Rising adoption of AI technology by firms in the Federal Reserve's New York district has not been much of a job-killer so far, the regional Fed bank said in a blog on Thursday. Reuters: "Businesses reported a notable increase in AI use over the past year, yet very few firms reported AI-induced layoffs," New York Fed economists wrote in the blog. "Indeed, for those already employed, our results indicate AI is more likely to result in retraining than job loss, similar to our findings from last year," and so far the technology does not point to "significant reductions in employment."

There has been broad concern that AI could create major headwinds for hiring in the coming years, with the technology hitting highly-paid professional and managerial jobs the hardest. Investors are plowing cash into AI investments at a time when employment has already begun to show some softness, although job market changes related to AI will almost certainly play out over a long time horizon. The New York Fed blog noted that the modest impact on jobs so far may not hold in the future. "Looking ahead, firms anticipate more significant layoffs and scaled-back hiring as they continue to integrate AI into their operations," New York Fed researchers wrote.

U.S. workers are becoming more stressed about their rising personal debts and financial health, a Bank of America survey showed. From a report: Of the respondents polled by BofA, 47% of employed people said they had a sense of financial well-being, dropping from 52% at the start of the year. Nearly 85% of consumers carried some type of personal debt, while 26% of the workforce was seeking help in areas such as emergency savings, paying down debt, and overall financial wellness, compared with 13% in 2023, according to the May survey of more than 1,000 people working full-time.

One of Australia's largest banks has apologized to staff who found out they had been fired through an automated email asking them to hand back their laptops. From a report: ANZ's retail banking executive Bruce Rush said it was "not our intention to share such sensitive news with you in this way" as the firm cuts jobs in its retail banking business. The bank said the emails were sent to some staff ahead of schedule in error. It said it has since stopped sending the emails and that staff have been spoken to personally.

The Financial Sector Union said the email caused "panic and distress" and was a result of the company forcing through a "chaotic pace of change." The union's president Wendy Streets said it had not been consulted on the changes the bank was making, adding that "ANZ must do better." "Speed and cost-cutting cannot come at the expense of dignity and respect for workers," Ms Streets said, describing the "botched" episode as "disgusting." Mr Rush wrote in an email to staff: "Unfortunately, these emails indicate an exit date for some of our colleagues before we've been able to share their outcome with them."

An anonymous reader quotes a report from CoinTelegraph: Paying interest on stablecoin deposits could spark a wave of bank outflows similar to the money market fund boom of the 1980s, Citi's Future of Finance head Ronit Ghose warned in a report published Monday. According to the Financial Times, Ghose compared the potential outflows caused by paying interest on stablecoins to the rise of money market funds in the late 1970s and early 1980s. Those funds ballooned from about $4 billion in 1975 to $235 billion in 1982, outpacing banks whose deposit rates were tightly regulated, Federal Reserve data showed. Withdrawals from bank accounts exceeded new deposits by $32 billion between 1981 and 1982.

Sean Viergutz, banking and capital markets advisory leader at consultancy PwC, similarly suggested that a shift from consumers to higher-yielding stablecoins could spell trouble for the banking sector. "Banks may face higher funding costs by relying more on wholesale markets or raising deposit rates, which could make credit more expensive for households and businesses," he said. The GENIUS Act does not allow stablecoin issuers to offer interest to holders, but it does not extend the ban to crypto exchanges or affiliated businesses. The regulatory setup led to a significant reaction by the banking sector.

Several US banking groups led by the Bank Policy Institute have urged local regulators to close what they say is a loophole that may indirectly allow stablecoin issuers to pay interest or yields on stablecoins. In a recent letter, the organization argued that the so-called loophole may disrupt the flow of credit to American businesses and families, potentially triggering $6.6 trillion in deposit outflows from the traditional banking system.

Europe's share of global economic output has fallen from 33% to 23% since 2005 while its space launch capacity has nearly collapsed, launching just four rockets this year compared to over 100 for the United States and 40 for China. The continent's economic stagnation spans 15 years -- likely the longest streak since the Industrial Revolution according to Deutsche Bank calculations -- with Germany's economy growing just 1% since late 2017 versus 19% US growth.

