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Alphabet, Amazon, Meta and Microsoft are planning record capital spending to build AI data centers and the infrastructure behind them, from chips to networking and backup power. Bloomberg data indicates the four are collectively set for roughly a 60% year-over-year increase, with individual outlays at levels rarely seen outside historic investment booms. Meta said capex could reach $135bn, Microsoft is projected near $105bn for its fiscal year, Alphabet forecast up to $185bn, and Amazon guided to $200bn in 2026. The build-out is straining energy and construction capacity, raising community concerns over power and water, and heightening questions about bottlenecks, financing and whether AI revenue will arrive quickly enough. Meanwhile, Simon Lin, the chairman of Taiwanese electronics manufacturer Wistron, has argued that AI is not a bubble, and 2026 AI-related order growth will be more than last year. "We believe AI really does help all industries, so I don't think it's a bubble; I think it will mark a new era. A new AI era is arriving," Lin whose company is an Nvidia, said. His comments came as stocks on Wall Street sold off on Thursday for a third straight day on AI fears, pushing the S&P 500, opens new tab into negative territory for the year.

 

Bloomberg

Reuters

Reuters

New data points to a weak start to the U.S. labor market in early 2026, with slower hiring, fewer openings, and a surge in layoff announcements. Job openings fell by 386,000 in December to the lowest level since September 2020, and Challenger, Gray & Christmas reported 108,400 planned cuts in January, the highest January total since 2009. ADP estimated private employers added just 22,000 jobs in January, and initial jobless claims rose to 231,000. Lisa Simon of Revelio Labs said: “It’s trudging along.” Markets fell about 0.7% on the jobs news. Economists are awaiting the government’s January jobs report, due February 11, with expectations around 60,000 added jobs.  

 

Wall Street Journal

A new policy has been finalized that would strip job protections from up to 50,000 federal workers by expanding at-will status beyond roughly 4,000 political appointees to include certain career employees in policy-related roles. The 255-page rule does not specify which positions will be covered; OPM director Scott Kupor said the White House will decide. It also shifts whistle-blower complaints for affected workers from the Office of Special Counsel to internal agency handling. The change follows broader efforts to reshape the federal workforce, with about 352,000 employees leaving in 2025. Critics warn it enables patronage and retaliation; Max Stier called it “a huge increase of at-will employment,” while the White House said loyalty tests and discrimination are “explicitly” prohibited.

 

The New York Times

Reuetrs

U.S. News

China has asked state-owned firms to pause talks on new projects in Panama after the country voided CK Hutchison’s contract to run two canal-adjacent ports, Bloomberg reports. The move could jeopardize potential investments worth “billions of dollars,” and Beijing has also urged shippers to consider rerouting cargo and customs officials to intensify inspections of Panamanian imports like bananas and coffee. The dispute follows a court ruling last week and comes amid broader U.S.-China tensions over strategic infrastructure, while CK Hutchison is pursuing international arbitration for damages.

 

Bloomberg

The Gateway Tunnel construction in west Manhattan is facing a critical halt as funding is set to run out. On the final day of operations, heavy machinery sat idle on the $16bn project, with 1,000 workers uncertain about their future. “The majority of the workforce will be let go,” said Jim Stereis, chief of program delivery at the Gateway Development Commission. Chief executive Tom Prendergast mentioned ongoing discussions with federal officials regarding funding, but without a resolution, work will cease. Meanwhile, New Jersey and New York have filed lawsuits against the Trump administration for freezing funding, claiming it breaches contracts signed in 2014.

 

NJ.com

A federal judge in Missouri dismissed a lawsuit from the Republican-led state accusing Starbucks of using diversity, equity, and inclusion initiatives as a cover for discrimination based on race, gender, and sexual orientation. U.S. District Judge John Ross stated that the state failed to demonstrate any discrimination against "even a single Missouri resident" associated with Starbucks. The lawsuit, initiated by former Attorney General Andrew Bailey, alleged that Starbucks unlawfully linked executive compensation to achieving racial and gender hiring quotas. The case sought to compel Starbucks to cease alleged discriminatory practices and pay damages. This ruling follows a similar dismissal of a shareholder lawsuit in Washington, emphasizing that such public policy issues are best left to lawmakers rather than the courts.

 

U.S. News

A federal jury in Phoenix ordered Uber to pay $8.5m to Jaylynn Dean, who said she was sexually assaulted by a driver when she was 19. The jury found the driver was an agent of Uber, making the company liable, but awarded only compensatory damages and no punitive damages. The case was the first bellwether trial among more than 3,000 similar federal lawsuits and could shape settlement values. Uber said it will appeal and noted the jury rejected claims that it was negligent or that its safety systems were defective, saying the verdict “affirms that Uber acted responsibly.” Dean’s lawyer Sarah London said it “validates the thousands of survivors.”

