Tokyo, October 30, 2025 – NEC Corporation (NEC; TSE: 6701), a leading global IT and network transformation services provider, and e&, a global technology group, have announced a strategic partnership. The two organizations have signed a Memorandum of Understanding (MoU) establishing a framework for joint sustainability initiatives focused on reducing environmental impact, advancing social inclusion, and creating long-term economic value.
The MoU was signed by NEC’s GCC branch and e&, aligning the two companies on collaborative programs that advance responsible growth and underpin transparent sustainability governance.
Operating in 38 countries across the Middle East, Asia, Africa, and Europe, e& is focused on driving sustainable growth, digital empowerment, and innovation. With a strong commitment to Environmental, Social, and Governance (ESG) principles, e& continuously seeks partnerships that amplify its positive environmental and social impact.
NEC, sharing this vision, integrates sustainability into its operations and global supply chain, prioritizing environmental harmony and responsible growth. This shared commitment forms the foundation of their new strategic collaboration.
Under the MoU, the two companies will explore joint initiatives to reduce their environmental footprint, develop low-carbon and energy-efficient solutions, and promote circular economy practices. The collaboration also covers areas such as renewable integration, resource optimization, and transparent sustainability governance—all designed to accelerate the transition toward a more sustainable digital future. This MoU with NEC is an initiative that stems from Project Life which is a transformative initiative launched by e& Group Procurement to drive its Responsible Sourcing Strategy and align with the e& group-wide sustainability vision of 2030, further reinforcing e&’s commitment to sustainable and responsible sourcing.
“I firmly believe that strong partner relationships are the cornerstone of our success. These partnerships are not only instrumental in driving innovation, efficiency, and mutual growth but also play a pivotal role in fostering sustainable practices that benefit our communities and the environment. Together, we are committed to building a future where collaboration, trust, and sustainability converge to create shared achievements and long-term value for all stakeholders.”
Saeed Al Zarooni – Group Chief Procurement Officer of e& Group
“Through this MoU with NEC, we’re aligning delivery with our Climate Transition Plan, ‘Ambition to Action’, which outlines our pathway to net zero. This partnership reflects our shared ambition to accelerate sustainable innovation and deliver meaningful impact. As long-term trusted partners, we are confident that our collaboration with NEC will create lasting value, support environmental goals, and drive inclusive digital transformation for the benefit of our communities and the planet. By combining technology with clear accountability, we aim to help industries transition to a greener, more inclusive digital future.”
– Andrew Dunnett, Group Senior Vice President of Sustainability, e&
“We are proud to collaborate with e& through this MoU to support both business growth and sustainability ambitions. NEC is committed to delivering innovative, energy-efficient solutions that help drive environmental progress and operational excellence through technology and shared values.”
– Masayuki Kayahara, Corporate SVP, Global Network Division, NEC Corporation
Together, NEC and e& aim to set a benchmark for sustainable innovation, fostering a legacy of environmental stewardship and positive societal impact.
Fossil fuel companies made over €180bn in profits in the EU in the two years following Russia’s invasion of Ukraine, analysis on behalf of T&E shows [1]. T&E calls for excess profits to be taxed and for that money to be used to reduce low-income households’ exposure to fuel and energy price fluctuations.
During periods of international tension or shocks, the price of fossil fuels rises rapidly, despite relatively stable production costs. As a consequence, the profits of oil and gas companies can rise significantly. The analysis reveals that EU oil and gas companies generated over €104 billion in profits in 2022, a 45% increase from the previous year. They then fell by 21% in 2023, but remained significant at over €82 billion.
In response to higher global energy prices, governments sought to mitigate the impact on residential and industrial consumers through various measures, including tax reductions and exemptions for consumers. While this did soften prices for consumers, it also kept demand for oil and gas high, which then filled the pockets of fossil fuel companies.
The EU faces a clear policy choice: either phase out fossil fuel subsidies or impose sustained taxes on excessive profit, says T&E. The current approach of maintaining in excess of €100 billion in annual fossil fuel subsidies, while allowing the temporary windfall tax to expire, leaves consumers bearing the double burden of subsidy costs and inflated energy prices.
