with limited debate.

 

U.S. News

Directors and officers (D&O) are facing increased liability risks due to global political, economic, and social uncertainties, according to a report by Allianz Commercial. The report highlights that D&Os can be held accountable for misjudging geopolitical impacts or failing to adapt to changing regulations. Cyber risks are a significant concern, with ransomware incidents leading to claims against directors. Jarrod Schlesinger, global head of financial lines and cyber at Allianz, noted that claims frequency is nearing pre-pandemic levels. The report also warns of rising insolvencies and their potential to trigger D&O claims.

 

Insurance Business Magazine America

Starbucks workers and union supporters in 10 countries, including the UK, Germany, and Australia, staged coordinated protests yesterday in solidarity with 3,000 striking US baristas. The US workers, represented by Starbucks Workers United, are calling for better pay, staffing, and resolution of hundreds of labour disputes. While Starbucks says the strike has had minimal business impact, international demonstrations aim to escalate pressure amid stalled contract talks and ongoing labour tensions.

 

BBC News

McDonald’s Netherlands is facing a backlash over its 2025 Christmas advert, created entirely using artificial intelligence, which viewers have criticised as unsettling, poorly made, and cynical. The ad, featuring glitchy, AI-generated mishaps before Christmas, sparked outrage online, with critics calling it “soulless” and “demonic.” The production team defended the creative process, insisting the AI project involved extensive human oversight and effort.

 

Forbes

The Independent UK