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Monday, November 11

FTSE 100 hovers with AI in the spotlight as global leaders head to Davos

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By on Economy

Global leaders and policymakers made tracks for the World Economic Forum in Davos, Switzerland. The FTSE was up 0.1%. (Markus Schreiber, Associated Press)

The FTSE 100 and European markets made muted moves higher on Monday morning in London, as global leaders and policymakers made tracks for the World Economic Forum (WEF) in Davos, Switzerland.

The FTSE 100 (^FTSE) was up 0.1% in early trade, while the DAX (^GDAXI) and CAC (^FCHI) rose 0.1%. The pan-European Stoxx 600 (^STOXX) was also up 0.1%.

Davos will play host to a bevvy of high profile meetings and talks this week, with AI and frontier tech at the forefront of minds.

On Monday morning, one of the world’s top banking regulators kicked off with a warning that leaders would need to present a united front in coordinating against challenges posed by AI. The chair of the Basel Committee on Banking Supervision Pablo Hernández de Cos said AI “could change the course of history, not necessarily for the good,” the Financial Times reported.

“What we are observing at the geopolitical level shows that reaching common agreements is becoming more and more difficult,” he added, saying this is a “concern” for him and others.

Read more: UK house prices rise in the new year

As AI tops the agenda, Microsoft’s (MSFT) Satya Nadela is speaking at Chatham House on the topic later on Monday. Sam Altman, CEO of OpenAI is also due to speak this week.

Follow along for live updates:

Live7 updates

  • Trending ticker: Baidu

    Baidu has piqued interest today due to links to the Chinese military. Yahoo Finance UK reporter Pedro Goncalves explains here:

    Shares in the search engine firm plunged by almost 12% after a report linked its Ernie AI platform to Chinese military research into artificial intelligence.

    The South China Morning Post reported that scientists at Chinese military labs were testing an artificial intelligence system based on the company’s large-language model ErnieBot.

    Baidu said in a statement that it “has no affiliation or other partnership with the academic institution in question.”

    Despite the denial, the report fuelled concerns that any potential affiliation with the Chinese military could attract sanctions from the US.

    Baidu debuted Ernie, the country’s earliest answer to OpenAI’s ChatGPT, in 2023 and amassed 100 million users in the months after its public rollout.

  • AI to hit 40% of jobs, says IMF

    AI is coming for your jobs, according to a new IMF blog post.

    The international financial agency found almost 40% of jobs could be impacted by the rise of AI.

    “Historically, automation and information technology have tended to affect routine tasks, but one of the things that sets AI apart is its ability to impact high-skilled jobs,” it wrote. “As a result, advanced economies face greater risks from AI—but also more opportunities to leverage its benefits—compared with emerging market and developing economies.”

    The potential impact is higher in advanced economies, where about 60 percent of jobs may be impacted by AI, the analysis showed.

    Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear.

  • Four ECB rate cuts predicted for 2024

    Economists expect four European Central Bank (ECB) rate cuts in the coming year, a report on Monday said.

    Bloomberg reported that the cuts of 25 bps each could kick in in June, with reductions in September, October and December bringing the rate to 3%.

    Recent policy moves and hints have left rates on hold for the bloc, which has hiked 10 times since mid-2022.

    The poll follows predictions that the Bank of England could begin cutting sooner than expected, as inflation is forecast to hit 2% by April due to a slump in oil and energy prices.

  • A summary of the morning

    Here we have a potted summary of the morning /weekend by Finalto chief market analyst Neil Wilson:

    Risk off tone to start the week: European stock markets were softer in early trade on Monday as the week got off to a relatively quiet, risk-averse start, with US markets set to stay shut for a holiday. Taiwan’s stock market rose a touch after the pro-independence party won the presidential election but saw its parliamentary majority reduced. Chinese equities fell as the central bank kept a key lending rate unchanged. Bitcoin fell after the spot ETF debut. Some folks are in Davos to talk AI and elections. Oil was steady after retreating from a surge on Friday as the US and UK engage Houthi rebels in the Red Sea. Hardly Mad Mitch stuff though I’m afraid.

  • FTSE risers and fallers

    An early look at the risers and fallers of the FTSE 100 (^FTSE)shows:

    Ocado (OCDO.L), down 2.2%

    Lloyds Bank (LLOY.L), down 1.5%

    Burberry (BRBY.L), down 1.4%

    Flutter (FLTR.L), up 2%

    Admiral Group (ADM.L), up 2%

    Entain (ENT.L), up 1.1%

  • Overnight in Asia

    It was a mixed day of trade for Asian indices, with Japan’s Nikkei (^N225) leading the pack in terms of daily gains. It was up 0.9% in the session, trading above the 35,000 mark. It hasn’t broken through 35,000 since the 1990s as it built on gains from the previous week.

    Meanwhile Chinese stocks were mixed. The Hang Seng (^HSI) fell 0.2% as China’s central bank opted to hold its interest rates at 2.5%. Growth in the region has come into focus in recent months amid fears of stalling growth for one of the world’s largest economies.

    The SSE Composite (000001.SS) rose 0.2%.

    Friday also spelt a mixed day for US stocks, which we will be watching at the open later on.

  • Good morning!

    Good morning from frosty London, where we’re gearing up for a day of following the news in Davos. AI is the topic on global leaders lips as we trudge through blue Monday. So, let’s get to it.

Watch: Wars loom as global elite gather in Davos

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