Per capita GDP gaps have widened dramatically: $86,000 annually in the US versus $56,000 in Germany and $53,000 in the UK. Industrial electricity costs have become prohibitive, running three times higher in Germany and four times higher in the UK than American rates. "America innovates, China imitates, Europe regulates," Italian Prime Minister Giorgia Meloni observed. The continent's largest company by market value, SAP, now ranks just 28th globally.

Further reading: The Technology Revolution is Leaving Europe Behind.

An anonymous reader quotes a report from Ars Technica: As banks around the world prepare to replace many thousands of workers with AI, Australia's biggest bank is scrambling to rehire 45 workers after allegedly lying about chatbots besting staff by handling higher call volumes. In a statement Thursday flagged by Bloomberg, Australia's main financial services union, the Finance Sector Union (FSU), claimed a "massive win" for 45 union members whom the Commonwealth Bank of Australia (CBA) had replaced with an AI-powered "voice bot."

The FSU noted that some of these workers had been with CBA for decades. Those workers in particular were shocked when CBA announced last month that their jobs had become redundant. At that time, CBA claimed that launching the chatbot supposedly "led to a reduction in call volumes" by 2,000 a week, FSU said. But "this was an outright lie," fired workers told FSU. Instead, call volumes had been increasing at the time they were dismissed, with CBA supposedly "scrambling" -- offering staff overtime and redirecting management to join workers answering phones to keep up.

To uncover the truth, FSU escalated the dispute to a fair work tribunal, where the union accused CBA of failing to explain how workers' roles were ruled redundant. The union also alleged that CBA was hiring for similar roles in India, Bloomberg noted, which made it appear that CBA had perhaps used the chatbot to cover up a shady pivot to outsource jobs. While the dispute was being weighed, CBA admitted that "they didn't properly consider that an increase in calls" happening while staff was being fired "would continue over a number of months," FSU said. "This error meant the roles were not redundant," CBA confirmed at the tribunal. Now, CBA has apologized to the fired workers. A spokesperson told Bloomberg that they can choose to come back to their prior roles, seek another position, or leave the firm with an exit payment. "We have apologized to the employees concerned and acknowledge we should have been more thorough in our assessment of the roles required," CBA's spokesperson told Bloomberg.

The FSU said that "the damage has already been done." These employees "have had to endure the stress and worry of facing redundancy" and were "suddenly confronted with the prospect of being unable to pay their bills." FSU warned that CBA's flip-flopping on AI serves as a "stark reminder to all of us that we can never trust employers to do the right thing by workers, and change can happen at any time and impact any one of us."

Croatia has extended its digital nomad visa from one year to up to three years, allowing non-EU residents and their close family members to live and work remotely in the country. CNBC reports: A digital nomad visa is a short-term permit that allows individuals to stay in a country for an extended period and work remotely. The length of time a nomad can stay varies from place to place but most countries allow for six months to a year -- unless you have your eye on Croatia. Recently, the Balkan country announced it an update its digital nomad visa, which will allow non-EU residents to stay for up to three years. The visa also permits close family members of a digital nomad to join them.

Croatia's digital nomad visa website states that close family members also include partners or non-married couples who have been together for longer than three years without children, or for less time if they do have children together. Madrid Sartoretto believes that Croatia's expansion of its digital nomad program is a sign that the country is trying to attract more talent and compete with neighboring countries and their offerings.

"I think they are competing with other countries that are in the same region, like Estonia and Romania, that also attract a lot of digital nomads. If you give more benefits to people to come to your country, then you attract more talent. It's all about competition now," she adds. For those looking to apply for Croatia's digital nomad visa, Dr. Madrid Sartoretto says the country offers a low cost of living but still needs to improve its infrastructure, like more reliable internet speeds. "If you compare internet speed and reliability to countries like Romania, which has one of the fastest speeds in the world, Croatia needs to improve its infrastructure," she adds.

