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The EU Parliament’s Committee on Legal Affairs voted on Monday to move ahead with major cuts to a set of sustainability directives. Lawmakers opted to have the Corporate Sustainability Reporting Directive (CSRD) apply only to companies with at least 1,000 employees, while for the Corporate Sustainability Due Diligence Directive (CSDDD), the threshold will be 5,000. Both were originally intended to cover companies with at least 250 employees. Business groups had argued that the directives would hurt European competitiveness. CSDDD, designed to ensure companies are held accountable for human rights and environmental violations in their value chains, had emerged as a particularly contentious framework. The U.S. Chamber of Commerce had warned that the directives represent an "unprecedented regulatory overreach." Lawmakers will begin negotiations with the EU’s 27 member states on a final agreement next week, with the target of striking a deal by the end of the year.

 

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Patrick James, founder and chief executive of First Brands, has resigned following the company's bankruptcy filing amid an accounting scandal. The auto parts supplier is facing over $2bn in missing funds, leading to lender concerns. Charles Moore, the newly appointed chief restructuring officer, will take over temporarily. First Brands, which changed its name from Crowne Group, amassed significant debt through acquisitions of aftermarket auto parts brands. Jefferies Financial Group reported a $715m exposure to First Brands but downplayed the impact on its financial health. The next bankruptcy hearing is set for October 29th.

 

AP News

New York Times

Reuters

Financial Times

Doug Lebda, the 55-year-old founder and chief executive of LendingTree, passed away following an all-terrain vehicle accident at a family farm in North Carolina. The company expressed its grief, saying: “Doug was a visionary leader whose relentless drive, innovation and passion transformed the financial services landscape.” Following his death, Scott Peyree has been appointed as the new CEO, while Steve Ozonian will take over as chair of the board. Lebda founded LendingTree in 1996 to simplify the loan shopping process, and the platform has since become a key player in the online loaning marketplace.

 

The Oregonian

US News and World Report

Wall Street Journal

Economists surveyed by the Wall Street Journal have upgraded their forecasts for U.S. GDP growth, citing a surge in artificial intelligence investment and reduced tariff uncertainty, though job creation is expected to slow. GDP is now forecast to grow 1.7% year-on-year in Q4 2025, up from 1% in July’s poll. Job gains are seen dropping to 15,000 a month this quarter, down from 50,000 in July, while the unemployment rate is expected to hold around 4.5% amid tighter immigration. The probability of a recession in the next year remains at 33%. Respondents predict two further rate cuts from the Federal Reserve and warn that central bank independence could weaken if President Trump replaces chair Jerome Powell with a loyalist. Kevin Hassett is viewed as the most likely successor, although Fed governor Christopher Waller is considered the best-qualified candidate.

 

Wall Street Journal

Retail sales in the U.S. slowed in September compared to the previous two months, following a busy summer shopping period, according to the CNBC/National Retail Federation Retail Monitor. Despite the monthly dip, year-over-year (YoY) growth remains strong, signaling momentum heading into the holiday season. Total sales excluding autos and gas dropped 0.66% from August, but on an annual basis were 5.42% higher. The strongest yearly gains were seen in the digital products segment, which was up 21.35%, sporting goods and hobbies, up 8.81%, and clothing, which grew 7.35%. Grocery sales rose 4.79%, while electronics and appliances grew 4.43%. 

 

CPA Practice Advisor

Federal judges in Massachusetts, Rhode Island, New Hampshire and Maine have become key players in the legal battles over President Donald Trump's policies since he returned to office in January. Analysis by Reuters has found that at least 72 lawsuits challenging Trump's policies have been filed in federal courts in these four states by plaintiffs, including Democratic state attorneys general, advocacy groups and institutions targeted by the administration. Trial court judges have made at least an initial decision in 51 of those cases, ruling against Trump in 46 of them, according to the Reuters analysis.  The New England federal trial courts are thus increasingly seen as attractive litigation venues that offer the "best shot" for challengers to White House policies.

 

Reuters

A federal judge has dismissed a National Retail Federation lawsuit challenging a New York state law that requires retailers to tell customers when their personal data are used to set prices, known as surveillance pricing. U.S. District Judge Jed Rakoff in Manhattan said the organization failed to plausibly allege that New York's Algorithmic Pricing Disclosure Act violated its members' free speech rights under the Constitution's First Amendment. The law required retailers to disclose in capital letters when prices were set by algorithms using personal data, or face possible civil fines of $1,000 per violation.

