Latest Developments

Europe
The Guardian

How the fight over US datacenters is scrambling this state’s politics: ‘We don’t want it’

The Pennhurst asylum, a site of debate over AI datacenters, in Spring City, Pennsylvania, on 10 October 2025. Photograph: Bloomberg/Getty ImagesView image in fullscreenThe Pennhurst asylum, a site of debate over AI datacenters, in Spring City, Pennsylvania, on 10 October 2025. Photograph: Bloomberg/Getty ImagesAI (artificial intelligence)How the fight over US datacenters is scrambling this state’s politics: ‘We don’t want it’Josh Shapiro, Pennsylvania’s governor, squares off with state lawmakers over the facilities powering an AI boom A controversial haunted house near Philadelphia, Pennsylvania, taps into its dark history every fall to scare tens of thousands of visitors. In 1968, a local news station documented appalling conditions for disabled people in the red-brick buildings on the banks of Schuylkill River. Residents were found naked and emaciated at what was then known as the Pennhurst state school and hospital. The institution shut its doors permanently in 1987 after a lawsuit over inhumane conditions. By 2010, a Halloween attraction stood in its place, and Pennhurst asylum’s previous owner suggested during its early years that he wanted to spook guests by repurposing the hospital’s surgical lights and medical cabinets to use as props. In 2026, fears more real than ghosts float above the property. The site’s owners have submitted a proposal to local officials to make way for a datacenter complex: three buildings, spread across nearly 2m sq ft, powered by methane gas. The proposed facility has sparked local backlash in the township of East Vincent, especially because it would sit less than 600ft from a veterans’ home. Donald Hyman, a 62-year-old resident, is concerned that air pollution from an on-site power plant and backup generators could disrupt his recovery from congestive heart failure. View image in fullscreenA map showing the distance between Pennhurst asylum and hospital and Southeastern Veterans’ Center. Composite: Google EarthHyman and four veterans living at the Southeastern Veterans’ Center told the Guardian they also worry that the noise could trigger residents with post-traumatic stress disorder and that the construction process could expose them to harmful contaminants in the soil and water. “You’re trying to force something on us we don’t want,” Hyman says. “We don’t want it, period.” The developers, Pennhurst Holdings, hit a major roadblock in May, as local officials rejected their datacenter plan amid sweeping opposition from residents. But they plan to appeal the decision in court. The proposed datacenter – and many similar projects planned across Pennsylvania – has embroiled state lawmakers trying to hit pause in a fight with Josh Shapiro, their Democratic governor and a presidential hopeful who wants to make Pennsylvania a leader in the nation’s fight for AI supremacy. Pennsylvania’s datacenters have scrambled politics as usual: a liberal governor is pushing growth, as Donald Trump has, while the governor’s conservative challenger is more closely aligned with a Democratic state senator’s proposal to restrict new business. Katie Muth, a Democratic state senator whose district includes East Vincent, introduced a bipartisan moratorium bill on new construction for large datacenters on 29 May, whereas Shapiro is courting major out-of-state investment. Community pushback is so intense that Shapiro is taking note though, and on 27 May he unveiled new voluntary guidelines he says will address residents’ accountability concerns, incentivizing developers to build responsibly. Meanwhile, Stacy Garrity, the state treasurer and Shapiro’s Republican opponent in the governor’s race, has staked out a more aggressive position on regulating AI by calling for a “total data center pause” last month. Garrity has more recently clarified that she does not advocate a full moratorium covering a set period of time, however, instead suggesting a loosely defined pause for local stakeholders to consider the impact of datacenters. While Garrity advocated for putting datacenters in rural communities as recently as January, she characterized Shapiro’s guidelines as “damage control” after he “rolled out the red carpet” for massive projects – a claim his office has dismissed as “desperate” because of Garrity’s “long record of supporting completely unregulated datacenter development”.

