Business

Aston Martin has reported a dramatic escalation in losses as Donald Trump’s new tariffs on UK car imports and weakening demand from China batter the luxury carmaker’s finances.

The company posted a £112 million pre-tax loss in the three months to September, compared with just £12 million during the same period last year — an increase of more than 800 per cent. Revenue plunged 27 per cent to £285.2 million, reflecting what the company described as “extremely subdued” trading conditions in key export markets.

Shares in the FTSE-listed automaker fell nearly 6 per cent on Wednesday as investors reacted to the latest in a series of profit warnings from the iconic British brand.

The company blamed the deepening impact of US import tariffs, introduced by President Trump earlier this year, for much of the financial pain. The White House imposed 10 per cent duties on UK-made vehicles, a move that has particularly hurt Aston Martin, which relies heavily on the US as a core luxury market.

The fallout from the US–China trade dispute has also weighed on global automotive demand. “This year has been marked by significant macroeconomic headwinds,” said Adrian Hallmark, Aston Martin’s recently appointed chief executive and former Bentley boss. “The sustained impact of US tariffs and weak demand in China have materially affected our performance.”

Rival manufacturers have issued similar warnings. Mercedes-Benz this week reported a 31 per cent decline in profits, blaming the “market environment in China” and ongoing “tariff policies” in the US.

The results are the latest setback for Aston Martin, which has faced repeated delays in launching new models as it battles to stabilise cashflow. Earlier this month, the company postponed deliveries of its Valhalla supercar, citing “production readiness adjustments.”

Adding to its difficulties, Aston Martin has warned of potential supply chain disruption linked to the major cyber attack on Jaguar Land Rover (JLR) in late August. The hack forced JLR to halt production for five weeks, creating knock-on effects for shared suppliers across the UK automotive sector.

Aston Martin said the cyber incident had led to “increased potential for supply chain pressures” and noted that UK car production overall had fallen to a 73-year low last month, according to the Society of Motor Manufacturers and Traders (SMMT).

Executive chairman Lawrence Stroll, who led the 2020 rescue of the 111-year-old carmaker, said this year had brought “several unexpected challenges” but insisted the company remained focused on cost discipline and long-term growth.

Capital expenditure has been cut to £254 million so far this year, down from £300 million in 2024, and is now forecast to reach £350 million by year-end — a significant reduction from the £400 million projected earlier in the year.

Aston Martin also confirmed it would trim its five-year investment plan from £2 billion to £1.7 billion, and continues to reduce borrowing costs, with financing charges falling to £65 million in 2025 from £77 million a year earlier.

Despite the turbulence, Stroll struck a defiant tone: “My confidence in the long-term prospects for this iconic British brand and my commitment to the company remain unwavering,” he said.

The steep losses underscore how vulnerable Britain’s prestige carmakers remain to global trade tensions and shifting demand patterns. Analysts said that while Aston Martin’s brand remains one of the strongest in the luxury automotive space, its balance sheet remains highly leveraged and exposed to geopolitical risk.

The company continues to invest in hybrid and electric vehicle development — essential to meeting global emissions regulations and long-term competitiveness — but analysts warn that recurring shocks to supply chains and global trade could delay its recovery.

Aston Martin’s next major test will come in early 2026, when it is due to launch its first fully electric sports model, seen as central to its turnaround strategy and future relevance in a fast-electrifying market.

Read more:
Aston Martin losses surge 800% as Trump tariffs and China slowdown hit luxury carmaker

Former chancellor Jeremy Hunt has hit back at suggestions that the Office for Budget Responsibility (OBR) and past Tory tax cuts are to blame for Labour’s worsening fiscal position, calling the claim “ridiculous” and accusing Chancellor Rachel Reeves of presiding over a self-inflicted economic squeeze.

The rebuke comes amid reports of mounting anger inside Downing Street after the OBR signalled it would downgrade productivity forecasts ahead of next month’s Budget — creating an estimated £27 billion shortfall and forcing Ms Reeves to consider a mix of tax rises or spending cuts to plug the gap.

The downgrade is expected to knock 0.3 percentage points off productivity growth assumptions, deepening the Chancellor’s headache as she prepares her first full Budget under strict fiscal rules.

Ms Reeves and Sir Keir Starmer are said to believe the downgrade reflects the long-term impact of Conservative policy failures dating back to the post-financial crisis era and Brexit. But Mr Hunt said the current crisis was one of Labour’s own making.

“It is ridiculous to blame the OBR and tax cuts that grew the economy when Labour’s tax rises actually shrunk it,” he told reporters. “Rather than trying to find someone to blame, they need to start getting a few decisions right.”

As chancellor, Mr Hunt cut National Insurance contributions twice ahead of last year’s election at a cost of £20 billion. Ms Reeves has since imposed a £25 billion increase in employers’ National Insurance, part of a broader fiscal tightening that economists say has pushed the UK tax burden to a record high.

