{"id":2017977,"date":"2026-06-29T10:32:18","date_gmt":"2026-06-29T07:32:18","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=2017977"},"modified":"2026-06-29T10:32:18","modified_gmt":"2026-06-29T07:32:18","slug":"the-ai-boom-propping-up-markets-could-trigger-the-next-crash-central-banks-warn","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=2017977","title":{"rendered":"The AI boom propping up markets could trigger the next crash, central banks warn"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/81\/71\/79\/1200x675_cmsv2_2a8ab975-6373-5333-a028-79ce650c548c-9817179.jpg&#8221;]<\/p>\n<article id=\"abe-2905892-pos1-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1 the-media-object--has-video\" data-nid=\"2905892\" data-cid=\"9818030\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905892-label-pos1-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/80\/30\/189x106_cmsv2_580aabd7-835d-524a-bd26-9cf0c1a16fad-9818030.jpg\" loading=\"lazy\" alt=\"Participants at Basel\u2019s yodelling festival sing in a fountain, Switzerland, 27 June 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Swiss yodellers rehearse in public fountains as Basel swelters\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905920-pos2-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2905920\" data-cid=\"9818157\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905920-label-pos2-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/67\/61\/55\/189x106_cmsv2_8c737888-66ec-512a-a906-9326e1a1a4e2-9676155.jpg\" loading=\"lazy\" alt=\"An aerial view of the Gjader migrant camp at Lezh\u00eb region, Albania, Saturday, Feb. 1, 2025. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    MEPs blocked from inspecting Italy&#8217;s Albania migrant centre\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905870-pos3-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1 the-media-object--has-video\" data-nid=\"2905870\" data-cid=\"9817899\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905870-label-pos3-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/78\/99\/189x106_cmsv2_7f4abb38-f308-5bf6-bcf7-58000b6052bb-9817899.jpg\" loading=\"lazy\" alt=\"Parade-goers attend the NYC Pride March, Sunday, June 28, 2026 in New York.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Thousands take part in New York Pride parade\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905737-pos4-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1 the-media-object--has-video\" data-nid=\"2905737\" data-cid=\"9817598\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905737-label-pos4-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/71\/43\/189x106_cmsv2_b5186e74-5c9c-5465-a068-d84074c57a78-9817143.jpg\" loading=\"lazy\" alt=\"Forensic police technicians examine a skydiving plane that crashed in Tomblaine, killing all 11 people on board, on Sunday 28 June 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Eleven killed as parachute training aircraft crashes near Nancy\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905892-pos1-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video\" data-nid=\"2905892\" data-cid=\"9818030\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905892-label-pos1-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/80\/30\/189x106_cmsv2_580aabd7-835d-524a-bd26-9cf0c1a16fad-9818030.jpg\" loading=\"lazy\" alt=\"Participants at Basel\u2019s yodelling festival sing in a fountain, Switzerland, 27 June 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Swiss yodellers rehearse in public fountains as Basel swelters\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905920-pos2-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2\" data-nid=\"2905920\" data-cid=\"9818157\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905920-label-pos2-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/67\/61\/55\/189x106_cmsv2_8c737888-66ec-512a-a906-9326e1a1a4e2-9676155.jpg\" loading=\"lazy\" alt=\"An aerial view of the Gjader migrant camp at Lezh\u00eb region, Albania, Saturday, Feb. 1, 2025. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    MEPs blocked from inspecting Italy&#8217;s Albania migrant centre\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905870-pos3-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video\" data-nid=\"2905870\" data-cid=\"9817899\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905870-label-pos3-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/78\/99\/189x106_cmsv2_7f4abb38-f308-5bf6-bcf7-58000b6052bb-9817899.jpg\" loading=\"lazy\" alt=\"Parade-goers attend the NYC Pride March, Sunday, June 28, 2026 in New York.