Central bank bosses enlist for war game to gauge threat of Lehman-style bust

The bosses of the central banks and treasuries of the UK, US and EU are to take part in a war game in Washington on Saturday to test how they would handle the collapse of a globally significant bank.Amid growing unease over the risks to global financial stability, the most senior officials from the US Federal Reserve, the European Central Bank and the Bank of England – including its governor, Andrew Bailey – are expected to take part.In a so-called “desktop” stress test, behind closed doors in the US capital, the exercise will include the authorities wargaming how they would respond to another Lehman Brothers-style collapse.It comes as banking regulators from around the world sound the alarm over the growing risks to financial stability from AI, risky private credit lending, and potential disruption in markets linked to the US-Israel war on Iran.Finance ministers, executives and regulators discussed the potential risks as they gathered in Washington for the International Monetary Fund and World Bank spring meetings this week, including warning that the latest AI models from US tech companies could pose serious threats to financial stability

Iron will: Australia’s richest person counts the cost as court orders she share mining millions with rival family

Gina Rinehart, who’s been called Australia’s ‘female Donald Trump’, has long fought claims from the family of her father’s business partner – as well as her own childrenFull Story podcast: How Gina Rinehart lost hundreds of millions of dollars in courtAustralia’s richest person is reeling after a landmark court decision found her company must pay royalties worth hundreds of millions of dollars to a rival mining dynasty.Gina Rinehart, a multibillionaire with political connections in both the White House and the Australian parliament, has been described by members of the US conservative movement as “a female Donald Trump”. The 72-year-old, who inherited her father’s iron ore empire in Australia’s Pilbara region, has fought multiple claims against the family company Hancock Prospecting that were first launched in 2010.On Wednesday, in the Western Australian supreme court, Justice Jennifer Smith found that Wright Prospecting was entitled to its claim for a half share of royalties coming from one of the region’s largest projects – Hope Downs.Hope Downs is a joint venture between Rio Tinto and Hancock Prospecting and exports about 45m tonnes of iron ore annually from Australia’s north-west each year

Rachel Reeves to raise windfall tax on low-carbon electricity generators

Rachel Reeves is poised to raise the government’s windfall tax on low-carbon electricity generators to help limit UK household energy bills, the Guardian understands.The chancellor is ready to hike the levy introduced in 2022 to target the excess profits made by the owners of older renewable energy and nuclear plants as electricity market prices soared after Russia’s full-scale invasion of Ukraine.She could announce the plans to raise the so-called electricity generator levy as early as Tuesday, alongside a consultation on “radical” proposals to permanently weaken the link between soaring gas market prices and the cost of Britain’s electricity for the long term.Executives across the industry have been told to expect contact from officials on Monday to set out the government’s determination that electricity costs should be protected from the surge in gas markets and be set more often by cheaper renewable sources.Currently, the overall price is set by the most expensive source of power, which is usually gas power plants

Oil price drops below $90 a barrel after Iran says strait of Hormuz is open

Oil and gas prices fell sharply on Friday after Iran said the strait of Hormuz was open to commercial shipping, potentially clearing the way for tankers holding millions of barrels of oil and gas to reach the global market.Iran’s foreign minister said vessels would be free to transit the strait of Hormuz for the duration of the 10-day ceasefire between Israel and Lebanon, which was struck on Thursday.Brent crude, the international benchmark, fell more than 10% to $88.8 a barrel. That is well below a peak of $119 last month, but still much higher than the $72 before the war

Oil tumbles 10% and stock markets rally as Iran declares strait of Hormuz ‘completely open’ – as it happened

The oil price is tumbling, after Iran announced that the strait of Hormuz is now open.Crude oil has plunged by 10% on hopes that energy supplies could resume after weeks of disruption.Iran’s foreign minister, Abbas Araghchi, posted on social media that the waterway is ‘completely open’, following the ceasefire agreed between Israel and Lebanon overnight.double quotation markIn line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire.Araghchi added that vessels must travel on the “coordinated route” previously announced by Iran’s Ports and Maritime Organisation

Employees at first ever Starbucks store seek to unionize amid fight for contract

Workers at the historic first Starbucks store are seeking to unionize as the coffee retail giant and its union appear stalemated over their first contract.The first Starbucks store opened in 1971 in Seattle’s Pike Place Market, and the store serves as a tourist site in Seattle.Nailah Diaz, a Starbucks barista for about five years, three of those at Pike Place, said the Pike Place store can often have lines out the door, with waits up to two hours for tourists to come inside and look around.She said workers at Pike Place are tasked with greater customer service responsibilities and the significant tourist traffic can bring about issues with disruptive customers and safety.“I myself have experienced unfair treatment, favoritism, discrimination and harassment with little to no support from management, and for me, joining this fight is me making sure that no one else has to go through what I have,” said Diaz