Good morning. Court-appointed liquidators have filed a $2.7 billion lawsuit against Standard Chartered Bank, alleging its involvement in the 1MDB scandal.

The lawsuit was filed in the High Court of Singapore, according to a statement on Tuesday from the board of 1Malaysia Development Bhd., the state-controlled economic development company known as 1MDB. Financial services firm Kroll is acting as liquidator for 1MDB.

• The background: In December 2016, the Monetary Authority of Singapore stated that after an inspection, significant lapses were discovered in Standard Chartered Bank’s customer due diligence procedures and controls for continuing monitoring, leading to multiple breaches of anti-money laundering regulations. The MAS imposed financial penalties of 5.2 million Singapore dollars, equivalent to $3.5 million at the time, on the U.K. bank.
   
• The allegations: 1MDB said the lawsuit brought by liquidators Angela Barkhouse and Toni Shukla seeks to hold the U.K. bank accountable for its role in allegedly enabling fraud to be committed against 1MDB and “the systematic theft of funds which ultimately belonged to ordinary Malaysians.”
   
• Standard Chartered's response: The bank said it has yet to receive the legal claim documents and “emphatically rejects any claims,” adding that the liquidators are for the shell companies.

Hollywood confronts AI copyright chaos in Washington, courts.

America’s creators are mounting a campaign to push back on any use of their work without permission or compensation, seeking to head off potential abuses of their intellectual property.

Disney Chief Executive Bob Iger, along with legal chief Horacio Gutierrez met with White House officials recently to discuss worries about AI models infringing on the company’s intellectual property and using the studio’s characters in inappropriate ways, according to people familiar with the talks.

Meanwhile, the U.S. Senate voted early Tuesday to remove a provision from President Trump’s megabill that would ban state laws that regulate artificial intelligence. The move is a setback for tech companies and White House officials who fear a patchwork of state regulations will slow the development of AI. The megabill was passed by the Senate Tuesday after an all-night session. 

The Senate has been weighing AI moratorium language passed by the House earlier in the megabill process. House Republicans proposed a 10-year moratorium on state AI regulations, hoping to prevent a thicket of different rules across the country. The moratorium would be a requirement for states to access federal funding for tech infrastructure projects.

U.S. sanctions ‘bulletproof’ hosting service. The U.S. Treasury Department has imposed sanctions on a global bulletproof hosting service with aims to disrupt a key infrastructure used by cybercriminals in illicit activities, including ransomware attacks and technology theft.

Meanwhile, the European Union has formally extended its sectoral sanctions against Russia for another six months, maintaining sweeping restrictions on trade, finance, energy and technology through January 2026.

• Paramount Global said it agreed in principle to pay $16 million to settle a lawsuit with President Trump over a “60 Minutes” interview with former Vice President Kamala Harris.
   
• Lululemon Athletica has filed a lawsuit against Costco Wholesale, alleging that the warehouse-club chain is selling knockoff versions of its popular activewear through its Kirkland private-label brand.
   
• Zalando said it got merger control clearance from the European Commission to acquire online retailer About You.
   
• The U.K.’s antitrust regulator gave its green light for insurer and asset manager Aviva to move forward with its takeover of smaller peer Direct Line.
   
• California lawmakers on Monday night rolled back one of the most stringent environmental laws in the country, after Gov. Gavin Newsom muscled through the effort in a dramatic move to combat the state’s affordability crisis.

Iran suspected of scouting Jewish targets in Europe. 

Iran is suspected of collecting information on Jewish targets in Berlin to prepare for possible attacks, German authorities said Tuesday following the arrest of an alleged spy working for Tehran.

Meanwhile, the risk of an Iranian hacking operation still looms large despite the Iran-Israel cease-fire and ongoing negotiations toward a peace deal, a group of U.S. government agencies warned.

• Satellite Images Capture Activity at Iran’s Fordow Nuclear Site After U.S. Strikes

U.S.’s sluggish factory activity persists amid trade uncertainty.

U.S. manufacturing activity contracted for a fourth straight month in June, indicating continued uncertainty among firms surrounding tariffs and their effect on costs.

The Institute for Supply Management said Tuesday that its purchasing managers’ index of manufacturing activity rose to 49.0 in June, from 48.5 in May. A consensus of economists polled by The Wall Street Journal expected 48.6.

Meanwhile, Asia factory activity ended the second quarter on a weak note, as U.S. tariff uncertainty weighed on orders and production across much of the region.

• Norway’s KLP fund said it excluded the U.S.’s Oshkosh and Germany’s Thyssenkrupp from its portfolio, citing their sales of weapons to the Israeli military as the war in Gaza continues.
   
• Kim Jong Un held the first public commemoration for North Korean troops who died fighting in support of Russia’s war with Ukraine, in a ceremony likely aimed at preparing the population for further such deployments.
   
• Federal Reserve Chair Jerome Powell kept his options open when he said steady economic activity was giving the central bank time to study the effects that tariff increases have on prices and growth before resuming interest-rate reductions.

• Zohran Mamdani cemented his win over Andrew Cuomo in New York City’s Democratic mayoral primary, notching a 12-point victory in ranked-choice voting results released Tuesday.
   
• The Trump administration has sued Los Angeles over its sanctuary city policies, ramping up tensions between the city and the federal government’s immigration enforcement efforts.
   
• The feud between President Trump and billionaire Elon Musk reignited this week, with the billionaire Tesla chief executive attacking Republicans’ “big, beautiful bill” and pledging to start a new political party, and Trump threatening to use the power of the federal government to punish his former adviser.

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