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The US economy backs Elon Musk’s vision for sending people to Mars, the moon and beyond with SpaceX. Elon Musk’s rocket, telecommunications and artificial intelligence company SpaceX has listed on the Nasdaq stock exchange with a value of $2.2 trillion; making him the world’s first trillionaire in the process. Other AI companies, including Open AI and Anthropic have plans to follow suit but what does that mean for the US economy and global financial stability?
In this episode, Justin speaks to Ryan Mac – an investigative technology reporter for the New York Times who has extensive experience covering Elon Musk and other leaders in the AI field. SpaceX’s public valuation has made millionaires of many of its past and current employees and generated around $85 billion for the company; money that Elon Musk says is essential to fulfill the company’s plans to build bases on the Moon, put data centres into orbit and send human beings to Mars. But what happens if those plans remain unfulfilled?
As more companies offer shares to investors and the general public, Justin and Ryan explore whether America is gambling on the promise of AI? And is the US economy becoming dangerously reliant on one industry?

HOSTS:
• Justin Webb, Radio 4 presenter

GUEST:
• Ryan Mac – New York Times investigative technology correspondent

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This episode was made by Tom Gillett, Grace Reeve, Alix Pickles and Purvee Pattni. The technical producer was Ben Andrews. The series producer is Purvee Pattni. The senior news editor is Sam Bonham.

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The Nifty IT index plunged to 26,634.50 on Friday, the lowest level seen by the sectoral index since April 2023. It is currently the top sectoral loser on the market today. Infosys shares led losses, crashing nearly 9%, while those of TCS, Mphasis, LTI Mindtree, Tech Mahindra, Persistent Systems and HCL Tech tumbled 4-6%.

This follows an 11% crash in Accenture’s share price on Wall Street after the consulting major revised its FY26 revenue growth guidance to 3-4%, compared with its earlier outlook of 3-5%. The company also projected fourth-quarter revenue of $17.75-18.4 billion, falling below Street expectations of $18.47 billion, according to LSEG data.

Accenture’s softer outlook may have retriggered worries that enterprises remain cautious on discretionary spending related to IT consulting and digital transformation projects, even as investments in artificial intelligence and cybersecurity continue. Indian IT companies derive a major portion of their revenue from the US economy. Hence, worries around reduced discretionary spending may have led to the sharp selloff in the stocks on Dalal Street.

Also read: TCS, Infosys, Wipro, other IT stocks crash up to 9% as Accenture lowers FY26 guidance

The sharp sell-off in Accenture overnight is the kind of move that confirms rather than introduces what has been a slowly building structural reality, said Harshal Dasani, Business head at INVasset PMS. “The Nifty IT index falling 6% is the predictable read-through. The valuation story is now the more uncomfortable conversation. Indian IT services trading at 16-18 times earnings with single-digit revenue growth expectations is expensive, not cheap,” he added.

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The honest framing is that traditional IT services is increasingly looking like a sunset business in its current form, according to Dasani. “The stance on Indian IT remains firmly cautious. Selective interest stays reserved for credible AI-native and hyperscaler-aligned firms; the broader sector deserves significantly lower multiple expectations,” he added.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, however differed in his opinion, saying that buying in IT stocks can emerge at lower levels since valuations are becoming attractive after the sharp correction.Also read: Why Accenture’s warning sparked a Rs 1.35 lakh crore meltdown for TCS, Infosys, other IT stocks

Key technical levels to watch out for Nifty IT

The Nifty IT Index plunged over 6%, breaking below its previous swing low of 27,078 recorded on May 14. Technically, the index is trading below its key short and long-term moving averages, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

He highlighted that the index’s RSI has slipped below 40, signaling increasing bearish momentum, while the DI- has crossed above DI+ on the ADX indicator, highlighting strong seller dominance. The 27,450–27,500 zone is expected to act as a key resistance and the trend is likely to remain bearish as long as the index stays below this zone, according to the analyst.

Also read: Why is market falling today?

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

John Roberts does not do diplomatic. The founder and chief executive of AO World has rounded on the government after the online appliances retailer confirmed it is shifting the bulk of its customer contact operation to South Africa, a move he laid squarely at the door of higher employment taxes and a rising minimum wage.

The company, best known for selling everything from laptops to fridges and washing machines, has already offshored around 150 sales roles, banking savings of roughly £2 million so far and pointing to annualised cost reductions of about £4 million. A further 50 jobs are due to be created in South Africa, with most of AO World’s customer contact work expected to be based overseas by next March.

Roberts, who built the business from a £1 pub bet in 2000, said the retailer was carrying an extra £8.5 million in annual costs after the government’s decision last April to lift employer national insurance contributions and push through an above-inflation increase to the minimum wage.

“The brutal truth is that, of course, these roles could have been in the UK,” he said. “When you make these staff ever more expensive and ever more inflexible, that’s what businesses are going to do. We’ve got a political class that doesn’t understand business. They live in an economic fantasy land.”

