Global attention was fixed on a range of significant developments this Wednesday, from a major speech by a top US Federal Reserve official on the economic impact of AI to a stark new forecast on global energy demand.
In corporate news, shares of toymaker Pop Mart dropped on warnings of slowing demand, while in the UK, business leaders are urging the government to avoid new tax hikes in its upcoming budget.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Fed governor Barr says AI will transform economies
Federal Reserve Governor Michael Barr said on Wednesday that while artificial intelligence is set to transform economies, the ultimate outcome remains uncertain.
In a speech at the Singapore FinTech Festival, Barr outlined two potential scenarios: one where AI merely augments existing jobs, and another where it leads to radical changes in work and leisure that remake entire industries.
“Right now, it is difficult to predict which scenario… will come to pass,” he said.
Barr also noted that a New York Fed survey showed AI has led some employers to scale back hiring plans, which may be contributing to slower job creation.
Pop Mart shares fall as analysts warn of disappointing results
Shares of Chinese toymaker Pop Mart International slid as much as 3.7% in Hong Kong after analysts at Bernstein warned that the company’s fourth-quarter results could disappoint.
The analysts cited “broad-based demand deterioration” in both China and overseas markets during October.
“The convergence of weakening transaction data, social media engagement, and search interest… paints a picture of fundamental demand deceleration difficult to dismiss,” they wrote.
The warning amplifies existing concerns about the sustainability of the frenzied demand for the company’s popular Labubu dolls, sending the stock down almost 40% from its record high in August.
UK businesses urge government to avoid tax hikes in upcoming budget
UK business leaders are calling on Chancellor of the Exchequer Rachel Reeves to ease their energy costs and avoid imposing new taxes as she prepares to deliver her budget on November 26.
After a £40 billion tax hike last year that largely targeted businesses, corporate Britain is feeling “drained,” according to the British Chamber of Commerce.
The chancellor is facing a fiscal gap of between £20 billion and £30 billion and is under pressure to raise funds without stifling economic growth, a key mission of the Labour government.
IEA reverses stance, says oil and gas demand could grow until 2050
In a major departure from its previous forecasts, the International Energy Agency (IEA) said on Wednesday that global oil and gas demand could continue to grow until 2050.
The new prediction suggests the world will likely fail to achieve its climate goals and reverses the IEA’s earlier stance that oil demand would peak this decade. The shift comes after pressure from the US.
Trump administration, which has called for expanded oil and gas production.
In its annual World Energy Outlook, the IEA predicted oil demand will hit 113 million barrels per day by mid-century, up around 13% from 2024.
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