To apply for Croatia's digital nomad visa online, applicants must provide proof that they work outside of Croatia. Additionally, they must provide a copy of a valid travel document, proof of health insurance, proof of address in Croatia, and a minimum monthly income of 3,295 euros or $3,855 USD. For proof of income, applicants can submit a bank statement showing the total amount required, a bank statement demonstrating regular income, or pay slips for at least six months. Applicants must also send evidence that they have not been convicted of criminal offences in their home country or the country in which they have resided for more than a year immediately before arriving in Croatia.

The African Union has endorsed the "Correct The Map" campaign, urging governments and global institutions to replace the distorted 16th-century Mercator projection with the Equal Earth map that more accurately represents Africa's true size. Reuters reports: "It might seem to be just a map, but in reality, it is not," AU Commission deputy chairperson Selma Malika Haddadi told Reuters, saying the Mercator fostered a false impression that Africa was "marginal," despite being the world's second-largest continent by area, with 54 nations and over a billion people. Such stereotypes influence media, education and policy, she said. Criticism of the Mercator map is not new, but the 'Correct The Map' campaign led by advocacy groups Africa No Filter and Speak Up Africa has revived the debate, urging organizations to adopt the 2018 Equal Earth projection, which tries to reflect countries' true sizes.

"The current size of the map of Africa is wrong," Moky Makura, executive director of Africa No Filter, said. "It's the world's longest misinformation and disinformation campaign, and it just simply has to stop." Fara Ndiaye, co-founder of Speak Up Africa, said the Mercator affected Africans' identity and pride, especially children who might encounter it early in school. "We're actively working on promoting a curriculum where the Equal Earth projection will be the main standard across all (African) classrooms," Ndiaye said, adding she hoped it would also be the one used by global institutions, including Africa-based ones. [...]

The Mercator projection is still widely used, including by schools and tech companies. Google Maps switched from Mercator on desktop to a 3D globe view in 2018, though users can still switch back to the Mercator if they prefer. On the mobile app, however, the Mercator projection remains the default. 'Correct The Map' wants organizations like the World Bank and the United Nations to adopt the Equal Earth map. A World Bank spokesperson said they already use the Winkel-Tripel or Equal Earth for static maps and are phasing out Mercator on web maps.

PayPal payment processing has been unavailable for Steam purchases in most countries since early July 2025, Valve has confirmed, with functionality limited to transactions in U.S. dollars, Euros, British Pounds, Japanese Yen, Australian dollars, and Canadian dollars. In a statement to RockPaperShotgun, the company said one of PayPal's acquiring banks terminated all Steam transaction processing. Valve linked the bank's decision to previous Mastercard-related content restrictions. The disruption began in early July 2025 when PayPal notified Valve of the immediate termination, leaving millions of users in affected regions without PayPal access and no certain timeline for resolution.

Top fintech and crypto executives urged the Trump administration to block US banks from charging fees for access to customer data, levies that strike at the heart of their business models. From a report: Klarna, Robinhood and crypto exchange Gemini were among a long list of companies, investors and lobbying groups that signed a letter sent Wednesday to President Donald Trump, arguing that the proposed fees would "cripple" innovation and "may cause small businesses and financial tools to shut down entirely."

JPMorgan Chase has told fintechs and the data aggregators they rely on that the bank's customer account information will no longer be accessible without a charge. JPMorgan, the biggest US bank, views the data aggregators as freeloaders of sorts who access data without paying and then charge their fintech clients for it. PNC Financial Services is considering charging similar fees.

"We urge you to use the full power of your office and the broader administration to prevent the largest institutions from raising new barriers to financial freedom," they said in the letter. "We cannot allow the most powerful, entrenched banks to close the door on a more open and modern financial system."

NBC News reports that in the U.S., many recent graduates looking to enter the labor force "are painting a dire picture of their job search." NBC News asked people who recently finished technical school, college or graduate school how their job application process was going, and in more than 100 responses, the graduates described months spent searching for a job, hundreds of applications and zero responses from employers — even with degrees once thought to be in high demand, like computer science or engineering.

