Key global financial headlines from overnight and this morning include:

1. UK's Slow Response to Allies Raises Questions Over Military Effectiveness 2. Trump Dismisses Homeland Security Secretary Noem, First Cabinet Change in Second Term 3. Oracle Plans Thousands of Job Cuts as AI Data Center Expansion Strains Cash Flow 4. Pentagon: Anthropic Formally Notified of Posing Risk to US Supply Chain 5. Fed's Barkin: Sticky Inflation, Strong Jobs Data May Alter Risk Outlook 6. ECB's Villeroy Says No Reason for Interest Rate Hikes at Present

UK's Slow Response to Allies Raises Questions Over Military Effectiveness Britain's hesitant response to conflicts in the Middle East and reluctance to defend allies have again raised doubts about its military effectiveness, particularly amid US calls for broader rearmament. On Tuesday, Trump sharply criticized UK Prime Minister Keir Starmer, stating that Starmer "undermined" their historically close relationship when London refused to allow the US to use British bases for a preemptive strike against Iran. Cyprus officials also criticized London for failing to prevent an Iranian-made drone from attacking a British base on the island. This prompted offers of support from countries including France and Greece. A British destroyer is not scheduled to set sail until next week and is expected to take a week to reach the region.

Trump Dismisses Homeland Security Secretary Noem, First Cabinet Change in Second Term Trump removed Kirstjen Noem from her position as Secretary of Homeland Security, announcing that Oklahoma Senator Markwayne Mullin will replace her. In a social media post on Thursday, Trump stated the change will take effect on March 31. He indicated that Noem will transition to the role of Special Envoy for Western Hemisphere Affairs. This marks the first cabinet change during Trump's second term. "I am pleased to announce that the highly respected Senator from the great state of Oklahoma, Markwayne Mullin, will serve as US Secretary of Homeland Security," Trump wrote. "Thank you to Kirstjen for her service at 'Homeland Security'."

Oracle Plans Thousands of Job Cuts as AI Data Center Expansion Strains Cash Flow Oracle plans to cut thousands of jobs due to a cash shortage caused by its large-scale artificial intelligence (AI) data center expansion plans. Sources familiar with the matter revealed that the layoffs will affect various departments within the company and could be implemented as early as this month. The individuals requested anonymity as the plans are not yet public. Two sources indicated that some cuts will target roles the company expects to see reduced demand for due to AI technology. Data compiled by Bloomberg shows Wall Street predicts spending by its cloud division on data centers will cause Oracle's cash flow to turn negative in the coming years, with returns on these investments not expected until 2030. Last month, Oracle stated it aims to raise up to $50 billion this year through debt and equity financing. Sources with knowledge of the situation said Oracle internally announced this week it will review many open positions within its cloud division, effectively slowing or freezing the hiring process.

Pentagon: Anthropic Formally Notified of Posing Risk to US Supply Chain A senior US defense official stated that the Department of Defense has formally notified Anthropic PBC that the company and its products pose a risk to the US supply chain. The official said on Thursday, "The War Department has formally informed Anthropic leadership that the company and its products are considered a supply chain risk, effective immediately." The official used the abbreviation "War Department," which is Defense Secretary Hagseith's preferred term for the Department of Defense. A spokesperson for Anthropic declined to comment. The defense official did not specify when or how the Pentagon notified Anthropic of this determination.

Fed's Barkin: Sticky Inflation, Strong Jobs Data May Alter Risk Outlook Richmond Federal Reserve President Thomas Barkin stated that persistently high inflation and recent strong employment data may change the Federal Reserve's risk outlook. Additionally, conflict between the US and Iran could further push up key consumer prices. In an interview, Barkin said the Fed cut interest rates last year based on "the assessment at the time that labor market risks were rising while inflation risks were falling. But data released over the past few months show the situation has moved in the opposite direction." Speaking about upcoming reports, Barkin noted, "Regarding the Personal Consumption Expenditures (PCE) data we will release next week, inflation has been relatively high for several months now. This will certainly prevent us from concluding for the time being that the battle against inflation is over." The report is expected to show the PCE price index remains about one percentage point above the Fed's 2% target.

ECB's Villeroy Says No Reason for Interest Rate Hikes at Present European Central Bank Governing Council member François Villeroy de Galhau stated that, so far, there is no reason to raise interest rates in response to oil price increases caused by the Iran conflict. The Bank of France Governor said policymakers are closely monitoring energy prices and financial market developments and will conduct a more detailed economic assessment at their next policy meeting in two weeks. "Everything will depend on the duration of the conflict and whether price increases are a temporary or persistent phenomenon," he said Thursday on France Inter radio. He added, "I currently see no reason for the ECB to raise interest rates. We will decide meeting by meeting, but at present, I see no rationale for doing so."