Good morning. Here's what happened overnight and what you need to know today.
1.
Access granted: A sweeping cyber espionage operation exploiting a zero-day vulnerability in Microsoft’s on-premises SharePoint server software has compromised about 100 different organisations, including government bodies in the US and Germany, according to media reports citing Eye Security and the Shadowserver Foundation. Universities, energy companies and an Asian telecommunications company were also targeted, The Washington Post reported. The attacks began on 18 July and were still active when Microsoft issued patches over the weekend. SharePoint is used by businesses and government agencies for internal document management, data organisation and collaboration. According to the US Cybersecurity and Infrastructure Security Agency, the vulnerability provides unauthenticated access to systems and the ability to execute code, while Palo Alto Networks said the hack likely involves exfiltrating sensitive data, deploying persistent backdoors and stealing cryptographic keys. Microsoft released security updates for SharePoint Server 2019 and the Subscription Edition, but the 2016 version remains unpatched. Researchers warn the pool of targets includes industrial firms, banks, healthcare companies and government entities. (Reuters)(Bloomberg)(CNBC)(AP)(WaPo)
2.
Powell(ful) pressure: US Treasury Secretary Scott Bessent called for an inquiry into “the entire Federal Reserve institution”, while a Trump ally has referred Chair Jerome Powell for a criminal investigation by the DOJ, as the campaign against the central bank boss intensifies. Speaking on CNBC, Bessent questioned whether the Fed has “been successful” and accused the central bank of “fear-mongering over tariffs”. Republican Representative Anna Paulina Luna referred Powell to the Department of Justice for allegedly lying under oath. Bessent’s comments come amid a report from The Wall Street Journal that he has been so far successful in convincing Trump not to fire Powell despite his frustrations about the Fed not cutting interest rates. Powell cannot be fired unless a specific legal cause is established, which according to the Journal, Bessent has stressed would likely face major political, legal and market repercussions. Trump last week said it was “highly unlikely” he will fire Powell unless he “needs to leave for fraud”. The administration and Trump allies are nonetheless using the Fed’s USD2.5 billion headquarters renovation, which is reportedly about USD700 million over budget, to ramp up criticism. In response, the Fed has released information about the renovation, including a FAQ and a video tour of the project, with challenges encountered such as asbestos abatement and preservation of historical details. (Capital Brief)(Anna Paulina Luna)(Fed)(WSJ)(FT)(CNBC)
