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The Federal Reserve is expected to lower interest rates again on Wednesday, despite limited economic data due to a government shutdown. The shutdown has delayed the release of critical economic indicators, complicating the Fed's decision-making process. Today's expected move comes as the central bank navigates a complex economic landscape under the Trump administration, with the lack of comprehensive data adding uncertainty to it policy path. “The lack of official government sector data is a big impediment to having a clear take on where the economy is,” observed Seth Carpenter, a former Fed economist who is now at Morgan Stanley. 

 

The New York Times

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A Reuters tally illustrates how companies worldwide, including Amazon, Target and Nestle, have ramped up job cuts, as they rein in spending amid dimming consumer sentiment and as AI-focused tech companies start to replace roles with automation. Cuts like those at Amazon "tell me the economy is slowing down, not getting stronger. You don't have mass layoffs when the economy is strong," said Adam Sarhan, chief executive of 50 Park Investments in New York.

 

Reuters

Real income growth has slowed to near-decade lows, with young people being hit the hardest, according to a report from JPMorgan Chase Institute. George Eckerd, research director at the institute and a co-author of the report, told the Financial Times: “We’re looking at a level of year-on-year growth that’s actually similar to [the 2010s] when the labor market was a lot weaker and the unemployment rate was higher.”

 

Axios

Financial Times

Goldman Sachs CEO David Solomon anticipates a significant increase in M&A and IPO activity. Speaking at the Future Investment Initiative (FII) conference in Saudi Arabia, Solomon highlighted improving economic conditions and investor sentiment as key drivers for the expected acceleration. The conference, attended by high-profile figures including Saudi Crown Prince Mohammed bin Salman, BlackRock's Larry Fink, and JPMorgan's Jamie Dimon, serves as a platform for discussing global economic trends. The outlook aligns with broader market expectations under the Trump administration, which has been focusing on economic growth and deregulation.

 

Bloomberg

Executives at the ninth Edition of the Future Investment Initiative (FII) in Riyadh, Saudi Arabia, say there are signs of lending standards weakening in the market for private lending to large companies - although fears of a risky bubble emerging in the private credit market are overblown. "The risk is when you have too much leverage and not enough liquidity you tend to have problems and I don't see us having that right now even in private credit," Anne Walsh, chief investment officer at Guggenheim Partners told attendees at the annual flagship finance conference.

 

Reuters

HSBC's chief financial officer, Pam Kaur, has raised concerns about potential risks from hedge funds and smaller banks facing private credit losses. Kaur said: "The thing that worries me most is the second and third order risks from counterparties that might be affected." HSBC made a $1bn provision for expected credit losses, with a focus on U.K. and Hong Kong exposures. The bank downplayed its direct exposure to shadow banking, saying it was in the "low single-digit billions" of dollars, which it notes is small compared to its rivals.

 

Financial Times

The Times

Nvidia has partnered with Palantir to leverage its chips and software to enhance decision-making in corporate logistics, enabling clients to better manage complex supply chain challenges. Under the new agreement, Nvidia's technology will help companies optimize shipping routes and make real-time decisions based on product costs and demand, with Palantir's platform streamlining data from various corporate systems. Kevin Kawasaki from Palantir emphasised that "AI systems can struggle to understand vast streams of corporate data," and that their collaboration aims to ensure AI-powered insights are grounded in current business conditions, facilitating faster decision-making.

 

Reuters

OpenAI has transitioned from a non-profit to a for-profit corporation, in a restructuring which allows the ChatGPT maker to raise capital more easily. OpenAI has also announced a reorganization of its ownership structure, having signed a new agreement with Microsoft which gives the software firm a stake of around 27% in the new for-profit corporation. OpenAI said it completed its restructuring "after nearly a year of engaging in constructive dialogue" with state officials in Delaware, where the firm is incorporated, and California, where it is headquartered. Bret Taylor, the chair of OpenAI's board of directors, said the firm has "completed its recapitalization, simplifying its corporate structure."

 

The Guardian

Toyota has clarified that it did not explicitly commit to a $10bn investment in the United States, despite President Trump's mention of such a figure during his visit to Japan. Senior executive Hiroyuki Ueda stated that while Toyota will maintain its investment and job creation in the U.S., "we didn’t specifically say that we’ll invest $10bn over the next few years." This clarification comes amid discussions with the Japanese government and U.S. Embassy, where the investment figure may have been referenced in a broader context without any concrete promise.

 

Reuters

The 4th U.S. Circuit Court of Appeals has overturned a landmark decision in West Virginia that had rejected attempts by a region to be compensated by U.S. drug distributors for a local influx of prescription pain pills. The court in Richmond ruled that a lower court judge had erred when he said the state’s public nuisance law did not apply to the lawsuit involving the distribution of opioids. “West Virginia law permits abatement of a public nuisance to include a requirement that a defendant pay money to fund efforts to eliminate the resulting harm to the public,” the 4th Circuit wrote. “West Virginia has long characterized abatement as an equitable remedy.”

 

The Baltimore Sun

Mondelez has emerged victorious in a proposed greenwashing lawsuit over a claim about its Clif Bar. U.S. District Judge Manish Shah in Chicago dismissed the class action lawsuit accusing the company of deceiving consumers into overpaying for products that were labeled "climate neutral certified." Shah said he found nothing wrong with labels for Clif Kid Zbar and Zbar Protein that reflected a certification from the Change Climate Project nonprofit.

 

Reuters

Four of the largest and most profitable law firms - Kirkland & Ellis, Paul Weiss, Davis Polk, and Paul Hastings - have increased their litigation headcount by at least 22% since the beginning of last year. Bloomberg Law observes that the numbers build on industry reports which show that litigation, not M&A or other deals work, is the most powerful source of demand growth for firms since at least 2023.

 

Bloomberg Law

Boyu Capital is now the leading candidate to acquire a controlling stake in Starbucks' China operations, potentially valuing the business at over $4bn, according to Bloomberg. Carlyle Group has exited the bidding, narrowing the field to five contenders, including HongShan Group, FountainVest, and Primavera Capital Group. Starbucks aims to maintain a minority stake. “We’ve had very strong interest from multiple, high-quality partners,” a Starbucks spokesperson told Reuters. CEO Brian Niccol recently said the business could be valued at more than $10bn when including other assets like future royalties.

 

Bloomberg

The FASB has proposed a series of changes to the GAAP, addressing 34 specific issues. The proposal is open for public comment, inviting feedback from accounting professionals and stakeholders. This initiative aims to enhance clarity and consistency in financial reporting. For accountants and auditors, these changes could mean adjustments in financial statement preparation and audit processes. Corporate finance departments may need to reassess compliance strategies and financial disclosures. Engaging with the proposal during the comment period is crucial for professionals to influence the final standards and ensure practical implementation.

 

Journal of Accountancy

According to U.S. News & World Report, the job of an accountant ranks 90th out of 100 in its 2025 best jobs list. The ranking considers factors such as growth potential, work-life balance, job safety, employment rate, and salary. Accountants earn a median salary of $79,880, with an unemployment rate of 1.4% and approximately 91,400 job openings projected. Patty Pogemiller, managing director at Deloitte, emphasized the importance of problem-solving skills in the profession, observing: “Employers are looking for people who demonstrate an ability to think analytically.” The Bureau of Labor Statistics anticipates a 5.8% growth in employment for accountants from 2023 to 2033. Despite its lower ranking, the profession remains vital, with accountants also placing 11th in the “Best Business Jobs” category.

 

CPA Practice Advisor