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The European Commission has unveiled its so-called “AI Continent Action Plan,” which aims to “transform Europe’s strong traditional industries and its exceptional talent pool into powerful engines of AI innovation and acceleration.” The EU has faced criticisms from tech leaders that its regulations on everything from AI to taxation hinder innovation and make it more difficult for start-ups to operate across the region. The bloc will also create a new AI Act Service Desk to help regional firms comply with its landmark AI law. “The AI Act raises citizens’ trust in technology and provides investors and entrepreneurs with the legal certainty they need to scale up and deploy AI throughout Europe,” the Commission said, adding the AI Act Service Desk will “serve as the central point of contact and hub for information and guidance” on the rules.

 

European Commission

CNBC

Politico

How to Navigate the EU AI Act

The EU AI Act represents a significant milestone in the global effort to regulate artificial intelligence, addressing increasing concerns about the ethical, social, and legal implications of AI technologies. Join Sean Kelly, Managing Director, Global Secure AI Lead at Accenture, Sunil Soares, Founder and CEO at Your Data Connect, and Charles Calovich, Channel Business Development Manager at Hyperproof, as they discuss how to navigate the new regulation and what it means for our future.

Watch now

 

Ahead of the launch of the Private Intermittent Securities and Capital Exchange System (PISCES), bankers have expressed concern about potential revenue losses and the platform's impact on liquidity. Designed to facilitate temporary public trading for private companies, PISCES aims to connect investors with unlisted firms. The platform's lighter disclosure requirements and the absence of traditional market abuse rules have raised alarms about investor protection. While some see PISCES as a stepping stone to full listings, others fear it may deter companies from pursuing IPOs, ultimately challenging the traditional banking model. Rishi Khosla, CEO of OakNorth Bank, said: "Without the liquidity, it becomes a vulnerable place for a business to be." Bankers have also cited concern over lost revenues and being bypassed in the market for private capital. 

 

Reuters

The Bank of England has raised the alarm regarding the potential risks posed by increasingly autonomous AI programs in the financial sector. According to the Financial Policy Committee (FPC), such systems could manipulate markets and create crises to enhance profits for banks and traders. The FPC noted that such models might "identify and exploit weaknesses" in trading firms, leading to significant market volatility. The report also highlights concerns that as financial companies increasingly adopt AI for investment strategies and decision-making, vulnerabilities such as "data poisoning" and reliance on common AI providers could exacerbate risks across the sector.

 

The Guardian

Marcus Bokkerink, former chair of the UK's Competition and Markets Authority (CMA), has warned the government against political interventions that undermine the regulator. Bokkerink, who was replaced at the competition watchdog amid a government drive for regulators to prioritise economic growth, said: "Recent interventions and steers undermine the CMA’s ability to promote competition to the status quo." He has called for the CMA to be given more powers to protect consumers and for the government to take a bigger role in decision-making in areas "where there is a natural monopoly." He also argues that ministers should bring more effective competition into public procurement; make competition policy more predictable through structural reform; and "level the tax and regulatory playing field" between different businesses competing in the same market.

 

The Times

Rabobank has failed to settle with prosecutors regarding allegations of its inadequate measures to prevent money laundering. The Dutch lender, which has been under investigation since December 2022 for suspected violations of national money laundering laws, is now facing court proceedings. Prosecutors say the bank did not properly vet its customers or reported suspicious transactions over several years. Competitors like ING and ABN Amro have faced significant fines for similar issues.

 

Dutch News

Reuters

Germany-based agrochemical giant Bayer has called on the US Supreme Court to decide whether federal law preempts thousands of state lawsuits alleging the company failed to warn people that its commonly used Roundup weedkiller could cause cancer. Bayer says the Supreme Court should intervene because lower courts have issued conflicting rulings. The 3rd U.S. Circuit Court of Appeals ruled in Bayer's favour last year; the 9th and 11th Circuits have ruled against its stance. 

 

U.S. News

Kensington and Chelsea Council is suing companies involved in the refurbishment of Grenfell Tower for £360m, including Arconic Architectural Products, Artelia Projects UK, Celotex, CEP Architectural Facades, Harley Facades and Rydon Maintenance.

