UK inflation hits 15-month high as utility bills soar


By AFP
May 21, 2025


UK regulators allowed private companies to hike household bills from April - Copyright AFP Frederic J. BROWN

Ben PERRY

Britain’s annual inflation rate surged more than expected in April as energy and water bills rose sharply, official data showed on Wednesday.

The Consumer Prices Index soared to 3.5 percent last month, up from 2.6 percent in March, the Office for National Statistics said in a statement. Analysts’ consensus forecast had been for a jump to 3.3 percent.

At 3.5 percent, the headline rate was the highest since the beginning of 2024, the ONS noted.

“I am disappointed with these figures because I know cost of living pressures are still weighing down on working people,” finance minister Rachel Reeves said in a statement.

UK regulators allowed private companies to hike household bills from April, taking into account movements in oil and gas markets and indebted water providers.

“Significant increases in household bills caused inflation to climb steeply,” ONS acting director general, Grant Fitzner, said in a statement.

“Gas and electricity bills rose… compared with sharp falls at the same time last year.”

He noted that “water and sewerage bills also rose strongly… as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year”.

Energy bills are expected to drop from July, however, following recent heavy falls to oil prices in the wake of US President Donald Trump’s tariffs blitz, according to analysts.

Businesses were additionally hit in April by a tax hike and rise to the minimum wage, which both took effect last month having been introduced by the Labour government following its July election victory that ended 14 years of Conservative rule.

Tory spokesman on the economy, Mel Stride, blamed “Labour’s economic mismanagement” for the surge to inflation.

“Families are paying the price for the Labour… choices,” he added, as businesses pass on higher costs to consumers.



– Bank of England –



Analysts said the latest data could see the Bank of England ease the pace at which it has been cutting interest rates in recent months.

“The BoE’s next move is far from straightforward,” noted Richard Flax, chief investment officer at wealth manager Moneyfarm.

“The central bank is likely to remain cautious, potentially delaying rate cuts until there’s clearer evidence that inflationary momentum is genuinely easing.”

The BoE earlier this month cut its key interest rate by a quarter point to 4.25 percent as the threat of US tariffs starts to weigh on economic growth.

It followed three reductions spread over the previous eight months.

High-flying young electricians wire UK energy switch


By AFP
May 20, 2025


In the UK, National Grid recruitment is at full power as its electricity network adapts for renewables - Copyright AFP Darren Staples

Olivier DEVOS

Perched 45 metres (148 feet) high, young apprentice electricians replace a connection atop a pylon. In the UK, National Grid recruitment is at full power as its electricity network adapts for renewables.

As new production sites multiply, particularly for wind and solar power, the privately-run company that owns the high-voltage pylons and cables in England and Wales said it is implementing “the largest overhaul of the electricity grid in generations”.

“It’s quite fun and exciting really,” Becky Hodgson, an overhead lines trainee, enthused at the prospect of “connecting” the UK’s future energy needs.

At the National Grid training centre in Eakring, a village in central England, 25-year-old Hodgson unwinds rope from a winch at the foot of a large pylon.

To the sound of an engine and pulleys, a suspended walkway rises towards her classmates.

Hailing from near Newcastle in northeast England, a region famous for its coal mining heritage, Hodgson is delighted to be part of the nation’s new energy chapter.

“It’s ticking all the boxes for me,” said the apprentice whose grandfather mined coal, which up until recently was used to fire British power stations.

“From a young age I’ve always been really into climbing, and adventurous pursuits,” Hodgson, sporting a fluorescent orange vest and blue hard hat, told AFP.

– ‘Massive challenge’ –

With the UK one of the most advanced countries in Europe in terms of renewable energy, National Grid plans to invest £35 billion ($47 billion) by 2031 to transform its electricity network.

The installation of new pylons, often favoured over underground or submarine cables owing to their lower cost, is causing friction among local residents across the country.

Faced with growing demand for electricity and the need to source energy where it is produced, “we need more wires”, insisted Zac Richardson, chief engineer at National Grid.

The company has seen the number of training days surge 75 percent over three years, driven largely by growth in staff.

