Category: 3. Business

By Barbara Kollmeyer

‘This is a truly game-changing technology that will reshape the world economy in the years to come,’ says the bank.

For investors, there’s no ‘turning back’ on AI now, says Barclays.

On a day of blowout results and forecasts from Nvidia, our call of the day says investors have reached the point of no return with AI, which is all that matters heading into 2026 and beyond.

“We expect AI to be the most important macro factor in 2026, as traditional drivers such as monetary policy and trade policy fade,” writes Ajay Rajadhyaksha, global chairman of research at Barclays in the bank’s 2026 outlook – “As Goes AI.”

“We think fears of a collapse in the AI narrative are overdone and expect the economic expansion to continue for yet another year,” Rajadhyaksha adds. The U.K. bank that is one of Treasury dealers says its outlook includes a boosted 2026 forecast for the S&P 500 SPX to 7400 from 7000.

Fears that AI companies may not be able to deliver on the vast amounts of spending on the technology have been a major driver of hiccups for stocks in recent weeks. That’s as investors also fret over waning expectations the Fed will make one last rate cut this year.

Driving home AI importance, Rajadhyaksha estimates about 1% of U.S. growth in 2025 came from spending on the technology, with “old” economy spillover for construction on data centers, telecoms firms putting down networking equipment, etc.

“The scale of the build-out will probably dwarf the telecom rollout; the U.S. is likely in the middle of its biggest capex cycle in many decades,” Rajadhyaksha says.

AI has also been playing a massive role in boosting stock markets and investor wealth, he says, estimating that since end-2022, AI-related equities have driven 75% to 80% of the S&P 500’s earnings and total performance. That’s as the U.S. consumer has faced down trade worries, job uncertainty and housing market troubles.

“Strong wealth gains, powered by AI-sensitive equities, are a large part of why. AI spending helped investment, and AI equities helped consumption,” says Rajadhyaksha.

The biggest risk to investors and the U.S. is the AI revolution running out of steam, he says. With households holding $45 to $47 trillion in equities, a 30% fall in valuations, for example, would lead to a household hit of $15 trillion, hitting that wealth effect and consumption, collapsing AI capex and likely triggering a recession, says the strategist.

“We remain believers; we think comparisons to 2000-02 are exaggerated, even if total spending will likely be greater,” he says. Supporting that view he notes that markets have rebounded from each AI-related scare, such as DeepSeek, as hyperscalers margins and profits are strong and AI use cases are increasingly showing up.

The firm forecasts 2.1% U.S. growth next year, as tariff drags fade and the One Big Beautiful Bill’s fiscal boost kicks in. They don’t expect material AI-caused job losses but do expect productivity will drive the next four quarters of growth.

So how to play the AI revolution? Barclays has shifted to a positive view on the whole technology, media and telecom sector as a secular growth story, with expectations for AI-driven capex and double-digit growth for cloud and digital advertising businesses.

Other themes Barclays likes: cyclical/growth equities that would benefit from Fed rate cuts; potential for deal activity driven by easier financial conditions; and financials owing to U.S. economic resiliency. The bank also lifted utilities to positive, on expectations of a boost from lower rates, plus data-center power demand. Consumer, commodity-linked and healthcare sectors will lag behind the S&P 500, due to inflation firming up, commodity oversupply and regulatory headwinds, says the strategist.

Style-wise, they are betting on growth over value, helped by tech-led earnings strength.

Barclays also recommends exposure to 2-year Treasury yields, with Fed cuts unlikely to go away. Elsewhere, Chile, Peru, Australia and South Africa will likely benefit from demand for metals and critical minerals by AI.

Read: While Nvidia is thriving, this CEO hails an anti-AI bet – and is winning

The markets

U.S. stock futures (ES00) (YM00) (NQ00) are stronger, led by tech, Treasury yields BX:TMUBMUSD10Y are steady, gold (GC00) is lower and bitcoin (BTCUSD) is rising.

