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UK secures £10bn deal to supply Norway with warships

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UK secures £10bn deal to supply Norway with warships


Jonathan BealeDefence correspondent and

Jessica RawnsleyBBC News

UK MOD Crown Copyright HMS Glasgow, aType 26 Frigate, makes its way to Scotstoun shipyard after being successfully floated on the Clyde.UK MOD Crown Copyright

The UK has secured a £10bn deal to supply the Norwegian navy with at least five new warships.

The agreement to provide Type 26 frigates will be the UK’s “biggest ever warship export deal by value”, the Ministry of Defence (MoD) said, while Norway said it would be its largest “defence capability investment” to date.

The government said the deal would support 4,000 UK jobs “well into the 2030s”, including more than 2,000 at BAE Systems’ Glasgow shipyards where the frigates will be built.

UK Prime Minister Sir Keir Starmer said the agreement would “drive growth and protect national security for working people”.

“This success is testament to the thousands of people across the country who are not just delivering this next generation capabilities for our Armed Forces but also national security for the UK, our Norwegian partners and Nato for years to come,” he added.

The deal is also expected to support more than 400 British businesses, including 103 in Scotland, the MoD said.

Speaking to the BBC, defence minister Luke Pollard called it the “biggest British warship deal in history” and “a huge vote of confidence in British workers and the British defence industry”.

But the move was criticised by some in Norway, including Tor Ivar Strømmen, a naval captain at the Norwegian Naval Academy, who said French and German frigates were superior to British.

“The British Navy builds vessels for one role,” he told Norwegian outlet NRK. “It simply has old-fashioned and quite limited air defence.”

The agreement represents a victory for the British government and defence industry over France, Germany and the United States – which were also being considered by Norway as possible vendors.

It will create a combined UK-Norwegian fleet of 13 anti-submarine frigates – eight British and five Norwegian vessels – to operate jointly in northern Europe, significantly strengthening Nato’s northern flank.

The warships will be constructed at the BAE Systems yard in the Govan area of Glasgow, where frigates for the Royal Navy are currently being built.

Scottish Secretary Ian Murray said the choice of the UK “demonstrates the tremendous success of our shipbuilding industry and showcases the world-class skills and expertise of our workforce on the Clyde”.

Norway’s Prime Minister Jonas Gahr Støre, who informed Sir Keir of the decision to select the UK in a phone call on Saturday night, said the partnership “represents a historic strengthening of the defence cooperation between our two countries”.

Støre said the government had weighed two questions in its decision: “Who is our most strategic partner? And who has delivered the best frigates?… The answer to both is the United Kingdom.”

PA Media Members of staff watch Prime Minister Sir Keir Starmer during a visit to BAE Systems in Govan, Glasgow, to launch the Strategic Defence Review.PA Media

Members of staff at BAE Systems shipyard in Glasgow during a visit by Prime Minister Keir Starmer to launch the strategic defence review

The Type 26 frigates purchased by the Royal Norwegian Navy will be as similar as possible to those used by their British counterparts, and have the same technical specifications.

They are specifically designed to detect, track, and destroy enemy submarines, with deliveries expected to begin in 2030.

UK Defence Secretary John Healey said the UK would “train, operate, deter, and – if necessary – fight together” under the defence deal.

“Our navies will work as one, leading the way in Nato, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure, and keep both our nations secure,” he added.

Citing this year’s strategic defence review, Pollard said Russia had been identified “as the principal threat to not just the UK’s security but NATO’s security”.

“A key threat of that is Russian submarines in the North Atlantic,” he told the BBC. “These new Type 26 frigates are world-class submarine hunters.”

PA Media Prime Minister Sir Keir Starmer and Defence Secretary John Healey listen to Type 26 Programme Director, BAE Systems David Shepherd during a visit to BAE Systems in Govan, GlasgowPA Media

Starmer and defence secretary John Healey speak to the Type 26 programme director David Shepherd

Eight Type 26 frigates are currently being built at BAE Systems’ Glasgow shipyards for the Royal Navy, to replace its ageing Type 23 frigates – whose service life has already had to be extended.

It is not yet clear how the Norway deal will impact the delivery of the new vessels to the Royal Navy.

A UK defence source said the plan was still to deliver all 8 Type 26 frigates to the Royal Navy within the next decade. Norway has said it wants its first Type 26 delivered by 2029.

British officials told the BBC that the sequencing of delivery for both Norway and the UK still had to be worked out.