How the fight over US datacenters is scrambling this state’s politics: ‘We don’t want it’
Europe
BBC Business

Struggling Pizza Hut chain to be sold for $2.7bn

Yum! Brands is selling its struggling Pizza Hut chain in a deal worth $2.7bn (£2bn), the company has announced. Private equity firm LongRange Capital will acquire the brand outside of mainland China for $1.5bn, while Yum China Holdings will buy the mainland China operations for $1.2bn. "Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry," said Yum! Brands chief executive Chris Turner. The decision comes after a prolonged period of difficulty for Pizza Hut - a name synonymous with casual dining in America. Yum! Brands first revealed it was exploring a potential sale in November 2025, following several quarters of declining US same-stores. The American market is highly critical for the chain, as it makes up 40% of its total international sales. The drop in performance has been driven by intensifying competition from revival chains like Domino's, Papa John's, and Little Caesars. At a time when inflation remains sticky, these rivals have aggressively discounted their offerings to win over price-sensitive consumers. Moreover, mid-sized regional chains have also chipped away at the market. These smaller, more nimble fast-food competitors have adapted faster to changing consumer habits in the so-called "pizza wars". At the same time, the rapid rise of third-party delivery apps has flooded the market with alternative options, diluting Pizza Hut's historic dominance. Pizza Hut was founded in 1958, the brainchild of two brothers in Wichita, Kansas. It was bought by PepsiCo in 1977 and then spun off into what became Yum! Brands in 1997. "Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!'s history," said Turner. Yum! bought Pizza Hut's UK operations in October last year after DC London Pie, the firm running the dine-in restaurants, fell into administration.

Struggling Pizza Hut chain to be sold for $2.7bn
Europe
The Guardian

SpaceX overtakes Amazon as world’s fifth most valuable company

SpaceX staff and guests celebrate the company’s IPO in New York on Friday. Photograph: Brendan McDermid/ReutersView image in fullscreenSpaceX staff and guests celebrate the company’s IPO in New York on Friday. Photograph: Brendan McDermid/ReutersSpaceXSpaceX overtakes Amazon as world’s fifth most valuable companyValue of Elon Musk’s firm at one point rose to $2.97tn days after its IPO following purchase of AI coding startup Cursor Elon Musk’s SpaceX has overtaken Amazon as the world’s fifth-most valuable company days after its stock market debut. The milestone came as it agreed to buy the startup behind the AI-powered coding app Cursor for $60bn (£44bn), in an attempt to capitalise on the technology’s success as a coding tool. SpaceX is the parent of Musk’s AI business, xAI, which will be able to boost its capabilities in an area – AI systems writing code – that has proven to be a strong commercial success for Anthropic, the rival company behind the Claude chatbot. The group also includes the SpaceX rocket company, social media platform X and the satellite maker and internet service provider Starlink, which is the only profitable part of the business. The news of the Cursor acquisition was announced as SpaceX passed Amazon in market capitalisation, an important measure of value for a publicly listed company. SpaceX shares rose by 13% on opening on the Nasdaq index on Tuesday. At one point, its valuation rose as high as $2.97tn, leaping over Amazon’s $2.65tn to become the world’s fifth most valuable company by market value. Its shares later eased back to about 5% up at the close and a valuation just ahead of the e-commerce company of $2.66tn. SpaceX lost $4.9bn in 2025 on revenues of $18.7bn, while Amazon posted revenues of $717bn and net income – a US measure of profit – of $78bn. SpaceX floated at $135 a share on Friday and its shares have risen by approximately 50% since. The float made Musk, SpaceX’s founder and chief executive, the world’s first trillionaire with a fortune of $1.1tn, according to Forbes. It reckons the 54-year-old is now worth $1.3tn. The company had been circling Cursor, owned by the San Francisco-based Anysphere, for months. It said in April it had secured an option to ‌either buy Cursor for $60bn later this year or pay $10bn for a partnership. View image in fullscreenHedge fund billionaire Bill Ackman said the strong value of SpaceX’s stock was another boon for the company because it would require fewer company shares to pull off large acquisitions such as Anysphere. Photograph: Kristoffer Tripplaar/AlamyHarrison Rolfes, an analyst at the financial research firm PitchBook, said the deal would not “close the gap” between xAI’s models and those developed by Anthropic and OpenAI. However, he said it made sense to gain access to Cursor’s more than 1 million users. “Owning the tool that professional developers already trust daily is a faster path to enterprise AI revenue than winning the model race,” he said.

