It aims to half Wales’s productivity gap with the UK as a whole

The new Plaid Cymru Welsh Government has set a key economic target of halving Wales’ productivity gap with the UK average within a decade.

Latest figures from the ONS show that output per head in Wales is around 85% of the UK level.

The productivity target is seen by the administration as achievable, given that some of the key levers needed to improve output, such as skills and education, are devolved.

However, it will still be a challenge as other nations and regions of the UK will also be seeking to improve their respective productivity rates, with AI a key driver.

Adam Price, Cabinet Minister for Enterprise, Connectivity and Energy, confirmed the target in a statement in the Senedd, saying the new administration of Rhun ap Iorwerth is committed to adopting a different approach, with a goal of bringing to an end generations of low productivity.

The national productivity goal will be delivered in partnership with businesses, trade unions, regional stakeholders and the UK Government, with a specific focus on supporting firms to scale and helping to unlock the “full potential of the Welsh economy.”

Mr Price said: “For too long, Wales has struggled to close the gap with the rest of the UK when it comes to productivity. This target shows our clear commitment to improving the lives of people living in Wales. By focusing on productivity, we will deliver higher pay, stronger businesses and thriving communities.

This goal will give direction to our new Welsh innovation and development agency, shaping how we support businesses, develop skills and invest in the foundations of a stronger, more competitive Welsh economy.

“We are determined to turn ambition into action, creating a stronger, more productive economy that delivers for people in every part of Wales.”

The last Welsh Government economic target, which was later described as only being an aspiration, was set by the former Labour Cardiff Bay administration of Rhodri Morgan, in 2000. It aimed to improved the gross value added per head gap to 90% of the UK average by 2010. However, like today it never improved and continues to languish at around 73%.

To support its productivity drive, the Welsh Government is also committed to conducting an across Wales and sector skills audit, to ensure that its support is meeting the requirements of firms seeking to expand. It is also establishing a new at arm’s length of government national development agency, which will oversee Welsh Government support and inward investment efforts. Mr Price said the precise remit and structure of the organisation is currently being worked , although it will take on business support and inward investment functions. He said it was too early to say when it could become operational. However, it is likely to based on the Transport for Wales model, which as a company of the Welsh Government, has been able to bring to expertise from the private sector.

Details of how the productivity target will be measured and monitored will be announced later in the year with a role for the proposed economic and fiscal commission.

DALLAS — Shares of ChronoScale Corporation surged more than 15% in morning trading Tuesday, climbing to $19.55 as investors continued to embrace the newly independent artificial intelligence cloud computing company’s focused strategy and leadership additions in the fast-growing AI infrastructure sector.

The sharp gain came on solid volume for the small-cap name, reflecting renewed enthusiasm for dedicated AI compute providers amid broader sector tailwinds. As of 11:34 a.m. EDT, ChronoScale shares had risen $2.58, or 15.20%, on the Nasdaq Capital Market. The move pushed the company’s market capitalization toward $70 million.

ChronoScale, which began trading independently in early May 2026 after a spin-off from Applied Digital Corp., has seen significant volatility but strong overall momentum since its debut as a pure-play accelerated compute platform for demanding AI workloads.

Strategic Spin-Off and AI Focus

The company emerged from Applied Digital’s separation of its cloud business, with Applied Digital retaining approximately 97% ownership after investing $15.75 million through a private investment in public equity (PIPE) transaction. The move created a dedicated entity focused exclusively on high-performance AI computing infrastructure.

ChronoScale operates data centers and provides accelerated compute solutions optimized for large-scale AI training and inference. Its transition into an independent public company has allowed it to sharpen its focus on GPU-based platforms and next-generation AI infrastructure demands.

The recent leadership appointment of Cenly Chen as chief executive officer and board member has been a key catalyst. Chen, who previously served as chief growth officer at Super Micro Computer, brings extensive experience in scaling AI server and compute infrastructure businesses. His appointment in early May signaled the company’s ambition to capture a larger share of the exploding AI data center market.

