Time to wrap up…

One of Britain’s steelworks is to come into public ownership after the government said it would take over Yorkshire-based Speciality Steel UK (SSUK).

Jonathan Reynolds, the business secretary, said officials would “work towards” acquiring the company to protect the jobs of its 1,300 workers in Rotherham, Stocksbridge and Brinsworth in South Yorkshire and Wednesbury in the West Midlands.

The insolvent steelmaker, formerly part of the tycoon Sanjeev Gupta’s industrial empire, fell into administration last year and its day-to-day operations have since been run by the government’s official receiver.

The Norwegian steel startup Blastr Green Steel had been in talks to buy SSUK, but hopes had faded over the summer for a private sector takeover after a deadline to finalise a deal passed in June.

AI-linked stocks have fallen across the world today, after leading industry figures backed a call from the head of Anthropic for a slowdown.

The tech-heavy Nasdaq index dropped 0.8% on Monday, as investors sold off US chip and memory stocks. Semiconductor designer Nvidia – the world’s most valuable company – shed 3.3% on the open, while Advanced Micro Devices (AMD), Micron Technology and Sandisk slumped by 5.6%, 6% and 5% respectively.

Donald Trump, though, dismissed calls to increase controls on AI as a “sick conspiracy”, as stocks linked to the technology slumped after appeals from leading developers on the weekend for the industry to slow down.

Oil prices have climbed above $108 a barrel after a series of drone attacks forced Saudi Arabia to close its east-west crude pipeline.

The move pushed up government borrowing costs to new multi-year highs, as investors anticipated central banks would hike interest rates in response.

The former hedge fund boss Crispin Odey has lost a legal challenge to overturn his lifetime ban from the City for trying to “frustrate” investigations into sexual harassment allegations against him.

Britain’s blue-chip stock index has ended the day higher, helped by the AI anxiety.

Companies seen as vulnerable to AI disruption led the risers in London, with software firm Sage (+5.2%) and data analytics firm Relx (+5.1%) top of the pile.

AJ Bell head of financial analysis Danni Hewson says:

“For London’s FTSE 100, today was another day when the lack of tech stocks was a boon. Investors rotated into defensive stocks in a bid to ride out current volatility.

“With the oil price staging its own drama as the price of Brent crude edged past $108 a barrel, the impact on consumers is tough to ignore. Petrol prices in the UK have hit levels not seen since 2022, and today’s hikes suggest further pain at the pump is on its way.

“The impact on consumers will be front of mind for the Bank of England’s MPC members when they meet on Thursday. Whilst a hike this week still seems unlikely, market expectation that there could be a shift has jumped to 40% today.”

Blastr Green Steel are not happy that they have been outflanked by the UK government in their pursuit of Speciality Steel.

A Blastr Green Steel spokesperson said:

“We are disappointed by the Government’s decision today concerning Speciality Steel UK, and we were not informed in advance.

Over the course of several months, we have advanced our plans for a private sector solution to acquire SSUK – and were today on site in South Yorkshire with investors and strategic partners. We have a fully-funded proposal – at no cost to the British taxpayer – that is ready to complete within 12 weeks.”

The head of the European Central Bank has warned that Europe risks being locked out of the AI revolution.

Speaking in Vienna, Christine Lagarde warned that Europe was lagging behind in the creation of AI breakthroughs, saying:

Last year the United States produced 59 notable AI models and China produced 35. France and the United Kingdom produced one each^. Along the rest of the AI value chain, the picture is the same: the United States hosts three-quarters of the world’s AI computing capacity; Europe hosts 5%.

Lagarde explains that many European firms have been put off from using AI models developed overseas because of data protection concerns.

And she then warns that Europe could face massive disruption if it was reliant on a foreign AI service which could potentially cut the continent off, saying:

With AI, the loss would be of a different kind. Within a few years it will be screening goods at the border, deciding which tax returns are audited, dispatching trains, watching patients on wards and clearing payments at banks. A withdrawal of access, or a change in its terms, would then reach every sector at once.

Business secretary Jonathan Reynolds has insisted there is “nothing ideological” about the decision to acquire Speciality Steel UK after being questioned about the plan in the House of Commons.

Reynolds told MPs that the main barrier to a viable private sector buyer of Speciality Steel UK is “risk” and a “legacy of neglect” – which is why he plans to step in and buy the company instead.

Reynolds says:

What is the barrier to a private sector solution? Effectively, it’s risk.

“The fact that this was left so long without activity from the Conservative government, that the workforce haven’t been making steel.

“The products, the customers, therefore, are in a position where that is a big, substantial challenge for any private sector entity to take on.

“I think the state, if we do end up with a public ownership position, is better able to take that on. But it is the legacy of neglect that has been the barrier.”

Newsflash: The UK government has decided to acquire the country’s third-largest steel producer.

