The German government has officially halved its economic growth forecast for 2026, citing the severe impact of energy shocks stemming from the Iran war. This revision reflects a significant cooling for Europe's largest economy.
The Bank of England warns the UK faces recession risk if the AI stock bubble bursts, potentially causing a 2.2% GDP fall. Governor Andrew Bailey cited "triple whammy" risks from overvalued AI stocks, slower adoption, and uncertain long-term winners, while ruling out new regulations.
The European Central Bank's top supervisor, Claudia Buch, has instructed the EU's largest lenders to submit action plans by the end of October detailing how they will manage risks posed by advanced AI models, citing potential disruptions to the financial system.
Samsung expects Q2 operating profit of 89.4tn won, 19x higher YoY, due to soaring AI chip demand. Despite record forecasts, shares fell 7% as the market had already priced in growth and investors question spending sustainability.
Microsoft announced Monday it will lay off approximately 4,800 employees, about 2% of its global workforce. The cuts will heavily impact Xbox, with 3,200 gaming jobs and four studios affected, as the company invests in AI and faces industry shifts.
Sky, owned by Comcast, will acquire ITV's media and entertainment arm for up to £1.6bn to create a major UK streaming competitor. The deal includes ITV's TV channels and streaming service, aiming for significant audience expansion and cost savings.
South Korea plans to use record-breaking tax income from its chip industry, driven by AI demand, to fund a "future response fund." Proceeds will support industrial infrastructure, young generations, and utilities for chip plants, reflecting strong profits from Samsung Electronics and SK hynix.