The Chancellor has been left with only £9.9 billion of headroom against her fiscal targets — the smallest margin in more than a decade, and well below the £20–30 billion cushions maintained by previous governments.

Economists now estimate that Ms Reeves faces a £35 billion black hole in her upcoming Budget, limiting her ability to deliver on spending commitments without further tax hikes.

She insisted the OBR’s projections reflected “past productivity numbers” rather than any deterioration under Labour, noting that UK productivity had been “very poor” since 2008 and had worsened after Brexit.

However, Helen Miller, deputy director of the Institute for Fiscal Studies (IFS), said the government’s predicament was largely self-inflicted.

“Having the very, very small headroom Rachel Reeves has given herself does lead to instability, because completely run-of-the-mill forecast changes can knock you off course,” Miller told peers on the House of Lords Economic Affairs Committee.

“Speculation and uncertainty around upcoming tax increases are directly damaging, because firms don’t invest when they’re not sure what’s going to happen.”

She added that by sticking with the tight fiscal rules introduced by Mr Hunt, Ms Reeves had left herself with “no margin for error.”

The Confederation of British Industry (CBI) has also warned that uncertainty surrounding the Budget is weighing heavily on corporate confidence.

“Uncertainty around the upcoming Budget is weighing heavily on sentiment, with many firms keeping key decisions on hold until more clarity is forthcoming,” said Alpesh Paleja, the CBI’s deputy chief economist.

“Cost pressures remain strong, with last year’s tax rises adding to the drag. The private sector cannot bear the brunt of further tax increases for a second Budget in a row.”

Business taxes are already at their highest level in 25 years, and several industry groups have urged the Treasury to prioritise stability over new fiscal tightening.

Former chancellor Lord Lamont echoed those concerns, warning that speculation over “headroom” and tax changes had become “terribly, terribly destabilising.”

“The swings that you get in public finance are absolutely ginormous,” he told peers. “We seem to have ended up with a situation that is very unstable.”

The Treasury declined to comment ahead of the OBR’s full forecast, due to be published on November 26, but insisted that fiscal decisions would be taken “in the national interest.”

With borrowing costs still elevated and business sentiment fragile, next month’s Budget represents a defining test of Rachel Reeves’ credibility as Britain’s first female Chancellor.

The combination of a weak productivity outlook, constrained fiscal headroom and tax fatigue across both households and firms has left the government with little room to manoeuvre.

While Ms Reeves insists her approach will deliver “stability after chaos”, critics argue the policy mix risks stifling growth at a time when business investment remains anaemic and inflationary pressures persist.

As one City economist put it this week: “The problem isn’t the OBR. It’s arithmetic.”

Read more:
‘Ridiculous’ to blame OBR for Budget mess, says Hunt

OpenAI, the maker of ChatGPT, has completed a sweeping corporate overhaul that values the company at $500 billion, paving the way for it to become a fully fledged for-profit enterprise and one of the world’s most valuable technology companies.

The Silicon Valley group, founded as a non-profit research lab in 2015, has agreed a new structure with its long-time partner and investor Microsoft, allowing it to raise fresh capital while maintaining a non-profit parent body. Under the new arrangement, the OpenAI Foundation will hold equity in the for-profit arm, while Microsoft will retain a 27 per cent stake, now worth about $135 billion.

Announced on Tuesday, the restructuring represents one of the most dramatic transformations in the short history of artificial intelligence — a shift from idealistic research collective to commercial powerhouse. It also cements Microsoft’s central role in the global AI race, extending its access to OpenAI’s technology until 2032, even in the event that OpenAI achieves artificial general intelligence (AGI) — the point at which a system can match the cognitive abilities of a highly educated human.

The deal further binds OpenAI to Microsoft’s vast Azure cloud computing network, with OpenAI agreeing to purchase $250 billion worth of Azure services over the next several years. However, Microsoft will lose its previous right of first refusal on OpenAI’s future cloud contracts — a sign that the AI company is seeking greater flexibility as it expands.

Microsoft shares rose 2 per cent to $542.07 following the announcement, giving the company a $4.046 trillion market value and cementing its position alongside Nvidia in the exclusive $4 trillion club. Apple, valued at $3.997 trillion, is close behind.

“The scale of the Azure commitment underscores Microsoft’s continued dominance in AI infrastructure,” said Raimo Lenschow, analyst at Barclays. “The deal also sets the stage for long-term collaboration between the two firms, in our view.”

Since launching ChatGPT in 2022, OpenAI has transformed from a niche research project into a global phenomenon, with more than 800 million weekly active users and partnerships spanning finance, healthcare, education and media.

Its chatbot — capable of generating human-like text and code — sparked the current AI boom, driving massive investment across Silicon Valley and on Wall Street. But while its influence has soared, OpenAI’s financial model has remained a challenge.

The company continues to operate at a loss as it prioritises rapid model development and global deployment over near-term profitability. Analysts at HSBC forecast losses of $23.5 billion in 2025, rising to $60 billion by 2027, underscoring the cost of maintaining its cutting-edge research.

