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The Lead: Compensation Scheme Faces Legal Threat The City watchdog has warned that a wave of legal challenges to the compensation scheme for victims of the motor finance scandal could leave drivers waiting three more years for payouts, while piling £6bn of extra costs on to lenders. The Legal Battle: Four Parties Challenge FCA Scheme Bosses at the Financial Conduct Authority (FCA), who have consistently hit out at lenders and a consumer claims group for challenging its scheme, told MPs the scandal could affect lenders for years, and have "consequences" by stretching its resources. The FCA is facing legal challenges from four parties over its compensation scheme: lenders Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance, as well as the consumer group Consumer Voice, which has teamed with the claims legal firm Courmacs Legal to assert that the drivers are being short-changed. The Financial Impact: £6bn in Additional Costs The challenges dashed the regulator's hopes of drawing a line under the scandal, in which drivers were overcharged for loans as a result of commission payments between lenders and car dealers between 2007 and 2024. "We estimate it would cost lenders over £6bn more and take three years to resolve claims through a complaints-led approach," the FCA chief executive, Nikhil Rathi, said in a letter released before the committee hearing. That would affect not only the lenders challenging the scheme, but the wider group of banks implicated in the scandal, including Lloyds Banking Group, Santander UK and Barclays. The Industry Consequences: Payouts Delayed Indefinitely The FCA is instead being hauled to the upper tribunal, where a judge would be asked to review the merits of the long-awaited £9.1bn compensation programme. That could end up delaying payouts to drivers, which were widely expected to begin as early as this summer. Even if the judge backs the FCA scheme, that would delay payouts into 2027, the FCA deputy chief executive, Sarah Pritchard, told MPs on the Treasury committee on Tuesday. If it is shot down, "then we will need to consider what the options may be," she added. The Future Outlook: Multiple Scenarios Emerge That would include launching a consultations on a newly crafted compensation scheme, or abandoning it entirely and letting complaints be sorted out through the Financial Ombudsman Service (FOS), Pritchard said. Labour MP John Grady questioned the FCA's estimates, noting that the process could last even longer than its forecast. "The timetable you've set out, I suspect, doesn't take into account the fact that the judicial review could then go to the court of appeal if it's a point of law, and then the supreme court," he said. The FCA said it would also take near-£3m hit from being dragged through the courts. That could result in financial "trade-offs", with the FCA – which is funded by the companies it supervises – having to "pivot resources" internally, Pritchard said.

Record $906 bn Fossil Fuel Lending by Top Banks in 2025The coalition of environmental groups behind the Banking on Climate Chaos report found that the world’s 65 largest banks committed $906 bn to the fossil‑fuel sector in 2025, an “unfathomable” increase that locks in additional coal, oil and gas production.Scale of the New Lending SurgeNew financing rose by $64 bn – roughly 8% compared with 2024 – signalling that major lenders are expanding, not curbing, exposure to high‑carbon assets.JPMorgan Chase: $58 bn (up 13% YoY), remains the top financier.Bank of America: second‑largest lender.Japanese banks MUFG and Mizuho Financial follow closely.Citigroup rounds out the top five; Barclays is the highest‑ranked British bank at #8.Financial Breakdown and ConcentrationFourteen banks – dubbed the “dirty dozen” – accounted for 40% of all fossil‑fuel financing. Six jurisdictions (the US, Canada, Japan, China, the UK and the EU) supplied the bulk of the capital.$508 bn was pledged for expansion of existing fossil‑fuel sites – a 27% jump on 2024.Three US operators – Venture Global, Enbridge and Energy Transfer – were the biggest recipients.Implications for Climate Goals and Industry CommitmentsThe financing trajectory directly conflicts with the Paris Agreement’s 1.5°C target, which requires near‑total decarbonisation of energy supply. Since 2015, banks have already funneled $8.7 tn into fossil‑fuel extraction, widening the emissions gap.Recent political shifts, including the resurgence of climate‑skeptical leadership in the US, have weakened voluntary initiatives such as the Net‑Zero Banking Alliance, which was disbanded after key members withdrew.Looking Ahead: Regulatory Pressure and Market RealignmentAnalysts warn that voluntary pledges are insufficient; stronger regulatory frameworks and legislative action are likely to emerge in the major financial centres.If policymakers tighten lending standards, banks may face a forced reallocation of capital toward renewable‑energy projects, potentially reshaping the profitability landscape for both traditional and green finance.

