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Recent Editions
North America
Human Times
Growth in U.S. labor costs cooled unexpectedly in the fourth quarter, posting the smallest annual increase in four and a half years as easing demand for workers restrained wage gains. The Labor Department's Employment Cost Index rose 0.7% in the final three months of the year, down from 0.8% in the previous quarter and below economists’ expectations. On an annual basis, labor costs increased 3.4% through December, the weakest pace since mid-2021. Wages and salaries, which make up the bulk of labor costs, showed a similar slowdown, while a softer labor market was reflected in fewer job openings per unemployed worker. Despite the easing in wage pressures, higher import tariffs have continued to lift goods prices, keeping inflation elevated.
Full Issue
UK
Human Times
Tesco CEO Ashwin Prasad warns that the UK is facing a "quiet epidemic" of joblessness at a time when over 9m people are economically inactive. With the unemployment rate now at a four-year high of 5.1%, Prasad urged the government to stop "tinkering at the edges" and implement significant changes to address the issue. He noted that many young people are particularly affected, with nearly 1m not in education, employment, or training. "We have been sleepwalking into a quiet epidemic that is keeping millions of people out of work," Prasad said.
Full Issue
USA
Education Slice
The U.S. Department of Education has released new guidance emphasizing the rights of students and teachers to express their religious beliefs in public schools. This guidance allows for prayer as long as it does not disrupt school activities or coerce participation. Secretary of Education Linda McMahon said: "Our Constitution safeguards the free exercise of religion as one of the guiding principles of our republic." The guidance also mandates that schools protect students from religious harassment and accommodate those needing to pray at specific times. However, schools cannot sponsor religious activities and must treat religious student groups like any other student club. The document reflects a shift towards prioritizing individual religious expression, particularly for educators, while maintaining a neutral school environment.
Full Issue
USA
Accountancy Slice
The IRS is facing significant challenges in its initiative to achieve paperless processing, as highlighted in a TIGTA report. The IRS aimed to digitally process 78% of paper-filed returns for the 2025 filing season but has only scanned 5% of its target, with individual paper tax returns costing 43 times more to process than electronic ones. Kenneth Corbin, chief of the IRS's Taxpayer Services Division, said: "The digitalization of tax documents benefits taxpayers and the IRS." Despite receiving $37.6bn in funding from the Inflation Reduction Act, the IRS has struggled with delays and contractor issues, raising concerns about meeting the federal mandate to digitize all records by December 2030.
Full Issue
Scotland
Legal Matters Scotland
The Scottish Government has been ordered to pay £540,000 in legal costs to For Women Scotland (FWS) following a ruling by the UK Supreme Court. This decision stems from a case that clarified the definitions of "woman" and "sex" in the Equality Act 2010 as referring to biological terms. FWS confirmed it received a settlement of £392,500, contributing to the total costs incurred by the Scottish Government, which amount to at least £766,498.80. FWS plans to use these funds for ongoing legal challenges regarding the management of transgender prisoners. "We are eternally grateful for the overwhelming public support," FWS stated.
Full Issue
North America
Legal Slice
The House of Representatives has rejected a rule pushed by Republican leaders to prevent votes challenging US President Donald Trump’s tariffs. The move could pave the way for Democratic lawmakers to force a vote as soon as today on a resolution blocking Trump’s tariffs on Canada. The votes of three Republicans – GOP Reps. Thomas Massie, Don Bacon and Kevin Kiley – were enough to deal the blow to the administration. Bacon said: “Tariffs have been a ‘net negative’ for the economy and are a significant tax that American consumers, manufacturers, and farmers are paying. Article I of the Constitution places authority over taxes and tariffs with Congress for a reason, but for too long, we have handed that authority to the executive branch. It’s time for Congress to reclaim that responsibility.”
Full Issue
Europe
Risk Channel
The European Parliament has given its first major backing to the digital euro, after it endorsed the European Council's negotiating stance for a central bank digital currency with both online and offline functionality. The parliament said the digital euro is “essential to strengthening EU monetary sovereignty, reducing fragmentation in retail payments, and supporting the integrity and resilience of the single market,” adding “The increasing digitalisation of payments, if left exclusively to private and non-EU actors, risks creating new forms of exclusion for both users and merchants.” The European Central Bank wants a digital euro to lessen European reliance on US payment firms like Visa and Mastercard amid deteriorating transatlantic relations.
Full Issue
North America
CFO Slice
Carve-outs are set to lead global mergers and acquisitions activity in 2026, as companies streamline portfolios amid geopolitical uncertainty and rapid technological disruption, particularly from artificial intelligence, according to KPMG’s Global M&A Outlook 2026. The survey of 700 dealmakers found that 57% of corporate executives and 71% of private equity firms are open to or actively pursuing portfolio rationalization this year. Over half of corporates expect carve-out activity to increase in the next 12 to 24 months as boards refocus on core businesses and reduce exposure to geopolitical and operational risks. Private equity firms are positioning themselves as key buyers of divested assets. About 55% are considering carve-out acquisitions, seeing opportunities to unlock value by injecting capital, new management, and sharper strategic focus. US private equity firms are especially optimistic, with 75% expecting higher deal volumes in 2026, compared with 57% of corporates. Technology, particularly AI, is another major driver shaping M&A strategy, with 43% of dealmakers targeting the tech sector. However, execution challenges remain significant. Corporates cite operational disentanglement (52%), valuation complexity (43%), and IT and data separation (40%) as major hurdles. Despite this, KPMG expects increased carve-out activity to fuel future IPOs, with private equity acting as an intermediary between corporate sellers and public markets.
Full Issue