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Campaigners decry ties with 'Trump-supporting' tech firms after funding is accepted to develop state AI systemsUK politics live – latest updatesMinisters have accepted $1m from Meta, the US tech and social media company, to build AI systems for defence, national security and transport, sparking warnings about the UK government's “alarmingly close relationship with Trump-supporting US tech giants”.The money from Mark Zuckerberg's company will be used to pay experts to “develop cutting-edge AI solutions … to support national security and defence teams”, the Department for Science, Innovation and Technology (DSIT) announced on Tuesday. Continue reading......

Tech chiefs waxed poetic about AI to delegates at Davos. Plus, the 'human' drama of AI startups and why Tesla is thriving in TexasHello, and welcome to TechScape. This week's edition is a team effort: my colleague Heather Stewart reports on the plans for AI's world domination at Davos; I examine how huge investments have followed AI companies with little to their names but drama and dreams; and Nick Robins-Early spotlights how lax regulation of autonomous driving in Texas allowed Tesla to thrive. Continue reading......

Dario Amodei questions if human systems are ready to handle the 'almost unimaginable power' that is 'potentially imminent'Business live – latest updatesQuarter of Britons fear losing jobs to AI in next five yearsHumanity is entering a phase of artificial intelligence development that will “test who we are as a species”, the boss of leading AI startup Anthropic has said, arguing that the world needs to “wake up” to the risks.Dario Amodei, co-founder and chief executive of the company behind the hit chatbot Claude, voiced his fears in a 19,000-word essay entitled “the adolescence of technology”. Continue reading......

Delivery firm aims to overcome 'choice overload' using voice assistant in its UK app, with global rollout plannedBusiness live – latest updatesIn the beginning, collecting a takeaway was the epitome of a lazy night in. Then delivery apps saved some more energy. Now, consumers can skip even bothering to read the menu as AI takes over the job of choosing the perfect evening meal.Just Eat is rolling out an AI voice assistant that lets customers discuss what they might be interested in eating, and then offers personalised recommendations. Continue reading......

Deal expected to ease access for European cars and wine, in return for Indian exports of textiles, gems and pharmaceuticalsEurope live – latest updatesBusiness live – latest updatesIndia and the EU have finalised a landmark free trade agreement, which the European Commission president, Ursula von der Leyen, hailed as the “mother of all deals”.The agreement comes after almost two decades of on-off negotiations between India and the EU, which vastly accelerated in the past six months and were finally concluded late on Monday night. Continue reading......

Wide-ranging deal will cut tariffs to zero over seven years as Modi hails 'largest free trade agreement' in India's historyIf you are after a detailed “fact sheet” on the deal, the EU's document is here.It says the agreement will save up to €4bn per year in duties on European products and pointedly says it is the biggest trade opening India has given to any trade partner (hello UK).“For example, tariffs on cars will gradually go down from 110% to 10% with a quota of 250,000 vehicles a year. High tariffs of up to 44% on machinery, 22% on chemicals and 11% on pharmaceuticals will be mostly eliminated.” Continue reading......

Sales at Elon Musk's carmaker plummet nearly 38% in 2025 as it loses ground to China's BYD; gold continues to riseGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Sales of new cars in the European Union rose by 1.8% last year, with electric cars making up a bigger share of the market, while Tesla sales plummeted as it lost ground to China's BYD. Continue reading......

Rachel Reeves to announce temporary cap in England and Wales, but not help for wider hospitality sectorRachel Reeves is poised to unveil a support package worth about £100m annually for pubs, after being warned of widespread closures and job losses after the announcement of controversial changes to business rates.The chancellor is expected to announce the relief package on Tuesday, after officials admitted that they had not foreseen the total financial impact of the rates shake-up in England and Wales announced in the budget in late November. Continue reading......

Keir Starmer says move is 'good news for homeowners' in TikTok video announcing changeGround rents are to be capped at £250 a year for leaseholders in England and Wales, Keir Starmer has announced, as his government unveiled proposals to ban leaseholds for new flats.New leasehold flats will be banned and existing leaseholders will get the right to switch to commonhold in an attempt to give homeowners greater control over their properties, under proposals to be put out to consultation. Continue reading......

US president says tariffs on automobiles, lumber and pharmaceuticals will rise to 25%, accusing Seoul of not living up to a trade deal struck last yearDonald Trump has said he is raising tariffs on South Korean goods including automobiles, lumber and pharmaceuticals, accusing the country of not living up to a trade deal struck last year and briefly sending shares in Korean carmakers tumbling.In a post on social media, the US president said the tariffs paid on South Korean exports into America would rise from 15% to 25% because the “Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative”. Continue reading......

