Category: 3. Business

  • Late shopper rush drives Boxing Day sale traffic

    Late shopper rush drives Boxing Day sale traffic

    An evening surge in shoppers keen on Boxing Day bargains drove a decade-high increase in footfall for the annual sales, figures suggest.

    It was up by 4.4% across all UK retail destinations including high streets and shopping centres compared to the same day last year, according to data from MRI Software.

    Footfall also remained strong on Saturday, and MRI anticipated the strong post-Christmas shopping momentum to continue into the new year.

    But higher footfall does not necessarily translate into higher spending, and Barclays has forecast that consumers would spend £1bn less on this year’s Boxing Day deals.

    By 3pm on 26 December, it appeared there had been a muted reaction to the sales, according to early MRI data with high street visits down 1.5% compared to 2024 and shopping centre visits down 0.6%.

    MRI counts footfall in more than 660 retail locations across the UK and retail analyst Jenni Matthews said that as the day progressed, it became clear that shoppers were deciding to head out but just a bit later in the day.

    “The boost in activity was driven by a peak in visits across all UK retail destinations from 5pm – 11pm averaging +9.6% versus an average increase of +3.1% from 6am-5pm,” she said.

    With many stores not reopening until 28 December, Ms Matthews said it was likely that hospitality and leisure venues would have benefited from the increase in foot traffic.

    “This is an early indicator that the retail sector may well end the year on a positive note given the challenging times faced at the beginning of the year,” she said.

    Shoppers were also out in force on Saturday, according to the MRI data, with footfall across retail destinations up by 1.6% compared to 27 December last year.

    Ms Matthews said that with family gatherings ending and the new year looming, MRI anticipates footfall will continue to rise over the coming days.

    “Consumers [will be] likely shopping the sales, making the most of the festive events and attractions within towns and cities, and stocking up on New Year’s Eve essentials, keeping the festive retail period firmly in motion,” she said.

    Analysts say 2025 has been a challenging year for people as rising prices and other factors have squeezed household finances.

    Barclays’ consumer spend report suggested that fewer people planned to take advantage of the sales, forecasting shoppers to spending £3.6bn, down from £4.6bn last year.

    Recent retail spending data from the Office for National Statistics showed that many shoppers resisted the lure of November’s Black Friday sales, with only a 0.1% lift in sales volumes.

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  • Late shopper rush drives Boxing Day sale traffic

    Late shopper rush drives Boxing Day sale traffic

    By 3pm on 26 December, it appeared there had been a muted reaction to the sales, according to early MRI data with high street visits down 1.5% compared to 2024 and shopping centre visits down 0.6%.

    MRI counts footfall in more than 660 retail locations across the UK and retail analyst Jenni Matthews said that as the day progressed, it became clear that shoppers were deciding to head out but just a bit later in the day.

    “The boost in activity was driven by a peak in visits across all UK retail destinations from 5pm – 11pm averaging +9.6% versus an average increase of +3.1% from 6am-5pm,” she said.

    With many stores not reopening until 28 December, Ms Matthews said it was likely that hospitality and leisure venues would have benefited from the increase in foot traffic.

    “This is an early indicator that the retail sector may well end the year on a positive note given the challenging times faced at the beginning of the year,” she said.

    Shoppers were also out in force on Saturday, according to the MRI data, with footfall across retail destinations up by 1.6% compared to 27 December last year.

    Ms Matthews said that with family gatherings ending and the new year looming, MRI anticipates footfall will continue to rise over the coming days.

    “Consumers [will be] likely shopping the sales, making the most of the festive events and attractions within towns and cities, and stocking up on New Year’s Eve essentials, keeping the festive retail period firmly in motion,” she said.

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  • BDO’s 2025 Board Survey

    BDO’s 2025 Board Survey

    What’s on Deck for Growth?

    In today’s competitive landscape, organizations cannot afford to pause their growth objectives — even as they navigate ongoing market volatility and uncertain economic indicators. For boards, this means that strategic oversight must not only drive expansion but also see that it is proactively managed. By balancing the pursuit of opportunity with robust risk mitigation, boards support companies’ effectiveness in delivering sustained value while protecting stakeholder interests.

    Directors’ plans for both strategic and compliance-related investment show a consistent focus on two primary growth strategies: innovation of products and services — including investment in technology and its use — and M&A and transactions.

    WHERE ARE BOARDS PRIORITIZING STRATEGIC TIME & EFFORT AND INVESTMENT?

    Beyond growth, the board has a heightened focus on advancing strategic priorities pertaining to the use of emerging technology, managing capital allocation, and optimizing margins, reflecting the need for strategic oversight in areas that directly impact long-term competitiveness and resilience. Technology is transforming industries at an unprecedented pace. Close to a third of board directors (32%) point to their role in helping organizations not only adopt relevant technologies but also manage associated risks — such as cybersecurity, data privacy, and ethical considerations — to safeguard reputation and stakeholder trust.

    A quarter of directors (25%) further cite the need to spend more time overseeing capital allocation — whether through investments in growth initiatives, returning capital to shareholders, or optimizing balance sheets. Director involvement in capital decisions should be informed by robust scenario planning and risk assessment to best position the company in seizing opportunities while maintaining financial flexibility. As companies seek to move toward new strategies, existing structural and operational deficiencies become front and center. For example, many companies are learning the hard way that to successfully adopt technology, they first need to address any “technology debt” that has arisen from delayed integration of disparate systems, poorly maintained systems, and/or lack of robust data governance and protection protocols.

    Similarly, investing time and effort in optimizing margins, embraced by 15% of directors, is vital in an environment marked by inflationary pressures, supply chain disruptions, and rising costs. Boards view their roles in these three areas as central to operational efficiency, cost containment, and supportive of strategic pricing decisions, all of which contribute to maintaining profitability and shareholder value.

    Amid the AI boom, companies remain focused on ways they can enhance or expand their offerings to deliver and generate more value. Nearly one-in-three (31%) directors say that their board is most focused on investing in new products and services for growth in the year ahead.

    Directors and management teams will continue to consider competing resource demands in areas that drive true growth and innovation, and those that address pressing operational needs or technology debt. Both are essential, but the tradeoff calculation will vary based on the organization’s competitive position and structural or security needs. There is also a blurring of lines between operational and technology needs as investments in innovation and human capital become more mutually dependent. Refer to The Boardroom Mindset: Key Considerations for Building Tech-Literate Boards in the Age of AI.

    Technology Innovation & Implementation Readiness

    As with prior years, directors are focused on both top- and bottom-line opportunities for emerging technology. Boards are prioritizing generative AI in product and service development (41%) and see customer experience (34%) as their greatest opportunities in the coming year. Roughly three-in-four directors plan increased strategic investments in R&D (73%) and emerging technology (74%) for the year ahead. Approximately two thirds of directors also plan to increase strategic and compliance-related investments in cybersecurity, data privacy, and governance.

    Boards see significant opportunities in generative AI, particularly in product/service development (41%) and customer experience (34%) — notably both consumer-facing.

    Nearly 1/3 (32%) say advancing the use of emerging technology implementation will require the most board time and attention.

    13% of directors and 12% of management teams do not have appropriate skill/experience to oversee emerging technology and cybersecurity.

    23% somewhat or strongly believe their company is lagging in technological implementation.

