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Nature has published a study exploring the relationship between the overseas experiences of chief financial officers, and digital transformation in Chinese-listed companies, using data from 2009-2022. Based on upper echelons theory, which is used in human resource management to determine correlations between organizational outcome and managerial background characteristics, it examines how CFOs’ international experience influences corporate strategy and digital innovation. The results demonstrate that CFOs with overseas experience significantly drive digital transformation within firms. By linking CFOs’ overseas experience with innovation and sustainable development strategies, the research contributes to the theoretical understanding of how strategic leadership impacts digital transformation. 

 

Nature

Reuters examines some of the key differences between the Senate and House versions of President Donald Trump's tax and spending bill. While broadly similar, divergences between the two include the Senate's proposal to make certain tax breaks permanent, unlike the House's temporary measures. For instance, the child tax credit would be raised to $2,200 in the Senate, while the House version allows it to drop back to $2,000 after 2028. The Senate also maintains the $10,000 cap on state and local tax deductions, contrasting with the House's plan to increase it to $40,400. The House would provide a deduction of up to $4,000 for people over 65, while the Senate would provide a $6,000 deduction, with both ending after 2028. Both the House and Senate versions would roll back clean-energy incentives created by former President Joe Biden's 2022 Inflation Reduction Act, though the dates at which they would decrease are different. In terms of Medicaid, the House and the Senate both want to clamp down on "provider taxes," which states levy on Medicaid providers as a way to boost federal funding. Both bills aim to raise the U.S. debt ceiling, currently at $36tn, with the Senate proposing a $5tn increase, and the House by $4tn. In separate One Big Beautiful Bill news, the Urban-Brookings Tax Policy Center has warned that, if the 2017 slate of tax cuts is allowed to expire at the end of the year, U.S. households could face an average 7.5% increase in taxes.  

 

MSN

Reuters

Federal Reserve officials kept the key interest rate unchanged at 4.25%-4.5% for their fourth straight meeting. Along with the rate decision, the committee indicated, through its closely watched “dot plot,” that two cuts by the end of 2025 are still on the table. The plot indicated continued uncertainty from Fed officials about the future of rates. Each dot represents one official’s expectations for rates. There was a wide dispersion on the matrix, with an outlook pointing to a fed funds rate around 3.4% in 2027. In a post-meeting statement, the Fed’s rate-setting committee said uncertainty about the economic outlook has “diminished,” but said it’s still watching closely for risks related to both inflation and unemployment. Fed Chair Jerome Powell said after the release that the Fed needs more confidence about the path of inflation. “Without tariffs that confidence would be building,” he commented. “We have to learn more about tariffs. I don’t know what the right way for us to react will be. I think it’s hard to know with any confidence how we should react until we see the size of the effects.” Commenting on President Donald Trump's criticisms - on Wednesday he called him "a stupid person" - Mr. Powell said the Fed is "well-positioned" to deliver "a good solid American economy," adding: "Pretty much that's all that matters to us."

 

AP News

CNBC

Politico

Wall Street Journal

The number of Americans applying for unemployment benefits dipped to 245,000 in the seven days to June 14th, hovering at historically low levels, the Labor Department reported on Wednesday - a day earlier than usual, due to today's Juneteenth holiday. Initial claims decreased by 5,000 to 245,000, in line with projections among economists polled by Reuters. The four-week average of claims, which smooths out week-to-week volatility, rose to 245,500, the highest since August 2023, while the number of Americans collecting unemployment benefits, reported with a one-week lag, fell slightly to 1.95m. 

 

ABC News

Bloomberg

Reuters

Higher mortgage rates and uncertainty in the broader economy continue to weigh on consumers, according to the National Association of Home Builders (NAHB). Its June Housing Market Index, produced with Wells Fargo, dropped two points from May to 32, well below the 50-mark separating expansion from contraction, and its lowest since December 2022. Current sales conditions fell two points to 35, sales expectations in the next six months dropped two points to 40, and buyer traffic fell two points to 21. Thirty-seven percent of builders said they had cut prices, the highest share since the NAHB started tracking the monthly metric three years ago. “Rising inventory levels and prospective home buyers who are on hold waiting for affordability conditions to improve are resulting in weakening price growth in most markets and generating price declines for resales in a growing number of markets,” said Robert Dietz, chief economist at the NAHB, adding: “Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025.”

 

CNBC

Reuters

Bloomberg reports that Amazon has ordered some workers to relocate to such cities as Seattle, Arlington, Virginia, and Washington, D.C. Sources told the agency that the online retailer is mostly rolling out the mandate in one-on-one meetings and town halls rather than sending out a mass email. One employee said their manager informed the team of the need to relocate and told them they had 30 days to make a decision, and 60 days thereafter to either resign or begin their relocation process. A company spokesperson said “we hear from the majority of our teammates that they love the energy from being located together, and whenever someone chooses to or is asked to relocate, we work with them to offer support based on their individual circumstances.”

