Latest Developments

Europe
BBC Business

Water firm fined £1.8m over parasite outbreak

South West Water has been fined almost £2m after the supply in and around Brixham, Devon, was contaminated with the parasite cryptosporidium. The utility firm was sentenced to the record fine for a drinking water offence at Exeter Magistrates' Court following a prosecution brought by the Drinking Water Inspectorate (DWI). The company pleaded guilty to supplying water unfit for human consumption at an earlier hearing, offering a "full and unreserved apology". Four people were hospitalised and there were more than 140 confirmed cases of sickness and diarrhoea during the 54-day incident in May 2024. Judge Stuart Smith told the court it had been "a major public health incident" in which "disruption to daily life was extensive". He said the harm had been "wide-ranging and profound" and the system of monitoring air valves had been "inadequate". He said the "unvarnished reality" was there had been no visual inspection scheme of air valves which showed a "systemic failure of governance" of South West Water. Smith said there had been mitigating factors and he had reduced the £1.853m fine by a third as the company had entered an early guilty plea. The largest fine to be handed to a water firm to date is the £122.7m penalty water industry regulator Ofwat handed to Thames Water for breaching rules over sewage spills and shareholder payouts in May 2025. South West Water offered those affected an "unreserved apology" and said it wanted to publicly record its "genuine remorse" for the incident. Smith said the company had responded rapidly once the contamination had been discovered, had deployed "substantial personnel" and provided "substantial financial remediation" to those affected. Keith Haslett, chief executive of the Pennon Group which owns South West Water, said: "It is very clear we must learn lessons from this incident and work hard to rebuild trust with the customers and communities we serve, both in Brixham and beyond."

Water firm fined £1.8m over parasite outbreak
Europe
The Guardian

Short seller Andrew Left convicted of securities fraud in California

Andrew Left, founder of Citron Research, arrives at federal court in Los Angeles, California, on 7 July 2025. Photograph: Eric Thayer/Bloomberg via Getty ImagesView image in fullscreenAndrew Left, founder of Citron Research, arrives at federal court in Los Angeles, California, on 7 July 2025. Photograph: Eric Thayer/Bloomberg via Getty ImagesCaliforniaShort seller Andrew Left convicted of securities fraud in CaliforniaFederal jury convicts the securities analyst and trader, who could face a maximum penalty of 25 years in prison A federal jury in California has convicted short seller Andrew Left of securities fraud. Left, who was a securities analyst, trader and guest commentator on television channels including CNBC and Fox Business, was charged in July 2024 with one count of engaging in a securities fraud scheme, 17 counts of securities fraud and one count of making false statements to federal investigators. As a short seller, Left would make money betting that stocks would fall. The justice department said on Tuesday that Left was convicted of one count of participating in a securities fraud scheme and 12 counts of securities fraud. He is scheduled to be sentenced on 31 August. He faces a maximum penalty of 25 years in prison. “Andrew Left used his expertise to profit at the expense of retail investors, ordinary people who owned the stocks he targeted. He callously boasted that it was like ‘taking candy from a baby’,” A Tysen Duva, assistant attorney general of the justice department’s criminal division, said in a statement. “Egregious schemes like this strike at the heart of free, fair and open markets, and warrant prosecution when they involve criminal manipulation. Investors should have confidence that US markets are safe and free from the type of deliberate manipulation that Left engaged in to enrich himself at the expense of American investors.” The justice department previously said that Left conducted business under the name of Citron Research, which had a website that published investment recommendations. He published research on companies ranging from Tesla and GameStop to Grand Canyon Education and Peloton. According to the indictment, Left would comment on publicly traded companies and make recommendations on the shares. The commentary often included sensationalized headlines (“Investors Peddling Themselves into Frenzy”) and exaggerated language to maximize the reaction it would get from the stock market. As alleged, Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money. The indictment further alleged that before Citron would publish its commentary, Left would create long or short positions in a public company on which he was commenting in his trading accounts and prepared to quickly close those positions after Citron’s publication and take profits on the short-term price movement caused by his commentary. In a post on X under the Citron Research handle, Left expressed his opposition to the conviction. “We disagree with the jury and this does not stop here,” the post said. “We will keep fighting for free, honest speech and opportunity, the backbone of this country. This is not over.”