Some said they struggled to get an hourly retail position or are making salaries well below what they had been expecting in fields they hadn't planned to work in. "It was very frustrating," said Jensen Kornfeind, who graduated this spring from Temple University with a degree in international trade. "Out of 70-plus job applications, I had three job interviews, and out of those three, I got ghosted from two of them."

The national economic data backs up their experience. The unemployment rate among recent graduates has been increasing this year to an average of 5.3%, compared to around 4% for the labor force as a whole, making it one of the toughest job markets for recent graduates since 2015, according to an analysis by the Federal Reserve Bank of New York released Friday. "Recent college graduates are on the margin of the labor market, and so they're the first to feel when the labor market slows and hiring slows," said Jaison Abel, an economist at the Federal Reserve Bank of New York.

Across the economy, hiring in recent months has ground to its slowest pace since the start of the pandemic, with employers adding just 73,000 jobs in July, according to data released Friday... Tech workers have been some of the hardest hit in a slowing job market, with more than 400 employers including Meta, Intel and Cisco announcing more than 130,000 jobs cut in 2025, according to tech job site TrueUp.
The article cites an economist at Indeed Hiring Lab who believes early adoption of AI "is also likely driving some of the cuts and leading employers to rethink hiring plans in anticipation of AI's future role." So besides federal policy changes, the article blames "the emergence of AI, which some companies have said they are using to replace certain entry-level jobs, like those in customer support or basic software development."

Seven months after graduating, one CS major told NBC News he'd applied for 100 jobs, and got one job offer — for the 4 a.m. shift at Starbucks.

An anonymous reader shares a report: Apple CEO Tim Cook appears unfazed by concerns that advancements in AI could topple the iPhone's dominance. During Thursday's earnings call, Wamsi Moen, an analyst with Bank of America, asked Cook directly how Apple is preparing for a world where dependence on screen-based devices "significantly diminishes," thanks to advances in AI. Cook didn't seem to see an imminent threat to Apple's hero product.

"When you when you think about all the things an iPhone can do, from connecting people to bringing app and game experiences to life, to taking photos and videos, to helping users explore the world and conduct their financial lives and pay for things and so much more, you know, it's difficult to see a world where iPhone's not living in it," Cook said. "And that doesn't mean that we are not thinking about other things as well," Cook added, "but I think that the devices are likely to be complementary devices, not substitution." Apple said yesterday it had sold 3 billion iPhones since the product's launch in 2007

Hackers from the group UNC2891 attempted a high-tech bank heist by physically planting a 4G-enabled Raspberry Pi inside a bank's ATM network, using advanced malware hidden with a never-before-seen Linux bind mount technique to evade detection. "The trick allowed the malware to operate similarly to a rootkit, which uses advanced techniques to hide itself from the operating system it runs on," reports Ars Technica. Although the plot was uncovered before the hackers could hijack the ATM switching server, the tactic showcased a new level of sophistication in cyber-physical attacks on financial institutions. The security firm Group-IB, which detailed the attack in a report on Wednesday, didn't say where the compromised switching equipment was located or how attackers managed to plant the Raspberry Pi. Ars Technica reports: To maintain persistence, UNC2891 also compromised a mail server because it had constant Internet connectivity. The Raspberry Pi and the mail server backdoor would then communicate by using the bank's monitoring server as an intermediary. The monitoring server was chosen because it had access to almost every server within the data center. As Group-IB was initially investigating the bank's network, researchers noticed some unusual behaviors on the monitoring server, including an outbound beaconing signal every 10 minutes and repeated connection attempts to an unknown device. The researchers then used a forensic tool to analyze the communications. The tool identified the endpoints as a Raspberry Pi and the mail server but was unable to identify the process names responsible for the beaconing.

The researchers then captured the system memory as the beacons were sent. The review identified the process as lightdm, a process associated with an open source LightDM display manager. The process appeared to be legitimate, but the researchers found it suspicious because the LightDM binary was installed in an unusual location. After further investigation, the researchers discovered that the processes of the custom backdoor had been deliberately disguised in an attempt to throw researchers off the scent.

