The Item Club forecast that South Wales and the Humber will the hardest hit parts of the UK

Britain is expected to lose 163,000 jobs this year amid the economic woes caused by the Iran war with lower income regions set to be hit hardest, according to a report.

The Item Club’s latest regional outlook warns that two of the UK’s lowest income regions – South Wales and the Humber – will suffer the most painful jobs market woes in the next year or so because of sharp energy price rises.

They are heavily reliant on manufacturing and construction industries, which Item Club cautions will shed jobs in response to higher costs and supply disruption from the Middle East conflict.

The report is predicting jobs to drop by 5,700 in South Wales and by 2,800 in the Humber over 2026.

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Tim Lyne, economic adviser to the Item Club, said: “Some of the lowest income regions will feel the biggest effects of the manufacturing and construction sectors reducing headcount in the face of rising energy prices and supply chain disruption.

“While consumers in these areas typically have less rainy-day savings, which will reduce spending in the retail and hospitality sectors.”

Overall it forecasts UK employment will decline by 0.4% this year, equivalent to 163,000 job losses on a net basis.

This will be driven by a pull back in consumer spending, the soaring cost of fuel, energy, materials and ingredients, as well as disruption to shipping.

The Bank of England warned late last month the rate of UK unemployment could hit 5.6% this year, up from 5.2% currently, in its more gloomy scenario for the impact of the war.

The Item Club said as households rein in discretionary spending in the face of a surge in the cost of living, the retail and hospitality sector will suffer the biggest slowdown across Britain’s major cities.

The independent forecasting group predicts that employment in London will drop by 25,000 this year as its retail and hospitality sector slows, with a 12,500 reduction in Birmingham, 9,800 drop in Leeds and 6,200 decline in Glasgow.

There may be some bright spots, however, with Cambridge set to see employment growth in 2026, while Belfast and Edinburgh are expected to see relatively limited job losses.

Mr Lyne said: “Across the UK, the jobs market is going to soften, but it’s looking especially fragile in South Wales and the Humber as they’re particularly exposed to manufacturing businesses that are seeing big increases in their costs of materials.

“Resilience will come in places like Cambridge where the tech sector is based.”

The report said that while publicly-funded sectors – such as education, public administration and human health and social work – are expected to hire more jobs over the year, this will not be enough to offset wider losses.

It also warns over a widening gap in living standards across the UK caused by the Iran war.

Low income areas will see households suffer the steepest hikes in the cost of living, as more of their spending goes on essentials, such as food, fuel and energy bills, which are set to see big price rises.

Households in cities such as Newcastle, Belfast and Birmingham spend as much as 13% of their disposable income on energy and food, compared to less than 9% for an average household in London, according to the report.

This could see these cities left particularly exposed if the Iran war is not resolved soon, the Item Club said.

A UK Government spokesman said: “Recent figures show that there was an improvement in the labour market at the beginning of the year with unemployment falling below 5%, and 332,000 more people in work than a year ago.

“But we cannot escape the effects of the war in the Middle East which are likely to feed through to prices and employment in the coming months.

“We will do everything we can to support the country through this period, including by slashing energy bills by up to 25% for 10,000 manufacturers.

“Our mission for clean power by 2030 will get us off the rollercoaster of fossil fuel prices, to cut bills for businesses and households for good.”

The train operator will transition back into public ownership under Great British Rail

The measure of success for the soon-to-be-nationalised rail operator serving passengers between Devon and London Paddington will rest on its capacity to deliver “efficient and punctual” services, according to a Devon MP.

The government confirmed on Friday (May 8) that transport secretary Heidi Alexander had exercised a contractual right to issue an expiry notice to GWR, establishing that its agreement with the Department for Transport (DfT) will end on December 13 this year.

From that point, services will be operated by Great British Railways, the state-owned rail company.

