FT News Briefing
Honey, I shrunk the economy
May 1, 2025
Microsoft's earnings surprise analysts as demand for cloud services booms. Meanwhile, the U.S. economy shows signs of contraction, raising questions about the impact of tariffs. Spain grapples with a massive power outage, affecting daily life and sparking investigations into its causes amid rising renewable energy usage. As England prepares for local elections, the Conservatives brace for potential losses in a competitive political landscape. Tune in for insights on economics, energy, and the shifting tides of political power!
10:30
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Quick takeaways
- Microsoft's stronger-than-expected earnings showcase the rising demand for cloud services driven by artificial intelligence advancements, boosting investor confidence.
- The massive power outage in Spain underscores the urgent need for resilient energy infrastructure and careful management of renewable energy integration.
Deep dives
Microsoft's Strong Earnings Amid Economic Uncertainty
Microsoft reported first quarter earnings that exceeded analyst expectations, indicating robust demand, particularly from its cloud services, which saw a 20% revenue increase year-over-year due to the rise in artificial intelligence. This positive news led to a significant boost in Microsoft shares, which jumped by up to 6% in after-hours trading. Despite the overall growth, the American economy faced a contraction of 0.3% in the first quarter, raising concerns about its health. However, analysts noted that domestic consumption and investment remained strong, suggesting resilience amidst the economic challenges highlighted in the GDP report.
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