Connect with us

News

Rachel Reeves says Labour would ‘unashamedly champion’ the City

Published

on

Rachel Reeves says Labour would ‘unashamedly champion’ the City

Unlock the Editor’s Digest for free

Shadow chancellor Rachel Reeves has said she has no plans to restore a cap on bankers’ bonuses, as she vowed to “unashamedly champion” Britain’s financial services sector if Labour wins the general election.

Reeves will this week launch Labour’s plan for financial services, promising to cut red tape, embrace artificial intelligence, bolster regional financial centres and promote green finance.

But Labour’s blueprint, drawn up with advice from City grandees, is most notable for what it does not do: Reeves recognises that the sector does not want a big political upheaval after years of post-Brexit change.

Advertisement

“The last thing we need is a massive upheaval,” said one ally of Reeves. “Rachel recognises that stability and security is needed.”

Reeves said that she would not reintroduce the post-financial cap on bankers’ bonuses — set at 200 per cent of regular pay — which was scrapped in 2022 by Liz Truss’s chancellor Kwasi Kwarteng.

“The cap on bankers’ bonuses was bought in in the aftermath of the global financial crisis and that was the right thing to do to rebuild the public finances,” she told the BBC. “But that has gone now and we don’t have any intention of bringing that back.”

The financial services plan, seen by the Financial Times, welcomes some recent Conservative regulatory changes in the City, including chancellor Jeremy Hunt’s Edinburgh Reforms and changes to the Solvency II insurance regime.

Reeves’s argument is that many of them did not go far enough. “Too often in the last decade, British politicians have sounded embarrassed about the sectors we excel in,” she told the FT. “That will change with Labour.”

Advertisement

“The next Labour government will unashamedly champion the UK’s financial services sector,” she added.

Former Labour leader Ed Miliband once branded parts of the City “predators”, while his successor Jeremy Corbyn had a dismal relationship with the Square Mile. Pro-Brexit Tories have also clashed with the City in recent years.

The financial services plan will be launched on Thursday at a Labour business day attended by 400 business leaders, including from companies such as Google, Shell, AstraZeneca, Airbus and Goldman Sachs.

Reeves hopes her financial services plan, drawn up with shadow City minister Tulip Siddiq, will help to cement the bonds between Labour and business.

Nigel Higgins, Barclays chair and one of a number of City figures who advised Labour on its financial services plan, said the party’s report recognised the “importance of international competitiveness”.

Advertisement

However Labour has been criticised by private equity bosses over a plan to close a “carried interest” tax loophole that allows buyout bosses to pay less tax on part of their earnings.

The Labour report includes several proposals, some of which have been announced before, and others that will be subject to consultation:

  • A review of City regulation to cut outdated rules and reduce overlap between different watchdogs

  • Regulating the buy now, pay later sector and “exploring” the prospects for long-term mortgages

  • Endorsing the use of artificial intelligence in the City and becoming a “global standard setter”

  • Building a more “collaborative relationship with the EU”, including mutual recognition of professional qualifications

  • Empowering the British Business Bank to invest more in growth capital

  • Rolling out 350 “banking hubs” to help people have free access to banking services

Advisers on Labour’s plan, acting in a personal capacity, included Sir John Kingman, chair of Legal & General; David Schwimmer, chief executive of the London Stock Exchange Group; and Baroness Shriti Vadera, chair of Prudential.

Charles Randell, former chair of the Financial Conduct Authority, also advised on the plan and said it provided for “stable and proportionate regulation”.

The Tories have argued Labour would be bad for business, targeting in particular the party’s £28bn-a-year spending plan for green investments. The Conservatives claim this would force Labour to increase taxes or break fiscal targets to reduce debt as a proportion of GDP in five years’ time.

Advertisement

Some in the City are also anxious that Reeves, if she becomes Labour chancellor, would target business with higher taxes to raise funds for struggling public services. Labour has said it has no plans to do so.

Prime Minister Rishi Sunak is expected to announce the line-up of his business advisory council for 2024 on Wednesday.

News

Supreme Court reinstates Republican-favored Alabama congressional districts

Published

on

Supreme Court reinstates Republican-favored Alabama congressional districts

The U.S. Supreme Court

Tasos Katopodis/Getty Images


hide caption

toggle caption

Advertisement

Tasos Katopodis/Getty Images

The Supreme Court on Tuesday cleared the way for Alabama to use a congressional district map favored by Republicans.

The court, in an unsigned order, overturned a three-judge district court panel that found that the map is “tainted by intentional race-based discrimination.” The court’s three liberals publicly dissented.