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Thousands take part in New York Pride parade\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2905737-pos4-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video\" data-nid=\"2905737\" data-cid=\"9817598\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905737-label-pos4-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/71\/43\/189x106_cmsv2_b5186e74-5c9c-5465-a068-d84074c57a78-9817143.jpg\" loading=\"lazy\" alt=\"Forensic police technicians examine a skydiving plane that crashed in Tomblaine, killing all 11 people on board, on Sunday 28 June 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Eleven killed as parachute training aircraft crashes near Nancy\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article class=\"helper-site-row o-article-newsy\">\n<div class=\"helper-site-container o-article-newsy__container\">\n<div class=\"o-article-newsy__main\">\n<header class=\"h-grid o-article-newsy__main__header\">\n<nav aria-label=\"Breadcrumbs\" class=\"c-article-breadcrumbs\">\n<div id=\"adb-article-breadcrumb\" class=\"c-article-breadcrumbs__list\">\n<p>                          Business<\/p>\n<p>                          Economy<\/p><\/div>\n<\/nav>\n<h1 class=\"c-article-redesign-title\">\n                            The AI boom propping up markets could trigger the next crash, central banks warn<\/h1>\n<div class=\"c-article-image-video u-position-relative \">\n<div class=\"js-superdiv u-aspect-ratio-16x9 u-position-relative \" data-sponsored=\"Partner content\"><img fetchpriority=\"high\" decoding=\"async\" class=\"js-poster-img c-article-media__img\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/71\/79\/1536x864_cmsv2_2a8ab975-6373-5333-a028-79ce650c548c-9817179.jpg\" width=\"1536\" height=\"864\" loading=\"eager\" alt=\"People participate in a march to protest the opening of AI data centers in Vancouver, British Columbia, 27 June 2026\"><\/div>\n<div class=\"c-article-caption u-position-absolute\"><i id=\"article-caption-content\" class=\"c-article-caption__content\"><span class=\"c-article-caption__text\"><br \/>\n              People participate in a march to protest the opening of AI data centers in Vancouver, British Columbia, 27 June 2026<br \/>\n                    <span class=\"u-color-white\">&#8211;\u00a0<\/span><span class=\"c-article-caption__copyright\">Copyright\u00a0<\/span><span class=\"c-article-caption__credit\">Darryl Dyck\/The Canadian Press via AP<\/span><\/span><\/i><\/div>\n<div class=\"c-article-image-copyright c-article-image-copyright--novideo\">\n      Copyright\u00a0Darryl Dyck\/The Canadian Press via AP\n  <\/div>\n<\/div>\n<\/header>\n<div class=\"h-grid o-article-newsy__main__body u-article-content\">\n<div class=\"o-article-newsy__contributors-publication-date\">\n<div class=\"c-article-contributors\">\n  By&amp;nbspQuirino Mealha\n<\/div>\n<div class=\"c-article-publication-date\" data-timestamp=\"1782729138\">\n         Published on<br \/>\n            <time datetime=\"2026-06-29 12:32:18 +02:00\">29\/06\/2026 &#8211; 12:32 GMT+2<\/time><\/div>\n<\/div>\n<div class=\"c-article-share-comment u-align-items-center u-display-flex\"><span class=\"c-article-share-comment__links u-align-items-center u-display-flex u-justify-content-center js-c-article-share-comment-share\"><span class=\"c-article-share-comment__label\">Share<\/span><\/span><span class=\"c-article-share-comment__label\">Comments<\/span><span class=\"c-article-share-comment__label c-article-share-comment__label--always\">Add Euronews on Google<\/span><\/div>\n<div class=\"c-article-share-comment-popup-overlay js-c-article-share-comment-popup-overlay u-display-none\">\n<div id=\"js-c-article-share-comment-popup\" class=\"c-article-share-comment-popup js-c-article-share-comment-popup\">\n<div class=\"c-article-share-comment-popup__header u-display-flex\"><span>Share<\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/icon-close.svg\" width=\"24\" height=\"24\" alt=\"Close Button\" class=\"u-cursor-pointer js-c-article-share-comment-close\" loading=\"lazy\"><\/div>\n<div 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height=\"24\" alt=\"telegram\" loading=\"lazy\"><span>Telegram<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-telegram.svg\" width=\"48\" height=\"48\" alt=\"telegram\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-vk.svg\" width=\"24\" height=\"24\" alt=\"vk\" loading=\"lazy\"><span>VK<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-vk.svg\" width=\"48\" height=\"48\" alt=\"vk\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-bluesky.svg\" width=\"24\" height=\"24\" alt=\"bluesky\" loading=\"lazy\"><span>Bluesky<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-bluesky.svg\" width=\"48\" height=\"48\" alt=\"bluesky\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-threads.svg\" width=\"24\" height=\"24\" alt=\"threads\" loading=\"lazy\"><span>Threads<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-threads.svg\" width=\"48\" height=\"48\" alt=\"threads\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"24\" height=\"24\" alt=\"whatsapp\" loading=\"lazy\"><span>Whatsapp<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"48\" height=\"48\" alt=\"whatsapp\" class=\"u-show-for-desktop\" loading=\"lazy\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"c-article-summary\">\n        The vast surge of investment in AI, which has powered global stock markets to record highs, risks ending in a financial bust, the Bank for International Settlements warns, as the build-up\u2019s hidden costs begin to surface in company accounts and consumer prices alike.