Global News Roundup: Tech Spending Soars, Bitcoin Plummets, and Canada Pivots
A flurry of economic and environmental developments unfolded on Thursday, impacting markets and communities worldwide. Amazon announced a significant increase in its AI spending, while Bitcoin prices hit a 15-month low. Canada unveiled a plan to bolster its auto industry, and the Bank of England hinted at potential rate cuts. Meanwhile, Portugal grappled with severe flooding caused by Storm Leonardo.
Amazon revealed plans to spend $200 billion this year on business development, with a significant portion allocated to artificial intelligence (AI) projects and infrastructure, according to its annual financial report. This represents a substantial increase from the $125 billion spent the previous year. However, investors reacted negatively, with Amazon shares tumbling more than 11% in after-hours trading, according to BBC Business. The company's aggressive spending plans position it at the forefront of the Big Tech AI race, which includes Meta, Google, and Microsoft, with collective spending expected to reach around $650 billion.
In the cryptocurrency market, Bitcoin's price plummeted to its lowest level since October 2024, reaching $66,000 (48,700), BBC Business reported. This represents a 24% drop since the beginning of the year. The decline occurred despite former US president Donald Trump's support for cryptocurrencies and promises to ease industry legislation. Bitcoin had previously reached an all-time high of $122,200 in October, fueled by investor enthusiasm surrounding Trump's involvement in the sector.
Canada unveiled a plan to strengthen its automotive industry and support its transition to electric vehicles, as the sector faces pressure from US tariffs. Prime Minister Mark Carney announced the initiatives, which include financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs, at the Martinrea auto parts manufacturing facility in Woodbridge, Ontario, BBC Business reported. The strategy marks Canada's latest effort to reduce its reliance on the US, amid President Trump's push for more domestic car production, including a 25% tariff on Canadian cars and car parts imposed last year.
The Bank of England held interest rates steady but signaled the possibility of future cuts, according to BBC Business. While this offered a glimmer of hope for borrowers, the bank cautioned that mortgage rates are unlikely to return to the lows seen during the Covid-19 pandemic. The Bank's primary objective is to maintain inflation at its 2% target, which it expects to reach soon.
Meanwhile, Portugal is battling severe flooding caused by Storm Leonardo. Euronews reported that the storm has claimed at least one life, with a man in his 60s dying near Serpa after his car was swept away by floodwater. Around 200 people were evacuated, and the town of Alcácer do Sal was submerged after the Sado River overflowed. Emergency teams have responded to over 3,300 incidents since Sunday, including floods, fallen trees, and landslides. Forecasters have warned of another storm approaching.
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