The EU's Sanctions Expansion The European Union is seeking to boost a $1.5 trillion hit on Russia's economy by widening its sanctions web. The bloc is weighing new restrictions on another 80 entities and individuals supporting Russia's war on Ukraine, EU foreign policy chief Kaja Kallas told reporters on Monday in Cyprus, following an informal meeting of EU defence ministers. Targeting Russia's Military Industrial Complex Eighty new designations targeting Russia's 'military industrial complex, human rights violators and propagandists' have been proposed, Kallas said. 'Putin is losing money, men and momentum,' Kallas said, noting that Western sanctions have already cost Russia an estimated $1.2 to $1.5 trillion. 'That is precisely why Russia is escalating its attacks on Ukrainian civilians.' The Impact on Russia's Economy 'Brick by brick, we are collapsing the foundations of Russia's war economy,' Kallas said. The ministers' meeting also discussed the future of a previously contested 6.6-billion-euro ($7.6-billion) fund intended to reimburse countries for arms supplied to Ukraine. Hungary, in its latest climbdown since Prime Minister Peter Magyar replaced Viktor Orban - a close ally of Russian President Vladimir Putin - in April, has told its fellow EU members that it will drop its long-held opposition to the fund. The Future of EU-Russia Relations Kallas has proposed that the funds should be used not only to reimburse member states for past weapons deliveries but also to finance joint weapons procurements and EU military assistance. The EU has been seeking to ramp up the pressure on Moscow as the United States has relaxed its stance. In March, the bloc extended sanctions targeting some 2,600 individuals and entities, including travel restrictions and asset freezes.

The Lead: UK Boosts Controversial Thames Crossing ProjectMinisters have earmarked more than £170m extra to help build the Lower Thames Crossing road tunnel, fuelling concerns over the "spiralling" costs of one of the UK's largest planned infrastructure projects. The proposed £11bn route under the Thames between Kent and Essex is already estimated to cost more each mile than the HS2 high-speed rail link from London to Birmingham.The Event Details: Government Takes Direct Control of Mega-ProjectThe £174m of extra cash will be used to fund public works on both sides of the tunnel and will be found from existing budgets, the Department for Transport (DfT) said. The Guardian revealed last year that the DfT had taken direct control of the Lower Thames Crossing project, forcing National Highways to relinquish its role as the main agency involved in planning and oversight. A licence to run the new tunnel and the existing Dartford tunnel about 7 miles to the west is expected to be handed to a private consortium in 2029, offered in perpetuity and overseen by a regulator.The Data Analysis: Soaring Costs and Financial CommitmentsThe chancellor, Rachel Reeves, and the transport secretary, Heidi Alexander, are both keen to press ahead with the project, which they have said is "vital" and will ease congestion on the M25. The DfT confirmed it has yet to publish an "outline business case", which would usually be produced before officials embark on large-scale works. Despite the lack of an initial review document, the government allocated £590m to the project in the 2025 spending review and a further £891m in last autumn's budget. The £1.48bn total was then given a further £174m boost in a road investment strategy document published in March, taking the total to £1.66bn. In total, the government has spent £3.1bn on the Lower Thames Crossing, including significant funds spent on securing planning permission.The Impact Analysis: Infrastructure Policy Under ScrutinyThe move to allocate extra funds to the project from the broader National Highways budget has prompted criticism, with campaigners accusing the DfT of siphoning money from the roads agency to boost spending on the tunnel without telling parliament. Rebecca Lush, roads campaigner at the Transport Action Network accused the DfT of hunting for funds to feed a tunnel project "quickly running out of control". She said: "At the autumn budget, the chancellor announced the 'final tranche' of public funds for the Lower Thames Crossing. Yet now we find out that the DfT have bunged another £174m towards this privatised road project, whilst refusing to publish the outline business case. The spiralling costs and secrecy have all the hallmarks of HS2, with LTC already costing more per mile than HS2. Whilst the government is nationalising the railways it is privatising our roads, demonstrating the utter incoherence in transport policy."The Prediction: Future of UK Infrastructure Projects at CrossroadsA DfT spokesperson said that the road tunnel was a vital infrastructure project, adding: "We have committed £3.1bn to the Lower Thames Crossing to date, including £891m to complete the publicly funded works needed to unlock private investment. While no decisions have been made on how users will be charged, any tolls will be regulated by an independent regulator to keep prices fair for drivers." With the completion date now scheduled for 2034, the project faces ongoing scrutiny as a test case for how the UK balances major infrastructure development with financial prudence and transparency in an era of constrained public finances.

