Category: 3. Business

  • CoreWeave earnings: Data-center operator posts $56 billion in contracted future revenue, but revenue guidance drops amid bubble fears

    CoreWeave earnings: Data-center operator posts $56 billion in contracted future revenue, but revenue guidance drops amid bubble fears

    CoreWeave needed a lot of things to go right on Monday as it released third-quarter financial results, and one of the most critical was showing that its contracted future revenues could hit a $50 billion target Wall Street had set as a benchmark for the AI data-center and infrastructure operator. 

    In its announcement, CoreWeave confirmed it nearly doubled its revenue backlog, which includes “remaining performance obligations” (RPOs) and other amounts it estimates will be recognized as revenue, to $55.6 billion, up from $30 billion the previous quarter. The surging backlog, which represents future revenues from customers, was driven by contracts with Meta, OpenAI, and French AI startup Poolside. Earnings and revenue, meanwhile, both beat analysts’ consensus estimates.

    The company also reported an increase in the debt on its balance sheet, however, and it revised its full-year revenue guidance downward. Following its earnings release and call with analysts, the stock dropped 6% in after-hours trading.

    Some investors have trained a gimlet eye on CoreWeave as more skeptics kick the tires of the booming AI trade and the concurrent infrastructure buildout. Concerns about CoreWeave, which some see as a potential canary-like indicator of weakness in the AI ramp-up, and about the AI build-out in general have sent the stock on a journey that has seen it tumble more than 30% from mid-August highs.

    The downward revision in revenue guidance reflected delays in construction of some of CoreWeave’s data centers. “While we are experiencing relentless demand for our platform, data center developers across the industry are also enduring unprecedented pressure across supply chains,” CEO Michael Intrator said during the analysts’ call. “In our case, we are affected by temporary delays related to a third-party data-center developer who is behind schedule.”

    Chief financial officer Nitin Agrawal offered full-year 2025 revenue guidance of $5.05 billion to $5.15 billion, down slightly from the guidance Intrator offered on the second-quarter earnings call, of between $5.15 billion to $5.35 billion. The customer impacted by the delay agreed to adjust the delivery schedule and extend the expiration date, Intrator said, which means CoreWeave will maintain the total value of the original contract.

    Agrawal said the company’s 2025 capex spending would be between $12 billion to $14 billion, down significantly from the $20 billion to $23 billion Intrator forecast last quarter. However, Agrawal said CoreWeave expects 2026 capex to soar.

    “Given the significant growth in our backlog and continued insatiable demand for our cloud services, we expect capex in 2026 to be well in excess of double that of 2025,” Agrawal said.

    Revenue leaps, losses narrow, debt increases

    CoreWeave reported revenues of $1.4 billion for the quarter, up from $584 million in the same quarter last year and beat analysts’ estimates. Profitability, at least by traditional GAAP measures, remains elusive. CoreWeave reported a net loss of $110 million, although it was an improvement over its $359.8 million loss in the third quarter last year and also better than analysts expected.

    Adjusted net loss, which shows financial performance without extraordinary items, was $41 million for the quarter compared to the same quarter last year when it was break-even, Agrawal said. Adjusted EBITDA, which shows earnings without certain one-time expenses, were $838 million in the third quarter, compared to $379 million in Q3 2024. 

    Operating income, a metric that shows profit from core businesses, fell to $51.9 million, compared to the same quarter last year when it was $117.1 million. Operating margins shrunk to 4% from 20%. 

    Meanwhile, adjusted operating income, which shows a different view on core business performance, was $217 million for the third quarter, compared to $125 million in the third quarter of 2024, said Agrawal, the CFO. CoreWeave’s third quarter adjusted operating margin was 16%, due to higher revenues, lower costs, and the timing of data center deliveries from third parties.

     While Monday was just this side of positive for CoreWeave, analysts who are bearish on the AI cloud computing company remain leery of its finances. They see the company as at risk of being overwhelmed by the significant financial commitments it has taken on to build out data centers, which currently look disproportionately large compared to its revenues and cash flow. Based on its latest earnings release, CoreWeave has $9.7 billion in bills due within the next 12 months on its balance sheet, and a total of $14 billion in current and longer-term debt. Last quarter, those figures were $7.6 billion and $11 billion, respectively. 

    CoreWeave also has $34 billion in scheduled lease payments on contracts that will commence between now and 2028. Interest expense reached $311 million for the quarter, nearly triple the figure from the year-earlier period, of $104 million. 

