Morning Briefing — May 12, 2026

World News

Pressure mounts on UK PM Starmer to resign after Labour election losses — More than 70 Labour MPs are calling for Keir Starmer to step down following devastating local election results. UK gilt yields are rising as the prime minister battles for political survival amid a leadership challenge. Guardian

Trump rejects Iran's latest peace proposal as 'totally unacceptable' — President Trump dismissed Iran's counteroffer to end the months-long war, which had called for a ceasefire on all fronts and lifting of sanctions on Tehran. Israeli PM Netanyahu warned the conflict was 'not over,' driving oil prices higher. CNBC

Hantavirus cruise ship outbreak prompts WHO warning — The WHO chief said work to contain hantavirus is 'not over' after evacuations from a cruise ship hit by a deadly outbreak. Four Canadians from the ship have flown to BC, and 18 Americans are now in quarantine after returning to the US. CBS News

Iranian Nobel laureate Narges Mohammadi in critical care — The family of Iranian Nobel Peace Prize laureate Narges Mohammadi says she remains in critical condition after being transferred to a Tehran hospital. The transfer reportedly came after intensified international pressure over her deteriorating health. CBC

Australian Treasurer Chalmers to deliver 2026 federal budget — Treasurer Jim Chalmers is set to present the Australian federal budget tonight, with measures expected on tax, housing, and fuel. Analysts say the budget will rein in property market activity amid affordability concerns. Guardian

Trump-Xi summit looms with trade, Taiwan and Iran on agenda — President Trump is expected to confront Xi Jinping over selling weapons to Iran when the two meet in Beijing this week. Trade, Taiwan and tensions with Iran are surefire topics, with Trump arriving in China without achieving his war aims in Iran. CBS News

American climber dies in avalanche on Mount Makalu — American climber Shelley Johannesen was killed in an avalanche on Mount Makalu, officials said Tuesday. The death adds to mounting fatalities early in Nepal's busy spring climbing season. CBS News

Palestinians sheltering in Gaza rubble struggle with rodent infestations — Palestinians seeking refuge among the rubble of destroyed buildings describe rats moving 'like a storm' through their makeshift shelters. The infestation adds to dire health and humanitarian conditions in the territory. CBC

Business

UK bonds and pound slump as pressure on Starmer builds — The FTSE 100, gilts and sterling sold off sharply as political turmoil engulfed Downing Street. Bond markets reacted to the prospect of a Labour leadership change amid the ongoing Iran-war energy shock. Bloomberg

S&P 500 and Nasdaq close at record highs despite oil surge — The S&P 500 rose 0.19% to close at 7,412.84 and the Nasdaq inched up to 26,274.13, both at fresh records, even as US crude rose to around $98 after Trump rejected Iran's peace proposal. The near-halt of traffic through the Strait of Hormuz is reigniting inflation worries. CNBC

Canada sheds 18,000 jobs as unemployment hits 6-month high — Canada's unemployment rate rose to 6.9% in April as the economy lost 18,000 jobs, well below analyst expectations of 15,000 net gains. The country has now shed jobs in three of the first four months of 2026, totalling 112,000 jobs lost since January amid US tariff and trade uncertainty. CBC

US April CPI report expected to show energy and housing pressures — The Bureau of Labor Statistics releases April's CPI on Tuesday, expected to clarify energy and housing inflation components. S&P Global Ratings forecasts headline CPI of 5% for 2026 amid the Iran war's price shocks. Yahoo Finance

Markets price in three ECB rate hikes as Fed expected to hold — BlackRock notes markets are now pricing in roughly three rate hikes in Europe as inflation pressures build, while no change is expected from the Federal Reserve. AI-linked equities in South Korea and Taiwan are outperforming countries exposed to the Middle East shock. BlackRock

Circle raises $222 million from BlackRock, Apollo for Arc blockchain — Circle raised $222 million from BlackRock, Apollo, Intercontinental Exchange and other financial heavyweights in a token presale valuing its new Arc blockchain at $3 billion. The initiative aims to position Circle as an infrastructure provider for an AI-native economy. CNBC

Monday.com surges 26% on AI-driven earnings beat — Software firm Monday.com jumped 26% after Q1 revenue grew 24% year-over-year to $351.3 million, beating the $339.1 million analyst consensus. The company credited the launch of its AI platform for driving the outperformance. CNBC

South Korea's Kospi opens at record high amid Asia-Pacific gains — South Korea's Kospi gained 4.70% after opening at a fresh record, with index heavyweight SK Hynix rising 10.74% on the back of US chip strength. China's CSI 300 added 0.58% while Hong Kong's Hang Seng declined 0.48%. CNBC

