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The Federal Reserve kept its benchmark interest rate unchanged at 3.5%–3.75%, but an unusually divided 9–3 vote highlighted growing pressure within the central bank to tighten monetary policy as inflation remains above its 2% target for a fifth consecutive year. Three Federal Reserve Bank presidents - Beth Hammack (Cleveland), Neel Kashkari (Minneapolis), and Lorie Logan (Dallas) - voted in favor of a quarter-point rate increase, marking the first time since 2016 that three policymakers have dissented in the same direction on a rate decision. While recent inflation data had eased immediate pressure to raise rates, higher energy prices linked to renewed U.S.-Iran conflict and sustained demand from AI-related investment have reinforced concerns that inflation could remain persistent. Chair Kevin Warsh maintained the Fed’s existing policy stance for a second straight meeting, despite signs that opinion within the committee is shifting. Officials advocating higher rates argue that strong economic activity, record equity markets, and robust corporate borrowing indicate the economy can withstand tighter policy, while AI-driven investment is creating demand that exceeds available supply.

 

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Melissa Puls, chief marketing officer and senior vice president of customer success and renewals at enterprise software company Ivanti, has said she has openly discussed her ambition to become a chief executive or board member with the company's CEO, presenting a long-term career plan and seeking opportunities to take on greater revenue responsibility. Ms. Puls said expanding her role beyond marketing into customer success has strengthened her business leadership skills and better positioned her for future executive roles, adding that today's CMOs are well-suited to become CEOs because of their deep understanding of customers, revenue growth, and team leadership. She also said the marketing function is becoming more strategic as companies increasingly recognize the importance of continuous customer engagement and data-driven insights, rather than measuring marketing solely through short-term return on investment.

 

Wall Street Journal

Visa is cutting 2,600 jobs, around 7% of its global workforce, as the payments giant restructures to adapt to rapid changes in the industry driven by AI and new payment technologies. Most of the reductions will be in its technology and product teams, although cuts will affect the wider organization. Chief executive Ryan McInerney said AI is accelerating changes in how work is carried out at Visa and described the current technological shift as a "once-in-a-lifetime inflection point" for the payments industry. The restructuring comes as the sector adapts to emerging technologies such as stablecoins and agentic commerce, which could reshape traditional card payments. In other news, the company has reported that adjusted earnings in the three months to June 30th totalled $6.3bn, or $3.32 per share, ahead of analysts' expectations of $3.23 per share. Net revenue increased 14% to $11.63bn, exceeding forecasts of $11.39bn, supported by resilient consumer spending and strong international travel demand during the FIFA World Cup.

 

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The trend of "tokenmaxxing," whereby companies maximize the use of AI tokens, is facing backlash as costs rise without a corresponding increase in productivity. Vincent Gusdorf, head of AI analytics at Moody's Ratings, said: "It's very easy to create something you don't need with AI." Initially celebrated in Silicon Valley, high token consumption is now seen as a financial burden, with Microsoft chief executive Satya Nadella warning that customers are paying twice for AI. Many companies are now reassessing their AI investments, with Bain & Company consultant Jue Wang noting that token costs have been doubling frequently. As firms seek more efficient AI solutions, the focus is shifting towards better "routing" of AI tasks to optimize costs. Open-source alternatives from Chinese startups are also gaining traction, offering similar capabilities at lower prices. Raffi Krikorian, chief technology officer at Mozilla, remarked that the industry is realizing "tokenmaxxing is a dumb thing," suggesting a shift in perspective on productivity metrics.

 

U.S. News

New York City has released a preliminary list of property owners who could be subject to Mayor Zohran Mamdani's new pied-à-terre tax, a surcharge on second homes valued at $5m or more that took effect on July 1st. The list includes prominent figures such as Commerce Secretary Howard Lutnick, Mary Trump, filmmaker Darren Aronofsky, and properties associated with Trump Park Avenue, although officials estimate the tax will ultimately apply to only about 10,000 second homes after the review process is completed. The tax was approved by the New York State Legislature earlier this year as part of Mamdani's affordability agenda and is expected to generate at least $500m annually for the city. While the Finance Department said the publication of the list is required under state law and relies on publicly available property records, critics argue that identifying individual property owners publicly risks stigmatizing taxpayers.

 

Wall Street Journal

Novo Nordisk must face ‌part of a lawsuit accusing it of defrauding shareholders about a key clinical trial for its weight loss and diabetes treatment CagriSema, a judge has said. The shareholders allege the company misled investors about the trial before releasing disappointing results that wiped billions of dollars off its market value. U.S. District Judge Robert Kirsch in Trenton, ​New Jersey, found that investors had plausibly alleged that some statements about CagriSema’s tolerability and the design of the late-stage trial may have been misleading. The ruling does not determine that Novo committed securities fraud; rather, it means the case can proceed into the next stage, where investors can seek evidence supporting their claims. A Novo Nordisk spokesperson said the company “believes that the allegations against it are meritless.”