The ruling means that Alabama’s 2026 midterm elections will feature six Republican-leaning districts and one Democratic-leaning one, as opposed to a map with only five safe Republican seats. Democrat Shomari Figures, who represents Alabama’s Second District, will likely lose his seat as a result of the high court’s ruling.

Advertisement

The story of Alabama’s congressional map is long and tortured. It began in 2021, when the state implemented a new map to account for population changes in the census. The map featured only one majority-black district out of seven, even though the state is more than one-quarter Black.

Voters immediately sued, claiming the map illegally diluted minority votes in violation of the Voting Rights Act and the Constitution. Lower court judges agreed, ruling that the state must draw a map with two districts where Black voters have a realistic chance of electing their candidate of choice. The Supreme Court more than once has ordered Alabama to draw a compliant map.

But the state has refused and instead continued to litigate the case. On Tuesday, that tactic paid off.

What changed? In April, the Supreme Court’s conservative supermajority all but gutted what remains of the Voting Rights Act, ruling that states cannot purposefully draw districts that are majority-minority.

Alabama then asked the high court to reinstate the state’s old map, under the theory that this new ruling meant that it was permissible to use a map with only one majority-Black district. In an unsigned, unexplained order in May, the high court essentially reversed its previous opinions, and allowed Alabama to use the old map for the upcoming midterm elections.

Advertisement

This set off a flurry of activity in Alabama. By the time the Supreme Court issued its May order, absentee balloting had already begun, using the court-drawn map. So Republican Governor Kay Ivey cancelled elections and scheduled a special primary for August for the affected congressional races.

The case, however, was not over.

In its ruling, the Supreme Court had ordered a lower court panel to continue evaluating Alabama’s map in light of its recent Voting Rights Act decision. And just 15 days after that order, the panel, composed of three Republican judges—two of them Trump appointees—concluded unanimously that even under the Supreme Court’s new standards, the plan for a single black district was “intentionally discriminatory.”

So, once again, Alabama returned to the Supreme Court, arguing that the map was partisan, not racially discriminatory. In short, that the Republican legislature simply drew the map to elect more Republicans. And that under the Supreme Court’s new interpretation of the Voting Rights Act, the GOP map should be allowed to stand.

The court’s conservative agreed, writing that the lower court “did not heed the presumption of legislative good faith.”

Advertisement

The court’s three liberals publicly dissented, castigating the conservative majority for failing to abide by its 2006 decision in the case of Purcell v. Gonzalez. That decision declared that courts should not change election rules too close to an election.

Justice Sonia Sotomayor, in her dissent, said the court “debases the democratic process” and “corrodes the rule of law by rewarding Alabama’s gamesmanship and outright defiance of court orders.”

Tuesday’s decision is the latest in a series of Supreme Court rulings that could well reshape the 2026 midterm elections, making it much harder for Democrats to prevail.

Continue Reading

News

Map: 3.7-Magnitude Earthquake Shakes the San Francisco Bay Area

Published

on

Map: 3.7-Magnitude Earthquake Shakes the San Francisco Bay Area

Advertisement

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

Advertisement

A minor, 3.7-magnitude earthquake struck in the San Francisco Bay Area on Tuesday, according to the United States Geological Survey.

The temblor happened at 9:44 a.m. Pacific time about 4 miles southeast of Cloverdale, Calif., data from the agency shows.

Advertisement

U.S.G.S. data earlier reported that the magnitude was 3.6.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Advertisement
Advertisement

Aftershocks detected

Subsequent quakes have been reported in the same area. Such temblors are typically aftershocks caused by minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.

Advertisement

Quakes and aftershocks within 100 miles

Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.

Advertisement

When quakes and aftershocks occurred

 All times are Pacific time. The New York Times

Advertisement

Advertisement

Sources: United States Geological Survey (epicenter, aftershocks, shake intensity); LandScan via Oak Ridge National Laboratory (population density) | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Tuesday, June 2 at 12:59 p.m. Eastern. Aftershocks data is as of Tuesday, June 2 at 1:59 p.m. Eastern.

Continue Reading

News

Promoting Advanced Artificial Intelligence Innovation and Security

Published

on

Promoting Advanced Artificial Intelligence Innovation and Security

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1.  Purpose.  The United States continues to lead the world in Artificial Intelligence (AI) because of the enormous talent and innovation of our AI industry, and because we refuse to stifle this innovation with overly burdensome regulation.  My Administration has unleashed tremendous technological growth and economic investment in AI by slashing the bureaucratic constraints that the prior administration placed on America’s AI developers and researchers, and by instead encouraging AI innovation and accelerating responsible AI adoption across government and industry. 

Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies (agencies), and components.  As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country.  We will continue to lead an America First cybersecurity effort that enhances both our national security and our global AI dominance.

