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Apple has filed a lawsuit against the European Commission after being fined €500m for violating the Digital Markets Act. The company argues that the Commission's decision "go far beyond what the law requires," claiming it mandates how Apple operates its App Store, which could confuse developers and harm users. Apple has recently revised its App Store rules to comply with EU regulations to avoid daily fines of 5% of its average daily worldwide revenue, approximately €50m. The EU is currently seeking feedback from app developers regarding these changes. In a related matter, Apple was previously ordered to pay Ireland €13bn in unpaid taxes after a lengthy dispute. 

 

The Times

The International Chamber of Commerce (ICC) has urged the UK to reform trade finance regulations to unlock £22bn for small and medium-sized enterprises (SMEs). In a letter to Financial Conduct Authority chief Nikhil Rathi, ICC UK's secretary-general Chris Southworth highlighted the "bureaucratic and inefficient" regulatory structure that burdens SMEs with excessive compliance checks. He noted that the Electronic Trade Documents Act (ETDA) 2023 has significantly improved transaction times and reduced costs, yet the benefits are undermined by outdated regulations. Southworth called for quicker implementation of Basel III reforms, stating that the current timeline "fails to reflect what businesses are doing in the real world". He stressed the need for "more proportionate, lighter touch" regulations, particularly regarding know your customer processes, to help close the £22bn trade finance gap and position the UK as a leader in digital trade finance.

 

Financial Times

Daily Mail

In the past year, major UK banks, including Lloyds and Barclays, have incurred significant costs, paying a combined £38.8m in administrative fees to the Financial Ombudsman Service (FOS). Lloyds led the way with £12.6m, while Barclays followed closely with nearly £9m. The surge in complaints, particularly related to motor finance, has reached levels not seen since the PPI scandal, with complaints rising by nearly 500% to over 70,000. City minister Emma Reynolds has indicated potential reforms for the FOS, stating that a review could lead to a reduction in its powers. The FOS has also revised its fee structure, introducing charges for cases beyond the first ten complaints per financial year. As UK Finance warns of disproportionate penalties for banks, the sector braces for further scrutiny and potential regulatory changes.

 

City AM

Regulators have yet to grant Revolut permission to offer credit cards and other services in the UK despite an application for a consumer credit licence being made last year. Meanwhile, Revolut is set to launch a stocks and shares Isa and offer investors a crop of UK-listed ETFs to make it easier for customers to invest.

 

Financial Times

Daily Mail

The I

The UK Government has announced a new plan that could impose fines on supermarkets failing to meet healthy food sales targets as part of its strategy to combat obesity. A YouGov poll revealed that 52% of Britons oppose this initiative, with significant opposition from Conservative and Reform voters. The "healthy food standard," developed by Nesta, aims to improve the health score of shopping baskets from 67 to 69, potentially reducing obesity by 20% over three years. Health Secretary Wes Streeting commented: "If everyone who is overweight reduced their calorie intake by around 200 calories a day obesity would be halved." The Government plans to implement mandatory reporting by 2029, with support from major retailers like Tesco and Sainsbury's.

 

The I

The Independent UK

The UK Government is set to amend the Employment Rights Bill to prohibit the use of non-disclosure agreements (NDAs) that silence employees who have experienced harassment or discrimination. Angela Rayner, the Deputy Prime Minister, said: "Victims and witnesses of harassment and discrimination should never be silenced." The legislation aims to empower workers, allowing them to speak freely about their experiences without fear of legal repercussions. The changes will not affect NDAs used for legitimate commercial purposes but will create one of the most robust protection regimes globally. A report by the Chartered Institute of Personnel and Development revealed that 22% of employers use NDAs for sexual harassment cases.

 

The Times

London Evening Standard

The Guardian

Chris Hayward, policy chair of the City of London Corporation, writes in City AM on the urgent need to address the widespread issue of fraud, which constitutes over 40% of all offences in the UK. In the National Security Strategy, economic security is identified as a vital component of national security. The City of London Police plays a crucial role in combating economic crime, training investigators and supporting victims through the National Economic Crime Victim Care Unit. The City Corporation is also set to release a report proposing a Financial Services Investment Hub, aiming to unlock £10bn in additional investment by 2030. Hayward says: "Fraud threatens the fundamental workings of the economy," pointing to the need for a collective response across various sectors to tackle this growing threat.

 

City AM

The first part of Sir Wyn Williams’ final report on the Post Office IT scandal will be released Tuesday, focusing on victim compensation and the scandal's human toll. Over 900 sub-postmasters were wrongly prosecuted due to faults in the Horizon system. Sir Wyn emphasized, “It’s something I am very keen to say as much about as I reasonably can,” signaling urgency on redress. He previously described compensation schemes as a “patchwork quilt with a few holes in it.” However, accountability won’t be addressed until part two, expected in 2026.

 

BBC News

The recent sell-off in UK government bonds has raised concerns about the stability of the gilt market, prompting the Bank of England to reconsider its current pace of gilt sales. Sonali Punhani, UK economist at Bank of America, said: "At a time when the Bank is trying to ease monetary conditions by cutting rates, quantitative tightening (QT) could be diluting the pass-through of cuts by tightening monetary conditions." The current bond sales are set at £100bn annually, with a potential reduction to £80bn from October. Andrew Bailey, Governor of the Bank of England, indicated that discussions on the continuation of QT would take place, but denied that QT was causing the steepening of the yield curve.

