growth

Second-quarter revenue jumped 93 percent but Palantir’s ties to Israel and role in military technology are controversial.

United States artificial intelligence and data analytics giant Palantir Technologies has reported “otherworldly” quarterly results, sending its shares more than 14 percent higher in after-hours trading, as its growth shows no signs of slowing despite mounting criticism over its close ties to the US and Israeli governments and concerns about its growing role in artificial intelligence and warfare.

Palantir Technologies reported a revenue of $1.94bn for the second quarter, up 93 percent from a year earlier, and raised its forecast annual revenue to between $8.15bn and $8.158bn, up from $7.65bn to $7.662bn earlier. It said strong demand from both commercial customers and government agencies drove the surge.

“This quarter was otherworldly: our US commercial revenue grew 149 percent year-over-year, our overall revenue grew 93 percent year-over-year,” Chief Executive Alex Karp said. “Demand for AI sovereignty has now been unleashed.”

In a letter to shareholders, Karp wrote: “Our business is compounding at a rate and scale that we have never before witnessed.”

Palantir holds multibillion-dollar contracts with US government agencies, including the US Army. Revenue from its US government business rose 90 percent year on year to $809m, even as the company has faced growing opposition over its role in President Donald Trump’s immigration crackdown, which critics say has resulted in unlawful deportations and killings.

Founded in 2003 by technology entrepreneurs including Karp and multi-billionaire Peter Thiel, Palantir opened its first office in Israel in 2015 and has since expanded its work with the Israeli military.

Following what Palantir described as a “strategic partnership” with Israel in January 2024, the company significantly expanded its operations supporting Israel’s military campaign in Gaza and operations in the occupied West Bank.

According to Open Intel, a platform tracking corporate involvement in the genocidal war on Gaza, Palantir has actively recruited former members of Israel’s elite Unit 8200 cyberintelligence division. The group says Palantir’s software integrates intercepted communications, satellite imagery and other datasets to help generate military targeting lists for Israeli forces.

In a statement to Al Jazeera earlier this year, Palantir UK reiterated the company’s support for Israel.

The company has also secured major contracts with the United Kingdom’s government. In January, the UK’s Ministry of Defence awarded Palantir a $323m (240-million-pound) contract. A separate $444m (330-million-pound) NHS contract awarded in November 2023 has also attracted criticism, with campaigners raising concerns about the handling of sensitive health data and the heavy redaction of contract documents.

Palantir has also faced scrutiny over its vision for the future of artificial intelligence. In The Technological Republic, a recent book co-authored by Karp and the company’s head of corporate affairs, Nicholas W Zamiska, the authors argue that technology companies have a responsibility to build advanced military AI capabilities. Critics have described the philosophy as a form of “techno-fascism”.

Al Jazeera has contacted Palantir for comment.

United States economic growth slowed in the second quarter of 2026 amid a growing deficit and increasing inflationary pressures.

US gross domestic product (GDP) grew by 1.5 percent between April and June. That is a sharp decline from 2.1 percent growth in the first quarter of the year, according to a Bureau of Economic Analysis (BEA) report released on Thursday.

A widening trade deficit is a key reason why GDP is slowing, as is a jump in petrol prices, experts say.

“It’s a classic supply shock. The combination of tariffs and oil price spikes is exactly what a macroeconomist would expect to happen,” Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University, told Al Jazeera.

The US has increased purchases of goods like semiconductors, telecommunications equipment, and industrial equipment, according to BEA data. Business investment in equipment rose by more than 15 percent in the second quarter. Those are essentially the elements needed for the ongoing investment boom to support the growth of artificial intelligence (AI).

“Imports rose due to the investment and consumption driver, and so net exports were a drag on overall growth. Overall, the US is investing and consuming more but not producing more,” Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera.

Exports have not kept pace. The trade deficit in May grew to $77.6bn, a 42 percent increase from the month before, according to BEA data.

Exports tumbled by 3.2 percent to $317.7bn, and imports rose by 3.3 percent to $395.3bn.