Executive Summary of the NAO FindingsNational Audit Office investigation reveals that several senior royals receive highly subsidised or rent‑free accommodation, with private income generated from sub‑letting crown estate properties.Detailed Property Arrangements Across the Royal FamilyPrincess Beatrice & Princess Eugenie: live rent‑free in royal palaces; rent set at 68% and 64% of open‑market value respectively; funded by King Charles from the Duchy of Lancaster.Duke and Duchess of Edinburgh (Edward & Sophie): pay a pepper‑corn rent for Bagshot Park after a £5 million upfront lease payment; generated private income by sub‑letting the stable complex.Prince and Princess of Wales (William & Catherine): pay £307,200 annually for Forest Lodge plus £19,800 for Staff Lodge 1; crown estate covered £396,993 of refurbishment.Prince and Princess Michael of Kent: rent of an apartment now 63% of 2026 market value, a 34% increase since 2020; historically a pepper‑corn £69‑per‑week lease.Princess Alexandra & Marina Ogilvy: ground rent £1,500 for Thatched House Lodge after a £670,000 premium; Marina pays £17,436 annual rent for a Windsor cottage.Financial Scale of the ArrangementsKing Charles covers accommodation costs for non‑working royals, sourced from private Duchy of Lancaster income.Up‑front lease payment for Bagshot Park: £5 million; restoration spend: £1.38 million.Annual rent for Forest Lodge: £307,200; crown‑funded repairs: £396,993.Rent‑free palace apartments are maintained by the sovereign grant, offset by the above private rents.Implications for Public Accountability and Royal FinancesThe report highlights a blend of private income and public funding that blurs the line between personal benefit and taxpayer support, prompting calls for clearer reporting and potential reform of crown estate leasing practices.Looking Ahead: Potential Reforms and Ongoing ScrutinyParliamentary committees may demand tighter oversight of crown estate leases, and future NAO audits are likely to focus on ensuring that any rent‑free or subsidised arrangements are fully transparent and justified against public interest.

The Impact of the US Naval Blockade on Iran's Oil Exports Iran's crude oil exports fell to their lowest level in at least six years in May, as a United States naval blockade squeezes Tehran's most important source of income amid a fragile ceasefire between the two nations. The Blockade's Effect on Iranian Oil Revenues According to data from trade intelligence firm Kpler, Iranian crude oil and condensate exports fell from close to 2 million barrels per day (bpd) to below 300,000bpd in May. Using a conservative price estimate of $90 a barrel, exports of 300,000bpd would generate about $27m in revenue each day, or roughly $837m over the course of May. The Financial Impact on Iran The figures suggest Iran's oil revenues in May were approximately 84 percent lower than they were in March. If Iran expected monthly revenues on the scale of its March returns, it has lost $5.8bn over April and May. Iran's Oil Production and Storage For now, yes, Iran is still producing oil. However, Tehran is increasingly being forced to store the crude that it cannot sell. About 147 million barrels of Iranian crude and condensate are currently being held in floating storage. The Future Outlook Analysts say the blockade is ultimately a contest over which side can sustain economic pain for longer. While lower oil revenues could gradually undermine Iran's ability to finance military operations and support its wartime economy, the costs are not borne by Iran alone.

The Rise of Reform UK's Billionaire Donors Keir Starmer may be relaxed about allowing millions from cryptocurrency billionaires to flow into Reform UK's coffers, but Labour MPs are tearing their hair out every time the quarterly data on electoral finance drops. The Scale of the Donations The latest figures show a further £7m went to Reform UK from just two men, Christopher Harborne and Ben Delo. Harborne, a crypto and aviation fuel investor based in Thailand, has given £15m to Reform and £5m to Farage personally. Delo, who co-founded the BitMEX trading platform, has become the UK's youngest self-made billionaire. The Data Analysis Harborne's donations to Reform UK: £15m Delo's donations to Reform UK: £7m (recent) and previously undisclosed amounts Labour's total private donations in Q1 2024: £6m The Impact Analysis The mood among many backbenchers about Reform's riches is panicked. 'It is unsustainable,' says another Labour MP, who would back any amendment to the government's new electoral finance bill to broaden the cap on overseas donors to all donors regardless of location. The Prediction Despite the opportunity of the new electoral finance bill, there is very little optimism among campaigners that the government will change its mind about a cap, or even an annual spending limit. However, some believe Andy Burnham, who backs electoral reform and a more consensual politics, may be more sympathetic to the idea of getting big money out of Westminster.

