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Intel appoints new chief after abrupt exit of Pat Gelsinger

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Intel appoints new chief after abrupt exit of Pat Gelsinger

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Intel has appointed Lip-Bu Tan as its chief executive, ending a months-long search for a new leader after the troubled US chipmaker’s board ousted Pat Gelsinger in December.

Tan, former chief executive of chip design software company Cadence, quit Intel’s board in August last year in an apparent disagreement over the direction of the company under the then-CEO.

He had long been considered a leading candidate to replace Gelsinger, who departed abruptly as Intel battled a crisis that has resulted in thousands of lay-offs and the pausing of big manufacturing projects in Europe.

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Tan’s appointment comes at a critical moment for Intel and the geopolitically sensitive semiconductor industry, as the US seeks to build domestic manufacturing as a safeguard against China.

Most of the world’s leading-edge chips are built in Taiwan, leaving the supply chains of several top US technology companies exposed to an escalation of tensions between Taiwan and China.

As the only US company theoretically capable of making cutting-edge chips, Intel is critical to hopes of creating US chip manufacturing “champions”.

Trump administration officials have recently explored options for the company, including a potential tie-up with rival TSMC.

Some investors have mooted a potential split of Intel’s manufacturing and design businesses as a solution to its problems.

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The chip manufacturing business has haemorrhaged billions of dollars as it spends heavily on new plants and struggles to regain its technological edge over competitor TSMC.

At the same time, the chip design business has failed to capitalise on booming demand for data centre chips that power artificial intelligence, with Nvidia and AMD establishing a clear lead. 

In a letter to employees on Wednesday, Tan said his aim was to build “world-class” businesses in both foundry and products.

Intel shares rose more than 11 per cent in after-hours trading on Wednesday following the announcement of Tan’s appointment.

In his letter to employees, Tan said he was “never deterred by challenges” and that he was “confident we can turn our business around”.

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He added in a statement that he saw “significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders”.

Chief financial officer David Zinsner and product business chief Michelle Johnston Holthaus had been serving as co-CEOs of Intel on an interim basis since Gelsinger’s departure. Zinsner will retain the CFO role, with Johnston Holthaus continuing as product CEO.

The pair have presided over a belt-tightening effort, which has been under way since August, while selling off assets deemed non-essential. They announced the spin-off the company’s venture capital arm earlier this year and have explored the sale of a majority stake in its chipmaking unit Altera.

The chip sector had been riding high on a wave of enthusiasm for AI last year, but shares have slipped across the board as Trump pursues new tariffs and potential new export controls on chips produced by the likes of Nvidia loom.

Intel board chair Frank Yeary said Tan’s “industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs”.

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Tan led Cadence for 12 years until 2021, joining Intel’s board the following year. He was given special responsibilities to oversee the company’s troubled foundry business, which ran at a $7bn loss in 2023.

He is also a tech investor, as a founding partner of Walden Catalyst Ventures and chair of Walden International.

Tan was “decisive and realistic”, and his appointment “ends the uncertainty” surrounding Intel’s leadership, said G Dan Hutcheson, vice-chair of consultancy TechInsights.

The “downside”, Hutcheson said, was his lack of experience in running an integrated semiconductor manufacturing company that both designs and builds chips.

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Nato’s Mark Rutte praises Donald Trump for making Europe ‘pay in a BIG way’

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Nato’s Mark Rutte praises Donald Trump for making Europe ‘pay in a BIG way’

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Nato secretary-general Mark Rutte has praised Donald Trump for making Europe “pay in a BIG way” on increased defence spending, in a private message that the US president shared on his social media platform.

“Donald, you have driven us to a really, really important moment for America and Europe, and the world,” Rutte wrote ahead of a Nato summit that begins on Tuesday, referencing the US president’s demand that all allies commit to raising defence spending to 5 per cent of GDP.

“You will achieve something NO American president in decades could get done,” he added, according to screenshots of his text message posted by Trump to Truth Social on Tuesday.

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Screenshots of a text message sent by Mark Rutte to Donald Trump, posted by the US president to Truth Social on Tuesday © Donald J. Trump/Truth

“It was not easy but we’ve got them all signed onto 5 per cent!” Rutte wrote. “Europe is going to pay in a BIG way, as they should, and it will be your win.”

Rutte also praised Trump’s “decisive action in Iran, that was truly extraordinary, and something no one else dared to do”.

