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The UK Treasury has announced plans to revise ringfencing rules that force lenders to separate their retail operations from their investment banking activities, allowing major banks to access more capital for investment. The overhaul aims to free up to £80bn for high-growth UK businesses by permitting retail banks to engage in higher-risk lending. Lenders would be given "an allowance" worth up to 10% of their ringfenced assets to carry out activities that are at present prohibited. Institutions will also be able to share back-office functions allowing them to slash administrative costs. Analysts predict potential savings of £2.5bn across the sector, with NatWest the biggest beneficiary. Lucy Rigby, chief secretary to the Treasury, said the changes "will unlock finance for growth while keeping the UK banking system resilient, competitive and fit for the future."

 

Financial Times

The Daily Telegraph

London Evening Standard

Anthropic has agreed to brief leading finance ministries and central banks on vulnerabilities in the global financial system’s cyber defences identified by the US technology company’s latest AI model.

 

Financial Times

Commerzbank has formally rejected an offer by Italy's UniCredit to buy the German lender. UniCredit, which has become Commerzbank's ​largest shareholder, recently made an offer to buy Commerzbank ​shares in a deal that values the bank at nearly €39bn ($45.37bn) and below its market price. The German bank said in an analysis of the deal that the offer "does not reflect the fundamental value of Commerzbank" and that it was "vague and entails considerable risks."

 

Reuters

Standard Chartered plans to cut 15% of back-office jobs by 2030 as it expands AI and automation use, targeting higher efficiency, profitability and productivity under chief executive Bill Winters. The London-headquartered lender, which focuses on Asia-Pacific and Africa, employed around 51,000 staff in support ​services - equivalent to back-office positions - as of June 2025. "It's not cost-cutting. It's replacing in some cases lower-value human capital with the financial capital and the investment capital we're putting in," Winters said.

 

Financial Times

Reuters

Inter Ikea has announced plans to cut 850 jobs, representing around 3% of its workforce, as the global Ikea franchiser seeks to reduce costs and lower prices amid falling consumer demand and rising operating pressures. The company said weaker consumer confidence, exacerbated by the Iran conflict and higher fuel costs, has reduced discretionary spending on home furnishings, while tariffs and inflation have also increased costs. Inter Ikea, which franchises the Ikea brand across 63 countries, is also continuing its strategic shift away from large suburban warehouse stores towards smaller city-centre locations. The restructuring follows two consecutive years of declining sales for Ikea and leadership changes at both Inter Ikea and major franchisee Ingka Group.

 

Reuters

Germany's industrial decline is being felt especially painfully in places such as Ludwigshafen, a company town of chemical giant BASF, which has shed some 2,500 jobs since 2022 amid a shift in focus to China. "The mood is obviously not good," Sinischa Horvat, chairman of BASF's works council, which represents staff interests, told AFP. "The entire market is currently so weak. When you watch the news, you hardly hear any positive messages." Local disquiet has intensified following a recent decision to sell off thousands of company-owned apartments, many of which are occupied by current and former workers. "The sale of these apartments sends a signal to the city and to the people who live here and, in some cases, work at BASF - BASF is scaling back its operations," said Patrick Thiel, a BASF employee who lives in one of the apartments.

 

France 24

The International Monetary Fund (IMF) has urged UK finance minister Rachel Reeves to reconsider the triple lock pension and implement contingency tax measures to manage public debt. The IMF's latest report highlights risks in spending forecasts and tax receipts, criticising reliance on ambitious efficiency savings. It suggests broadening the VAT base and reforming property taxes. The report also recommends indexing the state pension to the cost of living instead of the triple lock. The IMF raised its growth forecast for the UK to 1% for 2026, up from 0.8%. It also noted that the UK economy is "resilient" but warned that the ongoing Iran war and domestic uncertainties could hinder growth and lead to higher energy and food prices. Reeves said the upgrade "proves that this government has the right economic plan."

 

Financial Times

The Daily Telegraph

Daily Mail

Stellantis and Renault are being called on by the French government to favour local parts suppliers to protect jobs and retain expertise in the region amid deepening ties at Europe’s automakers with manufacturers from China. The two carmakers “must play their part on European preference, including in terms of purchases with their suppliers,” French Finance Minister Roland Lescure said. “Industrial sovereignty must be a collective battle,” he added. Meanwhile, in a separate interview, Lescure said he is optimistic that the green transition will continue to create jobs for workers in France. “Plants are reopening in France . . . Not at the pace we’d like maybe, but they are reopening.”

 

Bloomberg

Shakira has been acquitted of tax fraud by Spain’s High Court, which overturned a €55m ($64m) fine imposed by Spanish tax authorities and ordered the government to repay the singer more than €60m, including interest. The court ruled that authorities failed to prove Shakira spent more than 183 days in Spain during 2011, the threshold required to establish tax residency under Spanish law. Spain’s tax agency said it will appeal the decision to the Supreme Court, meaning repayment will be delayed pending the outcome. The ruling relates only to the 2011 tax year and is separate from a 2023 agreement in which Shakira accepted charges and paid a fine over unpaid taxes between 2012 and 2014.

 

Reuters

The Dutch National Coordinator for Counterterrorism and Security is investigating a covert operation involving two London-based private intelligence firms which collected sensitive information on employees of the International Criminal Court (ICC). The operation primarily targeted a lawyer who accused ICC chief prosecutor Karim Khan of sexual abuse. The detectives sought evidence of a cover-up or links to Israel's Mossad. The ICC condemned such investigations as "unacceptable" and is collaborating with Dutch authorities on appropriate measures. Khan has denied any involvement in the operation.

 

NL Times

Japan’s major convenience store operators are developing stores into disaster response hubs, aiming to support local communities during earthquakes, typhoons, and other emergencies. Lawson recently reopened a store in Chiba Prefecture as a dedicated “disaster support convenience store,” equipped with solar panels, storage batteries, emergency water supplies, and free smartphone charging during outages. The company plans to expand the concept to 100 stores by fiscal 2030 as Japan prepares for potential large-scale disasters, including a possible Nankai Trough megaquake. FamilyMart plans to use electronic displays in around 11,000 stores nationwide to broadcast evacuation guidance and disaster updates, while also testing communication-equipped mobile sales vehicles with NTT Docomo. Seven-Eleven Japan has strengthened its real-time disaster monitoring systems, allowing stores to report outages and damage directly to headquarters through smartphone-based tools. Operators are also improving business continuity planning, including backup operational centres and enhanced disaster training for franchisees.

 

The Japan Times