- The banking sector is concerned about the risks associated with its reliance on AI from Big Tech companies
At the Money20/20 conference, the world's largest financial technology event in Amsterdam, leaders in the banking sector in Europe warned about the explosion of artificial intelligence (AI), which could increase banks' dependence on large US technology companies (Big Tech), creating new risks for the industry. Just one serious incident at these companies could disrupt a multitude of services for many banks.
- Gold mining is becoming increasingly challenging globally
According to the World Gold Council (WGC), the gold mining industry is struggling to maintain growth due to increasingly scarce mines. Gold production in 2023 only increased by 0.5% compared to the previous year. In 2022, the increase was 1.35%, and before that, it was 2.7%. The reason is that new gold mines worldwide are becoming increasingly difficult to find, as potential areas have already been exploited. The WGC also notes that large-scale gold mining requires substantial capital investment and thorough exploration. On average, a mine takes 10-20 years to produce results.
- The sea freight market is undergoing rapid changes, with freight rates doubling
The container transport market has significantly heated up in recent weeks, with freight rates on many routes doubling compared to the same period. Specifically, Drewry's container freight rate index surged by 12% to $4,716 per FEU (40ft container), marking a 181% increase compared to the same period and a 232% rise over the 2019 average. As a result, experts predict that the container transport market will continue to experience strong fluctuations. Although additional transport capacity is expected to alleviate some pressure this year, the overall outlook depends on various factors.
The British pound reached a near two-year high against the euro
- On June 10th, the British pound reached its highest level against the euro in nearly two years while depreciating against the US dollar.
- The British pound decreased by 0.2% against the US dollar, falling to 1.2698 USD/pound. The pound is maintaining a downward trend against the US dollar, following a 0.5% loss against the greenback on June 7th.
- Experts at ING believe that the pound's price increase will not be sustained and could reverse next week, especially after news from the Bank of England suggesting preparations for an interest rate cut in August.
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