    CoreWeave bulls, meanwhile, remain confident that revenues from the company’s book of contracts will eventually far outstrip its debt obligations. During the past three months, CoreWeave has announced a spate of significant deals, booking a $14.2 billion deal to provide Meta with computing capacity and an agreement with Poolside for a data center with 40,000 of Nvidia’s coveted GPUs.

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  • Boeing gets nod for moving 777X forward in certification, Air Current reports

    Boeing gets nod for moving 777X forward in certification, Air Current reports

    Nov 10 (Reuters) – Boeing (BA.N), opens new tab received approval last week from the U.S. Federal Aviation Administration to begin the third of five major phases of certification flight tests for its 777-9, the Air Current reported on Monday, citing people familiar with the program’s progress.

    Reuters could not immediately verify the report.

    Reporting by Rishabh Jaiswal in Bengaluru; Editing by Sherry Jacob-Phillips

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  • AI is back — it never really went away

    AI is back — it never really went away

    Jakub Porzycki | Nurphoto | Getty Images

    Investors piled back into artificial intelligence names on Monday stateside. Shares of Nvidia jumped 5.8%, Broadcom advanced 2.6% and Microsoft climbed 1.9% to end its eight-day losing streak, its longest consecutive decline since 2011.

    Market watchers are hoping that another historically long streak — the U.S. government shutdown — could soon be snapped as well. As of this newsletter's publication time, lawmakers in the U.S. Senate are voting on a deal to reopen the government, though it still has to pass through the House and then signed into law by President Donald Trump (who has already given it his approval).

    That's not to say worries about AI's high valuations have gone away completely.

    CoreWeave on Monday reported its third-quarter earnings. It rents out Nvidia cards to AI-related firms, such as Google and Microsoft, a business model that ties it intimately to the AI trade. The company's revenue swelled 134% year on year, but it still reported a net loss and gave lower-than-expected guidance for this year.

    The general shape of those figures — high revenue and high losses — broadly reminds one of OpenAI, the industry-leading, money-bleeding startup that kickstarted the AI frenzy. Though it would of course be a stretch to equate the two companies and the factors driving their finances.

    Still, Mark Haefele, CIO of UBS's global wealth management, thinks "AI-related stocks should drive equity markets." With the U.S. government shutdown in sight to end (hopefully this doesn't jinx it), that's another obstacle surpassed for markets.

    What you need to know today

    And finally...

    Russian President Vladimir Putin on October 15, 2025.

    Alexander Zemlianichenko | Afp | Getty Images

    Russia is late to the party, but it's still preparing to enter the rare earths fray

    Russian President Vladimir Putin last week ordered his officials to complete a road map by Dec.1 "for the long-term development of the extraction and production of rare and rare earth metals."

    Moscow has fallen behind peers like China when it comes to the exploitation of its deposits of rare earth elements. While lagging behind the big players, Russia is still estimated to possess the fifth largest known reserves of rare earths, totaling 3.8 million tonnes, the United States Geological Survey stated. That's above the U.S. which is seen with 1.9 million tonnes.

    — Holly Ellyatt


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  • China taps potential of new tech application scenarios to boost economic growth

    BEIJING, Nov. 10 — China is seeking to drive high-quality economic development by exploring further application scenarios for new technologies and products, with the aim of promoting their large-scale industrial application and development, and accelerating the development of emerging industries.

    At a policy briefing in Beijing on Monday, Li Chunlin, deputy head of the National Development and Reform Commission, said that scenarios have become key innovation resources, defining the term “scenario” as a bridge that connects technology and industry, and that links research and development with the market.

    The briefing was delivered by officials of multiple government departments and came after the General Office of the State Council publicized a related set of guidelines last week.

    Li said the guidelines have specified efforts to explore and develop new application scenarios on five major fronts: the digital economy and artificial intelligence; industrial transformation and upgrading in sectors such as manufacturing and transport; industries such as mining and emergency response; social governance services; and public welfare.

    He said that these measures will provide opportunities for private capital and private enterprises to participate in the development of scenarios, and revealed that central government funding will be provided to support eligible infrastructure projects that serve major application scenarios.

    Also speaking at the briefing, Ministry of Industry and Information Technology official Yao Jun said that the ministry attaches great importance to nurturing scenarios, and it will work to accelerate the exploration of application scenarios in a wide range of fields by utilizing 5G, AI, robotics, industrial internet and BeiDou navigation technologies.

