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Reckitt Benckiser has agreed to sell its Russian hygiene business to local consumer goods manufacturer Arnest Management, marking a further step in its planned exit from Russia. The transaction includes a production facility in Moscow, locally owned brand intellectual property and the transfer of around 400 employees, while Reckitt will retain its global brand intellectual property and its Russian health business. The company expects to record a post-tax loss of around £175m on the disposal, including approximately £125m in its first-half results due on July 29th. Reckitt said the sale is not expected to have a material impact on adjusted operating profit or adjusted earnings per share.

 

Financial Times

Reuters

A warehouse operated by Russian online retailer Wildberries in the Leningrad region near St Petersburg caught fire following what Russian authorities said was a Ukrainian drone attack, leaving three people injured and forcing the company to suspend operations at two logistics sites in the region. Wildberries also evacuated staff from a warehouse in Crimea, although it said none of its employees were injured in the latest incident. The attack is the latest in a series targeting the retailer's logistics network, with five Wildberries warehouses, representing around 10% of its logistics capacity, having been attacked since July 18th. Ukraine has alleged the company supports Russia's military infrastructure, a claim Wildberries denies. Together with rival Ozon, Wildberries accounts for goods and services worth the equivalent of 8.5% of Russia's GDP and employs around 4m people.

 

Financial Times

Reuters

Swiss chocolatier Lindt has been sued in a US federal court over allegations that it misled consumers by claiming it was committed to eliminating child labour from its cocoa supply chain while knowingly sourcing cocoa produced using child labour in Ghana and Ivory Coast. The lawsuit, filed by International Rights Advocates, alleges the company has been aware of the issue for more than 20 years and seeks to stop the alleged misleading practices, but does not seek damages. Lindt has denied the allegations, saying it strongly condemns child labour, has supplier protocols in place, and systematically investigates suspected cases in its supply chain. The company also pointed to its 2030 Sustainability Plan and Modern Slavery Statement, which outline measures to support cocoa farmers and reduce child labour risks.

 

Bloomberg

Reuters

Former Barclays CEO Jes Staley has been grilled by members of Congress over his ties to convicted sex offender Jeffrey Epstein. House Oversight Committee Chair James Comer said that Staley, who before he became the boss of Barclays ran JPMorgan’s private wealth and asset management divisions, encouraged the US lender to retain Epstein as a client despite internal red flags. “It appears that within JPMorgan there were flags - red flags - about Epstein, but Mr. Staley is on record defending Epstein and encouraging JPMorgan to keep him as a client,” Comer, R-Ky., told CNBC. “So we have a lot of questions about that.” Meanwhile, the Guardian reports that Democratic Senator Elizabeth Warren is calling for urgent answers from Barclays over what she claimed was its “apparent failure to meaningfully investigate” ties between Staley and Epstein.

 

CNBC

Financial Times

The Guardian

Switzerland's Federal Supreme Court has ordered a new ruling in the case of three men accused of breaching banking secrecy laws linked to the cum-ex tax fraud scandal. Initially convicted in 2019, their verdict was overturned in 2021. The Zurich High Court had previously dropped the case, citing lengthy delays and finding the investigating prosecutor had been biased. However, the Supreme Court ruled that these issues did not justify halting proceedings, saying: "The case is remanded to the lower court for a new decision."

 

U.S. News

Paramount Skydance has received approval from the European Commission for its $111bn acquisition of Warner Bros. Discovery. The Commission's consent allows the merger to proceed in the EU, with one condition: Paramount must terminate its partnership with Universal Pictures for film distribution in Europe. “The Commission found that, at film production level, enough film studios remain as competitors,” the Commission said in a statement. “These include other major U.S. studios like Disney, NBC Universal . . . and Sony, along with smaller US studios such as Amazon MGM, A24 and Lionsgate, as well as European studios.” Paramount will not be required to divest Cartoon Network, a Warner asset, because of its ownership of Nickelodeon. “The Commission found that streaming platforms offering children's content will continue to act as a competitive constraint on the merged entity's TV channels,” the agency said.