Market Reaction and Performance

Since gaining independence, ChronoScale shares have experienced substantial swings typical of small-cap technology companies tied to AI themes. The stock has climbed significantly from its post-spin levels, though it remains well below some earlier highs reached in late May. Year-to-date performance reflects investor bets on AI infrastructure growth despite ongoing operational challenges.

Tuesday’s trading activity aligns with positive sentiment across AI-related stocks. Peers in data center and compute spaces have also seen gains as hyperscalers and technology giants continue expanding capacity for artificial intelligence applications. ChronoScale’s positioning as a specialized provider has drawn attention from retail and institutional investors seeking exposure to this high-growth area.

Operational Background and Challenges

ChronoScale’s roots trace back to a business combination involving Applied Digital’s cloud assets and legacy operations from what was previously Ekso Bionics before the strategic pivot. The company now emphasizes sustainable, high-density compute solutions designed to handle the intensive power and cooling requirements of modern AI models.

Financial results remain in investment mode, with recent quarters showing losses as the company ramps capacity and invests in technology infrastructure. Analysts note that execution on customer contracts and utilization rates will be critical for long-term profitability. The firm benefits from Applied Digital’s continued significant ownership and strategic support.

Broader AI Infrastructure Landscape

The surge in ChronoScale shares underscores the market’s appetite for companies enabling AI expansion. Data center demand has accelerated as major technology firms race to build out capacity for training increasingly sophisticated models. Silicon carbide, advanced cooling, and high-performance networking solutions are all seeing heightened interest.

ChronoScale aims to differentiate through its accelerated compute platforms purpose-built for AI. Management has highlighted potential revenue opportunities from long-term contracts with hyperscalers and AI developers seeking specialized infrastructure.

Analyst Perspectives and Outlook

Coverage of the newly public entity remains limited, but early commentary has highlighted both opportunity and risk. Some analysts point to the strong AI tailwinds and experienced leadership as reasons for optimism, while others caution about the capital-intensive nature of the business and competition from larger players.

The company’s small float and recent spin-off status contribute to elevated volatility. Short interest and options activity have been notable, typical for names with high retail investor interest in the AI space.

Near-term catalysts could include updates on capacity utilization, new customer wins, or further details on expansion plans. Fiscal year-end shifts and upcoming earnings will provide greater visibility into operational progress.

Risk Factors

Despite the positive trading session, challenges remain. ChronoScale operates in a competitive environment where larger established data center operators hold advantages in scale and capital access. Execution risks around infrastructure buildouts, energy costs, and technology integration are significant.

Macroeconomic factors, including interest rates and technology spending cycles, could influence growth. The company’s history as a smaller entity transitioning focus also introduces integration and operational uncertainties.

Path Forward

As ChronoScale builds its independent track record, investor attention will center on its ability to convert AI market demand into sustainable revenue and margins. The recent CEO appointment and spin-off structure position the company to move quickly in a dynamic sector.

Tuesday’s gains reflect confidence in the AI compute story, but sustained performance will depend on fundamental delivery. Market participants will monitor volume, news flow, and any analyst initiations for additional signals.

With the broader technology sector remaining sensitive to AI developments, ChronoScale’s trajectory offers a microcosm of investor sentiment toward specialized infrastructure plays. The coming months will test whether the company can capitalize on its repositioning and leadership expertise amid intense industry competition.

GENEVA — Shares of STMicroelectronics N.V. climbed more than 15% in morning trading Tuesday, reaching $79.69 as investors responded to the chipmaker’s strengthened position in artificial intelligence infrastructure and recovering demand across automotive and industrial markets.

The sharp rise came on elevated volume, extending recent gains for the European semiconductor company. As of 11:45 a.m. EDT, STMicroelectronics shares had risen $10.67, or 15.46%, on the New York Stock Exchange. The move pushed the company’s market capitalization higher, reflecting renewed confidence in its growth trajectory amid the global AI expansion.

