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City bosses say move would be economically disastrous, but union leaders urge likely new PM to ignore ‘vested interests’Battle lines are being drawn between City bosses and trade unions over a possible tax raid on UK banks to help fund Andy Burnham’s package for struggling households this winter.While bankers have warned the move would be “economic suicide”, union leaders have said Britain cannot afford to be “held hostage” by City lobbyists, given growing pressures to find money for defence and cost of living support. Continue reading...

• London-based Tapestry VC has launched Fund III with a total of €70 million ($80 million), co-anchored by the British Business Bank. • The new fund aims to double the firm's scale and specifically target repeat founders at the Seed and pre-Seed stages in Europe. • This strategy follows a 100% "graduation" rate for recent serial founder bets, with companies like Sunrise Robotics, Maze AI, Tracebit, and Requesty AI securing €100 million Series A rounds or acquisition offers.

• Indian markets are expected to open higher on July 2, driven by positive global cues and investor interest in stocks like Maruti Suzuki, Canara Bank, Coal India, and Ola Electric. • V-Mart Retail reported strong Q1 results with revenue increasing 23% year-on-year to Rs 1,089 crore, expanding its network to 591 stores. • Force Motors saw a significant boost in June domestic vehicle sales, which rose 26.63% year-on-year to reach 3,547 units.

• Japan has launched a major AI initiative, committing up to JPY 1 trillion (approximately US$6.2 billion) to develop a domestic AI foundation model. • The project will be led by a consortium headed by SoftBank, with a specific strategic focus on achieving leadership in "physical AI." • This investment aims to reduce Japan's technological dependence on the US and China while enhancing the nation's global manufacturing competitiveness.

• The ASIFMA 2026 Asia-Pacific Capital Markets Survey has identified the top eight markets in the APAC region for ease of doing business. • Leading jurisdictions include Singapore, Hong Kong, Australia, Japan, India, Taiwan, China Mainland, and South Korea. • The survey highlights 11 key product and service lines targeted for expansion, led by Equities, Fixed Income, FX, Asset Management, and ESG & Sustainability.

• Japan's Jibun Bank Manufacturing PMI for June was reported at 54.8, slightly missing the forecasted value of 54.9. • The reading indicates continued expansion in the manufacturing sector, as any figure above 50.0 signals growth. • This data is critical for economists and FX experts to gauge the health of Japan's industrial output and potential monetary policy shifts.

• ResearchAndMarkets.com announced on July 1, 2026, the addition of a comprehensive "Open Banking Market" report to its service offerings. • The market is currently driven by regulatory mandates for API-based data sharing, increased fintech investments, and the adoption of cloud technologies. • These trends are facilitating the growth of embedded finance, Banking-as-a-Service platforms, and more efficient payment systems.

• DBS has completed a US$1 billion significant risk transfer (SRT) deal, marking the first time a Singaporean bank has executed such a transaction. • The deal provides investors with exposure to a corporate loan portfolio while allowing DBS to free up critical regulatory capital. • This strategic move is significant as it optimizes the bank's balance sheet and enhances its ability to manage risk and deploy capital more efficiently.

• Japanese and South Korean stock markets opened higher on July 1, driven by significant gains in major tech firms including Samsung Electronics and SK Hynix. • SoftBank and Kioxia also tracked upward, contributing to the overall rise of the Nikkei 225 and KOSPI indices. • Separately, SpaceX (SPCX) shares closed at $170.86 on Tuesday, marking a 4.06% increase with a trading volume exceeding 82 million shares.

• The Reserve Bank of India (RBI) has identified AI-driven cyberattacks as the primary risk currently facing banks and Non-Banking Financial Companies (NBFCs). • The RBI warned that the global surge in AI investment could lead to wider financial stability concerns, necessitating stronger incident response and digital evidence preservation. • To combat these threats, the Inter-Ministerial Group on the Financial Sector Cybersecurity Strategy, mandated in August 2025, is working to harmonize regulations across the sector.