Under the new structure, OpenAI can pursue large-scale funding more freely and could eventually prepare for a public listing — a move insiders describe as “inevitable” once its governance model stabilises.

In a statement, Bret Taylor, OpenAI’s chairman, said: “OpenAI has completed its recapitalisation, simplifying its corporate structure. The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.”

Gil Luria, head of technology research at DA Davidson, said the deal resolves a long-standing tension between OpenAI’s research mission and commercial ambitions. “This restructuring settles the ownership rights of its technology vis-à-vis Microsoft,” he said. “It provides clarity on OpenAI’s investment path, thus facilitating future fundraising.”

The shake-up comes amid an AI investment frenzy that has redefined global market dynamics. Tech giants Microsoft, Nvidia and Apple have each surpassed the $4 trillion mark in recent months, buoyed by optimism about AI’s transformative potential.

The momentum is also spilling into other sectors. PayPal announced on Tuesday that it had struck a partnership with OpenAI allowing ChatGPT users to buy products directly through its payment platform. The news lifted PayPal’s shares nearly 4 per cent to $73.02, and the company also declared its first-ever dividend — a sign of renewed investor confidence in the digital economy.

For OpenAI, however, the transformation marks a new era. The company that once promised to keep artificial intelligence “safe and accessible for all” is now one of the world’s most valuable private enterprises — a position that brings both opportunity and scrutiny.

As AI becomes the defining industry of the 21st century, the new OpenAI–Microsoft arrangement cements their dominance at the centre of it. What began as a research project in a San Francisco loft is now reshaping global markets, geopolitics, and the future of work itself.

Read more:
ChatGPT firm hits $500bn valuation in landmark profit shake-up

Three of Ireland’s best-known businessmen — JP McManus, John Magnier and Dermot Desmond — have sold Barchester Healthcare, the UK’s largest private care home operator, to US real estate giant Welltower in a landmark £5.2 billion deal.

The transaction represents one of the largest healthcare acquisitions in British history and underscores the growing appeal of the UK’s social care market to overseas investors. Welltower, the world’s biggest real estate investment trust (REIT) specialising in healthcare assets, confirmed it will retain Barchester’s existing management team but that the three billionaire shareholders will exit the business entirely.

Barchester operates 223 nursing homes and hospitals across the UK, providing 14,500 beds and employing over 16,000 staff. Founded in 1992 by Mike Parsons, the company has grown into one of Britain’s largest private care operators, with a strong footprint in London and the South East.

McManus, 74, and Magnier, 77 – renowned for their success in global horse racing – along with 75-year-old Celtic FC shareholder Desmond, have held their stake in Barchester for more than two decades through their Jersey-based investment vehicle, Grove Limited.

The trio, who also co-own the Sandy Lane Hotel in Barbados, nearly sold the group in 2019 to Australian infrastructure investor Macquarie for £2.5 billion, but that deal collapsed amid Brexit uncertainty.

Their long-awaited exit now comes at a far higher valuation — more than double the 2019 offer — as rising care fees and growing demand from an ageing population fuel investor appetite for healthcare real estate.

Confirming the deal, Dr Pete Calveley, Barchester’s chief executive, said the sale would strengthen the company’s ability to expand and innovate.

“Through our strategic partnership with Welltower and their significant and ongoing investment into their operating platform, we expect to continue to meaningfully enhance the lives of thousands of older adults by delivering not only exceptional care but also fostering environments rich in social and cognitive engagement,” he said.

Barchester’s most recent results underscore its robust performance. In the year to December 2023, revenues rose 14 per cent to £871 million, while pre-tax profits climbed 23 per cent to £39 million.

Chairman John Coleman, former head of House of Fraser, has overseen the group’s steady expansion and its reputation for operational stability — a key factor in attracting Welltower’s bid.

The acquisition cements Welltower’s status as the largest international investor in Britain’s elderly care sector. Earlier this month, the US firm completed a separate £1.2 billion purchase of care homes from HC-One, bringing its total UK investment to £6.4 billion.

Welltower chief executive Shankh Mitra said the company plans to grow that figure further: “We are excited to expand our presence in the UK and continue to partner with the highest quality operators. Our commitment is long-term — we expect to increase our UK investment to $12 billion over the next five to ten years.”

The deal follows a record £3.1 billion in UK care home transactions last year, driven largely by US institutional investors. Analysts point to the sector’s resilience and strong rental growth, which contrast with weaker demand in office and retail property markets.

According to Cushman & Wakefield, average weekly care home fees rose 8.5 per cent in 2024, providing stable income potential for investors amid broader economic uncertainty.

Lord Stockwood, minister for investment, welcomed the transaction, saying: “High-quality care for our ageing population is one of the most important challenges the government faces. I’m glad to see a long-term and highly respected investor like Welltower continuing to bring their expertise, commitment and technology to the UK.”

Welltower’s expansion marks a pivotal shift in ownership of the UK’s elderly care infrastructure from domestic operators to global capital. For investors, the attraction lies in predictable rental yields, demographic demand and the sector’s essential-service status.