This comes as countries around the globe seek to reduce their dependence on the US due to President Donald Trump’s tariff policies.

Among them is Canada, historically one of the US’s biggest trading partners. Canadian Prime Minister Mark Carney has pursued new trade deals with China and Saudi Arabia in recent months, for example, as Trump has slapped steep tariffs on the country, threatened to annex it and called it the 51st state, and refused to renew a trade deal with Canada and Mexico.

Are US tensions with Iran a factor?

In the second quarter, energy prices fluctuated greatly over the past few months. For US consumers, that was mostly reflected in petrol prices. During the second quarter, US petrol prices hit $4.48 per gallon (3.78 litres) in May.

They later retreated to $3.96 per gallon by the end of June. But the reprieve was short-lived as a fragile peace deal failed to take hold, with petrol prices increasing throughout July after the deadline for data to be included in second-quarter GDP had passed. Prices have since moved back above the $4 mark.

Petrol prices drove inflation for much of the second quarter. Between March and April, petrol prices jumped 5.4 percent. The next month, they jumped another 7 percent. They eased between May and June, falling 9.7 percent as global benchmark prices pulled back.

According to analysis from Bank of America, discretionary spending surged in June, the final month of the second quarter, as spending on products outside of petrol jumped while fuel prices temporarily eased.

“With gasoline prices easing in June, total card spending excluding gas surged 5.6% YoY [year over year] – also the strongest growth since April 2022,” the report said.

How can the GDP recover?

US consumers have ramped up spending on prescription drugs, automobiles like light trucks, and new furniture. There was also increased spending in areas like restaurants and hotels, suggesting that consumers remain somewhat resilient.

But, says Fletcher School’s Klein, that spending is by high-income earners, a trend that indicates a K-shaped economy, which is when the wealthy thrive, while lower-income consumers and small businesses face tougher economic conditions.

“The continued consumption growth of those who are better off depends upon things like the stock market staying strong and housing prices staying strong, because people feel wealthier through the value of their house or their stock portfolios, so they’ll spend more. But by a number of measures, the stock market seems to be very highly valued,” Klein, who also authors the EconoFact economic analysis website, told Al Jazeera.

Overall, consumer confidence fell for the third straight month in July, according to a Conference Board report released on Tuesday. Consumers attributed the decline to “current business conditions”, and the organisation expects “little improvement” for the remainder of the year.

Business investment would also need to surge more broadly to lift the wider economy. While there has been a boom in the AI sector, other industries have not been as eager to keep their inventories stocked.

Klein says consistent trade policies would change that.

“The pervasive uncertainty in the economy will affect businesses’ decisions on hiring and investing. That can also contribute to the slowdown, because, in an uncertain environment, businesses don’t want to make decisions that have long-lasting consequences when they have little idea of what the future will look like,” Klein said.

Creating economic conditions that encourage consumers and businesses to spend would help drive up GDP in the coming quarters. However, uncertain trade policies and concerns about widespread layoffs, as has been the case in several tech companies, have made consumers more cautious with the pocket books.

“If people were more secure and felt that their jobs would be there next year; if they felt that things weren’t more expensive and they could afford to spend more. But those are not easy fixes, right? And talk is not going to change what people rightly perceive as a fraught situation,” Klein added.

GDP grew by 1.5 percent in the second quarter following a 2.1 percent increase in first quarter.

Economic growth in the United States slowed in the second quarter amid a growing trade deficit and tensions between the US and Iran which weighed on global fuel prices.

The US Gross Domestic Product (GDP), a measure of goods and services, grew by 1.5 percent between April and June, marking a slowdown from 2.1 percent growth in the first quarter of 2026, according to the Commerce Department’s Bureau of Economic Analysis report released on Thursday.

Consumer spending saw a bump of 3.2 percent for the quarter, both on the back of generous tax refunds from US President Donald Trump’s ‘One Big Beautiful Bill Act’ as well as heightened petrol prices that cost consumers.

