Business
Treasury Yields, Dollar Little Changed on Inflation Data, Iran Tensions
Treasury yields and the dollar are little changed from Tuesday, as U.S. inflation meets expectations and the war in Iran flares up.
The 12-month May CPI accelerates to 4.2% from 3.8% in April. Ex-energy and food, core inflation is a milder 2.9%, up from 2.8%. The Fed is expected to keep rates unchanged next week while markets price in high odds of a hike later.
The U.S. attacks Iran and President Trump says Tehran has taken too long to make a deal. Crude futures rise 1%. The WSJ Dollar Index is flat.
Business
Wealth managers face a new challenger: their clients’ AI chatbots
Boy Wirat | Istock | Getty Images
A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
Even high-net-worth clients who can afford top-notch advisors are asking artificial intelligence chatbots like Claude for portfolio recommendations and tax advice, wealth management leaders told CNBC.
“My personal opinion is that ChatGPT is the single largest investment advisor in the world right now,” said Matthew Fleissig, CEO and cofounder of Pathstone, a registered investor advisory with $185 billion in assets.
Asking AI for a second opinion can help clients come up with informed questions and have deeper conversations with their financial advisors, according to firm leaders. That said, the practice comes with risks, such as getting incorrect advice or having personal information leaked.
“I think for a client who’s dealing with something that’s very technically complex and doesn’t have that grasp, it may be harder to differentiate between a hallucination or an error of fact versus a good insight that the engine has,” said Michael Zeuner, managing partner at WE Family Offices.
Moreover, as these large language models get more sophisticated and popular, wealth advisories – especially those that target the mass affluent — will have to do more to justify their fees, according to Morningstar’s Sean Dunlop. He told CNBC that wealth management stocks have already pulled back as AI has encroached on the industry, such as an AI tax planning tool by Altruist released in February or a personal finance feature launched by OpenAI in May.
Dunlop said it’s unlikely that AI will wipe out traditional wealth managers — but they will do more than help advisors become more efficient.
“I think the truth’s probably somewhere in the middle where the service level is going to get better. You probably need fewer advisors to serve the pool of assets, which might itself expand a little bit, and there’s going to be some group of customers that are willing to do it themselves that weren’t before,” said Dunlop, director of equity research at Morningstar.
“At a minimum, it ought to raise the floor. Like, if you’re an advisor and you’re keeping half your client’s balance in cash in an IRA, then this really ought to be a wake up call,” he added.
AI enters the chat
Pamela Lucina of Northern Trust said she first noticed clients using AI to double-check the firm’s advice about 18 months ago and that it has become a more frequent occurrence since.
“We’ve had clients tell us directly that they’re going to ask AI the questions that they’re going to ask us,” said Lucina, the firm’s chief fiduciary officer and leader of its trust and advisory practice. “I think what they’re often testing us for is not the answer, but having more specifics or evidence that we’ve actually done these things before.”
Many prospective clients also use LLMs to help them decide whether to work with Northern Trust, she added. Before the rise of AI chatbots, typically only billionaire clients would ask the firm to submit a formal proposal for managing their wealth, according to Lucina. Now she estimates about half of clients send requests for proposals, even those with as little as $100 million in assets. Some have told the firm that they used ChatGPT or other LLMs to formulate their highly specific questions, she said.
This process can save time and make client meetings more efficient, Lucina said.
“Less of our conversation is about information sharing and more about focusing on the outcome they are trying to achieve and how it actually applies to families,” she said. “The fact that there’s more information out there is not a threat. It can take a conversation to the next level.”
Zeuner said he first noticed clients talking openly about feeding portfolio recommendations into LLMs about five months ago. It has become so common that his firm is considering whether to run every recommendation in Microsoft Copilot so advisors can prepare for questions clients may ask.
He said he views the use of LLMs as a second set of eyes and a positive trend.
“The AI is enabling and empowering them to get involved, to learn, to ask questions, to get a second opinion,” he said. “Whether they challenge us or validate, it doesn’t matter; they’re engaged.”
The pitfalls of AI advising
Still, Zeuner said he’s concerned about clients not catching AI-made mistakes. For instance, he said, if a client uploads a trust document into a LLM and asks a question about it days later, the chatbot might hallucinate details of the document in its answer.
Zeuner also said he’s seen LLMs make simple mistakes, such as ChatGPT telling a client that two ETFs in his portfolio appeared to be identical. While the ETFs tracked the same index, one was equal weight and the other was cap-weighted, he said.
