AI bust risks ripple effects from growth to credit, BIS says - The Business Times

• The Bank for International Settlements (BIS) has warned that the current AI boom may be unsustainable, posing a potential risk to global economic stability. • The report highlights mounting financial vulnerabilities, including rising debt levels, strained public finances, and the persistent threat of returning inflation.

• Traders are increasingly adding Upwork (UPWK) to their buy lists, viewing it as a "value name" likely to benefit from safety flows into lower-priced equities. • Market sentiment remains measured, as there are currently no major catalysts driving a significant surge in stock activity.

• Chinese hedge funds have issued warnings that the artificial intelligence sector may be entering a "super bubble," signaling a high risk of a major market crash. • Analysts suggest that if a market correction occurs, some AI-related stocks could experience drastic price drops of up to 80%.

• Apple unveiled a new artificial intelligence strategy at its 2026 Worldwide Developers Conference (WWDC), marking a significant pivot from previously criticized approaches. • Analysts at Bank of America Securities suggest this "material positive reset" is designed to strengthen Apple's software ecosystem.

• Despite record selling of Indian equities by Foreign Institutional Investors (FIIs) so far in 2026, companies linked to AI infrastructure have delivered robust shareholder returns. • Strong growth is seen in firms supplying hardware, cables, wiring, and grid systems for data centers and chipmakers, with Acutaas Chemicals and CG Power rising 93% and 45% respectively.

• A heartfelt Chinese film by director Lan Hongchun, the final part of a Teochew-dialect family trilogy, unexpectedly triggered intense political and cultural debates in Singapore. • Han Yong May, deputy editor-in-chief of SPH’s Chinese Media Group, analyzes how the film became a catalyst for a cognitive warfare campaign.

• Global technology giants are increasing their investments in India, focusing on the expansion of artificial intelligence, cloud computing, and semiconductor infrastructure. • The surge in funding aims to solidify India's strategic position as a global hub for digital infrastructure and high-tech manufacturing.

• NPCI CEO Dilip Asbe stated that AI will propel Unified Payments Interface (UPI) transactions from 750 million to one billion daily. • The growth will be driven by AI-powered fraud detection, improved credit distribution, and the implementation of multilingual voice onboarding.

• Chinese artificial intelligence and semiconductor companies are spearheading a rebound in onshore initial public offerings (IPOs). • Ho-Yin Lee, Citigroup's Asia-Pacific co-head of technology and communications, notes that mainland listings allow companies to access a deeper pool of domestic capital.

• Chinese AI developers are rapidly narrowing the technological gap with the U.S., specifically with the emergence of the GLM-5.2 model. • The new model demonstrates advanced capabilities in cybersecurity, challenging the previous dominance of American AI systems in this critical sector.

• Stock markets in Japan, South Korea, and Taiwan experienced extreme volatility last week, swinging between record highs and sharp selloffs. • The instability is being driven by a "leverage problem," as retail investors increasingly use borrowed funds to speculate on AI-related stocks.