Business chiefs shift investment plans amid geopolitical tensions
Top UK company bosses are being forced to shift or ditch their investment strategies amid rising geopolitical and trade tensions.
The latest EY-Parthenon chief executive outlook survey – which surveyed 100 UK bosses – showed nearly 80 per cent had switched up investment plans due to developments in international trade policy and wider political pressures.
Nearly a third of company bosses said they had delayed planned investment as a result of geopolitical flare ups, whilst another third said they were accelerating due to matters. One in ten said they would scrap an investment altogether.
“UK CEOs are recalibrating their strategies, demonstrating remarkable resilience and adaptability, while also showing a willingness to make bold decisions in the face of ongoing geopolitical and economic uncertainty,” said Silvia Rindone, EY UK managing partner.
It comes after global businesses and markets were rocked at the beginning after President Donald Trump fired his latest tariff salvo only to retreat days weeks later.
The White House slapped sweeping levies on its Nato peers after their defence of Greenland’s sovereignty, which Trump has vocalised desires for the US to acquire.
AI is ‘nuanced’ for business chiefs
But despite the trade offensive, Trump rowed back fuelling allegations of TACO trade (‘Trump Always Chickens Out’).
Still, the move put businesses markets on edge as they braced for a major shakeup in international trade.
Analysts at Capital Economics warned that if the tariffs came into place it could trigger a recession for the UK economy if the impact is felt “all at once”.
The EY survey – which tracks the views of 1,200 global chief executives, 80 per cent of which oversee a firm with global revenues north of $500m – also revealed nearly all respondents were doubling down on investments into AI.
“While there is excitement surrounding the potential of AI, the reality for CEOs is far more nuanced,” Rindone said.
“It is essential that business leaders adopt a pragmatic approach that acknowledges the transformative impact of AI while also addressing challenges such as cybersecurity risks, the regulatory landscape, and upskilling their workforce.”