Antony Froggatt, senior director at T&E, said: “Oil and gas companies have made fat profits in recent years due to circumstances completely out of their hands. Government measures that keep fossil fuel demand high, like fuel duty cuts in times of high prices, simply end up shifting wealth from the public purse to private oil and gas companies. This isn’t fair. The EU must tax oil companies’ excess profits for a fairer deal for European citizens, or end subsidies that are hurting taxpayers.”
In 2005, the EU Emissions Trading System (ETS) introduced a market price for CO2 emissions from the power sector, parts of the transport sector and the industrial sector. This has driven innovation and behavioural change, reducing greenhouse gas emissions and raising over €230 billion. In 2024 alone, nearly €39 billion was raised.
From 2027, the EU will also price emissions from buildings and road transport, more directly impacting householders with gas, coal, or oil heating and the drivers of petrol and diesel cars. Oil, gas and energy companies are expected to pass these costs on to consumers. T&E has estimated that the ETS2 could raise nearly €50 billion a year [2]. T&E calls for these funds to be used to make green alternatives like social leasing schemes and public transport more accessible and affordable, while a significant chunk should also be returned to citizens in the form of a climate dividend. Taxing excess profits would also give the governments more money to help people with the transition, says T&E.
“Governments should tax fossil fuel projects and use that to help citizens switch to greener alternatives. It’s likely oil, gas and energy companies will simply pass on the costs of the ETS2 to consumers. Taxing excess profits would ensure that money comes back to citizens to fund things like €150 a month EV schemes and better public transport,” concludes Antony Froggatt.
Note to editors:
[1] An independent study of net profits in the fossil fuel value chain was commissioned by T&E, carried out by PwC Belgium. Net profits in the EU were extrapolated by the consultant PWC from a sample of 114 fossil fuel companies. Estimates were primarily derived from publicly available company financial statements, corporate websites, and intelligence sources such as Factiva and Forbes, or, where necessary, estimated using a combination of traded volumes and market prices. Due to variations in company reporting practices, activity segmentation, and data availability, these figures provide an approximation rather than a precise measurement of profits. As the methodology relies on assumptions and extrapolation, the aggregated results should be considered as an indicative as opposed to precise assessment of the total profits generated across EU fossil fuel value chains.
[2] On average between 2027 and 2032, assuming an average carbon price of €55/tCO2
AI is tipped to transform the economy and eventually evolve into a $4.8 trillion market, but the question on everyone’s lips right now is: is the market in a bubble? Everyone from tech CEOs to asset managers and central bankers is worried the promise of AI could quickly turn sour if it doesn’t live up to the hype, but many remain optimistic on the long-term view. CNBC surveyed fund managers to find out what they think makes a bubble — and whether the signs are there today. Expectations vs. reality Blue Whale Growth Fund Chief Investment Officer Stephen Yiu says there’s one main ingredient to an economic bubble, and it’s not soapy water. “The short answer for the definition of bubble, which then ultimately will go bust, is that at some point expectations are going to surpass tangible delivery,” Yiu said. There’s broad agreement that market bubbles form when there’s a rapid increase in asset or stock prices, investors pile in and there’s an eventual disconnect between valuations and fundamentals. This, in turn, leads to a crash, just like during the dot-com era. Tech stocks, specifically those related to AI, have staged a stunning rally this year. The tech-heavy Nasdaq Composite is almost 30% higher over the last 12 months and has repeatedly hit record highs this year, reflecting the significant momentum behind tech stocks. .IXIC 1Y mountain Nasdaq Composite Meanwhile, the Philadelphia Semiconductor Index, which includes AMD , Nvidia and Qualcomm , has seen a near 50% increase since the start of the year. On Wednesday, chipmaker Nvidia ‘s market cap became the first-ever to top $5 trillion . Herd behavior as stocks soar “When we think of an ‘AI bubble,’ some of these hold true, but not all,” Victoria Fernandez, portfolio manager and chief market strategist at Crossmark Global Investments, told CNBC. “Yes, we have seen prices and valuations move higher, although valuations have come back down from their highs previously. We have also