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Europe
The Guardian

AI could cause global economic downturn, Bank of England governor tells G20

The Bank governor recently told City bosses: ‘No country can seal itself off from the cross-border nature of systems that are prevalent today.’ Photograph: Richard Drew/APView image in fullscreenThe Bank governor recently told City bosses: ‘No country can seal itself off from the cross-border nature of systems that are prevalent today.’ Photograph: Richard Drew/APGlobal economyAI could cause global economic downturn, Bank of England governor tells G20Andrew Bailey, in role as financial stability watchdog chief, warns advanced models risk destabilising system The Bank of England’s governor, Andrew Bailey, has joined the throng of figures warning about the global risks posed by the most advanced artificial intelligence technology. In a two-page letter sent to international finance ministers and central bank governors as part of his role as chair of the international Financial Stability Board (FSB), Bailey said “frontier” AI models were “showing increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities”. He said the models risked destabilising the “highly interconnected” global financial system via cyber-disruption that “can spread across jurisdictions”. Bailey wrote to G20 finance ministers and central bank governors before their meeting in North Carolina, US, this week: “Recent developments have also highlighted to me that many jurisdictions do not have the protocols in place to manage the development, release, and deployment of advanced frontier AI models, heightening risks for the financial sector and beyond”. His letter adds to alarm bells about AI that have been sounded by prominent technologists over the past few weeks – and mirrors his previous calls for international cooperation to tackle growing AI threats, when he told City bosses: “No country can seal itself off from the cross-border nature of systems that are prevalent today.” View image in fullscreenAndrew Bailey has raised concerns about high valuations in the AI markets. Photograph: Christian Ohde/AlamyLast month, a letter signed by 1,367 researchers and engineers at frontier AI labs – mainly OpenAI, Anthropic and Google DeepMind – also shone a light on the concerns of the engineers working on the technology every day. It stated: “There is a real risk that capability development rapidly accelerates beyond our ability to understand or control the resulting systems,” before going on to ask for the US government’s support for “an international effort to develop the technical and governance tools needed to deliberately pace the frontier of automated AI development”. Earlier this month, it also emerged that OpenAI staff observed signs of rogue behaviour among its cutting-edge AI agents weeks before they escaped their training environment to launch an unprecedented hacking crusade that spread global alarm. Extending this theme into the world of financial policy, Bailey continued: “For the financial system, the most immediate concern is the potential impact of frontier AI on cyber-risk. Frontier AI may have the ability materially to alter the speed, scale and economics of cyber-risk, which could undermine market confidence system-wide, especially due to highly concentrated third-party service providers.” Bailey called on those tasked with safeguarding the world’s financial systems to prioritise “appropriate steps to support safe and responsible model release and deployment on a global basis”. The letter also noted Bailey’s concerns about the increased use of leverage in bond and equity markets, which he said was combining with high valuations in concentrated financial markets – particularly fuelled by investor optimism about the prospects of AI – in a way that could amplify a future market correction.

AI could cause global economic downturn, Bank of England governor tells G20
Europe
The Guardian

