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The Competition and Markets Authority (CMA) is under scrutiny following a report from the Institute for Public Policy Research (IPPR) that calls for enhanced powers to regulate US tech companies like Apple and Google. The report argues that the CMA must be tougher to prevent these firms from "stifling UK businesses" through their app store dominance. The UK government has recently shifted the CMA's focus towards prioritising growth, which has raised concerns about potential weakening of regulations on major tech players. Tommaso Valletti, professor of economics at Imperial College Business School, who co-authored the report, says that Apple and Google's dominance in the mobile app market could extract up to £1.4bn from UK developers this year, potentially rising to £3.3bn annually. Valletti warns that monopolistic practices hinder innovation and economic growth, saying: "Enterprise thrives when barriers to entry are low and innovation is rewarded."

 

The Times

The Times

Research from EY reveals that the UK hosted 853 foreign direct investment (FDI) projects last year, marking a 13% decline from the previous year. Despite this drop, the UK remains one of Europe's top investment destinations, following France, which secured 1,025 projects. The overall number of FDI projects in Europe fell to 5,383, a nine-year low. Anna Anthony, EY UK and Ireland regional managing partner, said: "While it's encouraging to see that the UK remains one of Europe's top investment destinations, it wasn't immune to the decline in FDI volume." Factors contributing to the decline include weak economic growth in Europe, high energy prices, and political instability in France.

 

The Times

This Is Money

The Bank of London (BoL) is currently under investigation by the Prudential Regulation Authority (PRA) amid concerns about its operational viability. Auditors from EY have indicated that there are "material uncertainties" regarding the bank's ability to continue as a going concern, particularly in light of a £12m loss reported for 2023. The investigation relates to historical matters predating the bank's change in ownership in May 2024. Following the departure of key figures, including Peter Mandelson, and a significant workforce reduction, the bank's future funding capabilities are now in question. BoL has said it is cooperating with the PRA and has initiated its own internal investigation into the issues at hand.

 

The Daily Telegraph

The Times

The Guardian

Alphabet's Google has issued a warning about the Scattered Spider hacking group, which has been linked to the cyber attack on Marks and Spencer. John Hultquist, an analyst at Google's cybersecurity division, cautioned that "US retailers should take note" because these hackers are adept at bypassing established security measures. The attack on M&S, which has disrupted its online operations since 25 April, resulted in the access of some customer data, including names and addresses, although no payment details were compromised. M&S acknowledged the "sophisticated nature of the incident" in a communication to customers. The Scattered Spider group has previously targeted various sectors, and law enforcement faces challenges in addressing their activities due to their elusive nature and the youth of the hackers involved.

 

The Guardian

Experts have presented alarming statistics on digital crime to Holyrood's Criminal Justice Committee, revealing that NatWest faces approximately 100m cyber attacks each month. Chris Ulliott, head of cybersecurity at NatWest, explained: "About a third of the emails, millions a month, we actually block because they are believed to be the start of an attack against our staff." The rise in cyber crime has been particularly pronounced since the pandemic, with Police Scotland reporting an increase from 7,710 cyber crimes in 2020 to 18,280 in 2024. Concerns are growing about fraudsters leveraging AI to enhance their credibility, and the potential to alter their appearance in real-time online interactions.

 

London Evening Standard

The government has decided to disband the National Investigation Service (Natis) following a review that highlighted its ineffective use of public funds. Established in 2020 to investigate fraud related to the £47bn Covid bounce back loan scheme, Natis has only secured 14 convictions despite receiving £38.5m in taxpayer money. The review concluded that "public money was not being spent effectively," precipitating the transfer of cases to the Insolvency Service.

 

The Times

A proposal to remove the £100 cap on contactless payments has raised concerns regarding potential fraud and security risks. The Financial Conduct Authority has suggested that shoppers could make purchases without entering a PIN, which has alarmed industry experts. Jana Mackintosh, managing director of payments and innovation at UK Finance, said: "Having a contactless limit is important in terms of fraud prevention."

