Investment Banking and Insurance Sector

Britain's largest water company is on the brink of being seized into temporary public ownership by incoming PM Andy Burnham, a move that could cost taxpayers £2bn. A consortium of 100 institutional investors holding £17bn of the company's £21bn debt is open to government involvement but preparing for a potential legal battle if true nationalization happens (Guardian Business). The group, which includes Apollo Global Management and Elliott Management, wants to pursue its own £10bn rescue deal instead, arguing it would avoid the public bill entirely.

Starting October, Britain's central bank will no longer accept bonds tied to thermal coal as collateral when commercial banks borrow money—a rare climate policy move that treats coal as a financial risk, not just an environmental one (Guardian Business). The Bank quietly released this in June, making it stricter than most Western peers including the European Central Bank; climate campaigners hope it will force retail banks to dump coal assets from their balance sheets entirely. About 150 major global financial firms already restrict how they do business with thermal coal, but Bank of England's move is the first time a major central bank has essentially said these bonds are too risky to hold.

The 94-year-old is now donating his entire Berkshire Hathaway stake—worth roughly $140bn, or 13% of the company—to foundations run by his three children instead of the Bill & Melinda Gates Foundation, a shift that will play out between now and 2034 (Nasdaq). This isn't about overnight upheaval: successor CEO Greg Abel will likely keep Buffett's investment philosophy intact for years. But the move opens a long-term door to dramatic change—think dividend payouts to fund his children's philanthropic goals, similar to how the Hershey Trust and Hormel Foundation use dividends to protect their namesake companies.