Short seller Andrew Left convicted of securities fraud in California
Asia-Pacific
Nikkei Asia

Japan's Advantage Partners launches $1.8bn buyout fund

The fund established by Advantage Partners is one of the largest funds ever launched by a Japanese private equity firm. (Nikkei montage/Source photos by Rie Ishii and Taizo Wada) TOKYO -- Japanese corporate acquisition firm Advantage Partners has launched a 300 billion yen (approximately $1.8 billion) buyout fund, Nikkei has learned. Advantage aims to use the fund, one of the largest from a Japanese private equity firm, to drive the restructuring of Japanese industries by spinning off non-core businesses from domestic companies and taking midsize companies private.

Japan's Advantage Partners launches $1.8bn buyout fund
China / Asia
South China Morning Post

Putin in Beijing, ‘China shock’ in EU: 7 global relations reads

SCMPPublished: 10:00pm, 2 Jun 2026We have selected seven of the most interesting and important news stories covering global relations from the past few weeks. If you would like to see more of our reporting, please consider subscribing.1. Brussels agrees on tougher China trade policy, as Beijing vows retaliationPhoto: ReutersThe European Commission agreed on a tough new approach to trade relations with China in May, at a rare Beijing-focused debate among Brussels’ leadership. The trade-focused orientation debate is seen internally as the firing of a starting gun ahead of an intense period for China policy. Russian President Vladimir Putin arrived in Beijing for a visit aimed at deepening the two sides’ comprehensive partnership, four days after the Chinese capital hosted US President Donald Trump. China’s military said that it had used measures including electronic interference to drive away a Dutch warship near the disputed Paracel Islands, and in a rare move accused the Dutch navy of triggering “miscalculation”.

Putin in Beijing, ‘China shock’ in EU: 7 global relations reads
China / Asia
South China Morning Post

China-Cuba ‘US security threat’, Brazil’s rare earths: Latin America relations reads

SCMPPublished: 10:00pm, 2 Jun 2026We have selected seven of the most interesting and important news stories covering Latin American relations from the past few weeks. If you would like to see more of our reporting, please consider subscribing.1. US casts Cuba as China-linked security threat while still pushing for talksPool photo: APOne day after the United States brought criminal charges against former Cuban leader Raul Castro over the 1996 shooting down of two civilian aircraft, President Donald Trump and Secretary of State Marco Rubio portrayed Cuba as both a growing national security threat tied to China and Russia, and a candidate for a negotiated political transition. Panamanian President Jose Raul Mulino in May rejected suggestions that US pressure had shaped his government’s handling of a dispute over ports near the Panama Canal, as Panama sought to stabilise relations with Beijing and renew a key maritime agreement. Argentina is on the verge of settling its debt with China’s central bank, winding down a currency lifeline that kept the country afloat during years of financial turmoil, and now sits at the centre of a geopolitical tug of war between Washington and Beijing.

China-Cuba ‘US security threat’, Brazil’s rare earths: Latin America relations reads
Europe
BBC Business

