AI boom risks global financial crash, warn central bankers

The Bank for International Settlements (BIS) has warned that substantial debt-fuelled spending on artificial intelligence (AI) is driving up the risk of a global financial crisis.

The Basel-based Organisation, which advises the world’s central banks, said that “excessive” spending on new AI data centres and opaque, debt-fuelled transactions risked a financial meltdown similar to the global credit crunch nearly two decades ago.

The BIS said there was growing “peril” in financial markets from the complex web of financial ties between ai giants, shadow banks, and data centre builders unravelling. “Financial stability could...be at risk in the event of an AI bust, ” the BIS said. “Should hyperscalers slow or halt the aggressive pace of capex deployment, many borrowers across the supply chain could struggle to replace lost revenue and service their debt.

“The opacity of AI-sector financing compounds these vulnerabilities.” Pablo Hernández de Cos, the BIS general manager, said there were major questions about whether the boom would benefit the wider economy and warned a reversal of “AI exuberance” could have serious economic consequences. “One risk is that large-scale investment in AI infrastructure becomes excessive, as each firm tries to outcompete rivals and dominate market share,” he said.

Reference Sources

1. ft - AI ‘exuberance’ risks ending in lengthy investment bust, BIS warns
2. telegraph - AI boom risks global financial crash, warn central bankers

The copper crunch: Inside the US-China battle for a critical global supply chain

The race to secure copper has become one of the most important commodities of the 21st century, powering the servers, systems, and cooling infrastructure that support artificial intelligence, batteries used in electric vehicles, and the electronics guiding modern weapons. 

US Commerce Secretary Howard Lutnick is expected to deliver an updated assessment of the market to the White House by June 30, after US President Donald Trump signed an executive order last year to revive America’s domestic industry.

The report will include an update on the necessity of new tariffs on refined copper imports, following a recommendation by Lutnick in a similar report last year.

If approved, these tariffs would be imposed on an existing 50% tariff on semi-finished copper products and intensive derivative items, levied in August with other measures designed to encourage domestic production and investment.

However, Washington faces a serious challenge: its growing focus on supply chain security is colliding with a highly concentrated global industry. “A single foreign producer dominates global copper smelting and refining, controlling over 50% of global smelting capacity and holding four of the top five largest refining facilities,” the White House wrote in a February 2025 order, which opened an investigation into copper imports under section 232 of the 1962 Trade Expansion Act.

Reference Sources

1. thestarmy - The copper crunch: Inside the US-China battle for a critical global supply chain

France records around 1,000 excess deaths in heatwave, says health agency

France has recorded approximately 1,000 more deaths than usual during the blistering heatwave sweeping Europe, according to the French public health agency.

The increase primarily affects people aged 65 and older, with a 40% rise in deaths occurring at home.

The agency reported over 1,200 deaths on 24 June, and more than 1,400 deaths daily on 25 and 26 June. By comparison, daily deaths in April and May ranged between 900 and 1,000.

Heatwaves are becoming more frequent and intense due to Human-Induced climate change. Extreme heat is often referred to as a “ silent killer ” because it is rarely identified as the direct cause of death.

Reference Sources

1. thestarmy - France records 1,000 excess deaths during record-breaking heatwave
2. france24 - Europe swelters under record heat
3. malaymail - France records around 1,000 excess deaths in heatwave, says health agency
4. brusselstimes - About 1,000 more deaths than usual recorded in France since Wednesday due to heatwave
5. usnews - France Records 1,000 Excess Deaths During Record-Breaking Heatwave

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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