Fuel prices are on the upswing after a brief reprieve. The average price for a gallon of petrol (3.78 litres) is $4.09, up from $3.84 this time last month, according to the American Automobile Association (AAA), which tracks daily petrol prices. By comparison, the average price was $2.98 when the US and Israel first struck Iran on February 28 .

Analysts also point to the artificial intelligence spending boom as a reason for the surge, even as those are heavily import reliant and contributing to trade deficits.

“Overall, the economy continues to rely on technology investment,” Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told Al Jazeera.

That will likely continue into third-quarter reports, which will take into account the month of July. On Monday, it was reported that Nvidia is in talks to make a $250m investment in OpenAI.

However, there are concerns about how long such investments will last amid questions over circular financing propping up the sector.

“Data centres continue to drive investment and economic growth, increasing the sector’s role in the economy while raising questions about its sustainability,” Ziemba said.

Meanwhile, the Personal Consumption Expenditure Price (PCE) Index report, one of the US Federal Reserve’s key metrics for gauging the rate of inflation, increased 3.7 percent on an annual basis for the month of June after a 4.1 percent surge in May.

The slowdown was marked by a brief retreat in petrol prices last month before they climbed higher again over the past month.

“Today’s report is a snapshot of an economy under a ceasefire that no longer exists. Even with last month’s temporary inflation relief, prices are still elevated and families are saving less as they try to keep up,” Alex Jacquez, a member of the National Economic Council under former US President Joe Biden, said in a note provided to Al Jazeera.

On Wednesday, the US Federal Reserve opted to maintain interest rates at 3.5-3.75 percent.

US markets are on the upswing in midday trading, largely driven by an increase in Microsoft stock amid better-than-expected sales and growth in cloud services. Markets have also risen following the PCE and GDP reports.

The tech-heavy Nasdaq is up 2.6 percent, with the S&P 500 following at 1.2 percent and the Dow Jones Industrial Average up 0.5 percent.

Gold prices, which are typically considered a safe investment during economic uncertainty, extended their gains by 1.9 percent to $4,108.30 per ounce after rising 2 percent on Wednesday.

China’s top leaders pledged on Thursday to support the country’s slowing economy by accelerating spending on already-approved infrastructure projects instead of rolling out large-scale stimulus measures. The decision came after recent economic data showed second-quarter growth slowed to 4.3%, the weakest pace in more than three years and below the government’s annual target range of 4.5% to 5.0%.

The commitment followed a meeting of the Communist Party’s Politburo, where policymakers acknowledged mounting economic challenges but signaled confidence that existing fiscal resources would be sufficient to stabilize growth through the remainder of the year.

Infrastructure Spending Takes Center Stage

Rather than introducing fresh stimulus packages, Beijing plans to speed up implementation of projects that have already been budgeted. Analysts said the government still has significant fiscal room because infrastructure spending and bond issuance progressed more slowly than planned during the first half of the year.

Economists expect much of the spending to focus on China’s “six networks” initiative, covering investments in water systems, logistics infrastructure, underground pipelines, electricity grids, telecommunications and computing power centers. State media has previously indicated that roughly $1 trillion has been allocated for these projects.

Analysts viewed the Politburo’s statement as confirmation that Beijing intends to support growth without significantly expanding its fiscal deficit.

Concerns Over Overcapacity Remain

Chinese leaders continue to avoid aggressive stimulus partly because they remain focused on tackling industrial overcapacity and encouraging local governments to maintain fiscal discipline.

The Politburo reiterated its commitment to addressing what it described as “involution competition”—a term referring to intense price wars among manufacturers competing for market share at the expense of profitability. While many economists argue that excess industrial capacity is driving these price wars, Beijing continues to reject claims that overcapacity is a structural problem.

Weak Consumer Demand Continues to Weigh on Growth

Although manufacturing exports and advances in artificial intelligence have supported parts of the economy, domestic consumption remains weak.

China’s prolonged property downturn, sluggish wage growth and a challenging labor market have reduced household confidence. Millions of workers have shifted into lower-paying gig economy jobs with limited social protections, encouraging higher savings rather than consumer spending.