Supporters are hopeful that public ownership will deliver an improved service, though one Devon MP said he and his colleagues would be “closely monitoring” whether that proves to be the case.

“The proof of the rail service will be in the journey,” said Richard Foord, the Liberal Democrat member for Honiton & Sidmouth.

“Public or private, people want trains that are efficient and punctual.

“That will be the test that we Liberal Democrats and other passengers will apply to the nationalised service.”

A DfT spokesperson said the government was “delivering on its commitment to bring services back into public ownership and put passengers, not shareholders, at the heart of our railways”.

GWR was privatised in 1996 as part of the break up of British Rail, originally launching under the name Great Western Trains, before rebranding as First Great Western in 1998. FirstGroup has held the franchise ever since, renaming it GWR in 2015. A GWR spokesperson confirmed the company would “continue to work closely with the DfT as we move into public ownership”.

“Throughout this process, our priority will be maintaining a punctual, reliable service for customers while continuing to support regional growth and connectivity across our network,” the spokesperson added.

NEW YORK — ServiceNow Inc. (NYSE: NOW) shares rose modestly Monday morning to $91.85, up 0.71%, as investors digested the company’s major AI announcements from last week’s Knowledge 2026 conference and steady execution in the enterprise software market.

The workflow automation and AI platform leader has been navigating a challenging environment for SaaS stocks this year, but fresh product launches around autonomous AI agents and expanded partnerships are helping stabilize sentiment. The modest gain comes after a volatile period in which the stock has faced pressure from broader rotation out of high-growth technology names.

Knowledge 2026 highlights drive optimism

At its flagship customer event in Las Vegas last week, ServiceNow unveiled significant expansions to its Autonomous Workforce platform, introducing new AI specialists for IT, customer service, employee workflows, and security operations. The company also highlighted deeper integrations with Nvidia, Microsoft, Google Cloud and Lenovo, positioning its platform as a central “AI control tower” for enterprise reinvention.

CEO Bill McDermott and President Amit Zavery emphasized a shift from experimental AI to production-ready autonomous systems. New capabilities like ServiceNow Otto and the Context Engine aim to unify fragmented enterprise data and enable end-to-end automated processes with human oversight.

Q1 results provide foundation

ServiceNow reported solid first-quarter 2026 earnings on April 22, with subscription revenue of $3.67 billion, representing 19% year-over-year growth in constant currency. The company beat the high end of guidance across key metrics and raised its full-year outlook, signaling confidence despite a tougher macroeconomic backdrop for enterprise spending.

Current remaining performance obligations (cRPO) grew 21% in constant currency, demonstrating healthy demand for its core platform and emerging AI offerings. Operating margins remained strong at 32% non-GAAP, reflecting disciplined execution.

AI strategy gains traction

ServiceNow’s heavy investment in agentic AI — systems that can think, act and complete complex workflows autonomously — appears to be resonating with large enterprises seeking productivity gains without losing control. The company’s real-time data foundation and Workflow Data Fabric were highlighted as critical enablers for reliable autonomous operations.

Analysts note that while competition in the AI space is intensifying, ServiceNow’s deep enterprise relationships, strong data governance and workflow expertise give it a defensible position. The platform’s ability to orchestrate AI across multiple business functions differentiates it from more narrow point solutions.

Valuation and market context

At current levels near $91–$93, ServiceNow trades at a premium valuation typical for high-quality SaaS leaders, though it has faced pressure this year amid broader concerns about growth deceleration in enterprise software. Monday’s modest uptick reflects cautious optimism following the Knowledge 2026 showcase.

Some investors continue rotating out of legacy SaaS names toward pure AI plays, but ServiceNow’s ability to embed AI deeply into mission-critical workflows has helped it weather the rotation better than some peers.

What analysts are saying

Wall Street consensus remains generally positive, with many firms maintaining Buy or Outperform ratings. Price targets cluster around $110–$130, suggesting meaningful upside if the company delivers on its AI vision and sustains growth momentum. Recent conference feedback has been constructive, with customers expressing strong interest in the new autonomous capabilities.