For Barchester, now entering a new chapter under US ownership, the focus will be on scaling its operations and investing in technology-led care models. The deal also signals the accelerating financialisation of Britain’s care industry — where long-term returns, not just compassion, are increasingly shaping who owns the future of care.

Read more:
Irish racing tycoons sell Barchester Healthcare to US giant Welltower for £5.2bn

Entrepreneurs with ambitions to build the next big dating platform are being offered a fast-track route from concept to creation, thanks to a new incubator programme launched by dating industry pioneer Nicky Wake.

The initiative promises to help founders transform their dating app ideas into live products in as little as three months, providing an end-to-end framework covering audience strategy, app development, funding, marketing and launch.

Wake, who has more than two decades of experience as an entrepreneur and is recognised as one of the UK’s most prominent voices in the dating and events industries, describes the incubator as a “clear, cost-effective pathway for founders to enter a fast-growing market with expert guidance and proven technology.”

Under the model, entrepreneurs retain full ownership of their brand while receiving hands-on consultancy, technical expertise and ongoing post-launch support.

The launch follows Wake’s acquisition of M14 Industries, a white-label dating platform that has powered numerous specialist dating communities. Wake has used the platform since 2022 to run her own ventures — including Soberlove, Chapter 2 Dating, and Widows Fire — all of which target specific communities and life stages.

Now, she is opening up access to the same platform and expertise for a new generation of founders.

“This is a simple, cost-effective solution for budding entrepreneurs or community leaders who want to monetise their audiences,” Wake said. “Instead of starting from scratch with a developer, they gain access to a tried-and-tested model, plus the benefit of my lived experience in building three successful dating tech start-ups.”

Wake emphasised that the incubator differs from generic tech accelerators because it is industry-specific — designed for founders entering the competitive and rapidly evolving dating sector.

“I believe the future of dating isn’t in trying to compete with giants like Bumble or Hinge,” she added. “It’s in creating niche apps that serve defined communities — spaces where people can connect based on shared experiences, lifestyles and values.”

The dating app industry, estimated to be worth more than £6.5 billion globally, has seen a marked shift towards niche and community-driven platforms. Apps targeting specific audiences — from sober singles and professionals to hobbyists and over-50s — have shown faster growth and stronger retention than generalist platforms, according to industry analysts.

Wake’s incubator aims to harness that momentum by lowering barriers to entry for entrepreneurs who may have an engaged audience or a strong idea but lack the technical infrastructure or funding expertise to launch.

“Launching a dating app shouldn’t be out of reach,” Wake said. “This incubator makes it achievable, accessible and genuinely exciting — opening the door to a new wave of niche dating apps that help people connect in more meaningful ways.”

A serial entrepreneur, Wake has more than 20 years’ experience in media, live events and online communities. She is the founder of multiple dating and networking platforms and is widely recognised as a leading figure in the UK dating tech space. Her ventures have received national media attention for promoting inclusivity, community and emotional wellbeing in modern dating.

With the new incubator, Wake hopes to “democratise” access to the dating app industry — helping creators, community leaders and digital entrepreneurs turn their ideas into commercially viable platforms that serve people’s real-world needs.

Read more:
New incubator offers fast-track for entrepreneurs to launch dating apps

Steven Bartlett, the entrepreneur and Diary of a CEO host, has revealed his business empire has been valued at $425 million (£320 million) following a major eight-figure investment — a deal that cements his position as one of the richest entrepreneurs ever to appear on Dragons’ Den.

The 33-year-old investor, who joined the BBC show in 2022, announced the new valuation through a press statement this week. The deal sees venture capital firms Slow Ventures and Apeiron Investment acquire a minority stake in his umbrella company Steven.com, which now houses Bartlett’s rapidly expanding portfolio, including Flight Story, Flight Cast, Flight Fund, and online shopping platform Stan Store.

Bartlett said the capital injection will help him “build the Disney of the creator economy”, positioning his ventures at the centre of the multi-billion-dollar influencer and creator marketplace.

“For the last century, companies like Disney demonstrated the power of intellectual property,” Bartlett said. “In today’s world, creators are the new franchises — and with my team, we’re building the modern version of that model.”

Despite the investment, Bartlett said he still retains more than 90% ownership of Steven.com.

The valuation marks another major milestone for Bartlett, who has evolved from startup founder to multimedia mogul. His media and technology portfolio now spans content production, venture investment, and e-commerce infrastructure for digital creators.

Steven.com integrates all of his ventures, including:
• Flight Story – a marketing and communications agency powering The Diary of a CEO and Davina McCall’s Begin Again podcast.
• Flight Cast – a creative production division.
• Flight Fund – Bartlett’s venture capital arm investing in tech and consumer brands.
• Stan Store – an e-commerce platform competing with Shopify and Linktree.

Bartlett claims the investment is the largest ever made in a European company specialising in social media creators.

