Latest Developments

Europe
BBC Business

Trump says AI safety fears a 'hoax' as he rejects calls for greater safeguards

US President Donald Trump has said fears about the safety of AI are a "hoax", as he criticised calls to have more guardrails for the fast-moving technology. It comes after Jack Clark, a co-founder of AI giant Anthropic, told the BBC that a "kill switch" for dangerous AI that can be checked by a third party may need to be mandatory for the industry. Clark's comments followed warnings about the risks the technology poses to humanity that have been raised in recent days by several executives and staff at leading AI firms. Those concerns triggered a selloff in shares of some tech firms on Monday as investors weighed the impact of a potential slowdown in the development of AI. In a series of social media posts on Monday, the US president compared warnings about AI to the "Global Warming Scam", that he said was "being perpetrated by the Radical Left Dumocrats". On Monday, Chinese state media said experts had warned that "Washington's growing anxiety over China's rapid AI development appears to be increasingly distorting its policy priorities". "They know that China has become a strong competitor in AI, and worry that if the US slows down development or tightens regulation, China could catch up even faster," Xin Qiang, a professor of American Studies at Fudan University, told the Global Times. Clark, who is one of Anthropic's seven founders, said earlier on Monday that a way of shutting off AI software completely if it gets too dangerous was something society "might want to eventually pass rules around". He added that "most labs have different ways of being able to pull the plug", including Anthropic, but said lawmakers may need to enforce having one. Clark's comments add to the growing number of tech industry and political figures calling for better safeguards. On Monday, Microsoft AI became the latest major company to discuss limiting the models it is developing, as it published an outline document on what it called "humanist AI". The firm's chief executive Mustafa Suleyman told business news channel CNBC that it had been working on the new guidance for months and had decided to publish it now due to the current debate around the technology.

Trump says AI safety fears a 'hoax' as he rejects calls for greater safeguards
Europe
BBC Business

Why we bought our first home with a 100% mortgage - despite the risks

Until last year, Conroy, 32, and his partner Amber, 28, saw little prospect of owning their own home. They were renting in central Manchester where they work and could not afford to save up for a deposit. Then they came across a relatively niche, and some experts say riskier, type of mortgage that offered a solution. The Track Record mortgage from Skipton Building Society covers 100% of the value of a property, with the borrower paying nothing upfront. Borrowers must meet strict eligibility checks and pay a higher interest rate - in Conroy and Amber's case 5.33% fixed for five years - but they were happy to do this. And in August they bought a four-bed home for £242,000 in Swinton on the edge of Manchester. "I don't think it's dawned on us it's really ours," says Conroy, a video editor. According to the Bank of England, the share of UK mortgages with deposits worth less than 10% of the property's value is currently the highest it has been since 2008, external when such loans were widely available. It comes as lenders such as Lloyds, Santander, Skipton and Yorkshire Building Society have launched a raft of new mortgage deals over the last few years covering upwards of 95% of the value of a property, and in some cases as much as 100%. They say they want to help first-time buyers get on the housing ladder as property prices continue to rise and while saving for a deposit remains a struggle. But these loans tend to charge higher rates, aren't available for all types of property or borrower, and come with risks customers should be aware of. Conroy and Amber, a solicitor, have a 25-year loan with monthly repayments of £1,500 - roughly what they were paying in rent. He says they feel comfortable with the higher cost because they "earn quite well" and expect their salaries to rise. But he is aware there is a greater risk of falling into negative equity with a no- or low-deposit mortgage. That is when the value of a property falls below the value of the loan still owed on it - leaving the borrower with potentially painful costs if they suddenly have to sell.