It is the policy of the United States to promote AI innovation and security by working collaboratively with the private sector to modernize government and private sector information systems and harden them against external threats; to protect American ingenuity and intellectual property from exploitation and theft by adversaries; and to cultivate America’s advanced AI-enabled capabilities.

Sec. 2.  Upgrading American Systems for Advanced AI.  (a)  Within 30 days of the date of this order, the Committee on National Security Systems shall prioritize the cyber defense of National Security Systems, as defined in 44 U.S.C. 3552(b)(6)(A), by taking appropriate and expeditious action consistent with the purpose of this order.

Advertisement

(b)  Within 30 days of the date of this order, the Secretary of War shall prioritize the cyber defense of Department of War information systems by taking appropriate and expeditious action consistent with the purpose of this order.

(c)  Within 30 days of the date of this order, the Secretary of Homeland Security, through the Director of the Cybersecurity and Infrastructure Security Agency (CISA), in consultation with the Director of the Office of Management and Budget (OMB), the Assistant to the President for National Security Affairs, and the National Cyber Director, shall release Binding Operational Directives and other guidance as appropriate to:

(i)    expedite and prioritize the cyber defense of civilian Federal Government information systems in order to protect our Nation’s vital functions;

(ii)   establish or expand Federal programs and cybersecurity services that enhance AI-enabled defensive tools; and

(iii)  facilitate access to cybersecurity tools and services including, where appropriate, covered frontier models for agencies, State and local authorities, and operators of critical infrastructure such as rural hospitals, community banks, and local utilities.

Advertisement

(d)  Within 30 days of the date of this order, the Secretary of the Treasury, in consultation with the National Cyber Director, the Secretary of War, through the Director of the National Security Agency (NSA), and the Secretary of Homeland Security, through the Director of CISA, shall form an AI cybersecurity clearinghouse, in voluntary collaboration with the AI industry and operators of critical infrastructure, that coordinates and deconflicts scanning for software vulnerabilities, discovers and validates such vulnerabilities, and coordinates and prioritizes remediation and distribution of vulnerability patches.

(e)  Within 30 days of the date of this order, the Director of OMB, in coordination with the National Cyber Director and the Director of CISA, shall determine whether any Federal grant programs have available and relevant funding that can be directed toward applicants developing advanced AI vulnerability detection.

(f)  Within 60 days of the date of this order, the Director of the Office of Personnel Management shall expand the United States Tech Force Information Cybersecurity Specialist hiring and placement pathways.

Sec. 3.  Secure Frontier Model Deployment.  Within 60 days of the date of this order, the Secretary of the Treasury, the Secretary of War, through the Director of NSA, and the Secretary of Homeland Security, through the Director of CISA, in consultation with the White House Chief of Staff, through the National Cyber Director, the Assistant to the President for Science and Technology (APST), and the Secretary of Commerce, through the Director of the National Institute of Standards and Technology, and in coordination with other agencies, as appropriate, shall:

(a)  develop and maintain a classified benchmarking process to assess the advanced cyber capabilities of AI models and determine the threshold at which an AI model should be designated a “covered frontier model” for the purposes of this order, sharing such assessments with AI developers and researchers as appropriate.  Such a determination shall be made by the Director of NSA, in consultation with the National Cyber Director, the APST, the Director of CISA, and other representatives of the Department of War, as appropriate.

Advertisement

(b)  design a voluntary framework with AI developers through which developers would be able to:

(i)    engage the Federal Government to determine whether model(s) under development meet the designation of “covered frontier model”;

(ii)   provide the Federal Government with access to covered frontier models, subject to appropriate confidentiality, cybersecurity, insider-risk, and intellectual-property protection, use, and nondisclosure requirements, for a period of up to 30 days before they plan to release such models to other trusted partners; and 

(iii)  collaborate with the Federal Government to select trusted partners that will have early access to covered frontier models to promote secure innovation and strengthen the cybersecurity of critical infrastructure.

(c)  Nothing in this section shall be construed to authorize the creation of a mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models.

Advertisement

Sec. 4.  Protection Against Criminal Actors.  The Attorney General shall prioritize the enforcement of 18 U.S.C. 1028, 18 U.S.C. 1030, 18 U.S.C. 1343, and all other applicable Federal criminal laws against anyone who utilizes AI to illegally access or damage a computer without authorization, or who utilizes AI while engaged in such illegal access to further any other crime.  This includes breaching any public or private information technology system, or employing AI agents to unlawfully access data or information that is subsequently used for a criminal or unlawful purpose.

Sec. 5.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

Advertisement

(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d)  The costs for publication of this order shall be borne by the Department of War.

                             DONALD J. TRUMP

THE WHITE HOUSE,

    June 2, 2026.

Advertisement
Continue Reading
Advertisement

Trending