The UK will join the Precision Strike Missile (PRSM) programme and allocate £190m to the project from the government’s £298bn defence investment plan.

JP Morgan Asset Management global markets strategist Raisah Rasid said robotics and autonomous-driving firms could be the next winners in AI-driven trades as large-scale adoption accelerates, particularly in generative AI. She said AI gains are spreading beyond hyperscalers and that earnings growth — especially in hardware — has been a key driver of major market returns. Rasid added KOSPI’s triple-digit 1H rally is unlikely to repeat in H2, with growth set to moderate as companies may struggle to sustain strong pricing power in hardware.

Capital Economics’ Gareth Leather says rising El Nifio-driven food price risks make Asian central banks unlikely to quickly reverse recent rate hikes. Many central banks responded aggressively to the earlier energy shock, with most hiking at least once; while lower energy prices have eased the urgency for further tightening, food carries a higher weight than energy in Asian consumer baskets, so El Nifio could keep policymakers cautious. Capital Economics continues to expect further tightening in India, Pakistan and South Korea over the coming months.