Born in Botswana to a Nigerian mother and English father, Bartlett grew up in Plymouth and dropped out of university at 18 before launching his first business.

He co-founded Social Chain in 2014 with Dominic McGregor, building it into one of Europe’s fastest-growing social media agencies. However, the company attracted criticism for plagiarising social media content and overstating valuations.

In his biography, Bartlett claimed to have taken Social Chain public at a valuation of $600 million, though the firm’s 2019 merger with German retailer Lumaland placed its true value closer to $186 million. The company later reached $620 million after Bartlett’s exit and was eventually sold for just £7.7 million.

Bartlett left Social Chain in 2020, later establishing Flight Story and the Diary of a CEO podcast — both now key drivers of his wealth and influence.

While Bartlett’s business success has been widely celebrated, his ventures have not been without controversy.

A BBC investigation in late 2024 found that his Diary of a CEO podcast had featured guests promoting unverified health claims, including that a keto diet could treat cancer and COVID-19 was “biologically engineered”, without challenge from Bartlett. Critics accused him of giving a platform to harmful misinformation.

In 2022, Bartlett also faced backlash for investing in Ear Seeds — a product pitched on Dragons’ Den that claimed to help cure ME/chronic fatigue syndrome. Following complaints, the BBC added a disclaimer clarifying that the treatment was not medically verified.

He was later admonished by the Advertising Standards Authority (ASA) in 2024 for failing to disclose his financial interests while promoting Huel and Zoe on social media.

Despite the controversies, Bartlett’s influence continues to grow. His Diary of a CEO podcast — featuring guests including Richard Branson, Simon Cowell, and Boris Johnson — won Best International Podcast at the iHeart Radio Podcast Awards earlier this year.

With his latest valuation, Bartlett joins the upper echelon of UK entrepreneurs under 35. Industry observers say his empire demonstrates both the economic power and volatility of the creator economy, where brand, authenticity, and influence are the new assets of value.

“Steven Bartlett is the embodiment of the modern business model,” said Dr. Harriet Mason, professor of media entrepreneurship at the University of Leeds. “He’s part content creator, part venture capitalist — a hybrid we’ll see far more of in the next decade.”

For Bartlett, however, the focus remains clear: scaling Steven.com into a global creative media ecosystem.

“Creators are the studios of the future,” he said. “Our goal is to empower them — and build something enduring around their stories.”

Read more:
Steven Bartlett’s fortune soars as new $425m valuation cements his status among richest Dragons

The UK has sealed an £8 billion defence export agreement to supply 20 Eurofighter Typhoon jets to Turkey, marking Britain’s biggest fighter jet sale in almost two decades and a major boost for the nation’s defence manufacturing sector.

Prime Minister Sir Keir Starmer, who signed the agreement in Ankara on Monday alongside President Recep Tayyip Erdoğan, hailed it as “a win for British workers, a win for our defence industry, and a win for NATO security.”

The contract — finalised after months of high-level diplomacy — is expected to support 8,000 jobs across the UK, securing production at BAE Systems plants in Warton and Samlesbury, Lancashire, as well as roles at Rolls-Royce in Bristol and suppliers across Scotland and the South West.

“This is a landmark moment,” Sir Keir said. “I’m proud that British Typhoons will form a vital part of the Turkish Air Force for many years to come, defending NATO’s south-eastern flank for the good of all of us.”

The Eurofighter Typhoon, jointly developed by the UK, Germany, Italy and Spain, remains one of the world’s most advanced multi-role combat aircraft. Roughly 37% of each aircraft is built in Britain, with the final assembly carried out by BAE Systems.

The government said the order — the first new Typhoon export since 2017 — would “keep British production lines running long into the future” and deliver billions in value to the wider economy.

John Healey, Defence Secretary, called it “the biggest jets export deal in a generation,” adding: “It will pump billions of pounds into our economy and sustain high-skilled engineering jobs for years to come.”

BAE Systems CEO Charles Woodburn welcomed the announcement, describing it as “the start of a new chapter in our longstanding relationship with an important NATO ally.”

He added: “Investment in defence doesn’t just strengthen security — it fuels significant economic growth, innovation and supply chain resilience across the UK.”

The deal comes at a time when NATO is seeking to reinforce its southern and eastern defences amid continued instability in the Middle East and tensions with Russia.

For Turkey, the acquisition represents a significant upgrade to its air force capabilities after the country was ejected from the F-35 programme in 2019 due to a dispute over its purchase of Russian missile systems.

President Erdoğan described the deal as “a new symbol of the strategic relations between Turkey and Britain,” signalling closer bilateral defence cooperation and alignment on NATO priorities.

The partnership also strengthens the UK’s position as a key defence supplier to Ankara, with both nations collaborating on energy, trade, and regional security issues.

The first jets are expected to be delivered in 2030, with the agreement including an option for additional aircraft. The order follows a preliminary agreement signed in July for up to 40 Typhoons, with the first tranche now formally confirmed.

