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Recent Editions
Risk Channel
North America
Amazon engineers expressed frustration over the company's mass layoffs while committing to spend $200bn on AI infrastructure this year. At a Seattle City Council meeting, Patrick Schloesser, a software engineer at Amazon Web Services, said: “What that tells me is that Big Tech is desperate to build as much compute capacity as it can, as fast as it can.” The council unanimously approved a one-year moratorium on new large-scale AI data centers to regulate their development. This decision follows public outcry against proposed projects, with 14 states considering similar legislation. Schloesser, along with other engineers, urged for renewable energy commitments and better job provisions in data center projects. The layoffs, totaling over 30,000 since October, are part of chief executive Andy Jassy's strategy to streamline operations.
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Risk Channel
UK/Europe
Asia-focused UK financial stocks fell after reports that Chinese lenders have tightened access to Hong Kong bank accounts for mainland clients as Beijing seeks to curb capital flight. Standard Chartered closed down 2.8%, HSBC lost 1.8% and Prudential fell 7.6%, reflecting investor concern that stricter oversight could reduce cross-border demand for banking, investment and insurance products. The South China Morning Post reported that Bank of East Asia’s Shanghai branch had suspended the opening of Hong Kong accounts, while Reuters said HSBC and Hang Seng Bank had asked some investment-account clients to confirm funds came from overseas rather than China. Jefferies analysts said the rules appeared aimed at enforcing existing restrictions rather than disrupting the system, but warned that some customers may avoid buying products altogether.
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