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With AI hype dominating the stock market, you can probably guess and guess correctly that this years top-performing global stock sector is tech. But which sector has come in just a whisker behind it?

Call, text, email or otherwise message your broker: Its a funny index thats barely six years old called Communication Services.

Never heard of it? You arent alone. So what is it, and does it have staying power?
Communication Services mashes growthy, tech-like firms with traditional media and stodgy old telecoms a tale of diverging industries.

Its predecessor was the telecom sector classically defensive, highly regulated, boring, slow-growers. Their steady revenues, big dividends and low volatility make them pretty darned economically insensitive.

Hence, they lead in down markets. Consider: S&P 500 telecom stocks beat the broader index in four of five bear markets since 1990. The exception, 2000 2002, was when fantasies like WorldCom, Global Crossing and Lucent fantastically imploded.

But stodginess cuts both ways. Telecom lagged in four of the last five bull marketshugely. The average underperformance? A whopping 128%. Since October 2022s low, S&P 500 and World Telecom returns are less than half the broader indexes gain.

In 2018, however, index providers S&P and MSCI did some rejiggering maybe a little too quietly that shook up how investors can approach many of these companies.

Namely, they concluded several Silicon Valley giants didnt belong in tech anymore. They were 21st Century takes on communications, profiting more on ads than hardware and software. Their solution?

Combining several tech giants with media companies and defensive telecoms in a new Communication Services sector.

Communications is no longer just about phone lines, wired or wireless. Its also search engines, social media, streaming and online commerce. The old telecom industry is now just 17% of the new sectors market cap globally, lower still in America.

Meanwhile, the Interactive Media & Services industry dominates, comprising 62% of the sector globally. Nearly all of that is American almost 99%. You know the big names Meta and Google parent Alphabet.

But it also includes online recruiting, web-based auto selling and buying firms, and more.

Communication Services also includes the entertainment industry, 15% of market cap home to big streaming and gaming firms (also tech-like!). The other 7% is media cable providers, TV networks and advertisers.

Hence, large parts of this diverse sector act like tech: low-to-no dividends, low barriers to entry, fat gross operating profit margins (GOPMs in accounting lingo), big reinvestment in innovation, buzzy offerings and huge growth.

These tech-like tendencies juice returns in bull marketsincluding 2024s. Hence, the MSCI World Communication Services 19.3% overall return, powered by Interactive Media & Services 29.9% surge. That tops techs 25.5% and cruises past world stocks overall 11.4%.

The sectors entertainment firms are up 14.1%, too. But its telecom segments languish: Wireless and Diversified Telecoms are up just 7.9% and 2.2%, respectively. All parallel trends date to this bull markets October 2022 birth.

Few saw that coming just the opposite, after tech-like Communication Services stocks got whacked in 2022. But sentiment got too sour. Markets looked forward and saw a brighter reality ahead, fueling a rally.

Stocks presciently pre-priced the sectors 46.3% first-quarter profit rebound.

So, can Communication Services keep leading? Yes and no. Telecoms shouldnt lead until the next downturn. While the bull market charges, the sectors tech-like chunk should shine as corporations are toggling to offense after two years of cost-cutting defensive maneuvers. Their enviable GOPMs (see above) enable them to self-finance growth, rendering interest rates feckless. The advertising market, central to many of these firms, should reheat, too.

Bottom line: Diversify across the offensive industries. Go light on the defensive ones.

Ken Fisher is the founder and executive chairman of Fisher Investments, a four-time New York Times bestselling author, and regular columnist in 21 countries globally.

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Politics

Starmer ran the gauntlet with Trump but just about emerged intact

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Starmer ran the gauntlet with Trump but just about emerged intact

When TV cameras are let in to film world leaders meeting in person, the resulting footage is usually incredibly boring for journalists and incredibly safe for politicians.

Not with Donald Trump.

Sir Keir Starmer ran the gauntlet on Monday.

Trump latest: President treats PM to a ride on Air Force One

Put through a total of almost 90 minutes of televised questioning alongside the American leader, it was his diciest encounter with the president yet.

But he still just about emerged intact.

For a start, he can claim substantive policy wins after Trump announced extra pressure on Vladimir Putin to negotiate a ceasefire and dialled up the concern over the devastating scenes coming from Gaza.

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There were awkward moments aplenty though.

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Trump calls London mayor a ‘nasty person’

Top of the list is Mr Trump’s trashing of the prime minister’s Labour colleague, London mayor Sir Sadiq Khan.

But more important than that, Monday’s meeting was the clearest representation of the political gulf that separates the two leaders.

“He’s slightly more liberal than me,” Mr Trump said of Sir Keir when he arrived in Scotland.

What an understatement.

Read more:
Trump reignites row with Sir Sadiq Khan

EU leaders resigned to US trade deal

U.S. President Donald Trump meets with British Prime Minister Keir Starmer at Trump Turnberry golf club on July 28, 2025 in Turnberry, Scotland, Britain. Christopher Furlong/Pool via REUTERS
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The two leaders held talks in front of the media. Pic: Reuters

On green energy, immigration, taxation and online regulation, the differences were clear to see.