AI and Data Center Momentum

STMicroelectronics has significantly raised its revenue ambitions in the data center segment, now targeting well above $500 million for 2026 and more than $1 billion in 2027. This upward revision underscores the company’s growing role in supplying components for AI infrastructure, including power management and connectivity solutions essential for high-performance computing clusters.

The company’s strategic pivot toward AI-driven applications has resonated with investors seeking exposure to the semiconductor supply chain supporting hyperscale data centers. Management highlighted strong bookings and engaged customer programs in personal electronics and communications as additional tailwinds during its first-quarter earnings update.

Recent Financial Performance

In the first quarter of 2026, STMicroelectronics reported net revenues of $3.1 billion, exceeding expectations and marking a solid year-over-year increase. The results benefited from improving demand and contributions from strategic acquisitions, including the NXP MEMS sensor business.

For the second quarter, the company guided for revenues around $3.45 billion at the midpoint, representing sequential growth of 11.6% and year-over-year expansion of nearly 25%. Gross margin is projected at 34.8% on a GAAP basis, with management anticipating sequential improvement throughout the year as utilization rates rise.

CEO Jean-Marc Chery noted signs of broader market recovery, with pricing trends stabilizing and selective increases implemented across product lines. The company also pointed to positive developments in automotive and industrial segments, where inventory normalization has supported renewed ordering.

Automotive and Edge AI Innovations

STMicroelectronics continues advancing in the automotive sector with innovations like the Stellar P3E microcontroller, the industry’s first with integrated neural network acceleration for edge AI applications. This technology targets software-defined vehicles, enabling real-time intelligence for powertrain, advanced driver assistance systems and electrification.

The automotive and discrete group remains a core pillar, with silicon carbide power devices gaining traction for electric vehicles. Broader industrial and personal electronics segments also show resilience, supported by the company’s diversified portfolio spanning microcontrollers, sensors and power solutions.

Space and Emerging Markets

The company has set ambitious targets in the space semiconductor business, projecting more than $3 billion in cumulative revenue from 2026 through 2028. This growth is driven by demand for components in low-Earth-orbit satellite constellations, where STMicroelectronics supplies radiation-hardened and high-reliability solutions.

New product introductions, such as gallium nitride converters for efficient power applications, further expand the company’s addressable market in energy-conscious sectors including appliances and renewable energy systems.

Market Context and Analyst Views

The semiconductor industry has shown signs of stabilization after a period of inventory correction. STMicroelectronics, as a major supplier to automotive, industrial and consumer electronics markets, is well-positioned to benefit from this rebound while capturing new opportunities in AI.

Analysts have responded positively to recent earnings revisions, with consensus estimates for full-year 2026 showing upward movement. Several firms have highlighted the company’s improved margin trajectory and exposure to high-growth areas as reasons for optimism.

However, challenges persist. The company continues managing unused capacity charges and restructuring costs related to manufacturing optimization. Geopolitical tensions, trade dynamics and fluctuating end-market demand remain key variables.

Strategic Outlook

STMicroelectronics operates a vertically integrated model with significant manufacturing capabilities in Europe and Asia. Its focus on specialized technologies — including wide-bandgap semiconductors like silicon carbide and gallium nitride — provides differentiation in an increasingly competitive landscape.

Management expects full-year 2026 revenue to achieve double-digit growth, with further margin expansion as revenues scale above $4 billion per quarter. The company’s pipeline of engaged programs and new design wins supports this confidence.

Investors appear to be pricing in sustained AI momentum and automotive recovery. The stock’s performance Tuesday stands out against a mixed broader market, highlighting selective enthusiasm for semiconductor names with clear growth narratives.

Broader Industry Implications

The surge in STMicroelectronics shares reflects the market’s focus on companies bridging traditional semiconductor applications with emerging AI and electrification trends. As data centers consume more power and vehicles become smarter, suppliers of efficient power and intelligent processing solutions stand to gain.

For STMicroelectronics, Tuesday’s trading activity caps a period of positive momentum following its April earnings report. With the second quarter underway, attention will shift to execution on guidance and any incremental updates on major customer engagements.

