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Recent Editions
North America
Human Times
The U.S. Department of Education's efforts to cancel student debt for millions may face a significant setback with Donald Trump's election. The President-elect has labeled these initiatives as "vile" and "not even legal," indicating a likely cessation of support for the Biden administration's loan forgiveness programs. With outstanding education debt exceeding $1.6tn, nearly 43m Americans are affected. The Biden administration has forgiven over $175bn in student loans, but experts warn that this relief may end under Trump, who previously proposed eliminating programs like Public Service Loan Forgiveness. Mike Pierce, executive director of the Student Borrower Protection Center, emphasized the potential financial instability for millions, saying: "The threat posed by these plans is real and will imperil the financial stability of millions of working families."
Full IssueUK
Human Times
EDF Energy is investigating allegations that a supplier, Alten, is employing foreign workers at significantly lower wages than British engineers on the Hinkley Point C and Sizewell C nuclear power projects. Engineers have started industrial action after claiming they are being paid unfairly. They say they have not received a pay rise in four years and have discovered that foreign colleagues from countries like India and Nigeria are earning less than £30,000, while British workers earn between £50,000 and £75,000. A source said: "It is being done to drive down costs and the internal market rate for these roles." EDF emphasised its commitment to fair treatment, saying: "We expect all workers to be treated fairly and consistently." Alten has denied the allegations, asserting that it maintains high standards in its HR policies.
Full IssueUSA
Education Slice
Massachusetts has made a significant change in its educational landscape by eliminating the exit exam requirement for high school graduation. This decision follows a trend among several states, including Oregon and New York, to move away from high-stakes testing. Tom Dee, a professor of education at Stanford University, noted that the pandemic accelerated this shift, emphasizing the need for tracking data and finding aligned solutions. Jackie Kraemer, director of policy analysis at the National Center on Education and the Economy, stated: “People will be looking to the state to see how they shape a next generation of assessments.” While the Massachusetts Teachers Association argues that the MCAS exam has been a barrier for students, advocates for the test believe it ensures equitable educational opportunities. The future of graduation requirements remains uncertain, with discussions on alternative assessments ongoing.
Full IssueUSA
Accountancy Slice
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, has indicated that tax policy may not be a top priority for the incoming presidential administration. Speaking on Monday at the 2024 AICPA & CIMA National Tax Conference, she said: "Tax policy is not nearly as central to the agenda as I would have thought it would be [...] It's going to be a huge issue, but it's wrapped up in a whole lot of other things, which is how to spur economic growth" through deregulation and energy policy. MacGuineas noted that President-elect Donald Trump's proposals could add $7.75tn to the national debt over the next decade, primarily from extending the Tax Cuts and Jobs Act. However, Trump's campaign proposals, including eliminating taxes on income sources like tips and Social Security, may conflict with traditional tax policies. She emphasized that addressing the national debt requires "raise taxes and cut spending." As of September 2023, the national debt stood at $33tn.
Full IssueScotland
Legal Matters Scotland
On Bonfire Night and Halloween, large groups of youths in Edinburgh attacked emergency service workers and bus drivers with fireworks, bricks, and bottles. Edinburgh Council leader Cammy Day condemned the “deplorable” violence, stating it was the worst disorder the police had ever witnessed. In response, he has requested that court cases for those arrested be fast-tracked. Over the week, 19 arrests were made, with six individuals charged under the Fireworks and Pyrotechnic Articles Act. Day highlighted the impact on public transport, noting that 10,000 bus journeys were disrupted. He emphasised the need for community support to combat this growing antisocial behaviour, stating: “It can't be the new norm in Edinburgh that come the end of October we accept that public servants are attacked doing their job.” Scottish Secretary Ian Murray also condemned the violence, calling for a ban on fireworks sales to prevent future chaos.
Full IssueNorth America
Legal Slice
Herbert Smith Freehills (HSF) is merging with U.S. law firm Kramer Levin to form a £1.6bn ($2bn) global legal powerhouse. HSF, established in 2012, has a strong focus on Asia, Australia, EMEA, and the U.K., while Kramer Levin operates from New York and has offices in Silicon Valley, Washington, D.C., and Paris. HSF's turnover increased by over 10% to £1.3bn ($1.3bn), with profits rising 14.5% to £444.5m ($6m). The new firm, named Herbert Smith Freehills Kramer, will employ over 2,700 lawyers, including around 640 partners, and aims to enhance its presence in the U.S. Rebecca Maslen-Stannage, chairwoman and senior partner of Herbert Smith Freehills, said: "This is transformational. We have long been committed to expanding our offering in the U.S. and Kramer Levin is the perfect fit." Howard Spilko, co-managing partner of Kramer Levin, said: "Joining forces with Herbert Smith Freehills is a one-of-a-kind opportunity that helps us achieve our vision and potential for strategic growth."
Full IssueEurope
Risk Channel
The Treasury is poised to initiate the search for new chief executives for the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) as speculation mounts that Nikhil Rathi will not seek a second term at the FCA. Rathi's tenure has been marked by tensions with the government, particularly regarding enforcement and economic growth. Meanwhile, Sam Woods, the PRA's chief, is set to step down by mid-2026. Chancellor Rachel Reeves is expected to announce changes to the regulators' remits, with the aim of enhancing Britain's competitiveness. However, this move may face criticism over potential risks to the financial system's safety. A Treasury spokesperson confirmed that the recruitment process for new leaders will be outlined in due course, saying: "The current CEO of the Financial Conduct Authority has a term running until 30 September 2025." The potential vacancies are already generating speculation in the City about possible successors.
Full IssueNorth America
CFO Slice
The Federal Reserve's recent interest rate cuts are presenting chief financial officers with the opportunity to borrow money on more favorable terms for priorities like expansion or acquisitions. Last week's 0.25% interest rate cut came after a larger 0.5% cut in September. "The market definitely feels like there are more rate cuts to come," said UHY audit partner Ro Sokhi. "The last few years we saw the use of private capital, used to finance different transactions, but that's expensive. There's a lot of excitement these days that the Fed is lowering the borrowing rate, and CFOs can reenter the traditional funding market," particularly in the life science, retail, and technology sectors. "It's never certain as to what direction the interest rates will definitely go and whether companies can absolutely take advantage of the capital once the money comes in," he added. "But in the near term we're continuing to see companies finding alternative ways to free up capital, either through cost reductions or working capital programs, and then divesting of non core assets, brands and things like that. What we're seeing is a combination of using capital that's available, as well as using the newfound lower interest rates."
Full Issue