Risks ahead

Challenges remain. Macroeconomic uncertainty, longer sales cycles for large deals, and intensifying competition in the AI agent space could pressure results. Foreign exchange headwinds and potential delays in large on-premise deals (particularly in certain regions) are also factors to monitor.

However, ServiceNow’s track record of consistent execution, high customer retention and expanding platform adoption provide a solid foundation. The company’s focus on “agentic business” — where AI handles complex, multi-step processes — positions it well for long-term enterprise transformation trends.

Looking forward

As the year progresses, investors will watch ServiceNow’s ability to convert strong interest in its AI offerings into accelerated revenue growth. The second half of 2026 will be critical as new products ramp and enterprises increase investment in autonomous workflows.

Monday’s modest gain reflects a market that remains selective but continues to reward companies demonstrating clear AI differentiation and execution. For ServiceNow, the path forward centers on translating conference buzz and product innovation into sustained business momentum.

The enterprise software giant’s steady performance amid broader sector volatility underscores its resilience and the growing importance of AI-powered workflow platforms in modern business operations.

Saudi Arabia’s national oil company said its quarterly profit rose 25% as it increased exports via a pipeline that bypasses the Strait of Hormuz, after war in the Middle East disrupted shipping through the vital waterway.

Saudi Arabian Oil Co., which is known as Aramco and is the world’s top oil exporter, posted a net profit of $32.5 billion for the three months ending March 31, up from $26 billion in the same period last year.

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One of Lenskart’s early institutional investors has pared its stake in the company in open market on Monday. A regulatory disclosure filed with stock exchanges showed Alpha Wave Ventures II LP sold 4.3 crore shares, equivalent to 2.46% stake, in Lenskart through an open market transaction after crossing the 2% disclosure threshold on May 8.

Before the sale, Alpha Wave Ventures II and persons acting in concert together held 12.37 crore shares, or 7.13% stake in Lenskart. Following the transaction, their combined holding has come down to 8.07 crore shares, translating into 4.67% stake in the omnichannel eyewear retailer.

As per the disclosure, Alpha Wave Ventures II’s direct holding has dropped from 3.7% to 1.24%, while its affiliate Alpha Wave Ventures LP continues to hold 3.43%.

Based on Lenskart’s disclosed equity capital of 173.64 crore shares, the sale of 4.3 crore shares represents one of the larger secondary stake transactions in the company in recent months.

Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform, addressing a structurally underpenetrated eyewear category in India (53% of population impacted, modest 35% penetration).

Lenskart has built strong moats in a difficult-to-scale category through a centralized, highly automated manufacturing facility and logistics network, strong backward integration, which provides significant cost advantage, large omnichannel presence, leveraging technology to ease constraints in scaling up and house-of- brands architecture spanning mass to premium eyewear, to achieve its goal of making quality eyewear accessible and affordable.
Motilal Oswal expects Lenskart to deliver a CAGR of 25%/53% in pro forma consolidated revenue/pre-IND AS EBITDA, largely driven by volume growth, product margin improvement, and 625 bp operating leverage-driven margin expansion over FY25-28 (320 bp over 9MFY26-FY28).

The broker initiated coverage on Lenskart with a Buy rating and a target of Rs 600, premised on DCF-implied 55x FY28E. “Our valuations for Lenskart are at a premium to other leading retailers, but we believe the multiples are justifiable, given Lenskart’s superior growth profile, limited organized competition and long growth runway,” it said recently.

Glas, a new Mediterranean restaurant and bar in Falmouth, is set to transform an area its owner says has been blighted by homelessness and drug use

The ownerof a new restaurant in Cornwall claims it will revitalise a “forgotten corner” of a town in the Duchy that has been plagued by homelessness and drug misuse. He said he had discovered used needles, smashed glass pipes, empty drugs bags and has even been pricked by a discarded needle himself.