Detroit despairs as ‘insanity’ of Trump’s Canada trade war punishes city

View of the Gordie Howe international bridge during the opening ceremony in Windsor, Ontario, on 24 July 2026. Photograph: Jeff Kowalsky/AFP/Getty ImagesView image in fullscreenView of the Gordie Howe international bridge during the opening ceremony in Windsor, Ontario, on 24 July 2026. Photograph: Jeff Kowalsky/AFP/Getty ImagesTrump tariffsDetroit despairs as ‘insanity’ of Trump’s Canada trade war punishes cityUnpopular new policy comes as midterms loom and control of Congress could be decided by several Michigan races Every day $1bn worth of goods crosses the river dividing Detroit, Michigan, and Windsor, Ontario, two largely blue-collar US and Canadian cities that have come to act as one in the creation of North America’s auto industry. News this week of Donald Trump’s escalating trade spat with Canada has everyone worried. Political and economic leaders and observers labeled the move an act of “hubris” , blamed Trump’s “ego”, and called the escalation “insanity”. But many are hoping that Trump’s plans to impose 50% tariffs on Canadian goods from 1 January, covering everything from automobiles to honey to hockey sticks, will prove another empty threat and cite the upcoming midterm elections as a pivotal reason the plan may be scrapped. Control of the US Congress hangs in the balance and will almost certainly be decided by several close Michigan races. It also comes just two months after polling highlighted Michiganders’ fatigue with and opposition to the president’s unprecedented tariff program. By a 63%-31% margin, residents here oppose tariffs on Canadian goods, according to a June Epic-MRA poll, including 35% of Republicans. Meanwhile, nearly 75% of Michiganders said the tariffs are fueling high prices. Trump doubling down on an unpopular policy deep into election season is viewed by many observers as a gift to Democrats, and there is a real possibility that it contributes to a midterm loss for the Republicans. Meanwhile, there seems to be little upside for Trump. “I don’t understand what Trump is thinking,” the Epic-MRA pollster Bernie Porn said. Regardless, Michiganders have already suffered disproportionately as they pay on average over $3,200 annually for tariffs, or about 142% more than the rest of the country, because of the state’s shared border with Canada. The Canadian economy would also take a major hit if the tariffs are imposed, said Patrick Anderson, a Michigan-based economist with the Anderson Economic Group. View image in fullscreenThe Democratic US Senate candidate Abdul El-Sayed greets supporters at Renaissance high school in Detroit, Michigan, on 7 August. Photograph: Jeff Kowalsky/AFP/Getty Images“Both will suffer – there are no two ways about it,” Anderson added. This critical upper midwest swing state has picked the presidential winner in five consecutive elections, going from Barack Obama to Trump to Joe Biden and back to Trump. Democrats’ chances to retake the Senate rest heavily on the Democratic nominee Abdul El-Sayed beating Trump ally Mike Rogers in the 3 November general election race. Rogers has supported the tariffs, but so far has been silent on the latest escalation.

Detroit despairs as ‘insanity’ of Trump’s Canada trade war punishes city
Europe
BBC Business

Japan Inc is betting big on India as China risks deepen

India's commerce minister Piyush Goyal led the country's largest-ever business delegation to Japan last week in a bid to expand trade and investment ties between the two countries. His visit came as Japan's deepening push into Asia's third largest economy has become increasingly more apparent. If you visit a shopping mall or a high street in Mumbai, Delhi or Bengaluru, it's hard to miss the growing number of Japanese consumer brands that have set up shop across India. Apparel giants Uniqlo and Muji and premium sneakers company Onitsuka Tiger have been around for a while, but are rapidly expanding. Niche players are also here - Nitori, a Japanese furniture maker, entered the market recently, while convenience store chain Lawson, external is on its way, with a plan to reportedly open 10,000 stores by 2050 in India, starting with Mumbai. It's not just retail. At a time when foreign lenders have been exiting their Indian bank portfolios, Japanese banks are aggressively bidding for Indian financial assets. MUFG Bank - Japan's largest bank - closed a deal to buy 20% of Indian shadow lender Shriram Finance for $4.4bn last year in what was the biggest ever foreign investment in India's financial sector. Last year also saw Sumitomo Mitsui Banking Corporation (SMBC) becoming the largest shareholder in India's Yes Bank with a 24.22% stake. Japan Inc is now the largest contributor to India's booming ecosystem of global capability centres (GCCs) in the Asia Pacific. More than 100 Japanese firms operate these GCCs in the country, according to a recent Deloitte report, external. GCCs are offshore innovation hubs of multinationals that perform business critical functions such as R&D, corporate strategy and artificial intelligence development among a plethora of other key jobs. "Japanese companies are having to look to India for growth. With the local population declining for the past 16-17 years there isn't just a slowdown in domestic demand, but a permanent shrinking of the market," Vipul Nath Jindal, Founder of Next Bharat Ventures, an impact fund backed by Suzuki Motor Corporation, which recently announced a $200mn fund in India, told the BBC. Image source, Bloomberg via Getty ImagesImage caption, Japanese companies announced $12.5bn in investments in India through some 120 agreements during PM Sanae Takaichi's visit in July At the same time, Japan's traditional markets for expansion have become increasingly less attractive, he says.