   Key asset performance                                                Last       5d      1m      YTD      1y 
   S&P 500                                                              6642.16    -3.05%  -0.85%  12.93%   12.25% 
   Nasdaq Composite                                                     22,564.23  -3.60%  -0.77%  16.85%   18.97% 
   10-year Treasury                                                     4.144      1.80    13.90   -43.20   -28.10 
   Gold                                                                 4065.8     -2.60%  -1.87%  54.05%   52.15% 
   Oil                                                                  59.41      1.38%   -3.79%  -17.34%  -15.29% 
   Data: MarketWatch. Treasury yields change expressed in basis points 

The buzz

Walmart (WMT) earnings are ahead, with Ross Stores (ROST) after the close.

Nvidia shares (NVDA) are up 6% after the AI-chipmaker beat revenue expectations by more than $2 billion, and its outlook exceeded consensus by nearly $3 billion. And from CEO Jensen Huang: “AI is going everywhere, doing everything, all at once.”

Datacenter operators Super Micro Computer (SMCI) and CoreWeave (CRWV) are getting a Nvidia-fueled boost, along with Vertiv (VRT), a maker of air conditioning systems for server racks.

Palo Alto Networks shares (PANW) are falling after the cybersecurity group’s earnings just beat forecasts and its outlook was in line.

IBM (IBM) and Cisco Systems (CSCO) announced a new partnership over quantum computers.

September jobs data is due at 8:30 a.m., with economists forecasting 50,000 jobs created after just 22,000 gains in August. Other data on tap: Weekly jobless claims and the Philly Fed survey, followed by existing-home sales at 10 a.m.

Federal Reserve Governor Lisa Cook speaks at 11 a.m., Chicago Fed President Austan Goolsbee at 1:40 p.m. and Philly Fed President Anna Paulson at 6:45 p.m.

Best of the web

How Americans’ nest eggs built a private-equity loan revolution.

Help wanted: The changing face of job listings from the 1970s to now.

Opinion: If robots replace workers, what happens to Social Security?

The chart

Nike shares (NKE) have entered a so-called “death cross,” a pessimistic setup that bodes for tougher times ahead for the stock. The definition of a death cross is when the 50-day average of the stock falls below the 200-day and the worry is that the decline could keep going. Tariffs and a tough China market are issues for the stock that has lost 17% so far in 2025. Read more here.

Top tickers

These were the top-searched tickers on MarketWatch as of 6 a.m.:

   Ticker  Security name 
   NVDA    Nvidia 
   TSLA    Tesla 
   AMD     Advanced Micro Devices 
   PLTR    Palantir 
   TSM     Taiwan Semiconductor Manufacturing 
   GME     GameStop 
   AMZN    Amazon 
   AAPL    Apple 
   MSFT    Microsoft 
   GOOGL   Alphabet 

Random reads

The fight to save the “Dazed and Confused” middle school.

A record $2.6 million sale – for the most “complicated pocketwatch ever made.

What you can’t say on the internet.

-Barbara Kollmeyer

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

  (END) Dow Jones Newswires

  11-20-25 0655ET
Copyright (c) 2025 Dow Jones & Company, Inc.

The general consensus is now for the Fed to keep rates hold, with the base rate sitting at 3.75% to 4%. This will likely infuriate the White House, which has been pushing throughout 2025 for significant reductions—with President Trump blaming “Too Late Powell” for a housing crisis in the U.S.

While Wall Street won’t love a hold, it does have some justification for betting on one in advance of the U.S. Federal Reserve decision. Notes from the FOMC’s most recent meeting in October, released yesterday, painted a picture of a divided committee.

Fed members were split on inflation, which should be at 2%, but currently sits at 3%. The notes described how several members were comfortable with current levels, arguing it’s “close” to target.

“Close” isn’t close enough for others, the report adds: “Many participants, however, remarked that overall inflation had been above target for some time and had shown little sign of returning sustainably to the 2% objective in a timely manner.”

This split in opinion was the running theme of the meeting, it seems, with the notes observing there were “strongly differing views” about the appropriate action for monetary policy at the December meeting. “Several participants” called for a December cut, while “many participants” said it would be appropriate to leave the rate unchanged. The one thing they agreed on? “Monetary policy was not on a preset course.”

While it’s Powell’s job to rally the committee toward as great a consensus as possible, it’s clear where the outliers in December may be. Trump appointee Stephen Miran, for example, advocated for a 50bps reduction in October.

