Banks should collaborate on data to improve their fight against financial crime by enabling financial institutions to share information from within and outside their networks, according to the CEO of Nasdaq, Adena Friedman. Speaking in the Financial Times, she said the increase in financial crime was partly due to regulations that limited banks’ use of data and technology. Friedman spoke of the benefits of the New York exchange's own approach to combating financial crime, in which data from over 2,400 banks was used in conjunction with advanced artificial intelligence algorithms. Regulators should also allow banks to use data sets in order to combat crime and employ cloud-based AI and machine learning to tackle the problem.
The number of children who have missed the majority of school has doubled since before the pandemic, despite the lifting of UK Covid-19 restrictions, raising concerns about the lasting impact of lockdowns on mental health and family engagement with education. The Department for Education has urged ministers to take action in response the figures, which show that 125,000 pupils missed 50% or more of school during the autumn term of 2020, up from 60,200 in 2019. One in 10 pupils has been absent from secondary education this academic year, while more than a quarter have missed at least 10% of classes.
Meta is developing custom chips in-house for AI work, according to spokespeople for the social media giant, including for its Meta Training and Inference Accelerator (MTIA) project. The company has in the past drawn criticism for its handling of data, while its plans to develop a large-scale inference chip in-house were previously abandoned, in favor of a more grandiose system that would enable training as well. MTIA is powered by RISC-V architecture and looked hopeful in early testing for low-and medium-complexity models, though its developers were said to have struggled with complex models. Data center projects, including new networking and cooling systems, have also been announced.
The inflation caused by the burst in demand during the COVID-19 pandemic and stretched supply chains persists, particularly in areas such as auto and data centre construction, and electrical equipment production, according to supply chain managers at several companies. Global supply chains have recovered to some extent, allowing businesses to access the stock they need, however, labour shortages and problems getting upstream supplies remain an issue. While the Fed's rate hikes have halted the most significant inflation, annual consumer price growth is still above its 2% target in the US.
European governments have failed to act fast enough to turn around their industrial policy and meet Ukraine’s growing needs for artillery ammunition, armored vehicles, and other weaponry, military experts have warned. Kyiv’s stores of Russian-made equipment are becoming depleted, as are the West’s own stockpiles, raising the risk of shortages in supplies for Ukraine by the end of the year, which would hamper Ukraine’s ability to launch any further offensives. “That was not core to the planning, and they were not stockpiling ammunition in sufficient numbers for that type of contingency," says Camille Grand from the European Council on Foreign Relations. The European Commission this month announced a 500 million euro plan to boost production in Europe of the artillery shells Ukraine needs. Military experts say that although the initiative marks a significant shift, it has been too slow to act. The E.U. is yet to issue any new contracts.
Amid reports that the Russian military is largely holding its position, although concerns are developing over long-range missile supplies, Ukraine is appealing for more military aid from the West and for more sanctions to be imposed on Russia. Reports suggest that some of the new weapons pledges may not reach the battlefield until well after the start of a counteroffensive.
Apple has reportedly banned the use of external artificial intelligence (AI) tools, including ChatGPT, for its employees. The tech giant is believed to be concerned about the risk of confidential data leaks from workers who use the applications. Apple has also advised against the use of GitHub's Copilot, which automates software code writing.
Democratic governments in the US, UK and Japan could face the “disruptive” powers of generative artificial intelligence and “malicious elements” controlling AI, according to Japan’s Digital Minister, Taro Kono. Speaking to The Financial Times, Kono noted that AI could be used in the forthcoming general elections in the UK and Japan and the US presidential race to destabilise governments. Kono added that governments need to consider how to maintain people’s trust in democracy and that AI was high on the agenda at the G7 leaders’ meeting in Hiroshima. The lack of global regulatory frameworks for cross-border data flow was also discussed.
Twitter has accused Microsoft of violating an agreement over data usage, saying the company used Twitter's data without authorization. Alex Spiro, a lawyer for Twitter owner Elon Musk, alleged that the tech giant had shared data with government agencies without permission. Spiro wrote to Microsoft CEO Satya Nadella asking the company to conduct an audit of its Twitter content use. A spokesperson for Microsoft confirmed that it had received questions from a law firm representing Twitter and would respond appropriately.
Mackenzie Investments customers are questioning why their data was kept by a third party after a hack exposed their personal information and may have accessed social insurance numbers. InvestorCOM, which shares the same print and delivery tool as Franklin Templeton, was targeted, potentially revealing data on present and former customers, raising questions about why InvestorCom still had records on file for customers who’d long since relinquished their funds from Mackenzie or Franklin Templeton. Under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), companies suffering a hack need to turn over information to the Office of the Privacy Commissioner of Canada. Although the OPC is aware of the breach's scale, it declined to comment on the number or which companies had been affected. The breach has also posed challenges for some investors wanting to access the support Mackenzie offered after the hack.