A Nato official confirmed the message’s authenticity.

The screenshots appeared on Truth Social as the US president flew to The Hague for a Nato summit that begins on Tuesday evening.

Trump had asked all members of the alliance to spend 5 per cent of GDP on defence over the next decade or risk losing the US security guarantees that have underpinned the continent’s security for decades.

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While many European allies including Germany, France and the UK have committed to meet Trump’s new target, Spain has secured an opt-out, increasing the likelihood of a clash at the meeting.

On Tuesday, Rutte sought to reassure allies that as long as they drastically increase their defence spending, Trump would not withdraw US guarantees.

“There is total commitment by the US President . . . to Nato,” Rutte said ahead of the event. “However it comes with an expectation that we will deal with this . . . huge irritant that we are not spending enough.

“My message to my European colleagues is: stop worrying so much . . . Stop running around being worried about the US. They are with us,” he added.

To meet Trump’s demands, Rutte has drawn up a plan for allies to allocate 3.5 per cent of their GDP to core military spending and 1.5 per cent on areas such as cyber and infrastructure by 2035, to fill gaps in European capabilities.

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German Chancellor Friedrich Merz said that a massive defence spending plan presented to his cabinet on Tuesday showed that Europe’s largest nation was a “strong and reliable” partner.

“We’ve showed our allies we can be relied upon,” he told German MPs before departing for The Hague. “Germany is back on the international stage.”

Germany plans to boost military spending by more than two-thirds over the next four years, reaching 3.5 per cent of GDP in core military spending in 2029, faster than France and the UK.

But Spanish prime minister Pedro Sánchez has refused to commit to the overall 5 per cent target and secured an opt-out by pledging to meet the Nato capabilities goal at what it estimates will be a lower cost.

Other capitals have also requested the same “flexibility” that Rutte has granted Madrid, increasing the risk for the summit to end in acrimony and triggering Trump’s ire over what he sees as European allies freeloading on American largesse.

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Who will be the Democratic nominee for NYC mayor? Millions are betting live

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Who will be the Democratic nominee for NYC mayor? Millions are betting live

Major decisions about who will be New York City’s next top mayoral candidate are set to be made Tuesday, and millions of Americans are betting live on their election odds.

Event contract platform Kalshi recently launched market predictions for multiple NYC election-related prompts, including who will reign in the top spot for Democratic mayoral nominee and the overall race winner.

The 2025 race for New York City mayor is tightening, with former Gov. Andrew Cuomo’s lead shrinking less than a week ahead of the crucial primary, a poll indicated. Zohran Mamdani, a 33-year-old Democratic socialist state assemblyman from Queens, stands in second place in the poll.

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As of Tuesday morning, Kalshi showed Mamdani with a 56% chance of winning the Democratic Party nomination this year, and Cuomo with a 44% chance. Bettors have poured more than $8 million into the total series volume, according to Kalshi’s website.

ELECTION ‘WHALE’ BETTOR MADE MUCH MORE ON TRUMP WIN THAN ORIGINALLY THOUGHT, ANALYSIS SHOWS

Buying a “yes” share for Mamdani costs roughly $0.57 while a “no” share costs $0.46; Cuomo’s “yes” share can be bought for roughly $0.46 and a “no” share for $0.56.

Kalshi market bettors are buying their last shares before NYC’s mayoral primary election closes at 9 p.m. ET Tuesday, June 24, 2025. (Getty Images)

One Kalshi user posted in the comment section that his $984.75 investment on Mamdani being confirmed as the Democrats’ nominee would make a return of $1,968.96.

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Another prediction market asks bettors who will reign as the NYC mayoral race winner between a Democrat, Republican or current Mayor Eric Adams. Eighty-two percent of bettors predicted a Democrat will win, with 12% for Eric Adams and 7% for a Republican.

Because of the large consensus for a Democratic candidate winning the blue city election, buying a “yes” share costs $0.83 and a “no” share costs $0.19.

In general, prediction markets like Kalshi and other platforms, including Polymarket and PredictIt, allow users to trade on the outcome of future events with yes-no questions. Individual trades are between $0 and $1, and contracts pay $1 if the event occurs.

While primary voting will take place until 9 p.m. ET Tuesday, more than 384,000 Democrats cast ballots in early voting, which ended on Sunday.

