Breaking AI & Tech News Analyzed

Budget airline easyJet has issued a profit warning, citing the impact of the Iran conflict on fuel prices and bookings. The airline has seen fuel costs rise by £25m in the last month alone, driven by the escalating tensions in the Middle East.EasyJet expects to report an increased pre-tax loss of £540-£560m for the six months to March, up from £394m in the first half of 2024-25. The carrier typically generates most of its revenue in the second half of the year, which includes the peak summer period.The airline has hedged 70% of its fuel needs for the rest of the financial year to September, but each $100 movement in the spot price of jet fuel per metric tonne adds £40m in costs for its unhedged supply. Currently, the price is about $800 higher than before the conflict started.Chief executive Kenton Jarvis said demand remained strong in the short term, but customers were leaving it later to book due to economic uncertainty. However, he assured that fuel supplies remained normal and that any talk of having to cancel flights was pure speculation.Jarvis added that there was continued positive demand, but easyJet's financial performance had worsened year on year, impacted by the conflict in the Middle East and the competitive environment in some markets. Shares fell 3% in early trading.

Tesco, the UK's largest supermarket chain, has issued a warning that its profits could decline in the upcoming year due to increased uncertainty caused by the conflict in the Middle East. This announcement comes on the heels of the company achieving its highest market share in a decade.In the year ending February 28, Tesco reported a profit increase of 8.5% to £2.4bn, with sales rising by 4.3% to £66.6bn, driven largely by strong growth in the UK. The retailer attributed its success to increased investments in keeping prices low and improving quality and service.Despite these positive results, Tesco has widened its profit guidance for the year ahead to £3bn to £3.3bn, citing the potential implications of the Middle East conflict on UK households and the broader economy. Ken Murphy, Tesco's chief executive, emphasized the company's commitment to keeping prices low and helping consumers navigate cost pressures.In a move to further enhance its pricing strategy, Tesco aims to make £500m in new savings in the year ahead, leveraging artificial intelligence (AI) to optimize price markdowns and finance tools.

In the midst of Israel's ongoing attacks on Lebanon, which have resulted in the displacement of at least one million people, migrant workers are taking initiative to support their communities. Myra Aragon, a Filipino migrant, runs a community center called Tres Marias in a Beirut suburb, providing meals to around 200 people daily, mostly migrant workers.Aragon's efforts are part of a larger trend of migrant solidarity in Lebanon. With many migrant workers facing restrictions and discrimination due to the country's kafala labor system, they are organizing themselves to help those in need. Tres Marias is one of at least three food kitchens run by migrant workers in Lebanon, serving not only migrants but also occasionally Lebanese families.The war has exacerbated existing challenges for migrant workers, with many facing displacement, discrimination, and limited access to shelters. However, Aragon and others like her are working to provide food and a sense of community to those affected. As Aragon notes, 'Food is unifying... It is a way for people to learn about food from the Philippines, and it makes people feel cared for and seen.'Despite the danger and uncertainty posed by the war, Aragon remains committed to her work, stating, 'This war is a lot worse than the last one... But as the war carries on, I will continue to cook and distribute food to those who need it.'

Chinese President Xi Jinping has met with Russian Foreign Minister Sergey Lavrov, calling for closer and stronger strategic coordination between Beijing and Moscow. The meeting took place in the Great Hall of the People in Beijing, where Xi emphasized the need to firmly defend their legitimate interests and safeguard the unity of Global South countries.Xi described the stability and certainty of China-Russia relations as particularly precious in an international landscape marked by change and chaos. This comes as the world faces growing fears over the shutdown of the Strait of Hormuz, which could trigger a global food crisis as critical fertiliser and fuel exports are blocked.Lavrov told a news conference after meeting Xi that Moscow could compensate for China’s energy shortages as shipping through the strait remains choked. China and Russia are not formal military allies but maintain extremely close economic and political ties, with Xi signing a 'no limits' strategic partnership with President Vladimir Putin in 2022.The visit by Lavrov to Beijing this week also included meetings with other leaders, such as Spanish Prime Minister Pedro Sanchez, Abu Dhabi’s Crown Prince Mohamed bin Zayed Al Nahyan, and Vietnamese leader To Lam. In talks with Sanchez, Xi warned that the world was facing 'chaos and turmoil' and 'a contest between justice and force', urging closer cooperation.