Third of people say uni degree not worth it, as student loan inquiry begins

An inquiry by MPs into the student loan system in England has begun, with evidence from student organisations and experts. The National Union of Students (NUS) said the inquiry should look at the graduate earnings repayment threshold and interest rates. But the government said the current student loan system protected lower-earning graduates, with repayments linked to earnings and loans written off at the end of their term. New research published separately suggests a third of people now think a university degree isn't worth the time and money. The British Social Attitudes survey has tracked public opinion over key issues, including university education, for decades. Their research, published on Tuesday, found that 34% of people in 2025 agreed a university education "just isn't worth the amount of time and money" - up from 14% in 2005. At the same time, there has been a decline in those who believe going to university leaves graduates "a lot better off" in the long run, down from 50% in 2005 to 36% in 2025. Against that background of wider public unease, the Treasury Select Committee of MPs will hear the concerns of graduates about the size of their debts, and the interest rates. Among those most worried are graduates who took out what are called Plan 2 loans between 2012 and 2023. Gemma, who now works for a tech company, is one of those graduates who contacted the BBC through Your Voice to share her frustration. Just after she graduated in 2016, her debt was £34,105 - but her latest balance statement shows it's now £41,908 because the interest accumulating is outstripping her repayments. Gemma said her degree was worth it, taking her from a low-income background into a job where she now earns just under £50,000 a year, but living with the loan is "draining".

Third of people say uni degree not worth it, as student loan inquiry begins
Europe
The Guardian

Google owner Alphabet to sell $80bn in stock to fund AI spending spree

Alphabet’s Gemini AI system has been increasing its share of the AI chatbot market. Photograph: Algi Febri Sugita/Zuma Press/ShutterstockView image in fullscreenAlphabet’s Gemini AI system has been increasing its share of the AI chatbot market. Photograph: Algi Febri Sugita/Zuma Press/ShutterstockAlphabetGoogle owner Alphabet to sell $80bn in stock to fund AI spending spreeMarkets take note as world’s biggest equity fundraiser bids to garner more money than the three biggest-ever IPOs combined Google’s parent company, Alphabet, has said it plans to raise up to $80bn (£59bn) in equity to fund its vast artificial intelligence infrastructure investments, raising further questions over the economics of the AI boom. The move, the largest equity fundraising ever according to analysts, includes a $10bn share sale to the US investment group Berkshire Hathaway, which was led until last year by the investment guru Warren Buffett. Alphabet, which is behind the Gemini system that has been increasing its share of the AI chatbot market, said it would use the money to expand its “world-class AI compute infrastructure to meet its unprecedented customer demand”. The California-based company said: “AI is driving an expansionary moment for Alphabet. The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply. By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.” Nicholas Hyett, the lead alternatives analyst at Hargreaves Lansdown, said the planned stock sale was much larger than previous secondary share sales, and would also raise more money than the largest stock market flotations, known as initial public offering (IPOs). “Alphabet’s $80bn fundraise dwarfs the world’s largest IPOs, often the moment of maximum excitement when companies seek to fill their financial war chests,” he said. “In fact, if successful, it would raise more than the world’s three largest initial public offerings put together – Saudi Aramco raised $25.6bn when it debuted on the Saudi exchange in 2019; Alibaba raised $21.8bn on the New York Stock Exchange in 2014; and SoftBank raised $21.3bn when it listed in Tokyo in 2018. “We can’t think of a secondary issue that would even come close to matching the ambition of this fundraise … and there just aren’t many companies in the world that have the ability to spend that amount of money productively.” However, such a huge fundraising is also a warning to the markets that for all the many billions of dollars thrown at AI infrastructure, meaningful returns to investors have so far been limited. Jim Reid, a market strategist at Deutsche Bank, said Alphabet was reminding investors of the “unprecedented scale of the AI spending boom”, adding: “Funding of the AI [capital expenditure] boom is becoming an increasingly key topic for markets.” The decision to tap Berkshire Hathaway is eye-catching, too. Under Buffett, known as the Sage of Omaha, Berkshire often stepped in to provide funding for companies that needed cash, such as the famous $5bn investment into Goldman Sachs at the height of the financial crisis. Berkshire has been investing in Alphabet since last summer. In its filing, Alphabet explained that half of the $80bn would be used to “scale AI infrastructure and global compute”, with $40bn set aside to cover “an administrative change to how it meets tax obligations associated with vesting of employee equity awards”.