“Will we be able to train enough? It’s a massive challenge,” said Richardson.

“There’s advanced investment going in, not just here, but with our key contractors as well, to ensure that the workforce is ready.”

National Grid estimates that 55,000 new hires will be needed in the coming years, across various trades, both within its own ranks and among its partners and subcontractors.

– Explosion –

A siren suddenly sounds in a substation, close to large machines bristling with lightning arresters.

Then an explosion — signalling a test of a pyrotechnic circuit breaker, a device that can quickly cut a high-voltage circuit.

“You have to cover your ears automatically… when you work in a substation,” laughed Lara Eken, a graduate substation engineer.

The 23-year-old said she has come to learn about the workings of “a really in-depth technical system”, whose number is multiplying with the expansion of the network.

Cables extending from the large pylon are lost in the distance — but they lead nowhere. For safety reasons, the training facilities are disconnected from the network.

A power line apprenticeship lasts three years.

“Everything crunches around the safety aspect first, so it’s baby steps,” training instructor Tom Norris, easily identifiable by his red helmet, told AFP.

“You get them just climbing the tower first” before tackling more complicated tasks like hoisting equipment, he added.

Norris said finding recruits is not a problem.

“We’re taking on more apprentices than we ever have. We’ve always got lots of interest on the recruitment day so we’re picking from lots and lots of good candidates.”

Cyberattack costs UK retailer Marks & Spencer £300 mn


By AFP
May 21, 2025


Marks and Spencer said information stolen could include names, dates of birth, home addresses and telephone numbers - Copyright AFP Chris DELMAS

Ben PERRY

British clothes-to-food retailer Marks and Spencer on Wednesday said a cyberattack disrupting its online service is set to last through to July and hit group profit by around £300 million ($404 million).

Marks last week revealed that some personal data of its customers had been stolen in a cyberattack that has crippled its online services for weeks.

“In Fashion, Home & Beauty, online sales and trading profit have been heavily impacted by the necessary decision to pause online shopping, however stores have remained resilient,” Marks said in a statement.

“We expect online disruption to continue throughout June and into July as we restart, then ramp up operations.”

The impact on annual group operating profit is estimated at around £300 million, “which will be reduced through management of costs, insurance and other trading actions”, the retailer added.

The news came as Marks on Wednesday reported operating profit before adjusting items of £985 million for its financial year to the end of March.

Following the update, its share price dropped 2.5 percent at the start of trading in London.

Group operations have since Easter been hampered by a ransomware sting which forced the retailer to suspend online sales, contactless payments at stores and even recruiting operations.

Marks said information stolen could include names, dates of birth, home addresses and telephone numbers. However, it did not include “useable payment or card details”, nor account passwords. 

The company reported the incident to relevant government authorities and law enforcement.

“There’s still a big unknown regarding any potential fines on Marks and Spencer from the Information Commissioner’s Office, which enforces data protection regulation” in Britain, noted Dan Coatsworth, investment analyst at trading group AJ Bell.

Taking into account the way the fine is calculated and previous penalties handed down to UK companies for data breaches, Marks could take a further hit totalling around £550 million, he added. 

– ‘Crime investigation’ –

Britain’s National Crime Agency told the BBC it is investigating a series of cyberattacks including on luxury department store Harrods and the Co-op food chain.

“We are looking at the group that is publicly known as Scattered Spider, but we’ve got a range of different hypotheses,” Paul Foster, head of the NCA’s national cybercrime unit, told a BBC documentary.

The BBC said on its website “the hacks have been carried out using DragonForce, a platform that gives criminals the tools to carry out ransomware attacks.”

Despite the Marks attack having a bigger impact, chief executive Stuart Machin described it as only “a bump in the road”.

He added: “It has been challenging, but it is a moment in time, and we are now focused on recovery, with the aim of exiting this period a much stronger business.

