The Middle East conflict raged on during our Easter break and George Osborne comes back to us with news from Washington and word from friends in high places, like incoming Fed Chair Kevin Warsh. He and Ed Balls discuss the failed peace talks from George’s other mate, JD Vance, and where things go from here. 

They then weigh in on the UK’s shifting tone towards the Trump administration, and why they’re becoming more critical. It’s aiding them for now, but will it come back to bite them? The ongoing defence spending dilemma also rears its head with Labour peer George Robertson openly critcising the Government. The pair predict this will come to be the biggest challenge for Rachel Reeves and the Treasury in this year’s budget.

Earlier this week the International Monetary Fund forecast that Britain would be one of the countries worst hit by the Iran war. Ed explains why he disagrees with this assessment, and how the Bank of England can avoid debilitating inflation. George cautions that Reeves is in a tough spot, and faces some unpopular choices should the IMF’s forecast come to fruition. 

Finally, George sheds some light on emerging cybersecurity threats particularly Anthropic’s Mythos model. Alarms are ringing in Washington over this model, with the new threats of AI on defence and security becoming clear. George highlights the risk and opportunity inherent in these technological innovations, and they call for regulation as these models become more and more advanced.

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