Spending

• IBM reports that AI spending is projected to surge from under 15% of total IT budgets in 2025 to nearly 25% by 2027. • Security and compliance concerns are the primary obstacles to scaling, with nearly 59% of respondents identifying these as top barriers. • The study highlights operational instability, noting that surveyed organizations experienced an average of 54 AI agent incidents requiring human intervention over the past year.

• Technology spending in Europe is projected to reach USD $1.3 trillion by 2026, driven largely by a surge in infrastructure investments. • Businesses are aggressively expanding data centers to support the growing demands of artificial intelligence integration. • An Omdia AI Maturity Survey reveals that 71% of organizations in Western Europe now support the concept of national AI sovereignty.

• The Canadian Department of Canadian Heritage ordered the CRTC to review its policy requiring streaming services to increase spending on local content. • The government aims to prevent these new regulatory costs from being passed on to consumers through higher subscription fees during a period of high cost-of-living pressure. • While the official reason focuses on consumer pricing, experts warn that the requirements could further strain Canada's trade relationship with the United States.

Australian Bureau of Statistics estimates nicotine consumption rose 40%, with illicit sources accounting for 80% of all tobaccoFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAustralians are consuming more nicotine than they were eight years ago but are spending less, new data from the Australian Bureau of Statistics shows, as 80% of the cigarettes smoked by the nation last year were cheaper illegal products.The analysis released by the Australian Bureau of Statistics (ABS) on Wednesday showed the amount of nicotine consumed around the country soared by 40% between 2017 and 2025, despite population growth rising by just 14%. Continue reading...

One of largest equity fundraisings ever includes $10bn share sale to US investment group Berkshire HathawayBusiness live – latest updatesGoogle’s parent company Alphabet has said it plans to raise up to $80bn (£59bn) in equity to fund its vast artificial intelligence infrastructure investments, raising further questions over the economics of the AI boom.The move, one of the largest equity fundraisings ever globally, includes a $10bn share sale to the US investment group Berkshire Hathaway, which was led until last year by the retired investment guru Warren Buffett for 60 years. Continue reading...

• South Korea experienced a significant tourism boom in April, with Seoul alone welcoming over 1.5 million foreign visitors. • China emerged as the primary driver of this surge, leading other major contributing markets including the United States, Japan, Taiwan, and the Philippines. • The influx of tourists resulted in a massive economic boost, with total visitor spending soaring to 1.15 trillion won.

• US official Hegseth praised several Asian partners for increasing their security and defense spending during a forum on May 30. • He specifically recognized Australia, Indonesia, Japan, Malaysia, the Philippines, South Korea, Singapore, Thailand, and Vietnam for their contributions. • Notably, Taiwan and New Zealand were omitted from the list of partners stepping up their security efforts.

• During the Shangri-La Dialogue on May 30, US official Pete Hegseth praised several Asian partners for increasing their security and defense spending. • Hegseth specifically recognized Australia, Indonesia, Japan, Malaysia, the Philippines, South Korea, Singapore, Thailand, and Vietnam for their contributions. • The omission of Taiwan and New Zealand from the roll call of partners is a notable detail that may signal shifts in diplomatic priorities or strategic messaging.

• A Barclays survey reveals that 68% of UK business leaders plan to increase their cybersecurity spending over the next 12 months to combat evolving risks. • Despite the investment, 46% of leaders fear that the adoption of new technologies, including AI, is widening their exposure to cyber threats. • There is a significant gap in confidence, as only 29% of businesses feel prepared to respond to a major cyber incident, even though 82% believe their measures are keeping pace with tech adoption.

• 68% of UK firms plan to increase cybersecurity spending due to rising security concerns. • The increase in spending is driven by the adoption of new technologies, including AI, which 46% of business leaders believe is increasing their exposure to cybersecurity risks. • Fewer than three in 10 businesses are confident in their ability to respond to a major cyber incident, highlighting the need for improved cybersecurity measures.