The Fed’s dual mandates—control inflation and aim for full employment—are now in contradiction to each other: While inflation is a check in the box for a rate hold, the deteriorating employment situation runs counter to that, tempting the FOMC toward another cut.

The committee said it is “attentive to the risks to both sides of its dual mandate and that downside risks to employment had risen in recent months.” America’s labor market has stagnated into a low-hire, low-fire economy, according to Chairman Powell, the full details of which have been obscured by a data blackout during the government shutdown.

Even without this information, the FOMC expects the jobs landscape to deteriorate gradually in the coming months, with a less dynamic market into next year.

“Participants generally attributed the slowdown in job creation to both reduced labor supply—stemming from lower immigration and labor force participation—and less labor demand amid moderate economic growth and elevated uncertainty,” the notes add. “Many participants remarked that structural factors such as investment related to AI and other productivity-enhancing technologies may be contributing to softer labor demand.”

Jobs report furthers hold bets

Despite the gloomy outlook for the jobs market—which would be a motivator for a cut if it worsened—economists are widely expecting an increase in reported roles in today’s jobs report.

Goldman Sachs’s David Mericle wrote in a note to clients overnight that he expects the employment rate to hold steady at 4.3%. He wrote: “Our job growth tracker based on alternative data rose in September to a pace of 85,000 private sector jobs. We expect a 5,000 decline in government payrolls, reflecting a 10,000 decline in federal payrolls. 

“We also expect the usual upward revision to August payroll growth, where the seasonal factors appear to be inappropriate for the initial print. August has been revised up by an average of 38,000 on the second release and about 60,000 on the second and third releases combined.”

This minimally upward trajectory was echoed by RSM chief economist Joe Brusuelas, who wrote in a note shared with Fortune this week he expects a 50,000 increase in the September report. He also anticipates upward revisions to both the July and August jobs estimates, increasing employment to near 100,000 roles in the report.

This, in turn, will “likely further dampen expectations of any prospective rate cut at the Fed December policy meeting.”

Getty Images

What LeCun thinks the AI world gets wrong

A wave of coverage suggested that the US president was giving cover to companies to end their green pledges. And several headlines suggested that others were keeping their climate polices on the down-low to avoid the president’s wrath.

The latter trend has been dubbed “greenhushing” – deliberately downplaying climate pledges. But experts and researchers working in the field say the full picture is much more complicated, and pre-dates last year’s US presidential election.

In fact, the idea of greenhushing first got widespread popular attention back in 2022, when Switzerland-based climate consultancy South Pole identified it as a trend in their annual report, finding that a quarter of the companies they surveyed set “science-based emission reduction targets” – but did not plan to publicly talk about them.

It’s been a running theme since then. In early 2024 – a full year before Trump took office – South Pole found that nearly half of companies were struggling to communicate their climate pledges, due to new regulations, compliance schemes and lack of confidence.

South Pole’s most recent report, released earlier this year and focused on financial institutions, notes that general risk statements have supplanted more detailed climate risk plans. But tricky regulation – not pro-oil drilling policies – might be to blame. Companies, the consultancy says, “navigate a complex landscape where they can be sued for saying too little – and sued for saying too much.”

Watson Farley & Williams (“WFW”) advised Çalik Enerji Swiss AG (“Çalık Enerji Swiss”), a Swiss subsidiary of Çalık Enerji Sanayi ve Ticaret A. Ş, on a PLN1.17bn (€265m) committed guarantee facility arranged by Commerzbank AG. The facility supports the advance payment bond for the turnkey construction of the 1.336 GW hydrogen-ready Kozienice Combined-Cycle Power Plant in Poland.

Partially covered by Swiss Export Risk Insurance (“SERV”) the transaction represents a landmark development in Poland’s energy transition. As one of the largest projects of its kind in the region, Kozienice is expected to significantly reduce national CO₂ emissions and lay the groundwork for future hydrogen integration.

Calik Enerji Swiss based in Lucerne, constructs and implements sustainable and reliable turn-key contracting (EPC) projects across the Middle East, Central Asia, Africa and the Balkans. The company plays a key role in delivering international energy and infrastructure projects, leveraging the strength of the Swiss supply chain.

