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The U.S. economy grew more strongly than previously estimated in the second quarter of 2026, while inflation remained above the Federal Reserve’s target in August. The Commerce Department revised annualized second-quarter GDP growth to 2.2%, up from 1.5%, reflecting stronger consumer spending and investment, including construction and AI infrastructure. Real final sales to private domestic purchasers, a measure of underlying demand, were also revised up to 4.6%. Meanwhile, the PCE price index rose 3.4% year over year in August, unchanged from July, while monthly headline and core inflation increased 0.3% and 0.2%, respectively. The figures suggest continued economic resilience, supported by a solid labor market, strong stock returns, and household spending, but persistent price pressures remain a challenge for the Federal Reserve as it seeks to return inflation to its 2% target.

 

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Reuters

Wall Street Journal

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Mattel chief executive Ynon Kreiz has been named co-CEO of the combined Paramount-Warner Bros. Discovery, taking responsibility for day-to-day management, strategic planning, and integration once Paramount’s $81bn acquisition closes. David Ellison will remain chair and CEO, while Mr. Kreiz will also join the board. The appointment comes after a federal judge approved Paramount’s settlement with 12 state attorneys general who had challenged the transaction on antitrust grounds, clearing a major obstacle ahead of the expected October 6th closing. The combined company will bring businesses including Paramount, Warner Bros., CBS, CNN, HBO, and major streaming operations under one corporate umbrella. Mr. Kreiz, who has led Mattel since 2018 and expanded its entertainment strategy, will be succeeded by former Condé Nast CEO Roger Lynch. The combined Paramount-Warner is expected to carry nearly $80bn in debt, while Paramount is targeting $6bn in annual synergies within three years.

 

CNN

CNBC

Financial Times

Wall Street Journal

General Mills has appointed chief operating officer Dana McNabb as chief executive from January 1st, succeeding Jeff Harmening, who has led the business since 2017 and will become executive chair. Ms McNabb, who joined General Mills in 1999 and became COO earlier this year, will focus on reviving sales and delivering a company-wide cost-cutting program, including modernizing its supply chain. The packaged food group has been seeking to strengthen demand through new and improved products and lower prices, having cut prices across roughly two-thirds of its North American grocery portfolio last year as consumers increasingly sought cheaper alternatives.

 

Bloomberg

The Minnesota Star Tribune

Wall Street Journal

Artificial intelligence (AI) is broadening the role of the chief financial officer beyond traditional financial responsibilities, according to an IBM Institute for Business Value study of 1,500 CFOs across 33 geographies and 26 industries. Sixty-two percent said their responsibilities have already expanded into enterprise technology or AI strategy, while more than half reported increased authority over portfolio management, capital allocation, business models, and growth strategy. By 2030, 56% expect greater responsibility for financial and ethical AI guardrails, and 55% anticipate more involvement in operating models, workforce strategy, and organizational structure. However, only 6% described their finance organizations as ready for AI-driven transformation at scale. IBM CFO Jim Kavanaugh said successful adoption requires strong data architecture and governance, redesigned workflows, and then technology deployment. IBM said its own AI-enabled quote-to-cash redesign achieved 90% touchless automation, a 60% productivity improvement, and a 54% increase in cash-conversion velocity.

 

Fortune

The New York Times has seen emails in which OpenAI staff made known their concerns that the San Francisco company's newest AI models were not being appropriately monitored during testing to gauge the technology's sophistication and to secure them. Executives responded by saying that the tests needed to be expedited to release the AI models on time. The employees said no additional security protocols were put in place. The ChatGPT maker's models later broke out of their testing environments and attacked the AI startup Hugging Face. The previously unreported email exchanges were indicative of the company's approach to security, according to employees and independent security researchers.

 

New York Times

Private sector firms added 90,000 workers in September, surpassing expectations, according to the ADP National Employment Report. "It's a strong report," said Nela Richardson, chief economist at ADP. The report indicates that annual pay rose by 3.2%, keeping pace with inflation. Hiring was particularly strong in education and healthcare, with 55,000 jobs added, and leisure and hospitality, which saw 22,000 new positions. This positive trend may allow the Federal Reserve to consider another interest rate hike this year. However, job openings fell to 7.1 million in August, the lowest since March, likely due to increased hiring and cost pressures. Despite potential challenges from rising energy prices, job growth is expected to remain solid into 2027.

 

U.S. News

A second judge has blocked a $100,000 fee imposed by President Donald Trump on new H-1B visas for skilled foreign workers. The ruling from U.S. District Judge Haywood Gilliam came after a coalition of unions, employers, and nonprofits challenged the fee, arguing that the U.S. Citizenship and Immigration Services and the State Department did not follow proper rule-making processes. Gilliam's decision follows a similar ruling in June by a federal judge in Boston. The fee, originally set to expire on September 21, was extended by Trump for another year. Steve Bressler, a lawyer with Democracy Forward, said: "Today's decision . . . protects a system that was thrown into chaos overnight." The H-1B program allows U.S. employers to hire foreign workers in specialty fields, with 65,000 visas available annually. Trump's fee sharply increased costs, which previously ranged from $2,000 to $5,000.

 

U.S. News

U.S. consumer spending accelerated in August despite persistent inflation, according to the Commerce Department, with inflation-adjusted personal spending rising 0.6% from July, its largest monthly increase since March 2025. Consumers increased spending on motor vehicles, furnishings, clothing, food services, and accommodations, supported by a stable labor market and rising stock market. Meanwhile, the Federal Reserve’s preferred core inflation measure rose a lower-than-expected 0.2% month over month and 3% from a year earlier, while overall annual inflation stood at 3.4%, remaining above the Fed’s 2% target. Revised data also showed second-quarter GDP expanding at a 2.2% annualized rate, up from the previously reported 1.5%. However, inflation-adjusted disposable income was flat in August, and the personal saving rate fell to 4.1%, its lowest level since 2022, highlighting pressure on household finances despite resilient spending.

