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• The Bank for International Settlements (BIS) has warned that the massive surge of investment in artificial intelligence could trigger a financial bust after driving global stock markets to record highs. • The BIS notes that the current AI boom mirrors previous technological breakthroughs where capital investment far exceeded commercial returns, eventually leading to economy-wide recessions. • This risk is becoming more apparent as hidden costs associated with AI development begin to surface within company accounts and consumer pricing.

Red warnings issued as record-breaking heatwave pushes east, with authorities urging people to stay indoorsParts of central, eastern and southern Europe sweltered on Monday as the “heat dome” behind last week’s record-breaking temperatures shifted east, bringing dangerous conditions to a new swathe of the continent.Budapest is forecast to exceed 40C on Tuesday, according to models from the European Centre for Medium-Range Weather Forecasts. Belgrade and Bucharest reached 38C and 37C respectively on Monday as the heatwave, which has been linked to hundreds of deaths in western Europe, moved east. Continue reading...

Germany, Czechia, Poland and Hungary reached record temperatures of more than 40C on Sunday Good morning, or dzień dobry, from Warsaw, Poland as the heatwave that affected much of the continent last week continues to impact central and eastern Europe.It’s 9am local time and already 32C. I have seen two people cycling home with large fans, trying to get back before the heat hits the fan again. None of this is normal. Continue reading...

• A severe heat wave shifted from Western Europe to central and eastern regions on Saturday, causing temperatures to soar across the continent. • Record-breaking highs were specifically reported in Switzerland, the Czech Republic, and Denmark. • This weather pattern represents a significant escalation in extreme heat events affecting multiple European nations simultaneously.

• The European Central Bank (ECB) has warned that the EU's shift toward interventionist industrial policies and increased state aid is creating significant economic trade-offs. • According to a pre-release of its Economic Bulletin, state aid expenditure has risen sharply due to global economic shocks and a resurgence of government intervention. • The ECB highlights a growing disparity in subsidy distribution, as member states with higher fiscal capacity can provide more support than smaller or poorer nations.

• The Golden Globes is launching the "Golden Globes Silk Road Tribute Gala," a new event dedicated to honoring excellence in film and television from Central Asia and the Caucasus. • The gala is scheduled to take place in Uzbekistan on October 23 and 24. • According to president Helen Hoehne, the initiative aims to reinforce the organization's commitment to recognizing outstanding achievements across diverse global cultural landscapes.

Technology to be used in six more areas next year as critics say tens of thousands of people will be forced into ‘digital police lineup’The Metropolitan police is to expand its use of live facial recognition (LFR) technology, first into London’s West End by Christmas and then into a further six areas next year.The new cameras will be fixed, and could be attached to street furniture such as lamp-posts. Critics said the new plans mean tens of thousands of people will be forced into a “digital police lineup”. Continue reading...

New York police department say teenager thrown to the ground when horse bolted away from its driverA teenager thrown to the ground Wednesday when a Central Park carriage horse bolted away from its driver has died, according to police.The 18-year-old was riding in the horse-drawn carriage with three other passengers when the accident happened just before 3pm, according to the New York police department. At least two passengers were sent flying out of the careening cab. Continue reading...

• The US Federal Reserve has abandoned its previous bias toward cutting interest rates as inflation has surged to nearly double the central bank's target. • This policy shift coincides with the beginning of the Kevin Warsh era at the central bank and follows escalating geopolitical tensions stemming from Donald Trump’s conflict with Iran. • The decision matters as it signals a pivot toward tighter monetary policy to combat rising prices, potentially slowing economic growth to stabilize the currency.

Canadian officials find structural defects in material used for hull and say firm failed to fully test ‘novel’ designCanadian safety officials have issued a damning report on the catastrophic final voyage of the Titan submersible, finding that the US company behind the expedition was overcome by “groupthink” and “confirmation bias” and failed to understand the profound risks confronting their largely untested craft.The 6.7 metre (22ft) carbon fibre submersible dipped below the surface of the Atlantic Ocean in June 2023 en route to the wreckage of the Titanic ocean liner. But nearly two hours after it departed with five passengers, communications went dark. The disappearance prompted a frantic international search, with Canada and the US marshalling all available resources. Continue reading...