Two of the warships, HMS Glasgow and HMS Cardiff, have been built and are currently being fitted out at a second BAE shipyard, Scotstoun. They are due to enter service in 2028.

Another three, HMS Belfast, HMS Birmingham and HMS Sheffield, are under construction.

BAE has also licensed the Type 26 design to Canada and is building the warships in Australia under contract.

As part of a £300m modernisation at BAE Systems, a new shipbuilding hall – dubbed the “frigate factory” – was opened earlier this year.

The Janet Harvey Hall, named after a pioneering female electrician, is large enough for two frigates to be built simultaneously.

The Royal Navy is also buying 5 new Type 31 General Purpose Frigates – which are being built at Rosyth.



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SIA chief set to meet Tata Sons and AI chairman N Chandrasekaran today – The Times of India

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SIA chief set to meet Tata Sons and AI chairman N Chandrasekaran today – The Times of India


MUMBAI/ NEW DELHI: Air India’s mounting losses and operational issues are leading to serious concerns among both its parent groups. Goh Choon Phong, CEO of Singapore Airlines (SIA, which has a 25.1% stake in AI) is in Mumbai and is expected to meet Tata Sons and AI chairman N Chandrasekaran on Thursday.The meeting comes in the backdrop of AI scouting for a new CEO after the resignation of incumbent Campbell Wilson. The airline is also staring at a loss of over Rs 22,500 crore in FY 2026 and has sought fresh fund infusion from Tata and SIA. The Ahmedabad crash last June and the continued closure of Pakistan airspace since Operation Sindoor, followed by US-Iran war since Feb 28, made things worse for the already deep-in-losses Maharaja.AI did not comment on the likely losses for last fiscal and whether it has sought fund infusion from the promoters. While reviving AI, which spent its last few years as a PSU in abject penury till Tata acquired it along with AI Express on Jan 27, 2022, was never expected to be easy, the slow pace of change and mounting losses, have now put the strain on promoters.While SIA is seeing its profits decline due to AI losses, Tata Sons is under pressure over mounting losses of its new unlisted ventures, especially AI and Tata Digital. Addressing their concerns and sending a clear message to AI employees, Chandrasekaran had last week told them to “be precise on costs and remain grounded in the reality of the situation”.People in the know said Tatas knew turning around AI would be tough. That’s why they did not bid for the airline in 2018. The terms changed in 2021 in the second round and they successfully bid for it, with Ajay Singh of struggling-to-survive SpiceJet being the other bidder. “There is serious concern in SIA over both financial and reputational loss that AI is causing. Whether Thursday’s meeting between Choon Phong and Chandra is to decide on the new CEO or the hiccups AI is facing, will be discussed threadbare. There is also talk of SIA planning to pull out of AI but that seems unlikely,” said a person in the know.



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Chancellor cuts bills for thousands more firms as she continues Washington talks

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Chancellor cuts bills for thousands more firms as she continues Washington talks



Rachel Reeves has expanded plans to cut electricity bills for thousands of UK manufacturing firms as she continues talks in Washington focused on the economic fallout from the Iran conflict.

The Chancellor, who is in Washington for the International Monetary Fund (IMF) spring meetings, said the plan will help UK businesses compete and create jobs despite the uncertain economic backdrop.

During her trip, she has stepped up criticism of US-Israeli military action in Iran, saying war was a “mistake” and has not made the world a safer place.

Her comments came as she was due to meet US treasury secretary Scott Bessent, who has referred to the impact of the war as “short-term volatility for long-term gain” which he said would prevent Tehran developing a nuclear weapon.

Ms Reeves also cautioned against knee-jerk responses to the cost-of-living crisis triggered by the war in a joint statement with international counterparts at the IMF.

In a bid to help businesses hit by rising costs, a plan announced last summer to cut electricity bills by up to 25% for more than 7,000 UK businesses will be expanded to cover 10,000 firms.

The British Industrial Competitiveness Scheme (BICS) will cut costs by up to £40 per megawatt-hour from 2027 by exempting businesses from certain extra charges that currently support green energy and back-up power supply systems.

An additional one-off payment in 2027 will be given to an extra 3,000 businesses, including companies in the automotive, aerospace, steel and pharmaceuticals sectors.

The Government said it will also cover the support firms would have received if the BICS had been in place from this month.

The scheme is expected to be worth up to £600 million per year from next April.

