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U.S. banking regulators told lawmakers they are closely monitoring the rapid growth of private credit and other nonbank financial institutions, warning that limited transparency makes it difficult to assess how bank funding is being used outside the traditional banking system. Testifying before the House Financial Services Committee on Thursday, Federal Reserve Vice Chair for Supervision Michelle Bowman said regulators recently launched new data collection efforts to better understand the flow of bank lending into private credit markets. While she stressed that private credit does not currently pose an immediate threat to financial stability, she described the sector as “very opaque” and said regulators need greater visibility into underwriting practices, collateral quality, and risk concentrations. Bank lending to nonbank financial institutions has grown rapidly since 2009, with private credit becoming an increasingly important source of financing as tighter post-financial-crisis banking regulations pushed some lending activity outside the traditional banking sector. Regulators noted concerns following several private credit-related bankruptcies and rising default rates among portfolio companies.

 

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A new agreement between FIFA and the U.S. Treasury is expected to allow national soccer associations participating in the 2026 FIFA World Cup to seek exemption from U.S. federal income tax on certain tournament-related earnings, reducing a key financial concern for teams competing in the United States. According to KPMG, the agreement represents a significant breakthrough for national federations, aligning the U.S. more closely with Canada and Mexico, which have also provided forms of tax relief for World Cup participants. The move should substantially reduce or eliminate federal tax exposure on core tournament income at the team level. However, the agreement does not extend to players, coaches, or support staff. Nonresident individuals generally remain subject to U.S. federal income tax on U.S.-source income unless relief is available through domestic law or applicable tax treaties. Income from sponsorships, endorsements, media appearances, and other commercial activities may also remain taxable. KPMG notes that state and local tax obligations continue to pose significant challenges, as many states can impose their own income taxes regardless of federal exemptions or treaty benefits.

 

Bloomberg Tax

New applications for U.S. unemployment benefits rose by 13,000 to 225,000 in the seven days to May 30th, the Labor Department reported on Thursday, the highest level since February and above economists’ expectations of 215,000. The four-week moving average of initial claims, which smooths weekly fluctuations, climbed 6,500 to 214,750, also the highest level since February. Continuing claims, reported with a one-week lag, fell 8,000 to a seasonally-adjusted 1.777m. "The big picture remains that the trend in both initial and continuing claims still is very subdued," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics. "It would be unwise, however, to conclude that all is fine and well with the labor market simply because claims are low. Low fire, low hire remains an apt description of labor market conditions, and only around one of four of those unemployed make a claim."

 

Bloomberg

Reuters

Wall Street Journal

U.S. worker productivity rose at a revised 0.3% annualized rate in the first quarter, down from an earlier estimate of 0.8% and marking the slowest pace since the first quarter of 2025. The Bureau of Labor Statistics found that productivity increased 2.8% from a year earlier and has grown at a 2.1% rate since the fourth quarter of 2019. Unit labor costs were also revised lower, rising 1.8% in the first quarter instead of the previously reported 2.3%, while fourth-quarter growth was cut sharply to 2.1% from 4.6%. Economists expect wider adoption of artificial intelligence to support productivity growth and help contain labor costs over time.

 

Reuters

Most general counsel at global companies say their organizations are not fully compliant across every jurisdiction where they operate, according to a new CSC survey of 350 senior legal professionals. The report found that only 7% of respondents believe their corporate entities are fully compliant worldwide, while 53% said compliance levels fall between 50% and 75%. CSC said rapid regulatory change, including rules covering AI, crypto, ownership transparency, and data privacy, is making it harder for legal teams to keep pace. Nearly half of general counsel cited ultimate beneficial ownership and similar rules as their biggest legal operations risk this year, while others pointed to managing multiple service providers, AI, GDPR, and broader regulatory change. In response, legal teams are prioritizing technology upgrades, automation, AI implementation, and team restructuring. Many respondents said AI could improve risk and compliance oversight, support scalable global processes, and speed up contract review, negotiation, and due diligence.

 

The Global Legal Post

Honeywell Aerospace said it aims to generate at least $6.5bn in annual earnings and at least $4bn in free cash flow by 2030. Chief executive Jim Currier said the stand-alone company sees a large installed base, strong demand in commercial aviation, and growth in defense and space markets. Honeywell is separating its aerospace business as part of a broader breakup that will leave the unit operating independently. Currier said aerospace has outgrown the broader conglomerate structure and can move faster on capital allocation and product investment as a pure-play company. The company plans to debut as a stand-alone business after Honeywell completes the separation process. The move follows a wider corporate restructuring aimed at simplifying operations and giving investors clearer exposure to aerospace, defense, and space revenue streams.

