Edge

• Chinese hedge funds have issued warnings that the current artificial intelligence "super bubble" could potentially burst by 2026. • The alert highlights growing concerns over whether AI valuations are sustainable, creating new risks for global financial markets and tech investors in South Africa. • This warning matters as it suggests a potential correction in the massive capital inflows and soaring stock prices driven by AI optimism.

The prime minister in waiting is seeking an interim base in the city centre before Ancoats site is completed in 2028A civil service base that is under construction in Manchester has been earmarked for Andy Burnham’s No 10 North, according to reports.The northern centre of government will be in Ancoats, on the outskirts of Manchester city centre, but the site is not due to be completed before 2028, according to the Manchester Evening News. Continue reading...

• South Korea is launching massive AI megaprojects designed to maintain a competitive technological edge over China and meet surging global demand. • The initiative focuses on scaling infrastructure and innovation to secure the nation's position in the global semiconductor and artificial intelligence markets. • Implementation faces significant hurdles, including a shortage of skilled workers willing to relocate away from Seoul and the challenge of dispersed supply chains.

• The Supreme Court issued a ruling on Monday that strikes down most existing limits on presidential control over independent federal regulatory agencies. • This decision significantly expands presidential power by dismantling protections previously established by Congress and the courts to ensure agency independence. • Legal experts, including Harvard professor Daniel Tarullo, describe the move as an aggressive application of the "unitary executive theory," granting the president unprecedented authority over the economy and American life.

• Brazil defeated Japan 2-1 in a FIFA World Cup 2026 Round of 32 match, with Gabriel Martinelli scoring the decisive goal to secure the victory. • The match highlighted Japan's growth as a competitive force, as the "Samurai Blue" pushed Brazil to the limit, signaling they are no longer satisfied with merely reaching the knockout stages. • This result allows Brazil to advance in the tournament while ending Japan's run in the competition.

• Asian equities traded cautiously on Monday, with Japan's Nikkei slipping 1% and South Korea's Kospi falling nearly 2%, dragging the MSCI Asia-Pacific index down 0.4%. • Market instability is being driven by lingering uncertainty regarding a Middle East ceasefire and investor fears that the US Federal Reserve may implement further interest rate hikes. • The situation is further complicated by the US dollar hovering near a one-year high, though US and European futures showed slight gains of 0.4% and 0.2% respectively.

• Andy Burnham has announced his intention to succeed Keir Starmer as prime minister, marking his first major public address since confirming his bid for the UK premiership. • In his upcoming speech, Burnham will pledge the most significant devolution of power in modern English history to shift authority from central government to local regions. • This move signals a strategic shift in Labour leadership, focusing on regional empowerment to challenge the current centralized governance model.