Japan Inc is betting big on India as China risks deepen
Europe
BBC Business

Amazon rigged billions in ad pricing, lawsuit from states and US watchdog alleges

The US Federal Trade Commission (FTC) and a bipartisan group of 22 states has filed a lawsuit alleging Amazon secretly overcharged more than a million advertising customers by manipulating online auctions it uses to set ad prices. The FTC and states say in their lawsuit filed Monday that the alleged scheme has likely netted the company $20bn from advertising customers since 2019. "Amazon overrides and replaces the actual auction results with higher prices set by Amazon to increase its profits," says a complaint filed in the company's home state of Washington. In a statement to the BBC, Amazon "strongly disagrees" with the premise that it misled advertisers and called the suit "misguided." In addition to advertisers, the FTC, a US consumer watchdog, and the states say Amazon customers have also been harmed as extra costs are passed onto shoppers. "Consumers are suffering, have suffered, and will continue to suffer substantial injury as a result," the complaint states, prompting swift pushback from Amazon. "The FTC wants the public to believe this case is about higher prices for consumers. It is not," Amazon said in its statement. The company's shares fell following the announcement of the lawsuit, closing 2.5% lower on Monday. Many brands and sellers compete on Amazon to place Sponsored Product ads and Sponsored Brands ads when consumer search for products using keywords on Amazon's e-commerce platform. The complaint accuses Amazon of secretly charging advertisers more in so-called "second price" auctions, whereby prospective advertisers expect to pay one cent more than the next highest bidder for each bid they win. But in practice, the complaint alleges, Amazon has charged its Sponsored Products advertisers their own winning bid close to 80% of the time. The lawsuit states that Amazon's methods were spurred because "it was unhappy about how much revenue its advertising auctions were generating".

Amazon rigged billions in ad pricing, lawsuit from states and US watchdog alleges
North America
CNBC Finance

Lost in limbo: Where the Paramount merger delay leaves WBD, and what may come next

It was only last summer that the company said it would split itself in two and began the process of creating separate, publicly traded entities: Warner Bros., which would have housed the streaming and film units, and Discovery Global, which would have run its global linear TV networks. Change seemed to be happening at breakneck speed. The company was in the midst of an aggressive buildout for its HBO Max streaming platform, pushing into new markets and chasing subscriber and profitability growth. Its film studio was showing signs of much awaited momentum. CFO Gunnar Wiedenfels had begun strategizing with fellow executives on how to run a business of just TV networks in a period of rapid decline. But after a sale process and a delayed merger with David Ellison's Paramount Skydance, much of that change has ground to a halt. WBD CEO David Zaslav said during an earnings call earlier this month that executives have "been trying to drive the value of the company" in order to have WBD in the best shape possible for when the merger would close. That was after a group of states led by California Attorney General Rob Bonta filed to block the deal on antitrust grounds — and before preliminary settlement talks between the California AG and Paramount seemed to fall apart earlier this week. The start-and-stop means Warner Bros. Discovery has fewer options on the table at a time when the media industry as a whole is charting new paths. The company — made up of the storied film studio, a portfolio of TV networks and a prestige streaming business — once looked agile. Now it's forced into being cautious. "This is as good a deal as Warner Bros. Discovery's going to get, and they are going to have a difficult time totally walking away here with no more than a breakup fee," said Tom Rogers, a media veteran who's currently senior advisor to Versant Media Group and executive chairman of AI film and TV production company Fountain 0. "So I think they have plenty of incentive to also figure out how this deal could get done." The proposed $110 billion sale price should be a windfall for WBD, Zaslav included. Paramount has agreed to pay $31 per share to acquire WBD, and if regulatory approval is delayed beyond September, Paramount will start owing a "ticking fee," raising the deal value. The questions that remain are what will Paramount be buying if the deal goes through after an extended delay, and what happens to WBD if it doesn't? WBD doesn't necessarily need to stand still as it waits for the merger to move forward. Interim operating covenants laid out in the merger agreement allow for WBD to run itself as an independent entity while the deal moves toward closing. That flexibility was a particular point of emphasis for Warner Bros. Discovery executives when it was negotiating a deal to sell itself — first with Netflix, then Paramount — according to a person familiar with the matter. In situations where WBD would need Paramount's blessing to do something while the transaction is pending, the agreement states those permissions can't be "unreasonably withheld."