    44% plan to seek external assistance for oversight of technological innovation and implementation.

    Boards perceive significant risk if their companies do not keep pace with innovation and capitalize on generative AI and other emerging tech opportunities. Approximately a quarter of directors (23%) believe their company is lagging their competitors in technology implementation, and the ability to rapidly innovate new capabilities is the top cited challenge posed by generative AI.

    There’s good reason for concern. A recent MIT study found that 95% of companies’ generative AI pilots fail to produce measurable return on investment (ROI) that were attributed to poor integration with workflows, misaligned priorities, lack of knowledge and organizational readiness, and ability to scale outside a ”lab testing environment” – these fall outside technical flaws in the AI itself. Failure is a part of innovation, but as ROI pressures continue to mount, boards need to be asking questions about why pilots are failing. For example, are employees being given opportunities to plan and ‘sandbox’ ideas and then mitigate any issues before a broader unveiling?

    The challenges indicated below signal areas where further thought and consideration are needed to execute an effective and efficient generative AI adoption strategy:

    What is the most significant challenge to your business posed by generative AI?

    23% Ability to rapidly innovate and develop AI capabilities
    20% Protect against data privacy or cybersecurity threats
    16% Training talent to address generative AI adoption, deployment, and related risks
    9% Prevent inaccurate/biased inputs and/or outputs or hallucinations
    9% Ability to prioritize use cases
    6% Resistance to adoption within organization (e.g., job loss, damage to employee morale/loyalty)
    5% Ability to assess potential cost
    5% Maintain foundational data hygiene and infrastructure
    4% Complying with standard setting around ethical & irresponsible use
    3% No specific AI adoption concerns

    Companies have learned from prior implementation in advanced technology that the human side of innovation is just as important as the technical side. Resistance to change, lack of training, and the growing fear of AI-related job loss can stand in the way of successful piloting and implementation. The need for human buy-in and championing of adoption is leading to increased attention on workforce strategies (see *The Human Element* section of this report for more). As a result, capital allocation and investment decisions will be further complicated by the growing need for training and change management initiatives that will make or break the success of technological investments.

    KEY TAKEAWAYS FOR TECHNOLOGY READINESS

    Technology governance is a board-level priority.

    Directors must ensure their organizations are equipped to both seize opportunities and manage risks associated with emerging technologies.

    Skills and expertise gaps remain a concern.

    Ongoing education, recruitment, and external support are essential for effective oversight and management.

    AI and other technologies are seen as growth drivers, especially in consumer-facing areas.

    Boards should balance innovation with robust risk management, especially in cybersecurity.

    A significant portion of companies feel they are behind in tech adoption.

    Proactive strategies and benchmarking are needed to close the gap.

    External resources are increasingly important.

    Boards should consider how best to leverage outside expertise to strengthen oversight and implementation.

    For more, refer to BDO’s Top Boardroom Conversations on Technology Governance.

    M&A for Growth

    Following years of dealmaking declines, boards appear to be gearing up for an M&A comeback. In the first half of 2025, global M&A value reached $2 trillion, an increase of 13.6% over the same period in 2024, according to PitchBook. Given greater policy and operating clarity, buyers and sellers can finally act on pent-up dealmaking demand in 2026. To succeed in 2026, businesses must understand the core drivers of their M&A strategies and identify deals and deal structures that align with their strategic objectives. For more, refer to BDO’s 2025 M&A Recap and 2026 Outlook.

    As expectations of a return to dealmaking have been forecasted for several quarters, our survey finds directors are moving from anticipation to action. A majority plan to increase strategic investment in M&A, and transaction opportunities are the second most cited growth strategy for the year ahead.

    To prepare, directors will look first to verify they have access to capital. Then, look toward having the right team in place, including prioritizing M&A experience on their board and in the C-suite, and access to financial, accounting, legal, and other advisory support for pre-deal due diligence and post-deal integration planning.

    • 30% of directors say their board is most focused on strategic M&A or partnerships for growth
    • 53% plan to increase strategic investment in M&A
    • 51% plan to seek external help on M&A due diligence and/or integration

    BDO’s Take

    While boards remain optimistic about strategic M&A in the coming year, they are equally aware of the challenges and risks that are present throughout the M&A process. Directors recognize that improving ROI requires more than just closing a transaction —it demands a comprehensive understanding of deal terms, especially for leaders who may not be serial acquirers. In this context, having access to objective advisors is critical, both to navigate a complex regulatory landscape and to provide unbiased insight into prevailing market conditions — whether favorable or unfavorable.

    Moreover, the importance of rigorous due diligence cannot be overstated. Boards must check that every aspect of a potential deal is thoroughly vetted, from financials and operations to cultural fit and technology integration. For example, amid volatile tariff and trade negotiations, cost considerations and supply chain availability analyses for components and materials need to be well understood, including the buyer’s warranty expectations for such items, to assess overall valuation impact. Boards should also consider regulatory and antitrust risks, tax implications, cybersecurity and data privacy, intellectual property, and contractual obligations. Human capital issues, stakeholder communication, and ESG factors are increasingly critical to successful outcomes. Yet even the most carefully structured deal is only the starting point. The real value is realized through disciplined post-implementation project management which requires a clear plan for integration, onboarding, change management, and ongoing measurement of results. Directors understand that bridging the gap between initial excitement and long-term profitability of a deal hinges on sustained focus, robust oversight, and the ability to adapt as challenges arise.

    The Human Element

    In addition to providing oversight around generative AI and technological innovation, directors are also looking into additional skills and experiences that can enhance a board’s ability to govern, drive culture, and develop the C-suite to drive long-term strategy. From tone at the top — including the relationship between the board and C-suite — to changes in broader workforce needs, the people side of business remains a significant priority. This is underscored by approximately half of directors indicating increases to their spend on workforce, both strategic- and compliance-related.

    Human Capital Engagement

    Low unemployment, estimated to be 4.3% as we entered the fourth quarter of 2025, is being countered by reports of weak job creation and growth throughout the previous spring and summer months. Dynamics at the top and bottom of organizations have diverged. According to a recent report from Challenger, Gray and Christmas, CEO turnover is at a record high with more than 1,300 CEOs departing their posts through July 2025. On the other hand, following years of prevalent job hopping, Korn Ferry reports that more employees are clinging to their existing roles, or “job hugging,” given job growth stagnation, AI disruption, and fear of layoffs. For employers, less turnover across the workforce can lead to opportunities for more strategic talent development and upskilling, in addition to reducing turnover costs spent on recruiting and onboarding.

    Workforce development is gaining significant traction, with 51% of directors planning increased general workforce investment and an equal percentage specifically targeting training and skill development programs. However, organizations may struggle in prioritizing workforce investments with other competing resource needs.

    PEOPLE & CULTURE

    The past decade or more has experienced increased discussion about the need for human resource skills in the boardroom. Directors’ responses, however, signal they believe talent management is primarily a C-suite responsibility, ranking people and culture in the top five most important C-suite skillsets.

    While few directors expect workforce-related matters to demand a significant amount of their time compared to other strategic priorities, 44% rank operational transformation and change management as the most in-demand skillset for their management team.

    Directors appear clear-eyed on the need to garner ROI through change management, but they may be underestimating AI’s potential impact on workplace dynamics and culture. For example, more than one in ten directors (11%) report that their company plans to decrease investment in their workforce.

