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Cybersecurity has overtaken geopolitical risk as the leading concern for chief executives, according to Aon finance chief Edmund Reese, who said executives are increasingly focused on managing multiple interconnected risks, including cyberattacks, geopolitical instability, AI investment, and talent shortages, rather than addressing individual threats in isolation. Reese said Aon is investing heavily in AI to improve productivity and client service, with AI-driven automation contributing 70 basis points of margin improvement in the second quarter. The company also said AI-enabled risk analysis tools have increased request-for-proposal win rates by 40%, supporting growth from new clients and expanded business with existing customers. Aon is continuing to expand its client-facing workforce, targeting 4% to 8% growth this year after increasing those roles by 6% in 2025. Reese said the company's strategy centers on helping clients better quantify financial risks and make informed decisions about which exposures to retain and which to transfer to insurers or other providers.

 

Fortune

U.S. employment costs increased at a steady pace in the second quarter, according to the Bureau of Labor Statistics, with the Employment Cost Index rising 0.9% from the previous quarter and 3.4% from a year earlier, indicating that labor costs are not adding significant inflationary pressure to the economy. However, after adjusting for inflation, both overall compensation and wages declined over the year, suggesting workers' purchasing power has weakened despite continued nominal pay increases. The report showed wages and salaries for civilian workers rose 0.9% during the quarter and 3.2% year over year, while private-sector employer spending on health benefits increased 6%, outpacing wage growth. The data support the Federal Reserve's assessment that the labor market remains broadly balanced as policymakers continue to monitor inflation and employment trends ahead of the July jobs report.

 

Bloomberg

Apple has introduced limits on the number of software vulnerability reports researchers can submit after a surge in artificial intelligence (AI)-generated security findings overwhelmed its review system. The company said it introduced submission caps and a 30-day cooling-off period in June to manage a rise in low-quality reports, while continuing to use AI internally to help triage submissions. The move follows claims from Italian cyber security start-up Bynario that it identified more than 50 bugs in the latest Mac operating system using OpenAI's ChatGPT in just three weeks, including a critical privilege escalation vulnerability. Bynario said it was initially unable to report all of its findings because of Apple's new submission limits, although Apple has since confirmed it is reviewing the company's reports.

 

Digital Trends

Financial Times

A new Thomson Reuters Institute report has found that indirect tax (IDT) teams play an increasingly important role in business strategy, but many struggle to demonstrate their value to senior leadership because they are primarily measured on compliance metrics rather than business impact. Among 290 professionals surveyed across the United States, Canada, Mexico, and Brazil, 88% said their function contributes value to their organization, yet only 32% described that contribution as significant, highlighting what the report calls a "contribution gap." The report also found that fragmented technology systems are limiting productivity, with 87% of organizations relying on multiple disconnected platforms and only 16% having fully automated data reconciliation. The report concludes that organizations can raise the strategic profile of their indirect tax functions through better performance measurement, greater executive engagement, and continued investment in technology and workforce development.

 

Reuters

A U.S. federal appeals court has revived parts of consumer litigation against major drugmakers and retailers, allowing claims to proceed over over-the-counter decongestants marketed as "maximum strength" despite containing oral phenylephrine, an ingredient the FDA concluded is no more effective than a placebo. The court also reinstated claims involving brand-name drugs approved through the FDA's New Drug Application process, ruling manufacturers could have updated product labels to reflect evolving scientific evidence. However, the court dismissed most state law claims, finding they were preempted because manufacturers complied with FDA labeling requirements, and rejected a civil racketeering claim. The litigation, involving companies including Procter & Gamble, Haleon, Bayer, GSK, Kenvue, CVS, Walgreens, Walmart, Target, and Costco, returns to the district court after the FDA proposed removing oral phenylephrine from over-the-counter oral cold medicines in 2024.

 

US News and World Report

Unilever has agreed to protect the employment terms of workers in its European and U.K. food unit until at least mid-2029 after the planned 2027 completion of its $65bn ​merger of the business with U.S. spice maker McCormick. The two year agreement, which will govern the treatment and pay of European employees regardless of ​changes in business conditions, is twice as long as is usual for such deals and goes beyond the protection that is typically afforded under European Union and British ​legislation, under which employee contracts and collective agreements can be renegotiated one year after merger deals. A Unilever spokesperson said: "We have made good progress over the past few weeks and have agreed commitments in Europe regarding the protection of employees’ terms ​and conditions and consultation timelines."

 

Reuters

Employers who are concerned about applicants using stolen or fabricated identities to boost their chances of getting a job are verifying applicants' identities throughout the hiring process by taking biometric scans of their faces and scrutinizing email histories. More than a third of about 1,230 headhunters and hiring managers surveyed by hiring software firm Greenhouse say they now spend half their time filtering for “spam and junk” job applications. “Technologies are now being used that draw from well-tested, decades-old cybersecurity used in places like airports and voting and military and government applications to the ordinary business of applying to a job,” Greenhouse CEO Daniel Chait said. Almost a quarter (23%) of U.S. companies polled by background-check provider Checkr said hiring fraud had cost them more than $50,000 in the past year because of delayed projects, compliance issues and rehiring costs.

