AI Risk Is Everywhere and It’s Making Billion-Dollar Funds Nervous
Pension and sovereign wealth funds with billions of dollars to invest are discovering that the diversification they once depended on may be an illusion.
Pension and sovereign wealth funds with billions of dollars to invest are discovering that the diversification they once depended on may be an illusion.
Money managers are betting on solar engineering and wildfire-mitigation technology as they consider where to invest in climate amid the focus on AI and high interest rates.
Ahead of Climate Week in New York City, US solar engineering companies and wildfire-mitigation technologies are emerging as favored climate-related investments while the AI trade and high interest rates dominate markets.
Major U.S. stock indexes opened higher on Monday, lifted by gains in AI shares as Treasury yields eased. Crude prices dropped more than 2% to an 11-day low amid signs that Middle East negotiations were making progress.
Volkswagen’s problems have worsened after its latest profit warning was followed by its exit from a blue-chip index. Deutsche Bank analysts said the reduction in the operating profit forecast initially appears severe, but cash generation remains intact.

Chinese and US teams held candid, in-depth and constructive exchanges on economic and trade issues, along with talks on AI-related matters. The article reviews understandings reached in consultations in Geneva, London, Stockholm, Madrid and Kuala Lumpur, including tariff reductions, a consultation mechanism, a TikTok cooperation framework and temporary export-control measures.

Following the Bessent–He Lifeng talks in New York, a US proposal for a new AI-safety notification mechanism is to be considered by Donald Trump and Xi Jinping at this week’s summit.

Chinese and U.S. delegations met in New York on Sunday for economic and trade consultations. They exchanged views on major issues of shared concern and on carrying out the consensus reached in earlier talks.
China has bought more than half of the 25 million tons of US soybeans it pledged to purchase this year. But progress on a separate promise to spend billions more on American crops has largely stalled, putting the trade truce under pressure ahead of the summit.
China’s leader Xi Jinping is due in Washington this week with at least one straightforward way to win favor with the Trump administration: pledging to revive an annual $6 billion trade in US liquefied natural gas.
Volkswagen has been dropped from the Euro Stoxx 50, the eurozone benchmark for its largest listed companies. The change took effect at Monday’s market open, days after Europe’s biggest automaker warned that one-off charges would consume most of its profit this year.
Volkswagen has been removed from the Euro Stoxx 50 after the German company’s shares fell to a 16-year low, dealing another setback to the crisis-hit carmaker.
Japanese group SoftBank is seeking to raise more than $11bn through dollar- and euro-denominated bonds as it invests in the artificial intelligence boom and backs its bet on OpenAI.
As artificial intelligence enters a more mature phase, Asian investors are seeking clearer proof that the technology can generate revenue and earnings rather than merely offering exposure. Chris Oberoi, Bank of America’s head of Asia-Pacific research, said the key question is whether AI improves productivity and can be monetised, adding that the answer is firmly yes.

OECD Secretary-General Mathias Cormann says AI presents a major opportunity to raise productivity, wages and living standards. He argues that Europe must move quickly to support adoption if it is to capture those gains and the potential fiscal dividend.
Australian data center operator Firmus plans to launch an initial public offering for institutional investors on October 6, seeking to raise A$7 billion, or about $4.99 billion, according to a term sheet.
China collected 216 billion yuan in stock-trading stamp duty during the first eight months of the year, an 82 per cent year-on-year increase, according to Ministry of Finance data. Improved sentiment linked to the artificial intelligence boom helped lift average daily trading values on mainland exchanges by 72 per cent.

Australia’s seventh intergenerational report projects that deaths will outnumber births by the 2060s as fertility falls and the population ages. It forecasts slower economic growth over the next 40 years and says AI adoption will be pivotal to restoring productivity, while the government must regulate its risks without stifling innovation.

Asian share markets edged higher on Monday, helped by chipmakers as insatiable AI demand for data continued to support the sector. Oil prices eased as hopes that Saudi Arabia could increase supplies outweighed news of a Houthi attack on Riyadh.
The China-ASEAN Expo is taking place in Nanning, Guangxi, a key gateway between China and Southeast Asia. The opening of the 134-kilometer Pinglu Canal to navigation on September 16 has created a more direct route to the sea, while representatives from Brunei, Malaysia and Singapore discussed how expanding physical and digital links could affect agriculture, business and the next generation.