 

Reuters

Lawyers representing former Hudson’s Bay employees have asked an Ontario court to approve a hardship fund and additional support measures to help workers affected by the department store’s collapse last year. The motion also seeks approval for a lump-sum payment to support former employees receiving long-term disability benefits, many of whom were told their benefits would be suspended. Lawyers say the measures would provide income security and time for some of the most vulnerable former employees to manage their finances following the insolvency. Hudson’s Bay employed more than 9,300 people before filing for creditor protection and closing all stores, with only a handful of staff remaining as the company continues to wind down through the courts.

 

Toronto Star

New U.S. rules will ban Chinese software in connected-vehicle systems, pushing automakers to audit complex supply chains and certify compliance by March 17. The restrictions also cover some autonomous-driving software, expand to connectivity hardware in 2029, and ban connected cars made by Chinese or China-controlled companies. Suppliers’ reluctance to share source code and the bespoke nature of automotive software complicate swaps. A carve-out for code transferred to non-Chinese entities is driving restructurings, while firms like Eagle Wireless are positioning as compliant alternatives, albeit at higher cost.

 

Wall Street Journal

Waymo and Tesla, alongside lawmakers, are urging Congress to revive long-stalled autonomous-vehicle legislation to speed deployment of self-driving cars, including vehicles without human controls. The Senate Commerce Committee held a hearing Wednesday on robotaxi expansion, with testimony from Waymo, Tesla and others. Sen. Gary Peters warned China is “investing heavily” and said the U.S. must act so “American innovation – and American standards – lead the way.” Chair Ted Cruz echoed that “China is moving aggressively,” while Waymo said U.S. leadership is “under direct threat” in a “trillion-dollar” global race. Tesla engineering VP Lars Moravy said Congress “must modernise regulations” that inhibit innovation.

 

Reuters

Australian shareholders welcomed Rio Tinto’s decision to end merger talks with Glencore, saying the move shows discipline and now puts pressure on management to deliver its stated strategy. Investors had worried Rio could overpay to accelerate copper growth; Reuters reported Glencore sought a structure giving its shareholders 40% of the merged company. Argo Investments’ Andy Forster said: “This is positive that Rio appears to be disciplined in not overpaying,” adding the deal would have added “complexity and uncertainty.” Rio’s Australian shares hit a record intraday and were up about 1%. Wilson Asset Management’s John Ayoub said the proposal conflicted with chief executive Simon Trott’s “stronger, sharper and simpler” plan, while Atlas Funds’ Hugh Dive warned: “Miners have a terrible long-term track record for mega mergers.”

 

Reuters

Toyota said its chief financial officer, Kenta Kon, will become chief executive on April 1, replacing Koji Sato, who will shift to vice chair after three years in the top role. The change comes as Toyota faces higher tariffs in the U.S. and intensifying competition and supply-chain risks linked to China, including threats to restrict rare-earth exports to Japan. Kon is described as a steady operator who helped Toyota navigate Covid-era supply disruptions by stockpiling semiconductors.

 

New York Times

Estée Lauder said on Thursday that it expects tariffs to reduce full-year profitability by about $100m, triggering a share price drop of more than 20% as investors reacted to the added pressure on earnings. The beauty group said more than half of the impact has already been offset through trade programmes, manufacturing optimisation and supply chain changes, but warned the bulk of the hit will fall in the second half. As part of its ongoing “Beauty Reimagined” turnaround, which includes up to 7,000 job cuts, the company said it is considering further cost-mitigation measures, including potential price increases. For the second-quarter to December 31st, the company saw its net sales rise 5.6% to $4.23bn, helping it to a profit of $162m, from a loss of $590m a year earlier. Skincare sales grew 6.9% to $2.05bn, make-up sales rose 1.2% to $1.16bn, while fragrance and haircare sales rose 9.1% and 5.7% respectively, to $812m and $168m.

 

CNBC

Reuters

Wall Street Journal

Ralph Lauren has lifted its annual sales and margin forecasts after posting stronger-than-expected third-quarter results, but warned that U.S. tariffs and higher marketing spend will weigh on margins in the fourth quarter. Revenues in the three months to December 27th rose 12% to $2.41bn in the quarter, beating expectations, while adjusted earnings of $6.22 a share also came in ahead of forecasts, supported by higher full-price sales and reduced discounting. 

 

Bloomberg

Reuters

Auger, a supply-chain software startup founded by former Amazon retail chief Dave Clark, has signed Meta Platforms as a customer, with Meta’s Reality Labs set to deploy Auger’s tools in the first half of the year. The artificial intelligence-driven platform is designed to connect enterprise, warehouse and transport systems to provide real-time operational insight and automated decision-making. Backed by $100m from Oak HC/FT, Auger has around 100 employees and is also working with Fanatics on a proof of concept, marking early traction for Mr Clark’s latest venture since leaving Amazon.

 

Bloomberg