 

Bloomberg

Alimentation Couche-Tard has agreed to acquire Polish convenience retailer Żabka Group for 32.6bn zloty ($8.7bn) in its largest-ever acquisition, strengthening the Circle K owner's European presence after abandoning its pursuit of Seven & i Holdings. The Canadian retailer will launch a voluntary tender offer of 32 zloty ($8.48) per share, with shareholders representing around 57% of Żabka's equity, including management and private equity investors, already backing the deal. The acquisition would significantly expand Couche-Tard's footprint in Poland, where it currently operates around 400 Circle K stores, by adding Żabka's network of approximately 13,000 convenience stores. The transaction, expected to complete by December, values the combined businesses at around $83.9bn of revenue and $7.8bn of adjusted Ebitda over the past 12 months. If Couche-Tard secures at least 95% of Żabka's shares, it intends to delist the company from the Warsaw Stock Exchange.

 

Bloomberg

Reuters

U.K. drugmaker AstraZeneca is in talks to combine with U.S. rival Bristol Myers Squibb in a deal that would create one of the world’s biggest pharmaceutical groups, valued at nearly $400bn.

 

Financial Times

IBM has announced research that it says demonstrates a new era of "quantum advantage," in which quantum computers can perform computations beyond the capabilities of conventional computers while producing results that can be independently validated. The findings, published with research partners including the University of Chicago, RIKEN, Qedma, BlueQubit, and Algorithmiq, are intended to advance the practical application of quantum computing by providing a more reliable foundation for scientific research and future commercial uses, including materials science and optimization. The announcement comes as IBM seeks to strengthen confidence in its quantum computing business following a sharp decline in its share price after a recent profit warning. The company believes the latest milestone supports its goal of delivering a fault-tolerant quantum computer by 2029.

 

Wall Street Journal

The Senate Finance Committee has approved the Taxpayer Assistance and Service (TAS) Act by a 26-1 vote, advancing legislation designed to modernize the IRS, improve taxpayer services, and reduce administrative burdens. AICPA welcomed the bill, highlighting provisions that would expand digital services, improve access to tax and refund information, introduce taxpayer wait-time dashboards and callback technology, strengthen protections for taxpayers facing financial hardship, extend the "mailbox rule" to electronic submissions and payments, and give the IRS greater authority over preparer tax identification numbers. The legislation now moves to the full Senate for consideration. While supporting the bill, AICPA noted that it does not include the proposed Simplify Automatic Filing Extensions (SAFE) Act, which would streamline filing extension requirements, and said it will continue working with lawmakers to advance those reforms in future legislation.

 

CPA Practice Advisor

Government Executive

The Tax Adviser

California's proposed Proposition 40, a ballot measure that would impose a one-time 5% tax on the assets of billionaires, has revealed growing divisions among the state's labor unions, with several organizations announcing their opposition while SEIU California adopted a neutral position. The measure, backed by SEIU-United Healthcare Workers West, is intended to help offset an estimated $100bn in healthcare and safety-net funding reductions linked to recent federal spending cuts, but opponents argue it would disproportionately benefit healthcare, fail to provide a sustainable long-term funding source, and could destabilize funding for education and public safety. Gov. Gavin Newsom has instead advocated for a federal wealth tax, contending that a national approach would be more effective because billionaires can avoid state-level taxes by moving elsewhere.

 

CPA Practice Advisor

Los Angeles Times

Mastercard has reported strong second-quarter results, with revenue rising 14% to $9.28bn, driven by continued growth across its global payments network. Net income increased to $4.39bn, or $4.97 per share, from $3.70bn, or $4.07 per share, in the same period last year, reflecting resilient consumer spending and higher transaction volumes.

 

Reuters

Wall Street Journal

U.S. hospitals are reporting a sharp increase in uninsured patients, higher levels of unpaid medical bills, and growing demand for charity care, which many executives attribute to reduced Affordable Care Act (ACA) subsidies that have made health insurance less affordable. Several major hospital systems, including HCA Healthcare, Community Health Systems, Tenet Healthcare, SSM Health, and Banner Health, said uninsured patient volumes have risen by around 20% in some cases, while Obamacare enrollment has fallen by approximately three million, or 13%, since the start of the year. Hospital leaders warned that the increase in uncompensated care is putting significant financial pressure on providers, with some delaying capital projects, cutting services, or considering facility closures to reduce costs. Industry experts expect the strain to intensify as Medicaid coverage declines in the coming years, potentially leading to higher healthcare costs for insured patients as hospitals seek to offset growing losses.

 

New York Times

Peter Lowy, a partner at Nelson Mullins, argues that tax lawyers must adapt to the growing use of artificial intelligence (AI), viewing it as a productivity tool rather than a replacement for professional judgment. While acknowledging the risks of AI-generated errors and fabricated legal citations, Lowy contends that these issues stem from inadequate human oversight rather than the technology itself, emphasizing that lawyers remain responsible for verifying all research, citations, and legal analysis before submitting work. Lowy argues that AI can significantly improve efficiency by accelerating legal research, document drafting, and brainstorming, allowing lawyers to focus on higher-value advisory work. He also maintains that technological competence is becoming an ethical obligation for legal professionals, urging firms to establish appropriate safeguards, comply with court and client requirements on AI use, and adopt the technology responsibly to remain competitive as client expectations evolve.

 

Bloomberg Tax

Shein is reportedly considering compensating some late-stage investors with a combination of cash payments and additional Class B shares as it prepares for a Hong Kong IPO at a lower valuation of around $40bn, according to Bloomberg. The proposed adjustment would reduce the effective cost of investments made in its pre-Series D, Series D and Series D+ funding rounds, although discussions remain ongoing and no final decision has been made. The reported move follows Shein's disclosure of a $99m net loss in the first quarter, compared with a $395m net profit a year earlier, raising questions over the valuation the fast-fashion retailer can achieve when it lists. Shein has not commented on the report.

 

Bloomberg

Reuters