• The Karlovy Vary Film Festival has announced the selected Central European projects for its Central Stage showcase and the Book-to-Screen program. • Featured projects include Tomáš Hodan’s “The Stones Are Rolling to Prague,” focusing on the 1990 Rolling Stones concert, and Tomáš Pavlíček’s comedy “A Few Branches Off,” which explores Czech cottage culture. • The selection highlights regional talent and cinematic adaptations, including work from filmmakers previously recognized at the Berlinale, Cannes, and Tallinn Black Nights.

Federal Reserve to make first decision under Kevin Warsh as Middle East hopes ease inflation pressuresBusiness live – latest updatesCentral banks in the US and UK are expected to leave interest rates on hold this week as the peace deal in the Middle East is expected to ease inflationary pressures.The US Federal Reserve is expected to hold its benchmark interest rate at a range of 3.5% to 3.75% on Thursday, in what will be the first policy decision under new Fed chair – and Donald Trump’s pick – Kevin Warsh. Continue reading...

One man died in Iowa after a tree fell on him as nearly 700 severe weather events were recorded over three daysSign up for the Breaking News US newsletter emailAn Illinois man whose home was destroyed by a tornado on Thursday was pulled from the rubble by a police officer and a photojournalist, who captured the terrifying storm and subsequent rescue in dramatic video footage.Scott Lasker, who describes himself as a storm chaser, recorded the tornado ripping through the town of Streator and was filming the damage it inflicted when he came across the man trapped in the debris of his house. Continue reading...

• The FTSE 100 is trading higher as investors monitor critical economic indicators, including US Consumer Price Index (CPI) and labor-market data. • Market attention is shifting toward the Bank of England's upcoming policy meeting next week to determine potential interest rate movements. • Investors are weighing the impact of persistent inflation and slowing economic momentum alongside Oracle's AI spending plans and geopolitical risks in the Middle East.

Modelling from US CDC shows Ebola spread could be on ‘dangerous trajectory’, but experts warn outbreaks can be very hard to predictCentral Africa’s Ebola outbreak could spread to be similar in scale to the worst outbreak in history, west Africa’s 2014-2016 outbreak that killed more than 11,000 people, according to a new analysis by US health officials.The US Centers for Disease Control and Prevention (CDC) on Friday published a range of scenarios generated by computer models, from 10,000 cases to more than 20,000. In the west Africa outbreak, more than 28,000 cases were reported. Continue reading...

• World stocks and the MSCI Asia ex-Japan index reached record highs as AI-driven investment expanded from tech giants into small-cap sectors. • Alphabet's US$80 billion capital raise underscores the massive spending requirements for AI infrastructure despite a backdrop of sticky global inflation. • Market momentum was bolstered by a significant 4.0% single-session surge in South Korea on Monday, with current rotation shifting toward Hong Kong and China's "A" shares.

• ECB Vice President Luis de Guindos warned on Wednesday that the risk of a market correction is "elevated" as global stock indices continue to hit record highs. • De Guindos cited a volatile combination of outsized market valuations, fiscal challenges, and vulnerabilities within private credit as primary drivers of this instability. • Geopolitical turmoil, specifically mentioning the war in Iran, is highlighted as a significant external risk that could trigger a downturn.

• Nigel Farage’s populist, anti-immigrant party, Reform U.K., has moved from the political fringe to become a central force in British politics. • Despite this rise, the party struggles to gain traction in major metropolitan hubs like London and is criticized for prioritizing sound bites over substantive policy. • Farage is currently facing allegations of breaking parliamentary rules by failing to declare a gift of approximately $6.7 million from cryptocurrency billionaire Christopher Harborne.

