Bust

• Asian stock markets declined as investor concerns over artificial intelligence valuations outweighed Samsung's strong earnings report. • Major indices saw losses, including the Shanghai Composite falling 1.2% and the CSI 300 dropping 1%, while Australia's S&P/ASX 200 slipped 0.4%. • Regional economic data showed Thailand's June inflation slowed to 2.4% from 2.8%, primarily driven by lower energy costs.

Shipment discovered at airport in Monrovia and valued at £14.2m had been falsely declared as seasoning cubesAuthorities in Liberia have charged five suspects over one of the largest drug seizures in the country’s history, after police found more than 200kg of cocaine falsely declared as Maggi seasoning cubes.The shipment, with an estimated value of $19m (£14.2m), was discovered at the international airport in Monrovia on 8 June, but the suspects were not named until a press briefing at the weekend. Continue reading...

• President Donald Trump, 80, faced widespread criticism after making a factual error regarding the Declaration of Independence during a Fourth of July speech on Saturday night. • While attempting to condemn socialism, Trump cited a specific section of the Declaration of Independence that does not actually exist. • The gaffe sparked backlash on social media, with critics arguing that it is historically significant for a president to misrepresent the document during the nation's 250th anniversary period.

• A boutique City-based recruitment consultancy specializing in executive talent for FTSE firms has entered insolvency. • The firm collapsed after investing heavily in the development and launch of a proprietary AI platform. • This failure highlights the financial risks associated with traditional professional services attempting rapid digital transformation through AI.

• Vikas Khemani of Carnelian Asset Management projects that corporate India's earnings growth will remain robust at 14–16% for the year, supported by strong GDP growth and tax revenues. • Khemani views the current correction in the IT sector as a long-term buying opportunity, arguing that AI will act as a growth catalyst rather than a disruptor. • He dismissed concerns regarding a liquidity crisis, stating that slower deposit growth is being managed by the Reserve Bank of India to ensure system stability.

• The Bank for International Settlements (BIS) has warned that "exuberance" surrounding artificial intelligence could lead to a significant investment bust if the technology fails to deliver expected returns. • The BIS cautions that weak productivity gains may trigger a sharp pullback in funding for tech companies, potentially destabilizing the broader global economy. • This warning highlights the risk of an AI bubble, where massive capital expenditures in infrastructure and software may not be offset by sufficient revenue growth.

• The Bank for International Settlements (BIS) has warned that a potential artificial intelligence (AI) bust is one of the most alarming threats to current global prosperity. • Along with an AI market correction, the BIS identified persistent inflation and fiscal stress as critical risks that could destabilize the global economy. • This warning highlights the danger of "ripple effects," where a collapse in AI growth could trigger broader credit instabilities and financial volatility.

• The Bank for International Settlements (BIS) has warned that "exuberance" surrounding artificial intelligence could lead to a prolonged investment bust if the technology fails to deliver expected returns. • The BIS cautions that weak productivity gains from AI may trigger a sharp pullback in funding for tech companies, potentially destabilizing the broader global economy. • This warning highlights the risk of a market bubble where speculative investment far exceeds the actual economic value generated by AI tools.

• The Bank for International Settlements (BIS) has warned that the current artificial intelligence boom could mirror historical economic bubbles, such as the canal, railway, and dotcom busts. • The bank predicts that an overestimation of AI's immediate utility could lead to significant economic damage if investment exceeds actual productivity gains. • While proponents argue that AI will create new, currently unimagined occupations to offset job losses, the BIS suggests a risk of systemic financial instability.

• The Bank for International Settlements (BIS) has identified a potential AI bust, persistent inflation, and fiscal stress as the primary threats to global economic prosperity. • BIS chief Pablo Hernandez de Cos warned that memories of the 2022 cost-of-living shock increase the likelihood of "second-round effects" on inflation. • The organization highlighted risks stemming from high sovereign debt and the volatility of "fleet-footed" investors who may quickly withdraw funding from government bonds.

• The FDA approved the first therapy for primary immunoglobulin A nephropathy in December 2021, marking a significant milestone for patients with this rare kidney disease. • Following this initial approval, several additional novel drugs have received accelerated FDA approval, leading to a rapid expansion of available treatment options. • This "explosion" in therapies is critical as it provides clinicians and patients with a more robust pipeline of medical interventions to manage the disease.

• Donald Trump is currently benefiting from the Senate filibuster, which prevents the SAVE America Act from reaching a final vote. • While Trump often criticizes the rule, the filibuster spares him from a public legislative defeat that could expose divisions within the Republican party. • A push to change Senate rules to bypass the filibuster would force GOP lawmakers into difficult loyalty tests ahead of critical midterm elections.

• All 32 of the largest U.S. banks passed the Federal Reserve's annual "stress test" announced on Wednesday. • The simulation evaluated whether these financial institutions could withstand a severe economic contraction while continuing to lend to households and businesses. • These results indicate that the nation's banking system remains robust and healthy despite potential economic volatility.

• Tate Modern is hosting a major summer exhibition focusing on Frida Kahlo's evolution into a global icon, though the show features a limited number of her original works. • The exhibition explores how Kahlo intentionally initiated her own iconic status, a perspective supported by leading feminist art historians. • The scarcity of works reflects broader tensions, such as the April protests in Mexico City over the long-term loan of key pieces, including the 1933 "Self-Portrait with Necklace," to Spain.

• Financial strategists maintain a bullish outlook on Asian stock markets, specifically focusing on South Korea and Taiwan as primary growth drivers. • Goldman Sachs Asia-Pacific strategist Timothy Moe has set a target of 12,000 for the KOSPI Composite index, projecting a potential 32% gain from Thursday's close. • This optimistic forecast is driven by the expectation that corporate earnings in the region will continue to rise significantly.

