THE HOT STORY

UK business groups warn on zero-hours contract reforms

Plans to reform zero-hours contracts may hinder job opportunities for young people, UK industry leaders say. The government aims to provide guaranteed hours and notice for shifts, but organisations including the British Retail Consortium, UKHospitality and the British Chambers of Commerce warn this could worsen the jobs crisis. The government’s impact assessment estimates the changes could cost employers up to £3bn a year through higher staffing and administrative costs, lost revenue and reduced flexibility. Research by the Chartered Institute of Personnel and Development found that 65% of employers using zero-hours contracts expect higher HR and management costs, while 31% anticipate possible redundancies. A further 33% expect to increase their use of self-employed, temporary or casual workers.

The Times

STRATEGY

Joint action urged to avert Volkswagen plant closures

Saxony State Premier Olaf Lies has said Volkswagen's stakeholders must partner on solutions for the automaker as it tries to avoid plant closures. Lies was speaking ahead of a series of workers' assemblies this week at which employees will have their first opportunity to question CEO Oliver Blume on his proposed restructuring. Blume has said that around 50,000 further job cuts are required to make Volkswagen competitive; the same number has already been agreed across the group.

Reuters

RISK

Ozon warehouse hit in second drone attack in two days

E-commerce company Ozon’s logistics centre in Russia’s Orenburg region has been hit by drone debris after Russian authorities said six drones were repelled over the region. More than 300 people were evacuated and operations at the facility were suspended, although no injuries were reported. The incident came a day after a Ukrainian drone strike hit another Ozon logistics centre in the Samara region, the first reported attack on the Russian online retailer. The strikes follow a series of attacks on rival Wildberries and form part of what Ukraine has described as a wider campaign targeting economic infrastructure supporting Russia’s war effort.

The Moscow Times

LEADERSHIP

Lagarde could take over the presidency of the WEF

Swiss newspaper NZZ has reported ‌that European Central Bank chief Christine Lagarde could take over the presidency of the World Economic Forum next year. At a recent WEF board meeting near Geneva, Lagarde was reportedly described as a "putative candidate" to lead the organisation. Lagarde said last year that she was determined to complete her eight-year presidential term at the ECB, which runs until the end of October 2027.

Reuters

LEGAL

Commerzbank chair wants review of German takeover rules

Jens Weidmann, Commerzbank's supervisory board chair, has urged a review of Germany's takeover rules, telling Sueddeutsche Zeitung that UniCredit was able to secure control of the German lender without offering shareholders an adequate ‌premium. Weidmann said the Italian bank had been able to obtain a majority despite making what he described as a financially unattractive offer. "That raises questions about takeover law in Germany, which lawmakers may ‌want ⁠to examine," Weidmann said. Of ⁠the roughly 73% of Commerzbank shares that could have been tendered to UniCredit, fewer than 18% were tendered, he told the newspaper.

Reuters

ECONOMY

UK productivity 'growing faster than official figures suggest'

Resolution Foundation analysis indicates that UK productivity is improving more than official data suggests. The study claims output per hour rose by 1.1% over the past two years, while official figures show a 0.2% decline. The report suggests that productivity gains are not due to an AI boom or sector shifts, but rather consistent performance from the same workers in the same jobs. Simon Pittaway, principal economist at the think-tank, said: "While official figures suggest that the output of workers has worsened, our measure shows improvement." The findings align with recent data showing the UK as the joint fastest-growing economy in the G7 for the first half of 2026.

The Guardian

The I

INTERNATIONAL

Starbucks cuts more than 200 corporate jobs as turnaround drive continues

Starbucks is laying off more than 200 corporate employees as chief executive Brian Niccol continues to streamline the business and target $2bn in cost savings by the end of fiscal 2028. The cuts include about 120 technology employees who declined to relocate to the company’s new Nashville office, as well as 104 roles in coffeehouse design and development, and do not involve additional cafe closures. The reductions follow 300 US corporate layoffs earlier this year and around 2,000 corporate job cuts in 2025, alongside the closure of hundreds of US stores. Starbucks is simultaneously investing in cafe operations and a new $100m Nashville office for 2,000 employees, while its turnaround has shown signs of progress, with recent quarterly sales and earnings beating expectations and the company raising its full-year same-store sales and earnings forecasts.

Fox News

Chattanooga Times Free Press

Wall Street Journal

KPMG Australia to cut nearly 400 jobs as consulting revenue slumps

KPMG Australia is cutting 387 positions, including 360 employees and 27 partners, equivalent to about 5% of its workforce, as it responds to weaker consulting demand and the fallout from allegations that it misused confidential client information to win business. Revenue fell 1% to A$2.26bn ($1.6bn) in the year through June, while consulting revenue dropped 17% to A$632m, and average equity partner remuneration declined 13%. The firm is also simplifying its structure and aligning its operations more closely with KPMG’s global advisory business. New chief executive John Sams expects difficult market conditions to persist until at least 2028, citing subdued economic growth, AI disruption, reduced government spending on consultants, and the continuing impact of the scandal. KPMG has faced criticism from clients, leadership departures, and regulatory scrutiny over allegations involving confidential information, while several reviews are underway as the firm seeks to rebuild trust.

Bloomberg

Reuters

Professor's gig work comment sparks anger in China

The term ‘flexible employment’ has gone viral in China after Zhang Dandan, a prominent economics professor and deputy dean at Peking University's National School of Development, described gig work as a form of "welfare." Zhang argued that while regular employees trade schedule flexibility for pensions and other benefits, flexible workers enjoy greater control over their time at the cost of weaker social protections. Her comments have sparked widespread anger, although some on social media observed that Zhang's academic career has included advocacy for gig workers' rights.

Straits Times

Argentina removes judge for antisemitic remarks

A federal judge in Argentina has been dismissed for antisemitic statements. Dr. Alfredo Eugenio López, head of Federal Court No. 4 in Mar del Plata, was removed by the National Jury for the Prosecution of Magistrates. His social media posts included derogatory remarks about Jews, invoking historical antisemitic tropes. The tribunal emphasised that judges must uphold impartiality and public confidence. The Argentine Forum Against Antisemitism called the ruling a “historic day.”

The Times of Israel

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