Plus, Pentagon Anthropic feud has AI warfare at stake as deadline looms.

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Daily Briefing

Daily Briefing

By Kate Turton

Hello. Pakistan carries out air and ground strikes inside Afghanistan, the Pentagon Anthropic feud has sales and AI warfare at stake, and an embarrassing defeat for UK's Starmer as Greens win first parliamentary by-election.

Plus, LVMH shut down in Russia when the war started. But it kept a storied hotel that serves sanctioned clients.

Today's Top News

 

Taliban soldiers carry a rocket launcher in a vehicle, near Torkham border in Afghanistan, February 27, 2026. REUTERS/Stringer 

  • Pakistan bombed government targets in Afghanistan's Kabul and in Kandahar, where its Taliban leadership is based, officials from both countries said, with Pakistan's defense minister calling the conflict "open war". Here's how Pakistan and Taliban Afghan militaries stack up.
  • US President Donald Trump’s claim that Iran will soon have a missile that can hit the United States is not backed by US intelligence reports, and appears to be exaggerated, according to three sources familiar with the reports.
  • With Republicans defending a narrow Senate majority, a messy Texas primary threatens to turn one of the party’s safest seats into an unexpected battleground for control of Congress.
  • The US aims to process 4,500 refugee applications from white South Africans per month, far above Trump's stated refugee program cap, and is installing trailers on embassy property in Pretoria to support the effort, a US contracting document said.
  • US Border Patrol is under scrutiny again after a nearly-blind, Rohingya refugee was released by agents and later found dead on the streets of freezing Buffalo. Kristina Cooke is on the Reuters World News podcast with details about Nurul Amin Shah Alam. Listen now.
  • Prime Minister Keir Starmer's Labour suffered an embarrassing election defeat to the left-wing Green Party in an area of Manchester it had dominated for almost a century, a result that underscored the breakdown of Britain's two-party politics. 
  • Canadian Prime Minister Mark Carney arrives in Mumbai on his first official visit to India, hoping to reset the sometimes fractious relationship with the world's most populous country as he seeks new global alliances.
 

Business & Markets

 
  • An AI productivity boom, if it materializes, may help buy major economies more time to clean up their strained public finances, economists say. Debt is above 100% of output across most rich economies and set to rise given aging population costs, interest bills and pressure to spend more on defense and climate change.
  • An explosive feud between the Pentagon and top artificial intelligence lab Anthropic is set to come to a head later on Friday over concerns about how the military could use AI at war.
  • Under pressure from politicians, central bankers are fighting back. However, their efforts are exposing a delicate trade-off: defending independence may preserve inflation credibility, but at the cost of appearing political themselves.
  • On paper, American consumers spent last year tightening their belts, and even retail heavyweights stumbled. But sit-down restaurants and some drive-through chains buzzed with patrons seeking a special treat or cheap comfort food.
  • Paramount Skydance emerged as the winner in a months-long battle to acquire Warner Bros Discovery after streaming giant Netflix refused to raise its bid for the storied Hollywood studio.
  • Activists are set to take to British streets for two days of protests against the expansion of data centers to serve booming demand for artificial intelligence, and the impact of the facilities on communities and the environment.
 

The Week Ahead

  • This weekend, some of the OPEC+ group of major exporters, which includes Russia, review its crude production plans.
  • US Secretary of State Marco Rubio meets Israeli Prime Minister Benjamin Netanyahu in Israel on Saturday. 
  • Voters are set to go to the polls in Texas, North Carolina and Arkansas on Tuesday for the first primary elections of 2026. 
  • Nepal will hold a national election on Thursday, its first since deadly youth-led anti-graft protests toppled the government.
  • Here's all you need to know about the coming week in financial markets.
 

LVMH's storied Russian hotel that serves sanctioned clients

 

The Grand Hotel Europe in Saint Petersburg, Russia February 18, 2026. REUTERS/Stringer

When the war in Ukraine started in February 2022, LVMH shuttered its Louis Vuitton, Dior and Bulgari boutiques in Russia days before Europe imposed export sanctions on luxury goods.

The conglomerate – controlled by French billionaire Bernard Arnault – also sold its Sephora stores at a loss, even though their mass-market products were not subject to sanctions. And LVMH donated 5 million euros to the victims of what it called the “tragic situation” in Ukraine.

One of its businesses in Russia, however, has kept operating: The Grand Hotel Europe in St. Petersburg, owned through LVMH’s Belmond chain of luxury hotels and trains.

The storied hotel itself isn’t subject to sanctions and is operating legally. However, it has continued to receive payments for providing services to corporate clients that have been sanctioned by Europe and the UK.

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And Finally...

Players compete on a man‑made rink during the Karakoram WinterLude in Sost, Upper Hunza, Pakistan, January 14, 2026. REUTERS/Akhtar Soomro

Every winter for decades, the pool in front of Aleena Gul’s house in Pakistan’s Hunza Valley has transformed into an ice rink, framed by jagged Himalayan peaks and the stone walls of Altit Fort.

This year, it did not.

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