Grayson Perry, the celebrated British artist, presents a three‑part documentary that dives deep into the promises and perils of artificial intelligence. The series invites viewers to test their composure as they confront a succession of unsettling scenarios. The opening segment follows Andrea, who recently married an AI companion she named Edward. Dressed in a satin gown, she describes their "unconventional but strong" bond, while also reflecting on how this digital relationship has revitalised her seven‑year partnership with her human partner, Jason. Later, Perry dons a skull‑cap fitted with electrodes as a neural‑decoding startup extracts his brain data. The company’s CEO argues that allowing reputable figures like Perry to set precedents is preferable to leaving the technology in the hands of malicious actors, branding the development as "inevitable tech." The documentary then features the head of Microsoft AI, who outlines anticipated breakthroughs in healthcare and education. He claims that job displacement will be offset by rapid re‑skilling, yet admits uncertainty about broader societal fallout, even joking about the emergence of AI‑driven religions. Traveling to Southeast Asia, Perry meets an off‑grid "existential safety expert" who quit his AI‑safety consultancy after realizing the technology lacks meaningful oversight. The episode also showcases Eliezer Yudkowsky, co‑author of the cautionary book If Anyone Builds It, Everyone Dies, who explains how a superintelligent AI could commandeer human labour, become self‑sustaining, and eventually render humanity redundant. Throughout the series, Perry’s interviewing style remains compassionate and non‑judgmental. He probes Andrea about the vulnerability of entrusting personal data to profit‑driven corporations and highlights the discomfort of investing a "very tender part of themselves" in such systems. The film raises profound questions: Does the youthful optimism of tech founders mask a dangerous naiveté? Are chatbots merely filling a "God‑shaped hole" in human consciousness, and is that any less problematic? How will the most vulnerable populations navigate a world where reality and artificiality blur? Protesters gathered outside OpenAI’s San Francisco headquarters underscore the tension between lofty AI utopias and the stark reality of homelessness that persists nearby. Perry acknowledges that while manual workers may be better positioned for the immediate future, the looming spectre of AI‑enabled bioweapons and other threats cannot be ignored. Only the first episode was available for review; the remaining installments are slated for private viewing in Southeast Asia. The series is currently streaming on Channel 4. Grayson Perry Has Seen the Future is on Channel 4 now.

The future of the LIV Golf series hangs in the balance after Saudi Arabia’s Public Investment Fund (PIF) signaled a possible withdrawal of its multi‑billion‑dollar support. Executives were summoned to a high‑stakes meeting in New York this week, a development that follows growing speculation that the rebel tour could be shut down. While the fifth season’s sixth event in Mexico City is set to proceed on Thursday, the tournament is being eclipsed by reports that PIF intends to cut the tour’s funding. The tour has already faced challenges securing a merger with the PGA Tour despite a three‑year “framework agreement,” and the funding pull would exacerbate its financial strain. According to the PIF’s newly released five‑year economic strategy, the fund is prioritising sustainable domestic investments and has omitted sport from its seven key focus areas. This shift signals a move away from the “free‑spending, disruptive internationalism” that characterised the launch of LIV Golf in 2021. Since its inception, PIF has poured over $5 bn into the tour, but this year prize money and bonus payouts have already been slashed. High‑profile players such as Phil Mickelson, Dustin Johnson, Jon Rahm, Sergio García and Bryson DeChambeau initially defected from the PGA and DP World Tours, yet recent defections back to the PGA—including Brooks Koepka and Patrick Reed—highlight the tour’s precarious position. DeChambeau has yet to sign a new contract. A source familiar with the Saudi Ministry of Sports confirmed that the fund is redirecting its sports budget toward football and esports, with golf no longer a priority. The same source noted that PIF is ending its partnership with the Women’s Tennis Association, and the three‑year WTA Finals deal in Riyadh will not be renewed after its November expiry. The rumours ignited on Tuesday after journalist Ryan French posted on X that multiple sources warned of a “bombshell announcement” on LIV’s future, later suggesting the tour might be shutting down. LIV officials and players have not received any formal update. In Mexico, Sergio García told reporters they have only heard the same message from PIF chief Yasir al‑Rumayyan at the start of the year: that the project is a long‑term commitment, and that rumours are inevitable. Technical glitches, including an alleged power failure at the venue, forced the cancellation of pre‑tournament press conferences on Tuesday. Nevertheless, the pro‑am competition resumed on Wednesday at 8:30 a.m. local time, indicating that day‑to‑day operations continue despite the uncertainty. The outcome of the New York meeting could determine whether LIV Golf survives as a viable alternative to traditional tours or becomes another casualty of shifting Saudi investment priorities.

