Hedge fund borrowing exposes emerging markets to greater Iran war risk, says IMF

Emerging economies are at greater risk of higher interest rates and currency shocks resulting from the Iran war because of increased reliance on market investors such as hedge funds, the International Monetary Fund has warned.The IMF’s analysis shows that a cumulative $4tn flowed into emerging markets last year from outside the formal banking sector – including from hedge funds and investment funds.In a blogpost, IMF economists argue that this can bring benefits, but also risks, as these funds are more likely than traditional bank financing to be withdrawn suddenly in times of financial stress.“Market-based finance can help firms integrate into global value chains, a key driver of exports, by easing access to funding for trade, working capital, and other needs that increase their productive capacity,” it says.But it warns that these investments “tend to be more volatile than bank flows and are increasingly sensitive to global risk conditions”

Oil and gas crisis from Iran war worse than 1973, ​1979 and 2022 together, says IEA

The oil and ‌gas crisis triggered by the blockade of the strait of Hormuz is “more serious than the ones in 1973, ​1979 and 2022 together”, the head of the International Energy Agency (IEA) has said, as Donald Trump’s deadline for Iran to reopen the waterway approached on Tuesday.Fatih Birol, the executive director of the IEA, told ⁠Le Figaro newspaper that the impact of the Middle East conflict on the oil market was larger than the combined force of the twin shocks of the 1970s and the fallout from Russia’s invasion of Ukraine.He also said the countries most at risk were developing nations, ‌which ⁠would suffer from higher oil and gas prices, higher food prices and a general acceleration of inflation, while European countries, Japan and Australia would also feel an impact.Oil traded at more than $110 (£83) a barrel on Tuesday after Trump warned that a “whole civilization will die tonight” unless Iran made a deal.Brent crude, the international benchmark for oil prices, was up 0

‘There’s a lot of desperation’: skilled older workers turn to AI training to stay afloat

When Patrick Ciriello lost his job and couldn’t find work for nearly a year, his family’s foundation crumbled.“You hear about people who hit rock bottom,” Ciriello told the Guardian. “Well, I was there.”For most of his career, the 60-year-old with a master’s degree in information management designed software systems for banks, universities and pharmaceutical companies. But a series of economic shocks – the dot

Tech companies are cutting jobs and betting on AI. The payoff is far from guaranteed

AI experts say we’re living in an experiment that may fundamentally change the model of workSign up for the Breaking News US email to get newsletter alerts in your inboxHundreds of thousands of tech workers are facing a harsh reality. Their well-paying jobs are no longer safe. Now that artificial intelligence (AI) is here, their futures don’t look as bright as they did a decade ago.As US tech companies have ramped up investments in AI, they’ve slashed a staggering number of jobs. Microsoft cut 15,000 workers last year

Drone racing to drone strikes: have war and sport become indistinguishable?

The Trump administration’s pushing of the war in Iran reflects a sporting culture driven by clipped-up content, shameless tribalism and a lust for escalation Among the more surprising continuities of 2026 has been the visual kinship between the Winter Olympics and the US’s illegal and unprovoked war in Iran. High-speed camera drones were a highlight of TV coverage of the recent Games in Milano Cortina, bringing viewers within kissing distance of the action as Olympic athletes hurtled down the slopes and around the tracks in the skiing and sliding events. The incessant screech of the drones aside, the introduction of quadcopter-borne cameras felt like a real step forward in coverage of the winter sports, bringing a (literal) new perspective to events that had become, over recent decades, fairly static as a viewing experience.No sooner had the Olympics finished than aerial video was back on our screens – only the footage, in this case, was of a far darker variety. In place of the ludicrous hip flexibility of the slaloming skiers and the high-speed cornering of the monobobbers, for the past month our feeds have been flooded with satellite and drone imagery of the US military blowing Iranian aircraft, ships, vehicles, munitions buildings, and citizens to smithereens

The Breakdown | Mitchell’s Six Nations conundrum: who will be Red Roses’ next Abby Dow?

How do you solve a problem like replacing Abby Dow? Yes, it is a different take on the Sound of Music song but it is a fiendish question to answer. The Red Roses winger retired after the Rugby World Cup, leaving a try-scoring hole in the world champions’ squad, whose next task is to try to win their eighth straight Women’s Six Nations title. And so while Julie Andrews’ character realised she was not a problem after all, the England head coach, John Mitchell, is left with a selection headache before his team start their campaign against Ireland on Saturday.Dow scored 50 tries in 59 caps, with her lightning pace a key characteristic to her game. She retired to pursue a career in engineering and her boots are large ones to fill