The WFW Germany Infrastructure team that advised Çalık Enerji was led by Frankfurt Project and Structured Finance Partner Riko Vanezis, supported by Associate Alkistis Vallianatou.

Riko commented: “We are pleased to have advised Çalık Enerji on this strategically important transaction, which makes a meaningful contribution to Poland’s energy transition. The project demonstrates how innovative financing and cross-border collaboration can advance large-scale, sustainable infrastructure. Our involvement reflects our deep expertise in complex, multi-jurisdictional energy projects and our longstanding track record in advising on SERV-backed financings”.

News Summary:

• New collaboration plans to unite strengths of both leaders to design a connected network of large-scale, fault-tolerant quantum computers, targeted by early 2030s
• Companies plan to deliver an initial demonstration of multiple networked quantum computers within five years
• Distributed quantum network could lay groundwork towards quantum computing internet defined by quantum computers, sensors, and communication in the late 2030s

 

NOVEMBER 20, 2025 – YORKTOWN HEIGHTS, NY and SAN JOSE, CA — Today, IBM (NYSE: IBM) and Cisco (NASDAQ: CSCO) announced an intention to collaborate on the groundwork for networked distributed quantum computing, to be realized as soon as the early 2030s. By combining IBM’s leadership in building useful quantum computers with Cisco’s quantum networking innovations, the companies plan to explore how to scale large-scale, fault-tolerant quantum computers beyond IBM’s ambitious roadmap. Additionally, they will work to solve fundamental challenges towards a quantum computing internet.

Within five years, IBM and Cisco will aim to demonstrate the first proof-of-concept for a network that combines individual, large-scale, fault-tolerant quantum computers, enabling them to work together to run computations over tens to hundreds of thousands of qubits. This network would allow problems to be run with potentially trillions of quantum gates, the fundamental entangling operations required for transformative quantum applications such as massive optimization problems, or the design of complex materials and medicines.

“At IBM, our roadmap includes plans to deliver large-scale, fault-tolerant quantum computers before the end of the decade,” said Jay Gambetta, Director of IBM Research and IBM Fellow. “By working with Cisco to explore how to link multiple quantum computers like these together into a distributed network, we will pursue how to further scale quantum’s computational power. And as we build the future of compute, our vision will push the frontiers of what quantum computers can do within a larger high-performance computing architecture.”

“Getting quantum computing to useful scale is not just about building bigger individual machines, it is also about connecting them together,” said Vijoy Pandey, GM/SVP at Outshift by Cisco. “IBM is building quantum computers with aggressive roadmaps for scale-up, and we are bringing quantum networking that enables scale-out. Together, we are solving this as a complete system problem, including the hardware to connect quantum computers, the software to run computations across them, and the networking intelligence that makes them work.”

Scaling a Distributed Quantum Computing Network

IBM and Cisco intend to explore the development of quantum hardware and software that could physically link many large-scale, fault-tolerant quantum computers together to form networked distributed quantum computing.

The companies are targeting an initial proof-of-concept demonstration by the end of 2030, for which they plan to entangle qubits from multiple separate quantum computers located in distinct cryogenic environments. Doing so will require the companies to invent new connections, including microwave-optical transducers and a supporting software stack.

The Cisco vision for a quantum data center introduces an architecture for quantum networking infrastructure that could make distributed quantum computing a reality in the near future. This vision includes a complete hardware and software stack that aims to preserve fragile quantum states, distribute entanglement resources, facilitate teleportation between quantum computers, and synchronize operations with sub-nanosecond precision.

To scale beyond linking two quantum computers that are separate but physically close, IBM and Cisco are planning to explore how to transmit qubits over longer distances, such as between buildings or data centers. To achieve this, the companies will explore optical-photon and microwave-optical transducer technologies, as well as investigate how they can be incorporated into a quantum network to transfer quantum information as needed.

Linking together multiple quantum computers will require an appropriate interface. IBM plans to build a quantum networking unit (QNU) to serve as the interface to a quantum processing unit (QPU), with the explicit task of taking stationary quantum information in the QPU and converting it into “flying” quantum information through the QNU to then be further linked across potentially multiple quantum computers through a network.

