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The carbon border adjustment mechanism (CBAM), the EU’s landmark carbon border tax which covers six sectors including steel, cement, aluminium and electricity, came into force on January 1. The rules aim to create a level playing field by making sure that competitors from countries with poor environmental standards cannot undercut EU businesses, while also encouraging decarbonisation. Stéphane Séjourné, the European Commission’s executive vice-president for prosperity and industrial strategy, said European companies should welcome the CBAM. “European industrial producers should be encouraged – and not deterred – in their decarbonisation efforts,” he said. “This CBAM reform brings crucial and long-awaited measures to ensure a level playing field between EU and non-EU industrial producers. By strengthening CBAM, we support our industry’s decarbonisation and secure European players’ competitiveness on the world stage.”

 

Financial Times

The Guardian

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Miguel De Bruycker, director of the Centre for Cybersecurity Belgium (CCB), says it is “currently impossible” to store data fully in Europe because US companies dominate digital infrastructure.

 

Financial Times

Business confidence in the UK has fallen, according to the British Chambers of Commerce (BCC), with only 46% of companies expecting increased sales this year and 24% saying they expect to see a decline in turnover. The survey saw 63% of firms polled cite tax rises as their primary concern, while 72% reported rising labour costs as a significant pressure. David Bharier, head of research at the BCC, said the analysis "shows more clouds have gathered over business confidence." He highlighted that confidence in turnover growth "has been stuck stubbornly below 50% for the last 12 months, adding: "A budget fundamentally light on growth measures did little to boost business confidence and sentiment overall has worsened since the previous quarter." The BCC polled 4,600 businesses, 91% of which were SMEs.

 

The Times

Mercedes-Benz Financial Services UK has reported a £364.6m loss for 2024, primarily due to a scandal involving mis-sold car loans. The company anticipates a £424m hit. The Financial Conduct Authority (FCA) estimates the total industry cost could reach £11bn, with compensation averaging £700 per affected car loan. The finance sector is lobbying against the FCA's redress proposals, which could lead to legal challenges. Mercedes-Benz has set aside €422m (£368m) for the scandal, with total provisions now at £423.8m.

 

The Times

Large UK companies were taken private at lower premiums in 2025, averaging 30% compared to 38% in 2024, according to Dealogic. Will Cain, Mergermarket's head of analytics for Europe, noted that buyers struggle to find attractively priced targets amid high stock market valuations. Conversely, small cap companies saw higher premiums of 31%. Notable exceptions included Spectris and Alphawave, which received premiums of 105% and 96%, respectively. The decline in high-value deals raises concerns about London's status as a global financial centre, especially as new listings remain scarce.

 

The Times

UniCredit has signed a deal with banking union FABI and other trade unions including First, Fisac, Uilca and Unisin to manage employee turnover through voluntary exits and new hires. All 484 employees currently suspended under early retirement schemes until 2031 will be able to access the sector's redundancy fund on a voluntary and incentivised basis. Italy's second-biggest bank is also to recruit 436 people under 30 on professional apprenticeships leading to permanent contracts, and hire an extra 4% of staff annually between 2026 and 2028 under the Abi Protocol aimed at supporting female victims of violence. FABI coordinator at Unicredit, Stefano Cefaloni, said: "We express our satisfaction on the issue of attention to women victims of violence, a topic of absolute and dramatic topicality."

 

Il Sore 24 Ore

Reuters

Octopus Energy CEO Greg Jackson warns that over-cautious investors, excessive bureaucracy and "byzantine rules" hinder the growth of young firms in the UK. He advocates for regulatory reforms to favour start-ups over incumbents. Jackson, who joined the board of the Cabinet Office in July, says there is a need for a cultural shift to attract public listings, warning: "London's in this negative spiral, and it needs to get out of it." He has also expressed concerns about the increasing bureaucratic burden on small businesses, which he says detracts from innovation and growth. He says that while regulation focused on issues such as money laundering is "sensible," it is being implemented in "an overbearing way."

 

Sunday Times

The UK's Financial Conduct Authority has closed 100 investigations without taking enforcement action in less than three years, cutting the number of active probes to the lowest for almost a decade.

 

Financial Times

Orsted has launched a legal challenge against the Trump administration's suspension of a nearly completed wind project off Rhode Island. The Danish company, in partnership with Skyborn Renewables, argues that the government's order "violates applicable law" and seeks to have the suspension lifted pending a court decision.

 

Bloomberg

Ocado is seeking to reinvigorate growth as exclusivity agreements with most global partners come to an end, opening the door to a broader international rollout of its technology. The FTSE 250 group said exclusive deals have now expired in the majority of markets where its automated grocery systems operate, including the US partnership with Kroger. The shift allows Ocado to offer its AI-powered robotic warehouses and software to multiple retailers in the same market, rather than one partner alone. Chief executive Tim Steiner said the group is well placed to help supermarkets grow online sales as demand for e-grocery continues to expand globally. While some large sites have underperformed and partners such as Morrisons and Sobeys have scaled back ambitions, Ocado believes a non-exclusive model will widen its customer base, improve utilisation of its technology and strengthen its long-term prospects in a competitive market.

 

City AM

The Times

The Association of Chartered Certified Accountants will require candidates to sit exams in person from March to thwart a rise in students cheating when sitting tests remotely. "We’re seeing the sophistication of [cheating] systems outpacing what can be put in, [in] terms of safeguards," Helen Brand, the chief executive of the ACCA, told the Financial Times. The UK's Financial Reporting Council (FRC) warned in 2022 that cheating in professional exams was rife, with an investigation by the accounting regulator finding instances of cheating at Big Four firms – KPMG, PwC, Deloitte and EY – along with Mazars, Grant Thornton and BDO. The Institute of Chartered Accountants in England and Wales said in 2024 that reports of cheating were still increasing. The ICAEW and the Institute of Chartered Accountants of Scotland still permit some exams to be sat online, but Brand said: "There are very few high-stakes examinations now that are allowing [remote invigilation]."

 

Accountancy Age

Financial News

Financial Times

City AM

The Guardian

Saba Capital has intensified its campaign against Edinburgh Worldwide Investment Trust (EWIT), accusing chairman Jonathan Simpson-Dent of past governance issues linked to a mis-selling scandal. Saba, which holds 30% of EWIT, claims Simpson-Dent's appointment breached UK listings rules. In a letter to Saba's CEO Boaz Weinstein, Simpson-Dent demanded clarity on Saba's plans for EWIT, including potential changes to investment strategy and management.

 

The Times

From today, junk food adverts will be banned on UK television before 9pm and online at all times as part of the government's bid to tackle childhood obesity. The restrictions target high-fat, salt, and sugar (HFSS) products - including soft drinks, sweets, pizzas, and ice cream - while allowing promotion of healthier versions to encourage recipe reformulation. The ban, enforced by the Advertising Standards Authority, is intended to prevent around 20,000 cases of childhood obesity and comes amid rising concern over NHS costs and poor health outcomes linked to early exposure to unhealthy food marketing.

 

BBC News