Business

Borrowing costs jump and pound falls on Chancellor’s tears

Published

5 days ago

July 2, 2025

Borrowing costs have surged and the pound has fallen after a tearful appearance by Chancellor Rachel Reeves in parliament.

Reeves was at Prime Minister’s Questions on Wednesday following the government’s U-turn on plans to cut billions of pounds through welfare reforms.

Markets reacted after her emotional state sparked speculation about her position in government.

Sterling dropped by 1% against the dollar, ending the pound’s strong run against a weaker US currency.

Borrowing costs also soared in one of the biggest single-day moves since October 2022 when markets were in turmoil after former Prime Minister Liz Truss’s mini-budget, which eventually led to her downfall.

The rise eased slightly after Number 10 tried to quell rumours that Reeves might be replaced, though it then increased again.

“The chancellor is going nowhere, she has the prime minister’s full backing”, a government spokesperson said, though Prime Minister Sir Keir Starmer himself declined to give her a public show of support.

However, later on Wednesday he told BBC Radio 4’s Political Thinking with Nick Robinson he worked “in lockstep” with Reeves and she was “doing an excellent job as chancellor”.

A Treasury spokesperson said the chancellor was upset due to a “personal matter”.

The reversal of welfare reforms puts an almost £5bn black hole in Reeves’s financial plans.

The rise was initially caused by the suggestion the chancellor might step down, suggesting she retains market credibility.

“The conclusion from financial market price action this afternoon is that the market actually likes Reeves, because UK borrowing costs have jumped and the pound has weakened sharply,” said Mike Riddell, fixed income portfolio manager at Fidelity International.

“Of course it may not be about Reeves specifically,” he added. “But the market is pricing in uncertainty regarding a potential change in future policy.”

The fact that borrowing costs remained higher imply wider concerns about the government’s Budget maths are starting to materialise.

Analysts at Rabobank said “investors will be asking how Reeves will balance the books”.

They added that “the prospect of more taxation does appear to be a natural conclusion ahead of the Autumn Budget”.

Cabinet minister Pat McFadden said on Wednesday that the government would stick to its election pledge not to increase income tax, VAT or employees’ National Insurance Contributions.

But he conceded that there would be “financial consequences” to the decision to row back on planned cuts to disability and health-related benefits.

Simon Blundel, head of European fundamental fixed income investments at BlackRock, said the rise in borrowing costs “would suggest more uncertainty with regards to the current government”.

But he added that the market was “not as vulnerable as it was in 2022” in the aftermath of the mini-budget.

The FTSE 250, which is more exposed to UK policies than the FTSE 100, closed down 1.34%.

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Business

Can AI run a successful vending business? An AI startup tested it out

Published

2 hours ago

July 7, 2025

Linda Becker

Because AI isn’t (yet) able to physically restock the machine, the AI model could email company employees who handled such tasks. Beyond that, however, the AI model, dubbed Claudius for the experiment, was tasked with many of the responsibilities of a traditional operator, including selecting and maintaining inventory, setting prices and maximizing profit.

The upshot: “If Anthropic were deciding today to expand into the in-office vending market, we would not hire Claudius,” the company wrote in its blog.

The experiment showed that while the AI model was effective at tasks such as identifying suppliers, adapting to users’ requests and “jailbreak resistance,” as Anthropic employees tried to trick Claudius into stock sensitive items, Claudius failed as a convenience service operator because it ignored profitable opportunities, instructed customers to make payments at a Venmo address it had imagined (instead of the one created), sold products at a loss, offered excessive discounts and mismanaged inventory.

Although version one of Project Vend wasn’t successful at the bottom line, Anthropic predicts that AI middle managers will come to pass. “It’s worth remembering that the AI won’t have to be perfect to be adopted; it will just have to be competitive with human performance at a lower cost in some cases,” the company wrote in its blog.

Read the full story here.

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Business

Suntory Global Spirits chooses Globant to build a Commercial Insights AI Agent and unlock Business Intelligence at Scale

Published

3 hours ago

July 7, 2025

The Editors

Suntory Global Spirits chooses Globant to build a Commercial Insights AI Agent and unlock Business Intelligence at Scale

PR Newswire

NEW YORK, July 7, 2025

Globant is partnering with Suntory Global Spirits to build a generative AI-powered Commercial Insights Agent
With the Agent, Suntory Global Spirits employees can access data insights and self-service intelligence, speeding up decision-making across product development, marketing, sales and strategy

NEW YORK, July 7, 2025 /PRNewswire/ — Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced a reinvention partnership with Suntory Global Spirits, the world leader in premium spirits, to build and deploy a generative AI-powered Commercial Insights Agent. By compressing days of work into seconds and supporting real-time decision-making for sales, marketing, and strategy, Globant’s Commercial Insights Agent is transforming operations for the beverage company.

