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JD Sports shareholders hoping for progress amid US consumer weakness

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JD Sports shareholders hoping for progress amid US consumer weakness



JD Sports investors will be hopeful the retailer can show signs of progress next week after sales came under pressure at the start of the year.

The impact of US tariffs and its overall performance in the US will be particularly in focus when it provides a half-year trading update on Wednesday August 27.

Shares in the business have ticked slightly higher over the past six months but are still firmly down over the past year after a profit warning in January and broad caution over consumer demand.

In its previous update in May, the London-listed sportswear specialist revealed that like-for-like sales dipped by 2% over the quarter to May 1.

However, organic sales grew by 3.1% in the quarter as new store openings helped to offset soft demand from shoppers.

In the UK and Europe, sales were slightly stronger after positive weather conditions at the start of the year.

Jonathan Pritchard, analyst at Peel Hunt, said the business will face “tougher” comparatives in the second quarter and highlighted that “wider global trends have not been helpful”.

He added that he believes the company is “in a very good place” strategically and could benefit from new product releases from Nike, as the key supplier partner seeks to rebound following recent weakness.

Other analysts, however, indicated that recent troubles at Nike and weak consumer sentiment in the US will present a continued challenge for JD Sports.

Danni Hewson, head of financial analysis at AJ Bell, said: “Ongoing worries over momentum (or lack of it) at Nike, which faces greater competition from the likes of On and Hoka, continue to weigh, even if Nike is by no means JD Sports’ only brand partner.

Worries about wider trends in consumer spending and the impact of the Trump tariffs also remain an issue.”

Sales in the US were firmly lower in the first quarter, so investors will be hoping that the company can point to an improving trajectory despite pressure from tariffs.

Bosses at JD previously warned that the cost of goods and services in the US was likely to rise because of tariffs, which could result in price increases which may then weigh further on demand.

Shareholders will also be hoping for any indication as to the retailer’s profit outlook, although JD is likely to hold this back until a more thorough update next month.

The group is currently predicted to reveal profits of around £890 million for the current financial year, down slightly on the previous year.



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ICAI in talks to provide data for sovereign AI – The Times of India

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ICAI in talks to provide data for sovereign AI – The Times of India







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Paraguay – the Silicon Valley of South America?

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Paraguay – the Silicon Valley of South America?


Jane ChambersBusiness reporter, Asunción, Paraguay

Gabriela Cibils Paraguayan tech boss Gabriela Cibils smiles at the cameraGabriela Cibils

Gabriela Cibils wants to help Paraguay attract big tech from the US and elsewhere

Gabriela Cibils is on a mission – to help turn Paraguay into the Silicon Valley of South America.

When she was growing up in the landlocked country, nestled between Brazil and Argentina, she says the nation “wasn’t super tech focused”.

But it was different for Ms Cibils, as her parents worked in the technology sector. And she was inspired to study in the US, where she got a degree in computing and neuroscience from the University of California, Berkeley.

After graduating she spent eight years working in Silicon Valley, near San Francisco, with roles at various American start-ups.

But rather than staying permanently in the US, a few years ago she decided to return home to Paraguay. She’s now helping to lead efforts to build a large and successful tech sector that puts the country of seven million people on the world map – and attract some of the globe’s tech giants.

AFP via Getty Images Water gushing out of the giant Itaipu Dam on the Paraná River between Paraguay and BrazilAFP via Getty Images

The giant Itaipu Dam produces 90% of Paraguay’s electricity needs

“I saw first hand the impact that technology can have on your life,” says Ms Cibils. “After being exposed to such a different world [in Silicon Valley], it’s my responsibility to bring that mindset back and combine it with the talent I see in Paraguay.”

She is now a partner at global technology and investment firm Cibersons, whose headquarters is in Paraguay’s capital Asunción.

While most countries would love to build a world-class tech sector, Paraguay has a distinct advantage in one regard – an abundance of cheap, green electricity.

This is thanks to 100% of its generation now coming from hydroelectric power.

This is centred on the giant Itaipu Dam on the Paraná River, which forms part of the border between Paraguay and Brazil. This huge hydroelectric power station, the largest in the world outside of China, supplies 90% of Paraguay’s electricity needs, and 10% of Brazil’s.

In fact, such is Paraguay’s surplus of electricity that its electricity prices are the lowest in South America.

And it is the world’s largest exporter of clean energy.

The Paraguayan government hopes that the country’s abundance of cheap, green electricity will attract global tech firms increasingly focused on the massive energy demands of AI computing.

“If you want to install any technology investment like AI data centres, keep in mind hydroelectric power is both renewable and steady,” says Paraguayan software development entrepreneur Sebastian Ortiz-Chamorro.

“Compared to other renewable energy sources like wind or solar, that have their ups and downs, it’s much more attractive for creating data centres or any other electro intensive activity that requires a steady electricity source.”

He adds that in addition to Itaipu, and Paraguay’s other large state-owned hydroelectric plant, the Yacyretá Dam, private companies can easily build their own smaller facilities.

A map showing the location of Paraguay's two main hydroelectric dams

On a visit to California last year Paraguay’s President Santiago Peña spoke with companies like Google and OpenAI to encourage them to invest in Paraguay. It remains to be seen if such industry giants open large operations in the country.