Lost in limbo: Where the Paramount merger delay leaves WBD, and what may come next
Europe
BBC Business

Victoria Beckham's company makes its first profit after 18 years

Image source, Getty ImagesByIan YoungsCulture reporterPublished31 August 2026Victoria Beckham's fashion and beauty business has made an operating profit for the first time since she founded it in 2008, the company has said. Victoria Beckham Holdings Ltd, which is led by the former Spice Girl as creative director, made an operating profit of £7.3m in 2025, accounts show, after years of losses. "We have all worked hard for a long time for this moment of profitability and growth," Lady Beckham told the Financial Times, external. "We've been very transparent about the problems that we had in the business but have recovered and are now growing at a sensible pace. After 20 years, people don't look at my brand as a celebrity brand any more." Last year, a Netflix documentary told the story of her attempting to establish a fashion brand and achieve profitability - and the series itself helped boost sales, "with particularly strong momentum in denim and jersey", according to the accounts. The fashion side of the company delivered "strong double-digit growth" overall in 2025, they said, while the beauty side, which launched in 2019, "delivered one of its strongest performances to date". That was led by the popularity of her Foundation Drops, which had a 25,000-strong waiting list and which doubled the size of the skincare part of the company. The Netflix documentary showed the former pop star talking about her attempts to overcome doubters to be taken seriously as a designer and entrepreneur, then running into financial trouble when the company was "tens of millions in the red". The business was bailed out by her husband Sir David, who told the programme: "For her to have to come to me and say, 'Can I have some... We need some more money, the business needs more money' - that was hard for both of us because I didn't have the money to keep doing this." Lady Beckham said: "If he hadn't believed in me I wouldn't still have a business now." She went on to get £30m investment by selling 30% of the company to NEO Investment Partners in 2017, who launched a restructure. That included tackling what Beckham admitted was "mindblowing" waste, including "flying chairs from one side of the world to another" and spending what NEO's David Belhassen said was "70,000 a year" on office plants.

Victoria Beckham's company makes its first profit after 18 years
Europe
BBC Business

Trump administration illegally retaliated against Anthropic, judge rules

Image source, AFP via Getty ImagesByOsmond ChiaBusiness reporterPublished28 August 2026, 03:57 BSTUpdated 13 minutes agoA judge has ruled the US Department of Defense acted unlawfully when it designated artificial intelligence (AI) startup Anthropic a supply chain risk, calling the move "illegal and baseless". The company argued in the lawsuit that Defense Secretary Pete Hegeth overstepped his authority with the new designation. It followed Anthropic's refusal to allow the military to use its AI models for things that included surveillance or autonomous weapons. US district judge Rita Lin said in the ruling that citing national security "is not a blank check to punish and retaliate against government critics". Anthropic welcomed the ruling. The BBC has contacted the Pentagon and the White House for comment. Anthropic is focused on "working productively with the government to harness AI for our national security so all Americans benefit from this technology," a spokesperson told the BBC. Judge Lin said in the court filing that the Defense Department had acted unlawfully to order firms that do business with the US military to boycott Anthropic. The Pentagon designated Anthropic as a supply-chain risk in February - a law typically reserved for companies based in countries that pose a threat to the US. It marked the first time an American company had been publicly designated as such. Anthropic's lawsuit said the government's actions were both "unprecedented and unlawful". The Claude-maker said its models were not reliable enough to be safely used in weapons systems for the military. It added that it opposed its use for domestic surveillance as a violation of rights. The Pentagon said at the time that private companies should not be able to constrain military action. The White House had previously said Anthropic was "a radical left, woke company" attempting to control military activity" and argued the military was beholden to the US Constitution, "not any woke AI company's terms of service".