Ms Reeves said: “This Government has the right plan for the economy: backing British industry, cutting electricity costs and building a stronger, more resilient future.

“Today’s announcement will cut energy bills for over 10,000 manufacturers, helping businesses to compete, win and create good jobs across the country, and to deliver our modern industrial strategy.”

Business Secretary Peter Kyle said: “We are a Government of action, and when global instability puts businesses under pressure we’ll always do what’s needed to support them and ensure Britain’s resilience.

“By extending the reach of BICS by 40%, we’re acting decisively to tackle the number one issue that businesses face head-on.”

Household energy bills are forecast to increase this year because of the conflict pushing up global oil and gas prices, while motorists are already feeling the impact of higher costs at the pump.

Ms Reeves has signalled that any energy bill help this year will be targeted at the poorest households, rather than a universal bailout of the type offered by Liz Truss when she was prime minister after the Russian invasion of Ukraine.

The White House has said talks are ongoing about holding fresh face-to-face negotiations between the US and Iran and that Washington had not yet formally requested an extension of the ceasefire due to expire next Tuesday.



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Goldman Sachs bond traders stumbled as Wall Street rivals thrived: ‘A fire is being lit under’ them

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Goldman Sachs bond traders stumbled as Wall Street rivals thrived: ‘A fire is being lit under’ them


David Solomon, CEO Goldman Sachs, speaking on CNBC’s Squawk Box at the World Economic Forum in Davos, Switzerland on Jan. 22nd, 2026.

Oscar Molina | CNBC

When Goldman Sachs executives were asked about disappointing results in the firm’s fixed income division this week, they made it sound as though the trading environment was simply not in their favor.

Fixed income revenue fell 10% in the first quarter, coming in $910 million below analysts’ expectations, according to StreetAccount data. It was an unusually large miss for one of Goldman’s flagship Wall Street businesses.

“It was basically just a function of the overall environment making markets,” CFO Denis Coleman told an analyst on Monday after the bank’s earning report. “We remain actively engaged with clients, but our performance in rates and mortgages was relatively lower.”

But as nearly all of Goldman’s rivals, including JPMorgan Chase, Morgan Stanley and Citigroup, posted blockbuster results for first-quarter fixed income in the days that followed, one thing became clear to Wall Street: Goldman Sachs’ vaunted fixed income traders had underperformed.

JPMorgan saw fixed income trading revenue jump 21% to $7.1 billion, the bank’s second-biggest haul ever. Morgan Stanley, where fixed income is less a priority than equities, posted a 29% jump in the bond business. Citigroup saw bond trading revenue jump 13% to $5.2 billion.

Since before the 2008 financial crisis, when Lloyd Blankfein led Goldman Sachs, the firm’s fixed income division had been the envy of Wall Street. Goldman was known for its trading prowess, a reputation forged in periods of dislocation when its desks generated outsized gains. The bank’s identity as a trader’s firm — one expected to outperform in turbulent times — has endured in the decade-plus since.

That makes the first-quarter stumble particularly notable.

“It seems that something went wrong at Goldman in fixed income,” said veteran Wells Fargo analyst Mike Mayo, who called the bank’s results “worst-in-class.”

“I’d imagine that at Goldman, a fire is being lit under the traders, managers and risk overseers in FICC after such an underperformance,” Mayo said in an interview with CNBC, using an acronym standing for fixed income, currencies and commodities, the formal name for that business.

The prevailing theory is that Goldman was caught offsides on trades tied to interest rates in the first quarter, according to several market participants who asked for anonymity to speak candidly.

That’s because of the positioning that many Wall Street firms had at the start of this year, when markets were expecting the Federal Reserve to cut interest rates at least twice in 2026, these people said.

But after the price of oil surged with the advent of the Iran war, roiling expectations for inflation, the markets began pricing those cuts out, with some investors even bracing for the possibility of rate hikes this year.

Fixed income was the sole blemish on a quarter in which Goldman Sachs exceeded expectations handily, thanks to the firm’s equities traders and investment bankers. Despite the earnings beat, the firm’s shares dropped as much as about 4% on Monday following the report.  

Goldman Sachs declined to comment. But on Monday, CEO David Solomon sought to put the quarter’s performance into context:

“When I look at the scale and the diversity of the business, it’s performing very, very well,” Solomon said during the company’s conference call. “Some quarters, it’s going to be stronger here, stronger there.”

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