Pound hits lowest since April as investors anticipate budget tax rises; markets hit by AI valuation jitters – as it happened

The pound has now dropped to $1.3064, a new six-month low, as City traders anticipate tax rises in this month’s budget.Sterling has lost more than 0.5% today, or around three-quarters of a cent, with analysts pointing to Rachel Reeves’s promise of an “iron clad” commitment to her fiscal rules, and her failure to rule out tax rises.Fiona Cincotta, senior market analyst at City Index, says:In a rare pre-budget speech, Reeves reiterated her commitment to budget goals and what many are considering as weaves, paving the way for more tax hikes and tough decisions in the Budget that would come close to breaking the party’s manifesto pledges

Gopichand Hinduja, head of Britain’s richest family, dies aged 85

Gopichand Hinduja, the billionaire head of Britain’s richest family, has died aged 85.Hinduja died on Tuesday in London after a long illness, a spokesperson said.The low-profile Hinduja family topped the Sunday Times Rich List this year with a collective net worth of £35.3bn, thanks to their sprawling business interests across banking, oil, real estate and entertainment.Gopichand Hinduja, nicknamed “GP”, co-chaired the family business with his older brother Srichand, who died in 2023

Experts find flaws in hundreds of tests that check AI safety and effectiveness

Experts have found weaknesses, some serious, in hundreds of tests used to check the safety and effectiveness of new artificial intelligence models being released into the world.Computer scientists from the British government’s AI Security Institute, and experts at universities including Stanford, Berkeley and Oxford, examined more than 440 benchmarks that provide an important safety net.They found flaws that “undermine the validity of the resulting claims”, that “almost all … have weaknesses in at least one area”, and resulting scores might be “irrelevant or even misleading”.Many of the benchmarks are used to evaluate the latest AI models released by the big technology companies, said the study’s lead author, Andrew Bean, a researcher at the Oxford Internet Institute.In the absence of nationwide AI regulation in the UK and US, benchmarks are used to check if new AIs are safe, align to human interests and achieve their claimed capabilities in reasoning, maths and coding

OpenAI signs $38bn cloud computing deal with Amazon

OpenAI has signed a $38bn (£29bn) deal to use Amazon infrastructure to operate its artificial intelligence products, as part of a more than $1tn spending spree on computing power.The agreement with Amazon Web Services means OpenAI will be able to use AWS datacentres, and the Nvidia chips inside them, immediately.Last week, OpenAI’s chief executive, Sam Altman, said his company had committed to spending $1.4tn on AI infrastructure, amid concerns over the sustainability of the boom in using and building datacentres. These are the central nervous systems of AI tools such as ChatGPT

WTA Finals tennis: Sabalenka fends off Pegula; Gauff beats ailing Paolini – as it happened

Defending champion Coco Gauff kept her hopes alive of reaching the knockout stages of the WTA Finals with victory over Jasmine Paolini.Defeat by fellow American Jessica Pegula in her opening group match in Riyadh had put Gauff in trouble but she eased to a 6-3, 6-2 win against Paolini.The Italian has been struggling with illness and again was unable to show her best level physically, with Gauff overcoming a wobble midway through the first set.The third seed said: “I’m really happy with how I played today, definitely a turnaround from my first match. It’s the beauty of this tournament, you have another chance to prove yourself

NFL trade deadline: Colts land All-Pro corner Gardner from Jets in stunner

The Indianapolis Colts have acquired two-time All-Pro cornerback Sauce Gardner from the New York Jets in a stunning trade ahead of Tuesday’s NFL deadline, according to multiple reports.In exchange, the Colts will send two first-round picks to New York, marking one of the most significant deals of the season. Gardner, the No 4 overall pick in the 2022 draft, has quickly established himself as one of the league’s premier defenders, earning All-Pro honors in each of his first two years.“New York it’s been real,” Gardner posted with a green heart emoji on X.New York it's been real💚The move comes just months after Gardner signed a four-year, $120