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The European Banking Federation (EBF) has warned that Europe's economy is at risk of falling further behind other regions unless the European Union overhauls regulation that it said is undermining banks' ability to lend. "The regulatory and supervisory landscape has grown increasingly complex and fragmented," EBF President Slawomir Krupa wrote in a letter seen by Reuters. The current situation was "neither satisfactory, nor sustainable," observed Krupa, who is also the CEO of French lender Societe Generale.

 

Reuters

The Bank of England has highlighted the urgent need for enhanced regulation of the shadow banking sector, which Governor Andrew Bailey says poses potential risks to financial stability. Writing in The Banker magazine, Bailey says that regulators must not become complacent after improving traditional banks' resilience following the 2008 financial crisis. He noted that market-based finance, which includes activities by non-banking institutions, is growing rapidly and remains complex and opaque. A stress test of private markets is planned to assess potential risks.

 

The Times

Oil majors operating the Karachaganak field in Kazakhstan have lost an international arbitration case in London and are liable to pay compensation to the country's government. The arbitration ruling upheld the government's position that the companies recovered unapproved cost overruns and other expenses that should not have been recoverable through the field's production sharing agreement. The court has yet to determine the specific amount to be paid by the Karachaganak partners, who include Chevron, Lukoil PJSC and KazMunayGas National Co.; external legal advice suggests it could be between $2bn and $4bn.

 

Bloomberg

Former Opec president Diezani Alison-Madueke is on trial for corruption in London. Prosecutors allege she accepted bribes from oil executives during her tenure as Nigeria's oil minister from 2010 to 2015. These bribes funded a luxurious lifestyle, including chauffeur-driven cars and personal shopping at Harrods. Alexandra Healy KC, for the prosecution, said: "Those who benefited from oil contracts ensured that Alison-Madueke enjoyed a life of luxury." Alison-Madueke faces five counts of accepting bribes and one count of conspiracy to commit bribery, alongside co-defendants who deny all charges.

 

Financial Times

The Daily Telegraph

Coca-Cola Europacific Partners Great Britain has initiated legal proceedings against Vue Entertainment to recover alleged unpaid debts following the termination of their 25-year contract. Vue, which operates over 90 cinemas in the UK and Ireland, switched to PepsiCo as its exclusive supplier in 2025. Tim Richards, Vue's chief executive, commented: "One would have hoped that after 25 years, a simple phone call could have resolved a genuine dispute for such a small amount without the need for lawyers."

 

The Guardian

Senior UK politicians have urged the Competition and Markets Authority (CMA) to conduct a "full review" of Netflix's $83bn acquisition of Warner Bros' studios and streaming operations. In a letter to CMA chief executive Sarah Cardell, over a dozen politicians expressed concerns that the merger could significantly reduce competition, harming consumers and the UK's creative industries.

 

The Times

The UK's Financial Conduct Authority (FCA) has launched a review into the impact of artificial intelligence on retail financial services. Sheldon Mills, an outgoing FCA executive, will explore how AI could reshape markets and consumer behaviour. While AI may enhance financial management, Mills warned of potential risks, including biased decision-making and increased fraud. He said: "It could introduce new risks if decisions are increasingly delegated to AI agents." The FCA anticipates a future where AI agents handle payments and claims, underscoring the need for regulatory adaptation in a rapidly evolving landscape.

 

The Times

Tens of thousands of professionals are joining Silicon Valley start-up Mercor to train large language models to do the work in the particular sectors that they are qualified in.

 

Financial Times

Nestlé is proceeding with the sale of a stake in its €5bn water business, including brands like Perrier and S.Pellegrino, soliciting first-round bids this month. The company is collaborating with Rothschild & Co. and has attracted interest from private equity firms such as PAI Partners, Blackstone, KKR, Bain Capital, and Clayton Dubilier & Rice. Plans involve debt financing of €2bn to €3bn through leveraged loans.

 

Bloomberg

UBS Group is set to offer cryptocurrency investing options to certain private banking clients, marking a notable expansion into digital assets for the Swiss banking giant. With around $4.7trn in wealth assets under management as of September 30, the bank is currently evaluating potential partners for the initiative. While discussions have been taking place for several months, UBS has not yet finalised the specifics of the offering.

 

Bloomberg

Ukrainian chicken producer MHP is selling the country’s first corporate bond since Russia’s invasion, as domestic companies brace themselves for the financial strains of a longer war.

 

Financial Times

A survey by online jobs portal Adzuna has found that UK vacancies fell from 745,448 in November to 716,791 last month, a 15% reduction compared with a year earlier, and the weakest full year since 2020. "Competition for roles intensified and hiring slowed across many of the UK's largest sectors as the usual year-end uplift failed to materialise," said Adzuna co-founder Andrew Hunter, who nevertheless observed early indications of a recovery in graduate and entry-level posts.

 

Reuters

The EU and India have signed a sweeping trade agreement that will eliminate or reduce tariffs on 96.6% of EU exports to India, potentially doubling EU shipments and removing up to €4bn in duties. The deal, described by Brussels as its largest ever, cuts levies on European cars, machinery, alcohol, and food products, while excluding sensitive agricultural goods. Tariffs on EU wine will fall from 150% to 20%, and car duties will drop from 110% to 10% for up to 250,000 vehicles annually. The pact, aimed at strengthening economic ties amid global trade tensions, still requires approval from the EU parliament, member states, and India’s cabinet.

 

The Times of India

Euronews

Financial Times

Reuters

The Trump administration's National Defense Strategy, released at the end of last week, takes a softer tone toward China, and calls for deterrence "through strength, not confrontation." The strategy frames migration and narcotics in the Western Hemisphere as greater threats than those posed by foreign adversaries, and prioritises protecting the US homeland, securing its borders, and reinvigorating domestic technology development and manufacturing capability. The strategy identifies North Korea as “a direct military threat to South Korea and Japan,” but also warns that its nuclear ambitions could imperil the US.

 

Bloomberg

Le Monde

NBC News