The Business 2026: Sunshine or a gathering storm?
Jan 8, 2026
Richard Fletcher, Business Editor at The Times, and Katie Prescott, Technology Business Editor at The Times, join the discussion on the challenging prospects for 2026. They unpack the surprising resilience of the FTSE 100, driven by gold and defense sectors. Richard delves into the sluggish UK economy, while Katie highlights the tech sector's struggles with AI and infrastructure. They also explore the potential of high-profile US tech IPOs and the looming risks of the AI bubble. Predictions abound as they caution about youth employment impacts.
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Journalists Admit Big 2025 Surprises
- Katie was surprised by NVIDIA's market-cap surge from $3tn to $5tn over the year and underpredicted its rise.
- Richard admitted he underestimated gold's rally and later adjusted coverage accordingly.
Stagnant Growth With Rising Unemployment
- Economists expect UK growth to be weak, around 1–2% in 2026 with unemployment rising to ~5–5.5%.
- Most economists still expect at least two Bank of England rate cuts in 2026, easing borrowing costs.
UK Tech Is Thriving But Lacks Infrastructure
- UK tech remains strong in startups and AI firms despite listings often moving to the US and infrastructure constraints at home.
- Data centre power costs and planning resistance are bottlenecks hindering large-scale AI infrastructure growth in the UK.