THE HOT STORY

Investigation into WhatsApp privacy claims by U.S. authorities

U.S. law enforcement is probing allegations from former Meta Platforms contractors suggesting that company personnel have gained access to WhatsApp messages, contradicting the company's assertions that the service hosts private and encrypted communications. The claims, which highlight alleged “unfettered” access to chats, are being investigated by special agents from the U.S. Department of Commerce, and echo similar allegations raised in a 2024 whistleblower complaint to the U.S. Securities and Exchange Commission. The ongoing inquiry has not been publicly disclosed until now.

Bloomberg

LEGAL

Trump administration targets UCLA admissions

The Trump administration has moved to join a lawsuit against UCLA's David Geffen School of Medicine, alleging that the school employs a “systemically racist approach” in its admissions process. The Department of Justice claims that UCLA's practices favor Black and Latino applicants over white and Asian American candidates, violating the U.S. Constitution's Equal Protection Clause. The lawsuit, initiated by the group Do No Harm and Students for Fair Admissions, includes Kelly Mahoney, who asserts she was denied admission due to her race. The Justice Department's filing cites lower median MCAT scores for Black and Latino students compared to their white and Asian American counterparts. U.S. Attorney General Pam Bondi said that the action is part of the Department's effort to hold universities accountable for unlawful policies, particularly in California.

Los Angeles Times

Whistleblower receives $1m reward under new DOJ program

A whistleblower has received a $1m reward for reporting illegal bid-rigging of used car auctions to federal authorities under the auspices of a Justice Department program announced last year. The information led to a deferred prosecution agreement that will see eBlock Inc. pay a $3.28m criminal fine. “This whistleblower helped expose a brazen $16 million scheme that made it more expensive for hardworking Americans to afford second-hand cars across the country,” said Omeed Assefi, deputy assistant attorney general for criminal antitrust enforcement. “Whistleblowers serve as the Justice System’s greatest disinfectant against criminal antitrust conspiracies.”

Bloomberg

STRATEGY

Dow to cut 4,500 jobs amid AI shift

Dow plans to eliminate around 4,500 jobs as it shifts focus towards artificial intelligence and automation. The chemicals maker expects severance costs of between $600m and $800m as part of its strategy to simplify operations. Dow, which employs approximately 34,600 people globally, has already announced previous job cuts and plant closures.

U.S. News

Eli Lilly to build six U.S. plants, Trump says

U.S. President Donald Trump has said that the head of Eli Lilly has told him the drugmaker plans to build six plants in the U.S. "I spoke with the head of Eli Lilly, who's a fantastic guy, a star actually, he's a star, very smart, and he told me he's building six plants in the United States, big ones," Trump said during a cabinet meeting at the White House. Reuters notes that a Lilly spokesperson said the company has announced plans for nine new manufacturing sites in the U.S. since 2020, including three announced since last year.

Reuters

WORKFORCE

U.S. jobless claims dip slightly following upward revision

U.S. jobless claims declined slightly last week, the Labor Department reported on Thursday, but remained consistent with a relatively low level of layoffs. Initial claims in the seven days to January 24th fell 1,000 to a seasonally-adjusted 209,000. The previous week's level of claims was revised up by 10,000 to 210,000. Economists surveyed by the Wall Street Journal were expecting to see 205,000 new claims. The four-week moving average rose 2,250 to to 206,250, while continuing claims, reported with a one-week lag, fell 38,000 to 1.827m. The Labor Department also reported Thursday that U.S. worker productivity grew at its fastest pace in two years in the third quarter, rising 4.9%. Economists polled by Reuters had expected third-quarter productivity growth would be ‌unrevised. Productivity growth in the April-June quarter was also unrevised at a 4.1% pace. Unit labor costs - the price of labor per single unit of output - decreased at an unrevised 1.9% rate in the third quarter.

Airlines urge Congress to secure pay for air traffic controllers during potential shutdown

Major U.S. airlines have called on Congress to ensure that air traffic controllers are paid in the event of a partial government shutdown, citing last year's disruption that affected millions of passengers. Airlines for America said: "Congress needs to understand the real-world consequences [of shutdowns]." The FAA has reported a significant shortage of air traffic controllers, leading to unprecedented flight cancellations and economic losses.

Reuters

TAX

IRS clarifies new overtime deduction rules

On January 23rd, the Treasury Department and the IRS released a fact sheet addressing frequently asked questions about the new tax deduction for qualified overtime compensation under the One Big Beautiful Bill Act. For tax years 2025 to 2028, individuals can deduct up to $12,500 of qualified overtime compensation, or $25,000 for joint returns, provided their modified adjusted gross income does not exceed $150,000 ($300,000 for joint filers). The fact sheet includes eight FAQs that clarify reporting requirements and provide resources for employees. Notably, for tax year 2025, employers are not required to report qualified overtime compensation separately on Forms W-2 or 1099. As stated in the fact sheet: "It depends on the tax year" regarding the reporting of qualified overtime compensation. For subsequent years, separate reporting will be mandatory.

CPA Practice Advisor

INTERNATIONAL

Coupang CEO questioned over major data breach

Coupang's interim chief executive, Harold Rogers, has been questioned by Seoul police over allegations of obstructing investigations into a data breach affecting more than 33m of the e-commerce company's customers. Authorities suspect the company downplayed the scale of the breach and tampered with evidence, including analysing a suspect’s laptop without approval. Mr Rogers had defied two earlier summonses before appearing on Friday. The case has triggered political friction, with U.S. officials warning against unfair treatment of Coupang, a U.S.-listed company, and speculation linking it to increased U.S. tariffs on Korean goods.

The Korea Times

Reuters

Spain to grant legal status to immigrants without permission

Spain is to grant legal status to hundreds of thousands of undocumented immigrants, marking a shift from stricter immigration policies seen in the U.S. and Europe. Spanish Minister of Migration Elma Saiz said that eligible immigrants could receive up to one year of legal residency and work permission. The initiative could benefit around 500,000 to 800,000 individuals, primarily from Latin America and Africa. Saiz said the government is "dignifying and recognizing people who are already in our country."

Daily Sabah

Capgemini under fire in France for ICE contract

France's finance minister, Roland Lescure, has called on Capgemini to clarify its contract with US Immigration and Customs Enforcement (ICE) amid growing concerns over the agency's actions. Capgemini Government Solutions has signed a contract for "skip tracing services" to assist ICE in locating deportees. Lescure said: "I urge Capgemini to shed light . . . on its activities." The scrutiny follows incidents involving ICE officers that have raised international concerns, including the agency's involvement in the U.S. security team for the upcoming Winter Olympics in Italy. Capgemini chief executive Aiman Ezzat noted that the U.S. branch of the firm acted independently on the contract.

Financial Times

Le Monde

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