    Amid both the reality of slow job growth and concern about technology impact, an August poll by Reuters/Ipsos found that 71% of U.S. adults are worried that AI will put too many people out of work permanently. Widespread fear in the workforce will likely be counterproductive to realizing organizational growth goals and ensuring effective technology adoption and buy-in, so boards and management teams need to be thoughtful in communicating and rolling out AI-enablement plans and upskilling opportunities. As it stands, 58% of directors see room for improvement in their management team’s work on talent oversight and workforce development — an area that is likely to grow more complex in the coming year.

    More information can be found in our forthcoming 2026 Priorities for Compensation Committees, to be released later in 2025.

    • Just 3% of directors believe that optimizing culture and workforce management will require the most attention from their board in the next year.
    • Only 12% say that risks related to changing workforce landscape and retention of talent will require the most board time and effort to address.

    Board & C-Suite Dynamics & Effectiveness

    Aside from strategic and financial expertise, directors were asked to indicate up to three of the most critical skillsets and experiences needed to enhance the current composition of both the board and the C-suite management team:

    Most important skillsets and experience needed to enhance composition:

    Board Members Management Teams
    Technology and Innovation 42% Operational Transformation/ Change Management 44%
    Cybersecurity 35% Technology and Innovation 38%
    Industry Experience 34% People and Culture 25% (TIE)
    M&A/Transactional 28% (TIE) Industry Experience 26% (TIE)
    Operational Transformation/ Change Management 28% (TIE) Cybersecurity 24% (TIE)
    ESG Metrics and Reporting 20% Marketing/Branding 24% (TIE)
    Legal and Regulatory 19% M&A/Transactional 22%
    Marketing/Branding 18% International Experience 21%
    International Experience 16% Crisis Preparedness 17% (TIE)
    Crisis Preparedness 14% (TIE) Legal and Regulatory 17% (TIE)
    People and Culture 14% (TIE) ESG Metrics and Reporting 11%

    For a more detailed breakdown and comparison of “How Boards View Themselves & Their C-Suite” across prioritization of risks and opportunities, skillsets, and composition, please subscribe to our LinkedIn newsletter series The Boardroom Mindset.

    A Focus on Board Evaluation & Refreshment

    Zeroing in on the composition, construct, and operation of the board, our survey findings reflect recognized needs for improvement. For example:

    • Directors express confidence in collaboration, oversight, and diversity of thought, but less so in continuing education, crisis management, and stakeholder engagement.
    • Skill gaps in technology, innovation, and cybersecurity — identified as top board priorities — are likely contributing to lower effectiveness in areas like setting risk tolerance & appetite, pursuing continuing education, and crisis management.
    • Director refreshment and committee structure are considered moderately effective, but used to bring needed expertise and commit to ongoing improvement.

    More information can be found in our forthcoming 2026 Priorities for Nomination & Governance Committees, to be released later in 2025.

    COMMUNICATION, COLLABORATION, & C-SUITE SUCCESSION PLANNING

    There is common agreement that the board’s most important job is hiring and firing the CEO, but it’s also clear that the relationship between the board and CEO can significantly impact company success. A recent National Association of Corporate Directors (NACD) Blue Ribbon Commission report highlights the importance of building a high-trust board-CEO relationship through a proactive, three step approach: building a foundation of trust, operationalizing that trust, and leveraging the trust for impact. To paraphrase the report, the relationship between the board and the CEO will continuously be tested but building trust can’t be done during the critical moments when it is most needed.

    Most directors surveyed give their board and management team high marks for communication and collaboration. The data, however, indicates that there may be an opportunity for boards to increase their management oversight effectiveness through healthy discourse, professional skepticism and robust talent planning. For example, just 39% say they are highly effective at robust and timely succession planning. While CEO succession planning tends to get the most attention, highly functioning directors and management teams are also focused on development of a strong leadership pipeline across the C-suite and beyond. Boards who do this best begin building relationships with and observing both the strengths and areas for improvement of both current C-suite leaders and their direct reports well before a C-suite or other leading role opens up.

    BDO’s Take

    In an era marked by dependency on short-form communication (i.e., texts, social media posts, emojis, etc.) combined with many still working outside of the workplace, human skills of communication, empathy, and understanding seem a bit like lost arts for many. The ability to motivate, enable, and engage the workforce cannot be delegated or outsourced to technology, nor can the substantive conversations among leaders that drive major decisions.

    With a record number of CEO and C-suite transitions, the rise of the agentic workforce, and the U.S. policy change ripple effect of government layoffs across other industries, employees at all levels may worry about job security. That type of pressure can drive excellence and increase effort, or it can create distractions that stifle innovation and responsible risk taking.

    In addition, a reduction in overall workforce and entry-level hiring has resulted in moves toward diamond vs. pyramid shaped organizations that may have negative downstream impacts on a company’s ability to develop the next generation of leaders and build a collaborative and desirable culture that drives loyalty and trust to foster innovation and growth. How boards and C-suites work together during this period of uncertainty can make the difference in achieving growth, maintaining resiliency, and protecting against risk.

    For more, view our insight: Bridging the Gap Between the Board and C-Suite and access ongoing continuing education and resources from the BDO Center for Corporate Governance.

    PERCEPTIONS ON EFFECTIVENESS

    We asked directors to provide their perspectives about the effectiveness of both the board and management across several areas from highly effective to highly ineffective. We have woven many of the findings below into our discussion throughout this publication:

    Turning Oversight to Foresight

    As boards enter 2026 with a focus on growth, directors report an opportunity for improvement in proactive risk management as a throughline across several governance areas. From cybersecurity and forecasting, to declines in demand and workforce issues, the risks are widespread, and there’s no clear consensus on what will take the most time. Boards and management teams signal focus on diverse risks specific to their own company priorities. So, what does this mean?

    Which of the following business risks will require the most board time and effort to address in the next 12 months?

    • 15% Cyber threats/incidents and data protection policies and procedures
    • 15% Unpredictability in financial forecasting
    • 14% Declines in demand for product/service
    • 14% Lagging implementation of emerging technologies
    • 12% Changing workforce landscape and retention of talent
    • 11% Liquidity and access to/cost of capital
    • 8% Regulatory compliance
    • 7% Supply chain disruption
    • 4% Stakeholder pressure to address climate

    While risk priorities appear widespread, only 41% of directors consider themselves highly effective at setting risk tolerance and appetite, including fraud risk. Similarly, just 41% rate their management team as highly effective in identifying and mitigating risks.

    Productive relationships between boards and management teams require appropriate challenge and debate. Still, only 50% say their board is highly effective at challenging management’s judgments and estimates while 46% and 49%, respectively, indicate management has more work to do in their discourse with the board and in providing timely and transparent communication to the board. C-suite leaders should be encouraged to raise tough issues early and engage the board directly, and directors should establish expectations for open dialogue from management and in turn be approachable and receptive to timely information, whether good or bad.

    • Only 28% believe their boards and management teams are highly effective at crisis management preparation; while 13% and 19%, respectively, are believed to be somewhat or highly ineffective.
    • Only 41% say their management team is highly effective at-risk identification and mitigation; while 13% indicate somewhat or highly ineffective.
    • Additionally, 50% believe the board is highly effective at challenging management’s judgments and estimates but 14% indicate room to improve management’s ability to provide accurate and agile forecasts and estimates.