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  • Clyde & Co expands North American Trial & Defense practice with new partner hire in Washington, DC : Clyde & Co

    Clyde & Co expands North American Trial & Defense practice with new partner hire in Washington, DC : Clyde & Co

    Global law firm Clyde & Co today announced the appointment of Kirsten Wilkerson as a partner in its Washington, DC, office. Her arrival marks a strategic expansion of the firm’s North American Trial & Defense practice, reinforcing Clyde & Co’s position as a leading legal advisor to the insurance sector and deepening its litigation capabilities in a key market.



    Clyde & Co expands North American Trial & Defense practice with new partner hire in Washington, DC

    Kirsten Wilkerson is a seasoned litigator with 25 years of experience defending complex, high-value, and emerging tort claims. Her practice spans personal injury, mass torts, toxic exposure, and premises liability, among other areas. She also has extensive mediation experience, having negotiated structured settlements in complex cases across the country. 

    Eileen King Bower, Partner and Chair of Clyde & Co’s North American Board commented: “Kirsten brings a proven ability to craft and execute litigation strategies in some of the most complex and high-stakes cases. Her appointment reflects our ongoing commitment to expanding our insurance capabilities across the US and will further enhance our ability to deliver outstanding service and results for our clients.”

    Kirsten Wilkerson commented: “Joining Clyde & Co offers an exciting opportunity to contribute to its highly respected Trial & Defense practice. My experience handling complex tort claims, from environmental and toxic exposure to premises liability, aligns closely with the firm’s strategic focus. I’m looking forward to working alongside talented colleagues across the firm and helping clients navigate the challenges of high-stakes litigation.”

    Clyde & Co is a leading global law firm with a robust North American practice that offers clients industry-leading advisory and dispute resolution services. The firm opened its first North American office in New York in 2006. Since then, the firm has grown to 19 offices with more than 400 attorneys across the US and Canada, including more than 100 partners.


    About Clyde & Co

    Clyde & Co is a leading global law firm, helping organizations navigate risk and maximize opportunity in the sectors that underpin global trade and commercial activity, namely: insurance, aviation, marine, construction, energy, trade and natural resources. Globally integrated, the firm has 500 partners, 2,400 lawyers, 3,200 legal professionals and 5,500 people overall in over 70 offices and associated offices worldwide. For more information please visit www.clydeco.com.

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  • Stock market today: Live updates

    Stock market today: Live updates

    A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 10, 2025.

    Brendan McDermid | Reuters

    Stock futures are near the flatline on Monday night after a strong start to the trading week.

    Futures tied to the Dow Jones Industrial Average rose 23 points, or 0.03%. S&P futures and Nasdaq 100 futures were both up less than 0.1%.

    Major U.S. indexes rallied across the board on Monday on hopes that the record-setting U.S. government shutdown could be nearing an end. The Nasdaq Composite had its best day since May 27, with a roughly 2.3% gain, as investors bought the dip in artificial intelligence names after last week’s sell-off.

    The Senate is expected to begin voting Monday evening on the compromise federal funding deal, which would reopen the government into January and reverse some of the recent mass layoffs of federal workers. The negotiated deal does not include Democrats’ demand that any funding bill must include an extension of Affordable Care Act subsidies, and instead calls for a vote on the tax credits in December.

    Investors during the previous session piled into several risk-on names, which had led the broader market lower last week as concerns grew about the strength of the AI trade and the health of the U.S. economy. Nvidia notably jumped 5.8% on Monday, contributing more than a quarter of the S&P 500′s total upside for the day. Google parent Alphabet gained 4% while Microsoft added 1.9% to end its eight-day losing streak.

    “The end to the shutdown takes another risk off the table for markets and the economy, especially since we were edging up to a period where the shutdown would have lasting impact on the economy, by way of missed paychecks and lower consumption as a result, and even a pullback in travel,” said Sonu Varghese, global macro strategist at Carson Group. “The government re-opening will also be helpful because we’ll start getting macroeconomic data once again, and so the Fed will not go into their December meeting flying blind.”

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  • UOL Group Limited (SGX:U14) most popular amongst private companies who own 30% of the shares, institutions hold 20%

    UOL Group Limited (SGX:U14) most popular amongst private companies who own 30% of the shares, institutions hold 20%

    • The considerable ownership by private companies in UOL Group indicates that they collectively have a greater say in management and business strategy

    • 54% of the business is held by the top 4 shareholders

    • Insider ownership in UOL Group is 17%

    Trump has pledged to “unleash” American oil and gas and these 15 US stocks have developments that are poised to benefit.