seen the herd behavior as I can’t think of a single investor – institutional or retail – who doesn’t talk about AI stocks as part of any conversation around the markets or investments,” she added. However, equity investors remain confident that the latter element – the relationship between valuations and fundamentals – are steady, buoyed by an earnings season that is expected to yield positive results. “So far, companies have been able to support valuations with strong cash flow and solid profitability,” Fernandez said. “Outside of Nvidia, however, free cash flow growth is now negative as massive capex intentions continue to be announced. This is the area where we need to watch to see if a bubble emerges.” Valuations ‘can only be ignored for so long’ The AI race has seen some of the world’s largest companies’ market caps soar, but investors broadly agree that these tech giants have healthy balance sheets to fall back on if — or when — kinks in the burgeoning industry are ironed out. That’s in stark contrast to other bubbles, when new ecosystems of companies were created – but many ultimately failed. The story of “well-capitalized, mega-cap companies” leading the charge — and therefore serving somewhat as an antidote to a potential bubble — is “compelling, but that is only part of an investment process,” said Lewis Grant, senior portfolio manager for global Equities at Federated Hermes Limited. “Fundamentals and valuations can only be ignored for so long,” he said. If a bubble bursts, companies fail and big money can be lost, creating ripple effects across the economy. Investors can mitigate these risks by ramping up due diligence and placing bets more intentionally, according to Gurvir S. Grewal, global research analyst at William Blair Investment Management. “Rather than broad exposure or thematic bets, successful investing in AI will require granular, bottom-up analysis and assessing which companies’ moats will be widened, not eroded, by AI will be key moving forward,” he said, mirroring a stance taken by Goldman Sachs in October . Circularity of AI deals There are also different types of bubbles. For Nicolas Laroche, global head of advisory and asset allocation from Union Bancaire Privée (UBP), bubbles are defined by “excesses and speculation on asset valuations, industrial overinvestments, or unsustainable profit growth.” Amazon founder Jeff Bezos, for example, says AI is in an “industrial bubble,” which, even if it bursts, can leave society with new innovations such as life-saving pharmaceuticals. Blue Whale’s Yiu agreed that even if we’re in a bubble, it’s a “good” one. “There’s some real, tangible value proposition” from AI regardless of whether it’s the companies that currently dominate or those nabbing checks from investors that are the winners, he said. There are other factors to keep an eye on, too. “The risk today is the circularity of deals in the AI space, which could inflate profit expectations and disappoint investors in the future,” Laroche added. But no matter the signs, we might not know until we’re out of the other end, because bubbles burst over long periods of time. “A bubble is only recognised in hindsight, typically years after it has burst,” Laroche said, adding that an 80% drawdown in asset prices or a 10-year recovery from a previous price peak are retrospective tell-tale signs. “This pattern has been evident in several notable examples: the stock market crash of 1929, the Japanese asset price bubble of the 1980s, the dot-com bubble of the late 1990s, the cryptocurrency bubble of 2017, the non-profitable tech bubble during the COVID-19 pandemic, and, more recently, the Chinese real estate bubble,” he said. However, “we are not expecting such a scenario,” he added.
ELEXIO’s interior showcases a 27-inch ultra-thin 4K widescreen display, powered by a Qualcomm 8295 chip, ensuring seamless navigation and performance. The innovative Cyber Eye heads-up display (HUD) provides exceptional readability with a 30,000:1 contrast ratio, enhancing safety under various lighting conditions.
Designed for families, ELEXIO offers a 506-liter trunk, expandable to 1,540 liters, 46 flexible storage areas, as well as Dolby Atmos immersive audio as standard, and an eight-speaker BOSE system. Integrated health monitoring and fatigue detection enhance safety and comfort for all occupants.
ELEXIO’s chassis, damping and braking systems are engineered for optimal performance in both city and long-distance scenarios. Features like Family Brake Mode and active side-bolsters enhance passenger comfort while reducing driver fatigue. Safety is provided by a 720° armored body structure, 77.5 percent high-strength steel content, and an advanced nine-airbag system, including extended side curtain airbags and automatic pop-out mechanical door handles for emergency access.