Sir Keir just about managed to paper over the cracks by chuckling at times, choosing his interventions carefully and always attempting to sound eminently reasonable.

At times, it had the energy of a man being forced to grin and bear inappropriate comments from his in-laws at an important family dinner.

But hey, it stopped a full Trump implosion – so I suppose that’s a win.

My main takeaway from this Scotland visit though is not so much the political gulf present between the two men, but the gulf in power.

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Trump gives Putin new deadline to end war

Sir Keir flew the length of the country he leads to be the guest at the visiting president’s resort.

He was then forced to sit through more than an hour of uncontrolled, freewheeling questioning from a man most of his party and voters despise, during which he was offered unsolicited advice on how to beat Nigel Farage and criticised (albeit indirectly) on key planks of his government’s policy platform.

In return he got warm words about him (and his wife) and relatively incremental announcements on two foreign policy priorities.

So why does he do it?

Because, to borrow a quote from a popular American political TV series: “Air Force One is a big plane and it makes a hell of a noise when it lands on your head.”

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World

Israeli human rights organisations accuse country of genocide

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Israeli human rights organisations accuse country of genocide

Two Israeli human rights organisations have said the country is committing genocide against Palestinians in Gaza.

In reports published on Monday, B’Tselem and Physicians for Human Rights (PHR) said Israel was carrying out “coordinated, deliberate action to destroy Palestinian society in the Gaza Strip”.

The two groups are the first major voices within Israeli society to make such accusations against the state during nearly 22 months of war against Hamas.

Israel has vehemently denied claims of genocide. David Mencer, a spokesperson for the government, called the allegation by the rights groups “baseless”.

He said: “There is no intent, (which is) key for the charge of genocide… it simply doesn’t make sense for a country to send in 1.9 million tonnes of aid, most of that being food, if there is an intent of genocide.”

B’Tselem director Yuli Novak called for urgent action, saying: “What we see is a clear, intentional attack on civilians in order to destroy a group.”

The organisation’s report “is one we never imagined we would have to write,” Ms Novak said. “The people of Gaza have been displaced, bombed, and starved, left completely stripped of their humanity and rights.”

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PHR said Israel’s military campaign shows evidence of a “deliberate and systemic dismantling of Gaza’s health and life-sustaining systems”.

Both organisations said Israel’s Western allies were enabling the genocidal campaign, and shared responsibility for suffering in Gaza.

“It couldn’t happen without the support of the Western world,” Ms Novak said. “Any leader that is not doing whatever they can to stop it is part of this horror.”

Hamas said the reports by the two groups were a “clear and unambiguous testimony from within Israeli society itself regarding the grave crimes perpetrated by the occupation regime against our people”.

Read more:
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UN: ‘Vast amounts of aid needed to stave off catastrophic health crisis’

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Sky News on board Gaza aid plane

Dire humanitarian conditions

Since Israel launched its offensive in Gaza following the deadly Hamas attack on 7 October 2023, nearly 60,000 people – mostly civilians – have been killed, according to Gaza health officials.

Much of the infrastructure has been destroyed, and nearly the whole population of more than two million has been displaced.

An increasing number of people in Gaza are also dying from starvation and malnutrition, according to Gaza health authorities.

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On Monday, the Gaza health ministry reported that at least 14 people had died from starvation and malnutrition in the past 24 hours, raising the total number of hunger-related deaths during the war to 147.

Among the victims were 88 children, with most of the deaths occurring in recent weeks.

UN agencies say the territory is running out of food for its people and accuse Israel of not allowing enough aid deliveries to the enclave. Israel denies those claims.

Israeli Prime Minister Benjamin Netanyahu on Sunday said “there is no starvation in Gaza” and vowed to fight on against Hamas.

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Trump: Gaza children ‘look very hungry’

US President Donald Trump said on Monday that many in Gaza are facing starvation and implied that Israel could take further steps to improve humanitarian access.

Israel has repeatedly said its actions in Gaza are in self-defence, placing full responsibility for civilian casualties on Hamas. It cites the militant group’s refusal to release hostages, surrender, or stop operating within civilian areas – allegations that Hamas denies.

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UK

Two killed in stabbing at business premises in London

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Two killed in stabbing at business premises in London

Two men have died after a stabbing in central London.

Police were called to a business premises in Long Lane, Southwark, at 1pm on Monday, where they found four people had been stabbed.

A 58-year-old man died at the scene while three others were taken to hospital, the Metropolitan Police said. These included a 27-year-old man who has since died.

A third man, who is in his thirties, remains in hospital with injuries described as non-life-threatening.

Another man in his thirties, who has been detained in connection with the incident, remains in a life-threatening condition in hospital.

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Detective Chief Superintendent Emma Bond said: “Our investigation is in the early stages and we are working hard to understand the full circumstances of this shocking incident.

“At this point, we do not believe it to be terrorism-related and there is no further risk to the public.”

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