Caroline Hepker

It's all coming ahead of the Bank of England rate decision today, but there's no change really expected here.

in terms of interest rates from the BOE and indeed no change to what is being priced in for reductions across the rest of the year, about 35 basis points expected.

But the big dollar spot index is stronger.

The pound is down two tenths of 1%.

Oil prices are lower.

Gold is down 1%.

You've got this continued tech hit to stocks in the Asia trading hours and stock futures for the US rebounding a bit for the Nasdaq up four tenths this hour.

I'm Caroline Hepka and this is Bloomberg.

News when you want it with Bloomberg News Now.

I'm Caroline Hepker.

AI's potential to change business models, large and small, is driving a trillion-dollar sell-off in stocks, bonds and loans of companies.

The route was first sparked by Anthropic's release of a new tool for legal work earlier this week.

That move ignited fears across markets that AI leaders will overtake established industry players in innovation sooner rather than later.

And in a confusing mix of market signals, even companies long seen as the prime beneficiaries of the AI boom are showing signs of fatigue.

In his latest earnings report, Alphabet topped projections for quarterly revenue but said that capital spending on AI will be significantly higher than anticipated.

CEO Sundar Pichai says the money will deliver a return on investment.

Sundar Pichai speaking there.

As the Google parent said that capital expenditure could come close to $185 billion this year, compared with almost $120 billion that analysts had expected, Alphabet's shares fluctuated in extended trading following the publication of the earnings.

Here in the UK, the Prime Minister is facing a growing backlash from his own party as revelations over Peter Mandelson's relationship with Jeffrey Epstein threaten to further damage his already embattled premiership.

MPs voted to require the government to disclose all documents related to Mandelson's appointment as US ambassador by Keir Starmer.