Bloomberg News wins 2026 Pulitzer for India 'digital arrests' investigation — Bloomberg News won the 2026 Pulitzer Prize for Illustrated Reporting and Commentary for 'trAPPed,' a graphic investigation into India's wave of digital arrest scams. The companion piece traces the trail from victims to scammers in India's digital revolution. Bloomberg

Technology

Enterprise AI initiatives stalling: 46% fall short of expectations — A new report from Coastal and Oxford Economics surveying 800 US leaders finds that despite 74% of organizations increasing AI investment, 46% say outcomes have fallen short. Some 70% report data access or quality issues during AI setup, and only a small minority say AI is delivering measurable business value. Daily Guardian

Guardian highlights cross-partisan protests against AI datacentre expansion — The Guardian frames local protests against AI datacentre construction as a nascent cross-partisan movement challenging big tech. The dispute centers on large-scale datacentres that concentrate electricity, water, and land use, with Pew Research finding 56% of AI experts expect positive impact versus just 17% of the public. Guardian

Utah residents protest massive AI data center backed by Kevin O'Leary — Utah residents are mobilizing against a large AI data center project backed by investor Kevin O'Leary, citing concerns about resource consumption. The protests reflect a wider backlash against rapid hyperscale data centre expansion. CNN

Elon Musk's lawsuit against OpenAI's Sam Altman in California court — Elon Musk has spent the last few weeks in a California courtroom suing his former business partner, OpenAI CEO Sam Altman. The mother of Musk's children has emerged as a key witness in the case. BBC

Google's plan to win the AI health race: Play nice with Apple — Google is pursuing partnerships with rivals including Apple as part of its strategy to lead the AI-driven healthcare market. The collaborative approach aims to extend Google Health's reach across device ecosystems. CNN

Pentagon expands AI contracts with Google, OpenAI, Amazon, Microsoft — The US military plans to increase its use of artificial intelligence after the Pentagon agreed to expanded contracts with Google, OpenAI, Amazon, Microsoft, SpaceX, Oracle, Nvidia and Reflection. The Pentagon said AI technology would now be used for any 'lawful operational use.' World in Review

Musk seeks US approval to launch a million satellites for AI data centres — In January, Musk applied for permission with the US government to launch a million satellites into orbit, some of which he says will serve as solar-powered AI data centres in space. The plan represents one of the most ambitious orbital AI infrastructure proposals to date. BBC

Pop singer accuses Samsung of using copyrighted image of her face — A pop singer is accusing electronics manufacturer Samsung of using a copyrighted image of her face to sell TVs. The dispute highlights ongoing tensions around likeness rights as AI-generated and edited imagery proliferates in marketing. CBS News

Gartner: Guardian AI agents to capture 10-15% of agentic AI market by 2030 — Gartner predicts that guardian agent technologies — AI tools designed to oversee and secure other AI agents — will account for 10-15% of the agentic AI market by 2030. Analysts warn that without proper guardrails, agentic AI will lead to unwanted outcomes from input manipulation and data poisoning. Gartner

Renewable Energy

Wind and solar saved UK consumers £1.7bn during Iran-war energy crisis — Wind and solar have now beaten fossil fuels in Great Britain's power mix for a record 15 consecutive months. Since the start of the Iran war, wind and solar have generated twice as much electricity as fossil fuels — a dramatic flip from a decade ago when fossil fuels generated four times more. Carbon Brief

EU considers methane regulation exemptions for fossil-fuel firms — The European Commission is weighing changes to its flagship methane emissions regulation that would give fossil-fuel companies leeway to avoid penalties, in what would be a major win for the oil and gas sector. National authorities would be able to grant exemptions on energy security grounds after Trump administration pressure. Carbon Brief

IRENA: 24/7 renewables now beat fossil fuels on firm cost — Solar and wind paired with battery storage already deliver round-the-clock electricity at lower cost than fossil fuels in many regions, according to a new IRENA report. Firm costs for solar plus storage range from $54-82/MWh in high-quality regions versus $70-85/MWh for new coal in China and over $100/MWh for new gas globally. IRENA

Norway approves reopening three North Sea gas fields — The Guardian reports the Norwegian government has been heavily criticised for approving plans to reopen three North Sea gasfields that were closed nearly three decades ago. The decision was justified on energy-security grounds amid the ongoing global energy crisis. Guardian

China and EU form carbon pricing alliance as US bets on fossil fuels — China and the EU have joined forces to create a global alliance on carbon pricing, putting them at odds with the Trump administration's push to invest more in fossil fuels. The move signals a widening transatlantic split over climate policy. Bloomberg / Clean Energy Wire

EU approves €5 billion German industrial decarbonisation scheme — The European Commission has approved a €5 billion state aid scheme by Germany to help companies in industrial sectors decarbonise their production processes. The package comes as Vice Chancellor Klingbeil renewed calls for an EU-wide windfall tax on energy. Clean Energy Wire

