THE HOT STORY

Pilots' union blocks carrier's bid to get U.S. residency for foreign hires

The pilots' union at Allegiant Air is blocking the carrier's bid to secure U.S. residency for dozens of foreign pilots from Chile, Australia and Singapore. The union's refusal to certify to the U.S. Department of Labor that the pilot positions, which start at about $50,000 a year, or about half of what pilots at other regional airlines earn, meet "prevailing wage" standards has left their immigration status undecided. Teamsters Local 2118 says Allegiant should offer industry-standard compensation and improvements to scheduling to retain pilots who are leaving for rivals, rather than hire pilots from overseas.

Reuters

TECHNOLOGY

Amazon employees raise AI concerns

Over 1,000 Amazon employees have expressed concerns about the company's rapid adoption of energy-hungry artificial intelligence amid rising global temperatures and political instability. In a letter to CEO Andy Jassy, they highlighted the pressure to use unnecessary tools and said Amazon is cutting jobs while directing money into AI. Amazon countered the claims, asserting its commitment to sustainability through investments in renewable energy. The letter also warned against the potential misuse of AI for surveillance and called for a public plan for renewable energy in data centers.

Yahoo News Australia

KPMG redefines performance with AI metrics

KPMG has introduced a new performance review system that evaluates staff based on their use of artificial intelligence tools. The change reflects a significant shift in how professional services firms assess value and performance. A July study from MIT revealed that 95% of AI initiatives fail to impact the bottom line, making it imperative for firms to focus on human capital and skills. KPMG's leadership emphasises that all employees must integrate AI into their work, signalling a cultural shift towards technology-driven value creation.

Bloomberg Law

LEGAL

Virtu Financial to pay $2.5m fine after SEC allegations

Virtu Financial has agreed to pay a $2.5m fine to settle allegations by the Securities and Exchange Commission (SEC) that it improperly granted access to confidential client trading data to nearly all employees at its broker-dealer unit, Virtu Americas. The SEC's complaint highlighted that during the period from January 2018 to April 2019, employees accessed sensitive customer information using a widely shared username and password system, despite assurances to clients about the use of "information barriers." Although Virtu did not admit or deny wrongdoing, it had previously informed the SEC in 2019 about potential access issues during the integration of an acquired business into its database.

Reuters

TAX

New Washington state tax proposal targets big employers

State lawmakers in Olympia, Washington, have introduced a new revenue proposal that imposes a 5% payroll excise tax on wages exceeding $125,000, targeting the state's largest employers. This measure, if enacted, would signify a significant change in the state's revenue system, which has traditionally avoided a personal income tax. The proposal, led by Rep. Shaun Scott and Sen. Rebecca Saldaña, aims to generate approximately $3bn annually, with funds allocated to the general fund and a new “Well Washington Fund” for essential services. Scott defended the proposal, saying:“If these megacorporations were as enthusiastic about paying their taxes as they were about paying to avoid them, there are millions of Washingtonians who would not have to worry about how to pay for higher education, for health care and housing in our state.”

CPA Practice Advisor

CORPORATE

Trump says Netflix-Warner Bros deal 'could be a problem'

U.S. President Donald Trump has said that he would have a say whether a proposed $82.7bn merger between Netflix and Warner Brothers should proceed. "I'll be involved in that decision," Trump told reporters. Trump did not say whether he favored the deal's approval, but indicated a potential concentration of market power in the entertainment industry. At an event in Washington DC, Trump said Netflix has a "big market share" and the firms' combined size "could be a problem." Bloomberg reports that Netflix co-CEO Ted Sarandos met with Trump at the White House in mid-November to discuss the potential acquisition. Trump reportedly told Sarandos that Warner Bros. should sell to the highest bidder, and Sarandos argued that Netflix's acquisition of the company would not create a monopoly. Paramount, which triggered the auction of Warner Bros., may launch a hostile bid, Bloomberg notes.

ECONOMY

Core U.S. inflation eases to 2.8% in September

U.S. core inflation rose 2.8% in September, slightly below expectations, according to delayed data from the Commerce Department’s Bureau of Economic Analysis. The core personal consumption expenditures (PCE) index rose 0.2% month-on-month, while headline PCE climbed 0.3%, also reaching 2.8% annually. The data, postponed due to a government shutdown, reinforces expectations of a Federal Reserve rate cut announcement on Wednesday, with personal income up 0.4% and consumer spending up 0.3% for the month.

CNN

Bloomberg

CNBC

INTERNATIONAL

Amazon pays €180m to settle Italian tax and labor investigation

Amazon has paid €180m ($210m) to Italian authorities and ended the use of a delivery staff monitoring system, closing a probe into alleged tax fraud and labor violations by its logistics unit. The investigation centred on the use of subcontractors to sidestep VAT and social security obligations. Amazon joins over 30 companies that have collectively paid more than €1bn to resolve similar cases.

Bloomberg Tax

Reuters

Brazilian judge orders JBS poultry unit to be added to slavery list

A Brazilian federal labor judge has ordered the addition of JBS's poultry unit to a "dirty list" of employers linked to slavery-like conditions, following a federal raid that uncovered ten workers in exploitative circumstances at a contractor's facility. Investigations revealed that employees were subjected to excessively long shifts of up to 16 hours, insufficient living conditions, and unlawful wage deductions. Despite the government's Labour Minister initially blocking this listing, the judge deemed the intervention unlawful and highlighted the importance of the list in tackling modern slavery in Brazil.

Reuters

Thyssenkrupp restructuring deal will cost several hundred million euros

Marie Jaroni, Thyssenkrupp's steel division chief, has told the Frankfurter Allgemeine Zeitung newspaper that a restructuring deal that will cut or outsource about 11,000 jobs will cost the company several hundred million euros. "The restructuring is costing us a mid-three-figure million euro sum. The exact amount depends on how many employees accept which offer," Jaroni told FAZ. She said the deal will pay off because the company will have permanently lower personnel costs - "a low three-digit million amount less annually than today."

Reuters

OTHER

FDA to curtail use of primate testing in drug trials

The Food and Drug Administration is to stop requiring pharmaceutical companies to use lab monkeys for some safety studies, in what the Financial Times says is "a significant cost-savings victory for the industry."

Financial Times

Reuters

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