A form of self-insurance traditionally linked to mining, oil and other environmentally risky industries is quietly reshaping physical-risk coverage as mega AI data centers proliferate.
The eighth Malaysia-China Trade Expo opened in Kuala Lumpur with about 100 Chinese companies and nearly 50 Malaysian firms. The three-day event features manufacturing, emerging industries, a pet-industry zone, cross-border e-commerce matchmaking and a forum on AI-driven growth in Southeast Asian e-commerce.
Wall Street has found a new way to harness the credit strength of technology giants to secure cheaper funding for the AI build-out, while keeping $300 billion of exposure off balance sheets.
US Treasury Secretary Scott Bessent will meet Vice Premier He Lifeng on Sunday at JPMorgan Chase headquarters in New York, a person familiar with the planning said. The talks are expected to cover AI security, trade and other economic matters.
Anthropic has not disclosed an IPO price, final valuation or share count, yet open interest in crypto futures linked to the Claude developer has climbed to about $79.27 million. The contract is not Anthropic stock; it is a cash-settled derivative reflecting traders’ bets on the privately held company’s eventual valuation.

Artificial intelligence could raise European productivity by roughly 1% over five years, but an IMF paper warns it may also widen inequality, put more pressure on power networks and deepen reliance on foreign technology unless governments strengthen economic integration.
A central bank adviser said artificial intelligence could deepen and prolong China’s imbalance of strong supply and weak demand, renewing calls for policies to boost consumption and repair balance sheets across the economy.
The end of human existence could be bad for financial markets, raising the question of how investors should position themselves for a possible robot apocalypse.
About $18 billion in loans linked to an Oracle-leased data center in New Mexico are under pressure, the Financial Times reported. Syndicate banks including Santander and Jefferies quoted the loans at 89 to 91 cents on the dollar.
Brookfield CEO Bruce Flatt said the artificial-intelligence race is already slowing because developers cannot build enough infrastructure to keep up with the demands of AI companies.
British cloud provider Nscale said on Friday that its revenue jumped 1,252% in the first half of 2026 as it seeks to capitalize on investor enthusiasm for AI stocks through a US listing. The company is backed by chip giant Nvidia.
British data centre start-up Nscale has filed to list in the US at a targeted valuation of $35bn. The company has also won a major contract to supply computing power to Anthropic.

Nscale is the latest artificial intelligence neocloud provider to turn to the public markets.
Singapore payments company dtcpay has completed a $25 million Series A, with Japan’s SBI Group joining as a strategic investor. The funding will support a revamped enterprise portal, new consumer features and merchant-network expansion as dtcpay seeks to broaden stablecoin use in everyday commerce. Individual investment amounts and the company’s valuation were not disclosed.

A person familiar with Scott Bessent’s plans said the US Treasury secretary intends to meet China’s Vice Premier He Lifeng in New York this weekend. The planned discussion would cover artificial intelligence, trade, rare earths and economic matters.
The U.S. Treasury’s Office of Foreign Assets Control sanctioned Iranian exchange BitBank, its software developer Pishtaz Simorgh Electronic Trade Company and three people linked to Babak Zanjani’s corporate network. Treasury alleges Zanjani used BitBank to move hundreds of millions of dollars in Bitcoin to the IRGC, while another sanctioned entity used it to transfer receipts to Iran’s government.

The 140th Canton Fair will take place in Guangzhou in three phases from October 15 to November 4, with 32,000 exhibiting companies. New products will make up 23.2% of displays and green products 26%, both record shares. The fair will also introduce smart scenarios, AI applications, booth-level navigation and expanded trade services.

Trump’s pedal-to-the-metal approach suggests he may be focused on a larger question: what would happen to the US economy if the artificial intelligence fever broke during his presidency?
Nearly one in five Asia-Pacific companies surveyed by CBRE believe broader AI adoption will reduce their real estate needs. Some 56 per cent are neutral, saying AI has no effect on office demand or that it is too soon to tell, while 25 per cent expect AI adoption will require…

Some analysts say renewed scrutiny of artificial intelligence could pose a risk to the stock market.

SB Energy’s planned initial public offering will test investor appetite for Masayoshi Son’s bet on artificial intelligence, with OpenAI’s delayed listing raising the stakes for SoftBank’s $50bn data-centre IPO.
Apollo Global Management is in talks with SoftBank Group about increasing a loan to $9 billion from $5.4 billion, helping the Japanese company finance its investment in artificial-intelligence giant OpenAI.
The Canadian government says nearly $500 billion in new investment will enter the country following the first Canada Investment Summit in Toronto. Investors from nearly 30 countries, overseeing more than $100 trillion in assets, attended the two-day event, where about 167 projects were discussed and major investments went to energy, critical minerals and AI. The summit also drew criticism over the climate crisis.

A discussion focuses on how business schools and MBA students are responding to rapid advances in AI and policies from the Trump administration.
The Commodity Futures Trading Commission has adopted a developer-friendly no-action stance on crypto, giving software developers who build crypto trading tools some breathing room.