GRIFT

Trump Organization breaks ground on $1.5-bn Vietnam project


By AFP
May 21, 2025


Eric Trump, son of US President Donald Trump, makes a speech during the groundbreaking ceremony for the Trump International, Hung Yen resort and golf course project in Hung Yen province on May 21, 2025 - Copyright AFP STR

Eric Trump attended a groundbreaking ceremony in Vietnam Wednesday for a $1.5-billion luxury resort and golf course due to be developed by his father US President Donald Trump’s real estate group.

The Trump Organization, which builds luxury developments around the world, has come under scrutiny, with critics accusing Trump of leveraging his political position for personal financial gain.

Eric Trump, an executive vice president of The Trump Organization, and his wife Lara attended the event, as well as local partner the Kinhbac City Development Corporation (KBC).

Heavy security surrounded the event in Hung Yen province, 40 kilometres (25 miles) southeast of Hanoi, where the complex, reportedly featuring a 54-hole course and residential villas, will be built.

Hundreds of farmers watched the event from afar, mostly standing on a dyke overlooking the farms of oranges, pomelos, peach blossoms and kumquat trees that will be cleared for the luxury complex.

Do Thi Lieu, a 62-year-old farmer who had been given compensation for land that is now part of the development, told AFP that she was happy the Trumps were here but was worried she would now have nothing to do.

“We want him to arrange jobs for us,” she said



– ‘Incredible city’ –



Eric Trump is also due to scout locations later this week for a potential tower project in Ho Chi Minh City, Vietnam’s southern business hub.

Project director Charles Boyd-Bowman said in a meeting with Vietnam’s Prime Minister Pham Minh Chinh in March that his group aimed to finish the golf resort in March 2027, before Vietnam hosts the Asia-Pacific Economic Cooperation (APEC) summit.

Vietnam and the United States are engaged in trade talks after President Trump threatened a 46 percent levy on Vietnamese goods as part of his global tariff blitz.

Trump visited the Vietnamese capital in 2019 for his abortive second summit with North Korean leader Kim Jong Un.

He described Hanoi at the time as an “incredible city”, praising Vietnam for “the job they’ve done — economic development”.

Vietnam jails 23 people over rare earths exploitation

By AFP
May 21, 2025


Defendants stand during their trial for illegal exploitation and exports of rare earths at the People's Court in Hanoi on May 21, 2025 - Copyright AFP STR

A Vietnamese court on Wednesday jailed 23 officials and business people over the illegal exploitation and export of rare earths.

The trial comes after the US Geological Survey (USGS) this year significantly revised down its estimate of rare earth deposits in Vietnam, which it once considered the world’s second largest.

The nine-day trial in Hanoi saw verdicts handed down to 27 defendants, including former Deputy Minister of Natural Resources and Environment Nguyen Linh Ngoc, who was given three years in jail for “violating state regulations causing wastefulness”.

Others were given a range of prison sentences — with 16 years being the highest — for a number of offences, including violation of regulations on natural resources exploitation and causing environmental pollution.

Four people were given suspended sentences.

According to the court, the case concerning the exploitation, trade and export of mineral resources was “especially serious”.

The court said that a firm called Thai Duong Company was unlawfully granted a mining licence for rare earth exploitation in Yen Phu mine in northern mountainous Yen Bai province between 2019 and 2023.

Defendants involved — including environment officials as well as chief accountants and executives at various companies — sold the rare earths and iron ore from the mine for close to $30 million, much of it to China.

USGS slashed this year its estimate of Vietnam’s rare earth reserves from an estimated 22 million tons to 3.5 million, threatening its ambitions to compete with Beijing in a sector crucial to high-tech devices.

The revision meant the country dropped from the world’s second largest reserve holder to the sixth, behind China, Brazil, India, Australia and Russia.

USGS describes mineral reserves data as “dynamic”.

Reserves may be reduced as ore is mined or the feasibility of extraction diminishes, or they may continue to increase as additional deposits are developed, USGS says.

Rare earths are a group of 17 heavy metals that are abundant in the Earth’s crust across the globe.

But mining the metals requires heavy chemical use that results in huge amounts of toxic waste and has caused several environmental disasters, making many countries wary of shouldering the heavy financial costs for production.