Pfizer's experimental respiratory syncytial virus (RSV) vaccine has been backed by advisers to the US Food and Drug Administration for its safety and effectiveness in preventing lower respiratory tract infections and severe illnesses in infants up to six months of age. The vaccine is the first maternal shot to be available for protecting babies against the illness. The expert panel unanimously voted in favour of the vaccine's efficacy in women in their second or third trimester, with 10-4 supporting its safety. US approval now seems likely.
The UK's Office for National Statistics (ONS) initially underestimated the country's population of foreign nationals by almost half a million, due to a flaw in how data was collected. Many of the migrants were employees of Wizz Air, the regional airline that frequently lands at airports inspected by personnel conducting the International Passenger Survey (IPS), which offers estimates of migration to and from the UK. The survey targets random individuals and questions cover issues such as how much was paid for airline tickets. The experience made Brexiteers question the ability of the IPS to produce accurate data.
UK private sector retirement schemes M&S and Diageo were among those impacted by a recent cyber attack on government outsourcer Capita that saw the data of hundreds of pension administration customers hit. Members of the M&S scheme were warned that their data may have been stolen by hackers, including a large proportion of those who had worked for the retailer, with Capita confirming that some Diageo members were impacted by the breach. Many members are now being offered free subscriptions to identity protection services. Trustees of the M&S pension plan declined to comment on the severity of the hack and sources noted that further institutions could be offering similar services via Capita.
Gun control advocates in the US see the prohibition of "large-capacity magazines" as a step towards reducing gun violence. They argue that law-abiding citizens rarely need to fire more than ten rounds without reloading during a defensive gun use. However, the Second Amendment's protections are not limited to the technology that existed in 1792, and multi-shot firearms were known to the Founding generation. A new report argues that owning magazines with a capacity above ten rounds can sometimes be the difference between life and death or serious bodily injury.
China has been increasing its aggression towards Taiwan in response to visits from US officials. After Taiwan’s President Tsai Ing-wen met with US House Speaker Kevin McCarthy in April, China's People’s Liberation Army Air Force and Navy conducted large-scale military exercises. The activity continued at a lower level than before the visit but included the release of animated videos of missile launches against Taiwan, indicating that China has identified targets in Taiwan to destroy in an invasion. Overall, the activity has fuelled concerns over a possible conflict and experts predict that the exercises are geared towards preparing for that possibility.
Genetic data from raccoon dogs in a Chinese wet market is the "strongest evidence yet" of the natural origin of COVID-19, according to a report in The Atlantic. Though the animals may have been shedding the virus in late 2019, the World Health Organization does not consider the data "conclusive evidence as to the intermediate host or origins of the virus." Furthermore, Republican officials claim that co-author of the influential March 2020 Nature Medicine article, Kristian Andersen, had initially had reservations about the virus's natural origins. The data originated from the Global Initiative on Sharing Avian Influenza Data genomic database.
European stocks rose on Friday on the back of progress in US debt ceiling negotiations, with the pan-European STOXX 600 index up 0.4% by 0708 GMT. The German DAX was among the gainers, up 0.3%, and now less than 100 points below its all-time high of 16,290.19, hit in November 2021. Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde were scheduled to speak at separate panel discussions later in the day.
The UK’s pledge of £1bn ($1.4bn) to boost its semiconductor industry over the next decade has been criticised as “insignificant” by industry figures, compared to the $50bn promised by the US and €43bn pledged by the EU. The boost is intended to expand the domestic industry, protect national security and reduce the risk of supply chain disruption. However, the UK currently has to import critical silicon chips from Taiwan. Simon Thomas of UK start-up Paragraf described the announcement as “quite frankly flaccid” and Garner consultant Gaurav Gupta said it would not create a UK company capable of competing with major chip producers.
Markets are set for a week of drama with Brexit talks continuing, US and Chinese economic statistics set to be released which will measure inflation and growth rates and Greece's elections on Sunday. These figures will provide investors with some insight into the direction of the global economy. There are signs that US inflation on Friday's Federal Reserve PCE price index may not increase further, resulting in a potential interest rate reduction. There is also subtle anticipation regarding China's central bank which may decide to increase monetary or fiscal incentives to boost the country's economy. Greece's election is anticipated to have a calming effect on the market if an investment-grade credit rating is achieved.
TikTok's CEO, Shou Zi Chew, has been told by Thierry Breton, the EU industry chief, that there is a lot that needs to be done to ensure his social media site is compliant with EU rules. This includes stricter content moderation, safe use of data, especially regarding children. A number of Western countries including the UK, the US, and several EU members have all banned the use of TikTok over security concerns. It was included among 19 large online platforms that are subject to new online content rules from August known as the Digital Services Act (DSA).
Alibaba Group's plan to relinquish control of its Alibaba Cloud business is drawing speculation as to whether it's a reaction to market or political realities. In a historic six-way shakeup, CEO Daniel Zhang announced Alibaba would fully spin-out its once-thriving cloud operation, whose flagship event is the annual Singles' Day gala. Following government scrutiny of private clod services and a software flaw, there has been a shift toward state-owned providers such as China Mobile which have been attracting risk-averse institutions. Zhang said the spinoff was intended to simplify the structure and respond to market needs.