The Typhoons will be produced in partnership with the Eurofighter consortium, requiring approval from all four member nations — the UK, Germany, Italy, and Spain — before delivery.

The aircraft will be equipped with next-generation radar and avionics developed by Leonardo UK and MBDA, the missile manufacturer behind the Meteor and Brimstone systems.

The UK aerospace and defence industry, worth over £24 billion annually, supports more than 130,000 jobs nationwide. The Typhoon programme alone sustains around 20,000 highly skilled roles, including 9,000 within BAE Systems.

The government said the deal underscores its commitment to using defence exports as a lever for industrial growth, supporting the “Buy British, Build British” agenda and enhancing the UK’s reputation as a global defence exporter.

The £8bn package will directly support:
• 6,000 jobs in Lancashire at BAE Systems’ Warton and Samlesbury plants
• 1,100 jobs in the South West, including at Rolls-Royce Bristol
• 800 jobs across Scotland in the supply chain

The order will also bolster smaller subcontractors in the UK’s aerospace sector, from precision engineering firms to electronics manufacturers.

The agreement with Turkey follows renewed efforts by the UK to expand its defence export footprint. It builds on previous Typhoon deals with Qatar, Saudi Arabia and Kuwait, and complements partnerships on the Global Combat Air Programme (GCAP) with Japan and Italy.

Defence analysts say the Turkish order could help maintain Typhoon production through the next decade while bridging the transition to the sixth-generation Tempest fighter jet, due to enter service in the 2030s.

Dr. Alex Walmsley, defence analyst at RUSI, said: “This deal is hugely significant for sustaining Britain’s aerospace industrial base and export credibility. It also signals a deepening of UK–Turkey ties at a strategically important moment for NATO.”

The Ankara signing marks Sir Keir Starmer’s first official visit to Turkey as prime minister and a major early success in his foreign policy agenda.

Officials said the deal demonstrates “Global Britain in action” — marrying industrial strength with international diplomacy to project both economic and strategic influence.

As the UK prepares to deliver the aircraft by the end of the decade, the Typhoon deal stands as one of the most visible symbols of Britain’s renewed push for export-led industrial growth and defence collaboration.

Read more:
UK secures £8bn Typhoon fighter jet deal with Turkey in major export breakthrough

BT Group is reportedly weighing plans to launch a new low-cost mobile brand as part of a potential strategy to compete with a wave of new market entrants — including fintech heavyweights Revolut and Monzo, both preparing to debut mobile services.

According to the Financial Times, the UK’s largest telecoms company is assessing whether to develop an in-house budget brand or acquire an existing virtual network operator (MVNO) as it explores opportunities to re-enter the value end of the mobile market.

Such a move would represent a strategic shift for BT, which currently offers mobile services solely through its premium EE brand, and has focused its Plusnet subsidiary on broadband since a restructuring last year.

The push comes as virtual network operators — companies that lease capacity from established networks such as EE, Vodafone, and Three — expand rapidly, accounting for 16.5% of the UK mobile market in 2024, according to Ofcom. Analysts expect that share to rise as competition intensifies between low-cost and digital-first providers.

Fintech companies are among the latest entrants. Revolut and Monzo, which boast a combined user base of more than 13 million UK customers, are preparing to launch mobile plans as part of broader efforts to diversify revenue streams and strengthen customer loyalty through bundled financial and telecoms services.

Buy-now-pay-later provider Klarna is also moving into mobile, alongside Fern Trading, part of the Octopus Group investment empire, which is building out telecoms assets across the UK.

“Fintechs are blurring the lines between banking, payments, and connectivity,” said James Barford, head of telecoms research at Enders Analysis. “They already control the digital interface with consumers — moving into mobile services is a natural extension of that ecosystem.”

BT’s exploration of the low-cost segment is being driven by Chief Executive Allison Kirkby, who took the helm earlier this year. Kirkby is understood to be seeking ways to strengthen customer acquisition in a saturated market and broaden BT’s appeal beyond its high-end EE brand.

Industry sources told the FT the plan has the backing of Sunil Bharti Mittal, the Indian billionaire and founder of Bharti Enterprises, which became BT’s largest shareholder in 2024 after acquiring the stake held by French-Israeli telecoms magnate Patrick Drahi.

The potential move aligns with Mittal’s strategic focus on affordability and market scale — principles that have underpinned his success with Airtel, one of India’s largest mobile networks.

The telecoms group is also reviewing the positioning of its BT consumer brand, which retains strong recognition among older customers. Executives are said to be considering reviving BT-branded broadband and mobile bundles aimed at more traditional users less familiar with the company’s newer brands, EE and Plusnet.

BT’s own research reportedly found that brand familiarity remains a key factor in attracting and retaining older customers, particularly as rivals emphasise simplicity and value.

“EE has become a high-performance brand for premium users,” said Sarah Hall, telecoms consultant at Pegasus Strategy. “But the mass market is where volume growth lies — and that’s where fintech challengers are attacking first.”

