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A growing web of connected industrial systems, supply chains, and critical infrastructure is transforming cybersecurity from a technical issue into a broader business resilience challenge, according to Nexa Resources Chief Information Security Officer Marco Túlio Moraes. As operational technology (OT) environments become more interconnected, cyber incidents can increasingly trigger disruptions that extend beyond individual organizations, affecting suppliers, critical services, and national economies. Moraes argues that traditional governance frameworks have not kept pace with this shift. He says organizations need clearer accountability for cyber risk, stronger integration of cybersecurity into enterprise decision-making, and a move away from fragmented ownership models where responsibility is spread across multiple departments and external partners. Rather than focusing solely on security controls, companies should adopt scenario-based risk assessments that examine how cyber disruptions could cascade across interconnected assets and ecosystems. Moraes also advocates for greater use of independent audits and external assessments to validate resilience and governance effectiveness.

 

Industrial Cyber

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EY-Parthenon expects U.S. M&A activity to increase 8% by the end of 2026, driven primarily by corporate buyers seeking to acquire technology capabilities and remain competitive amid rapid advances in artificial intelligence and other emerging technologies. The consulting firm's latest M&A outlook predicts a "tale of two markets," with corporate deal volume projected to rise 11% this year, while private equity activity is expected to remain broadly flat. Corporate acquisitions were already up 22% year-over-year in the first quarter of 2026, compared with an 11% decline in private equity deal volume over the same period. According to EY-Parthenon, strategic buyers are increasingly pursuing acquisitions as a faster route to obtaining new technologies rather than developing them internally. Despite economic and geopolitical headwinds, including higher borrowing costs, inflation, and global conflicts, corporations are viewed as having greater urgency to act to avoid falling behind competitors. The report also suggests that uncertainty surrounding the long-term impact of artificial intelligence is causing some investors to delay transactions, particularly in sectors such as software, where AI could significantly alter business models and valuations.

 

CFO

U.S. businesses faced another month of energy-driven cost increases and economic uncertainty in May, according to the Federal Reserve’s latest Beige Book. The survey found that higher energy prices have continued to pressure businesses and consumers, contributing to weaker sentiment and reinforcing concerns that inflation will remain above the Federal Reserve’s target. While higher-income households have largely remained resilient, lower-income consumers are experiencing increasing financial strain, with several regions reporting rising loan delinquencies. Most Federal Reserve districts reported stronger inflationary pressures than in the previous survey period. Input costs, particularly energy-related expenses, increased faster than selling prices, squeezing profit margins and forcing companies to adopt mitigation strategies such as supply chain adjustments, product changes, reduced offerings, and absorbing some costs to maintain demand. The labor market remained subdued, with most districts describing a “low-hire, low-fire” environment as employers remained cautious amid economic uncertainty. Businesses across most regions reported little change in their growth expectations over the next six months, but elevated uncertainty and signs of softer consumer demand are discouraging companies from expanding operations or taking on additional debt.

 

Bloomberg

Fox News

Northwest Arkansas Democrat-Gazette

Wall Street Journal

U.S. services activity strengthened in May, with the ISM nonmanufacturing PMI rising to 54.5 from 53.6 in April, above economists’ expectations of 53.8 and signaling continued expansion across the sector. The increase was driven by businesses placing orders early and rebuilding inventories amid concerns that the U.S.-Israel war with Iran could worsen shortages and push prices higher. New orders rose to 57.3 from 53.5, while the inventories index jumped to 62.5 from 53.1. Cost pressures remained elevated, with the prices-paid index increasing to 71.3 from 70.7, suggesting higher energy, aluminum, and fertilizer prices are spilling into the broader services economy. Supplier deliveries also remained slow, reflecting supply chain strains rather than only stronger demand. “Respondents commented frequently that their companies had instituted hiring freezes or were not backfilling vacated positions, however, most industries reported that they were holding flat in employment month over month,” said Steve Miller, chair of the ISM.

 

Reuters

Wall Street Journal

U.S. factory orders rose 4.8% in April, marking their largest monthly increase since May 2025, driven by a surge in commercial aircraft demand and broad-based strength across several manufacturing sectors. The increase exceeded economists’ expectations of a 4.6% rise and followed an upwardly revised 1.8% gain in March. On an annual basis, factory orders were up 6.0%, highlighting continued resilience in the manufacturing sector despite ongoing geopolitical and supply chain challenges. Commercial aircraft orders jumped 165.9% during the month, with Boeing reporting 136 new orders in April, up from 33 in March. Demand also strengthened for primary metals, where orders rose 2.0%, fabricated metal products, up 3.5%, machinery, up 0.7%, and electrical equipment and appliances, up 0.5%. However, orders for computers and electronic products fell 0.7%, including a 2.5% decline in computer orders. Meanwhile, non-defense capital goods orders excluding aircraft, a key measure of business investment plans, declined 1.0%, although shipments of these core capital goods increased 0.4%.