SpaceX overtakes Amazon as world’s fifth most valuable company
Europe
BBC Business

Japan raids ice cream giants over price-fixing allegations

Japan's competition watchdog has raided some of the country's biggest ice cream makers for allegedly forming a cartel to raise the price of their products. Some of the firms, including Meiji and Pocky maker Ezaki Glico, said this week that they have been subject to an "on-site inspection" by the Japan Fair Trade Commission (JFTC) over suspicions that they fixed the prices of frozen desserts. The companies are suspected of inflating ice cream prices beyond increases in the cost of raw materials, even as the country faces a hot summer with record high temperatures. The six firms that were raided on Tuesday were Meiji, Morinaga Milk Industry, Lotte, Morinaga, Ezaki Glico and Akagi Nyugyo. The firms improperly raised prices of popular desserts "several times by 5-10% over the years", according to Japanese broadcaster NHK, citing anonymous sources. The brands distribute their products wholesale to supermarkets and convenience stores across Japan. Morinaga Milk, Glico and Meiji said in separate statements that they would co-operate with the authorities' investigation. "As reported by some media outlets today, our company has been subject to an on-site inspection by the Fair Trade Commission on suspicion of violating the Antimonopoly Act in connection with the setting of sales prices for ice cream and other products," Meiji said. "We take this inspection very seriously and will cooperate fully with the Fair Trade Commission's investigation," the Hello Panda snack maker wrote. Glico said: "We will respond in good faith to the Fair Trade Commission's investigation and cooperate fully." Earlier this year, Japan unveiled a new name for days that reach 40C (104F) or above, after the country experienced its hottest summer on record in 2025. The term - kokushobi - has been translated as "cruelly hot", "brutally hot" or "severely hot" day by Japanese and international media.

Japan raids ice cream giants over price-fixing allegations
North America
CNBC Economy

Energy prices take center stage as the ECB prepares to decide on rates

The European Central Bank is expected to hike interest rates on Thursday, as policymakers address the threat of second-round inflation effects amid elevated energy prices. Unlike the Fed, the ECB has a single mandate — keeping inflation close to a target of 2% — and recent data shows an uptick in both its headline and core readings. Headline euro zone inflation rose to 3.2% in April as energy prices soared 10.9% year-on-year. The euro zone is a major energy importer and the bloc is particularly vulnerable to the surge in oil prices sparked by the Iran war. But core inflation also rose to 2.5% in April, primarily driven by higher services costs. That's a major concern for the ECB as this could be the first signs of second-round effects. The ECB is also concerned that tighter monetary policy could push the euro zone from feeble growth to outright recession. Nevertheless, the bank's Governing Council is expected to hike its key deposit rate by 25 basis points to 2.25%. Market watchers will also be keeping a close eye on the ECB's projections for inflation and economic growth. The market is pricing in three rate hikes for the rest of the year. "Compared with March, we expect ECB staff to mark down the growth projections for 2026-27 and raise both headline and core inflation projections, reflecting a more persistent energy shock and stronger indirect effects into prices," Sven Jari Stehn, chief European economist at Goldman Sachs, wrote in a note at the end of May. "Our energy price index—the average of oil and gas—is up about 12% through the projection horizon since the March meeting." "The core inflation forecasts will be more interesting, especially for 2027," wrote Anatoli Annenkov, senior European economist at Société Générale in a note from May. "This forecast will tell us a lot about the ECB staff's confidence in coming second-round effects, especially taking into account the weakening activity data since March." "We expect the ECB to keep rates market pricing relatively unchanged," said Deutsche Bank Securities Director Mark Wall in research published early this month. "Interpreting June as a one-off hike won't suit the ECB." Get this delivered to your inbox, and more info about our products and services.

