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Recent Editions
North America
Human Times
Meta CEO Mark Zuckerberg has said the Facebook parent firm's planned layoffs are the consequence of increased capital spending for AI, and in comments to staff at a company town hall on Thursday he declined to rule out further job cuts. “We basically have two major cost centers in the company: compute infrastructure and people-oriented things," Zuckerberg said. "If we’re investing more in one area to serve our community, then that means we have less capital to allocate to the other. So that means we do need to take down the size of the company somewhat." He added: "Getting everyone internally to use AI tools and getting to do the work more efficiently is not the thing that's driving layoffs."
Full Issue
UK
Human Times
Research from BTG reveals a 36.9% increase in UK businesses facing "critical financial distress," with the total hitting 62,193 in Q1. The latest quarterly red flag report also notes a 9.6% rise in "significant" financial distress, affecting 634,867 businesses. Hotels and leisure firms are particularly impacted by rising labour costs and tax burdens, including a hike in National Insurance contributions. Ric Traynor, executive chair of BTG, said: "After initial signs that the UK's GDP was improving at the very start of the year, it now feels like after taking a step forward, the UK has taken a few steps backwards following one of the most severe energy shocks in living memory." Julie Palmer, managing partner at BTG, observed: "Inevitably we expect to see an increasing number of ‘zombie' businesses tipped over the edge this year."
Full Issue
USA
Education Slice
The U.S. Department of Education has finalized new regulations that tighten federal student lending, including lower borrowing caps, fewer repayment options, and the phase-out of Grad PLUS loans, in line with recent legislation aimed at reducing student debt. A key feature of the rule is a narrow definition of “professional student,” which limits higher borrowing caps to 11 fields such as law, medicine, and dentistry, excluding major graduate disciplines like nursing and education despite widespread opposition. Students in designated professional programs can borrow up to $50,000 annually and $200,000 total, while other graduate students face significantly lower limits, including a $20,500 annual cap. The regulations also introduce a new aggregate borrowing cap of $257,500 for all federal student loans, with transitional allowances for some current borrowers, and replace existing repayment plans with two streamlined options: a fixed-payment plan and an income-based plan, with other plans set to be phased out by 2028. Officials argue the changes will curb excessive borrowing and help control tuition inflation, but critics warn that restricting federal loan access could push students toward more expensive private loans and exacerbate workforce shortages in excluded fields.
Full Issue
USA
Accountancy Slice
A recent federal court decision has opened the door for tens of millions of U.S. taxpayers to potentially reclaim penalties, interest payments and other charges imposed during the Covid-19 pandemic, after ruling that many IRS filing deadlines were effectively suspended. The judgment found that a 2019 law granting automatic deadline extensions for disaster victims, combined with the nationwide emergency declared in January 2020, meant that tax deadlines should have been paused until July 10th 2023. This contradicts the IRS’s earlier interpretation, under which deadlines remained in force, leading to widespread penalties for late filings and payments. The scope of the issue is significant, affecting individuals, small businesses and large corporations alike, with more than 28m penalties issued in fiscal 2022 alone, totalling over $12bn. Some companies, including large corporates, have already begun pursuing claims based on the ruling. The IRS’s national taxpayer advocate has urged taxpayers to review their eligibility and submit claims, typically via Form 843, before the key deadline of July 10th 2026, which reflects the standard three-year window for refund claims. However, the process may prove complex and slow, as claims must currently be filed on paper and could overwhelm IRS systems.
Full Issue
Scotland
Legal Matters Scotland
The family of a Dundee-born teacher who died following an undiagnosed ruptured ectopic pregnancy have welcomed the start of a fatal accident inquiry, ordered by Lord Advocate Dorothy Bain KC, over what has been deemed a matter of "serious public concern." Hannah McInally, 24, died at Aberdeen Royal Infirmary in November 2021, and the inquiry will examine the circumstances of her death and whether any preventative measures could have been taken. A preliminary hearing at Aberdeen Sheriff Court heard the investigation will focus on NHS 24’s handling of an initial call, her assessment by out-of-hours doctors, and any changes made since her death. Her family said they hope the process will answer longstanding questions about her care and bring clarity over alleged failings by NHS Grampian.
Full Issue
North America
Legal Slice
The Supreme Court has weakened a landmark Civil Rights-era law that had increased minority representation in Congress and elsewhere. The court's striking down of a majority Black congressional district in Louisiana introduces the possibility for more redistricting across the U.S. that could aid Republican efforts to control the House. In a 6-3 ruling, the court’s conservative majority found that the Louisiana district represented by Democrat Cleo Fields relied too heavily on race. Chief Justice John Roberts said the 6th Congressional District was a “snake” that stretches more than 200 miles (320 kilometers) to link parts of Shreveport, Alexandria, Lafayette and Baton Rouge. “That map is an unconstitutional gerrymander,” Justice Samuel Alito wrote for the six conservatives. All three liberal justices joined a dissent by Justice Elena Kagan. Kagan said that what the majority claimed were mere updates actually “eviscerate the law” and amount to the “demolition of the Voting Rights Act.”
Full Issue
Europe
Risk Channel
The focus of the EU’s Digital Markets Act (DMA) is to turn to cloud and AI services after the European Commission said it has seen progress in other digital areas. The commission said its aim for the near future was to make cloud services and AI “fairer and more contestable,” and that it planned to look into whether certain AI services should be designated as core platforms in the market for virtual assistants. "The DMA was designed to be future-proof and adapt to emerging challenges, for example in AI and cloud," European Union antitrust chief Teresa Ribera said.
Full Issue
North America
CFO Slice
OpenAI chief financial officer Sarah Friar has dismissed concerns about missed internal targets, saying the company is “beating” its overall plan and experiencing a “vertical wall of demand” for its products, even as rapid growth strains computing capacity. Friar acknowledged that ambitious internal “stretch goals” may not always be met but said strong user growth, including rising adoption of tools like Codex, underscores continued momentum, with constraints largely driven by limited data center and chip capacity rather than weak demand. The comments follow reports questioning OpenAI’s ability to meet revenue and user targets, though the company highlighted ongoing expansion, including $2bn in monthly revenue, while continuing to invest heavily in infrastructure amid intensifying competition from rivals such as Google and Anthropic.
Full Issue