 

Reuters

Meta Platforms has repeatedly postponed the release of the developer API for its latest artificial intelligence (AI) model, Muse Spark, in a setback to the company’s efforts to generate revenue from its growing AI investments. The API, which would allow developers to build applications using Meta’s proprietary AI technology, was originally expected to launch shortly after Muse Spark’s release in April. However, according to reports, the rollout has been delayed multiple times due to technical issues, testing requirements and additional infrastructure needs. Meta now says it plans to release the API later this month. The delays come as Meta significantly increases spending on AI infrastructure, with capital expenditure expected to reach as much as $145bn this year. The company is seeking to compete with rivals such as OpenAI and Anthropic, which generate substantial revenue by charging customers for access to their AI models through APIs.

 

Wall Street Journal

U.S. automakers, retailers, technology companies, and medical device manufacturers are warning that a growing shortage of memory chips, fueled by surging demand from artificial intelligence data centers, is driving up costs and threatening supply chains across multiple industries. In a letter to the U.S. Treasury and Commerce departments, industry groups including the Alliance for Automotive Innovation, the National Retail Federation, and the Medical Device Manufacturers Association said an “urgent imbalance” in the memory chip market could lead to significant near-term price increases for consumers and disrupt critical manufacturing sectors. The groups argue that AI data centers are consuming an increasing share of global memory chip capacity, causing an unprecedented rise in memory chip prices and reducing supplies available for consumer-facing industries. They warned that the effects are already emerging, with higher costs for consumer electronics, increased expenses for internet and telecommunications infrastructure, and growing risks to the production of automobiles, medical devices, and other manufactured goods.

 

Reuters

Compass is being investigated by the New York attorney general’s antitrust bureau following its $1.6bn acquisition of Anywhere Real Estate, a deal that combined the two largest U.S. residential brokerages and expanded Compass’s agent network to more than 200,000. Regulators are examining whether the merger reduced competition, particularly in key markets such as New York. If violations are found, Compass could face penalties, including fines or divestitures. The company's shares fell 12% after news of the investigation. The probe also comes as Compass promotes its strategy of marketing listings within its own brokerage network before making them widely available online, a practice that has drawn criticism from rivals.

 

Wall Street Journal

Kroger will pay a $2.5m civil penalty and invest over $100m to settle alleged violations of the Clean Air Act. The company was accused of failing to promptly repair leaks of ozone-depleting R-22 coolant in its refrigeration systems from 2014 to 2023. The U.S. Department of Justice stated that Kroger must implement a company-wide plan to reduce these leaks and improve equipment compliance. Principal Deputy Assistant Attorney General Adam Gustafson said: "Compliance with the Clean Air Act protects human health." The settlement is open for public comment until June 5th.

 

Cincinnati Enquirer

Macy’s has raised its full-year guidance after delivering better-than-expected first-quarter results, with comparable sales recording their strongest first-quarter growth in four years as the retailer's turnaround strategy continues to gain traction. Comparable sales rose 3% during the quarter, including growth of 1.6% at the Macy’s banner and 10.2% at Bloomingdale’s, helping drive net sales up 1.8% to $4.68bn, ahead of analyst expectations of $4.61bn. Adjusted earnings per share came in at 13 cents, comfortably ahead of forecasts of three cents. Net income increased to $63m from $38m a year earlier, while management said improved sales and profitability prompted an upgrade to full-year expectations. Macy’s now expects 2026 net sales of $21.5bn-$21.75bn and adjusted earnings per share of $2-$2.20, both ahead of previous guidance and market forecasts. The retailer also upgraded its comparable sales outlook, forecasting growth of 0.5%-1.2% for the year versus previous guidance ranging from a 0.5% decline to a 0.5% increase.

 

AP News

CNBC

Reuters

Wall Street Journal

New research suggests streaming platforms can improve advertising effectiveness by giving viewers greater control over their ad experience, with consumers paying more attention to adverts and reporting lower levels of frustration when offered a choice. The study, conducted by researchers from Northeastern University and Boston University, found that allowing users to choose either which advert they watch or when they watch it increased visual attention by 9%-15% and reduced annoyance by 8%-17% compared with traditional advertising models. These improvements also translated into higher ad recall, stronger brand perceptions and greater purchase intent. While many platforms have focused on letting users choose between adverts, the researchers found that giving viewers control over ad timing can be equally effective. Timing choices, such as selecting whether an advert appears before or during content, delivered similar results to content selection without requiring users to evaluate unfamiliar brands or advertisements. The findings come as digital advertising faces growing resistance from consumers. Around 70% of users find online adverts annoying, while subscription cancellations linked to advertising are increasing across major streaming services. 

 

Harvard Business Review

KPMG Australia chief operating officer Eileen Hoggett has stepped down from her executive role amid escalating scrutiny over whistleblower allegations that confidential client information was improperly used to help secure audit contracts. Hoggett, who has served as COO since 2023 and is named in the allegations, will remain with the firm as an audit partner while investigations continue. The resignation follows the recent departures of KPMG Australia’s chief executive and head of audit, both of whom left after criticism of the firm's handling of an initial internal review into the claims. KPMG had previously stated that its internal investigation did not substantiate the whistleblower’s allegations. The allegations, raised with Senator Deborah O’Neill, claim that confidential Lendlease board documents were used to support KPMG pitches for major audit mandates with Westpac and Dexus. 

 

International Accounting Bulletin