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Europe
The Guardian

AI firm Anthropic to commit 5% of shares to fund for ‘public good’

Anthropic was valued at $965bn in May when it raised $65bn in a funding round. Photograph: Dado Ruvić/ReutersView image in fullscreenAnthropic was valued at $965bn in May when it raised $65bn in a funding round. Photograph: Dado Ruvić/ReutersAnthropicAI firm Anthropic to commit 5% of shares to fund for ‘public good’The $48bn giveaway comes amid concerns about the tech and as the company prepares for a stock market listing Anthropic has said it will commit 5% of its shares to a fund for the “public good”, as the AI developer behind the Claude chatbot seeks to bolster its appeal before its stock market listing. The company announced it would commit the shares, worth around $48bn (£36bn) at its latest valuation in May, subject to shareholder approval. It will add a further 2% of its stock to the fund for every 50% increase in its value above an undisclosed baseline. The fund will allow Anthropic to “explore large donations to traditional nonprofits or direct distributions to specific populations”, the company said. The move comes amid growing public nervousness about AI, from the threat to human labour to the impact on the environment and its influence on social behaviours. “AI may generate enormous economic value, but it could also cause instability for many workers,” Anthropic wrote in a blogpost. It said that while it had already committed $200m to addressing the issue, “given the pace of AI progress, bolder approaches may be needed. The fund will have the versatility to pursue them.” The company, which is preparing to list on the stock market, has called for a slowdown in breakneck development of AI, a warning later echoed by rivals such as OpenAI. Anthropic was valued at $965bn in May when it raised $65bn in a funding round. The company is reportedly considering a $1.5tn valuation when it floats on the stock market, with an IPO planned for November. Last week, Anthropic said some of its AI models could soon become “self-replicating” and find ways to infiltrate internet-connected devices such as smart fridges and automatic vacuum cleaners. View image in fullscreenElon Musk plans to ‘give one of my SpaceX shares to every kid in America’. Photograph: Gonzalo Fuentes/ReutersIt said that once this happens, the models would be able to power themselves without the need of datacentres. Elon Musk, the chief executive of Tesla and founder of SpaceX, responded to Anthropic’s plans for a public benefit fund on social media by pledging to give some of his own shares away.

AI firm Anthropic to commit 5% of shares to fund for ‘public good’
North America
CNBC Economy

IMF sees milder global slowdown as AI boom offsets war hit — warns resilience is nearing limits

BANGKOK — The International Monetary Fund has raised its forecast for global growth this year as the AI-driven investment boom helps offset some of the impact from surging energy costs, while warning that economic resilience could be nearing its breaking point. The IMF expects the global economy to grow at 3.1% in 2026, up from the 3% projected in July, but slower than the 3.5% rate last year. For 2027, it kept the forecast unchanged at 3.4%. The UN agency expects inflation at 4.1% in 2027, above the 3.9% it projected in July – when it estimated the Strait of Hormuz would reopen by mid-July, with conditions broadly returning to pre-war levels by March 2027. For the current year, it maintained its 4.7% outlook. "The global economy has been resilient, but that resilience is reaching its limits," Silvana Tenreyro, economic counsellor and director at the IMF research department, told reporters Tuesday, urging policymakers to restore fiscal space and supply-chain security. The IMF now estimates that the Strait of Hormuz will reopen in March next year and return to pre-war state by October. Gulf crude exports averaged 88% of pre-conflict levels in September as traffic picked up, the international body said. The report was released at the IMF and World Bank annual meetings in Bangkok this week, where finance ministers and central bank governors from the fund's 191 members are meeting to discuss geopolitical tensions, mounting public debt and artificial intelligence. AI-related investment gave the global economy a "demand impulse" that helped activity in the first half of the year hold up better than expected, despite the Middle East war and trade tensions, the IMF said. Financial markets also stayed largely calm, which the fund said may partly reflect "AI-related exuberance." For now, "use of buffers and adaptability have helped economies weather the negative shocks," the IMF said, citing measures such as diversifying fuel sources, tapping strategic reserves that have contained the energy-market turmoil unleashed by the Middle East war. But that cushion is "rapidly narrowing" in the near term, it said. Global oil reserves are being drawn down by about 2.7 million barrels a day, nearing levels that could trigger sharp price moves, and energy constraints could impair the AI-led momentum. The growing unease over governments' fiscal health also adds to the headwinds. Tenreyro said monetary policy should remain "sufficiently restrictive" to return inflation to target in a timely way, and that central bank independence is critical as governments face mounting financing pressure. Overall growth is also becoming increasingly uneven. Thirty-two economies now account for 95% of global growth, down from 54 in April. Countries that have limited exposure to the war-led supply shock and are catering to the AI-led demand are holding up or strengthening. Taiwan is forecast to grow 10.7% this year and South Korea 3.3%, up from 1.1% in 2025 on semiconductor demand. The U.S. is projected to expand 2.3% in both 2026 and 2027, supported by private consumption, fiscal policy and tech investment.