Energy prices take center stage as the ECB prepares to decide on rates
Europe
BBC Business

'It's a unique scenario' - Inside Lidl's first ever pub

When you enter The Middle Ale, it may look like a regular pub, but the reality is far from that. Owned by the supermarket chain Lidl, this public house is a 'world first' for the brand. With the walls painted in bright primary colours and the shelves stacked with produce, the venture may look like a gimmick, but underneath that shine the brand is making a stark statement about Northern Ireland's licensing laws. The journey from inception to opening day was a long one involving courts, hurdles, and a creative solution to an old problem. In Northern Ireland, supermarkets must overcome two hurdles before they can start to sell alcohol. They first must buy a licence which has been "surrendered" by another business, such as a pub which is closing. This "surrender principle" acts as a strict cap on the number of premises which can sell alcohol. Secondly, the supermarket must pass the "inadequacy" test in which it has to show the number of existing licensed premises in an area is inadequate to meet the needs of the public. Lidl could not pass the inadequacy test for a standard off-licence but was able to pass the test for a pub as two bars close to the supermarket have closed in recent years. Named The Middle Ale in a play on the chain's famous middle aisle, the company is adamant this is not a stunt. "The challenges surrounding the liquor licensing laws in Northern Ireland, they're well known and long documented," Gordon Cruikshanks, regional managing director for Lidl Northern Ireland said, adding that it's been "a long wait". When asked if the licensing laws should be updated, he said it was "for others to continue to discuss".

'It's a unique scenario' - Inside Lidl's first ever pub
Asia
The Hindu BusinessLine

US-Iran talks set for Sunday in Switzerland as Tehran shuts Strait of Hormuz amid Lebanon fighting

Iran has announced the closure of the Strait of Hormuz, accusing the US and Israel of violating commitments linked to an interim agreement. The move came as Israeli strikes in southern Lebanon killed at least 16 people, increasing pressure on a fragile ceasefire involving Israel and Hezbollah. (a file photo) | Photo Credit: Amirhosein Khorgooi/ISNA Iran dealt two quick blows to the interim agreement with the United States on Saturday, angered by Israel’s continued attacks in Lebanon, saying it had closed the Strait of Hormuz and also announcing that while its negotiators were going to Switzerland for talks, not much is likely to happen there. Key mediator Pakistan, meanwhile, said the technical-level talks will begin on Sunday in Bürgenstock, Switzerland, with Qatari mediators also participating. In Tehran’s first salvo, Iran’s joint military command said the strait had been closed, citing the Israeli attacks and US “bad faith” and “clear breach of its commitments” by failing to end the war. Its statement on state television warned that “if the aggression continues, subsequent steps have been planned.” Shortly after that, the state broadcaster announced that Iran’s negotiating team was heading to Switzerland “in the coming minutes,” a trip that had been originally planned for Friday. Foreign Ministry spokesperson Esmail Bagahei, however, signalled that little might happen until Iran feels the US is living up to the deal. “This trip is therefore about demanding that the other side fulfil its obligations,” he said, adding that negotiations toward a final agreement will begin only once key commitments are upheld. If they are not, he said, “then the memorandum of understanding as a whole will be jeopardised.” In Washington, Vice President JD Vance confirmed on Saturday that the top US negotiators — Jared Kushner and Steve Witkoff — were already in Switzerland and have been working through technical details of the anticipated negotiations on Iran’s nuclear program. Vance told Fox News that he expects to leave for Switzerland “sometime the next couple of days” but acknowledged that “it’s always a delicate coordination dance.” Meanwhile, the global economy braced for more uncertainty. Ships had begun transiting the strait after the interim US-Iran agreement was signed earlier in the week, a milestone that has left plenty of questions unanswered. Earlier Saturday, Israeli strikes on southern Lebanon killed at least 16 people, including two children, hours after reports emerged of a ceasefire agreement there. Seven people remained trapped under the rubble after the strikes hit the southern city of Nabatiyeh and nearby villages, Lebanon’s National News Agency said. The death toll in the latest war between Israel and Hezbollah has now surpassed 4,000, Lebanon’s health ministry later announced. Mediators were scrambling to halt the fighting between Israel and the militant Hezbollah group after a heavy exchange on Friday killed at least 47 people in Lebanon and four Israeli soldiers. An Israeli military official said Hezbollah had fired more than 50 projectiles at Israeli forces in southern Lebanon overnight. The official spoke anonymously in line with regulations. Israel’s army said it struck dozens of Hezbollah targets and militants in southern Lebanon, including Hezbollah command centres. On Friday, the Israeli ambassador to Washington, Yechiel Leiter, said Israel “remains firmly committed to an immediate ceasefire” if Hezbollah honours the agreement and ceases hostilities.