 

The Times

Charlie Nunn, the chief executive of Lloyds Banking Group, has voiced concerns over Labour’s plan to mandate pension funds to invest in British assets, comparing it to policies in communist China. The Government’s proposed pension reform includes the establishment of megafunds, each investing over £25bn, aimed at reducing fees for pension holders. However, Nunn cautioned that "mandating allocations of pension funds is a form of capital control" which could hinder funds from fulfilling their legal duties to secure the best returns for pensioners. Nunn’s comments come after Louis Taylor, chief executive of the British Business Bank, encouraged pension funds to explore the "goldmine of opportunity" in private UK firms, suggesting that increased investment would render the need for mandating moot.

 

Financial Times

The Daily Telegraph

The Independent UK

Private equity firms, including Blackstone, KKR, and CVC Capital Partners, are currently grappling with a significant challenge as they hold unsold companies valued at approximately $3.6trn, according to Bain & Company. The rise in interest rates and a slowdown in the deals market post-Russia's invasion of Ukraine have hindered their ability to offload investments. Marc Rowan, CEO of Apollo Global Management, points to the shift towards providing "long-term capital" to companies. This change has led private equity managers to adopt a more patient approach, focusing on improving operations rather than quick sales.

 

The Times

The Times reports that British shipping insurers West of England P&I and UK P&I Club unknowingly provided coverage to tankers exporting Iranian oil and petrochemicals, activities in violation of US sanctions. One vessel, Seafaith, was listed in a 2023 bipartisan US Senate letter calling for investigations. Neither insurer violated sanctions directly; their policies exclude coverage for illegal activities. However, they face compliance difficulties due to conflicting US and UK laws. “These regulations cause compliance headaches,” said lawyer Christopher Lock. US officials expect insurers to monitor suspicious behavior, but enforcement gaps remain as vessels use tactics like transponder shutdowns to avoid detection.

 

The Times

Qantas has confirmed a significant cyber-attack that has potentially exposed the personal records of up to 6m customers. A spokesperson stated, "A potential cyber-criminal has made contact and we are currently working to validate this." The airline has engaged the Australian Federal Police (AFP) to assist in the investigation, although it has not confirmed whether a ransom is being demanded. The breach, which occurred on 2 July, involved a third-party system linked to a call centre, allowing access to customer names, email addresses, phone numbers, and birth dates. Fortunately, no credit card details or sensitive financial information were compromised.

 

The Guardian

Joseph Stiglitz has declared the planned global minimum tax on multinational profits "probably dead in the water." After years of advocacy by Stiglitz, the OECD, and the Tax Justice Network, the initiative aimed to curb profit shifting to low-tax havens. However, the second Trump administration's opposition has derailed progress, labelling the tax regime as unfair and threatening "revenge taxes" on nations that comply. While most countries have retreated in the face of these threats, Spain is urging the European Union to resist. Stiglitz argues that the EU's economic strength could enable it to stand firm, cautioning that "if [Trump] gets what he wants, he always comes back for more." Despite the potential for resistance, he doubts the necessary political will exists within Europe.

 

The Observer

IPO fundraising in London has plummeted to a 30-year low, with only £160m raised from five listings in the first half of the year, the lowest since 1995, according to Dealogic data. The decline has prompted several firms to consider relocating their primary listings to New York, including fintech firm Wise and pharma giant AstraZeneca. Jonathan Parry, a partner at White & Case, noted: "The recent muted IPO activity has been a global phenomenon impacted by geopolitical factors and macroeconomic volatility." However, he expressed hope for a turnaround, citing recent IPO announcements from tech firm Visma and Greek company Metlen Energy & Metals, and the ongoing reforms by the London Stock Exchange and FCA aimed at revitalising the market. Parry believes these changes could lead to a new IPO cycle, stating: "London remains both Europe's preeminent financial centre and its largest listing venue."

 

Financial Times

City AM

Clarks has announced the layoff of over 1,200 employees due to "challenging market conditions" following a significant decline in sales. The 200-year-old shoe retailer's revenue dropped from £994.5m in 2023 to £901.3m, resulting in pre-tax losses of £39.2m for the second consecutive year. The company's headcount decreased from 7,413 to 6,161 during the period. The firm aims to restructure its operations to ensure sustainable growth in 2025.

 

Metro

BP has appointed former Shell CFO Simon Henry to its board, continuing a push to reinforce leadership with oil industry veterans as it shifts focus back to fossil fuel production. This comes amid pressure from activist investor Elliott Management to boost valuation. Henry’s appointment follows that of David Hager, a seasoned oil executive, in May. Henry will exit his board roles at Rio Tinto and Harbour Energy later this year. The hires are seen as strategic moves to realign BP’s direction and respond to investor demands.

 

Financial Times

The Times

Scotland is rapidly emerging as a prime destination for digital nomads, thanks to its appealing cost of living and high quality of life. Currently, 22% of working professionals in Scotland are fully remote, while 39% engage in hybrid roles. The cost of living in Edinburgh is 28.1% lower than in London and 46% lower than in New York, making it an attractive option for remote workers. Local employers are increasingly supportive of flexible working arrangements, with 28% allowing staff to choose their remote work days. The UK government's Project Gigabit aims to enhance broadband access in rural areas, further supporting remote work. Additionally, 28 Scottish businesses have adopted a four-day working week, promoting a modern approach to productivity.

 

The Scotsman