Party spent £252,000 in last two weeks of campaign on its main Facebook pages compared with Labour’s £276,000UK politics live – latest updatesReform UK ramped up the funding and sophistication of its political Facebook ads in the final weeks of campaigning for the May elections, in a sign of the growing financial muscle of Nigel Farage’s party.There were several days in the fortnight before the party’s breakthrough electoral performance when Reform spent more than any other party on the influential platform. Continue reading...

National Audit Office says potential benefits are ‘considerable but uncertain’ while risks are ‘immediate and substantial’The cost of the government’s £38bn nuclear plant in Suffolk is subject to “significant uncertainty” and may outweigh the benefits for UK households until at least 2064, according to the government’s spending watchdog.The National Audit Office (NAO) has warned that although the potential benefits of the Sizewell C nuclear plant are considerable, they remain uncertain. The risks, however, are “immediate, substantial and borne by the public”. Continue reading...

Dip in credit card spending in April, particularly on travel, suggests Britons preparing for harder times amid Iran war falloutHouseholds cut back on their spending in April at the fastest pace in 18 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK’s biggest banks has suggested.Barclays, which processes nearly 40% of the UK’s credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024. Continue reading...

• ByteDance has announced a 25% increase in artificial intelligence infrastructure spending for 2026 as part of a major strategic push to strengthen its competitive position in the AI sector. • The investment boost reflects ByteDance's commitment to scaling compute resources, data centers, and AI development capabilities to support its existing platforms and emerging AI products. • The spending increase positions ByteDance alongside other major Chinese tech firms in ramping up AI investments amid intensifying global competition with US technology companies.

Retail group with 4,800 stores worldwide expects drop in profits this year amid ‘muted market’Business live – latest updatesThe sports fashion retailer JD has warned that profits will fall this year amid a “muted market” hit by weaker spending by young people and concerns about the Middle East conflict.The company, which runs 4,800 stores worldwide including the JD, Blacks and Millets chains in the UK, said it expected profits of between £750m and £850m in the year ahead, after reporting £852m in the year to the end of January. Continue reading...

Parties accused of ‘fiscal denial’ and failing to tell voters the scale of the challengeThe next Scottish government will need to make “really difficult” spending decisions soon after taking power, including tackling its large public sector pay bill, senior economists have said.Economists with the Fraser of Allander Institute, at the University of Strathclyde, believe the manifestos published by Scotland’s political parties during the campaign failed to tell voters about the true scale of the challenge. Continue reading...

• US GDP expanded at a 2.0% annualized rate in Q1 2026, rebounding from 0.5% in the prior quarter, driven by government spending, exports, and investment. • Consumer spending stayed strong in March, bolstered by rising personal income and consumption. • Manufacturing PMI hit its strongest since May 2022 per S&P Global, though possibly due to inventory buildup rather than demand.

First quarter output, driven by AI investment and government spending, rose as oil shock fuels inflation fearsUS gross domestic product (GDP) accelerated 2% in the first three months of 2026, though consumer spending is slowing as the war with Iran continues to impact energy prices.The last GDP reading for the fourth quarter of 2025 showed that US economic growth slowed to a 0.5% pace, largely due to a contraction in government spending after massive layoffs of federal workers last year. The federal government is down 355,000 workers, or 11.8% of the workforce, since October 2024, according to the Bureau of Labor Statistics. Continue reading...

• A majority of Americans express concern over rising healthcare costs and support increased federal tax spending to address these challenges, according to the Axios/Ipsos American Health Index released March 17, 2026. • The poll demonstrates bipartisan support for government action on healthcare affordability, reflecting widespread concern among the U.S. public about escalating medical expenses. • Americans also show increased trust in government handling of childhood vaccination decisions, signaling broader public confidence in health policy interventions.