Equipped with an 88.1 kWh battery, ELEXIO delivers an all-electric range of 722 km (China Light-Duty Vehicle Test Cycle), perfect for daily commutes and short trips. DC fast charging replenishes the battery from 30 to 80 percent in approximately 27 minutes. Its charging system is compatible with 99 percent of operators in China. The Snapdragon 8295 chip powers advanced AI capabilities and multi-screen functionality for an intuitive user experience.
Microsoft blew off concerns of overspending on AI on Wednesday, reporting elevated earnings even as it faced an outage of its cloud computing service, Azure, and its office software suite, 365. The strong earnings report comes a day after a deal with OpenAI pushed the value of tech giant to more than $4tn.
After its Xbox and investor relations pages went down, the company issued a statement: “We are working to address an issue affecting Azure Front Door that is impacting the availability of some services.”
The outage did not dampen the software giant’s financial outlook, though. The company reported first-quarter earnings of $3.72 per share against analyst expectations of $3.68, and revenue of $77.7bn against expectations of $75.5bn, according to Bloomberg consensus estimates.
That’s up from the $3.30 per share and $65.6bn in revenue the company saw in the same quarter last year.
Microsoft’s closely watched Azure cloud business grew by about 40%, also topping expectations. Operating income increased 24% to $38bn, more than projected. The company said its net income was $27.7bn.
“Our planet-scale cloud and AI factory, together with Copilots across high-value domains, is driving broad diffusion and real-world impact,” said Satya Nadella, chair and chief executive officer of Microsoft.
“It’s why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead.”
The company reported spending a larger-than-expected $34.9bn on new AI-related projects over the quarter, a 74% increase from the same period a year ago.
Microsoft’s earnings report comes as investors welcomed a revamped deal with OpenAI this week that has the once not-for-profit AI venture move toward becoming a for-profit entity and ties Microsoft more closely to the company.
Under the new agreement, Microsoft will hold 27% of the OpenAI Group PBC, valued at roughly $135bn, while OpenAI’s non-profit arm will hold a $130bn stake in the for-profit.
The earnings report gives Wall Street its latest look at the company’s AI and cloud growth. Graphic chipmaker Nvidia crossed a threshold on Wednesday to become the first company valued at $5tn as prospects for a US-China trade deal improved. The wider US stock market reached record highs earlier in the week, buoyed by hundreds of billions of dollars of investment in AI.
Microsoft’s earnings, along with Meta and Google parent Alphabet on Wednesday, begin a week of reports from the “Magnificent Seven”, the most valuable publicly traded companies in the world.
Investor anxiety over the possible inflation of a market bubble in AI-related investment similar to over-investment in the mid-to-late 1990s have been growing. But bubbles aren’t necessarily visible until they burst.
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AI-related and cloud computing companies are valued at a combined $20tn, and gains across the market are 18% in 2025, or about $3.3tn, according to Reuters. Investors typically want to see that returns on AI capital spending, or CapEx, are following as the markets continue to reach record highs.
Microsoft, Alphabet, Meta and Amazon are projected to pump hundreds of billions into capital expenditures in their upcoming year, mostly into the construction of datacenters and associated infrastructure for artificial intelligence. Investors may be undeterred even without strong signs of revenue growth and settle for signs of strong AI adoption. The Dow Jones Industrial Average hit a milestone of 47,943 on Wednesday morning.
“With five of the Mag Seven reporting this week, what the market expects to hear is confirmation that all this AI CapEx is coming through, that the revenues and profits from AI are coming through,” Scott Wren, senior global market strategist at Wells Fargo Investment Institute in St Louis, Missouri, told Reuters this week.
Part of the AI economic boom is likely to come from cost savings. Microsoft announced at the start of the summer that it would cut about 9,000 jobs. Amazon is reported to be planning to cut as many as 30,000 corporate jobs, or 10% of workers in the white collar division, to compensate for over-hiring during the peak demand of the pandemic.
With the application of AI-technologies, company managers are increasing asked to justify hiring a human, with additional costs in health insurance and pension, along with HR and other management officials, when the role could be performed by AI. As a result, human resource divisions are likely to be the first to be scaled back as AI takes hold.