Each of the rare earths is used in industry and found in a variety of everyday and high-tech devices, from light bulbs to guided missiles.

G7 finance chiefs begin talks under strain of Trump tariffs


By AFP
May 21, 2025


The gathering of G7 finance ministers and central bank governors in Canada could find less agreement this year amid economic worries stemming from US President Donald Trump's tariffs - Copyright AFP Cole Burston/

Beiyi SEOW

G7 finance leaders exchanged pleasantries before tough discussions Wednesday, seeking to restore stability in the face of economic turbulence from US President Donald Trump’s punishing tariffs — and to strengthen support for Ukraine.

The gathering of finance ministers and central bank governors from the Group of Seven nations in Canada is seen as a test of cohesion among the advanced economies, as Trump’s trade policies threaten to drag down economic growth.

Once broadly aligned, the grouping — comprising of Britain, Canada, France, Germany, Italy, Japan and the United States — could struggle for unity amid the upheaval caused by Trump’s trade wars.

The US president has spoken of annexing northern neighbor Canada, which holds the G7 presidency this year.

But the mood was cordial early Wednesday as leaders came together for a group photograph at a welcome ceremony against a mountainous backdrop in Banff, in the western province of Alberta.

US Treasury Secretary Scott Bessent exchanged greetings with Japanese Finance Minister Katsunobu Kato on the podium, and both sides are expected to meet on currency issues and other topics.

Bessent’s counterparts are seeking common ground and a lowering of temperatures with the United States on trade, while sources briefed on US participation said Bessent is likely to raise issues like China’s non-market practices and excess industrial capacity.

The G7 is also expected to discuss potential fees on low-value imports from China.

“Let’s go to work,” Canadian Finance Minister Francois-Philippe Champagne declared as leaders headed into meetings, including sessions on the global economy and situation in Ukraine.

The gathering of G7 finance leaders runs from Tuesday through Thursday.

Champagne told at a press briefing Tuesday that Ukrainian Finance Minister Sergii Marchenko’s presence in Banff “sends a strong message to the world” that members are recommitting to support the country against Russia’s invasion.

Marchenko told reporters he would seek during the gathering to reiterate Ukraine’s position on the need for further pressure on Russia.



– ‘Stability and growth’ –



For his part, Champagne said the G7’s role is to “restore stability and growth,” and he told AFP in an interview that he was cautiously optimistic ahead of meetings despite trade turmoil.

He stressed that “everyone wins” when trade rules are “fair and predictable,” expressing his belief that Canada can serve as a bridge among members in a turbulent time.

On Bessent and the pressures from US trade policy, Champagne told reporters that colleagues are eager to speak with the US Treasury chief and discuss frankly how all sides can work together.

This week, all eyes will be on whether the G7 can find common wording despite their differences.

A French official earlier said that although Canada’s presidency hopes to issue a communique, France would not accept “watered down” language.

A source briefed on US participation said a consensus should align with Trump administration priorities as well.

“It is a significant G7 existentially,” said Ananya Kumar, a deputy director at Washington-based think tank the Atlantic Council.

“I don’t think in any of the past years, people have questioned the US’s relationship with the other G7 member states as much as they have in the last 100 days,” she told AFP ahead of the gathering.

“The big theme is going to be how do we prevent global instability, how do we find consensus in this chaos?”

Canadian host of G7 finance talks ‘optimistic’ despite trade turmoil


By AFP
May 20, 2025


Canadian Finance Minister François-Philippe Champagne speaks at a press conference during the G7 Finance Ministers and Central Bank Governors' Meeting in Banff, Alberta, Canada - Copyright AFP Paul ELLIS

Canada’s Finance Minister Francois-Philippe Champagne expressed cautious optimism Tuesday at the start of a G7 finance leaders’ gathering in his country, even as the advanced economies grapple with fallout from trade turbulence.

His comments came as finance ministers and central bank governors of the Group of Seven economies — the United States, Japan, Germany, Britain, France, Italy and Canada — meet for three days in Banff, in western Canada.

