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The Morning Ledger: U.K. Regulators Propose Rule Changes for Audit Sector
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The U.K. government has sought to improve the reputation of the nation’s audit and accounting sector. PHOTO: ALBERTO PEZZALI/NURPHOTO/ZUMA PRESS
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Good day. A U.K. regulator is proposing sweeping changes to rules governing the nation’s audit industry, with the aim of boosting competition, avoiding conflicts of interest and restoring the reputation of a sector that has been tarnished by corporate scandals, reports CFO Journal.
Big Four: The Competition and Markets Authority said audit firms Deloitte LLP, Ernst & Young LLP, KPMG LLP and PricewaterhouseCoopers LLP should split their audit and consulting businesses. The U.K.’s competition regulator also proposed that these larger firms participate in joint audits with smaller audit firms, and for corporate audit committees to be held accountable for their choice of auditor.
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Below expectations: “People’s livelihoods, savings and pensions all depend on the auditors’ job being done to a high standard,” said Andrew Tyrie, chairman of the CMA, in a statement. “But too many fall short—more than a quarter of big company audits are considered substandard by the regulator. This cannot be allowed to continue.” The British government has 90 days to respond to the CMA's recommendations.
Reputation redo: The government has sought to improve the reputation of the U.K.’s audit and accounting sector as the country prepares to leave the European Union. The industry in 2017 accounted for £8.9 billion ($12 billion) of tax receipts in the U.K.—1.5% of the total—and contributed £59 billion to Britain’s gross domestic product, according to a study by Oxford Economics Ltd. released in November.
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Pier 1 Imports Fills CFO Seat With Restructuring Expert
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The Fort Worth, Texas-based company said Deborah Rieger-Paganis is taking over as interim CFO effective Wednesday. Ms. Rieger-Paganis is a managing director in the turnaround and restructuring practice at global consulting firm AlixPartners LLP.
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Accounting for Sustainability Launches U.S. Chapter of Its CFO Leadership Network
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Accounting for Sustainability, a nonprofit founded by the Prince of Wales, on Thursday launched the first U.S. chapter of its global Chief Financial Officer Leadership Network in San Francisco, reports Ms. Shumsky.
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The networking group is made up of eight founding members, all CFOs of large U.S. companies, including Salesforce.com Inc., Caterpillar Inc. and Levi Strauss & Co. The group aims to help business leaders infuse sustainability and solutions to social and environmental challenges into core strategy and business processes.
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Tech unicorns Pinterest Inc. and Zoom Video Communications Inc. will launch themselves into the public markets Thursday, becoming the latest big test for new listings after the rough early weeks for Lyft Inc.
American Express Co., Blackstone Group LP, BB&T Corp., Honeywell International Inc., Philip Morris International Inc., PPG Industries Inc. and SunTrust Banks Inc. are among the companies scheduled to report earnings today.
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Marianne Lake has served as JPMorgan’s chief financial officer since 2012. PHOTO: CAITLIN OCHS/REUTERS
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JPMorgan Chase & Co. shuffled the roles of two top executives. One of them could succeed Chief Executive James Dimon. Finance chief Marianne Lake will leave the CFO role to run the bank’s consumer lending businesses, while Jennifer Piepszak, who runs JPMorgan’s credit-card business, will take over as CFO.
Ms. Lake’s new role, which will give her operational experience at some of the bank’s highest levels, strengthens the possibility that she will one day take over leadership of the bank from Mr. Dimon.
An internal promotion from the chief operating officer position was the most common path to the CEO chair at S&P 500 and Fortune 500 companies in 2018, according to executive recruitment firm Crist|Kolder Associates. Just over one-quarter—26.5%—of sitting CEOs ascended via that route, compared with 6.8% who were previously CFOs.
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Amazon.com Inc. is checking out of China’s fiercely competitive e-commerce market. The company told sellers on Thursday that it will no longer operate its third-party online marketplace or provide seller services on its Chinese website, Amazon.cn, beginning July 18.