 

Bloomberg

Hasbro, the toy seller and maker of Monopoly, has laid off 3% of its global workforce, or about 150 employees, in an attempt to cut costs amid higher U.S. tariffs on toys from China. "We are aligning our structure with our long-term goals," Hasbro spokesperson Abby Hodes said. The toymaker sources about half of its toys and games sold in the U.S. from China, and has been accelerating efforts to diversify sourcing. According to the company's fiscal 2024 annual filing, it had roughly 4,985 employees globally.

 

Reuters

A former top U.S. consumer finance regulator has told The Globe and Mail that Toronto-Dominion Bank could have lost its licence to operate in the U.S. after pleading guilty to money laundering last year. Rohit Chopra, who was dismissed as head of the Consumer Financial Protection Bureau (CFPB) by U.S. President Donald Trump in February, said U.S. bank regulators and the Department of Justice (DOJ) could have hit TD with penalties even more severe than the rarely applied restrictions that were imposed in October. He warns that the U.S. is easing up on financial-sector enforcement measures. 

 

The Globe and Mail

War risk insurance premiums for shipments to Israel have surged, now reaching up to three times higher than the previous week due to escalating tensions in the region. As of now, the cost for a seven-day voyage to Israeli ports ranges from 0.7% to 1.0% of the ship's value, compared to around 0.2% just a week ago. This increase in insurance costs adds significant expenses for shipping companies, many of which are already hesitant to operate in the area due to the heightened risk of attacks, particularly from Iranian-backed groups.

 

Reuters

Nippon Steel's acquisition of U.S. Steel, valued at $55 per share, marks the creation of the world's second-largest steelmaker, overcoming significant political and union opposition. The deal, which faced scrutiny from both the Trump and Biden administrations, was ultimately approved after Nippon Steel agreed to invest an additional $11bn and grant the U.S. president a "golden share" for oversight on key decisions. Despite initial resistance from union leadership, support grew among rank-and-file members, leading to the deal's acceptance. U.S. Steel's President David McCall expressed concerns over the unprecedented control granted to the president, saying: "We will continue watching, holding Nippon to its commitments." The merger aims to bolster Nippon Steel's position in the U.S. market amid competition from low-cost imports.

 

The Japan Times Online

Washingtonpost.com

Microsoft is prepared to walk away from high-stakes negotiations with OpenAI over the future of its multibillion-dollar alliance if the two sides remain unable to agree on critical issues, sources say. The tech giant has considered pausing discussions with the ChatGPT maker if the two sides remain unable to agree on issues such as the size of Microsoft's future stake in OpenAI, according to people familiar with the matter.

 

Financial Times

Reuters

MoneyGram has agreed to pay a $250,000 fine to settle a lawsuit in New York regarding violations of a federal rule aimed at facilitating remittance transfers. The lawsuit, filed by New York Attorney General Letitia James, accused MoneyGram of causing delays in money transfers and failing to adequately address customer complaints. While MoneyGram did not admit to any wrongdoing, the settlement mandates clearer disclosures about error investigations and ensures that customers are not held liable for issues related to their transactions.

 

Reuters

For decades, accounting firms have followed a predictable seasonal pattern, but this model is becoming unsustainable. Firms are experiencing revenue drops of up to 50% post-April, leading to financial strain and operational uncertainty. Clients now demand year-round strategic insights rather than just tax preparation. Paul Peterson, managing partner and chief executive of Wiss, says that to adapt, firms must shift from reactive to proactive approaches, embracing subscription-based models, leveraging AI for advisory services, and modernizing outsourcing. These strategies not only stabilize revenue but also enhance client relationships and employee satisfaction. Firms that evolve their business models can achieve sustainable growth and resilience in a changing landscape.

 

Accounting Today

According to the U.S. State of the Industry report from Xero, accounting firms in the U.S. have experienced significant growth over the past year. The survey of 250 accountants revealed that 74% of practices increased revenue and 73% saw profit growth. “The larger the practice, the more likely they were to grow revenue, profit, and their client base,” the report states. Client advisory services have emerged as a key opportunity, with 91% of firms offering these services, enhancing their perceived expertise. Despite economic uncertainties, 79% of accountants are optimistic about the impact of artificial intelligence on their practices. Ben Richmond, managing director at Xero, noted: “The widespread adoption of AI has been a turning point for the accounting profession.” Cloud accounting is also crucial, with 85% of firms adopting it to improve client engagement and operational efficiency.

 

CPA Practice Advisor