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The winner of the Democratic Party primary is traditionally seen as the overwhelming frontrunner in the November general election in the Democrat-dominated city.

However, this year, the general election campaign may be a bit more unpredictable with incumbent Adams running for reelection as an Independent and his approval ratings sinking to historic lows.

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Fox News’ Paul Steinhauser and Pilar Arias contributed to this report.

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UK defence funding will hit 5% of GDP by 2035, Starmer to tell Nato summit

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UK defence funding will hit 5% of GDP by 2035, Starmer to tell Nato summit

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Sir Keir Starmer will pledge to Nato that the UK will raise spending on national security to 5 per cent of GDP within a decade, as members attempt to convince US President Donald Trump to stick with the alliance.

The pledge would raise core defence spending to 3.5 per cent of GDP by 2035, with an additional 1.5 per cent on security related infrastructure such as cyber security and border protection.

The UK prime minister had already pledged to raise defence spending from around 2.3 per cent currently to 2.6 per cent by 2027, with an ambition to increase it to 3 per cent in the next parliament.

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But the new pledge of 3.5 per cent on core defence spending means billions more pounds will eventually flow into the army, navy and air force as the UK attempts to reinforce itself against Russian aggression and prove to the US it is pulling its weight.

Nato secretary-general Mark Rutte has pushed for the 5 per cent figure — including the 1.5 per cent on adjacent security spending — partly to boost the headline number for Trump’s eyes, given the US president’s focus on Europe’s lower levels of defence spending in recent decades.

While almost all Nato members have agreed to the spending level, Spain opted out on Sunday, in a blow to the cohesiveness of the group as it tries to present a united front to Trump.

The UK’s funding will make possible many of the plans outlined in this month’s strategic defence review, which recommended a greater use of drones, autonomous vehicles and artificial intelligence alongside new nuclear warheads, submarines and fighter jets.

Carl Emmerson at the Institute for Fiscal Studies said the increase, in today’s terms, would be like adding approximately £30bn to the 2027 target of around spending £75bn on core defence.

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The pledge will raise questions, however, over how the increase will be funded, and whether other public services will face cuts, at a time when the UK is facing a financial squeeze.

Chancellor Rachel Reeves is expected to have to raise taxes in the autumn to give her financial headroom, and the government is already facing resistance to plans to cut the UK’s welfare budget.

UK Prime Minister Sir Keir Starmer: ‘This is an opportunity to deepen our commitment to Nato’ © Simon Wohlfahrt/Bloomberg

Starmer said the UK must “navigate this era of radical uncertainty with agility, speed and a clear-eyed sense of the national interest” to provide security for “working people”.

“This is an opportunity to deepen our commitment to Nato and drive greater investment in the nation’s wider security and resilience,” Starmer added.

The 1.5 per cent of non-core spending has been billed by the government as “homeland security” and “resilience” investment and is expected to cover things such as civil preparedness, cyber threats, border and energy security and other areas with defence-adjacent purposes, with the details to be agreed at the Nato summit.

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It was not immediately clear, however, whether this will attract any additional spending.

Once adjacent spending was included, the government said UK security spending would be 4.1 per cent of GDP by 2027 — the same year that core defence spending is expected to reach 2.6 per cent.

That implies the adjacent spending is already close to 1.5 per cent of GDP, if it is to reach that level within two years.

Downing Street said more details of the spending plans would be laid out at the Nato summit on Wednesday and Thursday, which Trump is expected to attend.

Defence secretary John Healey
Defence secretary John Healey during a visit to open the new BAE Systems artillery factory in Sheffield in June © Danny Lawson/PA

The UK played up its need to become less reliant on allies, as the Trump administration threatens to reduce support for Europe.

“In a more transactional world, the report determines that building our own sovereign, independent capabilities in strategically important areas will reduce our dependency on other nations,” the government said.

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Ministers hope the additional spending will also help boost the UK economy, calling the national security strategy “a call to action that our entire society needs to become more resilient”.

It added: “Recognising that national security means more than it used to — from the security of our borders to the health of our economy, from supply chains to food prices and from safety on our streets to the online world.”

“Faced by this reality in a world of increasing ‘grey zone’ threats, we cannot take a piecemeal approach that enhances the security of one part of our critical national infrastructure but leaves gaps elsewhere for our adversaries to exploit.”

Additional reporting by Sam Fleming

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