    If you want to know who really controls UOL Group Limited (SGX:U14), then you’ll have to look at the makeup of its share registry. With 30% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

    Meanwhile, institutions make up 20% of the company’s shareholders. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies.

    Let’s delve deeper into each type of owner of UOL Group, beginning with the chart below.

    View our latest analysis for UOL Group

    SGX:U14 Ownership Breakdown November 11th 2025

    Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

    UOL Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see UOL Group’s historic earnings and revenue below, but keep in mind there’s always more to the story.

    earnings-and-revenue-growth
    SGX:U14 Earnings and Revenue Growth November 11th 2025

    We note that hedge funds don’t have a meaningful investment in UOL Group. Ee Lim Wee is currently the largest shareholder, with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 16% and 14% of the stock.

    On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

    While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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  • UK consumer spending slows ahead of Black Friday and budget – Reuters

    1. UK consumer spending slows ahead of Black Friday and budget  Reuters
    2. Retail sales rise just 1.6% as shoppers save for Black Friday  The Times
    3. Retail NI warns of ‘dereliction crisis’ as one in four high street premises lie vacant  Belfast News Letter
    4. Retail footfall drops for sixth consecutive month  Retail Bulletin
    5. UK retail sales growth slows as shoppers await Black Friday and budget  The Guardian

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  • Natura swings to Q3 loss on weaker Brazil demand, integration challenges

    Natura swings to Q3 loss on weaker Brazil demand, integration challenges

    SAO PAULO, Nov 10 (Reuters) – Brazilian cosmetic maker Natura (NATU3.SA), opens new tab swung to a recurring net loss in the third quarter on Monday, hit by slowing consumer demand in its local market, as well as challenges in the firm’s brand integration in Latin America.

    The company’s net loss came in at 119 million reais ($22.02 million) in the July-September quarter, reversing a 301 million real net profit recorded in the same period a year earlier.

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    It also reported recurring earnings before interest, taxes, depreciation and amortization (EBITDA) at 577 million reais in the period, a decline of 33.7% year-on-year.

    According to Natura’s financial statement, the firm faced revenue challenges throughout its operations, with net revenue reaching 5.2 billion reais in the third quarter, down 13.1% from a year earlier.

    In Brazil, Natura’s largest market, where economic growth has slowed amid the highest interest rates in nearly two decades, net revenue fell 3.7% year-on-year to 3.2 billion reais.

    “The slowdown in the beauty market in Brazil, first identified in June 2025 and still ongoing, has led to the growth of the Natura brand stabilizing after a period of low double-digit expansion,” the company added.

    In its Spanish-speaking Latin American markets, Natura cited integration challenges following the July merger of its Natura and Avon brands in Argentina. Net revenue in these markets fell 3.9% year-on-year to around 2 billion reais.

    ($1 = 5.4039 reais)

    Reporting by Fernando Cardoso; Editing by Brendan O’Boyle and Natalia Siniawski

    Our Standards: The Thomson Reuters Trust Principles., opens new tab

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  • Can researchers predict conflicts and their consequences?

    Can researchers predict conflicts and their consequences?

    Wars have many economic, political and social consequences. From changes to technology, to the re-drawing of borders, to mass losses of life, conflicts shape human history. They are also extremely challenging to predict – both in terms of their causes and effects.

    Conflicts are consequential, but their consequences are often unpredictable. Major wars are often seen as turning points that bookend specific historical periods with distinctive geopolitical and technological contexts. So, it is natural to look ahead and try to identify the coming seismic shifts.

    One of the lessons of history is that effective description does not lead to accurate prediction. Even so, it is still useful to look back at some of the well-known geopolitical, economic and technological turning points associated with war, to understand what this might mean for the future of conflict and its consequences.

    Although President Trump claims to have ended seven or eight wars, there are plenty more for him to settle. According to the Upsala Conflict Data Program (UCDP), the number of state-based armed conflicts increased from 33 cases in 2013 to 61 in 2024, spread across 36 countries.

    Figure 1. Number of state-based armed conflicts, 1946-2024

    Source: UCDP/PRIO Armed Conflict Dataset
    Note: ‘Internationalised intrastate’ conflict refers to scenarios where side A is always a government; side B is always one or more rebel groups; and there is involvement of foreign governments with troops.