 

Reuters

NASA's Jet Propulsion Laboratory (JPL) has announced that it will lay off approximately 550 employees as part of a restructuring initiative, which is unrelated to the ongoing U.S. government shutdown. Director Dave Gallagher said that the layoffs are "essential to securing JPL's future by creating a leaner infrastructure," and allow the organization to focus on its core technical capabilities. JPL, which is located near Pasadena, California, employs about 5,500 people and is renowned for its successful Mars rover missions.

 

Reuters

Retailers are delaying or reducing seasonal hiring due to rising tariff costs and economic uncertainty. The trend is affecting the recruitment of temporary workers for distribution centers and stores during the crucial holiday season. While Amazon said on Monday it intends to hire 250,000 full-, part-time and seasonal workers, the same level as a year ago, a report by Challenger, Gray & Christmas suggests that overall holiday hiring for the last three months of the year will likely fall under 500,000 positions, fewer than last year’s 543,000 and the smallest seasonal gain in 16 years. Meanwhile, a number of companies, including Target, Macy's, and UPS, are declining to announce their hiring plans.

 

CBS News

Fox News

Washington Post

Barry Melancon has been appointed chair of Baker Tilly International, a leading global accountancy network, effective immediately. Previously, he served as chief executive of AICPA and the Chartered Institute of Management Accountants (CIMA). Mr. Melancon succeeds Brian Kreischer, who completed his three-year term but will remain on the board until his retirement next year. He has a strong leadership background, having played a key role in the merger of AICPA and CIMA into the Association of International Certified Professional Accountants, the largest body of qualified accountants globally.

 

Bloomberg Tax

Accounting Today

CPA Practice Advisor

Activist investor Starboard Value has built a stake in Keurig Dr Pepper in the wake of its plan to acquire European coffee maker JDE Peet’s for €15.7bn ($18.1bn). The Keurig deal, announced in late August, proposed splitting the merged entity's coffee operations and other beverage businesses into two separate U.S.-listed companies, as the Dutch company would be delisted from the Amsterdam stock exchange. It also aimed to create $400m in annual cost savings, allowing the new entities to fare better against rising U.S. tariffs against coffee-producing nations and other trade rivals. The exact size of Starboard's stake in Keurig could not immediately be established. 

 

Financial Times

Reuters

On September 29th the IRS withdrew two proposed regulations, REG-112261-24 and REG-116085-23, which aimed to impose stricter rules on corporate spinoffs and reorganizations. The decision returns taxpayers to pre-2024 guidance, allowing them to plan these transactions without additional burdens. The proposed rules were intended to reduce reliance on private letter rulings and provide clarity, but public feedback indicated that their benefits did not justify the compliance costs. As a result, taxpayers can now operate with less uncertainty, although they should maintain detailed records to address potential IRS inquiries. Jean R. Broderick, a retired tax attorney, emphasizes that while the withdrawal is positive, it does not signal a complete abandonment of the IRS's efforts to enforce stricter regulations in the future, adding that taxpayers should remain vigilant and prepared for possible changes ahead.

 

Bloomberg Tax

Around only 15% of euro zone workers fear their jobs are at stake because of U.S. tariffs, but that could still have a meaningful impact on the economy, European Central Bank researchers have written in a blog post using data from the bank's most recent Consumer Expectations Survey. "Workers who expect to lose their jobs are more likely to actually lose them later," the blog argued. "Hence, while the direct impact of U.S. tariffs on jobs appears to be limited, their impact on some workers can be stronger and might add further drag to firm and consumer confidence."

 

European Central Bank

Reuters

Joel Mokyr, Philippe Aghion, and Peter Howitt have been awarded the Nobel Memorial Prize in Economic Sciences for their contributions to understanding how innovation drives economic growth and human welfare. Their research elucidates the concept of "creative destruction," where new innovations replace outdated technologies, a process crucial for sustained economic progress. Mokyr emphasized that “economic growth cannot be taken for granted,” highlighting the need to support the mechanisms that foster innovation. The prize, worth nearly $1.2m, recognizes the trio's complementary approaches to economics, with Mr. Mokyr focusing on historical trends and Mr. Aghion and Mr. Howitt employing mathematical models. The Nobel Committee noted the importance of innovation, especially in Europe, where there is a growing productivity gap with the U.S. and China.

 

Los Angeles Times

Reuters

Washington Post