In response to reports, BT issued a brief statement: “We regularly review our offerings across all our brands to ensure our customers have access to the best products and services on the best network. At present, we have no plans to change our mobile offering.”

However, analysts say BT’s silence may reflect early-stage deliberations rather than a dismissal of the idea. The group faces mounting pressure to defend its consumer market share, as value-driven entrants such as Giffgaff, Smarty, and Voxi continue to lure younger users with flexible, app-based contracts and transparent pricing.

The UK mobile market is undergoing one of its most significant shake-ups in years, driven by digital disruption, consolidation, and rising costs of network investment.

BT has already faced competitive pressure following the Vodafone–Three merger, while also contending with the challenge of monetising its multi-billion-pound investment in 5G infrastructure.

Meanwhile, fintech companies see telecoms as a lucrative gateway into everyday digital services — allowing them to bundle banking, payments, and connectivity under one app and harness rich data insights to drive growth.

“If Revolut and Monzo succeed in turning mobile services into lifestyle ecosystems, it could redefine customer loyalty in both finance and telecoms,” said Dr. Anna Pickering, senior lecturer in digital economy at King’s College London. “BT and the legacy networks can’t afford to ignore that.”

While BT insists no formal decision has been made, the discussions underscore how rapid convergence between telecoms and fintech is forcing incumbents to innovate or risk losing relevance among younger, mobile-first consumers.

If BT proceeds, a low-cost mobile brand could not only protect its domestic market share but also serve as a strategic counterweight to digital challengers seeking to erode the dominance of Britain’s established networks.

Either way, the battle for the UK’s mobile future is no longer just about connectivity — it’s about who controls the customer relationship in an increasingly digital world.

Read more:
BT weighs move into low-cost mobile market as Revolut and Monzo eye launches

Global stock markets climbed to record highs on Tuesday as investors bet on falling interest rates and renewed optimism over global growth — with Apple reaching a $4 trillion market valuation for the first time.

The FTSE 100 hit an intra-day record of 9,715.22, before easing slightly to trade 0.5% higher at 9,698.4, while all three major U.S. indices — the S&P 500, Nasdaq, and Dow Jones Industrial Average — also opened at all-time highs, rising between 0.3% and 0.7%.

The broad-based rally reflects growing confidence that the U.S. Federal Reserve will cut interest rates when its two-day policy meeting concludes on Wednesday, marking a pivotal moment for markets after nearly two years of tightening monetary policy.

Apple’s shares rose 1% to $269.86, pushing its total market capitalisation just above $4 trillion and cementing its position as the world’s most valuable listed company.

The rally has been fuelled by strong sales of the company’s latest iPhone lineup, combined with investor confidence in its ability to sustain premium margins through its services, wearables and AI-driven ecosystem.

Apple’s surge comes just days before its quarterly earnings report, due Thursday, which investors expect will confirm steady growth in hardware sales and continued expansion in its subscription services division.

“Apple remains the gold standard in consumer technology and profitability,” said Anita Sharma, senior tech analyst at Horizon Partners. “Breaking the $4 trillion mark isn’t just symbolic — it underlines the market’s faith in Apple’s ability to monetise its ecosystem even in a slower global economy.”

Microsoft, Apple’s closest rival by market capitalisation, regained the top spot earlier this week with a $4.06 trillion valuation, buoyed by optimism ahead of its earnings release tomorrow. The company’s investments in AI through OpenAI and its Azure cloud platform continue to drive investor enthusiasm.

The two tech giants have traded places repeatedly this year, reflecting how leadership in the emerging AI and cloud computing race now defines investor sentiment across global markets.

Meanwhile, other major technology names — including Alphabet (Google), Amazon, and Meta Platforms — are also due to report results this week, setting the stage for one of the most consequential earnings seasons for the “Magnificent Seven” tech stocks.

Beyond the technology sector, global equities have been lifted by improving trade relations and expectations of looser monetary policy in the U.S. and Europe.

Recent data suggesting moderating inflation has encouraged investors to rotate back into risk assets, including growth-oriented sectors such as technology, industrials and consumer discretionary stocks.

“The combination of easing inflation, softer bond yields and central bank caution is creating a sweet spot for equities,” said Chris Weston, Head of Research at Pepperstone. “Markets are now pricing in a 25-basis-point rate cut from the Fed — and perhaps two more by year-end.”

In London, the FTSE 100’s climb to 9,715.22 marked a historic high for the index, driven by gains in energy, banking and mining stocks, alongside strong performances from AstraZeneca and HSBC.

Sterling held steady against the dollar at $1.28, helping exporters on the index, while bond yields dipped slightly amid speculation that the Bank of England could follow the Fed’s lead with a rate cut in early 2026.

Analysts said global optimism had filtered through to European markets, with Germany’s DAX and France’s CAC 40 also trading near record levels.

Attention now turns to Federal Reserve Chair Jerome Powell, who will deliver the central bank’s policy statement and outlook on Wednesday. Markets widely expect a first rate cut since 2023, potentially signalling the start of a more accommodative cycle.

