Good morning. Federal regulators want to impose new guardrails on the way retail investment firms such as Robinhood Markets use advanced analytics to encourage customers to trade, the latest in a series of policy efforts prompted by the 2021 meme-stock craze.

The Securities and Exchange Commission voted 3-2 Wednesday to propose a rule that would hold algorithms that predict, guide or forecast investors’ behavior, in certain cases, to a similar standard as investment advice. It would require brokers and advisers who deploy such tools to “neutralize or eliminate” conflicts of interest they create.

The agency’s goal is to prevent emerging technologies from undermining firms’ legal obligation to act in the best interests of their clients.

Meanwhile, the SEC voted Wednesday to adopt rules requiring publicly traded companies to report cyberattacks, but softened elements of its initial proposals after pushback from the private sector. Under the new rules, companies will be required to report significant hacks by filing an 8-K form with the SEC.

“Whether a company loses a factory in a fire, or millions of files in a cybersecurity incident, it may be material to investors,” said Gary Gensler, the SEC’s chair, in a virtual meeting of the agency’s commissioners.

Prosecutors want Sam Bankman-Fried jailed before fraud trial

Federal prosecutors asked a judge to revoke FTX founder Sam Bankman-Fried’s bail and send him to jail, ratcheting up a monthslong battle over his behavior while awaiting trial on fraud charges connected to the implosion of his cryptocurrency exchange.

The tipping point, prosecutors said Wednesday during a hearing in New York, was what they allege were Bankman-Fried’s attempts to discredit a former member of his inner circle who is expected to testify against him. Bankman-Fried provided private writings of Caroline Ellison, his onetime lover and former chief executive of his crypto investment firm Alameda Research, to a New York Times reporter that were cited in a story published last week.

“The latest incident is an escalation of an ongoing campaign with the press that has now crossed a line,” Assistant U.S. Attorney Danielle Sassoon said.

Cognizant bribe probe wasn’t outsourced to company, judge rules.

Federal prosecutors didn’t outsource a bribery investigation of corporate executives at information technology company Cognizant Technology Solutions, a federal judge said, in a ruling that could help clarify how much the government is allowed to lean on companies and their internal investigations.

Cognizant, of Teaneck, N.J., coordinated with prosecutors as it sought lenient treatment over allegations it paid bribes in India. But that collaboration didn’t run afoul of legal limits that bar the government from effectively deputizing companies to conduct its investigations as it goes after white-collar executives, said Kevin McNulty, a New Jersey federal judge.

• British billionaire Joe Lewis surrendered to U.S. authorities Wednesday and pleaded not guilty to insider-trading charges for allegedly sharing confidential information about companies in which he invested with personal assistants, romantic partners and his pilots.
   
• The Departments of Justice, Commerce and Treasury issued a joint compliance note on their policies around voluntary self-disclosure of potential violations of U.S. sanctions, export controls and other national security laws, the second time the agencies have come together to issue joint guidance on the matter to the business community.
   
• NatWest Group Chief Executive Alison Rose has stepped down after her conversation with a journalist about an outspoken Brexit campaigner engulfed the bank in a political drama.
   
• Elon Musk’s Twitter rebrand is off to a chaotic start. Swapping the blue bird logo for the letter X has confused users, upset some former employees and opened the door to lawsuits. Ditching the site’s nomenclature threatens years of brand equity. And some say the new logo is more akin to a pornography site than a social-media platform.
   
• British health authorities are reviewing the potential risk of suicidal thinking and thoughts of self-harm in people taking drugs that have become popular for weight loss.
   
• U.S. public companies will have to break out big-ticket expenses incurred by their business divisions under updated requirements approved by the Financial Accounting Standards Board, a bid to give investors a clearer view of financial performance.
   
• The European Union opened an antitrust investigation into whether Microsoft is abusing its dominant position by bundling its Teams videoconferencing app with its popular Office productivity software.
   
• The GOP-led House Judiciary Committee scheduled a vote Thursday on whether to recommend holding Meta Platforms’ Mark Zuckerberg in contempt of Congress unless he turns over internal company documents.

How bad is China’s economy? Millions of young people are unemployed and disillusioned

More than one in five young people in China are jobless. The government casts much of the blame on the job seekers themselves, insisting that their expectations have gotten too high.

Young people need to stiffen their spines and embrace hardship, says leader Xi Jinping, who labored in the countryside in China’s Cultural Revolution. If they can’t find jobs they want, they should work on factory lines or engage in poverty relief in rural China.

• China’s heightened scrutiny of the expert-network firms that investors and international businesses rely on for information about the country began much earlier than is commonly believed.
   
• Streets in the Southwest are so hot that some people who touch them even briefly are getting serious burns. Burn centers in the Southwest are reporting a rise in injuries to people who touch hot door handles, walk barefoot on scorching surfaces or fall on sun-scorched pavement.
   
• The Federal Reserve resumed lifting interest rates Wednesday with a quarter-percentage-point increase that will bring them to a 22-year high.

• Gap is betting that an executive who helped make over Barbie can revive the faded apparel giant.
   
• Airbus faces another high hurdle in delivering its bestselling jets as it races to solidify a commanding lead over rival Boeing.
   
• Union Pacific named veteran rail leader Jim Vena as its chief executive, after a major shareholder called for current CEO Lance Fritz’s removal.
   
• AT&T’s wireless profit center kept growing in the second quarter, prompting executives to back an upbeat estimate of earnings through the end of the year. The Dallas company said it hit its target of $6 billion of yearly cost savings ahead of schedule and plans to trim another $2 billion or more off its annual expenses over the next three years.
   
• Summer is bringing us hot days, vacations—and a Covid bump.

Follow us on Twitter at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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