Trump administration illegally retaliated against Anthropic, judge rules
North America
CNBC Finance

American Airlines adds batch of new international routes on its XLR planes

American Airlines announced Thursday it will add seven international routes to its 2027 schedule, with many of those on its Airbus A321XLR planes. The carrier is also adding a fourth daily flight between JFK and London Heathrow Airport, on a Boeing 787-9, starting March 28. The Airbus XLR, which stands for extra long range, has the ability to go up to 4,700 nautical miles. The single-aisle planes are smaller than others in the airline's fleet, like a Boeing 777 or Boeing 787 Dreamliner, which makes them cheaper to operate. The airline rolled out a new interior and configuration with its inaugural XLR flight last year. It's allocated more space to premium seats — which take up a fifth of the plane — than it has on its other aircraft. American's plan is to use the XLRs to focus on routes to smaller European cities from its Philadelphia hub or from New York City. "It really opens up the menu for all these destinations that are just too small for a widebody," American's senior vice president of network and schedule planning, Brian Znotins, told CNBC last year. The airline said its Vienna route will extend through early January 2028 to draw tourists who are aiming to visit European Christmas markets. That follows a growing trend, as airlines have been adding more capacity in the shoulder seasons and even in the off-peak winter period as travelers opt to fly in the fall and other cooler, cheaper times of the year. American's announcement comes the same week that United Airlines unveiled its 2027 destinations. United is adding routes to less traditionally popular tourist destinations for U.S. travelers, spanning Ljubljana, Slovenia, to Okinawa, Japan. American has been trying to close a profit gap with rivals United and Delta Air Lines and said earlier this year that its flying is split about 80% domestic versus 20% international. International flights often carry a high premium compared with domestic routes — and the planes serving them generally have more luxurious seats on board, which can be more profitable for airlines. 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.

American Airlines adds batch of new international routes on its XLR planes
Asia
The Hindu BusinessLine

US wants India ‘by our side’ as NASA returns to the Moon, says envoy

US Ambassador to India Sergio Gor said that Washington wants India “by our side” as the United States returns to the Moon, revealing that NASA has officially invited ISRO to join its Moon base programme. “India is a proud signatory of the Artemis Accords, and NASA has officially invited ISRO to join us in the Moon base program. Make no mistake: we’re going back to the Moon, and we want India by our side on the lunar surface,” Gor said while speaking at the Bengaluru Space Expo 2026. His remarks come as under Artemis missions, NASA will send astronauts on increasingly difficult missions to explore more of the Moon for scientific discovery, economic benefits, and to build on foundation for the first crewed missions to Mars. Highlighting the India-US collaboration in space, Gor said the NISAR mission demonstrated how joint technology could directly contribute to saving lives. “And when we look at NISAR, we see that NASA and ISRO didn’t build a monument to scientific theory; they built a lifesaver. Literally,” he said. “When a devastating earthquake struck Venezuela just two months ago, NISAR’s radar data penetrated dense cloud cover and dust to guide emergency responders directly to ground zero. That is an example of what great things can happen when we work together. That is joint technology saving human lives in real time,” he added. Gor also highlighted India’s growing role in human spaceflight, citing Group Captain Shubhanshu Shukla’s mission to the International Space Station and the subsequent cooperation between the two countries. “Last year, Group Captain Shukla flew to the International Space Station, a landmark moment for India, made possible through American partnership,” Gor said. “Following the Axiom-4 mission and five joint science investigations, we are now looking at docking standards, interoperability, and astronaut training. TRUST creates capability. Capability creates ambition. And ambition takes us beyond the stratosphere,” he added. The US envoy also pitched greater opportunities for Indian space startups in the American market, highlighting companies including Pixxel, GalaxEye, Digantara, Bellatrix, Skyroot and Agnikul. “To every Indian space entrepreneur in this room: the American market is open to you. Our investors are watching you. Our ecosystems welcome you. We are here to help you make that leap,” Gor said. On broader cooperation in space governance, Gor said Washington and New Delhi were working together to establish global norms.

US wants India ‘by our side’ as NASA returns to the Moon, says envoy