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Companies are profiting from the U.S. Food and Drug Administration's fast-track approval process, which allows unproven drugs to be sold to patients before completing testing, Bloomberg reports. Since 2014, drug companies have made at least $3.6bn in global sales from medications that have later been shown to be ineffective or withdrawn from use. Critics argue that the FDA's drive to speed up approvals is putting people at risk and causing confusion. The expedited approval process has also impacted investors, with stocks often plummeting when drugs fail to deliver results. The FDA defends its efforts, stating that expedited approvals have improved medical care, but acknowledges that some drugs may fail to provide clinical benefit. The agency is now facing calls for regulatory reform and increased oversight of the accelerated approval pathway.

 

Bloomberg

[REPORT] 2024 IT Risk and Compliance Benchmark Report

It’s that time again! Hyperproof’s fifth annual IT Risk and Compliance Benchmark Report is here. Each year, we ask over 1,000 GRC professionals about their pain points, IT risk and compliance budgets, staffing, risk management best practices, and much more to compare results from the previous year, provide an in-depth view of the market’s current state, and prepare for this year and into the future.

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Boeing is facing a political test as the Senate Permanent Subcommittee on Investigations holds a hearing on the company's "broken safety culture." The hearing comes after a series of safety problems, including an incident where a door plug was sucked off an Alaska Airlines Boeing 737 Max 9 mid-flight. Boeing's lobbying operation is expected to be scrutinized, as the company has made changes to its lobbying team and severed ties with influential lobbying firms. The hearing could pose risks to Boeing's defense contracts and lead to more government oversight. The company spent $14.4m on lobbying in 2023 and has more than 100 lobbyists and 17 government-affairs firms on its payroll. Boeing is also facing friction with the Federal Aviation Administration and a criminal probe by the Justice Department. The hearing will examine Boeing's influence in Washington and its response to safety concerns.

 

Bloomberg

Temenos shares surged 18% after a special committee appointed by the company dismissed allegations made by Hindenburg Research as "inaccurate and misleading." The report by Hindenburg Research, which wiped out nearly a third of Temenos's stock market value, was found to have presented distorted facts about the company. The investigation, which reviewed over 100 million pages of data and interviewed senior management, found no evidence of accounting irregularities or manipulated earnings. Analysts view the committee's findings as a positive development, removing uncertainty and rebuilding investor confidence. Temenos is hopeful of naming a new CEO in time for its upcoming shareholders meeting on May 7. Petrus Advisers, an activist shareholder, expects legal action against Hindenburg.

 

Reuters

PwC is planning to investigate an anonymous letter that accuses the firm of turning a blind eye to its audit of Chinese property giant Evergrande. The letter, signed by unnamed partners, claims the Big Four auditor failed to address the financial fraud at Evergrande for over a decade. PwC Hong Kong has rejected the allegations, stating that the letter contains inaccurate statements. The firm has reported the incident to the relevant authorities and is taking it seriously. Evergrande, which filed for bankruptcy last year, has been accused of fraudulently inflating its revenues. Chinese authorities are now scrutinising PwC's role in the alleged accounting fraud. PwC resigned as Evergrande's auditor in 2021 due to disagreements over the developer's accounts. The investigation is ongoing.

 

The Daily Telegraph

The Times

The Financial Times reports that Mondelez International is to be handed a multi-million-euro penalty  by the European Commission for blocking the sale of its products between EU member states. Antitrust authorities began investigating Mondelez in early 2021 over concerns it may have blocked cross-border sales of its products in the EU, in in breach of competition rules.

 

Financial Times

Reuters

Large U.S. companies are pressing lawmakers to revive expired tax breaks for research and development spending, as a political stalemate keeps some finance executives wrestling with those investments.  Lawmakers hoped April’s tax filing deadline would spur action, but with a bill proposing the change stalled in the Senate, expectations are waning for a deal soon. The political wrangling comes as large public companies say the law as it stands is costing them hundreds of millions or billions of dollars, while some owners of small and medium-size businesses say they wonder if their firms will survive. Under a provision in the 2017 Tax Cuts and Jobs Act designed to generate revenue to help pay for cutting the corporate tax rate, companies must deduct research costs over five years for domestic research costs and over 15 years for those incurred abroad, rather than immediately. Companies of all sizes have been urging lawmakers to reverse the law. The House passed a bipartisan bill in January to restore immediate domestic research deductions retroactively from 2022, but Republicans have held up the bill in the Senate. 

 

Wall Street Journal

Google employees in two different U.S. offices protested the company’s work with the Israeli government on Tuesday, objecting to a $1.2bn contract it signed with the U.S. ally three years ago.  Dozens of employees began occupying company offices in New York City and Sunnyvale, California. The contract, known as Nimbus, that Google shares with Amazon provides cloud computing services to the Israeli government. The contract has faced backlash from employees and activists since it was signed in 2021, but the objections have grown amid Israel’s ongoing military campaign in Gaza. “I would not like to lose my job,” explained Google Software engineer Emaan Haseem. “But I think that it is impossible for me to continue coming into work every week without acknowledging and loudly condemning Project Nimbus and any support for the Israeli government.”