    In addition to the high-profile wars in Ukraine and the Middle East, there are numerous less well-known conflicts in Sudan and in other Sahel states. UCDP also count 74 cases of large-scale non-state violence, such as the gang violence in Haiti, and 49 cases of one-sided conflicts. These are mainly local, but many hostilities – China and Taiwan or India and Pakistan, among others – could be flashpoints that escalate into more general conflicts.

    The fault lines are there, and countries are preparing for the earthquake by increasing their military spending and preparing for long wars. Even so, it is unclear whether this will make the quake less likely. Research by Efraim Benmelech and Joao Monteiro examines the relationship between military expenditure and conflict using a dataset on armed conflict and military spending for 161 countries over 75 years (from 1948 onwards). They find that even large increases in military spending produce only modest reductions in conflict risk, despite sharply raising the expected cost of war.

    Wars as geopolitical punctuation marks

    The historian, Eric Hobsbawm, labelled the period that began with the French Revolution in 1789 and ended with the outbreak of World War 1 in 1914 as ‘the long nineteenth century’. During this timeframe, economies were transformed by the diffusion of new technology from the industrial revolution, and the geopolitical landscape shifted with the development of Britain’s status as an economic and naval superpower. European wars were few and short, and the world became increasingly globalised.

    Despite the Anglo-German naval arms race of the early 20th century, the onset and length of World War I in August 1914 were unexpected. Even the bond markets, those sensitive indicators of geo-economic tension, did not ‘anticipate’ war until over three weeks after the assassination of Archduke Ferdinand (Ferguson, 2006). The celebrated economist, John Maynard Keynes, arranged his investments on the assumption that there would be no war. Even after the war began, famously many people expected it to be over by Christmas.

    After 1918, there were probably few people in Britain who thought of themselves as living in the ‘inter-war period’.  Rather, they felt that what they called The Great War had been ‘the war to end all wars’. An exception may be Keynes. In his 1919 paper, The Economic Consequences of the Peace, he mourned the loss of the globalised world of 1914. It would not achieve the same level of openness for almost three-quarters of a century.

    He also denounced the punitive ‘peace’ terms imposed by the Treaty of Versailles, whose economic effects made another war very likely – the victors inviting their own destruction. But he remained sceptical of people’s ability to predict the future. Indeed, towards the end of the book he argues that “the events of the coming year will not be shaped by the deliberate acts of statesmen, but by the hidden currents, flowing continually beneath the surface of political history, of which no one can predict the outcome”.

    The inter-war period – running from 1918 to 1939 – was one of economic turbulence. The world lacked a dominant economic organising power, with Britain unable and the United States unwilling to take charge. After World War 2 came the Cold War, where the world became crudely divided between capitalism and communism. In essence, the capitalist part was organised by the United States and the Bretton Woods institutions (including the World Bank and IMF), which had been designed to prevent the turbulence of the inter-war period. For Eric Hobsbawm, the long nineteenth century was followed by a ‘short twentieth century’. It many ways it began in 1914 and ended in 1991 – not with war but with the demise of the Soviet Union. Even so, this judgement may be premature.

    Wars as spurs to innovation

    Major wars are not only geopolitical turning points but also remove obstacles to innovation. This gives them the potential to be times of technological transformation. Drone warfare has advanced more rapidly during the two years of Ukrainian conflict than in 20 years of US government-backed R&D. The pressure of combat speeds up arms races as evaluation of safety and reliability is streamlined, and moral and ethical issues are sidelined in favour of rapid product delivery.

    The pressure to innovate applies not just to lethal weapons. The canning process was invented after prolonged research by Nicolas Appert of France in 1809, in response to Napolean needing a way of preserving food for his army and navy. It was many years later that the can-opener was invented, with soldiers using their bayonets in the first instance.

    Many medical advances have also come from the experience of war, where the need to treat large numbers of wounded patients prompted experiment and innovation. For example, wars saw big improvements in wound debridement, prosthetic limbs and plastic surgery, as well as the mass production of penicillin during World War 2.

    Manufacturing has also tended to change during periods of conflict. Process innovations, such as interchangeable parts and mass production, were actually introduced in UK naval arsenals and US gun manufacturers before being adopted by Henry Ford. The division of labour has its roots in the business of warfare.

    The importance of military procurement for technology development prompted Vernon Ruttan to ask ‘Is War Necessary for Economic Growth?’. Writing at the turn of the century, he argued that war and the threat of war would be a less powerful inducement to technical change in the first half of the 21st century than it was during the last half of the 20th century.  Whether or not his forecast proves correct, innovation does continue without war, and in many areas, civilian technology is well ahead of the military. This is partly because of the slowness of the military procurement process (compared with the short life-cycles of generations of electronics, for example).