Google owner Alphabet to sell $80bn in stock to fund AI spending spree
Europe
The Guardian

Democrats oppose Trump officials’ effort to include crypto in 401(k) plans

Democrat Bobby Scott, the ranking member of the House education and workforce committee. Photograph: Bloomberg/Getty ImagesView image in fullscreenDemocrat Bobby Scott, the ranking member of the House education and workforce committee. Photograph: Bloomberg/Getty ImagesUS newsDemocrats oppose Trump officials’ effort to include crypto in 401(k) plansChange backed by labor department would expose workers to greater financial risk, letter shared with Guardian says Congressional Democrats are strongly opposing a US Department of Labor proposal that would allow 401(k) investments to include cryptocurrency, private credit and private equity assets, arguing the change will expose workers to riskier and more complex investments. In a letter shared exclusively with the Guardian, Senator Bernie Sanders, Senator Elizabeth Warren and House education and workforce committee ranking member Bobby Scott of Virginia, argued the rule would expose an estimated $14.2tn of 401(k) retirement savings to volatile assets and would probably not withstand a challenge in court. “This would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments,” said the letter. “The proposed rule is harmful to American workers.” These high-risk assets can experience extreme volatility, the Democrats said, citing Trump’s memecoin, which soared to over $75 per token during Trump’s inauguration in January 2025 but has since dropped to $2 per token. The letter noted seniors in the US were already struggling financially, with more than 22.8% of seniors in the US living in poverty, according to the Organisation for Economic Cooperation and Development (OECD), compared with just 5.1% in Denmark, 5.8% in France, 12.6% in Germany and 14.8 % in Canada. The proposal could also expose workers to higher fees and erode their long-term returns. The Financial Industry Regulation Authority (Finra) cautions that crypto investments “have experienced higher levels of volatility relative to more traditional investment assets” and “the risk of losing all of your investment is significant”. The FBI reported cryptocurrency fraud complaints comprise some of the highest losses for Americans among cyber-enabled fraud, with over $11bn in losses reported in 2025. Consumer advocates argue the proposed rule only puts retirement savings accounts at higher risk while benefiting the crypto industry. “Opening 401ks to these products risks turning workers’ retirement savings into a Ponzi-like scheme that throws a lifeline to an industry scrambling for fresh cash,” Oscar Valdés Viera, a senior policy analyst at consumer advocacy group Americans for Financial Reform, said in a statement. Democrats flagged Trump’s ties to the crypto industry and the conflict of interest it could present to the proposal. Trump’s adult sons have been managing the family’s crypto business, which includes a new Trump-based digital currency, as he carries out his second term in the White House. The ventures in crypto have potentially raised as much as $5bn for the family after the launch of its digital currency in September, according to the Wall Street Journal.

Democrats oppose Trump officials’ effort to include crypto in 401(k) plans
Europe
BBC Business

Instagram AI chatbot tricked by hackers to give access to others' accounts

Instagram says it has resolved an issue which saw hackers trick its AI support tool into giving them access to other users' accounts. According to claims shown in screenshots and videos shared on social media, Instagram's AI chatbot allowed users to "hijack" accounts in recent days. Hackers could reportedly change passwords for other accounts by faking their location and then asking the AI to change the emails associated with them. "This issue has been resolved and we are securing impacted accounts," Meta spokesperson Andy Stone told users in a statement on X. In a response to another post on X, Stone said claims the vulnerability was used to hack into accounts of world leaders were "totally false". Tech news outlet 404media reported that posts about the vulnerability coincided "with a series of high-profile Instagram account takeovers" including a verified account used by Barack Obama when he was in the White House. The former US president's account reportedly posted pro-Iran content before it was recovered. It is unclear how many Instagram accounts were affected by the apparent exploit. But among those claiming to have been impacted were security researcher and former Meta employee, Jane Manchun Wong. Wong, who previously worked at Meta as a security engineer, said in a post on X her Instagram password "got changed without my knowledge and I was getting different password reset attempts throughout yesterday". The incident comes amid concerns about the impact of increasingly capable and common AI systems on people's data and security. Videos shared on social media purported to show how Instagram hacks could take place.

Instagram AI chatbot tricked by hackers to give access to others' accounts