The Business Secretary Jonathan Reynolds has announced the Government will “work towards” the public acquisition of Speciality Steel UK (SSUK), after ministers decided they could not support its sale to Norwegian steel startup Blastr Green Steel.

SSUK has been in liquidation since last year, and was part of Sanjeev Gupta’s Liberty Steel before its recent collapse.

The company is an important part of the UK steel sector as it can make steel for use in the auto, aero and defence sectors.

According to the government, SSUK’s four sites support over 1,300 jobs in Rotherham, Stocksbridge, Brinsworth and Wednesbury.

Reynolds is stepping in after deciding Blastr’s proposal could not provide long-term stability, certainty and value for money.

Reynolds says:

“We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default.

“Working towards public acquisition will keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites, which could play a vital role in the future of the growth-driving sectors in our Industrial Strategy, including defence and advanced manufacturing.

“ I am determined that we take the time to properly assess the opportunities available here and make decisions that support growth, jobs and Britain’s industrial future.”

There are worrying signs in the bond market today too.

The yield, or interest rate, on US 10-year Treasury bonds has risen over 5% for the highest level since October 2023.

That follows the jump in the oil price today – Brent crude is now up 4.5% – and expectations that the US Federal Reserve will raise interest rates on Wednesday.

UK bond yields are rising too – with the yield on 10-year British gilts up 7 basis points (0.07 of a percentage point) to 5.4% for the first time since 2008.

Donald Trump has hit out at calls for a slowdown in AI development, claiming that there is a “sick conspiracy” against artificial intelligence and data centres.

In a punchy post on Truth Social, Trump posts (with typical modesty):

The only control or “guardrails” that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!

That rather indicates the White House will not be backing a slowdown in AI development, despite calls for it in recent days from the major US AI companies.

Trump to goes on to claim that his administration has reined in Anthropic’s Dario Amodei, writing:

The Trump Administration has stopped AI “people” from doing bad, or potentially bad, “things,“ like Dario (Anthropic!), who is now pretending to be a “perfect little angel” - and we will continue to do so! We already have tremendous CRIMINAL and REGULATORY power over these companies! There is a SICK conspiracy going on against AI and Data Centers, and the only one that is happy about it is China. WHOEVER WINS AI, WINS! We are leading China, and all others, and will continue to do so. Conspiracy Theorists, Treasonists, Traitors, and Leakers, BEWARE! Thank you for your attention to this matter! President DONALD J. TRUMP

Fact check: Anthropic and the White House did fall out earlier this year, when the AI company refused to ethical guidelines on its AI systems despite the threat of severe consequences.

Back in the UK seaside resort of Brighton, the TUC is expected to pass a motion at its annual congress this afternoon promising to campaign against the Labour party’s promise of cutting the costs of business regulation by 25%.

It was tabled by the Prospect union, which has members in watchdogs including the Health and Safety Executive and the Environment Agency.

Prospect’s general secretary Mike Clancy told the Guardian it was a mistake to think of such bodies as barriers to economic growth, warning:

“Regulators have been starved of resources, or constrained by public sector pay constraints - and consequently, they become a bottleneck, not because of the regulations, but because of the resources.”

Clancy added the government is “barking up the wrong tree” with the 25% promise, which could even be “dangerous,” if it results in important regulation being cut back for the sake of an “arbitrary” target.

Wall Street’s chipmakers are among the big fallers in early trading.

ARM Holdings’ shares are down 7.5%, as are rival Intel, while Micron are down 7.1%.

Technology stocks are dropping on Wall Street at the start of trading, as calls from top AI CEOs for a slowdown in development worries investors.

The Nasdaq share index has fallen by 1.2% at the start of trading, as traders respond to Anthropic CEO Dario Amodei’s proposal to slow down the technology’s advancement to ensure public safety.

Investors are closely watching to see if companies follow through on proposals to slow down the pace of AI development for safety reasons, says Stephen Coltman, head of macro at 21shares.

He adds:

Such a decision would have a substantial macroeconomic impact given the outsized importance of the tech sector and AI related investment to the broader economy at the moment.

Hedge fund manager Crispin Odey has lost his appeal against a ban from the UK financial services industry.

Odey had appealed against the decision by the Financial Conduct Authority, which ruled in 2025 that Odey had shown “reckless disregard” for the governance of his hedge fund, and that he was “not a fit and proper person to perform any function related to regulated activities”.

Today, the Upper Tribunal rejected his appeal.

According to the FCA, the Tribunal fully upheld the regulator’s allegations against Odey.

Therese Chambers, executive director of enforcement and market oversight at the FCA, said:

“Mr Odey clearly thought he could act with impunity. He twice sacked those tasked with protecting female employees from his inappropriate behaviour when they tried to hold him to account. He felt the rules shouldn’t apply to him and acted to save his own skin.