The Vision for a Just and Sustainable FutureImagine a future in which everyone enjoys high levels of wellbeing; where 90% of the world's population doubles their income but works half the hours we work today. A world in which the bottom half of humanity sees its share of global wealth rise from just 2% today to 30%; a world where we consume enough, but nobody over-consumes. And imagine achieving this on a planet that can comfortably sustain human life without its climate breaking down.Against the bleak techno-authoritarian futures now being sold to us, a radical new vision for global progress in the 21st century feels urgently needed. The most credible vision is one in which the habitability of the planet is a precondition for human development and equality.The Three Pillars of Global TransformationOur new report examines the conditions required for the world to progress towards this ambition on an economically and ecologically compatible path, by the end of the century. Its conclusion? A global transformation that reconciles planetary habitability and high standards of wellbeing for all is possible – as long as three conditions are simultaneously met.Fast decarbonisation of energy systems is necessary. But we also need a major shift away from overconsumption towards 'sufficiency'. This would involve a sharp reduction in labour hours and the use of raw materials, along with big changes in consumption patterns, food habits, land use and forest cover. Financing and politically sustaining decarbonisation and sufficiency will require a drastic reduction in inequality of income, wealth and power, between countries and within them.Quantifying the Path to Global JusticeThe Global Justice Report is the first attempt to propose a fully quantified plan for this transition. It combines four dimensions that today's debates often treat separately: redistribution at the world scale; a deep reform of the international financial and economic order; a radical transformation of energy systems; and substantial shifts in consumption patterns. Compared with most climate scenarios (including those of the Intergovernmental Panel on Climate Change), the main novelty is that we model all four dimensions together – and place inequality and sufficiency at the centre of the analysis.The Economic Convergence by 2100What would this transition deliver? At its heart is convergence between countries. Average per capita national income, today separated by a 16-fold gap between the poorest (€290 a month in sub-Saharan Africa) and richest (€4,590 in North America/Oceania) regions of the world, would rise towards a common level of about €5,000 a month in all countries by 2100.But this convergence is not just monetary. Annual working hours per employed person would fall from roughly 2,100 to about 1,000, continuing the long shift towards shorter working time; while the share of global working hours devoted to education and health would rise from 11% to 43%. Women and men would converge on equal pay and on an equal share of economic and domestic labour.Climate and Wealth TransformationAll of this would unfold within a habitable climate. Thanks to sustainable convergence and fast decarbonisation, global heating would reach 1.8C, against more than 4C on current trends.None of this will be possible without a deep contraction of inequality. The income scale between individuals would narrow to a ratio of one to five and the wealth scale to one to 10, prolonging what western and Nordic Europe achieved over the 20th century. The share of global wealth held by the poorest half of humanity would rise from 2% to 30%, while the share held by the billionaire class would fall from 6% to 0.05%.Financing the Global Justice TransitionThese shifts would be financed and governed through new institutions. A global justice fund would spend an average of 10% of world GDP a year from 2026 to 2060 on country dividends and investment, against the less than 0.4% that aid and the combined budgets of the UN, the International Monetary Fund (IMF) and the World Bank represent today.Its resources would come from a world sovereign fund holding 10% of the world capital stock, a global wealth tax rising to 20% a year on billionaires and a global income tax rising to 90% at the very top, each touching about 1% of the world's population.The Political Path ForwardThe result is not a transfer from many to few but a gain for almost everyone. Close to 90% of the world's population would double their income between 2026 and 2100, and once leisure and a habitable planet are counted, more than 99% come out ahead.Our report is part of a broader international agenda for planetary habitability, social justice and reform of the global financial architecture – including the Bridgetown agenda launched by Barbados in 2022, the Sevilla Commitment on development finance, the UN tax convention process, and G20 initiatives led by Brazil and South Africa on global inequality.A habitable, equal and prosperous 21st century is materially possible. The carbon budget allows it and history offers precedents at comparable scales: universal suffrage, the universalisation of healthcare and education, the halving of working hours and the sharp compression of inequality over the 20th century. Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical. What it will take instead is political choice, and the hard work of coalition-building behind it.

Keiko Fujimori has moved from the shadow of her father’s legacy to become the focal point of Peru’s 2026 presidential race, commanding significant public attention and party resources. Keiko Fujimori’s Political Trajectory from First Lady to Party Leader 1990s: Served as first lady during Alberto Fujimori’s presidency. 2009: Elected president of the Popular Force party. 2011, 2016, 2021: Ran for president, finishing second in each election. 2024‑2025: Oversaw a resurgence of Popular Force in congressional elections, securing 28 seats. Polling Data Shows Continued Voter Support National Ipsos poll (May 2026): 31% intention to vote for Fujimori, ahead of the nearest rival at 24%. Urban vs. rural split: 38% support in Lima, 24% in Andean highlands. Demographic trends: Strong backing among voters aged 35‑55 who cite economic stability. Implications for Peru’s Democratic Stability Polarization: Fujimori’s candidacy deepens the divide between Fujimorista supporters and anti‑Fujimori movements. Judicial scrutiny: Ongoing investigations into alleged campaign‑finance irregularities could affect public perception. International outlook: The United States and European partners monitor the election for signs of democratic backsliding. Scenarios for the 2026 Presidential Race First‑round victory: If poll momentum holds, Fujimori could secure the presidency outright, reshaping policy on mining, security, and foreign investment. Run‑off dynamics: A second‑round contest may force coalition‑building with centrist parties, potentially moderating her platform. Electoral setbacks: Legal challenges or a surge in opposition turnout could keep Fujimori out of the final ballot, reinforcing a fragmented Congress.