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The Financial Stability Board (FSB) has raised the alarm about the potential risks in the leveraged short-term repo market. The global financial watchdog warned that asset managers, particularly hedge funds, may need to liquidate holdings during market stress, causing significant downward pressure on bond prices. The FSB's report highlights the need for regulators to address data gaps in the $16trn repo market and develop metrics to monitor vulnerabilities. "Strains in repo and government bond markets may spill over into each other or across multiple jurisdictions, given the international nature of repo markets," the report said, adding: "Given the importance of repo markets within the global financial system, it is critical to preserve their functionality, particularly during periods of stress."

 

Financial Stability Board

Reuters

The Daily Telegraph

The Federal Reserve said it will not change large banks’ stress capital buffer requirements during the 2026 stress-test cycle, as it considers reforms aimed at greater transparency. Vice Chair for Supervision Michelle Bowman said buffers will instead be revised in 2027, after the Fed collects public feedback on its models and can address shortcomings: “Waiting to calculate new stress capital buffer requirements . . . will give us the opportunity to correct any deficiencies.” The Fed also released 2026 scenarios featuring sharply higher unemployment, severe market volatility, and falling asset prices. Governor Michael Barr dissented, warning a freeze could make tests “stagnate.”

 

Reuters

U.S. Vice President JD Vance has proposed creating a new critical mineral trading bloc and coordinating pricing floors as Washington seeks to loosen China’s control over rare earth mineral manufacturing. “We want members to form a trading bloc among allies and partners, one that guarantees American access to American industrial might while also expanding production across the entire zone,” Vance said at a meeting of foreign ministers at the U.S. State Department. “What is before all of us is an opportunity at self-reliance that we never have to rely on anybody else except for each other, for the critical minerals necessary to sustain our industries and to sustain growth.”

 

AP News

Al Jazeera

Financial Times

Mining.com

EU industry chief Stephane Sejourne has said in an article which was published in newspapers across Europe on Sunday, and which was co-signed by more than 1,100 CEOs and other business leaders, that Europe needs to protect its own industries with a "Made in Europe" strategy. "Without an ambitious, effective and pragmatic industrial policy, the European economy is doomed to be just a playground for its competitors . . . We must establish, once and for all, a genuine European preference in our most strategic sectors," Sejourne said. Reuters notes that EU countries are divided over European Commission plans to propose a so-called Industrial Accelerator Act this month that will likely set requirements to prioritise locally manufactured products.

 

Reuters

Ford and China’s Geely are in advanced discussions about a potential partnership aimed at sharing manufacturing capacity and technology as global automakers seek to cut costs and speed innovation. The talks are most developed around Europe, where Geely could use Ford’s factory space - most likely Ford’s Valencia, Spain plant - to build vehicles for the region, helping Geely avoid EU tariffs on Chinese-made electric vehicles. The companies have also discussed frameworks for sharing vehicle technologies, including automated driving, though it is unclear whether these talks would extend to the U.S. market. Ford has sent delegations to China and hosted Geely executives in the U.S. as discussions have intensified.

 

Bloomberg

Financial Times

Reuters

Alphabet plans to dramatically expand its presence in India, and could take millions of square feet in new office space in Bengaluru, the country's tech hub. The company has leased one office tower and purchased options on two others in Alembic City, a development in the city's Whitefield tech corridor, totaling 2.4m square feet. If Alphabet takes all of the space, the complex could accommodate as many as 20,000 additional staff - more than doubling the company’s footprint in India. Alphabet currently employs around 14,000 people in India. Bloomberg notes that President Trump’s visa restrictions have made it harder to bring foreign talent to America; as such, some companies are recruiting more staff overseas

 

Bloomberg

First Brands Group founder Patrick James and his brother Edward have pleaded not guilty to fraud charges and face a July 13 trial in New York. Federal prosecutors claim the pair used fake and inflated invoices to persuade lenders to provide billions of dollars in financing to the company. The brothers, who are Malaysian-born U.S. citizens, were arrested in Ohio last week after they were indicted on charges including wire fraud, bank fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering.

