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Europe
BBC Business

Barclays cutting 5,000 jobs as it increases reliance on AI

Image source, Getty ImagesByLucy HookerBusiness reporterPublished22 October 2026, 09:00 BSTUpdated 2 hours agoBarclays is cutting its staff by around 5,000 as it introduces more artificial intelligence (AI) into its work processes. The banking group said 1,000 posts had already been closed and it expects a further reduction of 4,000 to be complete by the end of this year, amounting to around 5% of its global workforce. The bank's cost reductions are focused on its UK retail bank, but some back office functions for the UK are done in India, where a significant proportion of the job cuts are expected to fall. Barclays said the changes were the result of an ongoing modernisation plan, with the use of AI being the "icing on the cake" of its strategy. The banking group is reaching the end of a three year cost-cutting programme focused primarily on its UK retail banking arm, although the investment banking division is also affected. Barclays also revealed it made £2.3bn profit in the three months to September, higher than the same period a year ago, but slightly less than forecast. Economists have been watching companies' results carefully for signs that investment in new technology, and AI specifically, is making a difference in their day-to-day operations, leading to greater efficiency and lower employment. Barclays Group chief executive CS Venkatakrishnan said the job cuts were the result of significant investment it is making in technology to simplify and improve its business. "AI has an important role to play and may have a more important role to play in the future. "We will employ the AI at scale," he said. "But AI is the icing on the cake not the cake. Barclays said around 60% of the job cuts will fall within its support functions, including among developers. Russ Mould, investment director at AJ Bell, said Barclays was "reaching for the AI lever, expecting to cut a decent chunk of its workforce as it expands the use of artificial intelligence", but had failed to match expectations with its financial results.

Barclays cutting 5,000 jobs as it increases reliance on AI
North America
CNBC Economy

Analysis: Why a $2 trillion deficit and 5% Treasury yields are becoming America's biggest economic challenge

Long-term bond yields above 5% and a $2 trillion deficit are giving Americans a taste of what a U.S. debt crisis would be like. A true emergency would hurt much more, and isn't baked in. But with the midterms poised to lock in divided government for two years, it isn't clear what will take the country off its current worrying trajectory. Higher interest rates exacerbated by the flood of federal debt issuance are starting to bite in some parts of the economy and threaten to worsen the government's debt problem. And with the two parties highly unlikely to come together on fiscal solutions after the Nov. 3 midterms, any fixes are years off in the future. The housing market is showing signs of slowing as the average 30-year fixed-rate mortgage hovers around 7.5%. Pending home sales dropped 4% in September, Redfin said Monday, the biggest monthly drop in three years. Mortgage rates track the 10-year Treasury yield. The 10-year has climbed 123 basis points, or hundredths of a percentage point, since the end of February through Wednesday's close, when the 10-year traded at 5.19%. Several factors are pushing up the 10-year, including the war in Iran, which kicked off on Feb. 28 and precipitated the rise in long-term yields. Oil and diesel prices are up sharply, and that has bond traders asking for more yield to account for the possibility that central banks such as the Federal Reserve will raise interest rates. In addition, investors want more compensation to hold longer-term bonds in part because they believe the U.S. government will continue to flood the market with them. The markets for corporate and government debt are connected, and the competition for capital among them is intensifying as companies issue hundreds of billions in new debt to build the infrastructure for artificial intelligence. Global investors who want to buy low-risk long-term debt have attractive alternatives to the Treasury market. If the U.S. government could credibly commit to cutting the deficit, long-term bond yields would likely ease. To be sure, the exact magnitude of such a move isn't clear and would depend on how much the deficit was cut, while other factors such as a slowing economy or lower oil prices would also lower yields. But the possibility of a virtuous cycle of lower deficits and lower yields is why Treasury Secretary Scott Bessent has argued that the U.S. ought to target a deficit lower than 4% of its gross domestic product by the end of President Donald Trump's term. There is almost no way the U.S. will hit that target. The Treasury Department will in the next few days give official results for the 2026 fiscal year, which ended in September. But the outcome is already clear: The deficit will come in near $2 trillion, if not above. That is likely to put the deficit in the range of 6.0-6.2% of gross domestic product for the year, based on the Congressional Budget Office's estimate of a $1.993 trillion deficit and a projection of third quarter GDP. Higher rates make debt reduction tougher. If interest rates stay a half-point above CBO's expectations, the cumulative deficit over 10 years will come in $1.9 trillion higher, the agency estimates. If rates overshoot by 1.5 points, that adds $6 trillion in deficits. CBO expects the 10-year Treasury to average 4.3% over that period, compared to 5.3% today. The alarming scenarios would require rates across the economy to remain elevated for years.