Minister tells Guardian Australia despite substantial changes to disability scheme, it will remain one of best support services ‘anywhere in the world’Follow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastMark Butler has defended the government’s decision to trim the NDIS just days after announcing $53bn in new defence spending, with the health minister conceding Australians may be “uneasy” but insisting it would remain one of the best support services “anywhere in the world”.The Coalition looks likely to back the proposed changes, despite alarm from the Greens and some in the disability sector about the 160,000 participants expected to be removed by 2030 and changes to who can access the scheme. Continue reading...

Shell Australia says campaign needed to ‘counter-balance’ claims by levy advocates – but Ed Husic urges industry ‘do not spend millions defending the indefensible’The gas giants are mounting a multi-million dollar advertising campaign to fight against a new export tax, prompting Labor MP Ed Husic to accuse the industry of “defending the indefensible”.Shell Australia is among half-a-dozen oil and gas companies contributing around $1m to an Australian Energy Producers (AEP) campaign that attempts to justify the amount of tax the industry pays, a parliamentary inquiry heard on Wednesday. Continue reading...

The trend has been accelerated by the US-Israel war on Iran, leaving households – and cafe owners – glum, surveys suggestFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastFor many coffee drinkers, takeaway orders are changing from a habitual purchase to an occasional treat, as elevated petrol prices and other living costs leave households feeling glum.This rapid shift in behaviour has disappointed cafe owners and surprised economists, raising an uneasy question: if takeaway coffee sales are falling, is the economy next? Continue reading...

Health minister faces backlash from states as he announces major changes to scheme ahead of May budgetGet our breaking news email, free app or daily news podcastNational disability insurance scheme service providers will be required to undergo mandatory character checks and eligibility rules will be tightened further for children under 18, as Labor moves to curb growth in the $50bn program.But the health minister, Mark Butler, faces a backlash from state counterparts as he announces major changes on Wednesday, with Queensland accusing federal Labor of walking away from responsibilities to families dependent on long-term care. Continue reading...

Head of UN’s humanitarian agency frustrated $2bn a week cost of conflict comes amid dramtic cuts to aid budgetThe $2bn (£1.5bn) a week that Donald Trump was spending on his reckless war in Iran could have funded saving more than 87 million lives, the head of the UN’s humanitarian agency, Tom Fletcher, said on Monday.He also warned the normalisation of violent language, such as threatening to bomb Iran back to the stone ages, was very dangerous since it encourages every wannabe autocrat to use similar threats and tactics, including the destruction of civilians and civilian infrastructure. Continue reading...

• AI integration is delivering measurable spending momentum for Google Cloud, with enterprise technology research data confirming AI as a primary driver of cloud adoption. • The ML/AI segment is pulling Google's broader cloud business forward, explaining significant improvements in Google Cloud's performance over the past two years. • This trend indicates that AI is not merely a marketing narrative for Google but a concrete factor influencing enterprise purchasing decisions and cloud strategy prioritization.

Aviation fuel costs remain significantly elevated amid the US and Israel’s ongoing war with IranSign up for the Breaking News US email to get newsletter alerts in your inboxAir Canada has announced a temporary suspension of flights from Toronto and Montreal to New York’s John F Kennedy airport, citing rising fuel prices.The move comes amid growing concerns that airlines worldwide may scale back services as aviation fuel costs climb in the wake of the US and Israel’s ongoing war with Iran, which entered a fragile ceasefire earlier in April. Although Iran announced on Friday that the strait of Hormuz had reopened, helping ease oil prices, fuel costs remain significantly elevated after weeks of disruption. Continue reading...

The defence minister insists that increases in spending did not happen because of thinktanks, retired generals ‘or washed-up bureaucrats’Get our breaking news email, free app or daily news podcastIf there’s anyone who knows just how much pressure Donald Trump is heaping on allies to lift defence spending, it’s Richard Marles.The message was received loud and clear when he met his US counterpart, Pete Hegseth, in Singapore nearly a year ago. Continue reading...