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HSBC will pay €300m to settle a tax fraud investigation involving its French unit. The Parquet National Financier (PNF) accused the bank of facilitating 'cum-cum' trading, allowing foreign investors to evade taxes on dividends from 2014 to 2019. The settlement ends a lengthy probe into these transactions. HSBC said it is "pleased to have resolved this matter" and noted its cooperation with the investigation and corrective measures taken.

 

Financial Times

City AM

London Evening Standard

The Times

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Russia's use of cryptocurrency for sanctions evasion has surged dramatically, with a 694% increase in global transactions by rogue states reaching approximately $100bn last year, according to Chainalysis. Sanctions evasion has become by far the largest category of overall crypto crime, which has soared by 162% with a record $154bn in transactions to illicit addresses. Andrew Fierman from Chainalysis observed that the actual figures could be higher as more transactions are uncovered. He said: "We have seen nation state activity on the blockchain since its inception. But the scale of it is what has shifted really recently."

 

The Daily Telegraph

The Block

The Employment Rights Act 2025 has been hailed as a significant reform that will enhance workers' rights across the UK. However, lawyers warn of potential litigation increases, and stress the need for better resources in the employment tribunal system. Mark Evans, president of the Law Society, highlighted the importance of adequate funding to manage case backlogs. Sarah Glockler, a partner at law firm Cripps, echoed these concerns, suggesting that the act will "increase demand without addressing constraints on the tribunal system." The government said it aims to address these concerns while rolling out the act over the next two years.

 

The Times

Unemployment in Germany reached its highest level in 12 years in 2025, with 2.948 million jobless, according to the country's labour office. Andrea Nahles, head of the office, said: "2026 is not a year of the all-clear, but a year with noticeable challenges." Despite a slight easing expected mid-year, the labour market remains weak, with a stable jobless rate of 6.3%.

 

Daily Sabah

The Financial Times reports on how the arson attack that left parts of Berlin without power for days in freezing temperatures has precipitated debate about the resilience of Germany’s energy infrastructure.

 

Financial Times

Financial services firms have successfully lobbied the UK government against any return to Brussels rules as Sir Keir Starmer continues to push for “closer alignment” with the EU.

 

Financial Times

New proposals from the UK's Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) aim to enhance transparency in pension schemes. The changes require schemes to disclose performance data, costs, and service quality. If a scheme is deemed poor value, firms must either improve it or transfer savers to better options. The new "traffic light" system will help identify scheme performance, with red or amber scores prompting necessary improvements or member transfers. Nausicaa Delfas, TPR chief executive, said: "Millions of people rely on pension income . . . We have to make sure they get value for their money." The proposals also address the need for long-term value and clearer expectations for trustees and providers.

 

Financial Times

City AM

The Times

UK accounting bodies are opposing a government proposal to transfer anti-money laundering oversight to the Financial Conduct Authority (FCA). They argue this shift will diminish sector-specific expertise and exacerbate economic crime. The Association of Chartered Certified Accountants said that the FCA would require years to develop the necessary knowledge. The Institute of Chartered Accountants in England and Wales echoed these concerns, warning that the changes could hinder industry growth and create regulatory confusion.

 

Bloomberg Tax

The UK Treasury lacks awareness of risks associated with the expanding shadow banking sector, according to a report by the Lords financial services regulation committee. The report highlights a "limited grasp" of concerns, suggesting a passive approach to potential threats to financial stability. The unregulated sector, valued at $16tn, includes private equity and credit firms, which are intertwined with traditional banks. Michael Forsyth, committee chair, stressed the need for vigilance in monitoring the sector’s growth.

 

City AM

The Guardian

China has hacked the emails used by congressional staff on powerful committees in the US House of Representatives, as part of a massive cyber espionage campaign known as Salt Typhoon.

 

Financial Times

Dutch financial technology company Bunq has reapplied for a banking licence in the United States as the firm seeks to expand its services in the competitive American market. The company previously withdrew its application but remains optimistic about its growth potential and operational model in the US. By facilitating easier access to banking services, Bunq hopes to capture a growing customer base interested in digital finance solutions.

 

Bloomberg

A copper shortage driven by the energy transition and the artificial intelligence sector’s demand for the metal would pose a “systemic risk” to global economic growth, according to S&P Global.

 

Financial Times

President Donald Trump has signed an executive order directing US departments to end participation in and funding for 31 United Nations entities and 35 non-UN organisations "as soon as possible." The entities include the Intergovernmental Panel on Climate Change and the UN Framework Convention on Climate Change. The move is seen as likely to diminish the US role in addressing greenhouse gas emissions. The orders were signed on Wednesday after a review into causes that the White House said were "a waste of taxpayer dollars". "These withdrawals will end American taxpayer funding and involvement in entities that advance globalist agendas over US priorities," it said in a statement.

 

Bloomberg

Deutsche Welle

Elon Musk has announced that Neuralink is set to commence "high-volume production" of its brain-computer interface devices in 2026, transitioning to fully automated surgical processes. These implants aim to assist individuals with severe conditions, including spinal cord injuries, allowing them to control digital devices through thought. Since the start of human trials in 2024, twelve patients have successfully used the implants for various tasks, following initial safety concerns that delayed their development.

 

Reuters

People who stop taking anti-obesity drugs such as Ozempic, Wegovy and Mounjaro will within two years return to their original weight and forfeit benefits to the heart, cholesterol levels and blood pressure, a review of studies suggests. A research paper published in the British Medical Journal analysed data from more than 9,000 people from 37 studies.

 

CBC News

Financial Times

Sydney Morning Herald