Analysis: Why a $2 trillion deficit and 5% Treasury yields are becoming America's biggest economic challenge
North America
Yahoo Finance

Black Monday Calls, $110 Oil, A Chip Rout: 3 Charts to Watch This Week

Calls for a “Black Monday” crash spread across social media over the weekend, but U.S. stock futures were pointing higher early Monday, the 39th anniversary of the 1987 market crash. S&P 500 futures were up about 0.53% in pre-market trade, while Nasdaq futures were up more than 1%. Dow futures traded flat. The fear was not baseless. The Nasdaq had its worst week since June, South Korea’s Kospi fell more than 16% in a month, and the 10-year Treasury yield stayed above 5%. The potential calm does not end the debate. Retail traders on Stocktwits were bearish on the SPDR S&P 500 ETF Trust (SPY) even as futures rose. A poll on the platform of more than 13,000 respondents found 47% expect the index to gain more than 1% this week while 30% expect a drop of more than 1%. The Federal Reserve sits at the center of these concerns. The central bank raised its benchmark rate in September to a range of 3.75% to 4.00%, its first increase in three years. Two hot inflation reports last week revived speculation about another hike. Chair Kevin Warsh declined on Friday to signal the next move, while Goldman Sachs put the odds of a December hike in focus. The Fed is scheduled to meet next week, a couple of days before the midterm elections. Three charts show how oil, AI-related stocks and the broader market’s sector rotation are shaping the outlook for the week. Brent crude settled at $109.86 on Friday, its highest close since May 19, after rising 3.7% in a single session. Brent gained 4.9% for the week, while U.S. crude advanced 10.4%. Since early July, energy stocks have outperformed the S&P 500 by roughly 25 percentage points, according to Koyfin data. Attacks on commercial ships near the Strait of Hormuz, Houthi missile strikes on Saudi Arabia and Ukraine’s strike on a Russian refinery have heightened concerns about fuel supplies. Government efforts to contain prices include planned fuel releases and changes to U.S. sanctions on Russian fuel. For markets, the risk extends beyond energy stocks. September consumer prices rose 3.7% year over year, up from 3.4%, while the 10-year Treasury yield reached 5.36% earlier this month before easing to 5.085% Friday. Further supply disruptions could keep oil elevated, complicating the Federal Reserve’s next move ahead of its Oct. 27-28 meeting. Memory and storage stocks have been among the hardest-hit parts of the technology market. So far this month, SK Hynix (SKHY) has fallen 29.5%, SanDisk (SNDK) has dropped 27.3%, the Roundhill Memory ETF (DRAM) has declined 25.1% and Micron Technology (MU) has lost 19.9%. The VanEck Semiconductor ETF (SMH), which tracks a broader group of chip companies, has fallen 12.6%. The sell-off comes after enormous gains earlier this year and reflects concerns about Chinese competition, AI companies’ revenue growth and higher financing costs. Yet demand indicators remain strong. Taiwan Semiconductor Manufacturing (TSM) raised its 2026 growth outlook to about 44%, Samsung forecast a sharp increase in quarterly operating profit, and TrendForce expects memory prices to rise in the fourth quarter. This week, investors will look for clues from Tesla (TSLA), Meta Platforms (META), Texas Instruments (TXN) and Western Digital (WDC). Their results and outlooks could help determine whether Monday’s pre-market chip rebound has staying power. SK Hynix reports next week, ahead of the Fed decision.