U.S. inflation has fallen back toward the 2% target, while growth remains resilient — factors investors see as supportive of equities and risk assets.

However, analysts caution that valuations in tech-heavy indices are “stretched,” with much of the year’s rally resting on continued earnings growth from a narrow band of mega-cap companies.

“We’re at an inflection point,” said David Blanchflower, former Bank of England policymaker. “If central banks can engineer a soft landing, these levels could hold — but any hawkish surprises from the Fed would test market confidence.”

Apple and Microsoft’s record valuations have reignited debate over the concentration of market power among U.S. tech giants. Together, the top five companies — Apple, Microsoft, Alphabet, Amazon and Nvidia — now account for nearly 30% of the S&P 500’s total market value, a level unseen since the dotcom boom.

Still, investors remain undeterred, viewing the dominance of AI-focused technology stocks as a long-term structural trend rather than a speculative bubble.

As Wall Street edges into new territory, one thing is clear: the market’s trillion-dollar titans are once again defining the next phase of the global bull market.

Read more:
Global stock markets surge to record highs as Apple hits $4 trillion valuation

Amazon is cutting around 14,000 corporate jobs as part of a sweeping restructuring designed to streamline operations and integrate artificial intelligence more deeply into the company’s global business.

The reductions, which will primarily affect the company’s corporate and administrative divisions, are aimed at reducing operational layers and enabling faster decision-making as Amazon invests billions in generative AI and automation.

The Seattle-based group, which employs about 1.56 million people worldwide, said the changes were essential to position the company for its next phase of innovation and efficiency.

“This generation of AI is the most transformative technology we’ve seen since the Internet,” the company said in a blog post.
“It’s enabling companies to innovate much faster than ever before. We’re convinced that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

Amazon’s latest job cuts represent roughly 4% of its 350,000-strong corporate workforce, and follow a series of layoffs across the tech sector as companies reorganise to capture the productivity gains promised by generative AI.

Despite the reductions, Amazon said it would continue to hire in strategic growth areas through 2026 — particularly in cloud computing, generative AI, robotics, and logistics technology, where demand remains strong.

The restructuring will see Amazon consolidate overlapping corporate functions and simplify management structures across key business units, including AWS (Amazon Web Services), retail, and Prime Video.

Chief executive Andy Jassy had warned in June that the company’s “next phase of AI adoption” would require “a leaner, faster corporate structure” to stay competitive.

Amazon’s announcement follows similar moves by Google, Meta, Microsoft and other major technology firms, which have cut tens of thousands of jobs over the past 18 months as they reorient their operations around artificial intelligence.

The shift marks a fundamental reallocation of resources — away from traditional administrative roles and toward AI model development, data engineering, and infrastructure scaling.

Analysts said the restructuring reflects a recognition that AI is not only transforming products but also how companies are organised internally.

“Generative AI is forcing large corporates to rethink structure, speed and skill sets,” said Dan Ives, Managing Director at Wedbush Securities. “The next 12 months will see continued consolidation in non-technical roles and increased investment in AI engineering capacity.”

Amazon has been aggressively expanding its artificial intelligence capabilities across its AWS cloud platform, e-commerce operations, and consumer devices.

The company announced plans earlier this year to invest billions of dollars in AI infrastructure, partnerships, and custom silicon chips to power model training and inference workloads on AWS.

It is also developing its own large language models — such as Titan — to compete with rivals OpenAI and Anthropic, while integrating AI features into customer-facing services from Alexa to Amazon Ads.

In September, Amazon confirmed a $4 billion investment in Anthropic, one of the leading AI start-ups, to accelerate the adoption of advanced foundation models across its ecosystem.

For Amazon, the job cuts signal a strategic pivot from scale to speed and specialisation, as the company seeks to maintain agility in an era of rapid technological change.

While the company’s total headcount has stabilised after pandemic-era expansion, Jassy’s leadership has focused on profitability, automation, and disciplined investment, especially in AWS — which generates the bulk of Amazon’s operating income.

Industry observers say the restructuring could help Amazon sharpen its focus amid intensifying competition from Microsoft, Google, and Alibaba in the cloud AI race.

“This is about positioning Amazon for the next decade,” said Shannon Cross, technology analyst at Credit Suisse. “AI is not just an innovation priority — it’s a structural transformation that touches every part of the business.”

The cuts come at a time of renewed debate over the social impact of AI adoption. While Amazon insists it will continue to expand in high-skill areas, the restructuring underscores the broader shift toward automation in white-collar roles traditionally insulated from disruption.

Economists say the move is part of a wider pattern as corporations leverage AI to drive productivity, streamline functions, and offset labour costs — trends likely to reshape global employment patterns in the decade ahead.

For now, Amazon’s message is clear: the company’s future growth will depend less on headcount, and more on how efficiently it deploys artificial intelligence to serve its 300 million customers worldwide.

Read more:
Amazon to cut 14,000 corporate jobs as AI reshapes workforce