 

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Reuters

The Senate Judiciary Committee's planned vote on Todd Blanche's nomination as attorney general is in doubt after Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina raised objections to provisions in a Justice Department settlement resolving President Donald Trump's lawsuit against the IRS. The senators say Mr. Blanche has failed to provide written assurances that he will eliminate parts of the agreement, including a proposed $1.8bn compensation fund, while also seeking changes to a provision that would shield Mr. Trump and his family from certain IRS audits. Mr. Cornyn said he is "not prepared to vote yes" without clear written commitments from the Justice Department, potentially jeopardizing Mr. Blanche's confirmation because he cannot afford to lose any Republican support on the committee. While Mr. Tillis said he believes the dispute is largely a matter of finalizing the language, Mr. Cornyn has questioned why the administration has not formally revised the tax audit provision, arguing it could grant Mr. Trump protections unavailable to other taxpayers.

 

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Grant Thornton has agreed to acquire CBIZ in an all-cash $5bn deal, marking the largest accounting sector takeover in more than a generation and creating the largest U.S. audit and consulting firm outside the Big Four. The combined company will generate more than $5bn in annual U.S. revenue, overtaking RSM, and reflects the rapid consolidation of the mid-market accounting industry following increased private equity investment. Under the agreement, CBIZ shareholders will receive $55 per share in cash, representing an 18% premium to the previous day's closing price and a 54% premium to the stock's 30-day average. The acquisition follows several years of expansion by both firms, including Grant Thornton's acquisition strategy after selling a majority stake to New Mountain Capital in 2024 and CBIZ's purchase of Marcum in 2024, which significantly expanded its public company audit business. Following completion of the deal, New Mountain Capital plans to separate CBIZ's retirement benefits and insurance operations into a standalone company. Grant Thornton said the acquisition will combine its international platform with CBIZ's strong U.S. market presence, expanding its ability to support clients from early-stage businesses to multinational companies, while reaffirming its focus on serving the middle market rather than competing directly with the Big Four.

 

Financial Times

International Accounting Bulletin

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Starbucks has raised its full-year guidance after reporting better-than-expected third-quarter results, with strong same-store sales growth signaling continued progress under chief executive Brian Niccol’s turnaround strategy. The coffee chain now expects adjusted earnings per share of $2.55-$2.65 for fiscal 2026, up from its previous forecast of $2.25-$2.45, and increased its outlook for global and U.S. same-store sales growth to nearly 6% and more than 6%, respectively. Adjusted earnings per share of $0.85 and revenue of $9.32bn both exceeded analysts’ expectations, while same-store sales rose 7.9%, driven by higher customer traffic and spending. Net income nearly doubled to $1.05bn, although reported revenue declined 1% following the sale of a controlling stake in Starbucks’ China business.

 

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California regulators have approved landmark rules requiring approximately 600 shopping centers, warehouses, office complexes, and private hospitals in the Los Angeles area to reduce pollution from stormwater runoff, marking the first requirement of its kind in the United States. The regulations apply to properties with at least five acres of impervious surface that drain into the Dominguez and Los Cerritos channel watersheds, where runoff carries contaminants such as heavy metals, oil, grease, and bacteria into creeks, rivers, and beaches. Property owners will be required to obtain stormwater permits and comply by either treating runoff to meet pollution standards, installing infrastructure such as retention ponds or swales to filter contaminants, or contributing to local stormwater improvement projects. State officials estimate contributions to these projects will cost around $4,100 per acre of paved surface, while other compliance options could be more expensive.

 

Los Angeles Times

KPMG Australia says it has made no decision on possible job cuts after the Australian Financial Review reported that ​the firm plans to eliminate about 1,000 positions or 10% ‌of its workforce in the wake of an audit misconduct scandal, with details of the roles to be eliminated being shared with selected partners this week. "We are reviewing our operating model, ⁠cost base and workforce needs. It is important to note that ​no decisions have been made regarding any specific measures or potential impact ​on roles," said a KPMG spokesperson, who added the firm was continuing to evaluate "a range of options to ensure the firm remains well positioned for the challenges ahead."

 

AFR

Reuters

The return-to-office debate has intensified as many employees feel that their employers' mandates are more about surveillance than collaboration. A recent EnhancV survey revealed that 72% of workers suspect these policies are a strategy for voluntary attrition. Gleb Tsipursky, Ph.D., noted that "attendance can be mandated, but commitment cannot." The research indicates that rigid office policies can lead to higher turnover rates, particularly among skilled workers. Flexibility has become essential, with studies showing that hybrid work improves job satisfaction and reduces quit rates. Companies must create meaningful reasons for in-office work, focusing on mentorship and innovation, to retain talent and foster a positive workplace culture.

 

The Hill