As he prepared to welcome his counterparts, Champagne told AFP the world’s economies are at a crucial moment in history, adding that Canada’s priority in its G7 presidency is to “restore stability and growth.”

“The G7 has always been at the heart of major global issues, and it’s up to us to take up this challenge,” he said in an interview.

The unity of the G7 has been shaken since Donald Trump’s return to the White House in January, with the US president unleashing punishing tariffs on allies and adversaries alike.

The wide-ranging levies have also sparked fears of a global economic slowdown, with economists warning they could fuel inflation and weigh on growth.

“We need to go back to basics: the G7 has always played an important role on the macroeconomic level, and brought impetus to the global economy,” said Champagne, who invited his Ukrainian counterpart Sergii Marchenko to open the meetings Tuesday.

Champagne stressed that “everyone wins” when trade rules are “fair and predictable.”

He believes that Canada can serve as a bridge between G7 members in a turbulent time.

Since returning to the US presidency, Trump has sent shock waves across markets and the global economy as he slapped blanket tariffs on most US trading partners and targeted imports including those of steel and aluminum.

He has also threatened higher levies on economies including the European Union, although he has allowed a temporary halt on these higher tariffs.

Productivity and efficiency: Lamborghini trumps Ferrari


By Dr. Tim Sandle
May 20, 2025

DIGITAL JOURNAL


A Ferrari car drives through Santiago's Lo Barnechea neighbourhood.

 — © AFP/File Yuki IWAMURA

On the 6th of May 2025, both Ferrari and Lamborghini published their Q1 2025 results indicating a strong beginning of the year and demonstrating the impact of their recent hybrid model launches. In light of this, to what extent are such companies generating revenue and net profit per employee?

Building on the success of the Ferrari 296 GTB and 296 GTS, both twin-turbo V6 hybrid models, Ferrari has introduced its latest high-performance variant, the 296 Speciale, according to a report by Best Brokers sent to Digital Journal.

Lamborghini also reported strong results in the first quarter of 2025, driven largely by the launch of its hybrid lineup: the Revuelto, its first V12 plug-in hybrid supercar, and the Urus SE, an electrified version of its flagship SUV.

However, when comparing the two companies on an annual basis, clear differences emerge in their strategies, revenue per employee, and units sold. Productivity measures point to key differences.

Productivity per employee refers to how efficiently a business generates output, often measured as the ratio of output to employee input.

Lamborghini racing ahead of Ferrari

Our comparison of the two automotive companies reveals that in 2024, Lamborghini sold 4.1 cars per employee, nearly twice as many as Ferrari’s 2.5 cars per employee. This difference is largely due to Lamborghini’s significantly smaller workforce. Yet, despite having fewer employees, Lamborghini’s total number of cars sold were only 22.3% less than Ferrari’s, highlighting its higher production efficiency.

This is evident in more detailed analysis. In 2024, Ferrari sold 13,752 cars, equating to roughly 2.5 cars per employee based on its workforce of 5,435. Meanwhile, Lamborghini sold 10,687 cars, but with a significantly smaller headcount, this translates to 4.1 cars per employee. In Q1 2025, Lamborghini delivered 2,967 cars, 626 fewer than Ferrari in the same period. This accounts for 1.1 cars per head for Q1 2025, compared to 0.7 for Ferrari.

Profit per car sold

While Ferrari’s 2024 revenue of €6.7 billion is more than double Lamborghini’s €3.1 billion, when looking at revenue per employee, the two companies are remarkably close, €1.23 million per employee for Ferrari versus €1.18 million for Lamborghini.

In Q1 2025, Ferrari reported net revenues of €1.8 billion, translating to approximately €498,190 per car sold. In comparison, Lamborghini generated €895.2 million in revenue, or around €301,775 per vehicle.

Ferrari ranked as the automotive company with the highest net profit per employee in 2024. With a net profit of $1.58 billion and a workforce of 5,435, it earned approximately $291,403 per employee. On average, Ferrari generates $1 million in net profit every five hours, equivalent to $180,303 per hour and over $4.3 million per day.

Hybrid: A path for growth?