    CYBERSECURITY, DATA PRIVACY, & DATA GOVERNANCE

    The past year saw a 34% increase in attackers exploiting cyber vulnerabilities to cause security breaches, according to Verizon.

    As boards work to understand their company’s technology debt, data security and governance are prevailing as the most important aspects of a strong cybersecurity framework.

    Boards seem to be clear in where their focus needs to be in this area:

    • 63% of directors plan to increase strategic investment in cyber-security in the year ahead
    • Cybersecurity is the 2nd most in demand skillset for boards in 2025
    • 15% of directors say cyber threats/incidents and data protection policies and procedures will require the most board time and effort to address over the next year

    When evaluating the organization’s cybersecurity needs, it’s important for the board, management, and IT teams to be aligned on how security frameworks can fit into overall business goals. For more information on how to reduce cyber risk as your business evolves, read our insight on IT strategy, governance, and alignment.

    LIQUIDITY AND ACCESS TO CAPITAL

    Unpredictability in financial forecasting ranks as a top business risk with 15% of directors viewing it as a concern requiring the most time and effort over the next 12 months. Compounding their concern, less than half of directors (47%) express confidence that their management team is highly effective at creating accurate and agile forecasts, and another 14% say they are somewhat or highly ineffective.

    Both findings reflect a critical governance challenge: Directors and management teams are struggling with predicting financial outcomes and securing and deploying resources effectively. As a result, a quarter of directors (25%) feel that managing capital allocation is the strategic priority that will take the most board attention; while another 11% of directors indicate that liquidity and access to/cost of capital is the business risk that will require the most board time and effort to address.

    CRISIS MITIGATION

    As boards seek to improve their ability to identify and predict business threats, it can be challenging to convert this knowledge into actionable crisis preparedness. New technologies, increased politicization, changing regulatory requirements, and unstable economic conditions continue to create scenarios that can catch companies off guard.

    While it’s not possible to plan for every scenario, 28% of directors feel their boards and management teams are highly effective in crisis management preparation.

    BDO’s Take

    What do these various risks have in common? Risk identification is only half the battle. The real challenge lies in building the frameworks, protocols, and muscle memory needed to act decisively when threats become a reality — a skill that can’t be fully outsourced or solved with better technology alone.

    Risk management is a company-wide endeavor aided through scenario planning, continuously revised with real-time data to reinforce crisis preparedness, and better inform and improve upon organizational risk mitigation strategies moving forward.

    As your board and management team discuss how to create better risk mitigation strategies and proactively manage crises, read our 2025 Global Risk Landscape report to see how your peers are responding to the latest macroeconomic and regulatory challenges.

    Conclusion

    As boards prepare for 2026, the evolving business landscape demands that directors and management teams sharpen their effectiveness across strategic oversight, risk management, and workforce development. Addressing skill gaps, enhancing crisis preparedness, and prioritizing human capital are essential for sustaining growth and resilience. Ongoing education and proactive collaboration between boards and management will be critical to navigating technological change and emerging risks. By fostering open dialogue and leveraging diverse expertise, organizations can better anticipate challenges and seize opportunities, positioning themselves to deliver lasting value in a dynamic environment.


    1 Data provided by Pitchbook. (go back)

    2 Data provided by the U.S. Bureau of Labor Statistics. (go back)

    3 Data provided by Challenger, Gray & Christmas. (go back)

    4 Data provided by Korn Ferry. (go back)

    5 Data provided by Reuters. (go back)

    6 Data provided by Verizon. (go back)

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  • Reliance on locums in hospitals hindering long-term planning for our health service – Burke

    Reliance on locums in hospitals hindering long-term planning for our health service – Burke

    The reliance on locum hospital consultants in our hospitals is hindering long-term planning for our health service, a Fine Gael TD has said.

    In response to questioning by Fine Gael TD for Cork North Central and member of the Oireachtas Health Committee, Colm Burke, the HSE has confirmed that one in every six consultants (16.5%) are locum consultants. In total, there are more than 760 consultants working on non-permanent contracts across hospitals in Ireland.

    Commented Deputy Burke said: “Following my questioning of current HSE CEO Bernard Gloster, the HSE has revealed that there are 763 locum doctors in consultant positions in Ireland. The largest number of locum consultants employed was in the speciality of medicine (236) followed by psychiatry (141) and surgery (101).

    “As a member of the Oireachtas Health Committee I have constantly raised the need for forward planning in the recruitment of hospital consultants. Of particular concern is the fact that posts are only advertised after a consultant has retired even where HSE management have adequate notice of their intention to leave the service.

    “Many of the current cohorts of locum consultants are filling posts intended to be part of a new clinical service. It is difficult to see how a consultant who may have no prospect of being made permanent can develop and lead a team. Moreover, recent research from the UK shows that a reliance on locums can ‘likely cause some quality and safety problems in healthcare organisations, and likely to mean that such problems are not properly dealt and resolved in ways that improve quality and safety.’

    “The reliance on locums is especially challenging for smaller hospitals with many having double digit numbers of locums, for example in Letterkenny (27), Tullamore (26), Tralee (32), and Tipperary (15). Smaller hospitals often have the additional challenge of only attracting a low number of applicants to vacant consultant positions.

    “Existing consultants have expressed concern to me that departments with an excessive reliance on locum staff affects delivery of patient care through disruption in continuity of care and team morale. Communication and the therapeutic relationship can become very fragmented.

    “The publication last week of a paper on ‘Ireland’s Future Health and Social Care Workforce’ is a really important step forward in terms of better planning and structuring of our healthcare professionals. In addition, the move to a greater focus on budgets led by regions is an opportunity for those heavily relying on locums to change their approach.

    “With a new CEO about to start, now is the perfect time for the HSE to set clear targets for 2026 to fill vacant posts and reduce the reliance on locum consultants in Irish hospitals”, concluded Deputy Burke.


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  • The 2025 US economy – in charts: rising prices, hiring slowdown, rollercoaster growth | US economy

    The 2025 US economy – in charts: rising prices, hiring slowdown, rollercoaster growth | US economy

    The US economy is thriving, according to Donald Trump: jobs are surging, prices are falling, wages are soaring. The government’s own official statistics paint a more complicated picture of 2025.

    “The Trump Economic Golden Age is FULL steam ahead,” the president claimed on social media, after growth data for the third quarter of the year – covering July, August and September – was unexpectedly strong.

    But other key indicators have been far less robust in 2025. If Trump is right, and an unprecedented economic boom is about to take hold, the foundations appear fragile.

    Inflation

    The cost of living – and its sharp rise, for many Americans, in the aftermath of the Covid-19 pandemic – was central to Trump’s fight for re-election in 2024. While inflation peaked at its highest level in a generation in 2022, prices remained high.

    On the campaign trail, Trump repeatedly promised to tackle this problem and bring down not only inflation – the rate at which prices rise – but prices themselves.

    A line chart showing the latest inflation figures in the US

    But inflation held firm in 2025, as the White House pressed ahead with Trump’s flagship economic policy. Despite his rhetoric on reducing prices, many economists feared the president’s sweeping tariffs on imports from overseas risked driving them higher.