[Group-IB Senior Digital Forensics and Incident Response Specialist Nam Le Phuong] explained: "The backdoor process is deliberately obfuscated by the threat actor through the use of process masquerading. Specifically, the binary is named "lightdm", mimicking the legitimate LightDM display manager commonly found on Linux systems. To enhance the deception, the process is executed with command-line arguments resembling legitimate parameters -- for example, lightdm -- session child 11 19 -- in an effort to evade detection and mislead forensic analysts during post-compromise investigations. These backdoors were actively establishing connections to both the Raspberry Pi and the internal Mail Server."

JPMorgan's proposed fees for customer data access would cost fintech startups between 60 and 100% of their annual revenue "just from one bank," according to a trade group representing the affected firms. Steve Boms, executive director of the Financial Data and Technology Association, said the charges would apply across all 30 companies in his group that received pricing notices from the nation's largest bank. The trade association, whose members include Plaid, Fiserv and Intuit, called JPMorgan's move a "pure and simple" attempt to kill competition that would "put third parties out of business altogether."

The fees could take effect in September, ending more than a decade of free data access that fintech companies have used to build their business models. JPMorgan can now charge for data access after the Trump administration changed Consumer Financial Protection Bureau rules that previously prohibited such fees. The Financial Technology Association has taken the dispute to federal courts seeking to restore the Biden-era protections, while crypto trade groups have written directly to President Trump warning the fees would hurt digital currency companies.

A 21-year-old student who designed and distributed online kits linked to $175 million worth of fraud has been jailed for seven years. From a report: Ollie Holman created phishing kits that mimicked government, bank and charity websites so that criminals could harvest victims' personal information to defraud them. In one case a kit was used to mimic a charity's donation webpage so when someone tried to give money, their card details were taken and used by criminals.

Holman, of Eastcote in north-west London, created and supplied 1,052 phishing kits that targeted 69 organisations across 24 countries. He also offered tutorials in how to use the kits and built up a network of almost 700 connections. The fake websites supplied in the kits had features that allowed information such as login and bank details to be stored. It is estimated Holman received $405,000 from selling the kits between 2021 and 2023. The kits were distributed through the encrypted messaging service Telegram.

The Trump administration on Wednesday unveiled a 23-page "AI Action Plan" [PDF] designed to accelerate American AI development through deregulation and infrastructure expansion while countering Chinese influence in the technology sector. The plan, mandated by President Trump in January with a six-month deadline, establishes three core pillars: innovation acceleration, infrastructure development, and international AI diplomacy.

Central provisions include removing federal regulations that hinder AI development and directing agencies to withhold AI-related funding from states with "burdensome" AI regulations. The administration will streamline environmental permitting for data centers and energy infrastructure while expanding use of coal, natural gas, and nuclear power to meet AI's electricity demands. The plan mandates that government-procured large language models be "neutral and unbiased," addressing conservative concerns about perceived liberal bias in AI systems.

Trump signed accompanying executive orders requiring the US International Development Finance Corporation and Export-Import Bank to support global deployment of American AI technology. "To win the AI race, the U.S. must lead in innovation, infrastructure, and global partnerships," Sacks stated, emphasizing worker protection and avoiding "Orwellian uses of AI." The initiative represents Trump's campaign promise to position America as the dominant global AI leader while dismantling Biden-era AI safety requirements rescinded on Trump's first day in office.

Banks are treating "buy now, pay later" services with suspicion and warn that heavy usage could hurt customers' chances of getting approved for mortgages or credit cards. FICO will begin factoring some BNPL loans from companies like Affirm and Klarna into credit scores later this year through its new scoring model. JPMorgan Chase and Capital One have banned customers from using credit cards to pay down BNPL installment loans, while one credit union actively calls members who use BNPL to counsel them against it. BNPL transaction volume is expected to reach $116.67 billion in 2025, up from $13.88 billion in 2020, according to Emarketer.