Market participants will monitor upcoming industry events and potential commentary from major clients in automotive and technology sectors. While volatility remains a feature of the semiconductor cycle, current indicators suggest a constructive backdrop for well-positioned players like STMicroelectronics.

The company’s ability to balance near-term operational improvements with long-term strategic investments will determine whether today’s enthusiasm translates into sustained shareholder value. As global demand for semiconductors evolves, STMicroelectronics’ diversified approach and innovation pipeline position it as a notable contender in the AI-enabled future.

Nearly one in five young Britons could be out of work within little more than a year, as higher payroll taxes, a sharply rising minimum wage and the relentless march of artificial intelligence combine to shut school and university leavers out of the jobs market.

In a sobering update to its quarterly economic outlook, the British Chambers of Commerce (BCC), one of the country’s most influential business lobby groups, forecasts that the unemployment rate among 16 to 24-year-olds will climb to 17.8 per cent in 2027, up from an already uncomfortable 16.9 per cent this year. The deterioration would push youth joblessness to its highest level in well over a decade and lend fresh weight to warnings of a “lost generation” of workers.

The BCC singled out the rapid take-up of AI tools by employers, typically to handle the kind of routine, entry-level tasks that have traditionally given young people a foot on the ladder, as a leading culprit. A separate Business Matters investigation has shown how the big four accountancy firms are already slashing graduate hiring as AI replaces entry-level roles, a pattern now spreading rapidly across financial services, legal, marketing and back-office functions.

Government policy is doing little to soften the blow. The BCC believes ministers’ decisions to lift employer national insurance contributions and push through one of the largest minimum wage increases on record have made younger, less experienced staff disproportionately expensive to hire, a point business owners and payroll specialists have made repeatedly since the Treasury signalled the increased cost burden facing employers.

The findings reinforce a warning issued last week by Alan Milburn, the former Labour cabinet minister, who told ministers that without urgent intervention as many as 1.25 million young people could be classed as not in employment, education or training (NEET) by the early 2030s. Business Matters has previously reported that the NEET cohort is already nudging one million, with Office for National Statistics figures showing the share of economically inactive young people at its highest level since records began in 1992.

David Bharier, deputy director of economics and insights at the BCC, said the picture pointed to a structural, not merely cyclical, problem. “The UK is not in recession, but the economy remains trapped in a cycle where each recovery is interrupted before gaining traction, and firms go back on the defensive,” he said. “With youth unemployment approaching 18 per cent by mid-2027, the UK risks weakening the skills pipeline it needs for the next economy.”

Overall joblessness is forecast to reach 5.5 per cent next year, up from the current 5 per cent. Gross domestic product, the BCC said, will grow by just 0.9 per cent this year, 1 per cent in 2027 and 1.3 per cent in 2028, with the services sector, which now accounts for around 80 per cent of national output, doing most of the heavy lifting.

Inflation, meanwhile, is being given an unwelcome boost by surging global energy prices linked to the war in the Middle East. The BCC now sees the consumer prices index peaking at 3.8 per cent by the end of 2026, well above its previous forecast of 2.7 per cent, before easing back to 2.3 per cent next year and returning to the Bank of England’s 2 per cent target in 2028. The latest ONS data put inflation at 2.8 per cent in April, down from 3.3 per cent in March.

Faced with that mix of weak growth, rising joblessness and stubborn price pressures, the BCC expects the Bank’s Monetary Policy Committee to hold the base rate at 3.75 per cent for the remainder of the year, with its next decision due on 18 June. At its April meeting the Bank said it “stands ready to act” if inflation proves sticky, but officials are clearly mindful of the damage a further squeeze would do to a fragile labour market.

“Much hinges on the course of the Middle East conflict,” Bharier said. “Inflation is likely to edge towards 4 per cent this year, but the Bank of England faces a different scenario compared with the 2022 crisis. Weaker growth, rising unemployment and already restrictive monetary policy mean the Bank could seek to manage this without raising the interest rate and risking further damage.”