    Interest rates

    Price growth fell sharply after policymakers at the US Federal Reserve launched an aggressive campaign to cool the US economy, rapidly increasing interest rates in an attempt to reduce inflation.

    A chart showing the federal interest rate in the US

    By the turn of the year, the Fed had already started to bring rates down from their two-decade high. But policymakers, led by the central bank’s chair, Jerome Powell, wanted to tread carefully – and were anxious that cutting rates too aggressively would imperil the progress they had made on inflation.

    Trump, no careful treader, returned to office demanding a rapid return to low rates to spur economic growth and berating “numbskull” Powell (whom he appointed). His public demands and attacks were coolly brushed off by Powell. But by the end of the year, Trump had tried to bolster the Fed’s rate-setting board with officials who were more in line with his thinking, dividing opinion on the Fed. Next year, he gets to replace Powell.

    Employment

    A post-pandemic surge in jobs growth was already losing steam by last year. Trump tapped into Americans’ frustrations with the economy, promising a “manufacturing renaissance” that would set the stage for another jobs surge.

    A chart showing the latest US employment figures

    The renaissance has yet to arrive, however, and over the summer, growth in the labor force appeared to stall altogether. Rather than add jobs, the US economy actually shed them in June and August. And in October, amid the longest government shutdown in history, it lost an estimated 105,000.

    The unemployment rate – the percentage of the US labor force that is out of work – has meanwhile been rising throughout the year, and in November scaled its highest level since September 2021.

    The president tried to push back, claiming “the only reason” unemployment had climbed was because the federal workforce had declined – although the federal workforce has fallen 271,000 since January, while the number of unemployed Americans has risen by about a million.

    A line chart showing that the unemployment rate in the US has continued to rise

    “I wish the Fake News would report the 4.5% correctly,” he added on social media earlier this month, after the Bureau of Labor Statistics put November’s unemployment rate at 4.6%.

    Growth

    By the main measure of economic growth – gross domestic product, or GDP – the US economy has endured a rollercoaster year. It shrank in the first quarter, amid an influx of imports ahead of Trump’s expected tariff onslaught, before bouncing back in the second and gathering steam in the third.

    A chart showing GDP

    After growth of 2.8% in 2024, the US economy is expected to expand by 2% this year, and 2.1% next year. But many economists did not anticipate such a robust GDP reading for the third quarter, which came ahead of the federal shutdown.

    The last time growth was this strong, during Joe Biden’s presidency, rising prices and patchy labor growth left many struggling to reconcile the headline figures with the day-to-day reality of their lives.

    Trump is promising a historic economic boom. Like Biden, he may well find the real task is not just to deliver it – but to ensure Americans feel it, too.

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  • Hyatt Newsroom – News Releases

    Hyatt Regency Nha Trang Opens as the First Hyatt Hotel on Vietnam’s Vibrant South-Central Coast

    The 434-room beachfront hotel offers elevated hospitality inspired by the region’s fishing heritage

    CHICAGO (December 29, 2025) – Hyatt Hotels Corporation (NYSE: H) today announced the opening of Hyatt Regency Nha Trang, a beachfront retreat in the vibrant coastal city of south-central Vietnam. Set against scenic white sandy beaches and offering rich culinary experiences, the property marks a milestone in Hyatt’s expansion in Vietnam as the first Hyatt-branded hotel in Nha Trang.

    Located along Tran Phu Street, one of Nha Trang’s most iconic avenues lined with pastel-colored houses and colonial-era architecture, the hotel offers guests a lively setting steeped in local charm. This seaside location draws both locals and travelers with its eclectic art galleries, shops and restaurants that celebrate Vietnam’s cultural heritage. Nha Trang has long been a favored beach destination for leisure travelers, and its thriving shipbuilding industry also attracts a growing number of business travelers. Hyatt Regency Nha Trang is conveniently located just five minutes by car from Nha Trang Train Station and approximately 40 minutes from Cam Ranh International Airport.

    “At Hyatt Regency Nha Trang, we believe true hospitality begins with authenticity,” said Sean Yoon, General Manager of the hotel. “This property was designed not as a retreat from the destination, but as an immersive gateway into its stories, flavors, and spirit.”

    Locally inspired design

    The hotel structure rises like a boat sailing toward the ocean. Each of the 434 guestrooms and suites is a serene sanctuary designed to meet guest needs. Bathed in natural light, the rooms offer stunning ocean views while its interior brings a warm ambiance. Helmed by EDC INTERNATIONAL, the hotel’s interior design is inspired by the ocean and traditional fishing villages with soft natural palettes and handcrafted accents. Every detail has been thoughtfully curated for a seamless stay, from plush bedding and spacious layouts to rainfall showers and smart in-room technology.

    Versatile Event & Meeting Spaces

    The hotel features 8,428 square feet (783 square meters) of flexible meeting and event space across nine breakout rooms, including a striking pillarless Regency Ballroom. Whether for a corporate meeting, a private celebration or a regional conference, each gathering is met with care  and a sense of place through local touches crafted by Nha Trang to add authenticity to every event experience.

    Distinctive Dining Experiences

    Hyatt Regency Nha Trang offers a diverse culinary journey led by Market Café, an all-day venue that marries traditional Vietnamese cuisine with Italian flavors, reflected in a bowl of steaming pho or a handmade pasta served with fresh Nha Trang seafood. Here, open kitchens showcase the chefs’ talents and enhance guests’ interaction.  

    Guests can enjoy a selection of cakes and indulge in afternoon tea in a refined setting at The Lounge, located beside the lobby on the fifth floor. On the 30th floor, the Pool Bar blends relaxation and indulgence with its refreshing cocktails, light coastal bites, and breathtaking views of the bay.

    For those seeking exclusivity, the Regency Club lounge on the 31st floor provides elevated service including check-in services, daily breakfast, all-day refreshments, and evening cocktails with panoramic views over Nha Trang Bay.

    Wellbeing, Family Fun and Coastal Wonder

    Hyatt Regency Nha Trang embraces a holistic approach to wellness and recreation. From the serene Flo Spa and modern Fitness Center to the Yoga Room, sun-soaked pool, and family-friendly activity zone by the wading pool, every space is designed to restore balance and vitality. Nearby, Camp Hyatt offers meaningful activities for younger guests, inspired by the surrounding nature and local culture.

    A Destination to Remember

    Long known for its natural beauty and cultural richness, Vietnam’s south-central coast is experiencing a renaissance in thoughtful travel. Hyatt Regency Nha Trang provides an open invitation, inviting guests to slow down, reconnect, and make memorable experiences.

    Be More Rewarded

    Be among the first to experience Hyatt Regency Nha Trang with a special Opening Offer. Guests who book a qualifying stay can delight in 20% savings on the Best Available Rate, and an additional 5% savings for World of Hyatt members, plus extra exclusive benefits, including:

    • Daily buffet breakfast for 2 adults and 2 kids under 12 years old with stay
    • Customized welcome amenities in your room
    • 20% savings on Food & Beverage throughout your stay (at participating outlets. Alcohol excluded)
    • Late check-out until 4:00 PM when available
    • Complimentary room upgrade to a higher category (subject to availability upon check-in)

    Stay for two nights or longer to enjoy additional privileges on top of the above, including:

    • F&B credit of VND 600,000 per room, per stay
    • 30% savings on access to the exclusive Regency Club lounge on level 31

    Valid for Stays: February 5, 2026 – August 31, 2026

    Book By: January 28, 2026

    Offer is valid at Hyatt Regency Nha Trang for qualifying reservations made by January 28, 2026 for stays from February 5, 2026 through August 31, 2026.

