UK-based multi-development bank the European Bank for Reconstruction and Development (EBRD) is set to collaborate with emerging market asset manager ILX and the European Union (EU) to improve "climate-smart solutions, digital transformation and financial inclusion" in eastern Europe. Although not strictly a blended-finance arrangement as the ILX investment is ring-fenced, the $300m project sets down a "new marker in development finance," according to Valdis Dombrovskis, European Commission executive vice-president. Dombrovskis said he hoped the scheme would serve as "a new model that can inspire other international financial institutions and private investors to step up sustainable and green investment." The initiative ties into the EU's plans to invest $300bn in green projects with a view to attracting private funding.
CEO of OpenAI, Sam Altman, faced US lawmakers recently. With AI predicted to have potentially dangerous consequences for humanity, Altman has warned of the need for AI regulation. He co-founded OpenAI to ensure that technology advances were used safely and has admitted that if this technology goes wrong, it can go very wrong. His belief in long-term investment has made him a great investor. Altman’s company, OpenAI, is a not-for-profit organization that is dedicated to making sure AI benefits humanity at large, but it also has the huge moneymaking potential of AI to grow.
The wife of UK Prime Minister Rishi Sunak, Akshata Murty, joined the G7 delegation to Japan, marking her first foreign political trip. Murty, who has attracted public attention since her husband took office, has been increasingly visible in public life. The couple's combined wealth is reportedly huge, however, Murty has opted for a wardrobe consisting of designer and high-street fashion brands.
Orcas off the coast of Spain and Portugal have led to the sinking of boats, leading researchers to believe they may be seeking revenge for a female orca that had suffered a traumatic experience with a boat. A marine biologist at the University of Aveiro in Portugal suggested that a female orca called White Gladis had started attacking boats after a “critical moment of agony” and had taught other adult orcas to do the same. While the “disruptive” interactions between orcas and boats were generally minor, some had resulted in sinkings. Researchers warned that the situation could become an issue for the safety of sailors and the orcas themselves, especially as the animals are endangered in the area.
China's local government debt has been making investors increasingly nervous and will be a potential drag on the economy for years to come. While the risk of default in municipalities in China is currently relatively low given Beijing’s implicit guarantee on the debt, the worry is that local governments may have to make painful spending cuts or divert money away from growth-boosting projects to continue to repay their debt. The city of Hegang was China's first to be forced to undergo financial restructuring, with more set to follow, making the situation for President Xi Jinping an ominous one. Xi is looking to double income levels by 2035 while reducing income inequality, which is a key factor for social stability and his aim to rule the Communist Party for potentially the next decade or more.
Majority of China’s regions have a debt-income ratio over 120%, with most provinces exceeding the threshold to represent “high debt risks.” China’s total government debt is estimated to be $23tn, a figure that includes the hidden borrowing of thousands of financing companies set up by provinces and cities. Hegang has debt of more than double its fiscal income and is suffering from leadership’s belt-tightening measures, including a lack of heating in freezing winter temperatures and the cutting of public-sector wages.
Without loan extensions, more than two-thirds of Chinese localities won’t be able to repay their debt on time. Cities like Liaoning and Inner Mongolia, with large amounts of bond interest payments that are close to breaching the threshold, need to tread carefully in addressing their debt. In trying to curtail the implications of China’s local government debt problem from spreading throughout the country, Beijing has sought to ease public concerns by saying local government finances are generally “stable.”
A female orca that suffered a traumatic incident with a boat is thought to be behind a spate of attacks that have sunk vessels off the Iberian coast. The theory is that the animal developed a hatred of boats and started attacking them in “revenge”, according to Alfredo Lopez Fernandez of the University of Aveiro in Portugal. The attacks began years ago and have recently seen apparently coordinated ambushes on boats by groups of orcas. The majority of the interactions have been brief and caused minimal damage to vessels, but on three occasions boats have sunk.