“During the hearing he reinvented history, painted himself as a victim and displayed no contrition. That arrogant entitlement and the resulting complete disregard for proper governance means Mr Odey is unfit to work in financial services.”

The FCA had proposed to fine Odey £1.83m alongside the ban, but the Tribunal decided to reduce this to £1.53m.

Motor fuel prices across the UK have hit their highest level since the Iran war began, according to motoring body the RAC.

This follows the recent rise in oil prices, which are being passed onto customers through higher prices at the pumps.

RAC head of policy Simon Williams explains:

“Fuel prices hit new Iran War highs on Monday with petrol climbing 169.68p and diesel hitting 191.68p, surpassing Sunday’s petrol high of 169.52p and the diesel high of 191.54p set on 15 April. This takes the cost of filling up a 55-litre family car with unleaded to over £93 and diesel to more than £105.

“Both fuels are now at prices last seen in early August 2022, just a few months after the start of the Ukraine War, following price rises of 8p a litre since the start of September. And with oil well over $100 a barrel, there’s no end in sight to high pump prices and the pain it brings to drivers who depend on their vehicles. In fact, the average price of diesel may be on the way to overtaking the record high of 199.05p set on 25 June 2022. Petrol, however, is still a long way from its all-time record of 191.53p on 3 July 2022.”

China‘s Ministry of Foreign Affairs has criticised the call from the head of Anthropic for a global slowdown on AI development.

Ministry spokesperson Guo Jiakun told a press conference:

“Fearmongering, confrontation and vicious competition will only disrupt the process of global AI governance which serves no one’s interest.”

In another sign of Beijing’s position, China’s state security minister Chen Yixin wrote in a government outlet on Sunday that advanced U.S. models such as Anthropic’s Mythos and OpenAI’s GPT-5.5-Cyber could pose serious risks to China’s critical information ​infrastructure, and called for a comprehensive strengthening of AI security.

UK government borrowing costs are hitting new multi-year highs this morning, as the rising oil pride fuels inflation worries.

Reuters has the details:

• The 30-year gilt yield touched its highest level since March 1998 according to LSEG data at 5.951% and last stood 2 basis points up on the day.

• The 5-year yield rose to its highest since July 2008 and was up 6 basis points on the day.

These moves are bad news for chancellor John Healey, as they eat into his fiscal headroom – the cushion that helps the government meet its borrowing rules.

Europe’s technology sector has hit a six-week low this morning, as traders react to calls from the AI industry for a slowdown.

The Stoxx Europe 600 Technology index has dropped by 2.3% so far today, to its lowest since 31 July, after Anthropic’s CEO called for the AI industry to “slow down” for safety reasons.

Soitec, the French semiconductor materials company, has dropped by 12.8% and is leading the sell-off, followed by Germany’s Aixtron (-9.3%), whose systems are used to make microchips.

Semiconductor manufacturer Infinion are down 7.45%.

Russ Mould, investment director at AJ Bell, says fears about AI becoming too powerful are now hurting the tech sector:

Previously a hot investment area with investors clambering to own any stock linked to the AI boom, now it looks like AI’s strengths could backfire. There are growing fears that AI is advancing at an extraordinary pace and there need to be greater safeguards and controls in place.

“Futures prices imply that tech stocks are set for a bad day on the market. The tech-heavy Nasdaq index is expected to fall 1.4% when it opens for trading on Monday. In the UK, FTSE 100 tech fund Polar Capital Technology Trust was one of the biggest fallers in the blue-chip index.

“An AI-related sell-off doesn’t create the best backdrop for Anthropic’s planned IPO, which is already rumoured to be delayed by a month to November.”

Here’s our news story on the drop in AI company share prices today:

The high price of oil has pushed Latvian airline airBaltic to seek bankrupty protection.

AirBaltic filed for Chapter 11 bankruptcy protection in New York this morning, as it tries to restructure its hefty debts.

AirBaltic, which is majority owned by the Latvian government, said it was using Chapter 11 to restructure its finances and raise capital while continuing day-to-day operations.

The process will not affect passengers and operations will continue as normal, airBaltic says.

Andrejs Martinovs, chairman of the supervisory board of airBaltic, says the airline hopes to create a “financially stronger airBaltic” with lower debts, explaining:

“We have carefully assessed the restructuring options available to the company, with one priority in focus – to give airBaltic the best possible basis to continue operating and to build a sustainable financial structure.

Under court supervision and with protection from creditor claims, this process provides a clear framework and timetable for reaching agreements with creditors, including aircraft lessors and other stakeholders. At the same time, it allows the company to continue operating

There’s also turbulence in the energy markets again this morning, as the Middle East conflict continues to rage.

European gas prices have jumped by over 5% in early trading, pushing the month-ahead UK gas contract up to 209.50p per therm, its highest since late December 2022.