    For information about the cancellation, refund and deposit policies associated with this offer, please see the information provided at time of booking.  Member Rate discount and benefits are available only for World of Hyatt members in good standing at time of booking and stay. Discount percent, if listed, applies to room rate only, and represents a discount off the Standard Rate.  Reservations subject to availability. Offer only available for a limited time, while shown as available on the applicable Hyatt website. Offer only available if booked as directed by requesting the then-available offer (if any); any limitations or restrictions included in the published offer shall apply, including but not limited to, any limitations or restrictions regarding parking or breakfast. Offer not valid with groups, conventions, other promotional offers, tour packages or special rate programs. Rate is per room, per night, based on double occupancy unless otherwise noted and excludes, unless specifically noted, service charges, mandatory resort fees, applicable taxes and other incidental expenses. Additional charges may apply for additional guests or room type upgrades. Offer not valid in conjunction with previously booked or held stays and may not be combined with other offers, promotions, or discounts, except as expressly stated. Not redeemable for cash or other substitutions. Any unauthorized transfer, sale, distribution or reproduction constitutes fraud. Member rate discount and benefits may include complimentary daily breakfast and food and beverage credit with qualifying stay for registered guests. Breakfast is provided in the morning following each night of a stay. Breakfast hours are limited. Breakfast benefit is not valid for in-room dining.

    This offer may be altered or withdrawn at any time without notice. Where required, an alternate offer of similar value will be offered. Void where prohibited by law. The trademarks Hyatt®, World of Hyatt® and all related marks are trademarks of Hyatt Corporation or its affiliates. ©2025 Hyatt International Corporation. All rights reserved.

    Exclusively for World of Hyatt members, earn 500 Bonus Points for qualifying nights at Hyatt Regency Nha Trang from the hotel’s opening through March 31, 2026, as part of World of Hyatt’s New Hotel Member Offer. Additional participating hotels, their offer stay periods, and full offer terms can be found at worldofhyatt.com/newhotelbonus. No registration is required, and members can earn on top of other offers.

    For more information or to book a reservation, please visit www.hyattregencynhatrang.com

    The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.

    About Hyatt Hotels Corporation

    Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of September 30, 2025, the Company’s portfolio included more than 1,450 hotels and all-inclusive properties in 82 countries across six continents. The Company’s offering includes brands in the Luxury Portfolio, including Park Hyatt®, Alila®, Miraval®, Impression by Secrets, and The Unbound Collection by Hyatt®; the Lifestyle Portfolio, including Andaz®, Thompson Hotels®, The Standard®, Dream® Hotels, The StandardX, Breathless Resorts & Spas®, JdV by Hyatt®, Bunkhouse® Hotels, and Me and All Hotels; the Inclusive Collection, including Zoëtry® Wellness & Spa Resorts, Hyatt Ziva®, Hyatt Zilara®, Secrets® Resorts & Spas, Dreams® Resorts & Spas, Hyatt Vivid® Hotels & Resorts, Sunscape® Resorts & Spas, Alua Hotels & Resorts®, and Bahia Principe Hotels & Resorts; the Classics Portfolio, including Grand Hyatt®, Hyatt Regency®, Destination by Hyatt®, Hyatt Centric®, Hyatt Vacation Club®, and Hyatt®; and the Essentials Portfolio, including Caption by Hyatt®, Unscripted by Hyatt, Hyatt Place®, Hyatt House®, Hyatt Studios®, Hyatt Select, and UrCove. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith, Unlimited Vacation Club®, Amstar® DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

    About Hyatt Regency

    The Hyatt Regency brand is a global collection of hotels and resorts found in more than 235 locations in over 50 countries around the world. The depth and breadth of this diverse portfolio, from expansive resorts to urban city centers, is a testament to the brand’s evolutionary spirit. For more than 50 years, the Hyatt Regency brand has championed fresh perspectives and enriching experiences, while its forward-thinking philosophy provides guests with inviting spaces that bring people together and foster a spirit of community. As a hospitality original, Hyatt Regency hotels and resorts are founded on openness – our colleagues consistently serve with open minds and open hearts to deliver unforgettable celebrations, effortless relaxation and notable culinary experiences alongside expert meetings and technology-enabled collaboration. The brand prides itself on an everlasting reputation for insightful care – one that welcomes all people across all countries and cultures, generation after generation. For more information, please visit hyattregency.com. Follow @HyattRegency on Facebook, X and Instagram, and tag photos with #HyattRegency.

    Forward-Looking Statements

    Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; the impact of global tariff policies or regulations; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as hurricanes, earthquakes, tsunamis, tornadoes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve specified levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries;

    changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations or realize anticipated synergies; failure to successfully complete proposed transactions, including the failure to satisfy closing conditions or obtain required approvals; our ability to successfully complete dispositions of certain of our owned real estate assets within targeted timeframes and at expected values; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotel services agreements or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and manage the Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; and violations of regulations or laws related to our franchising business and licensing businesses and our international operations; and other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including our annual report on Form 10-K and our Quarterly Reports on Form 10-Q, which filings are available from the SEC. These factors are not necessarily all of the important factors that could cause our actual results, performance or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

    Media Contacts:

    Renee Yeung

    Hyatt ASPAC

    Renee.yeung@hyatt.com

    Gloria Kennett

    Hyatt – Global Brand PR

    Gloria.kennett@hyatt.com

    Kay Hoang

    Hyatt Regency Nha Trang

    Ha.hoang@hyatt.com

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  • Could AI relationships actually be good for us? | Artificial intelligence (AI)

    Could AI relationships actually be good for us? | Artificial intelligence (AI)

    There is much anxiety these days about the dangers of human-AI relationships. Reports of suicide and self-harm attributable to interactions with chatbots have understandably made headlines. The phrase “AI psychosis” has been used to describe the plight of people experiencing delusions, paranoia or dissociation after talking to large language models (LLMs). Our collective anxiety has been compounded by studies showing that young people are increasingly embracing the idea of AI relationships; half of teens chat with an AI companion at least a few times a month, with one in three finding conversations with AI “to be as satisfying or more satisfying than those with real‑life friends”.

    But we need to pump the brakes on the panic. The dangers are real, but so too are the potential benefits. In fact, there’s an argument to be made that – depending on what future scientific research reveals – AI relationships could actually be a boon for humanity.

    Consider how ubiquitous nonhuman relationships have always been for our species. We have a long history of engaging in healthy interactions with nonhumans, whether they be pets, stuffed animals or beloved objects or machines – think of the person in your life who is fully obsessed with their car, to the point of naming it. In the case of pets, these are real relationships insofar as our cats and dogs understand that they are in a relationship with us. But the one‑sided, parasocial relationships we have with stuffed animals or cars happen without those things knowing that we exist. Only in the rarest of cases do these relationships devolve into something pathological. Parasociality is, for the most part, normal and healthy.