Black Monday Calls, $110 Oil, A Chip Rout: 3 Charts to Watch This Week
Europe
The Guardian

European air fares could rise by as much as 20% in 2027, Ryanair boss predicts

Ryanair and many other European airlines had hedged their jet fuel requirements for 2026, O’Leary said. Photograph: Alexandros Avramidis/ReutersView image in fullscreenRyanair and many other European airlines had hedged their jet fuel requirements for 2026, O’Leary said. Photograph: Alexandros Avramidis/ReutersAirline industryEuropean air fares could rise by as much as 20% in 2027, Ryanair boss predictsConflict in Middle East is pushing jet fuel costs higher and many carriers are not hedged against such increases, Michael O’Leary says Ryanair’s chief executive has predicted a record increase in European air fares next year, as airlines grapple with fuel bills pushed higher by the Middle East conflict. Many carriers are not hedged against rising jet fuel costs, Michael O’Leary said, which he predicted would lead to airline bankruptcies and takeovers. He forecast these pressures would result in the price of plane tickets rising by as much as 20%. “You’re going to see air fares rise next year in Europe, I think by 10, 15, maybe 20%. You’re going to see ⁠the biggest increase in air fares, I would say, in history in Europe for the next 12 ​months,” O’Leary told a news conference ‌in Brussels. Jet fuel prices have soared in recent months, as the war on Iran has choked off fuel supplies. Jet fuel accounts for a large portion of carriers’ costs. The airlines body IATA previously predicted jet fuel prices would be 70% higher across 2026 – estimated to average $152 (£114) a barrel for the year, compared with $90 in 2025 – slashing airlines’ profits. Ryanair and many other European airlines had hedged their jet fuel requirements for 2026, O’Leary said, adding that Ryanair was 80% hedged at $67 a barrel at the time the Iran conflict began in late February. However, the boss of Europe’s largest airline said most European carriers, including Ryanair, do not have significant hedging in place from April 2027 onwards to protect them if oil prices remain high. “We’re 85% unhedged next year, and most of the other European airlines are in a similar position,” O’Leary said. Ryanair’s hedging contract for 2027 covered 15% of its fuel costs at $85 a barrel, he added, whereas spot rates are currently hovering at about double that level. View image in fullscreenDuring his visit to Brussels, O’Leary announced he was cutting 20 of Ryanair’s routes and more than one million seats from Belgium from the airline’s winter schedule. Photograph: Olivier Hoslet/EPAEasyJet reported a £105m annual rise in fuel costs in July, adding it had hedged 62% of its fuel requirements for the first half of 2027 and 37% for the second half of the year. The airline announced in October it was cutting 700,000 seats from its winter schedule in an attempt to save fuel. During his visit to Brussels, O’Leary announced he was cutting 20 of Ryanair’s routes and more than one million seats from Belgium from the airline’s winter schedule, after the federal government’s decision to increase its aviation tax from €2 to €7 in January. O’Leary is the latest executive to warn of the downbeat outlook for aviation. Industry leaders have said some carriers will struggle to survive the fuel price shock. Passenger surveys have shown travellers are braced for higher fares and are prepared to spend more, but airlines do not know how long consumers will be able to afford pricier tickets.

European air fares could rise by as much as 20% in 2027, Ryanair boss predicts
Asia
The Hindu BusinessLine

Paytm expects UPI-MDR to boost earnings, but existing business already profitable