A wave of mega-IPOs sparked by the AI boom is pushing venture capital’s feast-or-famine dynamic to an extreme.
The enormous wealth generated by Anthropic and OpenAI is overshadowing layoffs and an uncertain job market in San Francisco, leaving jobless tech workers outside the city’s AI boom.
When Miles Schwartz co-founded Montreal payment company Zūm Rails in 2019, he approached nearly every Canadian venture capitalist for funding, but they all rejected him. Canada is trying to keep technology startups from relocating to the United States.
Over the past two decades, BRICS has offered the Global South alternative financing, support for industrial and technological innovation, and a stronger voice in global governance. Ethiopian officials and analysts say the platform can attract investment, expand export markets and fund infrastructure, while China’s five initiatives, including AI cooperation, could support industrial transformation and locally tailored development.

China is speeding up manufacturing transformation through smart technologies, greener production and closer industrial integration. By the end of 2025, numerical control covered 68.6% of key processes in major industries. China had also built more than 35,000 basic-level, 8,200 advanced-level and 500 excellent-level intelligent factories, while expanding industrial robots, electric vehicles, lithium batteries, photovoltaics and industrial internet platforms.

A CGTN survey conducted as the 23rd China-ASEAN Expo opens found that 90.9% of respondents view the event’s continued hosting as evidence of China’s commitment to high-standard opening up. Around 3,300 companies are attending, while Timor-Leste is participating for the first time as a full ASEAN member and co-host. Some 84.8% see faster AI adoption as a potential new driver of China-ASEAN trade, economic cooperation and industrial upgrading.

The US central bank raised its benchmark rate by 0.25 percentage points, with new Fed Chair Kevin Warsh defying President Donald Trump's call for lower rates. Consumer banks and bond markets react, while OpenAI discloses new AI misconduct incidents amid growing fears the technology could escape human control.

Traders are valuing Anthropic at more than $2 trillion in pre-IPO markets, over twice its valuation in the company’s last private funding round. Investors are awaiting the public release of its S-1 filing, which could pave the way for the largest flotation in history.
The 23rd China-ASEAN Expo opened Thursday in Nanning, capital of Guangxi Zhuang Autonomous Region. More than 3,400 companies from over 70 countries and regions are attending. Timor-Leste is a co-organizer for the first time, bringing all 11 ASEAN members together in Nanning after the bloc’s expansion. The China-ASEAN Business and Investment Summit also opened.

The 23rd China-ASEAN Expo opened in Nanning with more than 3,400 companies from over 70 countries and regions. The event highlights the upgraded CAFTA 3.0 framework, artificial intelligence and the newly opened Pinglu Canal as avenues for trade, supply-chain and regional cooperation.
Amazon says it will raise the minimum starting hourly wage for its full-time core operations employees in the United States to $20 ahead of the holiday shopping season.
Holtec founder Kris Singh says the company withdrew its IPO after negative market sentiment toward data centres damaged the flotation.
Bitcoin miners have signed more than $100 billion in AI contracts while producing only about $1.1 billion in annualized revenue. CoinShares says over 4 gigawatts of AI and HPC capacity is contracted, but roughly 550 megawatts is billing. Investors are rewarding the pivot because grid-connected power has become scarce, despite costly retrofits and the loss of some mining operations.

Target has announced that Target Circle Week will return this fall on Oct. 6 and 7, the same dates as Amazon’s October Prime Day this year.

Apollo cautions that rising credit default swap costs for companies building data centers signal a warning, rather than reflecting increased bank hedging of their bets.

Inflation, war, artificial intelligence and national debt are combining to push yields higher in the bond market’s “toxic stew.”
Investors have approached OpenAI about a new funding round as the company prepares for what is widely expected to be a blockbuster IPO next year, following its confidential prospectus filing in June.

China is bracing for a possible major sell-off on Thursday as a lock-up period covering 14 million MetaX Integrated Circuits shares ends. Analysts expect “significant selling pressure”, after the release of Moore Threads shares last week triggered a sales avalanche that erased nearly 49 billion yuan.

The US midterm elections were already emerging as a major risk for AI-related stocks amid backlash against data centers. The stakes have grown as more lawmakers from both parties warn that AI safety regulations are needed.
China-ASEAN economic ties are deepening, with Guangxi's imports from ASEAN reaching 62.84 billion yuan in the first seven months of 2026, up 19 percent year on year. Cooperation is also expanding across investment, infrastructure, people-to-people exchanges and supply chains. The upcoming China-ASEAN Expo will spotlight AI, innovation and ASEAN market needs.