Why we bought our first home with a 100% mortgage - despite the risks
North America
CNBC Economy

Inflation persisted in August, potentially locking in a Fed interest rate hike

Prices for a wide swath of goods and services continued to climb in August, according to a report Friday that raises the specter of a Federal Reserve interest rate hike next week. The consumer price index rose a seasonally adjusted 0.4% for the month, putting the 12-month increase at 3.4%, the Bureau of Labor Statistics reported Friday. Both readings were in line with the Dow Jones consensus. However, stripping out volatile food and energy prices, the core CPI posted a 0.3% monthly gain, or 0.1 percentage point higher than forecast. The core annual rate came in at 2.4%, matching the estimate. The report is the final major inflation indicator the Fed will see before it holds its policy meeting next week, concluding Wednesday with a vote on its key interest rate. Traders responded to the numbers by ramping up bets that the Federal Open Market Committee will increase its benchmark interest rate by a quarter percentage point. Odds for a hike jumped to nearly 90%, according to the CME Group's FedWatch tracker of fed funds futures prices. "There's no guarantee that the Fed will hike next week, but it's hard to see how the central bank can justify leaving rates on hold," said Chris Zaccarelli, chief investment officer for Northlight Asset Management. Stock market futures nonetheless surged as oil prices plunged in morning trade. Treasury yields were mixed, though the policy-sensitive 2-year note jumped 4.6 basis points to 4.594%. One basis point equals 0.01%. Energy propelled the headline number higher, as gasoline prices jumped 3.9%, accounting for more than one-third of the index's gain. The energy index broadly rose 2.1% amid pressure from escalating tensions in the Middle East and was up 16.3% from a year ago. Gasoline rose 27.4% and fuel oil surged 52% on a 12-month basis. Food prices edged 0.1% higher as food at home costs held flat. The food index accelerated 2.7% annually. Another significant factor was a 0.3% climb in shelter costs, which had moderated over the prior two months. Transportation services saw a 0.5% increase. Used cars and trucks rose 0.4% and new vehicle prices were up 0.3%, part of what appeared to be broad-based gains for the index. Tariff-sensitive apparel prices were flat and motor vehicle insurance fell 0.8%. Heading into the CPI release, markets already were pricing in a nearly 70% probability that the central bank would vote to increase its benchmark interest rate by a quarter percentage point. However, there have been differing views on which way the rate-setting Federal Open Market Committee will tilt, with some speculating that the difference could come down to hundredths of a percentage point in the CPI reading.

Inflation persisted in August, potentially locking in a Fed interest rate hike
North America
Yahoo Finance

Stock Market Is 'Overdue' For An Over 10% Correction, Says BofA Ahead Of FOMC Meeting

The stock market was taking a double hit Monday from growing concerns around the AI trade and another jump in oil prices, while BofA raised its S&P 500 target to 7,400 with a warning that stocks may be “overdue for a pullback.” In a note to investors cited by TheFly, BofA equity and quantitative strategist Savita Subramanian lifted her year-end S&P 500 target from 7,100 to 7,400. The new target still implies roughly 3% downside from current levels, underscoring the bank's cautious near-term view despite the higher full-year forecast. Subramanian said stocks are entering a “seasonally weak period” and due for a correction. She noted that the S&P 500 has experienced only one 5% pullback this year, compared with an average of roughly three per year, according to BofA. It added that a correction of at least 10% typically occurs about once a year, but the last such decline came in spring 2025. The warning comes as markets prepare for the Federal Reserve's policy meeting on Wednesday. CME FedWatch data showed a roughly 87% probability of a quarter-point rate hike. The market was already under pressure Monday, with Nasdaq-100 futures falling as much as 1.8% in early trading. Semiconductor stocks were hit particularly hard. Direxion Daily Semiconductor Bull 3X Shares (SOXL) fell about 14%, marking its second double-digit decline since August 18. Oil prices provided another source of pressure Monday, with West Texas Intermediate crude for October delivery up about 2.75% near $103 a barrel. Brent crude for November gained roughly 2.7% to above $107. Despite the near-term risks, Wall Street remains broadly bullish on the S&P 500. Barclays last week raised its year-end target to 7,950 from 7,800, citing a “standout earnings season” and “AI-driven earnings durability,” while noting that higher rates could keep valuations in check. HSBC raised its target to 8,100 from 7,650, while Fundstrat's Tom Lee has an 8,000 target. That leaves BofA's 7,400 target well below several major Wall Street forecasts, even after Subramanian raised her projection.