<br \/>\n    <\/h2>\n<div class=\"c-article-content c-article-content--business js-article-content\">\n<p>In its Annual Economic Report, published on Sunday, the Bank for International Settlements (BIS), known as the central bank for central banks, warned that the enormous spending on AI is accumulating financial vulnerabilities that could amplify any future shock and spread from markets into the wider economy.<\/p>\n<div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<p>Presenting the findings, BIS general manager Pablo Hern\u00e1ndez de Cos said the message was one of &#8220;urgency&#8221;, with policymakers urged to act before any reversal makes the eventual adjustment more painful.<\/p>\n<p>At the core of the warning is the scale of the spending, despite massive investment having supported global growth over the past year.<\/p>\n<p>The five largest &#8220;hyperscalers&#8221;, the technology giants racing to build AI infrastructure, are on track to commit more than $1 trillion (\u20ac878bn) to AI-related investment across 2025 and 2026, a pace that is outstripping their earnings and free cash flow and pushing some to borrow heavily to keep up. <\/p>\n<p>The BIS suggests this race is fuelled by a belief that only a handful of dominant players will ultimately prevail, encouraging firms to pour money into projects whose returns remain deeply uncertain.<\/p>\n<div class=\"c-widget-related\" data-stories-id data-event=\"widget_related\">\n<div class=\"c-widget-related__title\"><b class=\"c-widget-related__title__text\" lang=\"en\">Related<\/b><\/div>\n<ul class=\"c-widget-related__list\">\n<li class=\"c-widget-related__item\">Analysis: Will Big Tech&#8217;s colossal AI spending crush Europe&#8217;s data sovereignty?<\/li>\n<li class=\"c-widget-related__item\">The \u20ac3trn question: Can markets handle SpaceX, OpenAI and Anthropic all at once?<\/li>\n<\/ul>\n<\/div>\n<h2>Echoes of past manias<\/h2>\n<p>The report sets today&#8217;s AI boom against a long historical lineage, from the canal mania of the 1830s and Britain&#8217;s railway mania of the 1840s to the electrification of the 1920s and the dotcom bubble. <\/p>\n<p>Each began with a genuine technological breakthrough that attracted more capital than commercial returns could justify, the BIS notes, with each episode ending &#8220;with an eventual reversal in investment, inducing economy-wide recessions&#8221;.<\/p>\n<p>Compounding the danger are stretched share prices and opaque financing. <\/p>\n<p>The BIS highlights the spread of &#8220;circular financing&#8221;, in which chipmakers and cloud giants take equity stakes in AI labs that then commit to buying their chips and computing power, effectively recycling money back to the original investors as revenue. <\/p>\n<p>Much of the funding now flows through hedge funds and private credit vehicles that face lighter scrutiny than banks. <\/p>\n<p>According to Zhang Tao, the BIS chief representative for Asia and the Pacific, that reliance on non-bank channels means an AI downturn could unwind into a sharper, faster crash than a traditional banking crisis.<\/p>\n<h2>The hidden costs of data centres<\/h2>\n<p>Beyond financial markets, critics argue the true cost of the AI build-out is being obscured in plain sight. <\/p>\n<p>A central concern, examined by the Wall Street Journal, is how the technology giants account for their data centres. <\/p>\n<p>By assuming the expensive equipment inside them will stay useful for longer, firms can spread its cost over more years, lowering the depreciation charged against profits in any given period and making earnings look healthier than the underlying cash burn implies. <\/p>\n<p>However, the specialist chips at the heart of these facilities may become obsolete far faster than those extended schedules assume, leaving a gap between reported profits and economic reality, as well as a balance sheet more exposed than it appears should demand disappoint or a sizable need to replace hardware arise.<\/p>\n<div class=\"widget widget--type-image widget--size-fullwidth widget--animation-fade-in widget--align-center\" data-ratio=\"0.5615\">\n<div class=\"widget__wrapper\">\n<div class=\"widget__ratio widget__ratio--auto\">\n<div class=\"widget__contents\">\n<figure class=\"widget__figure\"><img decoding=\"async\" class=\"widgetImage__image\" loading=\"lazy\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/71\/79\/808x454_cmsv2_199c3d6d-ab4e-5060-a956-7c3c6797d9cd-9817179.jpg\" alt=\"FILE. Amazon Web Services data centre in Boardman, Oregon, Aug. 2024\"><figcaption class=\"widget__caption\"><span class=\"widget__captionWrap\"><span class=\"widget__captionText\">FILE. Amazon Web Services data centre in Boardman, Oregon, Aug. 2024<\/span><span class=\"widget__captionCredit\">AP Photo\/Jenny Kane<\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>The physical scale is staggering. <\/p>\n<p>Columbia University economist Stijn Van Nieuwerburgh estimates the build-out could cost in the region of $8 trillion (\u20ac7tn) over the next six years, financed in part through the kind of off-balance-sheet arrangements the BIS flagged.