UK newspapers are scrutinizing new Prime Minister Andy Burnham's spending plans, including a national care service and bus fare caps, raising questions about funding and potential tax increases. Separately, PC Andrew Harper's mother expresses strong opposition to the early release of her son's killers.
Japanese government bond yields have reached multi-decade highs, with the 10-year benchmark hitting levels not seen since 1996. This development, driven by BOJ policy normalization and spending concerns, has sparked debate among experts regarding their investability, with some advocating for them while others prefer European bonds.
NATO Secretary-General Mark Rutte called for clear, concrete spending plans from allies at the Ankara summit. Nations agreed to invest 5% of GDP on defense, with the US pressing for increased contributions as it scales back its European security role. The Netherlands announced multi-billion euro defense deals.
Meta is reportedly building a new cloud business to sell excess computing power and AI model access to outside customers, potentially recouping billions spent on AI infrastructure. This move could generate revenue on unused capacity and place Meta in a competitive market dominated by giants like Amazon and Microsoft.
Meta's shares rose 10% after news of its plan to launch a cloud business, selling excess AI computing power to external customers. This move aims to monetize its significant AI infrastructure investments, entering a competitive market dominated by Amazon, Microsoft, and Google.
Taiwan is significantly boosting domestic military drone production, allocating $6.6 billion over six years to acquire over 208,000 coastal attack drones and other unmanned systems. This initiative aims to deter potential Chinese invasion and bolster Taiwanese manufacturers, who are forming international partnerships to export drones to the US and other markets, despite competition from China's DJI.
UK Defence Secretary John Healey resigned over a delayed Defense Investment Plan, citing a mismatch between national defense ambitions and allocated spending. The plan falls short of NATO targets, causing concern among allies and the defense industry.
Defence Secretary John Healey has resigned citing the government's military spending plans, which he believes fall short of national security needs and could make Britain less safe. This resignation is seen as a significant setback for Keir Starmer.
Defence Secretary John Healey resigned, citing government military spending plans as insufficient to meet growing international threats. He accused Keir Starmer and Rachel Reeves of risking national security by only planning a small increase in defense spending.
Defence Secretary John Healey resigned, citing government military spending plans as inadequate to counter growing international threats. He accused Keir Starmer and Rachel Reeves of jeopardizing national security by failing to commit sufficient resources, arguing for a 3% of GDP defence budget by 2030.
Defence Secretary John Healey has resigned, citing the government's defence spending plans as insufficient for current threats. He stated the investment plan falls short and backloads crucial support, risking force readiness and national safety.
Stock markets in Asia and Europe fell after a sharp US tech sell-off raised concerns over AI valuations and funding needs. Oil prices jumped on renewed Iran-Israel conflict before retreating after Iran said it was halting military operations.
The UK's defense spending plans may delay the Global Combat Air Programme (GCAP) fighter jet by several years, potentially impacting Japan's national security and forcing extensions to its current fighter fleet's service life.
Bond yields soar and pound falls against dollar as investors brace for potential Labour leadership changeBusiness live – latest updatesUK politics live – latest updatesLong-term UK borrowing costs soared to the highest level in almost three decades on Tuesday as fears about a change of Labour leadership triggered investor jitters and warnings of further bond market turmoil.With investors worried about potential changes to Labour’s tax and spending plans, the yield – in effect the interest rate – on 30-year government bonds, or gilts hit a high on Tuesday of 5.81%, a rise of 14 basis points and the highest since 1998. Continue reading...
Inflation fears fuelled by Iran war and renewd uncertaintly over Stamer;s leadership prompts bonds selloffThe risk to Labour’s tax and spending plans from the war in Iran was underscored on Tuesday, as long-term government borrowing costs hit their highest level since 1998.Fears of higher inflation as a result of the conflict have fuelled a selloff across government bond markets, which City analysts say has been exacerbated in the UK by uncertainty about the future of Keir Starmer’s government. Continue reading...
The Tony Blair Institute has urged Labour to scrap the pensions triple lock, calling it 'unaffordable' as Britain's ageing population drives up costs. The thinktank warns state pension spending will rise from 5% to 7.8% of GDP by 2070, adding £85bn annually. It proposes a pre-election pact to end the policy and replace it with a 'lifespan fund'. Chancellor Rachel Reeves has said the government will not drop the triple lock despite mounting financial pressure from Middle East conflict and inflation.
Alphabet shares rose over 7% while Meta fell 9% on Thursday following Q1 earnings, with investors showing divergent reactions to AI spending plans. Alphabet raised its 2026 capex forecast to $180-190 billion and reported 63% cloud growth, while Meta increased capex to $125-145 billion and is pursuing a $20-25 billion bond deal. JPMorgan downgraded Meta to neutral, citing a challenging path to returns on AI spending without a cloud business like Microsoft and Amazon.
Alphabet shares rose over 6% after beating Q1 estimates with 63% Google Cloud growth, while Meta dropped 9% despite beating earnings, as investors questioned Meta's $125-145B capex plan without a cloud business to monetize AI. Both tech giants increased AI spending, with Alphabet raising full-year capex to $180-190B and Meta to $125-145B, as analysts warn the AI spending cycle shows no signs of cooling.
Meta, Alphabet, Microsoft, and Amazon reported Q1 2026 earnings on Wednesday, revealing combined AI spending plans exceeding $500B. Meta shares fell 5%+ after raising capex guidance to $145B, while Alphabet jumped nearly 6% on strong Cloud growth. Microsoft and Amazon also declined as investors questioned AI returns, with Microsoft's free cash flow dropping nearly $6B year-over-year.
OpenAI has fallen short of its revenue and user growth estimates, prompting Finance Chief Sarah Friar to express concerns about the company's ability to fund massive data center spending plans. The board is closely scrutinizing computing deals as the company faces a revenue slowdown. Chipmaker and tech stocks including Oracle slumped on the news. OpenAI has committed billions in computing agreements, including a $300 billion deal with Oracle and expanded agreements with Amazon and Microsoft. CEO Sam Altman and Friar defended the company's compute purchasing strategy in a joint statement.
Tesla’s profit rose in the first quarter as its car sales rebounded from a sharp slump in 2025.