Minister of Technology and Communication Gustavo Villate is working closely with the president on the continuing efforts.

“We have the youngest population. We have a lot of renewable green energy. We have low taxes and economic stability,” he says proudly.

I’m taken on a tour with the minister of a planned new digital park near Asunción’s main airport. It’s currently green fields and some army barracks.

Mr Villate unfurls plans to show off the lakes, a childcare centre and other buildings which he says should be ready in under two years.

“The government are going to invest around $20m (£15m) for the first stage, but the idea is for private companies to invest the rest,” he says.

Even though the park isn’t ready yet, Mr Villate says the collaboration already happening between the public, private and university sectors is key to building an ecosystem to attract foreign investors.

The government thinks the country’s young population will be a key attraction, and able to provide a large tech workforce. The average age in Paraguay is 27.

Vanessa Cañete Vanessa Cañete looks at the cameraVanessa Cañete

Vanessa Cañete says Paraguay is working hard to train more young people in technology

But more young people will need to be trained. The technology minister says the new digital park will also be home to The University of Technology, which is a joint venture between Taiwan and Paraguay.

Meanwhile, there are other initiatives to train young people in the country. “We are working really hard to create a mass of software engineers, programmers and everything you need to provide software services,” says Vanessa Cañete, president of trade group Paraguayan Chamber of the Software Industry.

Ms Cañete says she is also passionate about encouraging more women to study computer engineering. In 2017 she set up Girls Code, a non-profit association which aims to close the tech gender gap.

It organises programming and robotics workshops for teenagers and young women, with more than 1,000 receiving some sort of training to date.

Ms Cañete adds that software developers are also given English lessons for up to four years to improve their communication with overseas firms.

The people I met are brimming with positivity about what Paraguay has to offer the tech world, but they are also pragmatic.

Ms Cibils says there are still “growing pains” for foreign investors, with issues like bureaucracy, which can hold things up adapting local contracts to standardised international ones.

But she is adamant that “if you put innovation at its core and leverage all the benefits that the country has I think Paraguay can be a superpower”.



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Five carmakers go on trial over emissions cheat claims

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Five carmakers go on trial over emissions cheat claims


Emer MoreauBusiness reporter

Getty Images A close up of a white car's exhaust pipe emitting fumesGetty Images

A major lawsuit against five leading carmakers accused of cheating on emissions tests is set to begin at the High Court on Monday.

The trial is the latest chapter of what has become known as the “dieselgate” scandal, with the companies facing allegations they used software to allow their cars to reduce emissions of harmful gases under test conditions.

Lawyers say the case is the largest class action in English and Welsh legal history, and could eventually involve 1.6 million car owners.

The five carmakers – Mercedes, Ford, Peugeot/Citroën, Renault and Nissan – all deny the accusations.

The five have been chosen by the court as lead defendants to be tried first as the case is so big.

Mercedes, Ford, Peugeot/Citroën, Renault and Nissan have been accused by 220,000 car owners of misleading them over emissions tests.

But depending on the outcome of this case, nine other carmakers are facing similar claims.

The dieselgate scandal first emerged in September 2015, when the US Environmental Protection Agency accused Volkswagen of installing software – known as “defeat devices” – on diesel cars to lower readings of the cars’ nitrogen oxide emissions.

In 2020, the High Court ruled that Volkswagen had used defeat devices in breach of European Union rules to pass emissions tests.

Volkswagen settled a class action out of court, paying £193m to 91,000 British motorists.

The company has so far paid out more than €32bn (£27.8bn) over the scandal, mostly in the US.

The High Court will decide whether systems installed in diesel cars by the five carmakers were designed to cheat clean air laws.

It is alleged the “defeat devices” allowed a car to identify when it was in a test scenario. It would then run its engine at below normal power and performance levels in order to record lower readings of nitrogen oxides.

Lawyers for the motorists will claim they were deceived about how environmentally friendly the vehicles were, and that the cars still on the road are continuing to emit dangerous levels of pollution.

Although the trial begins on Monday, a judgement is not expected until summer 2026. If the court finds against the carmakers, a further trial to determine levels of compensation is expected to begin in autumn 2026.

Martin Deigh of Leigh Day, which is one of the 22 law firms representing drivers, said: “A decade after the Dieselgate scandal first came to light, 1.6 million UK motorists now get their chance to establish at trial whether their vehicles contained technology designed to cheat emissions tests.”

He said that if the allegations against the car firms are upheld in court it “would demonstrate one of the most egregious breaches of corporate trust in modern times”.

“It would also mean that people across the UK have been breathing in far more harmful emissions from these vehicles than they were told about, potentially putting the health of millions at risk.”

The companies involved have said the claims against them are without merit.

A spokesperson for Mercedes said the mechanisms used in tests were “justifiable from a technical and legal standpoint”.

Renault and Stellantis, which owns Peugeot and Citroen, said the vehicles it sold were compliant with regulations at the time.

Ford said the claims had “no merit” and Nissan said it was “committed to compliance in all markets in which we operate”.



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