Despite his pledges to transform the area, several neighbours have objected to a premises licence application for Glas, a new Mediterranean restaurant and bar in Falmouth, citing concerns about noise in a residential neighbourhood.

Due to the objections, the application by Glas Falmouth Ltd will be considered by a Licensing Act sub-committee at Cornwall Council next week.

Work is currently under way to transform a former Victorian public toilet built into the wall at Dunstanville Terrace into the new establishment. It sits close to the Royal Cornwall Yacht Club and Greenbank Hotel, with views across the Carrick Roads waterway towards Flushing.

The premises, which will offer Mediterranean and Levantine influenced dishes, will accommodate 24 diners inside and an outdoor seating area with roughly 16 covers.

The licensing application states: “Glas is intended to operate as a well-managed, food-and-drink-led venue, serving local residents and visitors in a relaxed and welcoming environment. While food will be available throughout trading hours, the premises will also offer bar service and a social space for customers to enjoy drinks responsibly.

“The proposed hours for alcohol sales and the use of the external area have been deliberately set at sensible levels, with early cut-offs outdoors, to ensure the prevention of public nuisance.

“The application also seeks permission for occasional live music, such as acoustic performances and community-focused events. Any such activities will be low-key, managed responsibly and will finish at reasonable hours. Noise levels will be actively monitored and appropriate control measures are detailed within the operating schedule.”

Neither Devon and Cornwall Police, Cornwall Fire and Rescue nor Falmouth Town Council have raised any objections to the application. However, a handful of local residents remain opposed.

Their comments include: “I do hope this application will be rejected and we can look forward to families, young couples, children and dog walkers continuing to enjoy the area without disturbance. There are very few such areas left in Falmouth, especially that front the water, please leave our public spaces public.

“We already hear music from the Greenbank Hotel, both from inside the hotel lounge when they host occasional parties, but especially from the tent that they erect on Greenbank Quay in the summer which has no sound proofing. Live music or recorded music at this new café will create additional noise in a largely residential area.

“Many people supported the idea of the old public toilets being put to good use as a café during the day, but more live music late into the evening in a largely residential area where residents are getting up to go to work is not appropriate.

“There’s already the yacht club (which causes no noise issues) and the Greenbank Hotel, this causes problems with noise currently with music on occasions. Patrons currently can cause a noise nuisance when leaving so any further additions will just add to the current problems.”

‘We’re here to bring back to life a forgotten corner of our town’

Joe Pizey, one of the Glas team, has responded to each of the four objectors and offered to meet with them in person.

He said: “We know full well that this particular corner of Falmouth town has not been used by local people for the last three years, in fact in the warmer months it’s been solely home to a small gang of homeless people living in tents.

“I myself have spent hours scanning the area and removing used needles, broken glass pipes and empty (what I assume are) drug bags. I even leant up against an interior window ledge and was met with a prick to the back of my arm from a broken needle that had been posted through the galvanised window grates.

“I want to stress that it’s in our interest as local residents to maintain the beauty of this area beyond our boundaries. We’ve been overwhelmed by comments from local residents regarding the improvements we’ve already achieved. The palm trees are as much of a ‘tent deterrent’ as they are a welcome addition to the gardens in the eyes of the authorities and local people alike.

“We’re here to bring back to life a forgotten corner of our town and actively tackle antisocial behaviour as I hope you agree we’re achieving already.”

Mr Pizey added: “We’ve been overwhelmed by local support from residents, residents that have seen first hand the improvements we’ve already made to the public space. Every day we are stopped by locals that share their excitement and gratitude.

“We’ve reached nearly 90,000 viewers on our Instagram and we’ve got over 1,200 Falmouth/Cornwall-based followers online that are all as supportive as the public we meet in person.”

The premises licence application is set to be determined at the council meeting on Wednesday, May 13.