Cisco’s quantum network would aim to distribute the entanglements to arbitrary pairs of these QNUs on an on-demand basis to drive the quantum information transfer required for a given quantum algorithm or application. Towards this goal, Cisco is developing a high-speed software protocol framework that can continuously and dynamically reconfigure network paths so entanglements could be distributed to the QNUs when they are done with their partial computations.

Together, the companies plan to investigate how a network bridge, comprised of novel hardware and open-source software, could use Cisco quantum network nodes to link many IBM QPUs within a data center through its QNU interface. In the future, this approach could be extended to link QPUs across multiple data centers. This would scale a larger quantum network across even larger distances to form the groundwork for a future quantum computing internet.

IBM quantum computers linked by this architecture could facilitate massively computationally demanding workloads, including those that require high-performance computing resources as part of a quantum-centric supercomputing framework.

Towards this vision, IBM is also working with the Superconducting Quantum Materials and Systems Center (SQMS), led by Fermi National Accelerator Laboratory, in its role as a member of four of the U.S. Department of Energy National Quantum Information Science and Research Centers. Together, IBM and SQMS intend to investigate how many QNUs could be used within quantum data centers, and they are planning an initial demonstration of multiple connected QPUs within the next three years.

The Foundation of a Quantum Computing Internet

Building a distributed and scalable quantum computing network will create a pathway towards an exponentially large computational space and enable the expansion of diverse technologies, which could begin to form a future quantum computing internet by the late 2030s.

A quantum computing internet provides a future where many distributed quantum-based technologies, such as quantum computers, quantum sensors, and quantum communications are connected and share information across distances, such as a metro region and eventually, at a planetary scale. This bold vision could facilitate new possibilities such as ultra-secure communications, or precise monitoring of climate, weather, and seismic activity.

As another part of their current intention to collaborate, IBM and Cisco plan to co-fund academic research and collaborative projects to advance the broader quantum ecosystem, following a long history of fostering research in academic and national labs.

 

About IBM

IBM is a leading global hybrid cloud and AI, and business services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

For more information, visit https://research.ibm.com.

 

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word ‘partner’ does not imply a partnership relationship between Cisco and any other company.

Media Contacts

IBM

Erin Angelini

IBM Communications

edlehr@us.bim.com

Further to the announcement on 5 August 2025 of a final dividend of 62.98 US cents per ordinary share, and as approved by shareholders at the AGM on 6 November 2025, today Diageo announces the Sterling equivalent of the dividend, amounting to 47.91 pence per ordinary share based on an exchange rate of US$1=£0.76072.

The US$:£ conversion rate was determined by the actual rates achieved by Diageo buying forward contracts for Sterling currency, during the three working days preceding this announcement, for delivery ahead of the dividend payment date.

The payment date of the dividend is 4 December 2025.

Other details relating to the dividend are set out in the announcement dated 5 August 2025 and are also available to view on the Company’s website at www.diageo.com.

James Edmunds
Deputy Company Secretary

20 November 2025

For further information, please contact:

Investor relations: Sonya Ghobrial Andy Ryan Grace Murphy [email protected]	+44 (0) 7392 784 784 +44 (0) 7803 854 842 +44 (0) 7514 726 167
Media relations: Rebecca Perry Clare Cavana Isabel Batchelor [email protected]	+44 (0) 7590 809 101 +44 (0) 7751 742 072 +44 (0) 7731 988 857

About Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in nearly 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com. Visit Diageo’s global responsible drinking resource, www.DRINKiQ.com for information, initiatives, and ways to share best practice.

Celebrating life, every day, everywhere.

Rolls-Royce (LSE: RR., ADR: RYCEY) and Emirates today signed a Memorandum of Understanding granting Emirates the rights to perform Maintenance, Repair and Overhaul on their own Trent 900 engines that power their A380 fleet. At the same time, the TotalCare agreement covering the Trent 900 fleet has also been extended to the 2040s.

Emirates will build a new facility with the first engine induction forecast from 2027. Emirates will complete fan case repairs at the facility and Rolls-Royce will maintain module repair capability within the global network.