The data reveals that while both companies rely on embracing hybrid technology, they are executing very different strategies. Ferrari sells fewer cars per employee but generates significantly more annual revenue per unit. Lamborghini, on the other hand, has greater production efficiency, selling more cars per employee.

Both companies are just €55,000 apart when it comes to annual revenue per employee, despite Ferrari generating more than double the total revenue of Lamborghini. The narrow gap points to how Lamborghini’s output is maximised with a smaller workforce, while Ferrari’s larger team supports not only its road car production but also its racing team and lifestyle brand.

Adidas, Puma family feud to be turned into TV series


By AFP
May 20, 2025


Adidas and Puma still have rival factories in their hometown in southern Germany - Copyright AFP CHRISTOF STACHE

Adam Plowright

The bitter brotherly feud that sparked the creation of sports-shoe brands Adidas and Puma in the same small German town in the 1940s is to be turned into a television series with the help of family archives, its producers announced Sunday.

Hollywood-based film producer No Fat Ego is backing the project, which has the blessing of the family behind the Adidas empire founded by Adolf “Adi” Dassler.

It will delve into one of the most fascinating fraternal blow-ups in corporate history, which pitted Adi against his brother Rudolf (“Rudi”) who went on to create rival Puma.

The two men jointly ran a family-owned footwear company before falling out during World War II, with their post-conflict animus splitting their town of Herzogenaurach to this day.

Scriptwriter Mark Williams, behind the hit Netflix series “Ozark”, has been hired to lead the project and is currently going through Dassler family home videos and memorabilia to work on the story.

“Everybody knows the brands, but the story behind them is something we don’t really fully know,” Williams told AFP at the Cannes film festival.

One of the most sensitive areas — particularly for the reputations of the multi-billion-dollar footwear companies today — will be how the brothers are portrayed during the war period.

Both became members of the Nazi party in the 1930s, as was customary for the business elite at the time.

Rudi went to fight, however, and was arrested by Allied forces on his return to a defeated Germany.

“Adi stayed home and tried to keep the company alive,” Williams added.

Their factory was seized as part of the war effort and converted into a munitions plant.

The series promises to be a “Succession-type drama between the family” set over several generations, Williams explained, comparing it to the earlier hit HBO series.

– Hollywood backing –

The head of No Fat Ego, Niels Juul, who has produced Martin Scorsese’s most recent movies, said he was originally drawn to the story after learning about the Dassler brothers’ collaboration with legendary black American runner Jesse Owens.

Partly thanks to their innovative spiked shoes, Owens became one of the stars of the 1936 Berlin Olympics which Hitler had hoped would showcase white German supremacy.

No Fat Ego intends to develop the series with full editorial independence before offering it to streaming platforms.

“We want to have the creative control, and Mark has to have absolute silence and quiet to do what he does,” Juul told AFP.

Quantum economy: Beyond the hype and reality


By Dr. Tim Sandle
DIGITAL JOURNAL
May 21, 2025


Despite their volatility and concerns over the huge quantities of electricity involved in trading them, cryptocurrencies like Bitcoin and Ethereum have soared in popularity in recent years - Copyright AFP -

Amazon has joined the quantum-computing race alongside Microsoft and Google, CNBC reported this week. However, many analysts think that the biggest opportunities in AI and quantum will not come from the usual tech giants alone. This includes Anders Indset—a thought leader and deep-tech investor.

According to Indset, the race between Microsoft (Majorana 1), Google (Willow) and Amazon (Ocelot) in early 2025 is only the beginning of a series of breakthroughs that will now switch from scientific to economical impact. Startups building software, applications and enabling ‘full stack’ like SandboxAQ, IonQ, Rigetti Computing, PsiQuantum and Swiss based Terra Quantum are already showing today how breakthroughs will have massive implications on security, energy, and business optimization.

The race is on – AI-driven biotech, materials science, and quantum security will create massive disruptions in the next 5 – 10 years.

Indset is the Founder and Chairman of Njordis Group, a driving force behind initiatives like the Quantum Economy, and a sought-after international speaker on exponential technologies and the future of humanity. along with renowned physicist Dr. Florian Neukart, Anders is also co-author of the new book Ex Machina: The God Experiment, which bring together philosophy and quantum physics to explore the hypothesis that our universe may be part of a chain of simulations.