The IMF Executive Board Concludes Third Review of the Extended Fund Facility Arrangement for Ecuador
October 29, 2025
The IMF Executive Board completed the third review of the 48-month arrangement under the Extended Fund Facility (EFF) for Ecuador, allowing for an immediate disbursement of about US$600 million (SDR 438.4 million).
Program performance remains strong. The authorities met all end-August 2025 quantitative performance criteria, many with significant margins. They have also made substantial progress on the implementation of their structural reform agenda, notably on fiscal, governance, and growth-enhancing areas.
The authorities are taking decisive actions to strengthen fiscal sustainability and liquidity buffers while protecting the most vulnerable. They have affirmed their continued commitment to implement their reform agenda to boost private investment and job-rich growth.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed today the third review of the EFF arrangement for Ecuador. Program performance remains strong. All quantitative performance criteria for end-August 2025 were met, some by significant margins. The authorities have made substantial progress on the implementation of structural benchmarks, notably on fiscal, governance, and growth-enhancing reforms.
The Board’s approval of the review enables the authorities to immediately draw an amount of SDR 438.4 million (about US$600 million), bringing total disbursements under the arrangement to SDR2 billion (about US$2.7 billion). Ecuador’s 48-month EFF arrangement was approved by the Executive Board in May 2024 and augmented in July 2025, providing access equivalent to SDR 3.75 billion (about US$5 billion) to support policies aimed at strengthening fiscal and debt sustainability, protecting vulnerable groups, rebuilding liquidity buffers, safeguarding macroeconomic and financial stability, and advancing the structural reform agenda for sustainable, inclusive, and stronger growth benefiting all Ecuadorians. The authorities’ program also catalyzes additional financial support from multilateral partners.
The authorities have taken important actions to strengthen fiscal sustainability and liquidity buffers, while protecting the most vulnerable. These included implementing high-quality revenue and expenditure reforms alongside targeted compensatory measures to protect vulnerable groups. In addition, the authorities are advancing their structural reform agenda to safeguard financial stability, enhance governance, and boost private investment and job-rich growth. The authorities are committed to implementing new structural benchmarks to further advance their reform agenda, which is expected to realize significant growth dividends over the medium term.
Real GDP is recovering much faster than projected at the second review, driven by strong domestic demand and record nonoil exports, alongside low inflation. The current account balance is projected to continue to record sizable surpluses, supporting a further increase in international reserves. The financial sector remains broadly stable, and credit growth is supporting economic activity.
The economy has shown resilience but is still subject to several challenges, including acute global policy uncertainty and volatility in international financial markets. The authorities’ decisive policy actions and steadfast commitment to their economic program helps mitigate risks. Effective implementation of the authorities’ plan of fiscal consolidation and economic reforms, supported by the EFF arrangement, is projected to maintain public debt on a firm downward trend, supporting the authorities’ objective of further lowering sovereign spreads and regaining access to capital markets.
Following the Executive Board’s discussion today, Mr. Nigel Clarke, Deputy Managing Director and Acting Chair, issued the following statement:
“The Ecuadorian authorities have made significant progress in implementing their economic program supported by the IMF’s Extended Fund Facility (EFF) arrangement. All quantitative targets for the third EFF review have been met—many with significant margins—and the implementation of structural reforms is progressing well. Real GDP is recovering much faster than projected, driven by strong domestic demand and record nonoil exports, while inflation remains low. Sizable current account surpluses are projected to continue alongside a further increase in international reserves. The financial sector remains broadly stable, and credit growth is supporting economic activity. Solidifying these achievements will require continued program ownership and steadfast implementation of the authorities’ reform program. Contingency planning is also paramount given domestic and external vulnerabilities.
“The authorities continue taking important policy actions to implement high-quality revenue and expenditure reforms, strengthen fiscal sustainability, and further build fiscal and external buffers. The steadfast implementation of the policy agenda has contributed to a substantial decline in sovereign debt spreads since their peak in April. The authorities remain committed to continue strengthening the fiscal position and maintaining public debt on a firm downward path.
“Enhancements to the social safety net continue through targeted compensatory measures to mitigate the impact of reforms on vulnerable populations. Additionally, the authorities continue expanding the coverage of the social safety net for lower-income households, surpassing program targets.