 

Bloomberg

Financial Times

Swiss trading house Trafigura has won a victory at London's High Court after a judge found businessman Prateek Gupta liable for fraud involving fake nickel cargoes. Trafigura claimed Gupta was the mastermind of a "Ponzi scheme" in which he and his companies agreed to provide high-quality 99.8% pure nickel but delivered low-value or even worthless materials instead. The long-running legal dispute began in 2023 after the fake nickel shipments emerged and Trafigura filed charges against its former business partner Gupta. The ruling by Judge Justice Saini recommends that Geneva-based Trafigura is entitled to relief for “sums of about $500m, together with substantial damages.”

 

Bloomberg

Estée Lauder has pleaded guilty to two counts of violating the Canadian Environmental Protection Act due to the presence of perfluorononyl dimethicone in its products. This silicone polymer, part of the PFAS group, is known for its environmental persistence. Environment and Climate Change Canada said that the company failed to notify the government before distributing these products. An Ontario court has mandated that Estée Lauder inform its shareholders of the conviction, and the fine will contribute to the federal government's environmental damages fund. 

 

The Globe and Mail

Brad Karp has resigned as Paul Weiss chair following fallout over emails between him and disgraced financier Jeffrey Epstein were made public. Scott Barshay, who had been chair of the law firm's corporate department, will replace Karp. “Leading Paul, Weiss for the past 18 years has been the honor of my professional life,” Karp said in a statement. “Recent reporting has created a distraction and has placed a focus on me that is not in the best interests of the firm.” Karp will remain at the firm, where he “will continue to focus his full-time attention to client service,” Paul Weiss said in a statement.

 

CNBC	New York Times

Senate Judiciary Committee Chairman Chuck Grassley has led a hearing focused on Swiss banks' historical ties to Nazi activities, particularly examining Credit Suisse's role in managing Nazi-linked accounts.  The new probe of Credit Suisse discovered 890 previously undisclosed accounts with potential Nazi links, including the German Foreign Office, the SS paramilitary organization and a German arms-manufacturing company, Grassley told reporters. He gave no details on how much money might have been held in the accounts and their current status. “Shining light on Credit Suisse’s past is part of turning the page, a very dark chapter of history,” Grassley said. Credit Suisse owner UBS has argued that a 1998 settlement covers any potential future revelations or obligations.

 

Bloomberg

France 24

Luxembourg Times

New York Times

Outdoor retailer Eddie Bauer is reportedly planning to close all its physical stores and transition to an online-only model. The Seattle-based company may file for Chapter 11 bankruptcy, which would affect its approximately 200 North American locations. Founded in 1920, Eddie Bauer has seen a significant decline from nearly 600 stores in the late 1990s. While the company has not confirmed the closures, reports indicate that "store closing" signs have appeared at various locations. The brand's Japan stores will remain unaffected by this potential bankruptcy filing, according to Women's Wear Daily.

 

The Hill

The Baltimore Sun

The Oregonian

Anthropic has unveiled a legal plugin that helps customise its large language model Claude for legal tasks such as document review. The AI company said the plugin did not provide legal advice. “AI-generated analysis should be reviewed by licensed attorneys before being relied upon for legal decisions,” Anthropic said.

 

Legal IT Insider

Artificial Lawyer

The Guardian

Coalition has launched its Private Equity Practice to assist firms in managing cyber risk. This new cyber insurance solution, developed with private equity brokers, aims to address complex cyber threats from deal screening to exit. Shawn Ram, Coalition's Chief Revenue Officer, said: “In private equity, a single cyber incident at one company can affect the entire fund.” Marcin Weryk, the new practice leader, emphasised the need for speed and certainty in cyber due diligence. Coalition's offering includes rapid claims support and comprehensive protection against threats like ransomware and fraud, and is available to eligible firms in the U.S. and Canada.

 

Reinsurance news

New research highlights the dangers of ultra-processed foods for cancer survivors. A study published in Cancer Epidemiology, Biomarkers & Prevention found that survivors consuming high amounts of these foods had a 59% increased risk of cancer-related death and a 48% higher risk of dying from any cause over 15 years. Marialaura Bonaccio, the study leader, noted that the industrial processing of foods can disrupt metabolic processes and promote inflammation. She emphasized the importance of reducing ultra-processed food intake and opting for whole foods to improve health outcomes.

 

US News and World Report