• U.S. employers added 172,000 jobs in May, while the unemployment rate remained steady at 4.3 percent. • The data, which is seasonally adjusted, suggests a robust labor market that may complicate efforts to lower interest rates. • Donald Trump has pushed for steep rate cuts and recently celebrated the appointment of Kevin M. Warsh as the central bank's chair to achieve this goal.

The invertebrates were likely destined for the pet trade, including as reptile foodMore than 100,000 live, exotic cockroaches have been seized from a commercial breeder in New South Wales in a record-breaking bust linked to the pet trade.Biosecurity officials seized the animals, which have a commercial value of up to $200,000, from a commercial breeder in Bathurst in the state’s central west this week. Continue reading...

Members of Jalisco New Generation cartel used fake retail store in San Diego as a front for trafficking drugsFederal prosecutors have charged four suspects with trafficking more than one ton of cocaine for the Jalisco New Generation cartel using a fake retail store in San Diego as a front for a sophisticated tunnel that ran across the border to Tijuana, Mexico.The defendants include two Mexican nationals and two Americans charged with conspiring to traffic drugs across the US-Mexico border. The suspects, who range in age from 18 to 32, all face sentences that could land them in prison for life. One of them, Gregorio Epifanio Hernandez Lopez, also faces the charge of “constructing, financing or using unauthorized tunnels”. Continue reading...

• Italy's financial police dismantled a sophisticated streaming piracy network on Friday that caused an estimated €300 million ($348 million) in damages. • The illegal operation targeted major content providers and rights holders, including Netflix, Disney+, Spotify, Sky, and DAZN. • This bust highlights the scale of digital piracy and the significant financial losses incurred by global entertainment and sports streaming platforms.

• Italy's financial police dismantled a sophisticated illegal streaming piracy network on Friday. • The operation caused approximately €300 million ($348 million) in damages to major rights holders, including Sky, DAZN, Netflix, Disney+, and Spotify. • The network operated by selling illegal subscriptions to users for prices ranging between €40 and €130 per year.

• Several European stocks have experienced a blockbuster rally, with some gaining over 100% this year driven by the global AI investment frenzy. • Companies like Nokia are positioned to support AI infrastructure, though they face a more restrictive regulatory environment than their U.S. counterparts. • The expansion of AI in Europe is currently hindered by power grid constraints, data center moratoriums, and strict compliance requirements under the EU AI Act.

• The US economy showed strength with private sector payrolls rising 123,000 in the latest month after 190,000 previously, beating expectations by double, while unemployment holds at 4.3% near full employment. • Atlanta Fed GDPNow forecasts 3.7% annual growth for Q2, with weekly unemployment claims at rock bottom and no recession in sight despite left-wing critiques. • Blue-collar nonsupervisory workers saw 3.7% hourly earnings growth and 1% hours increase, yielding 4.7% wage-income proxy rise outperforming white-collar gains.

• Delta Air Lines reported first-quarter net income of $1.8 billion, up 22% year-over-year, benefiting from strong leisure and business travel demand with average fares rising 8% despite lower capacity growth across the industry. • CEO Ed Bastian stated that forward bookings through summer 2026 indicate "resilient demand," with premium cabin bookings up 15%, offsetting concerns about potential economic slowdown and suggesting corporate travel spending remains solid. • The strong results bolstered airline sector sentiment, lifting Southwest Airlines and United Airlines stocks by 2.4% and 1.9% respectively on optimism about sustained pricing power and margin expansion through peak summer travel season.

Labour MPs are reportedly urging colleagues to demand Burnham’s return in order to position him as Starmer’s eventual successorIf Keir Starmer is looking for a saviour to keep him in No 10 after the May elections and the scandal of the Mandelson saga, there is an unlikely figure in the north-west who might help him – temporarily.It has been the week where the prime minister seemed at his most isolated. But Labour MPs told the Guardian they were urging colleagues not to depose Starmer next month, and were instead preparing to demand that Andy Burnham return to parliament in order to succeed him before the next general election. Continue reading...

HMRC owed more than £640,00 by company that advised clients such as TikTok, GSK and PalantirPeter Mandelson’s former consultancy business, Global Counsel, went bust owing £4.6m – including more than £600,000 to the taxman – a report by the group’s administrators reveals.The company, which provided advice to high-profile clients including Chinese-owned TikTok, US tech business Palantir and UK pharmaceutical firm GSK, collapsed into administration in February, after it lost a series of accounts over the peer’s relationship with the convicted child sex offender Jeffrey Epstein. Continue reading...

Finance chiefs to join exercise in Washington designed to assess how they would handle collapse of significant bankThe bosses of the central banks and treasuries of the UK, US and EU are to take part in a war game in Washington on Saturday to test how they would handle the collapse of a globally significant bank.Amid growing unease over the risks to global financial stability, the most senior officials from the US Federal Reserve, the European Central Bank and the Bank of England – including its governor, Andrew Bailey – are expected to take part. Continue reading...

War with Iran has brought 15 American sites across the UK countryside firmly into the spotlightThey are dotted across the UK countryside, often obscured from public view behind highly secured perimeter fences. Technically, they are on British soil, and misleadingly most have “Royal Air Force” in their name.But in many respects, these military outposts are under the control of the US president and commander-in-chief. Continue reading...

• The Los Angeles Lakers acquired All-Star guard Devin Booker from the Phoenix Suns in a multi-team trade, pairing him with LeBron James for the 2026-27 season. • The Lakers sent four future first-round picks and three young players to complete the deal worth approximately $180 million in payroll implications. • NBA insiders describe the trade as a championship-caliber move designed to compete immediately in the Western Conference.