    And yet, there is something unsettling about AI  relationships. Because they are fluent language users, LLMs generate the uncanny feeling that they have human-like thoughts, feelings and intentions. They also generate sycophantic responses that reinforce our points of view, rarely challenging our thinking. This combination can easily lead people down a path of delusion. This is not something that happens when we interact with cats, dogs or inanimate objects. But the question remains: even in cases where people are unable to see through the illusion that AIs are real people that actually care about us, is that always a problem?

    Consider loneliness: one in six people on this planet experience it, and it’s associated with a 26% increase in premature death; the equivalent to smoking 15 cigarettes a day. Research is emerging that suggests AI companions are effective at reducing feelings of loneliness – and not just by functioning as a form of distraction, but as a result of the parasocial relationship itself. For many people, an AI chatbot is the only friendship option available to them, however hollow it might seem. As the journalist Sangita Lal recently explained in a report on those turning to AI for companionship, we should not be so quick to judge. “If you don’t understand why subscribers want and seek and need this connection,” said Lal, “you’re lucky enough to not have experienced loneliness.”

    To be fair, there is an argument to be made that the rise of new tech and social media has itself played a role in driving the loneliness epidemic. That’s why Mark Zuckerberg got flak for his glowing endorsement of AI as a solution to a problem he might be partly responsible for creating. But if the reality is that it helps, this cannot be dismissed out of hand.

    There’s also research to show that AI can be used as an effective psychotherapy tool. In one study, patients who chatted with an AI-powered therapy chatbot showed a 30% reduction in anxiety symptoms. Not as effective as human therapists, who generated a 45% reduction, but still better than nothing. This utilitarian argument is worth considering; there are millions of people who are, for whatever reason, unable to access a therapist. And in those cases, turning to an AI is probably preferable to not seeking any help at all.

    But one study isn’t proof of anything. And there’s the rub. We are at the early stages of research into the potential benefits or harms of AI companionship. It’s easy to focus on the handful of studies that support our preconceived notions about the dangers or benefits of this technology.

    It’s in this research vacuum that the true dangers of AI are revealed. Most of the entities deploying AI companions are for-profit companies. And if there’s one thing we know about for-profit companies, it’s that they are keen to avoid regulations and eschew evidence that could hurt their bottom line. They are incentivised to downplay risks, cherrypick evidence and tout only benefits.

    The emergence of AI is not unlike the discovery of the analgesic properties of opium; if harnessed by responsible parties with the goal of relieving pain and suffering, both AI and opioids can be a legitimate tool for healing. But if bad actors exploit their addictive properties to enrich themselves, the result is either dependency or death.

    I remain hopeful that there is a place for AI companionship. But only if it’s backed by robust science, and deployed by organisations that exist for the public good. AIs must avoid the sycophancy problem that leads vulnerable people to delusion. This can only be achieved if they are explicitly trained to do so, even if it makes them less attractive as a potential companion; a notion that is anathema to companies that want you to pay a monthly subscription, without which you lose access to your “friend”. They must also be designed to help the user develop the social skills they need to engage with actual humans in the real world.

    The ultimate goal of AI companions should be to make themselves obsolete. No matter how useful they might be in plugging the gaps in therapy access or alleviating loneliness, it will always be better to talk to a real human.

    Justin Gregg is a biologist and author of Humanish (Oneworld).

    Further reading

    Code Dependent: Living in the Shadow of AI by Madhumita Murgia (Picador, £20)

    The Coming Wave: AI, Power and Our Future by Mustafa Suleyman (Vintage, £10.99)

    Supremacy: AI, ChatGPT and the Race That Will Change the World by Parmy Olson (Macmillan, £10.99)

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  • Accounting groups expect fewer audit inspections as part of SEC overhaul

    Accounting groups expect fewer audit inspections as part of SEC overhaul

    Stay informed with free updates

    Accounting firms expect US regulators to reduce the number of audits they inspect after the Securities and Exchange Commission signalled it would rethink oversight of the industry.

    The SEC said it would prioritise regulation of accounting firms’ internal systems, opening a window for companies to lobby for changes to an inspection regime they argue is too focused on minor audit infractions.

    “The inspection process has taught firms a lot about their audits and improved audit quality but the programme is 20-plus years old,” said Dennis McGowan, vice-president for professional practice at the Center for Audit Quality, which represents large accounting firms.

    The Public Company Accounting Oversight Board, a body controlled by the SEC, inspects dozens of audits carried out by the big accounting firms each year and publishes a report on the deficiencies it finds at each one. At the Big Four — EY, KPMG, Deloitte and PwC — it examined 63 or 64 audits last year, up from 53 or 54 two years earlier.

    The deficiency rate, which the PCAOB has touted as a guide to audit quality, leapt after the Covid pandemic, but has been coming down in the past two years. Audit firms complained privately that the increase was partly the result of inspectors looking for minor errors that would not previously have attracted penalties.

    The PCAOB was created two decades ago after the Enron scandal to write audit standards for US-listed companies and to check that accounting firms were following them. Inspections are mandated by Congress, but the law does not set a minimum number.

    Kurt Hohl, SEC chief accountant, told an industry conference this month that reform of the inspection process was “overdue”, since the standards governing audit firms’ quality control systems had evolved.

    International regulators have created detailed new rules governing how accounting firms should manage their audit businesses, which include oversight and quality control measures.

    The PCAOB last year also approved new rules on how firms operating in the US should monitor audit quality, though their implementation has been delayed and could be revised.

    Focusing inspections on quality control systems rather than individual audits would “shift accountability to the leadership of the firm and their systems and processes, and less on individual engagement teams”, Hohl said. “There’s a lot of stress in the environment for teams that get inspected.”

    The policy shift should lead to fewer individual audits being selected for assessment in the case of most firms, McGowan said.

    “If audit quality is higher today than it was 20 years ago, then maybe there’s fewer individual engagements that need to be selected,” he said.

    George Botic, who has been acting PCAOB chair since July while the SEC considers a bigger shake-up of the board, said the organisation should tread carefully in revising the inspection programme, adding that it should seek input from investors and other stakeholders to make sure it meets their needs.

    Under the Sarbanes-Oxley law that created the organisation, only the results of individual audit inspections need be made public. Inspections of a firm’s system of quality management are only published much later if it fails to remediate any problems found within a year.

    If the SEC policy shift results in fewer inspection findings being made public, it “runs the risk of losing something that I think the PCAOB’s reputation and the capital markets have benefited from extensively over two-plus decades”, Botic said.

    Individual audit inspections will always be required as one way of checking quality management systems are working in practice. “There’s a certain number of files that one has to do,” he said. “We can debate what that number might be. Any significant pullback, we’d want to have a lot of outreach around that before we do that.”

    Christina Ho, a PCAOB board member who has backed accountancy firms’ positions in recent policy disputes, said she expected the number of audit inspections to fall under the new SEC regime.

    “Inspecting staffing levels could and should be cut more,” she said at a PCAOB meeting on December 19. 

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  • Ben & Jerry’s tops 2024 wastewater violations list for reporting lapses

    Ben & Jerry’s tops 2024 wastewater violations list for reporting lapses

    For the past 35 years, Ben & Jerry’s ice cream plant in Waterbury has pretreated wastewater before it is discharged into the municipal system. File photo by Gordon Miller/Waterbury Roundabout

    This story by Lisa Scagliotti was first published in The Waterbury Roundabout on Dec. 22, 2025.

