09 October 2023
- The United Nations and the Dutch government have initiated a project called “Supervising AI by Competent Authorities” to create a framework for ethical AI supervision in European countries. This project, financially supported by the European Commission’s Technical Support Instrument (TSI), aims to collect data on how European nations oversee AI and develop a list of “best practice” recommendations. The project’s goal is to shape the development of AI through effective governance frameworks aligned with ethical values, as discussed by Gabriela Ramos, the Assistant Director-General for Social and Human Science at UNESCO. This initiative follows UNESCO’s prior efforts to establish ethical AI guidelines, and it aligns with the European Union’s AI Act and various national AI strategies in Europe.
- Hamas launched a major assault on Israel, firing rockets from Gaza and sending fighters across the border. Israel responded with airstrikes and reported clashes between Palestinian fighters and security forces in southern Israel. This escalation follows a history of conflicts between Israel and Palestinian groups, with previous flare-ups resulting in casualties and tensions in the region.
- In a speech at the European Political Community summit in Spain, Ukrainian President Volodymyr Zelenskiy expressed confidence in continued U.S. support and called for more assistance and weapons to combat Russian aggression. He highlighted the dire situation in Ukraine, where schoolchildren in Kharkiv are forced to study remotely or in underground subway stations due to air raids, emphasizing the need for an effective air defense system. Zelenskiy also warned against allowing Russian President Vladimir Putin to strengthen his military, as it could lead to further aggression beyond Ukraine by 2028.
What to watch out for this week
- In the United States, the focus will be on the September inflation report. The Consumer Price Index (CPI) is expected to have risen 0.3% last month, down from the 0.6% increase observed in August, while the core index is also expected to have increased by 0.3%. In addition, the annual inflation rate is anticipated to slow slightly to 3.6%. Investors will also pay close attention to the release of Federal Open Market Committee (FOMC) minutes, speeches from various Federal Reserve officials, Michigan Consumer Sentiment data, producer inflation figures, and the government’s monthly budget statement. The coming week will also see the start of the Q3 earnings season, featuring reports from companies like Citigroup, JPMorgan Chase, Wells Fargo, BlackRock, UnitedHealth Group, PepsiCo, and Delta Air Lines. In other parts of the Americas, key data to keep an eye on include inflation reports from Mexico and Brazil, along with Brazil’s business confidence.
- In Europe, the European Central Bank (ECB) is scheduled to release its monetary policy meeting accounts on Thursday. In addition, updated Consumer Price Index (CPI) reports are expected to confirm a significant decline in inflation in Germany to 4.5%, while France is expected to maintain its high level at 4.9%, both considerably above the ECB’s 2% target. Industrial production in the Euro Area is anticipated to experience a slight rebound, while Italy is likely to see stagnant output growth, and Germany may record its fourth consecutive monthly decline in output.
- In the United Kingdom, monthly GDP figures from the Office for National Statistics (ONS) are anticipated to show economic growth in August. However, industrial and manufacturing output is expected to decline for the second consecutive month. Investors will also monitor data on the foreign trade balance, construction output, and the BRC retail sales monitor.
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