When Lucina asked an LLM for examples of how clients could save on capital gains taxes, it got the math completely wrong, she said.
“I generally use AI to poke holes, to try to find criticisms in a way of thinking, and I think it is good for that,” she said. “But more often than not, especially on the advice side, it’s wrong.”
More crucially, clients risk exposing identifying information if they use a personal account, even if they spring for a paid plan. Financial institutions, including wealth advisories, typically pay for enterprise plans that come with strict data protections. For instance, WE Family Offices has an agreement with Microsoft Copilot that data the firm enters is never used to train public AI models, according to Zeuner.
“We talk to [clients] about general best practices for using these LLMs, given their high profiles and wealth,” he said. “If you have an AI assistant capture every meeting, where is that transcript going? Do you know how it is stored? Who has access to it and how secure is it?”
Lacking a human touch
Fleissig said that while AI chatbots like Anthropic’s Claude and OpenAI’s ChatGPT are capable of great analysis, that’s not the same as actionable advice.
He described LLMs as “semi-objective tools” that aren’t always equipped to make subjective decisions. A trusted advisor can guide clients to make the choice that’s right for them based on a variety of factors, he said.
“There is value in human-to-human interaction from a relationship standpoint because there’s so much nuance to it,” he said.
And though an LLM could make an argument for investing in pre-initial public offering Anthropic, for example, it can’t put that advice into practice and get you access to a funding round.
“You get access because of relationships that you have, and you also have all these experiences that you’ve had with clients,” Fleissig said. “Deals today are still not getting done via AI.”
Vince Lumia, a Morgan Stanley veteran of 27 years, said that the value of human touch is more easily overlooked during bull markets. That changes during times of crisis or uncertainty, said Lumia, who oversees Morgan Stanley’s 16,000-plus financial advisors.
“The world sort of starts to think that it’s actually easy. The one guarantee I could have is that the markets will be volatile, and they won’t go up in a straight line, and there’ll be disturbances,” he said. “And when those disturbances happen, larger clients tend to want advice.”
Business
The Chinese robot army transforming the UK’s retail industry
The UK has struggled with weak productivity growth for more than a decade, and economists say wider adoption of robotics will be essential if businesses are to become more efficient.
In its 2026 report SME Technology Adoption in the United Kingdom, the Organisation for Economic Co-operation and Development (OECD) said technologies like robotics would be key to improving productivity.
According to the OECD, Britain’s low adoption of robotics is “surprising” given its manufacturing heritage, noting that while UK firms have embraced mature digital technologies, they lag behind in robotics and automation.
That presents an opportunity for companies such as Geek+. The UK has one of Europe’s largest e-commerce and logistics sectors, but many warehouses are still in the early stages of automation.
Britain has already become Geek+’s biggest European market, with UK partner MotionTech deploying more than 2,000 robots across 10 warehouse sites.
“Customers want fast deployable solutions,” says Barry Pemberton, Account Director at MotionTech. “They want high volume, high storage, fast picking… ultimately on a smaller footprint with a reduced headcount.”
“We seem to have a very big shortage of labour in the UK at the moment. These technologies are really important to keep businesses thriving and meet demand.”
The Trades Union Congress (TUC), which represents almost 6 million UK workers, says robotics should be used to raise productivity and improve jobs, rather than simply cut labour costs.
In its response to the government’s consultation on a new AI and innovation strategy, it urged ministers to ensure workers are involved in decisions about automation and that employers invest in retraining.
“Working with technologists, workers and unions can help steer the UK’s research and innovation towards workers’ priorities for automation… avoiding job-cutting, low-productivity automation,” the TUC said in its report.
Business
Yolk Property Group, directors in $5m loan dispute
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Business
Virtual interviews don’t show bosses your personality, says Burnham
Speaking to former political adviser Jimmy McLoughlin on his podcast Jimmy’s Jobs of the Future, Burnham said he was concerned that the use of technology was not making recruitment processes “fairer”.
“How do you get over some of your personality, your passion?” he asked, referring to virtual interviews. “It seems to me to then work against people who have that side to their character and work for those who are just giving the more formulaic answer.
“I do worry about that and I’ve seen that in relation to my kids and their situation.”
More than one million 16-25-year-olds are not in education, employment or training – the highest level in more than 12 years, official figures show.
A major review by former minister Alan Milburn found job and career opportunities for young people are “not growing, they’re shrinking” with one in six set to be out of work, education or training in five years unless action is taken.
