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Large companies in the EU which supply the American government have been told to comply with an executive order from President Donald Trump banning diversity, equity and inclusion programmes. Companies with US government contracts have been told to confirm their compliance in a questionnaire entitled "Certification Regarding Compliance With Applicable Federal Anti-Discrimination Law." The demand was sent out to firms by the US embassy in Paris. The document said: “Department of State contractors must certify that they do not operate any programs promoting DEI that violate any applicable anti-discrimination laws and agree that such certification is material for purposes of the government’s payment decision and therefore subject to the False Claims Act.” The French foreign trade ministry said in a statement:  “American interference in the inclusion policies of French companies — such as threats of unjustified tariffs — is unacceptable . . . France and Europe will defend their companies, their consumers, and also their values.” The letter was first reported by Les Échos newspaper.

 

Financial Times

New York Times

Reuters

Sir Keir Starmer and Donald Trump spoke over the phone last night and agreed to work “at pace” on an economic deal which the UK hopes will exempt it from US tariffs. British negotiators are trying to win a last-minute exemption ahead of Trump's 25% levy on car imports, which is expected to come in on Wednesday. Experts warn that a further 20 percentage point increase on tariffs on UK goods and services would cut the size of the British economy by 1% and force the Chancellor, Rachel Reeves, into tax rises this autumn.

 

BBC News

European Central Bank board member Isabel Schnabel has highlighted that the eurozone's economic recovery is being hampered by households' "misperception" of inflation and income. During a lecture on financial literacy in London, she noted that many households are hesitant to spend despite a slowdown in inflation and rising salaries. "Over the past three years, real private consumption has increased more slowly than real disposable income", Schnabel said. She pointed out that while real income grew for over half of households in the euro area last year, only 11% recognised this increase, particularly among poorer and less financially educated households. This misperception has weakened the impact of lower inflation on consumption, ultimately dampening the recovery, she said.

 

Reuters

This week, the UK's Supreme Court will hear a pivotal case regarding potential compensation for millions of motorists affected by unlawful hidden commission payments in the car finance sector. Following a Court of Appeal ruling that deemed such payments illegal without buyer consent, lenders, including major banks, have set aside substantial funds for claims that could reach hundreds of pounds per individual. The Financial Conduct Authority (FCA) has received numerous complaints, and while the Supreme Court's decision is awaited, the FCA is considering a compensation scheme for affected drivers. Alex Neill from Consumer Voice says that if the Court agrees with the previous ruling, compensation could reach tens of billions of pounds, comparable to the Payment Protection Insurance (PPI) scandal.

 

BBC News

UK companies are projected to invest $650bn over the next three years in reshoring and nearshoring initiatives driven by concerns over geopolitical risks and supply chain disruptions. A survey by Capgemini, involving 1,400 global businesses with revenues exceeding $1bn, revealed that 59% of British firms plan to enhance their manufacturing capabilities domestically and in nearby countries by 2028. Rob Walker, UK managing director of Capgemini, said that this reindustrialisation "represents a big opportunity for economic growth."

 

The Times

Asda's ongoing IT upgrade, known as Project Future, is projected to exceed £1bn this year, intensifying the financial strain on the supermarket. The company has already invested £900m since 2021 and plans to allocate an additional £175m to separate its technology from Walmart, its former majority owner. Allan Leighton, the supermarket's newly appointed executive chairman, acknowledged that Asda "has a long way to go" after reporting a 3.4% decline in sales. To regain market share, Leighton intends to invest in price reductions.

 

The Sunday Times

The Sunday Telegraph

The Sunday Times

UK businesses are preparing for a significant increase in costs as new wage and tax measures take effect this week. Starting from tomorrow, the national minimum wage will rise to £12.21 per hour, benefiting millions of workers. However, this wage increase coincides with unexpected tax changes, including a reduction in business rates discounts for over 250,000 firms, which will see average rates soar from £3,589 to £8,613. Alex Probyn, practice leader of property tax at Ryan, says these rises "will disproportionately affect small and independent businesses across sectors already struggling." Additionally, a new plastic packaging tax will impose further costs on retailers and lead to higher consumer prices. From Saturday, changes to national insurance contributions will add to the financial strain on businesses, with the employer NIC rate increasing from 13.8% to 15%.