    Even areas like cryptography, once the preserve of military and spooks, have become dominated by commercial applications. A spin-off from military research, DARPA (the US Defense Advanced Projects Research Agency) developed the internet, and a spin-off from scientific research CERN (the European Organisation for Nuclear Research) developed the World Wide Web. While GPS was originally a military system, civilian use generated a range of complementary systems – many of which are now used by the military.

    Perhaps it is not surprising that defence R&D is a major source of innovation. It is the largest component of publicly funded R&D in many countries, including the United States, the UK and France. If those resources had been spent on civil R&D – without the secrecy restrictions and diversion of scarce scientific and technical skills to the military – there may have been even more ‘innovations’. As an example of the effect of secrecy, the RSA public key cryptosystem – a method for data encryption – was discovered by Clifford Cocks at GCHQ in 1973 but was kept secret. It was then re-discovered independently by Ron Rivest, Adi Shamir and Leonard Adleman of MIT, by whose initials it is known, in 1977.

    Forecasting war

    Given the importance of such turning points, it is tempting to try and forecast the coming conflicts and their geopolitical and technological consequences. But as Lawrence Freedman demonstrates in The Future of War: A History, we are very bad at predicting the form of future conflicts. Some of the most perceptive analysts of war have been unfortunately overtaken by events.

    Immanuel Kant’s 1795 book, Perpetual Peace: A Philosophical Essay, argues that republican governments would be more inclined to promote peace and commerce, and that a union of such states could promote pacifism. Despite being followed by the Napoleonic wars, the argument remains influential and is echoed by the ‘Democratic (or Capitalist) Peace’ hypothesis, that democratic and open-market states do not tend to fight each other.

    Norman Angell’s 1910 book, The Great Illusion, points out that economic integration and the cost and destructiveness of modern weapons made war so expensive that no country could gain from starting one. Although he argues that war was unprofitable rather than impossible, the book is seen by some as an incorrect forecast. While he was correct about the expense and destruction involved, that did not stop World War 1. Governments do not always understand or act in their country’s best economic interests, after all.

    While World War 2 was not as unexpected as World War 1, expectations about the effects of technology, particularly about the effects of bombing, proved wrong. It was physically more destructive than predicted, but, with the exception of the atomic bomb, strategically less decisive.

    The atomic bomb shaped much Cold War prediction. The black humour of Dr Strangelove and Tom Lehrer reflected widespread perceptions of likely nuclear proliferation and Armageddon. By the 1960s, new nuclear powers arrived about every five years: the United States in 1945, Russia in 1949, the UK in 1952, France in 1960, and China in 1964. Optimists – hoping the trend would continue – expected about 17 nuclear powers by 2025. Pessimists – assuming that every country that could build a nuclear weapon would – expected about 50 nuclear powers by 2025. Both groups would be astonished to know that there are now only nine nuclear powers (see Figure 2), and that three Soviet republics – Ukraine, Belarus and Kazakhstan – surrendered their nuclear weapons.

    Figure 2. Total inventory of nuclear warhead stockpiles, 1946-2024

    Source: SIPRI Yearbook 2025 & Federation of American Scientists (FAS)
    Note: Global historical data for nuclear warhead stockpiles (1946–2024) were sourced from the Federation of American Scientists (FAS). 2024 country-specific inventory data were obtained from the SIPRI Yearbook. This methodology results in a minor variance between the aggregated 2024 FAS figure and the sum of the SIPRI country inventories.

    In his 2011 book, The Better Angels of Our Nature, Steven Pinker presents data to argue that violence has declined around the world, although he did not claim the trend was inevitable. Even so, given the current prevalence of conflict, he is in danger of suffering the same fate as Norman Angell and being remembered for an incorrect forecast.

    The size distribution of wars, like that of earthquakes, is ‘fat-tailed’ – characterised by rare but extreme events. The fact that there have only been minor rumbles recently does not necessarily mean that the big one is not coming. There are reasons to be cheerful; there is less nuclear proliferation than expected, the Soviet Union departed peacefully, and World War 3 has not yet arrived.

    Where can I find out more?

    Because of the pace of events, commentary from think tanks is often the most effective source:

    Who are experts on this question?

    Author: Ron Smith, Birkbeck University of London.
    Photo: aapsky for iStock.

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