“We are at risk of a lost generation” with young adults facing a “perfect storm” of challenges, Milburn warned in May.
Business
FIFA Admits Controversial VAR Call in Argentina-Switzerland World Cup Quarterfinal Broke the Rules of Game
Football’s international rule-making body has effectively confirmed that one of the most disputed video assistant referee decisions of the 2026 World Cup should never have been made, reigniting scrutiny over Argentina’s contentious run through the tournament even as a separate FIFA disciplinary investigation into the team’s conduct continues.
The finding centers on Argentina’s quarterfinal victory over Switzerland, a match in which Swiss striker Breel Embolo was shown a second yellow card and sent off after appearing to go down under a challenge from Argentina midfielder Leandro Paredes. Replays suggested there had been no contact between the two players, with Embolo accused at the time of simulation, commonly known as diving, in an attempt to win a foul. The match referee reviewed the incident using the tournament’s revised “mistaken identity” protocol before issuing the red card, a decision that proved decisive as Switzerland went on to lose the match after extra time.
The International Football Association Board, known as IFAB, which writes and governs the laws of the game that FIFA competitions are required to follow, has since confirmed that the review should not have taken place under the current rules governing VAR reviews. In a statement, IFAB said: “A yellow card (caution) other than a second yellow card can only be reviewed to identify the player who committed the sanctioned offence; the offence itself cannot be reviewed or amended.” The organization added that while the use of the mistaken identity clause to address simulation during the tournament “was well received and will be included in the detailed review of the VAR protocol,” it “may not be used as such until that review is concluded,” an acknowledgment that the interpretation applied during the Argentina-Switzerland match fell outside the rules as they currently stand.
FIFA pushed back firmly against the characterization that an error had occurred, defending its handling of the situation in a statement posted to social media through its official FIFA Media account. “FIFA’s interpretation of Mistaken Identity was consistently applied during the FIFA World Cup,” the organization wrote. “There were two instances in which a player was mistakenly identified as having committed a yellow card offence and the VAR advised the referee to correct the factual error caused by the opponent’s simulation.” FIFA argued that the underlying act of simulation itself could not be disputed under the review, and that it “should not result in a disciplinary sanction against an opponent that may then lead to further consequences, such as a sending off for a second yellow card or a match suspension for accumulated cautions.”
FIFA went further in disputing that any rule had been broken, stating: “We do not consider this to have been a referee or VAR error and the decision restored justice.” The organization said it had remained in contact with IFAB throughout the process and that the governing body had confirmed the interpretation used during the tournament was valid, describing it as having been “well received” and noting it would inform ongoing discussions about revisions to the VAR protocol following the tournament’s conclusion.
The dispute has added fresh fuel to broader controversy surrounding Argentina’s path through the 2026 World Cup. Lionel Scaloni’s side faced intense scrutiny throughout the knockout rounds before ultimately losing the final to Spain, with multiple contentious refereeing moments prompting separate FIFA reviews and fueling online speculation, without supporting evidence, that officiating had favored the South American team during the tournament.
Switzerland manager Murat Yakin was outspoken in his criticism of the officiating decision immediately following the quarterfinal loss, arguing that the dismissal had unfairly denied his team a place in the semifinals. “We were punished for a rule that is completely unacceptable,” Yakin said. “I don’t understand. It is very painful we are eliminated that way. I don’t think we deserved it and in my opinion our boys are the real heroes.” Yakin went on to criticize the specific mechanism used to overturn the call. “The referee makes that one decision that he interfered, it is completely misunderstandable. That is a situation that happened many times previously. He awarded a yellow card. This rule destroyed our game today.”
The clarification from IFAB arrives as FIFA’s separate disciplinary investigation into Argentina’s conduct during the World Cup final against Spain remains active. That investigation was launched after chaotic scenes broke out following the final whistle, with several Argentina players and coaching staff members alleged to have confronted match officials in a post-match confrontation. FIFA has appointed a prosecutor to examine the incidents from that match, and potential penalties under consideration include player and staff suspensions as well as financial sanctions against the Argentine federation. The investigation is also examining additional flashpoints involving Argentina from later stages of the tournament, according to FIFA.
With both the VAR protocol dispute and the ongoing disciplinary investigation still unresolved, the fallout from Argentina’s turbulent 2026 World Cup campaign continues to generate scrutiny well after the tournament’s conclusion, as football’s governing bodies work through questions about how officiating rules were applied during some of the competition’s most consequential matches.