Paytm’s September-quarter revenue rose 28 per cent year-on-year to ₹2,648 crore, while EBITDA increased to ₹270 crore. Paytm’s existing business model is already generating profits, with the proposed UPI merchant discount rate (MDR) framework expected to provide incremental revenue and earnings upside rather than serve as the foundation of its profitability, according to the company’s Q2 FY27 earnings commentary and assessments by global brokerages. In its earnings commentary, Paytm positioned the potential introduction of UPI-MDR as an additional opportunity for its payments business, while expressing confidence in continued profitability improvements driven by existing operations. JP Morgan, in its report titled “First Take: All-round beat”, highlighted that Paytm’s focus on its merchant franchise and sharp cost control had helped the company achieve EBIT breakeven, proving the resilience of its merchant-led model. Goldman Sachs separately noted that Paytm expects EBITDA to continue improving even excluding any UPI merchant discount rate (MDR) upside, despite higher upfront costs associated with its lending distribution business. Bernstein’s financial estimates provide further support to this distinction. The brokerage forecasts approximately Rs 1,288 crore in FY27 EBITDA while explicitly excluding UPI-MDR from its projections. Paytm’s reported September-quarter results also demonstrate the profitability of its existing operations. Revenue increased 28 per cent year-on-year to Rs 2,648 crore, while EBITDA rose to Rs 270 crore, with margins expanding to over 10 per cent. Bernstein highlighted improving payments monetisation, with net payment revenue rising 7 per cent sequentially despite unchanged payment GMV. Financial services revenue increased 49 per cent year-on-year, demonstrating the growing contribution of another established business vertical. The brokerage commentary reinforces the distinction between Paytm’s existing earnings performance and potential incremental benefits from UPI-MDR. While the proposed framework could strengthen future payments economics, Paytm’s merchant-led platform, financial services distribution and operating efficiencies are already contributing to its profitability. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Paytm expects UPI-MDR to boost earnings, but existing business already profitable
Asia
The Hindu BusinessLine

Q2 Results Today Live: Coal India, Asian Paints, Indigo, Trent, Laurus Labs, Ambuja Cements, Godrej Consumer, Welspun Corp, Apar Industries, Motilal Oswal, Blue Star, Strides Pharma, Milky Mis Share to announce Q2 results

Two investors are working together with analyzing the stock data graphs in the paper and viewing the data on the laptop screen. istock photo for BL | Photo Credit: wutwhanfoto Q2 Results Today, 29th October 2026 Live Updates: Find all the latest Q2 results 2026 updates of Twentyfirst Century Management Services, 3i Infotech, Archean Chemical Industries, Anlon Healthcare, Alchemist Corporation, Alivus Life Sciences, Alldigi Tech, Ambuja Cements, AMJ Land Holdings, Anupam Finserv. Sensex rose 91.91 pts or 0.13% to 73,337.94 at 9.16 am after opening at 73,268.47 from 73,246.03 previous close. Nifty 50 was up 21.05 pts or 0.09% to 22,719.90. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Q2 Results Today Live: Coal India, Asian Paints, Indigo, Trent, Laurus Labs, Ambuja Cements, Godrej Consumer, Welspun Corp, Apar Industries, Motilal Oswal, Blue Star, Strides Pharma, Milky Mis Share to announce Q2 results
Europe
BBC Business

Is an 'AI war' complicating your job search?

I have lost track of the number of people who have told me they have applied for hundreds of jobs, only to be met with rejection after rejection. Often, they said it felt like a human had not even looked at their applications. There are lots of different types of recruitment tools. Some match candidates to jobs, others grade and screen CVs. Employers use them to save time sifting through applications, but there are growing concerns that these tools could be biased. I want to find out how fair AI recruitment tools being used to help decide our futures really are - and what happens when we click "apply". A London-based non-profit organisation, People Like Us, is raising awareness of people's legal right to challenge automated decisions when they disagree with the outcome. A survey conducted by Censuswide among 2,000 UK workers who had applied for at least one job in the past 24 months found that 75% were unaware of their right to challenge an automated rejection. Sheeraz Gulsher, CEO of People Like Us, is leading the campaign called Reject the Rejections, which calls on employers to improve transparency and accountability in the use of AI and automated recruitment systems. He describes the current situation as an "AI war", with candidates "resorting to AI to bolster their applications" while "employers are dealing with huge amounts of applications". Gulsher said: "We can't say for certain that every company is operating its automated or AI systems without bias. That's why we're calling for companies to audit these systems, publish the results and have them independently assessed. "In our research, we found guidance from the Information Commissioner's Office, external stating that people subject to certain automated decisions have the right to request a human review. We're trying to remind people of that right, as many simply aren't aware of it." The research also found 70% of ethnically diverse jobseekers had altered or concealed information on their CVs, including their country of origin, religion or name, out of fear that recruitment software or AI tools would reject their applications. This compares with 57% of white candidates. Business consultant Vivi, who lives in Lewisham, was made redundant earlier this year. She says she has applied for so many jobs that she's given up and started her own company.