    A state announcement of industrial wastewater pretreatment permit violations reports that Ben & Jerry’s ice cream plant in Waterbury topped the list of 17 companies that logged infractions in 2024. 

    The Vermont Department of Environmental Conservation oversees the industrial pretreatment program in coordination with the U.S. Environmental Protection Agency. 

    Federal rules require the state to publicly report significant non-compliance each year. 

    The data review and report for 2024, released on Dec. 12 by the Vermont Department of Environmental Conservation, lists 17 permittees found to be “in significant non-compliance during the 2024 reporting year.”

    Department Commissioner Misty Sinsigalli said the state views the industrial facilities that hold such permits “as key partners in environmental stewardship,” guided by specific requirements they must follow. 

    “Fulfilling these permit requirements is how we work together to safeguard the health of Vermont’s lakes, rivers, and wetlands,” Sinsigalli said.

    Industrial facilities such as breweries, dairy processing plants, and metal finishers receive pretreatment permits to discharge wastewater to municipal wastewater treatment facilities. The permits set discharge limits to prevent overloading the local wastewater treatment infrastructure. 

    Garrett Walsh, pretreatment coordinator with the state’s Wastewater Management Program, explained that the permitting process aims to track industrial wastewater, which ultimately is discharged into Vermont’s rivers and lakes. Big industrial entities that generate large quantities of wastewater are required to have systems on site to pretreat their wastewater before it’s sent into the municipal systems in the communities where they are located. 

    “Proper pretreatment helps ensure safe discharges from wastewater treatment facilities into our waterways,” Walsh said. “Without timely and accurate reports, DEC cannot properly manage its pretreatment program.”

    As part of the permit requirements, the permittees must submit monthly reports, report instances of non-compliance, and not exceed limits for pollutants set in their permits. Some examples of pollutants are nutrients, heavy metals, and biochemical oxygen demand (a measure of how waste impacts a water body’s oxygen content).

    State officials explained that significant non-compliance can occur when facilities discharge a pollutant that causes imminent risk to human health, or discharge pollutants that exceed their permit limits. Other examples of permit violations cover instances when permit-holders fail to submit monthly reports and other required documentation on time.

    Violations involve reporting, not overflows

    The list released this month by the state shows that six companies in 2024 exceeded the wastewater discharge limits and/or did not meet their requirements for monitoring set in their permits. Ben & Jerry’s Waterbury ice cream plant topped that list with 130 violations. 

    In Ben & Jerry’s case, the permit violations did not pertain to its Waterbury plant exceeding its wastewater output limits. 

    “It was due to a personnel issue,” said Heather Collins, the state’s Wastewater Management Program Manager. “It was not a flow issue.”

    Ben & Jerry’s spokesman Sean Greenwood confirmed that the company failed to meet some of its reporting requirements last year. 

    “In 2024, a routine internal audit of our wastewater treatment facility revealed that several required reports had not been submitted to the state. We notified state officials and began a thorough review of our practices,” Greenwood said. “It is important to note that at no time did Ben & Jerry’s release wastewater amounts exceeding permitted limits.”

    Ben & Jerry’s staff failed to submit a number of sampling reports in 2024. Collins said the 130 violations were for 24 missed reports on suspended solids, 12 on biochemical oxygen demand, two on total phosphorous and 92 daily reports on pH levels. The other seven violations for Ben & Jerry’s cited in the state’s announcement pertained to monthly reports not filed on time.

    Each wastewater pretreatment permit has specific requirements around reporting information to regulators, Collins explained. 

    “It’s easy to rack up that many violations if you have a daily requirement to collect and analyze some type of sample,” she said. 

    Each report has a required deadline, after which state regulators review the reports. 

    “If it’s 30 days past that date, if we haven’t received a report then you’re reporting late,” she said. 

    Once Ben & Jerry’s managers were aware of the reporting lapses, they turned their attention to improving their process for reporting, including hiring a consultant for advice, Greenwood said. 

    “We strengthened our operations, appointing a highly experienced Chief Wastewater Operator to best manage our operations moving forward, and engaged an independent environmental auditing firm to review our facilities and procedures,” he said. 

    Regulators from both the state of Vermont and the federal EPA visited the Waterbury ice cream plant. Following those reviews, the company implemented all recommendations from the auditing firm, which included updating procedural safeguards, hiring the additional wastewater operator, and establishing a system of checks and balances for monthly report sign‑offs, Greenwood noted.  

    Although all of the violations Ben & Jerry’s was cited for pertain to reporting and not exceeding the plant’s wastewater limits, Collins said it’s important for the state to have timely reports.

    “When we don’t receive reports, and if they miss samples, I can’t say that they were within permits limits or not, because I have no sample to determine that,” Collins explained. “If you don’t collect samples, I can’t tell if they exceeded the limits.”

    P. Howard “Skip” Flanders chairs the Board of Commissioners that oversees Waterbury’s Edward Farrar Utility District, which operates the municipal water and wastewater departments. He said issues with wastewater from the Ben & Jerry’s plant in the 1980s led to the company adding its pretreatment system around 1990 which has since worked well to prevent the industrial volumes from overburdening the municipal system. Flanders said there were no instances in 2024 or this year where the plant exceeded its wastewater output limits that resulted in EFUD exceeding its discharge limits.

    The flow coming from the ice cream maker typically does not strain the EFUD system, Flanders said.  

    “The Ben and Jerry’s volume is pretty well diluted when mixed and run through our lagoon system and then through the phosphorus removal process,” he explained. 

    The rest of the list

    The other six companies on the 2024 violations list for having exceeded their permit limits and/or not met their monitoring requirements and were found in significant non-compliance are: Metal stamping company New England Precision in Randolph with 68 violations; St. Albans Creamery in St. Albans, 23 violations; Butternut Mountain Farm maple sugar company in Morrisville, 16 violations; dairy cooperative Agri-Mark, Inc. in Middlebury, 14 violations; and Commonwealth Dairy in Brattleboro, nine violations, according to the state announcement. 

    The state’s report also lists a total of 11 companies that did not submit monthly reports or other required documents on time, which constitutes significant non-compliance with their permit requirements. 

    In this category, Ben & Jerry’s in Waterbury and Swan Valley Cheese of Vermont in Swanton each had seven violations. Ben & Jerry’s failed to submit seven monthly reports on time. Swan Valley missed making four monthly reports on time and had three other instances of failing to submit other documents, the list notes. Two other companies with reporting infractions in the same category included Lost Nation Brewery and Rock Art Brewery, both in Morrisville, with five and two reports not submitted on time, respectively. 

    A third category in the state announcement notes that two companies — Trapp Family Lodge in Stowe and Zero Gravity Craft Brewery in South Burlington — had significant violations for not following operation and maintenance requirements and not notifying state regulators. Trapp Family Lodge had one such infraction; Zero Gravity had seven, the list notes. 

    State officials noted that the information in this public report is based on 2024 data, and it does not represent the current compliance status of the companies on the list. 

    Collins said it takes time to review the various reports submitted by companies and her office right now is going through reports from the third quarter of this year. She said there have been no violations at the Waterbury ice cream plant to date. 

    Greenwood at Ben & Jerry’s confirmed: “We’re happy to share that we have had no non‑compliance issues in 2025.”


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