Business
X could ‘lose right to self regulate’, says Starmer
Laura CressTechnology reporter
BBCThe UK will bring into force a law which will make it illegal to create non-consensual intimate images, following widespread concerns over Elon Musk’s Grok AI chatbot.
Speaking to Labour MPs on Monday, Sir Keir Starmer warned X could lose the “right to self regulate”.
“If X cannot control Grok, we will”, he said, saying the government would act quickly in response to the issue.
The government also plans to unveil legislation to make it illegal to supply online tools used to create such images.
The BBC has approached X for comment. It previously said: “Anyone using or prompting Grok to make illegal content will suffer the same consequences as if they upload illegal content.”
It comes hours after Ofcom announced it was launching an investigation into X over “deeply concerning reports” about Grok altering images of people.
If found to have broken the law, Ofcom can potentially issue X with a fine of up to 10% of its worldwide revenue or £18 million, whichever is greater.
And if X does not comply, Ofcom can seek a court order to force internet service providers to block access to the site in the UK altogether.
In a statement, Technology Secretary Liz Kendall urged the regulator not to take “months and months” to conclude its investigation, and demanded it set out a timeline “as soon as possible”.
It is currently illegal to share deepfakes of adults in the UK, but legislation in the Data (Use and Access) Act which would make it a criminal offence to create or request them has not been enforced until now, despite passing in June 2025.
Last week, campaigners accused the government of dragging its heels on implementing that law.
Liz Kendall told the Commons that the offence “will be brought into force this week”. In addition to the Data Act, Kendall said she would also make it a “priority offence” in the Online Safety Act.
Kendall said AI-generated pictures of women and children in states of undress, created without a person’s consent, were not “harmless images” but “weapons of abuse”.
“The content which has circulated on X is vile. It’s not just an affront to decent society, it is illegal,” she said.
“Let me be crystal clear – under the Online Safety Act, sharing intimate images of people without their consent, or threatening to share them, including pictures of people in their underwear, is a criminal offence for individuals and for platforms.
“This means individuals are committing a criminal offence if they create or seek to create such content including on X, and anyone who does this should expect to face the full extent of the law.”
‘Not about’ restricting free speech
But the technology secretary said the “responsibilities do not just lie with individuals for their own behaviour” – and “the platforms that host such material must be held accountable, including X”.
She said the government would also build on measures outlined in the Crime and Policing Bill to criminalise nudification apps.
“This new criminal offence will make it illegal for companies to supply tools designed to create non-consensual intimate images, targeting the problem at its source,” she said.
“In addition to all of these actions, we expect technology companies to introduce the steps recommended by Ofcom’s guidance on how to make platforms safer for women and girls without delay.
“If they do not, I am prepared to go further.”
Legal expert Jamie Hurworth said Kendall’s comments were “an indicator of how seriously the government are now taking this issue”.
“It remains to be seen whether an overstretched police force has sufficient resources to investigate and bring perpetrators before the courts but it is important that each link in the chain – from individual creators to social media platforms – is held to account for their involvement in this type of behaviour.”
Ofcom’s investigation will examine whether X has failed to take down illegal content quickly when it became aware of it, and taken “appropriate steps” to prevent people in the UK from seeing it.
The decision follows a global backlash over Grok’s image creation feature, with both Malaysia and Indonesia temporarily blocking access to the tool over the weekend.
An Ofcom spokesperson did not give an indication on how long the investigation would take but said it would be a “matter of the highest priority”.
In a response to an earlier post questioning why other AI platforms were not being looked at, Elon Musk said the UK government wanted “any excuse for censorship”.
But Kendall refuted this.
“This is not, as some would claim, about restricting freedom of speech,” she said.
“It is about tackling violence against women and girls.”
Shadow technology secretary Julia Lopez welcomed Ofcom’s investigation, and said her party supported the government on nudification tools.
But she criticised the government over comments Kendall made last week, when she said she would back Ofcom if it blocked UK access to X for failing to comply with laws.
Ms Lopez said despite the internet being used by criminals before, websites have not been banned before.
“It is an extraordinarily serious move against a platform that can be used for good, for uncovering scandal, sparking democratic revolution, and allowing day-to-day the free exchange of ideas, including ideas we don’t like.”
Business
Stock Market Updates: Sensex Down 400 Points, Nifty Below 25,700; SMIDs Trade Mixed
Last Updated:
Indian benchmark indices, BSE Sensex and NSE Nifty, were higher at the open as investors have their eyes peeled for the US-India trade talks
Stock Market Today
Sensex Today: Indian benchmark indices — the BSE Sensex and NSE Nifty — extended their decline on Tuesday as investors stayed cautious ahead of the much-awaited US–India trade talks. On Monday, US Ambassador to India Sergio Gor had said that the two countries would engage in discussions today.
At 1:00 PM, the Sensex was trading at 83,428, down 450 points or 0.54 per cent, while the Nifty 50 slipped 128 points, or 0.50 per cent, to 25,661.
Eternal, Tech Mahindra, SBI, BEL, HDFC Bank, Maruti Suzuki, HUL, Titan Company, ICICI Bank, ITC and Axis Bank were among the top gainers, rising up to 3 per cent.