Is an 'AI war' complicating your job search?
Europe
BBC Business

No order, no seat: Starbucks China rolls out new store policy

Taking a seat at a Starbucks in China? Just make sure you're also ordering something there. A new policy by Starbucks China takes effect across all its 8,000 stores on Thursday, making it mandatory for people to purchase items if they want to sit in its cafes. Starbucks China said the move was part of efforts to improve the "in-store experience" for customers. The company is facing stiff competition from homegrown brands such as Luckin Coffee. Starbucks stores around the world have also been wrestling with non-paying seat-hoggers and other undesirable behaviour from customers. In South Korea, Starbucks has told customers to stop bringing "bulky items" into their stores, after some patrons reportedly hogged seats with printers and desktop computers in tow. In North America, Starbucks reversed its open-door policy which for years allowed people to use their seats and toilets without buying anything, saying that it wanted to "prioritise" paying customers. Ahead of the official announcement on Wednesday, reports of the new seating policy at China's Starbucks stores had been circulating this week - along with social media videos of what appear to be "purchase to sit" signs in Starbucks stores. "Finally, there won't be peak periods where people are just sitting there not ordering anything, drinking Luckin coffee, playing games and yelling on the phone," reads one of the top-liked comment on Weibo. "Every time I walk around, there's nowhere to sit," "There's nothing wrong with it. I'd feel awkward sitting there if I didn't make a purchase. I'd rather leave the seats for those who made purchases and need the seats," another Weibo user commented. Last month, a Starbucks store in Sichuan province sparked debate after video of its chained-up outdoor seats and tables were circulated on social media. It appeared to be an attempt to block people from sitting there without paying. Since opening its first store there in 1999, China has become Starbucks' second-largest market. But it has faced stiff competition in recent years from Luckin and other local brands that offer cheaper products. Luckin also offers a robust app-based ordering system that prioritises grab-and-go transactions, challenging Starbucks' model of a full cafe experience where people can sit down and enjoy their food and drinks.

No order, no seat: Starbucks China rolls out new store policy
Europe
BBC Business

What is PHP and why did it spark a global cyber security scramble?

Image source, ReutersByOsmond ChiaBusiness reporterPublished10 minutes agoFor more than a decade, serious flaws had gone undetected in technology underpinning much of the internet. It took artificial intelligence (AI) to bring them to light and caused a global cyber-security alert. The vulnerabilities lie within a programming language called PHP, which has been used internationally since the 2000s to build websites. Governments and cyber-security agencies around the world scrambled to contain the fallout of this discovery on Wednesday, and have urged website operators to install a new emergency fix or consider taking their platforms offline. Cyber-security firm Wiz - one of the companies whose researchers uncovered the vulnerabilities - described the flaws as the "most severe" ever detected by AI. OpenAI, whose technology was used to find the flaws, called the discovery "one of the most impactful security issues in recent memory". Most people may not have heard of PHP - short for PHP: Hypertext Preprocessor - but they most certainly interact with it daily. PHP powers a vast number of platforms, including online shops, Wikipedia and WordPress – the content management system behind many websites like blogs. When you visit a website like Wikipedia, PHP is the code that collects information you need and presents it in a way you can read on the web, Paul Spain, chief executive of Gorilla Cyber Security, told the BBC. But due to a flaw that could allow attackers to take control of affected web servers without authentication and steal sensitive data, everything built on PHP was left exposed. AI could make such attacks easier and faster, Spain said, estimating that the flaw could affect "millions and millions" of websites. It would be "disastrous" if hackers or countries weaponised the flaw and seized private data from websites, said cyber-security researcher Jill Slay from the University of Adelaide.

What is PHP and why did it spark a global cyber security scramble?