Eviden’s solutions will be integrated into a collaborative security testing platform, allowing European essential service providers to assess their cyber threat resilience strategy

 

Paris, France – 20 November 2025

Eviden, the Atos Group product brand leading in advanced computing, cybersecurity products, mission-critical systems and vision AI, today announced that it has won a call for projects from the European Cybersecurity Competence Center and Network (ECCC)[1] to improve the cyber protection and resilience of European critical infrastructures.

This ECCC initiative aims to develop a strong and coherent community around cybersecurity issues by strengthening collaboration, knowledge sharing and the deployment of innovative cybersecurity solutions on a European scale.

The CIPHER[2] (Cybersecurity Intelligence, Protection and Holistic Enterprise Resilience) consortium will directly contribute to the ECCC’s mission to strengthen Europe’s digital resilience by providing a standardized, collaborative facility for testing, validating, and certifying the cybersecurity posture of essential service operators.

Led by Eviden, CIPHER brings together 13 partners from 7 European countries — including critical infrastructure operators, research organizations, and cybersecurity SMEs — ensuring a strong, multi-sectoral approach to advancing Europe’s cyber resilience.

For more information, please click here.

***

[1] ECCC https://cybersecurity-centre.europa.eu/index_en is Europe’s executive agency responsible for coordinating investments in cybersecurity research, innovation and industrial development in relation to a network of National Coordination Centres (NCCs) composed of national cybersecurity authorities, industry, start-ups and research centres. Initiated by ECCC, CIPHER strengthens detection and coordination capabilities at the European level through technological innovation and automation, meeting the objective set by ECCC to deploy concrete digital security solutions. ECCC is involved in the Digital Europe Programme (DIGITAL).

[2] CIPHER is funded under the European Commission’s Digital Europe Programme (DEP) through the ECCC ‘Cybersecurity Deployment’ call, which supports the large-scale deployment of cybersecurity capacities across the EU.

The boss of Ford UK has warned Rachel Reeves against increasing taxes on electric vehicles in next week’s budget, saying it could discourage drivers from making the switch away from petrol and diesel cars.

Lisa Brankin, the managing director of Ford UK, said it was “certainly not the right time” to introduce new levies on EVs, amid reports that the chancellor could implement a new pay-per-mile charge on electric vehicles (EVs) from 2028.

The proposed plan would introduce a charge of 3p a mile for EVs on top of other road taxes, to help offset falling tax revenue from petrol and diesel cars.

“That [policy], in the face of really fragile demand for electric vehicles, is just another brake,” Brankin told the BBC.

“Electric vehicles in some instances have gone from being a great thing to being something that we’re trying to push people into,” she added.

Brankin’s company, which makes the bestselling car in the UK, the Ford Puma, is among the many carmakers under pressure to meet the government’s target for 80% of new vehicle sales to be EVs by 2030.

The government reintroduced an electric car grant worth up to £3,750 in July after intense lobbying by carmakers who argued that they were struggling to meet targets on electric sales.

Electric car sales have been hitting record highs in the UK since, but Brankin said that without such government support Ford would not be able to achieve the 80% target.

The market was “distorted” owing to heavy discounting and lower values for second-hand EVs, she said.

“When that [target] was set a number of years ago, the outlook for demand around electric vehicles was buoyant and there seemed to be momentum behind electric vehicles. What we’re seeing now is that customer demand is not in line with that ambition.”

Brankin added“It’s really easy to sell people things they want,. It’s hard to sell people things they don’t want.”

Many new EVs are sold to businesses for their employees, who benefit from lower rates of “company car tax” compared with diesel or petrol options.

Brankin said Reeves should retain this tax benefit for companies “greening” their fleets.

Ford, whose world headquarters is in Michigan in the US, employs about 6,000 people in the UK, including at its diesel engine plant in Dagenham.

Brankin said the company was yet to make any decisions about the long-term future of the Dagenham plant, which will build diesel engines up until 2030.

“We’re working really hard on what the next life of Dagenham looks like,”she said, adding there was “nothing that we’ve settled on at the moment”.

A spokesperson for the Treasury said: “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers whilst backing the transition to electric vehicles, which is why we have invested £4bn in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle.

“Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.”