• Asian stock markets experienced a climb and oil prices maintained their gains as investors monitored global geopolitical and economic developments. • Market volatility is being driven by fresh U.S. attacks on Iran and the anticipation of upcoming diplomatic talks between the two nations. • Investors are also closely watching for potential policy shifts and strategic moves from major central banks that could impact global liquidity.

• Japan's Prime Minister Sanae Takaichi is pushing legislation to establish the country's first centralized intelligence agency since World War II, transforming the Cabinet Intelligence and Research Office (CIRO) into a hub for analysts, technologists, and operatives amid rising espionage and cyberthreats from China and Russia. • The FBI has endorsed the plan, with officials signaling US support for Tokyo on cybersecurity, counter-intelligence, espionage, and counterterrorism, addressing Japan's fragmented intelligence setup. • The agency could become operational as early as July 2026 pending House of Councillors approval, starting with approximately 700 staff expected to grow rapidly by integrating government and private sector talent.

Month was one of driest on record with rainfall 23% less than average, according to Met Office figuresOne of the driest Aprils on record for central and southern England has left river levels below normal, raising fears of drought in some areas over the summer.The latest UK hydrological survey – which tracks river and groundwater levels – suggests central and southern England and eastern Scotland will experience notably low river flows over the next three months, raising concerns about water shortages if dry weather persists. Continue reading...

• JPMorgan analysis shows markets repricing oil-driven inflation risks, with global equities adjusting to potential rate hike scenarios amid recent oil price surges. • Central banks are providing clearer signals on monetary policy, suggesting rate hikes may not materialize as aggressively as feared despite elevated energy costs. • The divergence highlights inflation fears running ahead of underlying economic reality, potentially creating buying opportunities if data moderates.

• Kazakhstan launched a comprehensive national AI strategy aimed at building a competitive technology ecosystem and digital infrastructure for regional leadership. • The plan focuses on Central Asia dominance through AI research hubs, talent development, and partnerships with global tech firms. • This initiative matters as it positions Kazakhstan as an emerging AI powerhouse bridging Europe and Asia amid global tech rivalries.

• The Trinamool Congress (TMC) moved the Supreme Court on Friday for an urgent hearing challenging the Election Commission of India's decision to appoint only central government employees as counting supervisors for West Bengal Assembly elections. • Chief Justice of India Surya Kant directed an urgent hearing for Saturday, with the plea to be heard by a bench of Justices PS Narasimha and Joymalya Bagchi, indicating high-priority consideration of the electoral dispute. • The challenge reflects ongoing political tensions in West Bengal regarding electoral fairness and governance, with TMC opposing what it views as potential bias in vote counting procedures.

Strongest tornado hits Mineral Wells, Texas, where disaster was declared. Elsewhere, extreme rain inundates ChinaSpring is the season for severe thunderstorms across the central US, and the start of this week was a particularly active period for the region. A favourable weather pattern fuelled intense thunderstorms on Monday through Wednesday, bringing strong winds, very large hail and strong tornadoes.Eight tornadoes were reported on Monday, including an EF2 tornado that ripped through the town of Sycamore, Kansas. On Tuesday, a more widespread event tore across the mid-west, most notably as a severe hailstorm moved through Springfield, Missouri. Continue reading...

Police say 29-year-old arrested on suspicion of attempted murder and drink driving after collision in WestminsterA woman has been arrested on suspicion of attempted murder after a car hit pedestrians in central London in the early hours of Sunday morning.A woman in her 30s is in hospital in a critical condition and a man in his 50s suffered life-changing injuries after they were hit by a car in Argyll Street, Westminster, at around 4.30am on Sunday, the Metropolitan Police said. 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...

Geoscience Australia says aftershocks likely but much lighter and in a smaller areaFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastPart of Australia’s east coast has been shaken by an earthquake that could be felt hundred of kilometres away.A 4.5-magnitude quake hit at 8.19pm on Tuesday at a depth of 5km about 30km south-west of Orange in central west NSW, near the Cadia goldmine. Continue reading...