 

City AM

Ofwat will from next month enforce a ban on bonuses for water company executives who fail to improve river cleanliness. The retrospective ban will consider performance since April last year, meaning those who have already received bonuses must return them. In the 2023-2024 financial year, executive directors received over £9m in performance-related pay. Environment Secretary Steve Reed said: "Starting this year, water bosses will no longer escape accountability," pointing to the Government's commitment to holding executives responsible for pollution. Ofwat is currently consulting on the implementation of these new rules under the Water Special Measures Act 2025, aiming to ensure that "polluters will not profit while billpayers pay the price."

 

Mail on Sunday

Thames Water's chief financial officer, Alastair Cochran, has announced his resignation amid the company's ongoing financial struggles. The UK's largest water provider is currently facing insolvency, having taken on an additional £3bn in debt, bringing its total liabilities to over £20bn. Cochran's departure comes at a critical juncture, as the company seeks new equity funding by the end of June. Sir Adrian Montague, chair of Thames Water, stated that Cochran had "led the work to put TWUL's finances on a more stable footing." Stuart Thom will serve as interim CFO while a permanent replacement is sought.

 

The Guardian

The UK government is considering using the Civil Contingencies Act as a way of nationalising British Steel. The move is being considered after the Scunthorpe plant’s Chinese owner, Jingye, announced plans to close both blast furnaces there after talks with ministers collapsed. Unions warn that furnace closures will be irreversible leaving Britain unable to make virgin steel, which many warn poses a national security threat. The Civil Contingencies Act would provide a way of blocking Jingye from closing the furnaces and nationalising British Steel despite Jingye not being in financial distress.

 

The Daily Telegraph

China's Ministry of State Security has briefed German diplomats and businesspeople on the revised anti-espionage law, aiming to foster an "internationally friendly business environment." The updated law, effective since July, broadens the definition of espionage and expands the powers of national security enforcement agencies. A ministry spokesperson said: "National security is a prerequisite for national development," emphasizing the law's role in maintaining a stable business environment. Critics have raised concerns about the law's clarity and potential for arbitrary enforcement against foreign entities. The briefing was part of ongoing efforts to enhance transparency and address foreign businesses' concerns.

 

South China Morning Post

Henna Virkkunen, the European Commission's digital chief, has said the commission is examining ways to eradicate overlap in tech rules in response to complaints from business about proliferating EU regulations in recent years. Virkkunen said there were no plans to water down laws such as the Digital Services Act which governs content moderation, the Digital Markets Act, which governs big tech platforms, or the AI Act which applies risk-based rules to artificial intelligence, as part of the review. "Everybody who is doing business in Europe has to respect our rules here. European companies, but also American and Chinese," she said, adding that the commission is seeking to make life easier for companies. "We will look at all our digital rules . . . often it's the same company who has to comply with the different rules," Virkkunen said.

 

Reuters

European insurers will be penalised for holding cryptocurrencies under proposals announced by EU regulators, who have imposed their most stringent capital requirements ever on bitcoin and other digital assets.

 

Financial Times

Sir Keir Starmer is preparing to accept the jurisdiction of the European Court of Justice (ECJ) to align with EU regulations aimed at achieving net zero emissions. The UK government intends to rejoin the EU's Emissions Trading Scheme (ETS), which was abandoned post-Brexit, necessitating changes to British laws and compliance with EU decisions. 

 

The Sunday Telegraph

Prominent UK art galleries have been fined by HMRC for money-laundering compliance failures, in a move highlighting increased scrutiny and upcoming sanctions obligations in the art market.

 

Financial Times

Anti-scam campaigners are urging police to intensify their efforts against fraudsters after a conference heard last week that scamming was practically a risk-free crime. The call comes after the UK government announced an "expanded" fraud strategy in response to a 19% rise in reported fraud cases. Rocio Concha from Which? stressed the need for collaboration among law enforcement, government, and businesses to combat the growing issue.

 

The Guardian