For SMEs, long the proving ground for first jobs, apprenticeships and on-the-job training, the cocktail of higher employment costs, geopolitical uncertainty and falling investment is becoming hard to swallow. The BCC expects business investment to fall by 2.2 per cent this year and a further 0.1 per cent in 2027 before recovering by 2.3 per cent in 2028. Without a meaningful shift in policy, the danger is that today’s hiring freeze becomes tomorrow’s lost decade for Britain’s young workers.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

The Oxford Properties executive is expected to join the FTSE 100 landlord by the end of November

British Land has appointed Joanne McNamara from Oxford Properties as its next chief executive.

Ms McNamara currently serves as executive vice-president of the real estate company operated by major Canadian pension fund, the Ontario Municipal Employees Retirement System.

The appointment follows five months after the FTSE 100 property owner informed shareholders that long-serving chief executive Simon Carter was departing.

Mr Carter is leaving the business to lead warehouse developer P3 Logistics Parks.

His replacement brings more than two decades’ experience in the industry and joined Oxford in 2010, leading substantial investment and development deals throughout her tenure at the company.

She is anticipated to commence at British Land by the end of November.

Ms McNamara said: “British Land is a business that I have always admired, with an impressive track record of delivering and managing best in class places across the UK and an expert team at its helm.

“I am very much looking forward to working with the board, executive committee and all of my new colleagues as we work together to build on what is already a fantastic platform for growth.”

William Rucker, chairman of British Land, said: “Joanne is one of Europe’s most respected real estate professionals.

“With her deep expertise of real estate, valuable experience in the world of private capital and a strong reputation for decisive leadership, she is exceptionally well placed to drive the business forward.” Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Looking ahead, British Land looks well-positioned, with occupancy rates sitting high and good exposure to the science and technology sector, where strong demand from AI companies has been a big tailwind.

“The group’s finances remain strong, with sufficient funding to support future growth as developments make a comeback and to maintain a respectable 6.2% dividend yield for income-focused investors.”

British Land’s share price climbed 1.9% on Tuesday.

The company owns properties across the UK, including Meadowhall shopping centre in Sheffield, the New Mersey retail park in Liverpool, Crown Point Shopping Park in Greater Manchester, Orbital Retail Park in Cannock, Teesside Park in Stockton-on-Tees and Southgate shopping centre in Bath.

This article was written by

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Amazon will hold its annual Prime Day sales event from June 23 through June 26 this year, moving one of its biggest shopping promotions out of its traditional July window as the retailer looks to capitalize on a crowded summer calendar.

The shift comes as Amazon targets consumer spending around the FIFA World Cup, Independence Day and celebrations marking America’s 250th anniversary, according to a company executive.

Prime Day generated $24.1 billion in U.S. online spending in 2025 after Amazon expanded the event from two days to four, according to Adobe Analytics.

“This year, we have the (FIFA) World Cup,” Jamil Ghani, Amazon Prime international vice president, told Reuters. “We’ve got also the 250th anniversary of U.S. independence, and so we thought this week (beginning June 22) was the best week for us to hold Prime Day.”

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Amazon’s Prime Day sales event will be held in June this year. (Isabella Falsetti/Bloomberg via Getty Images)

The FIFA World Cup runs from June 11 through July 19, while Independence Day falls on July 4. Amazon said it considers major global events, religious holidays and bank holidays when selecting Prime Day dates each year.

Amazon announced in April that Prime Day 2026 would offer Prime members discounts across categories including electronics, apparel, beauty products, kitchen goods and groceries. The event will take place in more than two dozen countries, including the United States, Canada, the United Kingdom and Germany.

AMAZON’S 30-MINUTE DELIVERY PUSH RAISES STAKES IN RACE FOR SPEED

Amazon is also pushing deeper into groceries and household essentials as it expands same-day and next-day delivery, a key part of its effort to compete more aggressively with Walmart.