This imbalance has increased China’s reliance on exports to sustain growth, raising concerns among trading partners that Chinese manufacturers are flooding global markets while domestic demand remains subdued.

Employment Support Remains a Priority

The Politburo pledged to strengthen domestic demand by expanding employment support, particularly for flexible workers and those in newer forms of employment. However, officials did not announce specific policies aimed at boosting household incomes.

Economists noted that while Beijing continues to emphasize consumption, its strategy remains focused on improving the supply of goods and services rather than directly increasing consumer purchasing power through large-scale income support or cash stimulus.

Outlook

The latest policy signals suggest Beijing is seeking to balance economic stability with long-term structural reforms. Rather than relying on broad stimulus, China’s leadership is betting that faster implementation of existing infrastructure investments and targeted employment measures will be enough to keep the economy on track while avoiding a surge in debt and further industrial overcapacity.

With information from Reuters.

Zambians will vote on August 13 in presidential and parliamentary elections, with polls and investors widely expecting President Hakainde Hichilema to defeat a fragmented opposition led by Brian Mundubile.

For investors, however, the central question extends beyond the election outcome. The focus is on whether a second Hichilema administration can transform Zambia’s post-default economic stabilisation into stronger, broad-based growth while maintaining fiscal discipline.

IMF Programme Seen as Key Test

One of the first issues investors will monitor is whether Zambia secures a new programme with the International Monetary Fund (IMF) after its previous $1.7 billion arrangement ended in January.

The earlier programme helped underpin Zambia’s sovereign debt restructuring after the country became Africa’s first pandemic-era sovereign default. Markets now view a successor agreement as an important indicator of policy continuity.

Investors will closely watch how quickly negotiations conclude and whether any new programme shifts its focus from crisis management toward promoting long-term economic growth while preserving fiscal discipline.

Copper Industry Remains the Economic Backbone

Copper continues to dominate Zambia’s economy, accounting for about 70% of export earnings while serving as a major source of government revenue, foreign investment and employment.

Investors are watching whether planned investments can translate into higher production. Major projects include Vedanta’s return, continued expansion by Barrick Gold, and First Quantum Minerals’ ongoing investments.

The government has maintained that mining tax rates will remain unchanged, providing policy stability. However, investors are paying close attention to a proposed local-content law that would require mining companies to increase domestic procurement to around 40% over the next three to four years from roughly 20% today.

Mining companies have warned that many local suppliers currently lack sufficient financing and technical capacity, potentially creating supply chain challenges during a period of major expansion.

Growth Reforms Still Needed

Despite recent macroeconomic improvements, investors argue that broader structural reforms remain necessary.

Among the priorities are increasing exploration spending to discover new mines, improving tax collection efficiency, and reforming Zambia’s grain market to reduce the government’s role in purchasing maize harvests.

A record maize crop is expected this year, but analysts warn that government purchases of surplus grain could increase fiscal pressure, particularly alongside election-related spending.

Some forecasts suggest Zambia’s fiscal deficit could exceed official government targets if these pressures continue.

Reliable Power Critical for Mining Expansion

Electricity supply has become another major concern following drought-induced power shortages that exposed Zambia’s heavy dependence on hydropower.

Although investment in solar energy is increasing, investors say expanding copper production will depend on creating a more reliable and diversified electricity system capable of supporting future mining operations.

Election and Climate Risks

While most observers expect a relatively orderly election, monitoring groups have highlighted concerns including alleged voter card confiscation, vote buying and the possibility of localized unrest if results are disputed.

Weather also remains a significant economic risk. Zambia remains highly dependent on rain-fed agriculture and hydropower, leaving the economy vulnerable to future droughts similar to the severe 2023–24 El Niño event that caused widespread crop failures and electricity shortages.