IMF sees milder global slowdown as AI boom offsets war hit — warns resilience is nearing limits
North America
CNBC Economy

IMF warns bond yields could see a 'disorderly' spike as debt, inflation risks worsen 

BANGKOK – The International Monetary Fund warned Tuesday that government bond yields could rise in a disorderly fashion, as rising inflation, mounting debt and AI-related borrowings pressure sovereign bond markets. Government bond yields in several advanced economies have climbed to multidecade highs, driven by higher energy costs due to the Middle East conflict and expectations for tighter monetary conditions as central banks look to curb resurgent inflation. In its latest Global Financial Stability Report, the fund warned that sovereign bond risk could deteriorate, warning of "a sharp rise in sovereign bond yields." The report was released Tuesday as part of the IMF-World Bank annual meetings in Bangkok, Thailand, this week, where more than 18,000 delegates gathered to discuss the state of the world economy and the financial system. High debt load and rollover risks make the bond market "susceptible to more frequent fiscal and inflation shocks," the report said. The IMF had warned last week that global public debt had reached near its highest level since World War II and was on track to soon exceed 100% of GDP. "Impact could be severe given the foundational importance of sovereign bond markets," the IMF said Tuesday. A sharp rise in yields would mark down asset values through higher discount rates, including for AI-related assets, and erode the value of government bonds posted as collateral. IMF also noted the exponentially rising borrowing by AI firms — that compete with sovereign bonds for investor demand — as an additional source of strain on bond markets. Hyperscalers' share of global investment-grade bond issuance has risen to 10% from less than 1% since 2024, the report said. The global AI buildout has seen tech giants, such as Alphabet Inc's Google, Meta Platforms, hyperscalers and AI labs raising hundreds of billions of dollars in debt this year. "AI-linked issuance – much of it longer-dated – has grown large enough to compete with government bonds for investor capital, even if it does not appear to be the dominant driver of yields," according to Marc Seidner, CIO of non-traditional strategies at Pacific Investment Management. On the bright side, liquidity measures remain stable in the U.S., Europe and the U.K., the IMF said, and market functioning "has been orderly." While hedge funds' leveraged Treasury basis trades have partly unwound without notable pressure in repurchase markets, the leverage that remains leaves the market "susceptible to a disorderly unwind," according to the report. Hedge funds' share of U.S. Treasuries rose to about 9% in 2025 from about 4% in 2022, mostly through highly arbitraged strategies, the IMF said, citing data from the Federal Reserve. Japan is the exception on liquidity, which has "continued to deteriorate" in its government bond market as yield volatility has risen since the end of yield curve control, the IMF said.

IMF warns bond yields could see a 'disorderly' spike as debt, inflation risks worsen 
North America
Yahoo Finance

What Was Eli Lilly Telling You Before Its Stock Ran?

