UK chooses Labour, Southgate stays conservative

After what appears to have been the most straightforward choice for voters in 25 years, Kier Starmer picked up the keys to number 10 becoming the 58th Prime Minister of the UK, after a landslide win for Labour. Despite vote share only increasing by 2% from 2019, huge drops in Conservative support meant that Labour seats doubled, giving them their largest majority since Blair in 1997.

A new dawn in the the political sphere, but more of the same for England in Germany. Southgate seemingly an undecided voter oversaw another laboured, conservative performance. Heroics from Bukayo Saka saved England from more Euro heartache, setting up a penalty shootout win and a semi-final on Wednesday night.

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PROJECT WATCH

☢️ Hinkley Point C preps to install first reactor, ‘heart’ of the power station. Read more

🚆 London Northwestern Railway plans to extend its service from London to Manchester following the cancellation of the northern leg of HS2. Read more

🔌 First UK hydrogen production trials start in South Wales. Read more

🌊 Three RWE site investigations start for Norfolk offshore wind. Read more

🏗️ Lendlease signs £450m contracts to upgrade UK army barracks as part of the Defence Estate Optimisation programme. Read more

ECONOMY & FINANCE

Election done, what now?
Keir Starmer, the UK's fresh-off-the-press Prime Minister, has taken over the reins at Number 10 amidst a sluggish economy and a few sceptics wondering where all the fairy dust went. Criticising the Conservatives for "14 years of economic failure," Starmer now faces the monumental task of getting Britain's cogs turning again – but without a single Hogwarts graduate in the cabinet.

The British economy has been as lively as a Sunday in February, with living standards stagnating since the Conservatives took the wheel in 2010. Starmer’s promises of action over platitudes came with a cautionary note: improvements will require patience. His predecessor, Rishi Sunak, left behind an economy recovering slower than a mature student keeping pace on freshers week, and expectations are grim this year with growth projected below 1%.

Starmer’s to-do list includes brightening the dull post-pandemic jobs market, which is more understaffed than a London pub on a Friday night. And let’s not even get started on the housing crisis or weak business investment. With public debt hovering near 100% of GDP and taxes at WWII highs, Starmer warns there's no quick fix – call it the 'Harry Potter Economy' if you will.

On the table is also easing trade barriers with the EU, but don’t hold your breath for a Brexit do-over. In short, Starmer’s grand plan is about steady, slow progress rather than radical reforms, something Goldman Sachs predicts will add a modest 0.1% growth each year in 2025 and 2026.

City analysts expect a boost in investment and UK confidence.
Keir Starmer’s stunning victory in Thursday’s general election could restore Britain’s reputation as a global safe haven, cheering up the pound, shares, and investment prospects at a time when political chaos is the new normal elsewhere.

Contrary to the Tories' predictions of economic apocalypse, City analysts believe a resounding Labour victory ensures stability for Britain in a world unravelling faster than the threads on your gran's old cardigan. With global market jitters triggered by everything from Liz Truss’s infamous mini-budget to the US elections, a strong Labour mandate might just be the financial tranquilliser we all need.

Despite Rishi Sunak’s scare tactics about a Labour ‘supermajority’ leading to intergenerational bankruptcy, City analysts are rolling their eyes and pointing to renewed global investment since Brexit turbulence and Trussonomics put a price premium on UK idiocy.

POLITICS

It’s a win for Keir Starmer’s Labour government! But, barely out of the gate they’re already facing pressure from the country's biggest union. Sharon Graham, the general secretary of Unite, has made it clear that Labour won't be getting a honeymoon period. Graham is demanding that Labour borrows to invest and uses only British steel for public sector projects.

Sam Carling of Labour, became the youngest ever MP at just 22 years old, and is already making headlines for his no-nonsense approach. During an interview on BBC Breakfast, Carling deftly batted away questions about his lack of life experience, arguing that age does not necessarily equate to competence. His confident performance has earned him praise and marked him as one to watch in the new political landscape.

Nigel Farage, ever the political maverick, has set his sights on steering Reform UK to new heights. Despite his party’s less-than-stellar showing in the recent election, Farage is undeterred. He plans to professionalize and democratize the party, promising to weed out any remaining bad apples. Farage's vision includes making significant inroads in upcoming elections, particularly targeting Welsh and Scottish seats, as well as county councils in England. His bold strategy suggests that Reform UK is far from a spent force and is gearing up for a serious political comeback.

Over in France, the far-right National Rally (RN) party, led by Marine Le Pen, is making waves. Despite not securing an outright majority, the party’s performance in the recent parliamentary elections has shattered long-standing taboos in French politics. The RN's success underscores a significant shift in voter sentiment, with many now viewing the party as a credible political force rather than an extremist outlier. This political earthquake is causing ripples across Europe, as the once-marginalized far-right continues to gain traction in various countries.

ACROSS THE POND

ConocoPhillips sues over Alaska drilling restrictions.
Environmentalists, look away now. ConocoPhillips is taking a swing at the Biden administration's drilling ban, aiming to keep their oil ventures alive in Alaska's National Petroleum Reserve. The lawsuit claims this regulatory sledgehammer violates federal law that mandates oil extraction in the area.