 

Financial Times

Sarah Sackman KC, the Courts Minister, has highlighted the dire state of London's county courts, saying there is a "huge room for improvement." Chronic delays and backlogs are affecting the economy, with complex cases taking over two years to resolve and simpler claims taking 67 weeks. Ms Sackman acknowledged that the performance of civil courts directly impacts economic productivity, saying: "People who are stuck in the county courts are not doing other productive things in the economy." The government is planning further digitalisation and measures to alleviate delays, including relocating cases and recruiting more judges. The Justice Select Committee is currently investigating these issues, with a report expected later this year.

 

The Standard

Rachel Reeves says it is "imperative" for the UK to improve its trading relationship with the EU. Her comments come as new US import tariffs prompt concern over a global trade war. The Chancellor said that while it has been harder for British firms to export around Europe since Brexit, with many feeling "shut out" of European markets, "I feel that in the current environment, there is a greater willingness from countries around the world to look at both tariff and non-tariff barriers that are holding back trade." Reeves said the UK-EU summit in May will be a chance "to refresh our relationship and make it easier for businesses to trade."

 

Financial Times

The Guardian

UK employers have reduced hiring to the lowest level since the pandemic, with only 20% of firms increasing their workforce in the first quarter of the year, according to the British Chambers of Commerce (BCC). The rise in employer National Insurance contributions, from 13.8% to 15%, has raised concerns about potential job losses and increased costs for businesses. Jane Gratton, BCC deputy director of public policy, said: "Firms are struggling under the weight of skills shortages, recruitment difficulties and spiralling employment costs." The survey also revealed that 17% of firms have reduced their teams, with major companies like Sainsbury's and Tesco already making cuts.

 

Daily Mail

Fraud continues to plague the UK, accounting for approximately 40% of all crime, with an estimated 3.2m offences annually costing £6.8bn. A report from the cross-party Treasury Select Committee in 2022 highlighted that "economic crime is a major and rapidly growing problem in the UK," and called for increased funding and a dedicated body to combat it. In response, a public-private partnership between the City of London Police and Gowling WLG aims to assist fraud victims in recovering lost funds. Brid Holden, a solicitor at Gowling, expressed hope that this collaboration will "change the landscape and encourage more victims to report fraud." The initiative follows a successful pilot that helped an elderly victim recover over £2m lost to a cryptocurrency scam.

 

The Times

UK firms overpaid more than £14bn in corporation tax in the last tax year, according to analysis by UHY Hacker Young. Data shows that British businesses overpaid £14.2bn in corporation tax to HMRC in the year to April, with around 400,000 companies handing over too much. The report suggests that HMRC leads firms to higher than necessary corporation tax, with businesses facing financial penalties if profit comes in lower than had been expected. UHY Hacker Young said the system can cause "significant cash flow problems," noting that companies have to reclaim excess payments themselves. An HMRC spokesperson said the claims are "nonsense and disappointing to see," and companies are responsible for assessing their own tax liability.

 

City AM

Moody's Ratings has released a report analysing the impact of recent market fluctuations on the solvency of European insurers. The report reveals that despite significant declines in global equity markets due to US tariffs, the solvency of European insurers has remained relatively stable. While market volatility has caused slight declines in solvency ratios, most insurers maintain adequate levels. The report also discusses broader economic impacts, including potential decreases in global trade volumes and the effects of interest rate changes.

 

Reinsurance news

The United States has withdrawn from negotiations in London aimed at advancing decarbonisation in the shipping sector, citing a rejection of economic measures based on greenhouse gas emissions. A diplomatic note stated: "The US rejects any and all efforts to impose economic measures against its ships based on GHG emissions or fuel choice." The discussions were part of the UN's International Maritime Organization (IMO) efforts to establish a carbon levy for shipping, which accounts for nearly 3% of global carbon dioxide emissions. The US warned of potential reciprocal measures against any fees imposed on its ships, urging other nations to reconsider their support for the proposed GHG emissions measures.

 

U.S. News