 

Los Angeles Times

Ryanair CEO Michael O’Leary has been rebuked by the National Transportation Safety Board (NTSB) for making public comments about a recent flight during which a dislodged window threatened to suck out a passenger. The US safety agency said his comments on a public earnings call violated international rules governing aircraft investigations because they provided opinion and analysis of the yet undetermined cause of the accident. O’Leary had intimated that the incident was caused by “foreign object damage,” rather than the aircraft’s age or maintenance issues, according to the NTSB.

 

Bloomberg

Irish Times

Wise's application for a US banking licence has been rejected after the Office of the Comptroller of the Currency (OCC) identified "deficiencies" in the fintech firm's anti-money-laundering checks. The OCC cited issues with Wise's compliance systems and the inexperience of its proposed US management team. Wise said it plans to submit a new application, having made significant investments in enhancing its compliance systems, customer checks and financial crime controls since the initial application, which was submitted over a year ago.

 

City AM

Daily Mail

Eurozone businesses are finding it difficult to raise consumer prices despite higher fuel costs following the Iran conflict, as households remain highly price-sensitive and competition from low-cost Chinese imports intensifies, according to a European Central Bank (ECB) survey. Around 40% of companies said their profit margins were being squeezed because higher input costs could not be fully passed on to customers. The ECB found that while prices had risen for sectors directly exposed to higher energy costs, including transport and petrochemicals, consumer-facing businesses had made little adjustment, with some electronics prices even falling due to cheaper Asian imports. The survey also highlighted that higher fuel costs are encouraging consumers to switch from branded goods to private-label products, while companies said investment in artificial intelligence remains strong despite broader concerns over European competitiveness.

 

Reuters

The UK economy is projected to experience a "sustained period of weak growth," according to the EY Item Club. GDP growth is expected to slow to 0.9% this year and further to 0.7% next year, influenced by rising oil prices amid Middle East tensions. The fiscal headroom for Chancellor John Healey may have diminished significantly, potentially forcing tax increases or spending cuts in the upcoming budget. Inflation is expected to peak at 3.5%, with unemployment rising to 5.5%, the forecaster said.

 

The Times

BMW is pulling out of this year’s Paris car show “due to a shift in priorities” as new Chief Executive Officer Milan Nedeljkovic cuts costs following a major profit warning. The German automaker said it “remains committed to a selective presence at automotive shows in the future.” Bloomberg notes that BMW’s withdrawal is notable because the company has often used the show for model unveilings.

 

Bloomberg

Dassault Systèmes is to buy drug trial software maker ArisGlobal for as much as $2bn as the French company expands its push into life sciences. Dassault's life sciences unit has been a drag on overall performance, but Chief Executive Officer Pascal Daloz said earlier this year that the firm remains committed to the sector at a time when it is being redefined by AI.

 

Bloomberg

Former BP chairman Albert Manifold was reportedly preparing a major governance overhaul that would have removed senior independent director Dame Amanda Blanc and reduced the board from 10 to eight members before he was ousted in May. Manifold wanted to introduce six-year limits for non-executive directors, arguing BP’s board was still too large and costly after already cutting it from 13 members. Ian Tyler, interim chair of BP, said: "Any suggestion that there was an external review of the board's size, structure or composition being conducted on behalf of BP, or that recommendations on such matters were due to be discussed by the board at the time of Albert Manifold's departure, is false."

 

The Sunday Telegraph

The American Heart Association (AHA) has said that drinking up to five 8-oz cups of coffee a day, or around 400mgs of caffeine, is safe for most adults and may reduce the risk of heart disease, heart failure, stroke, and Type 2 diabetes. The scientific statement, published in Circulation, reviewed dozens of studies and concluded that evidence supporting coffee’s safety and potential cardiovascular benefits has strengthened over time. The AHA said the greatest benefits appear to come from consuming two to four cups of coffee daily, while noting that individual responses to caffeine vary. Researchers also cautioned that adding large amounts of sugar, syrups, or high-fat creamers can offset potential health benefits, and advised consumers to avoid high-caffeine energy drinks, which have been linked to irregular heart rhythms and high blood pressure. 

 

ABC News

USA Today

Wall Street Journal