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Risk Channel
North America
Geopolitical risks and oil shock are Fed's top worries

The Federal Reserve's latest semi-annual Financial Stability Report cites geopolitical risks and the oil shock precipitated by the war in the Middle East as the top worries of survey respondents; artificial intelligence and private credit have also become prominent concerns. Three-quarters of respondents said geopolitical risks were their top concern; ​the oil shock was cited by 70%. Half of survey respondents identified AI and private credit as potential threats to financial ​stability. The Fed said the risks to financial stability from private credit appear "limited and manageable." 

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Risk Channel
UK/Europe
Countries agree among themselves to not impose duties on e-commerce

The US and ‌18 other countries including Japan, South Korea, Singapore and Australia have agreed not to impose duties on e-commerce after no deal was reached to end deadlock with Brazil. Turkey, which had previously been against a four-year extension of a global deal, dropped its opposition. "This group of Members remains committed to do what we can to provide to businesses and consumers a measure ‌of predictability ⁠and certainty in the absence of the multilateral E-Commerce Moratorium," a document dated May 7 said. The document invited other members to join the agreement. Sabina Ciofu, the international policy and strategy lead at UK trade association techUK, said the failure to secure a multilateral agreement was deeply concerning. "If WTO ​members cannot maintain consensus around one ​of the longest-standing and most ⁠widely supported rules underpinning digital trade, serious questions will continue to grow about the organisation's relevance," Ciofu said.

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