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Recent Editions
North America
Human Times
The number of Americans filing new claims for unemployment benefits held steady at a low level in the seven days to April 27th, the Labor Department reported Thursday, pointing to a still fairly tight labor market that should continue to underpin the economy in the second quarter. Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 208,000, below the 212,000 predicted by economists polled by Reuters. The four-week average of claims, which softens some of the weekly volatility, fell by 3,500 to 210,000, while the total number of claimants, reported with a one week lag, totaled 1.77m. The Labor Department also reported that U.S. productivity rose by an annual 0.3% rate in the first quarter, down from a revised 3.5% gain in the prior three-month period and below the 0.5% expected among economists surveyed by Bloomberg. Unit labor costs, or what a business pays employees to produce one unit of output after taking into account changes in productivity, climbed at a 4.7% annual rate. "Productivity growth wasn't strong enough to significantly mitigate the rise in wages last quarter," said Nationwide Financial Markets Economist Oren Klachkin. "The strong rise in unit labor costs is another in a string of recent data points indicating that inflation pressures remain relatively high."
Full IssueUK
Human Times
Trade unions have warned Labour not to dilute its package of workers' rights. Unite general secretary Sharon Graham said that crossing a red line would occur if the party does not fully commit to delivering its 'New Deal for Working People.' The plan, proposed by Angela Rayner in 2021, includes radical changes such as banning zero-hour contracts, ensuring regular hours for 12 weeks or more, and making flexible working a right from day one. Shadow ministers are discussing how to address concerns and are expected to seek union approval for the revised plan.
Full IssueUSA
Education Slice
The Louisiana Supreme Court recently ruled in favor of creating a new, predominantly white school district in the Baton Rouge area, a move that critics like East Baton Rouge Parish Public Schools board President Dadrius Lanus are calling a case of institutional racism. This decision paves the way for the affluent southeast quadrant of the parish, now known as St. George, to secede, potentially stripping the existing school district of 10,000 students and 25% of its $700m budget. This would mark the fifth time in nearly 25 years that a segment of the district has separated to form its own school system, raising concerns about the concentration of poverty in the majority-Black remaining district, where 90% of students are impoverished. The new city of St. George, which was approved by 54% of area voters in 2019, is expected to face significant educational and financial challenges, including decisions about building new schools or purchasing existing ones. The separation is anticipated to reallocate a considerable amount of local tax revenue to St. George, further depleting the resources of the East Baton Rouge district. This move has sparked widespread concern among parents about the future of their children's education, with many worried about the impacts on school funding and quality.
Full IssueUSA
Accountancy Slice
The IRS has released an update of its Strategic Operating Plan, outlining improvements in services and technology for taxpayers and tax professionals. The plan focuses on five key objectives and aims to accelerate progress made possible by funding from the Inflation Reduction Act. IRS Commissioner Danny Werfel highlighted the agency's achievements in improving taxpayer services and technology, emphasizing the goal of a completely digital experience for taxpayers. The report also details the IRS's priority efforts for tax professionals, including expanding the capabilities of the Tax Professional Online Account. However, the IRS faces funding challenges and the threat of budget cuts. The Biden administration's budget proposal aims to restore and maintain full funding for the IRS through 2034. The Treasury Department highlighted the positive impact of the extra funding, such as improved phone service and enhanced online tools. The IRS also strengthened enforcement against complex partnerships, large corporations, and wealthy individuals. The report concludes with the importance of stable funding for the IRS to continue its modernization efforts and provide quality taxpayer service.
Full IssueScotland
Legal Matters Scotland
Sex offenders and violent criminals in Scotland are at risk of perpetual prison sentences due to the lack of structured rehabilitation schemes. Lady Poole, a judge, warned MSPs that passing life-term legislation without providing adequate means for rehabilitation could breach human rights. The warning came after a convicted rapist, Ben Slee, brought a judicial review to the Court of Session, claiming that he had not been given access to a rehabilitation scheme. Lady Poole agreed with Slee's advocate that his human rights had been breached and stated that passing legislation without proper planning for prisoners' rehabilitation could lead to further human rights violations. The judge described Slee's crimes as "despicable" but emphasised that his inability to access the rehabilitation course compromised his ability to demonstrate reduced risk to the Parole Board.
Full IssueNorth America
Legal Slice
Two bills in Louisiana are seeking to regulate the litigation finance industry. One bill requires parties to disclose litigation finance agreements within 60 days after filing a civil action, while the second requires disclosure of litigation finance if a foreign entity is the source of funding. The bills aim to restrict the practice of investors paying for the cost of lawsuits in return for a share of the proceeds. The U.S. Chamber of Commerce supports the legislation, stating that the litigation finance industry encourages frivolous lawsuits. Last year, similar legislation was vetoed by the governor, but with a change in governors, lawmakers hope for a different outcome. Other states have also introduced legislation to regulate litigation finance. The bills have faced mixed results in state legislatures, with some states enacting laws to block foreign entities from funding lawsuits. The U.S. Chamber of Commerce warns of the risks of litigation finance, stating that it pressures businesses to settle even when claims lack merit. The Chamber supports the Louisiana bills, though it considers one of the proposals to be "under inclusive." The litigation finance industry has defenders in state houses, with some arguing that the Chamber is attempting to pass a bill in support of national regulation.
Full IssueEurope
Risk Channel
The CEO of the Financial Conduct Authority (FCA) has been summoned to appear in front of a House of Lords committee as a row over the regulator’s plans to “name and shame” financial services firms under investigation spirals. Nikhil Rathi has defended the plans, arguing that being more transparent about probes will serve as a deterrent. The City roundly condemned the move and the Chancellor also stepped in and urged the FCA to rethink its plans. Now, the Lords' Financial Services Regulation Committee has launched its own inquiry after Rathi failed to respond to a request to pause the implementation of the plans until after peers had properly scrutinised the proposal. Lord Forsyth of Drumlean, chair of the committee, said: “This isn't acceptable.” Meanwhile, a senior lawyer has made a rare call for the government to intervene and overrule the regulator. “This is but the tip of the iceberg,” said Harvey Knight, UK head of the financial services regulatory group at Withers. The FCA is “exceeding its statutory objectives in pursuit of what it considers to be its best interests without any balancing considerations,” he added. Finally, the Labour party said the FCA should listen to the City and ensure “an appropriate balance between enhancing the integrity of the sector while protecting the international competitiveness of the UK.”
Full Issue