Analysis

The election itself is unlikely to unsettle investors if Hichilema secures the expected victory. Instead, markets will judge whether his government can move beyond economic stabilization toward sustained, private sector-led growth. A new IMF programme, continued mining investment, reforms to agriculture and tax collection, and a more resilient energy sector will be the key indicators of success. While Zambia has made notable progress since its debt default, structural challenges and climate risks continue to test the country’s long-term economic outlook.

With information from Reuters.

NEW YORK — The WNBA has grown at an exponential rate during Cathy Engelbert’s tenure as commissioner, a stewardship that at times has been tumultuous during her nearly seven years at the helm.

Engelbert, the second-longest tenured WNBA president or commissioner, helped negotiate a transformative collective bargaining agreement this past spring that gives the WNBA its first core of million-dollar player salaries.

“There’s not a lot of jobs where you can make over 30-plus millionaires instantly, right?” Engelbert said in a phone interview with the Associated Press heading into this weekend’s WNBA All-Star festivities in Chicago. “It just doesn’t exist in most companies, except if you’re like a stock-option company, and your stock does really well. Most of them are under the age of 30 and there are more to come.”

Even with the financial gains, the WNBA’s growth has come amid a strained partnership between the commissioner and players. Engelbert has been criticized for how she has handled various situations, including for being out of touch or not doing enough to help combat social media vitriol.

Engelbert will meet with the executive committee of the players’ union on Tuesday to discuss the recent uptick in online hatred and threats directed toward players.

New York Liberty All-Star Breanna Stewart, vice president of the WNBA players’ union executive committee, said there is a respect for Engelbert among the players, just not much of a relationship.

Her Liberty teammate, Sabrina Ionescu, said she talks more to NBA commissioner Adam Silver than Engelbert.

WNBA business is booming

While the commissioner continues to try and strengthen her relationship with players, the business of the WNBA has thrived.

Engelbert was involved in talks that led to a record media rights deal worth over $3 billion. The league has had record ratings, attendance and team valuations, and will expand to a record 18 teams by 2030.

“We’ve been in hypergrowth mode now for two or three years and companies, if you look back in time, you are not in hypergrowth mode forever,” Engelbert said. “We’re preparing ourselves now for the next version of ourselves, which probably isn’t as hypergrowth.”

From a business standpoint, though, the league has grown, including navigating the coronavirus pandemic that could have crippled the WNBA.

“Give Cathy credit, as she advocated for the season,” Seattle Storm owner Ginny Gilder said. “We had no idea what was going to happen. People had to make decisions. Cathy pushed the Board of Governors to not only have a shortened season, but to fully pay the players. Don’t bicker. We were going to figure out the finances.”

Expansion fees have gone up five-fold over the past few seasons. Golden State paid $50 million to join the league and Cleveland, Detroit and Philadelphia — all joining the league over the next four years — each paid $250 million.

“Look at the financial side in such a short period of time — Cathy with all the work she did and the staff she hired deserves a tremendous amount of credit for that,” Gilder said. “If you look around the league from 2015 to 2020 to now, you know it is a completely new day.”

Valuations of teams were around $5 million to $10 million a decade ago and now the average is around $460 million, Engelbert said.

“When you’re CEO, when you’re commissioner, you’re going to have good days and bad days. But if you just looked at the overall scorecard, you’d have to say we’re doing great,” Washington Mystics owner Ted Leonsis said.

More endorsements for WNBA players

It’s nearly impossible to turn on a major sporting event over the past few years without seeing a WNBA player featured in a commercial. From Gatorade to State Farm, Nike and CarMax, product ads feature some of the league’s top newsmakers, including Caitlin Clark, Angel Reese, A’ja Wilson and Sabrina Ionescu.

Engelbert said when Clark was drafted, it created a “domino effect, because they started seeing the value of putting players in their ads and then separately endorsing the players. I’m really proud of that because when I came to the league, absent a few sneakers ads, I don’t remember any players in spots. Maybe there were a few.”

The commissioner has seen the trend continue with younger players coming into the league, including Paige Bueckers, Azzi Fudd and Olivia Miles.