 

Bloomberg

Market Watch

The U.S. merchandise trade deficit unexpectedly widened in August, increasing 11.5% from the previous month to $132.6bn, its largest level since early 2025 and well above economists’ median forecast of $115bn. Merchandise imports rose 5.5%, driven by a 16.6% surge in industrial supplies, including petroleum products, while imports of capital goods such as computers, semiconductors, and telecommunications equipment also increased. Goods exports climbed 1.9%, including higher shipments of industrial supplies. Trade flows have been affected by factors including the Iran war, U.S. companies stockpiling goods to limit supply-chain disruptions, and rising imports of equipment related to AI infrastructure. The wider deficit could weigh on third-quarter economic growth, while retail and wholesale inventories increased 0.3% and 0.7%, respectively. Relatedly, U.S. wholesale inventories increased 0.7% in August, ahead of forecasts for a 0.5% rise, but slowed from the previous month’s 1.3% increase.

 

Yahoo News

Bloomberg

Reuters

U.S. inflation increased less than expected in August, potentially reducing the likelihood of another Federal Reserve interest rate increase in October. The Personal Consumption Expenditures Price Index rose 0.3% month over month, below economists’ forecast of 0.4%, while annual inflation stood at 3.4%. Core PCE inflation, which excludes food and energy, increased 0.2% from July and 3% from a year earlier, with previous figures also revised downward following methodological changes by the Bureau of Economic Analysis. The figures come after the Fed raised its benchmark interest rate to a 3.75%-4.00% range earlier in September, its first increase in three years. Before the latest inflation data, financial markets had already reduced the estimated probability of an October rate increase to roughly 51.5%, down from 70% on Monday.

 

CNBC

Reuters

A federal judge has denied class-action status to lawsuits accusing Energizer and Walmart of conspiring to keep disposable battery prices artificially high. U.S. District Judge P. Casey Pitts ruled that three groups representing millions of consumers and wholesale purchasers had not demonstrated that key legal and factual issues were sufficiently common across the proposed classes. The lawsuits, filed in 2023, allege that Energizer raised wholesale prices for other customers under pressure from Walmart, allowing the retailer to offer lower prices while both companies charged higher-than-competitive prices for Energizer products. Energizer and Walmart have denied wrongdoing and maintain that there was no unlawful agreement to fix prices or suppress competition. The judge found that pricing models presented by two experts for the plaintiffs could not establish an antitrust impact across the proposed classes. However, he allowed the buyers to submit a renewed request for class certification using different evidence, meaning the underlying claims can continue.

 

Reuters

Walgreens Boots Alliance has secured a U.S. federal court ruling rejecting a whistleblower’s attempt to claim a share of its $4.7bn settlement with more than two dozen U.S. states over opioid-related claims. U.S. District Judge Joan Lefkow ruled that pharmacist T.J. Novak must pursue any claims in the individual state courts rather than through federal court, as the dispute involves differing laws across 28 states. Novak has previously received more than $25m as a whistleblower award from a separate $300m federal settlement with Walgreens, which denied wrongdoing.

 

Reuters

Shareholder groups collectively holding nearly $27m of Starbucks shares have proposed reinstating a board committee responsible for overseeing labor relations, citing the absence of a union contract nearly five years after the first U.S. store organized. The committee, established in 2023 to oversee labor relations and other social issues, was dissolved in November 2025, with Starbucks saying its responsibilities had been redistributed across the board to provide more integrated oversight. The proposal adds pressure on chief executive and chair Brian Niccol as the company pursues its turnaround strategy amid continuing labor disputes, including strikes, a $38.9m settlement with New York City over alleged staff-scheduling violations, and a union-backed consumer boycott. Starbucks said it remains confident that its board has the skills and experience necessary to oversee its strategy.

 

Reuters

The Trump administration wants industry input on moving production of 86 essential medicines to the U.S. within 18 months. The Office of Management and Budget, which will solicit proposals, cited national security grounds as reasons to reduce or eliminate dependence on generic medicines made overseas, including in China and in India. These two countries control the market for many of the active pharmaceutical ingredients that make any drug work, as well as other raw materials that are critical for drug manufacturing.

 

Bloomberg

Sycamore Partners is nearing a deal to sell Boots for close to $9bn to the Canadian branch of the billionaire Weston family, which owns grocery chain Loblaws and pharmacy business Shoppers Drug Mart through Wittington Investments. A deal could reportedly be reached as soon as next week, although no final decision has been made. Sycamore acquired Boots last year as part of its $23.7bn takeover of Walgreens Boots Alliance and subsequently separated the group into five businesses, with Stefano Pessina’s family retaining a 44% stake in each. A sale would end speculation over a potential London listing for Boots, which intensified following the appointment of former Currys boss Alex Baldock as chief executive in May.

 

Bloomberg

Financial Times

The Telegraph

RSM is exploring a potential IPO to raise capital for acquisitions and compete with private equity-backed rivals, while upgrading systems and expanding its international services and technology capabilities.

 

Financial Times

The FASB has proposed new guidance for mortgage servicing rights that would treat recapture as part of a single unit of account rather than as a separate intangible asset, potentially creating greater consistency and visibility around its value. Industry experts said the change could help MSR owners assess recapture performance and gains from refinancing more accurately, although questions remain about the definition of recapture and the treatment of home equity lines of credit and closed-end second mortgages. Because many market participants have already incorporated recapture directly or indirectly into MSR valuations for more than a decade, experts expect the proposal, if finalized, to have little significant effect on current fair-value assessments.

 

National Mortgage News