Rising Treasury yields, geopolitical risks and new concerns about AI safety are pressuring markets. Even so, many investors remain bullish on AI spending and corporate earnings.

The artificial intelligence boom is creating a new group of billionaires while enriching companies that sell the tools and infrastructure supporting the industry.
AI debt and Treasuries are, at best, imperfect substitutes.
Eurozone households have invested hundreds of billions of euros in US technology. Analysts say Europe has the money and promising companies, but too few of them are accessible investments for ordinary savers.
About one in six workers in Britain pays for an AI tool to help with their job, with their combined personal spending reaching nearly £1 billion ($1.4 billion) a year, according to Deloitte research published Wednesday.
Investors are left to consider how markets should interpret calls from AI labs for a slowdown.
CoinShares says a recovery in bitcoin’s price is unlikely to bring miners focused on artificial intelligence back to bitcoin mining. Publicly listed BTC miners produced bitcoin at an average pre-tax cash cost of about $75,500 in the second quarter.

Santoli says the AI narrative has shifted toward the technology’s risks. With AI unpopular with the public and forecasts of order backlogs extending beyond a few quarters now viewed skeptically, investors face a changed outlook for the sector.

Singapore-headquartered wealth manager Wrise Prestige is increasing its investment in artificial intelligence as it expands across mainland China. The firm plans to open an AI laboratory in Guangzhou next month after making a HK$30 million internal investment in AI-related development.

The morning roundup examines what slowing the advance of artificial intelligence could mean for the U.S. economy and reports that the Supreme Court blocked Donald Trump from restricting mail-in voting.

Anthropic’s Dario Amodei warns that AI could wipe out humanity, while Nvidia’s Jensen Huang dismisses the idea as nonsense. The report profiles the main figures shaping the world’s fiercest technology debate.
ANZ Group Holdings CEO Nuno Matos warned that the risks associated with artificial intelligence are unpredictable and declined to rule out large-scale job cuts as the bank adopts the rapidly evolving technology.
Prime Big Deal Days will be Amazon’s second Prime Day-level sale of 2026 for loyalty members. The event’s dates, key details and what shoppers can expect are outlined.

Michael Dell’s family office and a company dubbed “the holding company of the next century” have outbid private equity giants to take an insurance broker private.
Donald Trump’s war in Iran and tariffs are driving up input prices, while the AI boom is squeezing the availability of some components, adding to cost pressures on US manufacturers.
A glut of artificial intelligence listings in Hong Kong weighs on the stock market, while the gap between equity issuance and overall performance highlights weak global demand for Chinese shares.
Private equity firm Vista Equity Partners is considering strategic options for Finastra, including a possible sale of the financial-institution software provider, according to four people familiar with the matter.
The Cboe VIX Index, a measure of volatility, rose to 18 on Monday, potentially offering a clue about whether bond-market concerns or AI risks matter more to stocks.

Concord Pacific Developments acquired a 50-turbine wind farm from Potentia Renewables for several hundred million Canadian dollars. Its CEO said the purchase reinforces the developer’s long-term renewable-energy strategy, while it is also working on a move into data centers.
Global markets faced pressure from growing concerns about the artificial intelligence sector and higher oil prices that are adding to inflation risks, the Wall Street Journal reported. Technology stocks fell worldwide and Nasdaq 100 futures dropped more than 1.5%. Brent crude neared $110 a barrel, while the 10-year US Treasury yield approached 5%.

Brent crude has climbed above $100 a barrel as the war in Iran disrupts shipping through the Strait of Hormuz. Houthi forces’ capture of Mayun Island is also raising concerns about the security of another major oil route through the Bab al-Mandeb.
Bitcoin was trading above $77,000 as AI-related selling pointed to a weaker Wall Street open. Chip stocks were among the hardest hit, while several software shares rose, suggesting a selective reassessment of the AI trade rather than uniform selling. The US cash session will test whether Bitcoin can hold its level as equity losses broaden or narrow.

Bitcoin is managing a modest rise while stocks decline amid concern over artificial intelligence and oil prices surge. The Federal Reserve’s two-day policy meeting starts tomorrow, with nearly everyone expecting the U.S. central bank to raise its benchmark policy rate by 25 basis points.
Stock futures fell sharply Monday morning, led by technology shares, after prominent artificial intelligence CEOs urged the industry to slow the pace of developing the revolutionary technology.

Leading AI developers have warned that development should be slowed as the industry faces mounting demands to prioritise safety over profits. Their remarks weighed heavily on technology shares on Monday, including SoftBank.
The crypto market is outperforming, while calls for slower artificial intelligence development are weighing on technology stocks.

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