“Everybody sees the W is here to stay,” the commissioner said.

The commissioner’s future and what’s next for the WNBA

Engelbert deflected questions about her future other than to say she’s turning 62 this year and that was the mandatory retirement age at her old job at Deloitte, where she was the president.

“I haven’t given it a ton of thought. We’ll think about it,” Engelbert said of how long she will stay in her current role, adding she is “focused on the whack-a-mole that is our season. I always tell people don’t focus on me, focus on the rest of my team.

“You always want to leave an organization better than you found it. Internally we’re proud of the team we’ve built.”

Silver said in Las Vegas that he supports what Engelbert is doing.

“I think Cathy continues to do a strong job building that league,” the NBA commissioner said. “We’ll have ongoing discussions about what the future looks like.”

With media rights stable for the next decade as well as labor peace achieved and expansion finished for the immediate future, Engelbert said her list of priorities includes a look at officiating, with WNBA referees finding themselves at the center of questions from frustrated players, coaches and fans. She also wants to help teams with lower attendance improve those numbers, and expand the league’s international footprint.

Feinberg writes for the Associated Press.

Andy Burnham has officially begun his tenure as Britain’s prime minister with something few of his recent predecessors enjoyed: breathing room. After replacing Keir Starmer as Labour leader and becoming the United Kingdom’s seventh prime minister in just a decade, Burnham inherits an economy burdened by weak growth, strained public services and persistent cost-of-living pressures. Yet, unlike the turbulent starts experienced by previous leaders, financial markets have greeted his arrival with surprising calm.

That early confidence may prove one of Burnham’s greatest assets—or one of his greatest tests.

A Different Kind of Labour Leader

Burnham enters Downing Street with a political identity distinct from his predecessor. During his time as Mayor of Greater Manchester, he cultivated an image as a champion of regional development and public investment, earning the nickname “King of the North.”

Unlike Starmer’s cautious approach to fiscal management, Burnham has promised to “rewire Britain” through greater devolution, investment in public services, re-industrialisation and stronger local government.

Such promises normally raise concerns among investors wary of higher public spending. Yet markets have remained remarkably composed.

British government bond yields have stayed close to 5%, while sterling has strengthened against the euro since Burnham emerged as Labour’s preferred successor. Investors appear reassured by his commitment to maintaining Britain’s existing fiscal rules rather than pursuing aggressive borrowing.

Why Markets Are Staying Calm

Several factors explain why investors have not reacted negatively.

First, Burnham has avoided announcing sweeping fiscal changes during his first days in office. Instead, he has focused on politically popular issues such as healthcare, homelessness, defence and regional economic development.

Second, his appointment of former Defence Secretary John Healey as Chancellor suggests continuity rather than confrontation with financial markets.

More importantly, many economists believe economic policy will remain closely directed by Downing Street rather than being driven independently by the Treasury, reducing uncertainty over Britain’s fiscal direction.

This perception matters because markets today are extremely sensitive to fiscal credibility.

The Shadow of Liz Truss

Any discussion of British economic policy inevitably returns to September 2022.

Former Prime Minister Liz Truss’s unfunded tax-cutting budget triggered one of the worst government bond sell-offs in modern British history. Pension funds came under severe pressure, forcing the Bank of England to intervene to stabilise markets.

That episode fundamentally changed how investors assess UK fiscal policy.

The International Monetary Fund recently concluded that the crisis permanently increased the risk premium investors demand for holding British government debt. In other words, markets now react far more aggressively to any sign of fiscal irresponsibility.

Burnham understands this reality.

His repeated commitment to existing borrowing rules appears designed to reassure investors that Labour will not repeat past mistakes.

The Economic Tailwinds

Burnham also benefits from several favourable developments that could buy his government valuable time.

Inflation has moderated compared with previous years, reducing immediate pressure on the Bank of England to tighten monetary policy further.

Energy prices have also eased relative to their crisis peaks, while upcoming regulatory adjustments may further reduce household energy costs.