Business
Enterprise Products beats second quarter earnings estimates

Enterprise Products beats second quarter earnings estimates
Business
Logitech: Q3 2027 Supply Risk Creates Too Much Uncertainty (Rating Downgrade)
Logitech: Q3 2027 Supply Risk Creates Too Much Uncertainty (Rating Downgrade)
Business
Shares fall from multi-month high as confidence wanes
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Data & Insights is a research tool built specifically for the WA market. It draws on more than 30 years of Business News reporting, updated regularly to reflect what’s happening now. Use it to:
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The Morning Digest Email provides a comprehensive wrap of the major headlines, relevant to WA business, and includes with a snapshot of the overnight news covering oil, gold and ASX-listed companies.
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Business
UK vehicle production falls 7.5% in first half, SMMT says
UK vehicle production fell 7.5 per cent in the first half of 2026, with factories building 385,979 cars and commercial vehicles, according to figures published today by the Society of Motor Manufacturers and Traders.
Output stabilised in the second quarter, dipping by 128 units, or 0.1 per cent, year on year, as exports strengthened and car production returned to marginal growth.
Production for export reached 294,222 units over the six months, down 5.6 per cent on the same period last year. Output for the domestic market fell 13.2 per cent to 91,757 units. In the second quarter, exports rose by 5,075 units, or 3.9 per cent.
Car exports rose in June for the third consecutive month, up 4.5 per cent, while commercial vehicle exports rose 54.3 per cent, which SMMT said came from a weak base. Total June output eased 1.2 per cent to 68,200 units, following a rise in May.
Exports accounted for 76.2 per cent of all vehicles built in the year to date, which SMMT said underlined the importance of free and fair trade with global markets. The EU remained the sector’s biggest customer and supplier, taking 58.3 per cent of car shipments, up 3.4 per cent year on year to 166,801 units. The US was second with 45,162 units, or 15.8 per cent of exports, although volumes fell 4.6 per cent. China, the third biggest market, took 12,323 units, down 44.7 per cent on the first half of 2025.
Model changes at several manufacturers continue to affect volumes, particularly for electrified cars, SMMT said. Those vehicles accounted for around four in 10 cars built in the first half, with output 8.6 per cent behind last year.
Citing product transitions and trade and investment uncertainty, the latest independent production outlook anticipates total UK car and light vehicle output will be broadly flat this year at 740,000 units, before returning to growth in 2027. SMMT said the potential to pass one million units still exists, but would require output to grow by some 40 per cent and depends on securing further new model investment by making the UK more globally competitive for manufacturing.
With major investment decisions being taken now and a new government in place, SMMT is urging rapid implementation of the Modern Industrial Strategy. It said that, given energy price volatility, the UK’s uncompetitive industrial electricity prices must be addressed even after the introduction of the British Industrial Competitiveness Scheme, which cuts electricity costs for eligible electricity-intensive manufacturers from April 2027.
The trade body also said reform of the ZEV Mandate is vital. Manufacturers are investing billions in zero emission technologies, SMMT said, but regulation remains ahead of demand, making the cost of selling in the UK untenable and undermining any case for local manufacturing investment.
On trade, SMMT said ‘Made in Europe’ and rules of origin issues arising under the UK-EU Trade and Cooperation Agreement threaten cross-Channel trade and supply chains. Left unresolved, it said, they threaten an €80 billion-a-year trading relationship as well as Europe and the UK’s wider automotive competitiveness.
Mike Hawes, SMMT chief executive, said: “Global vehicle production remains under intense pressure, and the UK is no exception. Global market weakness, trade pressures and uncompetitive costs are taking their toll. But decline is not inevitable. Urgent action on energy costs, reform of market regulation and improved trading arrangements with our global partners would ensure the sector can return to growth. And given that growth would be across every region in the UK, there is every reason for the new government to get behind the sector.”
According to SMMT, automotive manufacturing turns over more than £85 billion, adds £18 billion in gross value added and employs 188,000 people. Across the wider sector, including retail and service, maintenance and repair, automotive is worth nearly £400 billion, contributes more than £75 billion in GVA and supports 830,000 jobs. It accounts for 10 per cent of all UK goods exports, worth almost £40 billion, and £111 billion in total automotive trade. SMMT analysis identifies a further £4.6 billion domestic sourcing opportunity by 2030.