An investor who put $10,000 into Eli Lilly (LLY) stock on October 14, 2025 held about $15,500 by October 15, 2026. Placing that same sum in the S&P 500 over the identical period would have yielded about $11,790. By mid-2026, two drugs, Zepbound and Mounjaro, accounted for most of the company’s sales. How early did those two drugs show up in what Lilly said and filed? The drugmaker highlighted both treatments during its fiscal Q3 2024 call on October 30, 2024, nearly a year prior to the twelve months measured here. Executives noted that new product revenue expanded by over $3 billion, led by Mounjaro and Zepbound. Expanding manufacturing also emerged as a top priority during that presentation. Those remarks suggested the primary constraint on the business was production capacity rather than prescription demand. The quarter detailed on that call ended September 2024 and posted a 20.4% year-over-year revenue increase. Stripping out the olanzapine portfolio, management noted that revenue actually grew 42%. In short, executives focused heavily on supply at a moment when growth was already strong. A run like this can leave Eli Lilly a much larger share of what you own than you planned. See how to protect a concentrated position. Subsequent filings showed sales rising as new supply hit the market. Management confirmed on a February 6, 2025 call that the company had successfully delivered on its production target. On that call, Lilly reported that revenue grew 44.7% from a year earlier in the quarter ended December 2024. That pace held steady, with growth registering at 45.2% in the quarter ended March 2025. The drugmaker also retained more of each dollar of sales. Its operating margin reached 45.1% in the quarter ended June 2025, an increase from 38.8% in the quarter ended September 2024. Supply remained a focal point on the August 7, 2025 call, with executives stating they wanted to “ensure demand doesn’t exceed supply”. Yet the financial picture was not perfectly clear at the time. Revenue growth slowed to 37.6% in the June 2025 quarter, and the company filed no later quarter before October 14, 2025. Shares of Lilly rose 7.7% in the six months leading up to that date while all of this data was public. The signs were present, but they are much easier to read now than they were then. During an August 5, 2026 call, management reported that Zepbound and Mounjaro generated $14.9 billion in the quarter ended June 2026. This figure represented about 65% of Lilly’s revenue for the quarter. Combined sales for the treatments increased $6.3 billion from the June 2025 quarter. Lilly was not the only drugmaker to rise, however: Merck returned 76.5% over the same twelve months, outpacing Lilly’s 55%. The company’s messaging remains consistent with its statements prior to the stock run. Management reported that U.S. revenue grew 33% in the June 2026 quarter, mainly on higher volumes of the two drugs. Excluding a change in estimates for rebates and discounts, U.S. prices actually fell 9%. This indicates that the growth came from more prescriptions, not higher prices. Lilly is also still adding supply: the drugmaker produced its first batch of commercial material at a new site in Limerick, Ireland. Growth has eased since the March 2026 quarter. Lilly’s revenue rose 47.7% from a year earlier in the June 2026 quarter, compared with a 55.5% expansion in the March quarter. Combined sales of Zepbound and Mounjaro are the number to watch in the company’s next report, expected on or around October 29, 2026. Most investors only saw Eli Lilly’s run after it had happened. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Glenn Caldicott, CIO of our Boston-based partner firm Empirical Asset Management, an SEC-registered investment adviser, offers a free 15-minute strategy review of ways to protect a concentrated position and unwind it with less tax.

What Was Eli Lilly Telling You Before Its Stock Ran?
North America
Yahoo Finance

Why You Should Think About Palantir Differently Now

Palantir Technologies (PLTR) stock trades at 78.2 times sales, compared to 3.1 for the S&P 500. Investors paying that premium need to know exactly what they are buying, and the case Palantir makes has evolved. During the fiscal Q3 2024 earnings call, executives highlighted the fast-growing number of U.S. businesses signing on as customers. By the latest call in fiscal Q2 2026, the focus had shifted. So what does management talk up now? By sovereign AI, Palantir means an architecture where companies maintain full control over their own data and the artificial intelligence built upon it. During the fiscal Q2 2026 call, held August 3, 2026, executives reported immense demand from enterprises for this capability. They contrasted this approach with purchasing external services from AI labs, a process they described as paying outside vendors to move proprietary corporate knowledge into third-party models. The pitch sounded quite different during the fiscal Q3 2024 call. At that time, leadership highlighted that Palantir’s U.S. commercial customer count grew to 321. Expanding that baseline served as a clear signal that more U.S. companies were adopting the software. While Palantir still reports the customer count, the metric no longer takes center stage. Instead, the company links sovereign AI directly to increased spending per client. Customers that previously utilized only the Foundry software now want access to the broader sovereign AI stack. The core argument now rests on the size of individual customer commitments, rather than the sheer number of clients. Shifts like this test every retirement plan. If your advisor recently retired, it is a good moment for a free second opinion from our partner firm. Sales to the U.S. businesses are growing much faster than the number of businesses buying. Palantir’s U.S. commercial customer count reached 653 in fiscal Q2 2026, up 35% from a year earlier. Over that same period, U.S. commercial revenue rose 149% to $764 million. These buyers belong to Palantir’s commercial segment, a division that generated $2.07 billion in fiscal 2025, accounting for 46.3% of the company’s total revenue that year. Contract values follow a similar trajectory. U.S. businesses signed deals with Palantir worth $2.132 billion in total in fiscal Q2 2026, up 153% from a year earlier. Consequently, the average customer is committing significantly more capital than they were just a year ago. Executives labeled that contract total a record, forming the foundation of the case they now present. Thus far it is, because Palantir’s profit is rising alongside the larger enterprise spending. Revenue grew 92.8% from a year earlier in fiscal Q2 2026 to $1.94 billion. At the same time, the operating margin reached 47.1%, up from 26.8% a year earlier. The main risk is how much Palantir relies on a few large buyers, government and business together. According to the company, Palantir’s top 20 customers accounted for an average of $124 million each over the twelve months to June 2026. That amounts to about $2.48 billion, or about 40% of Palantir’s total revenue of $6.16 billion over those twelve months. The average U.S. business customer now spends substantially more than a year ago, and the latest corporate messaging reflects that reality. Looking ahead to Palantir’s next report, expected on or around November 2, 2026, the key metric to watch is whether U.S. commercial revenue continues to grow much faster than the customer count. What Palantir Technologies’s management talks about has changed, and holders are left to work out why. When the advisor who built your plan moves on, it is a natural moment to ask whether the plan still fits the life you have now. Glenn Caldicott, CIO of our Boston-based partner firm Empirical Asset Management, an SEC-registered investment adviser, offers a free review of your holdings, fees and income plan.