Another important advantage comes from the fiscal restraint maintained under former Chancellor Rachel Reeves.

Her adherence to strict borrowing limits has substantially reduced planned government debt issuance this year, giving Burnham more flexibility to adjust spending priorities without immediately alarming financial markets.

In effect, Burnham inherits a stronger fiscal starting position than many expected.

The Difficult Choices Ahead

Those advantages, however, are unlikely to last indefinitely.

Britain still faces sluggish productivity, weak investment, deteriorating public infrastructure and mounting demands for higher defence spending.

Burnham has also hinted at broader reforms that could eventually test investor confidence, including:

• Greater public control over utilities.
• Property tax reform.
• Increased defence spending.
• Adjustments to frozen income tax thresholds.
• Possible changes to National Insurance contributions.
• Expanded regional investment programmes.

Each proposal carries fiscal implications.

Delivering meaningful improvements in living standards while maintaining market confidence will require careful balancing.

The Reform UK Factor

Politics may ultimately shape economic policy more than economics itself.

Although Labour has changed leaders, Nigel Farage’s Reform UK continues to perform strongly in opinion polls.

If Burnham adopts an overly cautious approach that fails to improve public services or living standards, Reform could continue gaining political momentum.

That creates a dilemma.

Markets generally favour fiscal discipline, but voters increasingly demand visible economic change.

Burnham must therefore find a middle ground: ambitious enough to convince voters Labour can improve daily life, yet disciplined enough to convince investors Britain’s finances remain under control.

Why It Matters

Burnham’s premiership begins at a pivotal moment for Britain.

Economic growth remains weak, public confidence in government is fragile, and geopolitical uncertainty—from rising defence commitments to global trade disruptions—continues to weigh on the outlook.

Unlike many of his predecessors, Burnham enjoys a brief window of goodwill from financial markets. Whether he can convert that goodwill into lasting economic reform without unsettling investors may determine not only Labour’s electoral fortunes but also Britain’s broader economic trajectory.

Analysis

The first major test will come with Burnham’s autumn budget.

Investors will closely examine whether his government maintains fiscal discipline while introducing the reforms needed to revive growth and address Britain’s long-standing structural problems.

Markets will also monitor whether Labour can improve economic conditions quickly enough to halt the rise of Reform UK. If opinion polls continue shifting toward Nigel Farage’s party, investors may begin pricing in greater political uncertainty, reviving memories of the volatility seen during the Liz Truss government.

For now, Burnham has been handed two valuable gifts: investor patience and fiscal breathing space. Whether those advantages become the foundation of a successful premiership or simply a temporary reprieve will depend on the difficult choices his government makes over the coming months.

With information from Reuters.

Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.

The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion.

Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion from $51.4 billion.

The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.

In a presentation with analysts, Netflix executives touted global expansion plans.

“We’re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,” said Spencer Neumann, Netflix’s chief financial officer, in the earnings presentation. “We believe we’ve got lots and lots of runway for solid growth ahead of us.”

Those comments appeared intended to assuage investors who’ve grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.

Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data.

The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% in April 2025, Nielsen said.

By comparison, YouTube has seen its share of the streaming audience grow. YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.

Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business. It could also undercut Netflix’s ability to raise prices in the U.S. and other countries.

Those worries have caused Netflix’s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. In after hours trading, the stock fell 8%.

“The engagement elephant continues to rear its head and investors are on edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,” wrote Morgan Stanley Research analysts in a research note.

On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and “we know not all hours are equal” and that engagement on its platform is “healthy.”

“The entertainment industry remains dynamic and competitive,” Netflix told shareholders. “We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.”

The Los Gatos-based company said it plans to allocate more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said.

In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller “I Will Find You,” which had 87 million views; and the romantic comedy film “Voicemails for Isabelle,” which garnered 71 million views.

Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.

As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game.

In 2022, Netflix had also faced investor pressure when it reported declining subscribers for the first time in more than a decade. That pushed the company to delve into other areas including advertising, gaming and cracking down on password sharing.