Mark Filipino hosts this Financial Times news briefing covering major developments in energy markets, corporate reporting, and banking. The episode features FT correspondents George Steer discussing SEC regulatory changes and Ortensa Aliai analyzing HSBC's quarterly results.

Key topics include a global oil supply crisis with reserves plummeting due to the U.S.-Iran conflict, proposed changes to quarterly earnings reporting that could reshape corporate transparency, and HSBC's significant losses from fraud exposure and geopolitical tensions.

Global Oil Crisis Reaches Critical Point

Global crude reserves dropped at a record pace of 6.5 million barrels per day in April, according to SP Global Energy estimates tracking commodity prices.

The Strait of Hormuz has been effectively closed for two months due to the U.S.-Iran war, with no peace deal in sight and oil shipments completely stalled.

Goldman Sachs warns there are only 45 days of refined oil products left worldwide, including gasoline, diesel, and jet fuel, just as summer travel season approaches.

SEC Proposes End to Quarterly Reporting Era

The Securities and Exchange Commission proposed allowing companies to report twice yearly instead of quarterly, potentially ending a practice in place since the early 1970s.

SEC Chair Paul Atkins argues current rules are "too rigid" and distract management from focusing on growth and jobs - George Steer

Trump previously advocated for this change, noting that "companies in China have like 50 to 100 year views on growth" compared to U.S. short-termism - George

The proposal faces a 60-day comment period before final SEC vote, with investment community split on whether less transparency hurts capital allocation efficiency.

AI Security Reviews and Tech Compliance

Google, XAI, and Microsoft agreed to let the Commerce Department review new AI models before public release for national security risks including cybersecurity, biosecurity, and chemical weapons.

U.S. officials raised concerns over Anthropic's Mythos model launched in early April, citing its efficiency and potential to "turbocharge hacking."

Anthropic is notably not part of the Commerce Department agreement despite officials' security concerns about their latest model.

HSBC Hit by Fraud and Geopolitical Losses

HSBC shares fell sharply after revealing a $400 million fraud-related charge linked to UK company Market Financial Solutions, which collapsed in February under allegations of double pledging assets.

The bank's credit losses jumped 50% to $1.3 billion for the first quarter, with HSBC having indirect exposure through lending to Apollo-owned Atlas.

HSBC set aside $300 million for Iran war-related impairments, following Standard Chartered's $190 million provision for potential war losses - Ortensa Aliai

Despite setbacks, HSBC's share price is up 50% over the past year with strong wealth management performance and successful Asia pivot paying off.