On the other hand, L&T, Reliance Industries, Tata Steel, M&M, Trent, TCS, IndiGo, Bharti Airtel and Sun Pharma were trading in the red.
In the broader market, the Nifty Midcap index declined 0.76 per cent, while the Nifty Smallcap index bucked the trend to trade 0.24 per cent higher.
Among sectoral indices, Nifty Media, IT and select financial stocks led the gains. However, most other sectors were under pressure, with Nifty Realty, Pharma and Consumer Durables emerging as the top laggards, each down over 1 per cent.
Global Cues
Asian markets were trading in the green as investors looked past geopolitical tensions in Iran and Venezuela, as well as the criminal investigation into US Federal Reserve Chair Jerome Powell. Mainland China’s CSI 300 gained 0.54 per cent, Hong Kong’s Hang Seng advanced 1.32 per cent, and South Korea’s KOSPI rose 1.04 per cent.
Japan’s Nikkei surged 3.22 per cent amid reports that the ruling Liberal Democratic Party may dissolve the Lower House this month for a snap election in February.
On Wall Street, the S&P 500 and the Dow Jones closed at fresh record highs overnight. The S&P 500 edged up 0.16 per cent, the Dow gained 0.17 per cent, and the Nasdaq climbed 0.26 per cent. Investors are now awaiting the US Consumer Price Index (CPI) for December, scheduled for release later today.
Separately, US President Donald Trump stated on Monday evening that any country doing business with Iran will face a 25 per cent US tariff.
January 13, 2026, 09:02 IST
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Business
India In Goldilocks Phase Of High Growth, Economists Urge Neutral Policy Path
New Delhi: India appears to be in a Goldilocks phase of high growth and low inflation, a report said on Tuesday, with economists urging a shift towards a near‑neutral policy.
The report from HSBC Global Investment Research said that a near‑neutral policy, combining fiscal restraint with continued monetary ease, would best support markets and the broader economy in 2026.
“A combination of tight fiscal and easy monetary policy which creates a better economic balance should be positive for all asset classes,” it said.
The research firm, however cautioned that underlying weaknesses such as insufficient corporate investment and foreign inflows must be carefully addressed.
Bond markets have already priced higher state borrowing for early 2026, and that RBI bond purchases, fiscal prudence in the budget and potential global bond‑index inclusion could attract foreign inflows, the report said.
The report further stated that equities may gain from recent reform momentum, rising nominal GDP and more reasonable valuations, and cautioned that durable gains require structural reforms to boost corporate capex and foreign investment.
Pranjul Bhandari, Chief India Economist and Strategist, argued that the research firm’s estimate suggests inflation will remain just under the 4 per cent target next year, removing pressure on the Reserve Bank of India to tighten and leaving room for further easing if growth softens.
“In fact, there is space for further easing if growth dips. And this is where we are polar opposite of what markets are currently expecting (tight monetary policy, loose fiscal policy),” Bhandari noted.
There is a lot going on globally that impacts Indian markets, such as news on tariffs and bond index inclusion, and steepening DM yield curves, she added.
The central government aims to lower public debt ratios to pre-pandemic levels by FY31, which will require continued fiscal consolidation over the next five years.
The report highlighted that such consolidation at the central level could restore balance and be offset by privatisation to limit growth drag.
Public debt ratios are expected to rise in several states despite the 3 per cent fiscal ceiling which will keep deficits in check, the report said.
Business
Charity shortlisted for helping people heat their homes
Jasmine Ketibuah-Foleyand
Alastair McKee,West of England
BBCA charity has been shortlisted for an award after helping vulnerable households keep warm during the winter months.
Gloucestershire charity Severn Wye started its Warm Homes Prescription pilot in 2022. Patients with respiratory, coronary, or complex health conditions, on low incomes, are given grants to help with their energy bills, using government funding.
The charity said the aim of the project is to help prevent the need for hospital care.
Anton Hammer, 72, who suffers from Chronic obstructive pulmonary disease said he was constantly visiting his GP with recurrent chest infections before the charity helped him.
After stopping work two years ago, following a heart attack, Hammer said he struggled to heat his home.
“You think I can’t afford to do this, so you keep the heating off. You put more layers on, or you try to heat one room in the entire house,” he said.
“It can be very depressing. It can make you feel very down.”
His GP at Brockworth Surgery put him in touch with Severn Wye who visited him at home and offered help.
“I’ve got to say they’ve been fantastic,” he added.
Hammer said his chest infections have since alleviated dramatically meaning fewer GP visits.
The ‘Warmth on Prescription’ scheme has been running alongside the NHS Retrofit project funded by NHS Gloucestershire Integrated Care Board, which provided up to £20,000 per property to install measures to improve home energy efficiency.
Both projects are finalists in the Health Service Journal Partnership Awards.
Last winter, patients on the scheme reported fewer clinical visits and fewer hospital visits, according to Severn Wye.
‘Patients feel supported’
NHS Gloucestershire deputy chief medical officer, Dr Hein Le Roux said he is “pleased to see” the partnership with the charity “recognised”.
“Patients tell us they feel more confident and supported through winter, which is exactly the impact we set out to achieve,” he said.
Winners for the Health Service Journal Partnership Awards will be announced in March.
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