Recently featured in InformationWeek and Observer on the future of quantum, Indset tells Digital Journal:

“Quantum computing’s commercial readiness is still in a nascent phase. Investors should calibrate expectations based on the technology’s genuine maturity rather than hype alone. While quantum computing might profoundly disrupt everything from AI to materials science, patience and a long-term perspective are crucial. Much like AI, we expect incremental progress until a major inflection point arrives. Until then, overreacting to either positive or negative headlines can lead to significant market swings that don’t necessarily reflect the underlying technology’s steady advance.”

In terms of the pace of change, Indset adds: “Historically, whenever we see a technology appear “decades away,” major discoveries sometimes emerge unexpectedly and accelerate the timeline—AI scaling over the last few years (notably with the GPT-Moment) is a prime example and so are the many examples along the “Gartner Hypecycle”. So, while 15 to 30 years might be a conservative estimate, there’s a high likelihood we will see meaningful applications much sooner.”

However, a measured approach is required to filter out some of the wilder claims. Indset cautions: “That said, balancing hype and reality is essential. The field of quantum computing tackles fundamental physics problems that don’t always conform to Moore’s Law. We can expect incremental progress and “quantum surprises,” but we still face significant scientific and engineering barriers—things like high error rates, short coherence times, and the need for specialized algorithms. It’s smart to plan for a long horizon while remaining open to the possibility that a single big discovery—whether in materials science, error correction, or new qubit technologies—could substantially speed up development. So if there are answers to some of the challenges or even if other approaches could be taken, most likely the timeline for breakthrough will be much shorter.”

Some of the caution relates to technological realities. According to Indset: “One of the biggest challenges is scaling. Even though crossing key error thresholds (like Google’s recent milestone) proves that quantum computing can “scale” in principle, the journey has only just begun. The community needs to add many more qubits to build complex quantum circuits that do practical tasks, further reduce and manage errors so logical qubits can run computations as long as needed, and develop entirely new software tools and programming models compatible with quantum mechanics—rather than the classic paradigms we use today.”

Following this, Indset clarifies: “This underscores why real-world applications are still a ways off. We can do certain tasks in the lab under carefully controlled conditions, but bridging that to consistent, large-scale production systems is where the real engineering mountain lies. Part of that bridge involves near-term, “bridge” technologies—specifically hybrid quantum-classical systems—that let smaller quantum processors tackle sub-problems while leveraging powerful classical HPC for the bulk of computation. It’s a giant step in the right direction, but we still have a long way to go before quantum computers become practical, everyday machines that solve real problems. It is also important to understand that quantum computers are as of now special purpose machines.”

Yet the development curve will deliver, Indset foresees: “Over time, as quantum hardware matures, we may see broader quantum-first approaches. But for the foreseeable future – in particular in 2025 – hybrid systems are the pragmatic way to deliver incremental value and learning while fully fault-tolerant quantum computers remain on the distant horizon.”

In terms of the future state: “Quantum algorithms are crucial because they tap into phenomena like superposition and entanglement, tackling problems classical computing can’t easily handle. For AI, quantum-enhanced techniques could dramatically speed up model training or uncover new patterns. For materials science, quantum simulations might optimize molecular design or accelerate drug discovery. And for cybersecurity—including cryptocurrencies—quantum could be both a blessing and a threat.”

Digital transformation meets prison reform


By Dr. Tim Sandle
May 21, 2025

DIGITAL JOURNAL


June 17th 2022: James Tweed from Coracle Inside, in one of Her Majesty's prisons. Image - Coracle, with permission.

Cambridge-based edtech company Coracle, which supplies laptops to 93 UK prisons, has just been awarded B Corp status – with a far above average score of 126.5. Coracle’s Founder James Tweed is seeking to transform education for prisoners, seafarers, and other often-forgotten communities. As well as transforming education, this aids the digital transformation of UK prisons.