Why You Should Think About Palantir Differently Now
Europe
The Guardian

China’s economy grows faster than forecast after AI boom boosts exports

China’s economy has grown by 4.6% in the first nine months of the year. Photograph: Peter Parks/AFP/Getty ImagesView image in fullscreenChina’s economy has grown by 4.6% in the first nine months of the year. Photograph: Peter Parks/AFP/Getty ImagesChinese economyChina’s economy grows faster than forecast after AI boom boosts exportsThird-quarter GDP up by 4.5% compared with last year as industrial output is buoyed by electronics demand Roaring exports lifted China’s economic growth in the third quarter of this year, with factory output growing much faster than consumer spending. China’s GDP grew by 4.5% year-on-year between July and September, the National Bureau of Statistics of China reported on Monday. The figures were better than economists had expected and up from the second quarter’s growth rate of 4.3%. China’s economy has now grown by 4.6% in the first nine months of the year, putting it on track to hit the government’s 2026 target of 4.5%-5% growth without extra stimulus measures. Industrial production rose 5.5% in September, up from 5.2% in August, while retail sales only increased 1.1%, up from 0.4%. Duncan Wrigley, the chief China economist at Pantheon Macroeconomics, said Beijing’s policymakers were likely to conclude that their efforts to stabilise headline growth in the third quarter were successful. “Headline industrial production rose in September partly as coalmines resumed operations after safety inspections prompted by a major accident. Manufacturing output growth remained robust at 6.0% year on year in September, buoyed up by stronger export demand for electronics, AI-related equipment and autos,” Wrigley said. “Hi-tech manufacturing output continues to outperform traditional sectors, as China climbs the value-added ladder,” Wrigley added. However, fixed-asset investment fell 7.2% over the first nine months, property investment tumbled by 20.6%, and infrastructure spending remained weak. Data last week showed that China’s exports surged by more than a third in September, lifted by a rise in shipments of electronics related to AI. “This pickup in GDP growth mainly reflects ongoing export strength on the global AI/tech boom, more than offsetting drags from the Iran conflict and ongoing weakness in domestic demand,” said analysts at ABN Amro.

China’s economy grows faster than forecast after AI boom boosts exports
Europe
BBC Business

'I'm fed up of swiping': Why singles now want to meet IRL

Checking in at a dating event in a bar in Guildford, Olivia Miller-Davis is understandably apprehensive. Even bringing a friend with her doesn't remove the awkwardness at the start of the night. "It's always nerve-wracking when you're meeting new people," the 28-year-old admits before downloading an app that will match her to other daters based on their star signs. This is speed dating 2026-style and Olivia, like many people we speak to, is here because she's fed up of "endlessly swiping" or as some describe it "app fatigue". She says she hates judging people with "really limited information and just a couple of pictures" because she doesn't feel she can "really fully commit" with so little to go on. According to a recent study from online regulator Ofcom 11% of adults use dating sites but it suggests the time we spend on them is dropping, from a peak of almost four hours a month in 2023, down to three hours last year. Olivia's first match on the night is Edward and he agrees that recent dating trends leave him feeling cold. "I mean, they're designed so that you don't find 'the one', because they want you to come back and use the app forever. They don't want you to get married from the app." The event is organised by Love at First Sign, a dating company that uses an app to match people based on astrological connection, but most people are just using it as an icebreaker. Director of events Lissy Cleminson says the way people date is changing and a big factor is more home working since Covid, which means people do not meet in offices or on the commute. "The little meet-cutes don't happen so much when you're at home with your shirt up top and your pyjamas down bottom," she jokes. As you may expect at a dating event many of the singles told us they were keen for that in-real-life or IRL experience.