 

Daily Star

Aviva's proposed £3.7bn acquisition of Direct Line is under investigation by the Competition Markets Authority (CMA), which is assessing whether the merger could lead to a "substantial lessening" of competition in the insurance market. The CMA's findings are expected in July. The combined entity would control over 20% of the UK home and motor insurance market. Aviva shareholders would hold approximately 87.5% of the new company, while Direct Line shareholders would own about 12.5%. Despite initial expectations from JP Morgan that regulators would not raise concerns, the CMA has indicated that the merger "may be expected to result in a substantial lessening of competition." Interested parties have until 29 May to provide feedback to the CMA regarding the deal.

 

BBC News

City A.M.

The Guardian

An investigation by Greenpeace UK's Unearthed has revealed that companies like Virgin Atlantic, Renault, and Aqua Pura continue to make misleading environmental claims despite being censured by the Advertising Standards Agency (ASA). The ASA's crackdown on greenwashing began in 2021, identifying 44 firms with unfounded claims. Recently, Virgin Atlantic has been promoting its use of "100% sustainable aviation fuel," despite a ruling against this wording, which could mislead consumers about its environmental impact. A spokesperson for the ASA said: "We continue to proactively monitor green claims and where we find issues, we act."

 

The Guardian

Julius Baer, Switzerland’s second-largest listed lender, has been ordered to pay more than SFr4m ($5m) by Switzerland’s financial regulator over anti-money laundering and compliance failings in its handling of high-risk clients.

 

Financial Times

The Swiss Federal Administrative Court has ruled that the Swiss government's decision to strip former Credit Suisse bankers of their bonuses was unlawful. The court sided with 12 former managers, saying there was no legal basis for the Federal Department of Finance (FDF) to permanently reduce payouts after the bank received state aid. The ruling highlighted that "all state aid to Credit Suisse had ceased by 11 August 2023 at the latest," and any permanent interference with employment entitlements required clear legal authority, which was found to be absent.

 

Bloomberg

Financial Times

Reuters

Burberry has announced plans to reduce its global workforce by approximately 1,700 jobs, representing about 20% of its staff, as part of a strategy to cut costs and return to profitability. The company, which recently reported a loss of £3m for the year ending March 29, aims to achieve £100m in annual savings by the 2027 financial year. The proposed changes will primarily affect office-based teams, with significant impacts expected at the Castleford factory in the UK, which produces the brand's iconic trench coats. Burberry says it is committed to maintaining its UK manufacturing operations while investing in facility upgrades to enhance production capabilities.

 

Financial Times

Yorkshire Post

Commerzbank has reached an agreement with its works council to reduce its workforce by approximately 3,900 jobs by 2028 as part of its 'Momentum' strategy aimed at achieving more ambitious profit targets. The bank plans to implement these cuts primarily through partial and early retirement, with severance payments also available for affected employees in Germany.

 

Reuters

BBVA is considering cutting up to 2,500 jobs, representing nearly 6% of its workforce, following its acquisition of Sabadell. The Spanish Government has expressed opposition to the takeover, currently valued at over €14bn, due to concerns over potential job losses. The number of job cuts may vary based on the government's decision regarding the merger. BBVA has said it will close 300 branches as part of its strategy to achieve €850m in cost savings, with €300m expected from job reductions.

 

Reuters

Volkswagen finance chief Arno Antlitz has warned that the automaker's historic restructuring is not enough, citing a “huge risk [that] complacency kicks in again” before Europe’s largest carmaker can transform itself. 

 

Financial Times

Climate activists including Greta Thunberg joined around 50 demonstrators in occupying the offices of Maersk Tankers, a subsidiary of Mærsk, on Amager in Copenhagen. Organized by the Green Youth Movement, the protest aimed to spotlight Mærsk's role in the climate crisis and also its alleged involvement in arms shipments to Israel.

 

Copenhagen Post

JP Morgan's London office was vandalised yesterday, leaving staff to confront smashed windows and red paint splattered across the building. Security measures were heightened, with all entrances cordoned off. The Metropolitan Police have been notified, but it remains unclear if the incident is linked to ongoing protests against banks, particularly following similar attacks on Barclays branches. A spokesperson for Barclays previously attributed these actions to protest groups opposing the bank's financial ties to defence companies.

 

City A.M.

The Trump administration has warned companies around the world that using artificial intelligence chips made by Huawei could trigger criminal penalties for violating US export controls.

 

Financial Times