Good morning. The Securities and Exchange Commission is proposing to cut rules issued by the Biden administration that would have required companies to disclose climate risks in their public reports, Clara Hudson reports for Risk Journal. (free link)

• ‘Overly burdensome’ rule: The SEC on Friday said the rules, which the Trump administration now formally intends to end, were “overly burdensome and costly” for companies and would go beyond the agency’s authority.
   
• Background: The Biden administration in 2024 approved the long-beleaguered climate regulations requiring companies to report how they manage climate-related risks and greenhouse gas emissions. The rules faced legal challenges and the SEC under Trump decided to stop defending them in court. The SEC has since been working on an official proposal to rescind the rules.
   
• Why it pulled the plug: “Even if it had authority to adopt such final rules, the Commission believes there are independent, compelling policy reasons to rescind them entirely,” the SEC said, adding the rules wouldn’t serve the interests of registrants and investors.
   
• Maybe not the end? Companies aren’t off the hook from such disclosures, however. Those doing business in California must soon start reporting their greenhouse gas emissions and climate risks to the state. A similar effort to mandate climate reporting is under way in New York.

CFTC approves bitcoin perpetual futures trading in U.S. at Coinbase, Kalshi.

The Commodity Futures Trading Commission has approved the listing of a bitcoin perpetual futures contract at Kalshi, while allowing Coinbase’s U.S. customers to access its global perpetuals through an affiliate.

Perpetual futures are a type of highly-speculative derivative that never expires and allows traders to use massive leverage to amplify gains or be exposed to big losses.

• Kalshi Launches First Perpetual Futures in the U.S.

UnitedHealth facing $100 million Medicaid fraud suit from Massachusetts.

UnitedHealth improperly billed Massachusetts’ Medicaid program for over a decade, Risk Journal's Max Fillion reports, siphoning at least $100 million from government coffers, according to a civil lawsuit filed by the state's attorney general against the health insurer on Friday.

The company routinely inflated its members’ healthcare needs to get higher payouts from the state, Massachusetts Attorney General Andrea Campbell claimed in the suit filed in state court, adding the behavior reflected the company’s “growth at all costs” mindset. The suit aims to clawback funds.

• The U.S. announced sanctions packages Thursday targeting the Iranian military’s oil network. The Treasury Department designated 16 entities across several jurisdictions and the State Department separately sanctioned 12 entities. (free link)
   
• BP’s ousted chairman clashed with a fellow director earlier this year over the handling of sensitive talks about a potential deal, a sign of simmering boardroom tensions months before Albert Manifold’s abrupt dismissal this week.
   
• The recent death of a contractor at a SpaceX facility in Texas has been ruled an accident, according to a case report from the county sheriff.
   
• Google engineer Michele Spagnuolo faces fraud and money-laundering charges for illegally trading on Polymarket using nonpublic search data.
   
• A federal judge directed the Trump administration to pause efforts on a $1.8 billion fund for people who say they were targeted by prosecutors for political reasons, while she weighs a legal challenge to it.
   
• A senior Trump adviser oversaw the awarding of one government contract and pushed for another to two tech companies backed by a venture-capital firm in which he was an investor, according to federal contracting records, financial disclosure documents and people familiar with the matter.
   
• The $110 billion merger between Paramount Skydance and Warner Bros. Discovery faces increased pressure from Democratic state attorneys general due to CBS News restructuring.

The U.A.E.’s secret role in the war involved dozens of strikes on Iran.

The United Arab Emirates carried out dozens of airstrikes against Iran beginning in the early days of the war and continuing through the day after the April cease-fire was announced, people familiar with the matter said, a deeper involvement than was previously known in the air campaign led by the U.S. and Israel.

The extent of the strikes is further evidence of the country’s growing willingness to protect what it sees as its strategic interests, setting it apart from some of its neighbors in the Gulf region, which have taken a far more cautious approach to the threat from Iran.

• Ships Are Sailing ‘Dark’ to Sneak Out of Strait of Hormuz

Trump administration wants autos under USMCA to be at least 50% made in America.

The Trump administration is expected to propose a change to the U.S.-Mexico-Canada Agreement that would require half of the components and materials in an automobile to come from U.S. sources in order to qualify for lower tariffs under the pact, according to people familiar with the plans.

What that would mean. The rule would greatly increase the amount of U.S. content required in cars made under the so-called USMCA, measured by the dollar value of the components. The pact currently requires three-quarters of a vehicle’s materials to come from North American sources, but has no U.S.-specific content requirement.

• Beijing threatened to launch trade probes against the European Union if the 27-member bloc pushes ahead with a proposal to curb imports of heavily subsidized foreign products.
   
• A Russian drone crashed into an apartment building in NATO member Romania on Friday, raising tensions with the alliance and stoking fears that Russia will attempt to expand its war beyond Ukraine.
   
• U.S. cities targeted with aggressive immigration enforcement at the start of President Trump’s second term saw a significant drop in employment compared with other cities, according to new Brookings Institution research.
   
• The United Nations is going broke as the U.S. and China withhold payments to the institution in a jostle for control.
   
• Nearly 1,000 workers at a Michigan automotive supplier are set to strike, stalling the production of key parts for General Motors’ midsize and full-size pickup trucks.
   
• Robotaxi companies like Waymo and Tesla face mounting criticism and scrutiny from the public and local governments as problems appear in police report and viral social-media posts.
   
• Defense Secretary Pete Hegseth renewed calls for America’s allies in Asia to increase military spending to boost deterrence against China, in a speech marked by a shift away from a confrontational stance toward Beijing.
   
• Israel expanded its military invasion of Lebanon, moving deeper into the country and capturing the strategic high ground of a historic Crusader castle it hadn’t held for a quarter of a century, as it hit back at Hezbollah following drone attacks that have killed its soldiers and sent Israeli residents running to shelters.
   
• A handful of African nations are rejecting American health aid, outraged by the Trump administration’s demands for access to private health records and even minerals in exchange for lifesaving medicine.
   
• Lotus’s U.S. expansion faces challenges as tariffs increased the price of its Chinese-made Eletre electric SUV from $107,000 to $230,000.

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• Government and industry officials are at loggerheads over mandating a $50,000-per-airplane safety fix after a fatal D.C. crash last year.
   
• The congressional recess is typically a cooling-off period that helps ease tensions between the White House and Capitol Hill. But this time, Senate Republicans are staying just as hot.
   
• Bill Gates’s carefully cultivated public image has been shattered by revelations about his association with Jeffrey Epstein, leading to increased scrutiny.
   
• FIFA aims for a record $11 billion in revenue from the coming soccer World Cup in North America. But warning signs have surfaced for local businesses, and New York and New Jersey attorneys general have served FIFA with subpoenas over its demand-driven dynamic pricing.

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