'I'm fed up of swiping': Why singles now want to meet IRL
North America
CNBC Finance

KFC to switch to Coca-Cola beverages in U.S. restaurants for the first time in decades

KFC's U.S. restaurants will ditch PepsiCo and switch to Coca-Cola beverages next year, marking the first time in decades that the Yum Brands chain has changed its drink supplier, the restaurant company said Thursday. Some of KFC's international markets serve Coke products, but the chain's U.S. restaurants have stuck with PepsiCo drinks ever since Pepsi bought KFC in 1986. At the time of the acquisition, KFC was Coke's second-largest fountain account, trailing only McDonald's. Pepsi later spun off KFC, along with sister chains Pizza Hut and Taco Bell — but even as the combined Yum Brands, the company stayed loyal to its previous owner. Without Pepsi, Taco Bell would not serve its iconic Mountain Dew Baja Blast. The change comes as KFC aims to win back U.S. diners, who have ditched the fried chicken chain for rivals such as Chick-fil-A or Popeyes. "This decision is a critical step in the Kentucky Fried Comeback," KFC U.S. President Catherine Tan-Gillespie wrote in a memo to franchisees and employees obtained by CNBC. "A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us." For many fast-food chains, beverages have become a critical way to attract consumers. A number of restaurants, including McDonald's and Taco Bell, have broadened their drink offerings with options such as refreshers or "dirty soda." For its part, KFC recently unveiled new drinks, including iced coffees and shakes, at Open House, its innovation restaurant in McKinney, Texas. Coke told CNBC earlier this year that the company has helped many of its restaurant partners create new drinks. KFC expects to be pouring Coke beverages in all of its U.S. restaurants by the end of the first quarter of 2027, Tan-Gillespie said. Tan-Gillespie also said that Pepsi remains an important partner for KFC's parent company and the chain's international markets. For decades, Coke and Pepsi have tussled over important restaurant partners, which represent both a sales opportunity and the chance to grow the visibility of their beverage brands. It is unusual for large restaurant chains to switch beverage providers, but not unprecedented. In 2024, Pepsi poached Subway, the largest U.S. restaurant chain by number of locations, from Coke. Besides KFC, Coke has wooed away a number of notable Pepsi customers in recent years, including Culver's, Arby's and Panda Express. 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.

KFC to switch to Coca-Cola beverages in U.S. restaurants for the first time in decades
North America
CNBC Finance

Porsche reveals Mission S concept car that previews new design identity

Porsche on Thursday revealed a concept car called Mission S that signals a new design direction and flagship model for the famed German sports carmaker. The debut of the sleek midengine vehicle is part of a turnaround plan revealed last week by the Volkswagen-controlled brand that includes efforts to boost profits through higher-end products and lower vehicle sales. Porsche described Mission S as "a first glimpse of the brand's evolved design identity" that also represents a "super sports car platform" that will be positioned above its iconic 911 sports car. The vehicle's design is recognizably Porsche but with more aggressive styling compared with its current models, including new hood vents and a roof scoop. Its rear features more differentiated flair in which the vehicle's spoiler flows into its rear panels. "A Porsche must be recognisable as a Porsche at first glance," Porsche Chairman Michael Leiters said in a release. "The Mission S provides a glimpse of the ideas and design features that will shape Porsche in the coming years." Automakers routinely use concept vehicles to gauge customer interest, showcase future technologies and signal the direction of a vehicle or brand. The company did not release expected pricing or performance specifications for such future models. Starting prices for its current 911 models range from roughly $135,500 for an entry-level Carrera to more than $203,000 for a Carrera 4 GTS convertible. During Porsche's capital markets day on Oct. 7, the company outlined its "Sportwagenschmiede '35" turnaround plan, which focuses on emphasizing high-end sports cars and luxury SUVs to get the carmaker back on track. Porsche's operating margin last year was only 1.1%, compared with 14.1% in 2024, as the company deals with increased costs, U.S. tariffs and declining sales in China. The turnaround plan includes a long-term target for a group ‌operating margin of 15% and a midterm breakeven point of 200,000 units or below annually. That compares with sales of 279,449 in 2025. 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.

Porsche reveals Mission S concept car that previews new design identity