Stock Market Is 'Overdue' For An Over 10% Correction, Says BofA Ahead Of FOMC Meeting
Europe
BBC Business

Healey to ask EU finance ministers to let UK into industry scheme

The chancellor is to warn the European Union (EU) not to lock the UK out of its scheme to protect industries from unfair Chinese competition. John Healey will push for closer UK-EU partnerships on tech, defence, and manufacturing at a meeting of EU finance ministers in Dublin on Friday. But he will call on the EU to design its "Made in Europe" programme in a way that deepens ties with the UK "rather than erecting new barriers", Treasury sources told the BBC. Officials said Healey will tell European finance ministers it is important to "learn lessons" after talks collapsed last year for Britain to join an EU defence loans scheme. The "Made in Europe" policy, officially called the Industrial Accelerator Act (IAA), is currently being considered by the bloc and aims to protect EU manufacturing with restrictions on goods from outside countries. There is concern in government the scheme could lock British firms out of European supply chains. Treasury officials said Healey wanted to reduce the economic impact of Brexit and build closer ties with the EU, but not at any cost to the UK. Healey said: "The next chapter of Britain's growth story will be written in more places. "To me, closer ties with the EU means British businesses – wherever they are based across the UK – get better access to both the supply chains and the customers they need to grow." Healey will use the meeting in Dublin to focus on tech firms, defence companies, and manufacturing. "The chancellor wants to make sure nothing holds them back," a Treasury source said. It comes after a reset summit with the EU was delayed after Sir Keir Starmer's resignation as prime minister.

Healey to ask EU finance ministers to let UK into industry scheme
Europe
BBC Business

Brewdog's unpaid workers to receive nothing after takeover deal

Former Brewdog staff and several creditors of the collapsed Scottish beer giant are not expected to receive anything from the administration process. A report from administrators AlixPartners said there were "insufficient funds" for payouts to those owed money by Brewdog's retail arm. The Aberdeenshire-based brewer had more than £500m of debts when it was sold in March to US drinks firm Tilray in a £33m rescue deal. Administrators said about £489,000 was owed for staff wages and accrued holiday pay. A further £2.4m was owed to HMRC for unpaid VAT. BrewDog's takeover saw 38 bars close across the UK and £20m in unpaid bills left to hundreds of UK businesses. Unpaid businesses ranged from coffee shops, bakeries and laundry services, to lawyers, councils and holiday parks. AlixPartners said there were now "insufficient funds" for preferential creditors to be repaid. This is due to lower than expected funds raised through sales of Brewdog assets and increased costs during the administration period. The administrators cited unforeseen costs around the security of closed Brewdog pubs after a number of "unauthorised occupiers" gained access. The report highlights small amounts of money raised through asset sales. These include: A 7.8 acre field in Potterton, Aberdeenshire, which sold to a local farmer for £41,300 Nine Brewdog vehicles of "old age and varying roadworthiness" that made only £6,250 from just one sale. The rest were abandoned.

Brewdog's unpaid workers to receive nothing after takeover deal
Europe
The Guardian

Workers in New York seek to create first AutoZone union as company resists

An AutoZone store in Richmond, California, on 26 February. Photograph: David Paul Morris/Bloomberg via Getty ImagesView image in fullscreenAn AutoZone store in Richmond, California, on 26 February. Photograph: David Paul Morris/Bloomberg via Getty ImagesUS unionsWorkers in New York seek to create first AutoZone union as company resistsCompany may have spent about $200,000 to fight union effort in White Plains, where 11 people can vote to join UAW Workers at an AutoZone in White Plains, New York, are seeking to become the first store at the US’s largest auto parts retailer to win a union election, set to begin 25 September, despite a heavy-handed union opposition campaign from the company. LaborLab, a non-profit workers’-rights watchdog, estimates AutoZone has spent around $200,000 to oppose the unionization effort at the White Plains store, where 11 workers are eligible to vote to join the United Auto Workers Local 259. The estimate is based on external attorney costs and internal costs of executive salaries based on reports from workers at the store. The company has more than 6,800 retail stores in the US and reported a net income of $2.5bn in fiscal year 2025. Nathan DuCongé has worked at an AutoZone store in White Plains, New York, for about two years, where he started as a sales associate making minimum wage. “I just remember that being very low, but I needed it very badly, and so I accepted the job,” said DuCongé. “For a job that just essentially pays minimum wage, it just makes no sense, that you’re doing all of this work, which essentially is service sales, and you’re also expected to upsell certain products too.” He explained that the idea to unionize came from the low pay and working conditions, but took off after he attended an Emergency Workplace Organizing Committee training session and met an organizer with United Auto Workers. David Valencia, who also works at the AutoZone store in White Plains, said he began working there in May 2026, and became interested in the union after being scheduled to work the Fourth of July holiday and did not receive any sort of holiday pay or bonus for doing so. “When I got my paycheck and saw that they didn’t pay anything extra when part-time employees leave their families for holidays and sacrifice the time that they have with their families to come to work, you don’t get anything extra, any recognition, and that just blew my mind,” Valencia said. According to Indeed, AutoZone only provides paid holidays for eligible full-time employees. “Our goal is to get compensation, job security, just more things that closely reflect the value that we know that we bring to the company. We’re not getting close to what we’re worth,” Valencia added. “There is no bargaining when you’re alone. They’re only going to bargain when you’re together. So we don’t have a choice. Either we’re going to live in poverty and not be able to pay our bills, or we’re going to do this.” DuCongé and Valencia both explained that AutoZone management caught wind of the union organizing drive after they had collected enough union authorization cards to file for a union election with the National Labor Relations Board. They said the following day, the store became filled with regional and corporate managers and human resources executives.

