Hurricanes in the U.S. and Mexico
Powerful hurricanes have killed several people and left thousands without electricity in the United States and Mexico. Experts warn that this year’s strong El Niño, a Pacific climate pattern that contributes to warmer global temperatures, could make storms longer and more destructive.
AI oversight
Banking regulators on both sides of the Atlantic are questioning financial institutions about their use of AI models, amid fears of risks to financial stability, Reuters reports. Separately, the Financial Times reports that Britain’s AI minister is preparing proposals for compulsory monitoring of frontier AI technology.
Borrowing costs and the AI economy
U.S. home sales have fallen to a 12-year low as mortgage rates topped seven percent. U.S. bond yields touched a 24-year high, while European borrowing costs reached levels not seen in decades. The United Nations warns that liquidity crises in several developing countries could push millions into poverty. Those countries now spend an average of 9.5 percent of government revenue on interest payments.
The IMF has slightly raised its global growth forecast, saying AI investment is outweighing rising debt for now. It still expects growth to slow and has raised its inflation forecast. Meanwhile, tech shares fell as investors questioned the financing of AI expansion, with South Korea leading Asian tech declines.
Chicago Fed President Austan Goolsbee says AI investment is driving up costs for land, power, water and construction. He does not yet see economy-wide overheating. Fed Governor Lisa Cook has warned that raising interest rates to address sector-specific inflation could be a mistake.
In U.S. news
The United States has deported Yamile Alcantu, a Cuban woman who lived in the country for about 25 years, to Mexico. U.S. officials say Cuba has historically refused many deportees; U.S. lawyers describe Mexico’s acceptance of many Cuban nationals as an unwritten arrangement.
In Erie, Pennsylvania, the county coroner identified Matthew Stone Sr., 45, as the gunman who killed eight people, including seven relatives and two young grandchildren. Police Chief Rick Lorah said he thinks mental health played a role, but it was too soon to discuss a motive.
Russian energy purchases
The European Commission disputes Moscow’s claim that the EU has spent $320 billion on Russian energy since 2022. The commission puts the total at $209 billion.
Denmark’s data breach
Denmark’s government confirmed on October 5 that information belonging to 8.8 million people was accessed through misuse of a company’s authorized access to the national population register. Pays confirmed on October 9 that its access had been exploited. A person claiming responsibility told Politiken they used an account protected by the password “123456”. The newspaper reported that at least three company accounts shared that password, including an administrator account.