57 countries chart path 'away from fossil fuels' at Santa Marta summit — The first conference on transitioning away from fossil fuels, held in Santa Marta, Colombia from 24-29 April, saw 57 countries — representing one-third of the world's economy — debate practical pathways to move beyond coal, oil and gas. The format was described as 'refreshing' and 'groundbreaking,' with a new science panel launched alongside the talks. Carbon Brief / Resilience

China's clean-tech exports surge 70% year-on-year in March 2026 — China's exports of solar cells, EVs and lithium-ion batteries — the 'new three' clean-energy technologies — surged 70% year-on-year in March, reaching $21.6 billion. Exports were also up 37% from February, partly driven by the Iran war pushing nations to seek non-fossil energy supplies. Carbon Brief

US to add 80 GW of solar, wind and storage capacity by early 2027 — Utility-scale solar, wind and battery storage will add more than 80 GW of new generating capacity in the US by February 2027, while total fossil fuel and nuclear capacity falls by nearly 5 GW, per EIA data. Solar's share of US capacity will expand from 12.7% to 15.5%, with battery storage surging 51%. Electrek

EU and India launch joint €15 million EV battery recycling initiative — The EU and India have launched a joint initiative worth €15.2 million dedicated to recycling electric vehicle batteries. The move complements a relaxation of CO₂ fleet targets for heavy-duty vehicle manufacturers that has come into force. Clean Energy Wire

Soil Science

FAO warns Strait of Hormuz disruption risks global food 'catastrophe' — A prolonged disruption in the Strait of Hormuz could result in a global food catastrophe, the FAO warned, as 20-45% of key agrifood inputs rely on the waterway. Nearly half of the world's traded urea — the most widely used fertiliser — is exported from Gulf countries via the strait, making global agriculture highly exposed. Al Jazeera / FAO

Senegal soil-health upgrade cuts locust damage and doubles yields — Scientists working with farmers in Senegal showed that improving soil health can dramatically reduce locust damage to crops. The intervention demonstrates how soil restoration can build resilience against pest swarms that threaten food supplies across the Sahel. ScienceDaily

Canadian farmers facing soaring fuel and fertilizer costs at spring seeding — Spring seeding is underway in Alberta, with farmers facing hefty increases in fuel and diesel costs during long tractor hours. Many are already worried about the 2027 crop year, since large fuel and fertilizer purchases will be made in the coming months amid Iran-war-driven input price spikes. CBC

FAO-WMO report warns extreme heat is pushing agrifood systems to the brink — Extreme heat events threaten the livelihoods, health and labour productivity of over a billion people, with agricultural workers on the frontlines. The joint FAO-WMO report finds heat stress for most livestock begins above 25°C, and notes the frequency, intensity and duration of extreme heat have risen sharply over the past half century. FAO / WMO

FAO publishes Ukraine 2026-2028 emergency agricultural recovery plan — The FAO has published its Emergency and Early Recovery Response Plan for Ukraine for 2026-2028, outlining priority actions to protect agricultural livelihoods and restore productive capacity. FAO also distributed 615 modular grain storage units to small farmers across seven frontline oblasts in 2025. FAO

FAO: 72,000 West Bank farming families need emergency agricultural aid — More than 72,000 farming and herding families in the West Bank — nearly two-thirds of all agricultural families — urgently require emergency agricultural assistance, per a new FAO survey. The findings underscore the deepening agrifood crisis in the Palestinian territories. FAO

UC Riverside robot maps soil moisture tree-by-tree for precision irrigation — A new UC Riverside system uses a robot measuring soil electrical conductivity combined with fixed sensor data to map water content across entire orchards. The technology allows growers to water specific dry trees rather than relying on guesswork — a key advance for drought-stressed California agriculture. UCR News

FAO tackles child labour in Near East and North Africa family farming — The FAO convened a regional meeting on 4 May 2026 to tackle child labour in NENA agriculture, where farming accounts for roughly 61% of all child labour cases globally. Discussions focused on exposure to chemicals, dangerous tools and extreme weather in family-based farming systems. FAO

Tropical forests recover twice as fast on nitrogen-rich soils — New research shows tropical forests can recover twice as fast after deforestation when their soils contain enough nitrogen. Scientists followed forest regrowth across Central America for decades to reach the findings, with implications for reforestation strategies. ScienceDaily

Food inflation could quadruple due to climate-driven extreme weather — A new report warns food inflation could quadruple as a result of extreme weather driven by climate change, combined with global supply disruptions and continued market volatility. The findings come amid worsening soil-erosion and water-scarcity pressures on global agriculture. Farmers Guardian