Headlines

Distressed Brazilian telecom operator Oi SA is preparing a chapter 11 bankruptcy filing in a US court, Bloomberg News reported. The company is working with law firm White & Case LLP, the people said, asking not to be named discussing private details. The company will probably file as soon as its ongoing chapter 15 process is canceled. (Subscription required.) Read more.

The bankruptcy of Groupcard, a company that provided prepaid cards such as city passes for municipalities, has affected roughly a third of all municipalities in the Netherlands, according to an estimate by the Association of Dutch Municipalities (VNG), NLTimes.nl reported. The bankruptcy, first reported by AD on Friday, was officially declared last month by the court in Amsterdam. Many municipalities had contracts with the company, and the financial damage appears to run into the millions.

Ballooning spending on children with special educational needs and disabilities is putting England’s already stretched local councils under even more financial strain, adding urgency to Prime Minister Keir Starmer’s plans to reform the system, Bloomberg News reported. Across the country, cumulative overspends on the so-called SEND program were forecast to double to £8 billion ($10.6 billion) by 2027 from about £4 billion in March, according to a report earlier this year by the Chartered Institute of Public Finance and Accountancy.

Five South London companies which claimed to have turnovers topping £1.6 billion have been shut down, after an investigation revealed that their accounts had been faked, The Standard reported. The Insolvency Service and Companies House obtained a High Court order on Thursday to close down Automarket Europe Limited, Integra Group Limited, Maxell Limited, Montana & Montana Limited, and Supermarket Plus Ltd.

A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company's contract over its Panama Canal port assets has been faced with lawsuits in the Central American country, the Associated Press reported. Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement.

The South African Reserve Bank cut its main repo rate by a quarter percentage point to 7% on Thursday, as inflation remains low in the midst of continuing global uncertainty, the Wall Street Journal reported. The decision continues the cutting cycle begun in September when the bank started to reduce rates from a 15-year high of 8.25%. Headline inflation in South Africa was 3% in June, up slightly from 2.8% in May, but at the bottom of the SARB’s target range of 3% to 6%. If inflation remains around 3%, SARB Gov.

Ever since President Trump began raising tariffs on goods from China during his first term, Chinese companies have raced to set up warehouses and factories in Southeast Asia, Mexico and elsewhere to bypass U.S. tariffs with indirect shipments to the American market via other countries, the New York Times reported. But on Thursday, Mr. Trump took aim at all indirect American imports, which he blames for part of the $1.2 trillion U.S. trade deficit. The president imposed 40 percent tariffs on so-called transshipments, which will take effect in a week.

U.S. President Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods to 35% from 25%, the White House said, Reuters reported. "In response to Canada's continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency," the White House said. Read more.

Swiss manufacturers warned on Friday that tens of thousands of jobs were at risk after U.S. President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for the key drugs sector, Reuters reported. The government said it would decide how to proceed after Trump set a 39% tariff on the export-reliant country - more than double the 15% rate for most European Union imports into the United States.

Millions of drivers will miss out on tens of billions in compensation after Britain’s highest court rejected claims drivers were mis-sold car loans, The Telegraph reported. The Supreme Court on Friday rejected arguments that customers should have been informed about “secret” commissions paid to car salesmen when they arranged loans to fund vehicle purchases. Judges overturned earlier rulings that had claimed payments from banks amounted to “bribes” and salesmen had a “fiduciary duty” to look out for customers.