Uber Technologies Inc. is nearing a deal with a group including SoftBank Group Corp. that would invest in its self-driving car unit at a valuation of $7.25 billion, according to people familiar with the matter, as the ride-sharing firm readies its initial public offering.
Nestlé SA saw a pickup in North American sales led by price increases and pet care, as the Swiss consumer-goods giant posted first-quarter growth that exceeded analysts’ expectations.
Bank of New York Mellon Corp. delivered a grim reminder that shifting U.S. Federal Reserve policies and softening long-term interest rates are taking their toll on part of the finance industry.
Samsung Electronics Co. said it would investigate the causes behind malfunctioning Galaxy Fold phones issued to tech reviewers, casting doubts over the rollout of the industry’s first mainstream foldable-screen device.
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25%
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Saudi Arabian Oil Co. is considering buying as much as a 25% stake in the petrochemicals and refining unit of Indian conglomerate Reliance Industries Ltd. The stake is valued at between $10 billion and $15 billion, people familiar with the matter said.
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Marc Garneau, Canada's transport minister, has signaled his government could require additional simulator training for pilots of the Boeing 737 MAX. PHOTO: ADRIAN WYLD/ASSOCIATED PRESS
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A rift between the U.S. and Canada is growing over how to ensure the safety of Boeing Co.’s grounded 737 MAX planes, as Ottawa’s focus on additional pilot training could lead to a delay in getting the jet back in the air.
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U.S. House Democrats have subpoenaed nine large banks as part of an inquiry into President Trump’s financial interests, according to people familiar with the matter, including six U.S. firms and three foreign lenders.
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Federal Communications Commission Chairman Ajit Pai said he would recommend denying China Mobile USA’s application to begin providing some telecom services in the U.S., citing national security risks.
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The National Association of Manufacturers sued the federal government, alleging that a tax regulation affecting winemakers and alcohol companies violates clear congressional intent.
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Federal prosecutors have charged scores of doctors, nurses, pharmacists and other medical professionals with scheming to distribute more than 32 million powerful and addictive pain pills.
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The U.S. Treasury sanctioned Venezuela’s central bank and its director in another step to pressure the nation’s ruling government into handing over power to the Washington-backed opposition.
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China's Vice Premier Liu He, center, talks with Treasury Secretary Steven Mnuchin, right and U.S. Trade Representative Robert Lighthizer. PHOTO: NICOLAS ASFOURI/PRESS POOL
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The U.S. and China have tentatively scheduled a fresh round of face-to-face meetings as they seek to close out a trade deal, with negotiators aiming for a signing ceremony in late May or early June, according to a person familiar with the situation.
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The European Union and Canada said they were prepared to defend their companies’ interests in Cuba before the World Trade Organization, after the Trump administration opened the door to billions of dollars in lawsuits against foreign firms that do business there.
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Economic activity continued to grow slowly across the U.S. in the spring, but some sectors expected growth to pick up in the coming months, according to a Federal Reserve report released Wednesday.
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“The pork market is a concern for everyone.”
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— Tang Ke, a spokesman for China’s Ministry of Agriculture and Rural Affairs. Pork prices in China could surge more than 70% this year after new government data showed the pig population plunging as farmers culled millions of hogs to battle a virus deadly to their herds.
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Every weekend we select a handful of in-depth articles we think are worth a bit of your time, either because they peel back the layers on a compelling business story, or somehow make us look at business in a different light.
German sportswear maker Adidas AG has developed a recyclable shoe called Futurecraft Loop. But the company is facing a challenge: While 100% of every Loop shoe can be recycled, the recycled material can only make up 10% of the next generation of Loop shoes to guarantee that quality doesn't degrade, reports Fast Company.
U.S. wind farms based offshore, where wind blows steady and strong, unobstructed by buildings or mountains, have yet to grow their share of the country's energy market to make a difference, writes Wired.
Have you ever felt at your dentist's mercy when leaning back in the dentist chair? Your fears might be grounded, reports The Atlantic in a story about the dental industry.
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The Morning Ledger Will Not Publish Friday
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Major U.S. markets will be closed tomorrow in observance of Good Friday. The Morning Ledger will take the day off as well, and return on Monday.
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