Christine Hunsicker, founder of the failed "Clothing-as-a-Service" startup CaaStle, has been criminally charged with defrauding investors of over $300 million by falsifying financials and misrepresenting the company's health. CNBC reports: Authorities said Christine Hunsicker, 48, of Lafayette, New Jersey, promoted CaaStle to investors as a more than $1.4 billion "Clothing-as-a-Service" business that helped companies rent apparel to consumers with an option to buy, despite knowing it was financially distressed and short of cash. The alleged fraud spanned six years starting in 2019, three years after the Princeton University alumna was named one of Inc magazine's "Most Impressive Women Entrepreneurs" and Crain's New York Business' "40 Under 40."

Hunsicker was charged in a six-count indictment with wire fraud, securities fraud, money laundering, making false statements to a bank and aggravated identity theft. She turned herself in to authorities, and could face decades in prison if convicted. The Securities and Exchange Commission filed a related civil lawsuit. In a joint statement, Hunsicker's lawyers Michael Levy and Anna Skotko said the indictment presented "an incomplete and very distorted picture," despite their client being "fully cooperative and transparent" with prosecutors. "There is much more to this story, and we look forward to telling it," the lawyers added.

Authorities said Hunsicker falsified CaaStle's financial statements and bank records to raise capital. This included alleged representations that CaaStle earned $66.3 million on revenue of $439.9 million in 2023, when it actually lost $81 million on revenue of $15.7 million. Hunsicker was also accused of falsely telling investors their money would go toward buying discounted shares from existing shareholders who needed liquidity, including after the 2022 collapse of the FTX cryptocurrency exchange. Prosecutors said Hunsicker fraudulently raised more than $275 million for CaaStle and $30 million for a related venture, P180.

The House passed a bipartisan bill regulating stablecoins which now heads to President Trump's desk as part of his push to make the U.S. the "crypto capital of the world." Two other crypto-related bills -- one defining digital asset market structure and another banning a U.S. central bank digital currency -- were also approved by the House but face uncertain futures in the Senate amid partisan tensions and concerns over Trump's personal financial ties to crypto ventures. CNBC reports: The stablecoin bill, passed on a 308-122 vote, sets initial guardrails and consumer protections for the cryptocurrency, which is tied to a stable asset, often the U.S. dollar, to reduce price volatility. It passed the Senate with bipartisan support in June. "Around the world, payment systems are undergoing a revolution," said House Financial Services Chair French Hill of Arkansas as lawmakers debated the stablecoin legislation Thursday morning. Hill said the bill will "ensure American competitiveness and strong guardrails for our consumers."

After Trump declared it "crypto week," the bills were stalled for more than a day amid disagreements among House Republicans about how to combine the legislation. In the end, GOP leaders put the three bills for a separate votes, leaving the fate of the other two bills unclear in the Senate. The internal dissent could foreshadow challenges ahead for the more sweeping crypto legislation that Trump has demanded and the industry has poured millions into advancing. The stablecoin measure is seen by lawmakers and the industry as a step toward adding legitimacy and consumer trust to a rapidly growing sector. Treasury Secretary Scott Bessent said in June that the legislation could help that currency "grow into a $3.7 trillion market by the end of the decade."

The bill outlines requirements for stablecoin issuers, including compliance with U.S. anti-money laundering and sanctions laws, and mandates that issuers hold reserves backing the cryptocurrency. Without such a framework, Republicans on the Senate Banking Committee in a statement warned, "consumers face risks like unstable reserves or unclear operations from stablecoin issuers." After the votes, House Republicans strongly urged the Senate to take up the second bill, which would create a new market structure for cryptocurrency.

Digital tokens designed to track popular stocks have suffered extreme price deviations since launching two weeks ago, with an Amazon-tracking token briefly spiking to more than 100 times the underlying stock's closing price. The token AMZNX hit $23,781.22 on crypto trading platform Jupiter on July 3, while Amazon shares had closed the previous day around $200.

A similar Apple-tracking token jumped to $236.72 on July 3, representing a 12% premium to the actual stock price. Companies including Robinhood, Kraken, Gemini and Bybit launched these blockchain-based versions of U.S. stocks in late June for non-U.S. customers. Robinhood is facing scrutiny from Lithuania's central bank after launching tokens tied to OpenAI and SpaceX without permission from either company, prompting OpenAI to disavow the tokens on social media.