 

CNBC

JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major U.S. banks are planning to launch a tokenized deposit network in the first half of 2027, aiming to modernize payments infrastructure and compete with growing threats from stablecoins and cryptocurrency firms. The new platform, to be operated by The Clearing House, will connect traditional banking systems with blockchain technology, allowing tokenized bank deposits to move instantly with 24/7 settlement capabilities. The network is expected to support applications such as real-time liquidity management, programmable treasury operations, and cross-border payments. The initiative comes as banks face increasing competition from crypto firms and stablecoin issuers, particularly amid regulatory changes that could encourage wider adoption of digital payment assets. While banks have explored issuing stablecoins themselves, many executives see tokenized deposits as a more natural extension of existing banking services.

 

Wall Street Journal

Heineken is facing growing pressure from major shareholders to appoint an external chief executive for the first time in its history, as uncertainty over the succession to former CEO Dolf van den Brink weighs on investor confidence and the brewer’s share price. Two significant shareholders told the Financial Times they favour an outsider to lead a turnaround at the family-controlled brewer, arguing that fresh leadership could help address operational and strategic challenges. Heineken has traditionally promoted internal candidates and has only appointed one non-Dutch chief executive since becoming a public company 87 years ago. The succession process has become more complicated following Mr Van den Brink’s departure last month, with the board reportedly divided between internal and external candidates. Leading internal contenders include Asia-Pacific chief Jacco van der Linden and Europe head Glenn Caton, although some directors are said to have concerns over their readiness for the role.

 

NL Times

Financial Times

Reuters

Six U.S. senators, including Dick Durbin (D-IL) and Elizabeth Warren (D-MA), have written to tobacco companies Reynolds American and Altria, questioning their lobbying efforts and donations to the Trump administration. They claimed these actions led to a "lucrative payday" for the firms, allowing them to bypass federal regulations on vapes. The senators noted that the U.S. Food and Drug Administration's new "enforcement discretion" policy could flood the market with unlicensed products. The letters demanded details on donations and meetings that influenced this policy change.

 

US News and World Report

JPMorganChase has signed a new agreement with carbon removal company Charm Industrial to purchase 61,500 tons of carbon dioxide removal credits and provide a $20m venture debt facility to support the company's expansion. The deal builds on an initial 2023 agreement and increases JPMorganChase’s total carbon removal commitment with Charm to 90,000 tons, making it one of the largest bilateral bio-oil carbon removal offtake agreements in the sector. Charm removes carbon by converting agricultural and forestry waste into bio-oil and permanently storing it underground. Charm said the financing will help expand its Colorado operations and increase its capacity to process forest residues from wildfire mitigation projects. JPMorganChase said the agreement reflects its growing carbon removal strategy and confidence in Charm’s ability to deliver measurable, long-term carbon removal outcomes.

 

ESG Today

A recent analysis of the FASB’s Accounting Standards Update (ASU) 2023-05 argues that determining whether a newly formed entity qualifies as a joint venture for accounting purposes remains more complex than the new guidance may suggest. While the standard, effective for joint ventures formed on or after January 1st 2025, aims to improve consistency by requiring contributed assets and liabilities to be recorded at fair value upon formation, classification questions remain under existing accounting rules. The authors note that entities seeking joint venture treatment must first be evaluated under variable interest entity (VIE) and voting interest entity (VOE) guidance to determine whether they should instead be consolidated as subsidiaries. Even if an entity avoids consolidation under those frameworks, it must still satisfy a "purpose test," demonstrating that the venture was created for a specific shared business objective, such as developing a new product, market, or technology, with all venturers participating in management. They conclude that further implementation guidance from the FASB would help reduce uncertainty and improve consistency in how joint ventures are classified and reported under U.S. accounting standards.

 

The CPA Journal

The IRS and the Treasury Department have issued new guidance offering transition relief and grandfathering protection for foreign governments investing in U.S. companies. This follows proposed regulations under Section 892 of the Internal Revenue Code, which raised concerns among taxpayers. The new guidance allows foreign governments a transition period of at least 90 days to adapt to the final regulations. IRS CEO Frank Bisignano stated, "In response to comments on the recent proposed regulations, the IRS heard the concerns of many taxpayers and decided to provide transitional relief." The guidance aims to support sovereign wealth fund investments while preserving established market practices.

 

Accounting Today

Apple has agreed to submit the financial details of its Indian business to the Competition Commission of India (CCI), marking a significant step forward in a long-running antitrust investigation that could ultimately result in financial penalties. The case centres on allegations that Apple abused its dominant position in the market for iPhone app distribution and payments. A 2024 CCI investigation concluded that Apple’s App Store acted as an “unavoidable trading partner” for developers and that the company restricted the use of third-party payment systems for in-app purchases. Apple has denied any wrongdoing and intends to challenge the findings.

 

Economic Times