Tweed is one of the few people licensed by the UK Ministry of Justice to do this work. Tweed founded Coracle and based the firm at Cambridge’s historic Chesterton Mill. The company has a specialised learning platform currently used in over 90 percent of public prisons across England and Wales.

The platform allows secure access to courses ranging from vocational qualifications to higher education, delivered by partners such as the Open University, Aim eLearning and Hatch Digital. Coracle is one of the few companies authorised by the Ministry of Justice and HM Prisons and Probation Service to provide educational laptops to prisoners.

Digital literacy

According to the Prison Reform Trust:

“The cost to the UK of prisoner reoffending is £18.1 billion per year. Employment prospects for released offenders are extremely bleak: 68 per cent were unemployed in the four weeks before custody (81 per cent for men), 47 per cent have no qualifications, and only 4 per cent of women and 11 per cent of men are in work six weeks after their release. Prisoners are often among the most digitally excluded in our society, yet nearly all jobs – from supermarket assistants to construction workers – require digital literacy of at least a basic level. Ever more educational courses are only available online, reducing prisoners’ opportunities to learn.

“The Prisoners’ Education Trust (PET) has argued that digital “remains the essential ingredient that would revolutionise prison education. Without this, the digital divide will become a chasm, as prisoner learners miss out on developing digital literacy skills.”

Coracle

The B Corp certification is awarded to companies that meet high ethical standards in business. Coracle scored 126.5 points, well above the 80 points needed to pass.

Tweed has told Digital Journal he decided to pursue a B Corp certification as he wanted to bring in a formal framework to guide the company as it grows.

Coracle employs 33 people but has plans to grow to 40. It currently operates in the maritime and prison sectors but is also moving into other ‘hard to reach’ sectors such as children excluded from school.

Tweed’s mission

“Companies talk about values but I wanted to ensure it was something real and that we had a framework in place to develop our staff practices, but also our wider environmental, sustainability and ethical positioning. As we grow the team from 33 to 40 this year, it’s also a clear signal to people about the kind of business we are”, Tweed explains.

He adds: “I’d originally assumed B Corp was for consumer brands, but the more I looked, the more it made sense for us. It’s a practical way to track how we’re doing across ethics, sustainability and how we treat people, inside and outside the business.”

The company has been evaluated as particularly strong in its approach to customer impact and support for workers, while also achieving solid scores in governance, community and environmental practices.

Coracle also holds a King’s Award for Enterprise for Promoting Opportunity and is one of a handful of organisations licensed by the Ministry of Justice to provide prisoners with laptops for education. Its platform delivers content from partners including the Open University, Aim eLearning and Hatch Digital.

In terms of the mission, Tweed says: “A word that comes up a lot in our company is ‘hope’. Whether someone’s on a ship in the middle of the ocean or serving time in a UK prison, everyone should have the chance to learn. That’s what our technology is all about, preventing digital exclusion and giving people hope.”

China slams US ‘bullying’ over new chip warnings

By AFP
May 20, 2025


Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that these can be used to advance Beijing's military systems and otherwise undermine American dominance in AI - Copyright AFP ANTHONY WALLACE

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against “bullying” efforts to restrict access to high-tech semiconductors and supply chains.

Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing’s military systems and otherwise undermine American dominance in AI.

US President Donald Trump’s administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.

Some US lawmakers feared the restrictions would have incentivized countries to go to China for AI chips, spurring the superpower’s development of state-of-the-art technology.

But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei’s Ascend chips, would put them at risk of violating US export controls.

In a statement Wednesday, Beijing’s commerce ministry described the warnings as “typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain”.

China accused the US of “abusing export controls to suppress and contain China”.

“These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China’s development interests,” the commerce ministry said.

It also warned that “any organization or individual that enforces or assists in enforcing such measures” could be in violation of Chinese law.

And it vowed to take “firm steps to safeguard its legitimate rights and interests” in response.

The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.

The commerce department said its policy was aimed at sharing American AI technology “with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries”.

Previous US rules divided countries into three tiers, each with its own level of restrictions.

Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.

Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.