“The implementation of the financial sector policy agenda includes strengthening financial regulation and oversight, as well as enhancing coordination between supervisory agencies. Efforts are also underway to enhance the resolution framework, gradually liberalize the interest rate system, and develop the domestic capital markets.
“The authorities are advancing structural reforms aimed at unlocking growth potential. They are working to attract private investment in high-potential sectors, such as mining, hydrocarbons, and energy. They are also pursuing new measures to diversify the economy, build resilience to natural disasters, fight illicit activities, and enhance the institutional framework and governance.”
The titans of the technology sector are ramping up their spending on artificial intelligence, as they rush to reap the benefits of an AI boom that has pushed stocks to record highs.
Earnings reports from Meta, Alphabet and Microsoft on Wednesday reaffirmed the colossal amounts of money these firms are shelling out for everything from data centres to chips, even as questions swirl about returns on the investments.
Meta said its capital expenditures for 2025 will be between $70bn (£53bn) to $72bn, up from an earlier estimate of $66bn to $72bn.
Its spending growth in 2026 is poised to be “notably larger” than this year, the company said. Meta is seeking to compete with companies like OpenAI.
On a call with analysts, Meta boss Mark Zuckerberg defended the firm’s investments, saying he saw big opportunities ahead driven by AI, both in terms of new products and for honing its current business selling ads and feeding people content.
“The right thing to do is accelerate this,” he said, adding later: “We are sort of perennially operating the family of apps and ads business in a compute-starved state at this point.”
Google and YouTube owner Alphabet similarly raised its forecast for this year to $91bn to $93bn, up from an earlier outlook of $85bn in the summer, in the latest sign of its increasingly lofty spending goals,
That estimate is nearly double the capital expenditures that the company reported for 2024.
Microsoft’s capital expenditures in the quarter through to 30 September, including on data centres, totalled $34.9bn, the company reported on Wednesday – a larger spending figure than analysts had expected, and up from $24 billion in the previous quarter.
“We continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead,” Satya Nadella, Microsoft’s chief executive, said.
Azure, the firm’s cloud computing unit, and Microsoft’s other AI products have a “real-world impact”, Mr Nadella said.
Exuberance among investors about massive AI spending has helped all three tech firms outperform the broader S&P 500 index.
But Wall Street is also focused on whether these firms’ investments are starting to yield tangible returns.
The two things holding up the US economy in the last several months have been consumers and AI-related business investments, said Aditya Bhave, senior US economist at Bank of America.
“To the extent that the latter remains strong, it’s a bullish signal for GDP growth,” he said.
The Public Company Accounting Oversight Board (PCAOB) today concluded its two-day 2025 International Institute on Audit Regulation, in Washington, DC. Established by the PCAOB in 2007, the event offers regulators from around the world a chance to discuss issues related to auditor oversight, audit quality, and investor protection. Attending the Institute this year were officials from audit regulators in 33 non-U.S. jurisdictions, as well as officials from several international organizations.
“The PCAOB’s International Institute provides a platform to exchange ideas and insights among audit regulators around the world to advance audit quality. It is also a vital forum for building and maintaining constructive relationships that enable audit oversight cooperation for the benefit of investors in U.S. capital markets,” said PCAOB Acting Chair George R. Botic.
Under the theme of “A Firm’s System of Quality Control: The Foundation of Audit Quality,” the Institute included sessions with PCAOB Board Members and staff, leaders from non-U.S. regulatory bodies, and representatives from key stakeholder groups across auditing and financial reporting. Panel discussions covered topics such as emerging opportunities and challenges in audit oversight, technology and audit regulation, the intersection of private equity investment, audits, and audit regulation, and the latest insights from PCAOB inspections.
Keynote sessions included remarks from James H. Freis, Jr., the founder of Market Integrity Solutions, and Dr. Maria Borysoff, Assistant Professor of Accounting at George Mason University.
“The annual International Institute gives us the opportunity to discuss current audit matters with other audit regulators, deepen our understanding and cooperation with each other, and better protect investors around the world,” said Karen B. Dietrich, Director of the PCAOB’s Office of International Affairs.
Learn more about the PCAOB’s international work on our website.
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About the PCAOB
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.