Prime Day generated $24.1 billion in U.S. online spending in 2025 after Amazon expanded the event from two days to four, according to Adobe Analytics. (Justin Sullivan/Getty Images)

The Seattle-based retailer hopes customers will stock up on groceries and everyday household items ahead of World Cup watch parties and Independence Day celebrations. The company has been investing heavily in faster delivery services, including expanded same-day delivery options for perishable foods.

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Ghani said grocery items are expected to account for a larger share of Amazon deliveries in the future as consumers purchase food and household essentials more frequently than discretionary products such as electronics, apparel and beauty items.

Amazon is targeting consumer spending around the FIFA World Cup, Independence Day and celebrations marking America’s 250th anniversary. (Getty Images)

“As groceries and household essentials grow as a part of our business overall … it’ll grow as a percent of the total units that we ship,” Ghani said.

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Last year’s Prime Day event was Amazon’s largest on record, according to the company, with customers purchasing products across more than 35 categories and independent sellers reaching record sales levels.

Reuters contributed to this report. 

Britain’s flagship overhaul of zero-hours contracts could end up doing the very opposite of what ministers intend, the country’s leading HR body has warned, with employers likely to lean more heavily on self-employed contractors and fixed-term arrangements if the new rules prove too unwieldy to administer.

Responding to the Government’s consultation on its zero-hours contract reforms, a central plank of the Employment Rights Bill that recently cleared its final parliamentary hurdle, the Chartered Institute of Personnel and Development (CIPD) cautioned that complex compliance demands could ultimately push more workers into looser, less secure forms of employment.

Ben Willmott, head of public policy at the CIPD, said that while the institute supported the principle of protecting workers from one-sided flexibility, the practical detail of the reforms would make or break their success.

“Well-managed zero-hours contracts provide welcome flexibility for employers and for people who want to work but cannot commit to fixed hours, including students, carers and those managing health conditions,” Willmott said.

He stressed that the reference period used to calculate the guaranteed minimum hours owed to a zero-hours worker would be a critical battleground. “A longer reference period will be easier for employers to manage, but even with this, the new measures are likely to be extremely complex and challenging to comply with, particularly for small firms or those with fluctuations in demand.”

According to the Government’s own factsheet on zero-hours contracts, the reference window is expected to be set at around 12 weeks, although the figure remains subject to consultation. Employer groups have been pressing for a longer horizon to smooth out the seasonal peaks and troughs that characterise sectors such as hospitality, retail and care.

Beyond the question of guaranteed hours, Willmott pointed to a second compliance landmine: the requirement to give workers reasonable advance notice of shifts.

“This is only one headache for employers,” he said. “The challenge of providing reasonable advanced notice of shifts is also likely to prove difficult and require caveats to allow for issues like sickness absence.”

The concern echoes wider business worries that the legislation, while well-intentioned, has been drafted with limited regard for the operational realities of running a small or medium-sized firm — anxieties that have already prompted a third of employers to scale back hiring plans according to fresh CIPD research.

Willmott’s sharpest warning, however, was reserved for the law of unintended consequences. If the final regulations prove unworkable, he argued, employers will simply route around them.

“If the final regulations are too difficult to manage, employers will simply find other ways to achieve workforce flexibility. They are likely to rely more on self-employed contractors and fixed-term contracts, for example, potentially resulting in more rather than less insecure employment.”

That outcome would be particularly damaging for young people, who have historically been one of the biggest beneficiaries of zero-hours arrangements. Such contracts have long allowed students and early-career workers to fit paid work around studies, training or caring duties.

“This would also damage opportunities for young people who particularly benefit from zero-hours contract arrangements because they enable them to balance work while studying,” Willmott added.

The CIPD is among a growing chorus of business voices, covered in detail in Business Matters’ guide to the new Employment Rights Bill, calling on ministers to use the consultation process to soften rough edges rather than rush implementation. With staged commencement now stretching into 2027, Whitehall has time to listen. Whether it does so will determine if the reforms become a landmark for fairer work, or a cautionary tale of policy that achieved precisely the opposite of its aim.

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.