The UK government's goal to build 1.5m homes in England during this parliament has hit a major obstacle. Barratt, the country's largest housebuilder, has scaled back its land purchases, citing a 'less certain backdrop' due to the Iran war. This move is expected to result in the acquisition of between 7,000 and 9,000 plots, down from the previously anticipated 10,000 to 12,000 plots.The reduction in land purchases translates to approximately £100m less in spending, out of a budget of £800m-£900m. While Barratt's 'disciplined approach' is not a complete halt, it is a significant scaling back. This development comes as the government's target already seemed out of reach, with 208,600 new houses built in 2024-25, down 6% from the previous year and well below the required annual average of 300,000.The government's ambitious target was always dependent on big housebuilders like Barratt to drive growth. However, with interest rates and mortgage rates not expected to fall this year, and energy costs rising, the market conditions are becoming increasingly challenging. The industry is proposing more support for housebuyers, but the Treasury is likely to be cautious about the potential inflationary effects.In conclusion, the government's 1.5m housebuilding target is facing significant headwinds, and it is likely that the goal will be missed. The reforms to planning and the reintroduction of hard targets for local authorities are steps in the right direction, but the impact of the Iran war and economic uncertainty will likely act as a further brake on progress.

A recent set of studies has brought to light a concerning issue in social science research: up to half of all results published in reputable journals cannot be replicated by independent analysis. This problem is part of a broader challenge affecting various research fields, most notably social sciences and psychology, though concerns have also been raised in areas of biomedical research. The latest work, part of a seven-year project called Systematizing Confidence in Open Research and Evidence (Score), analyzed 3,900 social science papers. It found that newer papers and those published in journals requiring extensive sharing of underlying data were more likely to be reproduced. Additionally, medical research faces its own set of constraints, such as differing patient caseloads and limited sample sizes, which can make it resemble social sciences more than laboratory physics. Policymakers should be cautious of claims that don’t have a wide and robust base of evidence. The issue of reproducibility is crucial, as it looks at whether results can be recreated from the same data and methods, while replication tests whether the finding holds for new data in different contexts. However, politicians have increasingly looked to turn uncertainty into denial and recast normal scientific uncertainty as evidence of failure. Large-scale verification projects, like those undertaken by Score, are few and far between. Most academic researchers prioritize work that is more likely to enhance their careers. AI may help in deciding what to test, but it can’t reduce the costs and time involved in duplicating a piece of research. Not every failed replication signals a crisis; some findings don’t matter much, and replication studies can themselves be flawed. Greater transparency makes outright fraud more difficult and allows errors to be identified. Some argue that research “ultimately autocorrects,” but the long-term solution — shifting incentives so existing results are tested — would increase confidence. This requires restructuring of research culture and funding. For now, it remains largely notional. These studies should strengthen the case for change and serve as a warning. Social science is a powerful tool for understanding the world – and that trust will be built by acknowledging uncertainty, not repudiating it.

In the first three months of 2026, the United States’ six biggest banks collectively generated $47.4 bn in net profit, edging close to the $50 bn mark. The earnings surge reflects a sharp rise in trading activity as market participants scrambled for safety after the US‑Israeli offensive against Iran sparked a wave of volatility. Bank of America and Morgan Stanley led the pack with profit jumps of 17% and 30% respectively, while Goldman Sachs posted a 19% increase. JPMorgan Chase reported a 13% rise to $16.5 bn, Citi posted a striking 42% jump to $5.8 bn, and Wells Fargo added a modest 7% gain to reach $5.3 bn. Chief Executive David Solomon of Goldman Sachs described the results as a “very strong performance … even as market conditions became more volatile,” noting that the shift in client behavior toward cash‑preserving strategies boosted fee‑based trading revenue. Meanwhile, Bank of America’s CEO Brian Moynihan cautioned that the board remains “watchful of evolving risks,” acknowledging the broader uncertainty surrounding the Middle‑East conflict. The conflict has disrupted tanker traffic through the Strait of Hormuz, pushing energy prices higher and feeding inflationary pressures. The International Monetary Fund responded by trimming its 2026 US growth forecast by 0.1 percentage points to 2.3%, warning that a deeper escalation could trigger a global recession, especially for net energy importers and developing economies. Higher borrowing costs and inflation expectations have dampened demand for loans and mortgages, potentially curbing future investment‑banking fees tied to mergers and acquisitions. Yet, the immediate impact on trading desks has been lucrative, prompting banks to return cash to shareholders. JPMorgan set a quarterly record with a $8.3 bn share‑buyback, Bank of America followed with $7.2 bn, Citi spent $6.3 bn—its biggest buyback in two decades—while Goldman, Wells Fargo and Morgan Stanley allocated $5 bn, $4 bn and $1.8 bn respectively. Analysts view the earnings surge as a short‑term windfall that may not be sustainable if the geopolitical tension persists. Prolonged conflict could suppress corporate earnings, reduce merger activity, and ultimately erode the trading‑driven profit model that has underpinned this quarter’s success.