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A rift between the European Central Bank (ECB) and banks keen to protect revenues is hampering efforts ​to curb the region's dependence on US payments giants and build a home-grown system, according to people involved. The ECB wants to introduce a digital euro by 2029, but European banks are concerned that this would see customers transfer cash from them to the safety of an ECB-guaranteed wallet. On Wednesday, 25 more banks, including ​ABN Amro and Sabadell, joined a European consortium which plans to launch a euro-pegged cryptocurrency. "Europe is moving toward payment sovereignty by developing both private interoperable payment solutions and the digital euro. The real challenge is to make the development of both options compatible and efficient without imposing additional costs on citizens," Fernando Navarrete, the EU lawmaker overseeing the legislation, told Reuters.

 

Reuters

Banks have been summoned to a meeting with the European Central Bank today to discuss cyber security risks exposed by the latest AI models, such as Anthropic’s Claude Mythos Preview.

 

Financial Times

Russia has announced plans to intensify its strikes on Kyiv, targeting what it described as Ukraine's "decision-making centres." The warning followed a weekend attack that killed four people and injured many others. Russia's foreign ministry has called on foreign diplomats and civilians to evacuate the city. However, Western diplomatic missions, including those from France and the EU, have rejected the evacuation calls, and Ukrainian officials have labelled Russia's threats as mere "rhetoric." Ukrainian Foreign Minister Andriy Sybiga urged partners not to succumb to Russian intimidation.

 

France 24

The Guardia di Finanza, Italy's financial police, say they have smashed a sophisticated streaming piracy ​network that caused approximately €300m ($348m) in ‌damages to rights holders including Sky, DAZN, Netflix, Disney+ and Spotify. At the centre of the investigation is Cinemagoal, an application that is capable of overcoming the platforms' security blocks. Virtual machines operated continuously on ​Italian soil, capturing and retransmitting access codes from legitimate subscriptions registered to fictitious account holders every three minutes, police ​said.

 

Il Sore 24 Ore

Reuters

Luxembourg steel giant ArcelorMittal has pleaded guilty to pollution charges and will pay a C$100m (€62m) fine for contaminating Canadian rivers from its largest iron ore mine. This latest fine follows a C$15m penalty in 2022 for toxic discharges into a major salmon river. The company concealed the extent of its pollution from investigators, precipitating further penalties. ArcelorMittal must submit a pollution prevention plan by February 2027. CEO Mapi Mobwano said: "We are committed to improving the environmental performance of our operations," as he highlighted a C$400m investment in pollution prevention.

 

Luxembourg Times

Estée Lauder and Spain’s Puig Brands have ended talks over a potential business combination, bringing to a close months of speculation that the two beauty groups could merge to create one of the world’s largest cosmetics companies. Estée Lauder said it will instead remain focused on its ongoing turnaround strategy, with chief executive Stéphane de La Faverie reiterating confidence in the company’s brands and standalone growth prospects. The US beauty group, which owns brands including Clinique, M.A.C, and Bobbi Brown Cosmetics, had confirmed in March that it was in discussions to acquire Puig, whose portfolio includes Carolina Herrera, Charlotte Tilbury, and Byredo. Analysts had highlighted significant integration and execution risks surrounding a potential deal, particularly given Estée Lauder’s restructuring efforts and slowing growth across prestige fragrance and skincare markets. The company added that it will continue reviewing its portfolio, including possible acquisitions and disposals, to support future growth.

 

Bloomberg

Financial Times

Wall Street Journal

The National Preparedness Commission has warned that Britain's supply chains are ill-prepared for major shocks, such as wars. The report highlights the UK's lag in stockpiling critical supplies compared to European nations. It also notes the impact of global events on the UK's access to essential materials. A UK government spokesperson insists that the UK's supply chains are strong and resilient, adding: "We actively monitor for risks."

 

The Guardian

Regulators in Hong Kong and Singapore have sought clarity from Standard Chartered after CEO Bill Winters said ​the company plans to replace "lower-value human capital" with ‌technology. The Hong Kong Monetary Authority (HKMA) asked the lender to explain Winters' comments, while the Monetary Authority of Singapore discussed the topic with the bank. Winters' remarks were made when referring to the role of AI in the bank's plans to cut thousands of jobs. The HKMA asked the bank if the comments meant the lender was seeking to use AI as a pretext to cut staff, according to a source. “It’s common practice to have regular dialogue with our regulators on wide-ranging topics, including on strategy and growth plans,” Standard Chartered said. “Talent is core to our strategy as we continue to invest to create new, reskill and redeploy roles – this will be done in line with regulatory expectations.”

 

Bloomberg

Mining firm BHP has reportedly pulled back on its decarbonisation commitments. Leaked internal documents indicate that the urgency to source renewables has "diminished" and the company considers its goal of net zero emissions by 2050 to have a "low probability of success." BHP insists it is still focused on its net zero goal and its target of 30% emissions reductions by 2030. 

 

The Guardian

Eurozone consumer confidence improved in May, with sentiment rising to -19.0 from -20.6 in April, according to a flash estimate released by the European Commission. The 1.6-point increase came ahead of economists’ expectations for a decline to -20.8, suggesting households across the bloc were more optimistic despite ongoing economic uncertainty. Across the wider European Union, consumer confidence also improved, rising 1.7 points to -18.2.

 

Reuters

Turkey has passed an ambitious package of tax incentives to support struggling exporters by halving their tax rates, while also boosting foreign exchange reserves via an amnesty on repatriated wealth.

 

Financial Times