The AI-powered agent can interpret complex business questions across dashboards, reports, and unstructured documentation for Suntory Global Spirits, eliminating the need for manual insight requests. By automating insight retrieval, the Commercial Insights Agent reduces operating costs tied to traditional business intelligence workflows and significantly reduces time-to-action. What once required multiple cycles of back-and-forth between business and analytics teams can now be executed on demand, freeing up employees to focus on higher-value strategic tasks.

“Our work with Suntory Global Spirits exemplifies how visionary companies can harness the power of agentic and generative AI to fundamentally transform the way they operate,” said Santiago Noziglia, Retail, CPG and Automotive AI Studio CEO at Globant. “The Commercial Insights Agent is more than a productivity tool; it’s a strategic enabler that redefines how teams access knowledge, make decisions, and unlock growth. Together, we’re pushing the boundaries of what’s possible when building an AI-powered enterprise.”

Additional benefits of the Commercial Insights Agent include:

Self-serve decision support at scale: Teams at Suntory Global Spirits, especially across marketing, sales and product management, can independently access data insights, ask questions, or generate reports without bottlenecks or dependencies on other teams.
Contextual recommendations powered by GenAI: The Commercial Insights Agent is trained on internal data to provide contextual GenAI recommendations that speed up decision-making.
AI Agent foundation: The Commercial Insights Agent is just the beginning for Suntory Global Spirits, which can now use the agent as a template for new use cases across brand planning, commercial forecasting and innovation pipelines.

To learn more about Globant’s AI-powered tools, visit https://www.globant.com/enterprise-ai.

About Globant

At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our expertise in AI. We dare to digitally transform organizations and strive to delight their customers.

We have more than 31,100 employees and are present in 36 countries across 5 continents, working for companies like Google, Electronic Arts, and Santander, among others.
We were named a Worldwide Leader in AI Services (2023) and a Worldwide Leader in Media Consultation, Integration, and Business Operations Cloud Service Providers (2024) by IDC MarketScape report.
We are the fastest-growing IT brand and the 5th strongest IT brand globally (2024), according to Brand Finance.
We were featured as a business case study at Harvard, MIT, and Stanford.
We are active members of The Green Software Foundation (GSF) and the Cybersecurity Tech Accord.

Contact: pr@globant.com
Sign up to get first dibs on press news and updates.
For more information, visit www.globant.com.

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Business

AI Company Buys Bitcoin Miner in $9 Billion Deal to Expand Data Power

Published

3 hours ago

July 7, 2025

CPI

AI cloud provider CoreWeave announced it will acquire bitcoin mining firm Core Scientific in an all-stock transaction valued at approximately $9 billion, according to Reuters.

As AI workloads continue to surge, energy-hungry data centers have become a crucial asset. Firms like CoreWeave, which began as a crypto miner and later transitioned into AI infrastructure, are aggressively expanding their access to power and physical computing capacity. Per Reuters, the acquisition will give CoreWeave control of Core Scientific’s 1.3 gigawatts of contracted power and its development pipeline, a major boost in the race to scale AI operations.

Under the terms of the deal, Core Scientific shareholders will receive 0.1235 shares of newly issued CoreWeave stock for each Core Scientific share they hold. The offer values Core Scientific at $20.40 per share—a 66% premium over the stock’s price before deal discussions became public in late June, Reuters noted.

Despite the premium, Core Scientific’s stock dropped 22% in early trading Monday, while CoreWeave, which is backed by Nvidia, saw its shares decline 4.5%.

The acquisition is expected to help CoreWeave reduce more than $10 billion in projected future lease expenses tied to current site agreements over the next 12 years. The move not only expands CoreWeave’s energy footprint but also signals a broader trend of bitcoin miners diversifying into AI to remain viable in a rapidly shifting tech landscape.

“This acquisition accelerates our strategy to deploy AI and HPC (high-performance computing) workloads at scale,” said CoreWeave CEO Michael Intrator, in a statement released alongside the announcement.

Industry analysts see the transaction as a potential inflection point. Gautam Chhugani of Bernstein told Reuters the deal could become a blueprint for other miners looking to reposition themselves in the AI economy. Power access, he emphasized, remains the chief bottleneck for the expansion of AI-focused data centers.

Founded in 2017 as an Ethereum mining operation, CoreWeave exited the crypto mining business following Ethereum’s 2022 shift to a proof-of-stake model, which dramatically reduced miner incentives. Since then, the company has grown rapidly, with revenue surging more than eightfold last year, per its IPO filing.

Source: Reuters

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