Latest Business News
Tesla Boosts Spending to $25 Billion on AI and Robotics
Tesla plans to invest up to $25 billion this year in AI and robotics as part of Elon Musk's vision to transform the company, leading to shares falling today. Analysts note lack of clarity in capacity plans amid steep costs.
This aggressive capex aims to redefine EV competition globally.
Lufthansa Cuts 20,000 Summer Flights Due to Fuel Price Surge
Lufthansa will slash 20,000 European short-haul flights this summer as jet fuel prices have doubled since the US-Israel war with Iran disrupted production. Other airlines like KLM, France, and Delta are also reducing flights or hiking tickets.
Soaring costs make many routes unprofitable.
UK Government Borrowing Falls by £20 Billion in Year to March
UK borrowing dropped to £132 billion for the year to March, nearly £20 billion below prior levels, per Office for National Statistics. This was slightly under the £132.7 billion forecast by the Office for Budget Responsibility.
The figure reflects the gap between spending and tax income.
L'Oreal Shares Soar on Strong Q1 Sales
L'Oreal reported robust first-quarter sales boosted by popular Kérastase shampoos and La Roche-Posay skin creams. The company faces higher logistics and materials costs from elevated oil prices.
Shares surged following the earnings release.
Rishi Sunak Warns AI is Flattening Youth Jobs Market
Former UK PM Rishi Sunak stated AI is reducing entry-level jobs for young people, urging governments to scrap National Insurance to boost hiring. As an AI enthusiast and advisor to Anthropic and Microsoft, he noted executives confirming slowed youth recruitment.
Graduates' concerns about job prospects are justified.
JD Sports Chairman Andy Higginson Steps Down Unexpectedly
JD Sports chairman Andy Higginson is stepping down after nearly four years amid the company's turnaround efforts. Darren Shapland will serve as interim non-executive chair post-AGM in July.
Shares dropped up to 4% on the news.
Brent Crude Surges Above $100 on Strait of Hormuz Tensions
Brent crude rose above $100 a barrel amid mounting tensions around the Strait of Hormuz and awaiting Iran's peace deal proposal. Higher oil prices are impacting airlines and companies like L'Oreal with increased costs.
This exacerbates global inflation risks.
US Equity Futures Fall After S&P 500 Record High
US equity futures declined after the S&P 500 reached a fresh record, with markets showing fragility amid Iran war concerns. Marvin Loh of State Street highlighted economic vulnerabilities.
Tech earnings mixed with chips strong but software lagging.
Stocks Rise on Truce Extension Despite Inflation Risks
Global stocks climbed on a truce extension, though rising inflation crisis risks from conflicts persist. Investors unwound hedges, pushing capital into riskier assets.
This follows Tesla beating estimates amid broader market moves.
Airlines Worldwide Raise Prices or Cut Flights on Fuel Costs
Beyond Lufthansa, carriers like KLM, Air France, and Delta are trimming flights or passing on doubled jet fuel costs to customers. The US-Israel-Iran conflict has slowed Middle East production and transport.
Fuel surge hits profitability across the sector.
Tech Earnings Mixed: Chips Shine, Software Struggles
Tech sector reports show strength in chips but weakness in software amid broader market shifts. Tesla's capex news overshadowed its earnings beat.
Investors react to AI investments and global tensions.