Issue #72

AI hallucinates in English courts, America and China have a plan, Blackstone plots European takeover, and more. 

News from June 5 - June 12, 2025

AI Hallucinates in English Courts

The High Court of England and Wales ruled that lawyers must use AI carefully, as it sometimes generates hallucinated sources. 

This follows two high-profile court cases in which British lawyers submitted AI-generated court documents containing fictitious citations and quotations. In one legal suit, a lawyer submitted a filing in which 40% of legal citations were fictitious.

Judge Victoria Sharp: “They did not contain the quotations that were attributed to them, did not support the propositions for which they were cited, and did not have any relevance to the subject matter of the application.” 

She ruled that such misuse of AI may face contempt proceedings, police action, the imposition of costs, and public admonition. 

Source

US Investors Buy Cheap British Startups

American investors are to purchase three British tech startups this week, taking advantage of sluggish share prices on the London Stock Exchange. This includes the semiconductor company Alphawave (£1.8 billion), quantum computing startup Oxford Ionics (£816 million), and precision and testing equipment specialist Spectris (£3.7 billion). 

This comes after several high-profile takeovers of British startups by American firms, including Deliveroo and Darktrace, as well as the recent decision by several UK tech unicorns, like Wise, to change their primary listing to New York in search of more capital and higher valuations. 

Upon the news of the takeover bids, shares in the startups increased: Spectris (69%) and Alphawave (20%). 

Source

America and China Have a Plan

After negotiating for 20 hours in London, US and Chinese officials have agreed to a deal that would see critical trade revived between the two superpowers. It awaits the blessing of Xi Ping and Donald Trump.

Trade Secretary Howard Lutnick suggested that the US would ease some of its export controls on chip design software, jet engines and student visas. In return, China would speed shipments of rare earth metals to US auto and defence firms. The countries have another 60 days to agree on a more comprehensive deal before the truce ends, including agreeing to end the flow of fentanyl and unfair trade practices.

East China Normal University professor of international relations Josef Gregory Mahoney: “We’ve heard a lot about agreements on frameworks for talks. But the fundamental issue remains: Chips vs rare earths. Everything else is a peacock dance.”

Source

Bulletin Board

• Social Media Overtakes Traditional Advertising. Ad revenue from social media channels is set to increase by 20% this year, which means social media advertising will eclipse traditional modes. Its total value is expected to double by 2030, giving it a combined worth of £278.3 billion. However, big tech companies are reaping the rewards. Last year, Meta, Amazon, Alibaba, TikTok, and Google earned 54% of all online ad revenue. Chief executive of Enders Analysis Douglas McCabe: “The journalism sector has a huge battle on its hands.” Source
• Doc Martens Profits Slump. Iconic boot-maker Doc Martens recorded a 90% drop in profits last year. Its pre-tax profits were £8.8 million, down from £93 million the previous year. The company blamed a “challenging” UK market, exacerbated by a cost-of-living crisis and economic uncertainty over the impact of US tariffs. Analysts predict profits will rise significantly over the following year. Source
• The Impact of Tariffs Has Arrived. The US saw a 20% decline in imports following the imposition of tariffs in April, the largest monthly decline in history. According to the Commerce Department report, this halved the US trade deficit. US imports from Canada and China fell to their lowest level since the pandemic, while imports from Vietnam and Taiwan surged. Exports increased by 5%. However, imports in Q1 2025 were 20% higher than the previous year. Oxford Economics: “The impact from tariffs has well and truly arrived.” Source
• Foreign Investment Leaves the UK. The UK experienced the most foreign direct investment (FDI) of all European countries, according to a report by EY. The UK received 25% of all FDI; however, it also experienced a 32% year-on-year decline. Only Italy, Spain and Luxembourg experienced an overall increase in FDI. EY UK and Ireland Financial Services Managing Partner Martina Keane: “While the UK industry is a clear leader, we cannot ignore the fact that investment levels have declined over the last year.” Source
• Blackstone Plots European Takeover. Private capital group Blackstone plans to invest at least $500 billion in private takeovers of European companies after seeing “signs of change” across the EU. Co-founder Stephen Schwarzman argued that governments are deregulating to stimulate growth, pointing to Germany’s recent use of deficit spending to finance infrastructure and defence investment. Schwarzman: “The fact that all the senior people in the different countries across Europe recognise that there is a need for change… is positive.” Source

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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