It is a complaint that will resonate well beyond Bolton. The combined weight of a 15 per cent employer national insurance rate and a sharply lower secondary threshold, introduced in April 2025 alongside a 6.7 per cent rise in the National Living Wage to £12.21 an hour, has reshaped the maths for any firm with a large, lower-paid workforce. AO World is simply one of the larger names to act on it, joining the likes of Morrisons, which has blamed Labour’s “policy choices” for a wave of store closures, and JCB, which paused a 500-job hiring drive as the tax changes bit.

For smaller employers the squeeze is arguably sharper still, with the lower threshold dragging part-time and entry-level roles into charge for the first time. Guidance from the government-owned British Business Bank underlines how tightly wage floors and payroll taxes now interact, a dynamic Business Matters has tracked as employers absorb a national insurance bill running billions of pounds above Treasury forecasts.

Yet the political broadside lands on a set of results most chief executives would happily own. On an adjusted basis, pre-tax profit rose a better-than-expected 16.1 per cent to a record £50.5 million in the year to 31 March, helped by a turnaround at the contract mobile phone arm and at MusicMagpie, the used-electronics specialist acquired in 2024. Revenue climbed 11.4 per cent to £1.3 billion, also ahead of expectations, with a 17 per cent jump in television sales in May as shoppers geared up for the football World Cup.

The board rewarded investors accordingly, unveiling a £10 million special dividend and confirming plans to return a further £20 million this year, split evenly between another special dividend and a fresh share buyback. The numbers vindicate the “pivot to profitability” Roberts has pursued since the pandemic-era online boom faded, a period in which AO’s shares were battered by wobbling consumer confidence, rising labour costs and fierce competition.

That reset has been deliberate. Roberts has spent recent years taking what he calls “the grit out of the machine”, stripping out costs and simplifying the group after it considered shutting its loss-making mobile division and, in 2022, closed its German operation following a strategic review. The post-pay mobile business is now profitable after improved commercial terms with network partners and expanded tie-ups with Samsung and Lebara, while analysts at Peel Hunt flagged a return to profit at MusicMagpie.

The wider picture is one of a business in rude health. AO World, a constituent of the FTSE 250, added 720,000 new customers over the year to take its base to 13.3 million, and has wiped out its debt, swinging to £16.4 million in net funds from liabilities of around £35.9 million a year earlier.

Investors, though, were unmoved on the day. Shares gave up an early gain of 2.6 per cent to close down 4.69 per cent, or 4½p, at 91½p, with the stock off roughly 3 per cent amid heightened geopolitical tensions since February.

Management, too, struck a note of caution, warning that the external environment remained “uncertain, with ongoing geopolitical pressures impacting both consumers and input costs across the economy”. Profit for the 2027 financial year is expected to come in around £54.6 million, broadly flat on the year.

For now, the headline AO World would rather you remembered is the record profit. The one its founder wants ringing in ministers’ ears is the 200 jobs that, on his telling, did not have to leave Britain at all.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

The industrialist said the company will file its DRHP with SEBI later today. This comes after he announced Jio’s IPO plans at the company’s previous AGM last year.

What Mukesh Ambani said about Jio IPO

Speaking at the company’s 49th Annual General Meeting (AGM) on Friday, Mukesh Ambani said, “This is a deeply emotional moment for me, for the entire Reliance Family, and millions of its shareholders. The relationship Reliance shares with its shareholders is a deep and sacred relationship founded on pride, trust, respect, and shared growth.”

The industrialist added that the proposed listing of Jio will show the world that India can build technology companies of global scale, global capability, and global value. “I assure you, and all prospective new investors, that a brighter future awaits Jio,” he further said.

Mukesh Ambani announced that Reliance Jio Infocomm Chairman Akash Ambani, Reliance Retail Ventures Executive Director Isha Ambani Piramal and Reliance Industries Executive Director Anant Ambani will lead the IPO process.

“The Jio revolution is truly a result of the courage, creativity, and commitment of thousands of young Indian engineers. Before Jio, many believed that India could only import technology from the world. Our engineers proved otherwise. Today, Jio is not merely integrating technology. It is creating original technology,” Mukesh Ambani said.

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Also read: Reliance Jio to file IPO DRHP today, plans fresh issue of up to 27 crore shares

Here’s what Akash Ambani said

Reliance Jio Infocomm Chairman Akash Ambani said that the telecom major’s user base has crossed 524 million, while its 5G user base has crossed 268 million, the largest for any single-country operator outside China. “Jio is evaluating the development of a sovereign Low Earth Orbit satellite constellation for India, while also partnering with leading global constellation providers. Jio is also building its own ground station infrastructure in India – strengthening India’s atma nirbharta in space,” he added.
The proposed Jio IPO is expected to overtake NSE’s nearly Rs 30,000 crore and Hyundai Motor India‘s Rs 27,870 crore (about $3.3 billion) public offering to become the country’s largest-ever IPO. The listing plans, however, have undergone multiple changes over the past year.Also read: LIVE updates from RIL AGM

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)