Innocent people are being frozen out of basic banking services – and it all traces back to reforms rushed through after 9/11Hamish Wilson lives a few miles away from me, in a cosy farmhouse in the damp hills of mid Wales. He makes good coffee, tells great stories and is an excellent host. Every summer, dozens of Somali guests visit Wilson's farm as part of a wonderfully wholesome project set up to celebrate their nation's culture, and to honour his father's second world war service with a Somali comrade-in-arms.Inadvertently, however, the project has revealed something else: a deep unfairness in today's global financial system that not only threatens to ruin the Somalis' holidays, but also excludes marginalised communities from global banking services on a huge scale. Continue reading......

Newsom launched a review of the platform, despite TikTok saying a systems failure was responsible for the issueCalifornia governor Gavin Newsom has accused TikTok of suppressing content critical of president Donald Trump, as he launched a review of the platform's content moderation practices to determine if they violated state law, even as the platform blamed a systems failure for the issues.The step comes after TikTok's Chinese owner, ByteDance, said last week it had finalised a deal to set up a majority US-owned joint venture that will secure US data, to avoid a US ban on the short video app used by more than 200 million Americans. Continue reading......

Does Britain have any leverage over human rights or security concerns or is it a decaying nation that cannot risk trade relations?This week, Keir Starmer will reportedly visit China. This will be the first trip of this kind by a British prime minister since Theresa May's three-day visit to Beijing in 2018. Since then, relations between London and Beijing have become increasingly fraught, caught between growing security concerns and deep economic interdependence. Allegations of espionage and influence operations have sharpened political and public suspicion in the UK, even as deep trade links and supply chains on which the country depends make disengagement unrealistic. As fierce debate about the recent approval for the new Chinese embassy has shown, there are strong opinions about how to best manage relations with Beijing – as well as what, precisely, constitutes a threat and what is an opportunity. The result is an uneasy balancing act in which caution and cooperation coexist, often uncomfortably.Thes...

French port's green energy push, evoking second world war spirit of resilience, is seen as a testing ground for reindustrialisationA new cargo and passenger ferry service directly linking Scotland and France could launch later this year as the port of Dunkirk embarks on a €40bn (£35bn) regeneration programme it claims will mirror the second world war resilience for which it is famed.The plans could include a new service between Rosyth in Fife and Dunkirk, eight years after the last freight ferries linked Scotland to mainland Europe, and 16 years after passenger services stopped. Continue reading......

Project employs technology that can be used to store and release renewable energy using even gentle slopesA hillside “battery” outside Plymouth in Devon has begun generating electricity using a first of a kind hydropower system embedded underground.The pioneering technology means one of the oldest forms of energy storage, hydropower, can be used to store and release renewable energy using even gentle slopes rather than the steep dam walls and mountains that are usually required. Continue reading......

Respondents to King's Trust survey cited AI and a lack of work experience as reasons they might fail in lifeMore than seven in 10 teens and young adults in the UK say they wish they were not starting their careers in the current economic climate, according to new research from the King's Trust.The study also found that more than a quarter of people aged 16 to 25 feel they are going to fail in life, highlighting growing anxiety among those entering the labour market. Continue reading......

Latest BRC figures show year-on-year rate of increase was 3.9% in January, up from 3.3% the month beforeRetailers have blamed rising energy bills and the chancellor Rachel Reeves's hike in employers' national insurance contributions for a jump in food prices, as suppliers and supermarkets struggle to absorb higher costs.The British Retail Consortium (BRC), the trade body for retailers, said prices across all goods in shops rose by 1.5% in January compared with the same month last year, up from a 0.7% rise in December and higher than the 0.7% increase economists had been expecting. It is also above the three-month average of 0.9%. Continue reading......

Move comes as the SEC has taken a series of friendly stances towards the cryptocurrency industry under TrumpThe US Securities and Exchange Commission (SEC) on Friday agreed to dismiss its enforcement case against a cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, after investors in its lending program recovered their assets in full.The SEC has taken a series of industry-friendly actions in recent years, a shift in its approach to crypto enforcement under Donald Trump, who promised to be the “crypto president”. He brought in more favorable rules and pledged to popularize mainstream use of digital currencies. Continue reading......

Southern state becoming ground zero in fight against rapid growth of facilities using huge amounts of energy and waterLawmakers in several states are exploring passing laws that would put statewide bans in place on building new datacenters as the issue of the power-hungry facilities has moved to the center of economic and environmental concerns in the US.In Georgia a state lawmaker has introduced a bill proposing what could become the first statewide moratorium on new datacenters in America. The bill is one of at least three statewide moratoriums on datacenters introduced in state legislatures in the last week as Maryland and Oklahoma lawmakers are also considering similar measures. Continue reading......

Tech company denied illegally recording and circulating private conversations to send phone users targeted adsGoogle agreed to pay $68m to settle a lawsuit claiming that its voice-activated assistant spied inappropriately on smartphone users, violating their privacy.A preliminary class action settlement was filed late on Friday night in the San Jose, California federal court, and requires approval by US district judge Beth Labson Freeman. Smartphone users accused Google, a unit of Alphabet, of illegally recording and disseminating private conversations after Google Assistant was triggered, in order to send them targeted advertising. Continue reading......