The legal spat challenges President Biden's decision to shield 10.6 million acres from drilling, calling it a conservation effort. But oil industry cheerleaders argue it's akin to transforming a reserve meant for crude oil into a sprawling wilderness retreat, which is hardly what Congress envisaged a century ago.

Environmentalists are raising a temporary toast, though, celebrating the protection of a diverse ecological landscape that's teeming with wildlife. Climate activists see the measure as a win for the planet, even as the oil industry cries foul over halted developments.

ConocoPhillips, holding substantial leases, including the 600 million-barrel Willow project, claims the regulation unlawfully hampers their operations. According to the company, the reserve holds an estimated 8.7 billion barrels of recoverable oil, making it a battleground for energy needs versus environmental preservation.

Biden vows to run again, despite mounting criticism.
Like your dog when the front door hasn’t closed properly, Biden is defiant in his stance that whatever you say, he will run.

Despite rising critiques from his own party about his age and mental clarity, the 81-year-old US President remains steadfast, declaring that only the “Lord Almighty” could compel him to bow out. A section of democrats are hoping that God may actually bless America and have a word.

Speaking in an interview with ABC’s George Stephanopoulos, Biden faced relentless questioning about his capacity to lead. Yet, he stood firm, insisting he was up to the task. Despite denying any issues, Biden’s health and mental agility have become focal points of concern with critics pointing to his recent debate performance, where he seemed frazzled and unprepared, as evidence of his decline.

Reasons given so far for his poor debate performance vs Trump below:

• A bad cold, from the White House press secretary.

• Jet lag from the trip two weeks prior, from Biden himself.

• Not feeling “that great” overall, from first lady Jill Biden.

• Overprepared and studied too hard, from other White House aides.

TECH

The internet is waging an intense battle against AI bots, with companies taking major steps to stop scrapers from grabbing their text. Elon Musk's X (formerly Twitter in case you forgot) and Reddit are tightening rate limits to combat these bots, while Cloudflare introduces tools to block them entirely, declaring "AIndependence." Legal skirmishes are heating up too, with The New York Times suing OpenAI and Microsoft for allegedly infringing on copyrights by using their articles for AI training.

In a dramatic twist worthy of a Netflix special, a hacker reportedly breached OpenAI's internal systems last year, stealing details about the design of its AI products. Though no customer data was compromised, this incident underscores the growing cybersecurity threats facing AI companies. Experts predict more of these digital heists – because why hack a bank when you can hack the future?

In the tech wonderland of South Korea, Samsung Electronics is experiencing a significant AI boom. The tech giant expects a 15-fold profit increase for Q2 2024, thanks to the skyrocketing demand for advanced AI chips. This surge mirrors the success of Nvidia, which recently held the title of the world's most valuable company, albeit briefly. Samsung's shares are up, and so is our envy of their profit margins.

From its humble beginnings as an online bookseller, Amazon is celebrating its 30th anniversary as a two-trillion-dollar tech behemoth. However, it now faces stiff competition in the AI space from rivals like Google and Microsoft. In a notable move, Jeff Bezos plans to sell nearly five billion dollars worth of Amazon shares, signalling a shift in his involvement with the company. Bezos stepping back? Maybe he's just giving us all a head start.

WORLD

In a bid to dominate the Southeast Asian market, Chinese automaker BYD has opened its first electric vehicle plant in Thailand. This new factory, which can churn out 150,000 vehicles a year, is part of BYD’s ambitious expansion strategy, aiming to tackle markets in the US and Europe despite increasing tariffs. Their EVs, like the Dolphin model, promise impressive range and are already seeing brisk sales. It’s a move as bold as switching from Marmite to Nutella—risky but potentially rewarding but still nutty nonetheless.

Less successfully, Chinese startup Space Pioneer accidentally launched a rocket that promptly exploded. During a test, the Tianlong-3 rocket decided it was time to shine, detached from its launchpad, and took an unscheduled trip skywards before ending in a spectacular explosion. No one was hurt, thankfully, except maybe a few egos. The company’s goal to rival SpaceX’s Falcon 9 now faces a bit of a delay.

Over at NASA, four volunteers emerged from a simulated Mars habitat after 378 days. Yes, they’ve been pretending to live on Mars longer than it took for England to admit VAR might not be perfect. This mission is part of NASA’s effects of long-term isolation and resource limitations study. The team grew veggies, endured communication delays with Earth, and probably argued over who had to take out the recycling. Two more of these Mars staycations are planned for 2025 and 2027. Here’s hoping they remembered to pack the tea and The Teapot.

Cuppa Chat Cheat Sheet

🚨🇷🇴 Controversial influencer Andrew Tate and his brother Tristan can now leave Romania but not the EU, as ruled by a Bucharest court. They face charges of human trafficking, rape, and forming a criminal gang, which they deny.

🚴‍♂️💋 French cyclist Julien Bernard was fined 200 Swiss francs by the UCI for kissing his wife during a Tour de France time trial. Bernard apologised for the "unseemly behaviour" but said he would relive the moment every day.

🎬🤼‍♂️ John Cena, famed actor and wrestler, has announced his retirement from WWE with his farewell tour ending in 2025. Cena, a 16-time world champion, expressed gratitude to fans during the WWE Money in the Bank event in Canada.

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