US-Iran talks set for Sunday in Switzerland as Tehran shuts Strait of Hormuz amid Lebanon fighting
Europe
The Guardian

US student debt repayment system is being overhauled – here’s what to know

Northeastern students at graduation at the TD Garden in Boston. Photograph: Suzanne Kreiter/Boston Globe via Getty ImagesView image in fullscreenNortheastern students at graduation at the TD Garden in Boston. Photograph: Suzanne Kreiter/Boston Globe via Getty ImagesBusinessExplainerUS student debt repayment system is being overhauled – here’s what to knowBorrowers face stricter payment timelines after Biden-era Save repayment plan was ended by Donald Trump The American student loan repayment system is set to undergo a significant overhaul next month, changing the way millions of borrowers pay off their debt. The series of changes, which take effect 1 July, are a result of the Trump administration’s One Big Beautiful Bill Act that was signed last summer and a recent court ruling that ordered the end of the Biden-era Save repayment plan. Borrowers will be facing stricter payment timelines and less forgiveness, what will be the latest in a series of massive changes to the student loan system in just a few years. “This is impacting, in my opinion, every single student loan borrower in one way or another – even if you don’t have to make a change in your loans, just the confusion alone,” said Natalia Abrams, the president of the Student Debt Crisis Center. “I’ve worked in this space for more than 15 years, and I’ve never seen it this bad, and I’ve never seen it change this much, this frequently.” Here’s a rundown of how the repayment system is changing and how it is affecting students. More than 7 million Americans are enrolled in the Save plan, an income-based repayment plan launched in 2023 by the Biden administration. The program was created with the goal of drastically reducing undergraduate loans, eliminating monthly payments for some, and offering early forgiveness for borrowers with low-balances. After a federal appeals court ruling in March, the Save plan will be official dismantled 1 July. The ruling came after Republican attorneys general across the country challenged the plan, putting monthly repayments on hold for years. On 1 July, monthly repayments will start again and Save borrowers will soon have to apply for a different payment plan. Once the Save plan officially ends, borrowers will have 90 days tochoose a different repayment plan. Borrowers with loans issued before 1 July 2026 – and who do not plan to take out more loans – will retain access to several existing income-driven payment and fixed-income plans. Compared to plans offered under the Biden administration, these plans push borrowers to pay back their loans more quickly and include less forgiveness options.

US student debt repayment system is being overhauled – here’s what to know
North America
CNBC Economy

The May inflation numbers are due out Wednesday morning. Here's what to expect

Inflation numbers out Wednesday are expected to cross another unpleasant threshold as the cost of living continues to climb for U.S. consumers. If the Wall Street consensus is correct, the consumer price index is expected to show inflation running at a 4.2% annual rate off an expected 0.5% monthly gain in May. That would mark the first time the CPI has passed 4% since May 2023 and would be the highest reading since April of that year. Of course, much of the rise in the headline number, which was at just 2.4% a year ago, can be attributed to the surge in energy costs resulting from the Iran war. However, even core prices, which exclude food and energy, are projected to post a 2.9% annual reading after rising 0.3% in May, according to Dow Jones. Worries are accelerating that the burst of inflation is broadening, as the jump in oil prices starts to spread through the economy and raise expectations that inflation isn't dissipating anytime soon. "It's not just an oil story, it's a money supply story, and it's increasingly an AI story," said Liz Ann Sonders, chief investment strategist at Charles Schwab. "So this is a broader inflation problem than just energy, meaning that we probably still have somewhat sticky inflation." Sonders added that "a lot of this skittishness" from investors is about inflation, so "something worse than expected probably doesn't sit well with the equity market." The Trump administration has made the case that inflation will come down quickly once the fighting in the Middle East settles down. However, Sonders advised against counting on that with so much damage already done to supply. "Even if there would be a quick resolution to the war, you probably wouldn't see oil prices come down to prior lows, because there's been so much disruption to production," she said. "That's not something that a switch can just be turned back on." Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

The May inflation numbers are due out Wednesday morning. Here's what to expect