Business
LA Clippers Vow to Fight Salary Cap Allegations in Kawhi Leonard Case All the Way to Arbitration if Needed
The Los Angeles Clippers are digging in against allegations that the franchise circumvented the NBA’s salary cap to pay star forward Kawhi Leonard, with a source close to the organization saying the team is prepared to fight the claims through arbitration if necessary as an NBA-commissioned investigation continues.
The controversy centers on Aspiration, a now-collapsed sustainability-focused financial company that investigative reporter Pablo Torre has alleged the Clippers used to funnel payments to Leonard beyond what the league’s salary cap rules permit. Torre’s reporting first brought the allegations to widespread attention last season, and his continued coverage has kept pressure on both the team and the league to address the claims.
The dispute has taken on added significance in recent weeks after a planned trade sending Leonard to the Toronto Raptors was paused amid the ongoing NBA investigation into the allegations. Speaking to Baxter Holmes of ESPN, a source associated with the Clippers organization said the team continues to firmly reject the allegations of salary cap circumvention. According to the source, the team’s determination extends to a willingness to pursue the matter through formal legal channels rather than accept any findings without a fight. “The Clippers remain adamant that they did not funnel money to Leonard through Aspiration, and one source close to the team with knowledge of the investigation said that it would ‘fight that to the end,’ including through arbitration,” according to the report.
The NBA has hired Wachtell Lipton, a prominent New York-based law firm, to conduct the formal investigation into the allegations against the Clippers. Should the investigation ultimately find the organization violated league salary cap rules, the Clippers could face significant sanctions from the NBA, with league officials widely expected to seek penalties severe enough to serve as a deterrent against similar conduct by other franchises.
The length of the ongoing investigation has itself become a subject of speculation among fans and league observers, with some interpreting the extended timeline as a potential signal about what investigators may or may not have uncovered. A separate anonymous source with close ties to Wachtell Lipton pushed back directly against that kind of speculation, according to the same ESPN reporting. “One source with knowledge of the investigative process cautioned against the idea of any outside parties having inside knowledge of Wachtell Lipton’s findings to date — or of anyone trying to speculate as to whether the length of the investigation signals what the law firm has or hasn’t found,” the report stated.
Wachtell Lipton has been investigating the Clippers and the allegations surrounding Leonard’s compensation since September of last year, according to the reporting. Investigations of this nature are typically conducted with a significant degree of confidentiality, a practice generally intended to prevent potentially implicated parties from taking steps that could compromise the integrity of the inquiry or withhold relevant information before investigators have completed their review.
The scrutiny facing the Clippers comes at a particularly high-profile moment for the broader NBA offseason, with the league’s attention largely consumed by other major storylines, including LeBron James’s high-profile decision to sign with the Philadelphia 76ers after a lengthy free agency process. That move has generated its own wave of coverage and fan reaction, including one Sixers supporter who went viral this week after intentionally sunburning a tribute to James onto his back while waiting for an official jersey to arrive. Speaking to the Philadelphia Inquirer about the stunt, the fan, identified as Joey Abel, explained his unconventional approach. “I was just like, ‘How can I get a LeBron James jersey as fast as possible?’ And for some reason, that’s where my mind went,” Abel said.
Even amid the broader offseason attention on player movement across the league, the Clippers’ ongoing legal exposure over the Leonard allegations represents a significant institutional risk for the franchise, given both the financial penalties that could follow a finding of wrongdoing and the reputational damage that would come with a formal determination that the team violated the league’s competitive balance rules. NBA salary cap regulations are designed to maintain a level playing field among franchises by limiting how much any single team can spend on player compensation, and violations are treated as serious infractions given their potential to distort competitive fairness across the league.
The Clippers’ ownership, led by Microsoft co-founder Steve Ballmer, has not issued extensive public comment on the specifics of the Aspiration allegations beyond the organization’s general denials relayed through sources close to the team. Ballmer has been a prominent and hands-on owner since purchasing the franchise in 2014, and any finding of wrongdoing in the Leonard case would represent a significant setback for an ownership group that has invested heavily in building the Clippers into a consistent championship contender, including the construction of the team’s dedicated Intuit Dome arena.
With the trade that would have sent Leonard to Toronto still paused pending the investigation’s outcome, and no clear timeline for when Wachtell Lipton’s review might conclude, the situation is likely to remain a significant storyline for the Clippers organization heading into the coming NBA season, even as the broader league shifts its attention toward training camps and the on-court product following a summer dominated by star player movement across multiple franchises.
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