Dutch tech giant ASML’s shares have slumped by around 4.5% in early trading, as traders react to last weekend’s calls for an AI slowdown.

ASML is the world’s leading supplier of photolithography systems – high-tech machines which use light to print microscopic circuit patterns onto silicon wafers – to the semiconductor industry.

Its machines have been hot property as chipmakers try to meet the insatiable appetite for high-powered chips to run data centres.

Companies threatened by the march of AI are seeing their share prices rise this morning!

RELX, the analytics group, are up 4.2% and leading the FTSE 100 risers. Earlier this year its shares tumbled after the Claude chatbot added new data and automation tools.

Advertising group WPP has gained 3.1% this morning.

The tech-focused Nasdaq stock index is forecast to drop by more than 1% when trading begins in New York this afternoon.

Chris Beauchamp, chief market analyst at investing and trading platform IG, explains:

“Suddenly the headlong rush to develop AI seems to have stopped in its tracks.

With both Altman and Amodei warning of the risks of uncontrolled development, the mood music appears to be shifting. For markets this raises the possibility of a slowdown in data centre rollout, or a throttling of demand for chips, both of which would undermine the foundations of the investment thesis in many big-name stocks. The news has sent a chill through markets in Asia and Nasdaq futures are lower too.

This seems very much a knee-jerk reaction - AI use is still expected to explode, driving data centre construction even if the wilder experiments are rolled back, but it has hit a market already on edge ahead of the Fed decision this week.”

Dario Amodei’s pacing proposal has drawn heavy skepticism from critics and researchers who allege that AI firms are attempting to preempt more stringent government regulation and retain the status quo of power within the industry.

Rahm Emanuel, former congressman and chief of staff to Barack Obama, posted online:

“I can tell you when the last time a CEO or an industry at large asked to be regulated: never. That’s what makes Dario’s letter so striking – it’s an admission that we’re driving down a dark, winding road on wet pavement with the headlights off.

And where’s President Trump? Looks like he nodded off again.”

More here:

Trump, on a visit to his golf course in Ireland, played down the warnings and said “very negative forces” were “bringing up things that won’t happen”.

The anticipated value of AI developer OpenAI has dropped over the weekend, following the call for a slowdown in the industry.

OpenAI is currently a private company, but broker IG are running a contract where traders can bet on the company’s value.

Tony Sycamore, market analyst at IG, reports:

IG’s OpenAI Pre IPO market-cap contract, which had rallied from about $1.38 trillion to $1.64 trillion after the release of Astra, has fallen back to $1.57 trillion on the news — a pullback of about $70 billion from that high.

[Astra was released to approved users on 3 September].

That IPO might not come as soon as expected, either. In an interview published over the weekend, Sam Altman said a stock market float this year would be “ill-advised.”

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Investors are reassessing the value of companies driving the artificial intelligence revolution after several leading AI figures called for a slowdown in development for safety reasons.

Shares in AI-linked companies in Asia dropped when trading began today, dragging South Korea’s KOSPI index down by 3.7%. Chipmaker SK Hynix has slumped by 5.75%

SoftBank, a major AI invester, fell by as much as 13% in Tokyo after OpenAI’s chief executive officer Sam Altman said that the ChatGPT-maker won’t go public this year (SoftBank owns a stake in OpenAI).

Taipei’s Taiwan Semiconductor Manufacturing Company dropped by 1.2%.

Traders’ optimism about AI has taken a hit after the CEO of Anthropic, Dario Amodei, appealed for the AI industry to “slow down” – a call which was quickly backed by both Altman and Elon Musk.

Amodei said “building [AI] too fast is reckless”, and warned that a swarm of AI agents could cause hundreds of billions of dollars of damage by “taking over the entire internet” in future.

Although Amodie’s claims have been disputed by some AI experts, investors are pricing in a slowdown to AI development which would make it harder for the industry to pay for its rapid rollout of data centres.

Ipek Ozkardeskaya, senior analyst at Swissquote, says there is a “sour mood in the markets this morning”, explaining:

So if the AI race slows materially, the key question becomes: who pays for all that infrastructure? The leases, debt and power commitments remain even if expected compute demand and revenue growth slow. And that could bring credit risk increasingly into the AI story, particularly for highly leveraged data-centre operators and lenders exposed to projects built on aggressive assumptions about future AI demand, at a time when interest rates – hence borrowing costs – are expected to rise.

What’s interesting is that the slowdown may come not because Big Tech is out of cash, or because investors won’t play along. It comes from the actual people who develop these models.

The agenda

• 11.30am BST: India’s inflation report for August

• 1.30pm BST: Canada’s inflation report for August

• 4.15pm BST: ECB president Christine Lagarde gives speech in Vienna, Austria