Workers in New York seek to create first AutoZone union as company resists
North America
CNBC Finance

Bank of America expects third-quarter investment banking fees to fall more than 10%; shares slide

Bank of America is seeing a far more subdued few months for its Wall Street advisory and trading businesses after a blockbuster second quarter, CEO Brian Moynihan told analysts Monday. Investment banking fees will likely decline by more than 10% in the third quarter from the year-earlier period, while trading revenue will be roughly flat, Moynihan said at a conference. That compares to a second quarter in which the bank posted a 50% jump in investment banking fees and a 33% jump in trading revenue. "What we're seeing is the market generally in investment banking is down 10%," Moynihan said, citing Dealogic data. "We're not as well positioned in some of the businesses that have more activity, so we'll be down probably a bit more than that." Bank of America shares were down 5% in afternoon trading Monday following Moynihan's comments. The muted outlook from the country's second-largest bank by assets could be an early signal that Wall Street's AI-fueled advisory and trading boom might have hit turbulence. While Moynihan pointed to a robust deal pipeline, particularly in middle-market investment banking, the projected double-digit decline in investment banking may make investors wonder if the industry's surge in capital markets activity will prove short-lived. Later Monday, Citigroup CFO Gonzalo Luchetti told analysts that investment banking is tracking for "low-single-digit" revenue growth in the third quarter, while trading was heading for "mid-single-digit" revenue growth. Those figures could climb if Citigroup's bankers and traders end the quarter on a strong note, he said. "September is a key month," Luchetti said. "These few weeks are very meaningful." Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Bank of America expects third-quarter investment banking fees to fall more than 10%; shares slide
Asia
The Economic Times

Jefferies is bullish on Adani Ports and 5 other logistics sector stocks. How many do you have?

Jefferies said Indian port volumes rose 7% YoY in August 2026, driven by government-owned Major Ports. Indian Railways’ container volumes, however, declined 3% YoY, compared with a 10% YoY increase in port container volumes, which the brokerage attributed to Middle-East tensions. Here are 6 logistics stocks the brokerage is bullish on: Jefferies has assigned a Buy recommendation, a current market price of Rs 1,794 and a target price of Rs 2,160, indicating an upside of 20%. JSW Infrastructure carries a Buy recommendation, with its current market price of Rs 370 against a target price of Rs 395, implying an upside of 7%. Concor, a public sector undertaking, has a Buy recommendation, with a current market price of Rs 474 and a target price of Rs 650, pointing to an upside of 37%. The logistics giant carries a Buy recommendation, with a current market price of Rs 429 and a target price of Rs 540, implying an upside of 26%. Gateway has a Buy recommendation, with its current market price of Rs 54 and a target price of Rs 74, pointing to an upside of 38%. TCI Express has been given a Buy recommendation, with its current market price of Rs 484 against a target price of Rs 770, implying an upside of 59%. Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

Jefferies is bullish on Adani Ports and 5 other logistics sector stocks. How many do you have?