 

The Hill

Washington Post

Wired

The lowest wage Americans are willing to accept for a new job has reached a record high of $81,822, according to data from the New York Federal Reserve. This is a significant increase from the previous report in November 2023, which recorded a wage demand of $73,391. The rise in wage demands is driven by men, respondents over the age of 45, and those without college degrees. The report also found declining satisfaction with wage and non-wage compensation, while satisfaction with promotion opportunities remained steady. Despite workers seeking higher wages, employers are offering lower starting wages, with the average offer at $73,668 in March. The data reflects ongoing inflation pressures and a tight labor market, which have given employees more power to demand higher wages.

 

Reuters

U.S. employers are now required to accommodate workers' pregnancies, including abortion and contraception, according to a new rule by the U.S. Equal Employment Opportunity Commission (EEOC). The rule implements the Pregnant Workers Fairness Act, which mandates employers to modify job duties or provide time off for workers with pregnancy-related limitations. The rule has faced criticism from Republicans and religious groups who argue that it should not cover workers who choose to have abortions or use birth control. The lack of a religious exemption could potentially lead to a legal challenge. The EEOC's rule will be published on Friday and take effect 60 days later. It applies to employers with 15 or more employees and includes accommodations such as limits on heavy lifting, part-time work schedules, additional breaks, modified equipment, remote work, and paid or unpaid leave. Advocacy groups have supported the rule, stating that it removes obstacles for pregnant workers in the workforce. However, critics argue that some accommodations may be impractical for certain jobs and workplaces.

 

Reuters

H&R Block said it experienced technology outages on Monday, temporarily preventing thousands of last-minute tax filers from sending in their returns. Some people who bought and downloaded the H&R Block software on their computers were unable to electronically file their returns. Those who use the company’s software through a web browser or who work directly with its tax professionals weren’t affected, H&R Block said. Downdetector, which uses self-reports of service disruptions, said the outage started around 9 p.m. Sunday and continued into Tax Day. An H&R Block spokeswoman said the company fixed the problem by around 4 p.m. Monday. The company told some customers experiencing issues that they could print out their forms and send them to the IRS by mail.

 

CNN

The Hill

Wall Street Journal

The Bank of England's economic forecasting system has "serious deficiencies" that need to be modernized, according to an independent report by former Federal Reserve chairman Ben Bernanke. The review said a "material degree" of under-investment had led to staff using a "complicated and unwieldy system." Bernanke said updating and modernizing how its system handles economic data should be a "high priority" for the Bank. He also suggested that the Bank should create more in-role promotion opportunities and should base some remuneration decisions on in-role performance. Bank of England governor Andrew Bailey welcomed the review, saying: “This is a once in a generation opportunity to update our approach to forecasting and ensure it is fit for our more uncertain world.” He added: "Substantial investment is being made to develop our infrastructure and to update our system,” insisting: “It's a high priority."

 

BBC News

City AM

The Times

Microsoft plans to invest $1.5bn in G42, an artificial intelligence firm based in the United Arab Emirates. G42 has divested its investments in China and will now use Microsoft's cloud services and sell Microsoft services that use powerful AI chips. The agreement includes protections on the AI products shared with G42 and an agreement to remove Chinese gear from the Emirati firm's operations. Microsoft President Brad Smith will join G42's board and stated that "the U.S. is quite naturally concerned that the most important technology is guarded by a trusted U.S. company."

 

Reuters

The U.S. Supreme Court has declined to hear the appeal of Kenneth Ravenell, a Baltimore criminal defense attorney who was convicted of money laundering. Ravenell argued that his conviction should have been overturned due to the statute of limitations, but the trial judge did not inform the jury about it. The 4th Circuit U.S. Court of Appeals upheld Ravenell's conviction, with Chief Judge Roger Gregory dissenting. Ravenell, who was represented by Skadden, Arps, Slate, Meagher & Flom, was indicted in 2019 for allegedly helping his drug trafficker client and associates launder money. He was acquitted of other charges. The Supreme Court petition was supported by the National Association of Criminal Defense Lawyers and two Democratic members of Congress. The case is Kenneth Wendell Ravenell v. United States, U.S. Supreme Court, No. 23-638.

 

Reuters

Russian Copper Company (RCC) and Chinese firms have found a way to avoid taxes and bypass Western sanctions by trading copper wire rod disguised as scrap. By shredding the wire rod, it becomes difficult to differentiate from scrap, allowing both exporters and importers to profit from differences in tariffs. Russia's lower export duty on copper rod compared to scrap, along with China's lower tax on rod imports, creates a lucrative opportunity. China has become a major destination for Russian companies seeking to export their commodities after the United States imposed sanctions on Russia. The shredded metal is not only harder to identify and trace, but it also helps Chinese manufacturers avoid providing funds to Russia. This tax evasion scheme has raised concerns about the integrity of trade data and the impact of sanctions on business transactions.

 

Reuters

A majority of Americans say they would feel better if they could have more sleep, according to a Gallup poll. The survey found that 57% of Americans want more sleep, while only 42% feel they are getting enough. Only 26% reported getting the recommended eight or more hours of sleep per night. The poll did not delve into the reasons behind the lack of sleep, but cultural factors such as the emphasis on productivity and the pressure of a work ethic may contribute. The COVID-19 pandemic may have also affected sleep patterns, with some engaging in "revenge bedtime procrastination" to cope with stress.

 

U.S. News