Your commercial news round-up: ransom-attack, Meta glasses, AI investment, food prices

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What’s going on in the commercial news this week? Hackers have targeted Gucci, Balenciaga and Alexander McQueen, and Meta has announced a new range of AI products. Meanwhile, US companies have pledged to invest in UK AI as part of a “tech prosperity deal” and food prices continue to inflate. Read on to find out more.

• Hackers have targeted luxury fashion group Kering, which owns brands such as Gucci, Balenciaga and Alexander McQueen. Ransom-seeking group Shiny Hunters were responsible, potentially stealing data from millions of customers, such as phone numbers, names and email addresses, during an attack in June. However, Kering has confirmed that no financial information was taken. According to the BBC, samples of details showed how much some customers were spending in store, which in some cases was up to £63,000. Kering stated: “The breach was promptly identified, and appropriate actions have been taken to secure the affected systems and prevent such incidents in the future.”
   
• Technology company Meta has announced a new range of AI-powered glasses at its Meta Connect conference. The new product, which is in collaboration with sunglass brands Ray-Ban and Oakley. The glasses, which were dubbed a "huge scientific breakthrough" by Meta CEO Mark Zuckerberg, come with a camera, and capabilities to view messages and conduct video calls. Meta launched its first pair of smart glasses in 2023 but this new pair will be significantly more expensive, coming in at £586. Mike Proulx, vice president and research director of market research company Forrester, stated: "Unlike VR headsets, glasses are an everyday, non-cumbersome form factor […] the onus is on Meta to convince the vast majority of people who don't own AI glasses that the benefits outweigh the cost." The announcement comes as Meta faces ongoing scrutiny over the impact of its social media products on children.
   
• US tech firms have committed to investing billions in UK technology sector. This investment is part of a £31 billion agreement, dubbed the “tech prosperity deal”, which took place to align with President Donald Trump’s second state visit to the UK. For example, Nvidia is partnering with British infrastructure company Nscale to build more such data centres in the UK. CEO of technology company Nvidia, Jensen Huang, stated that the UK will become an “AI superpower”. When asked about the energy resources required to power AI, Huang noted that solar power would contribute, alongside off-grid gas turbines. Prime Minister Keir Starmer said the deal would create more skilled jobs, "putting more money in people's pockets and ensuring this partnership benefits every corner of the United Kingdom". In particular, the government highlighted potential for 5,000 jobs in North East England. Meanwhile, Technology secretary Liz Kendall stated that the deal doesn’t include guarantees over scrapping tax for big tech or copyright for AI companies.
   
• Food and non-alcoholic prices have risen for the fifth consecutive month, growing at an annual rate of 5.1% in August. According to the Office of National Statistics, food and drink prices are at the highest rate for 19 months. In particular, the cost of beef, butter, milk and chocolate has increased. Economists stated that food bills are rising as supermarkets pass on government increases in minimum wage and National Insurance to shoppers. However, price growth slowed in other areas, such as air fares, bringing the overall rate of inflation to 3.8%, which is the same as July. This remains above the Bank of England’s (BoE) 2% target. The British Retail Consortium said that food costs were rising faster than wage growth, which reached 4.7% between May and July. Chancellor Rachel Reeves stated that she’s “determined to bring costs down and support people who are facing higher bills." Developed market economist at investment bank ING, James Smith, said these figures weren’t “good news” for the BoE, meaning that “the prospect for further interest rate cuts this year very much hang in the balance". So far this year, the BoE has cut interest rates five times and it expects inflation to reach is peak at 4% in September.

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