<\/p>\n<p>The costs are also no longer confined to corporate accounts. <\/p>\n<p>Some economists now warn of a so-called &#8220;third wave&#8221; of inflation, after the pandemic and tariffs, driven this time by the AI build-out. As chip manufacturers prioritise high-margin parts for AI servers, the resulting squeeze on memory and storage has rippled out to consumer electronics. <\/p>\n<p>For example, Apple raised prices on its MacBooks, iPads and other devices last week, citing an &#8220;extraordinary surge in demand for memory and storage&#8221; and saying it had &#8220;never seen a component price increase this much, this quickly&#8221;.<\/p>\n<p>The company&#8217;s shares fell around 6%, their worst day in over a year, as Microsoft, Nintendo and Sony have also made similar moves.<\/p>\n<p>Beyond hidden costs and inflationary pressures, where the strain may spread furthest is raw power.<\/p>\n<p>Goldman Sachs expects data centres to account for nearly half of the growth in US electricity demand by 2030, with consumer power prices forecast to rise around 6% a year through 2026 and 2027. <\/p>\n<p>The BIS itself notes that the build-out&#8217;s hunger for electricity is already pressuring prices and input costs, with potential spillovers to inflation, though it stresses, as do many economists, that AI could yet prove disinflationary if its promised productivity gains eventually arrive.<\/p>\n<\/div>\n<p>                                  Go to accessibility shortcuts<\/p>\n<div class=\"c-article-share-comment u-align-items-center u-display-flex\"><span class=\"c-article-share-comment__links u-align-items-center u-display-flex u-justify-content-center js-c-article-share-comment-share\"><span class=\"c-article-share-comment__label\">Share<\/span><\/span><span class=\"c-article-share-comment__label\">Comments<\/span><span class=\"c-article-share-comment__label c-article-share-comment__label--always\">Add Euronews on Google<\/span><\/div>\n<div id=\"adb-article-you-might-also-like\" class=\"perf-cv-auto c-article-you-might-also-like\">\n<h2 class=\"c-article-you-might-also-like__title\">\n        Read more<br \/>\n      <\/h2>\n<div 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m-modeXL-1\" data-nid=\"2904933\" data-cid=\"9813663\" data-part-label=\"Partner content\">\n<figure id=\"abe-2904933-label-pos1-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/36\/63\/480x270_cmsv2_390d96ac-9122-5e43-8988-c62a8ec649bb-9813663.jpg\" loading=\"lazy\" alt=\"A man walks past a monitor showing stock prices of companies on the Tokyo Stock Exchange, 23 June 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Markets<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    The investments that soared and slumped in the first half of 2026<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2905173-pos2-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2905173\" data-cid=\"9814876\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905173-label-pos2-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/48\/76\/480x270_cmsv2_261ba79e-8e8f-59ad-9b7f-cb0d57d88e37-9814876.jpg\" loading=\"lazy\" alt=\"Bulgarian migrants harvest flat nectarines, most of them destined for the German market, in Fraga, Spain, Thursday, 2 July 2020.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Economy<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Which jobs are most exposed to extreme heat in Europe?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto\">\n<ul id=\"adb-article-tags\" class=\"c-tags-list\">\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Risk assessment<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  AI<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Economic forecast<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  central banks<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Big Tech<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Investment<br \/>\n<\/section>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<aside class=\"o-article-newsy__aside\">\n<div class=\"c-ad-wrapper o-article-newsy__aside__content-1\" data-ad-name=\"adzone-halfpage\">\n<div class=\"c-ad c-ad-halfpage u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" 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class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/79\/94\/61\/480x270_cmsv2_97685693-5a62-5d65-b27e-71a7c38dd3de-9799461.jpg\" loading=\"lazy\" alt=\"Cascais\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Business<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Why Portugal is attracting the world&#8217;s super-rich<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904933-pos1-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2904933\" data-cid=\"9813663\" data-part-label=\"Partner content\">\n<figure id=\"abe-2904933-label-pos1-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/36\/63\/480x270_cmsv2_390d96ac-9122-5e43-8988-c62a8ec649bb-9813663.jpg\" loading=\"lazy\" alt=\"A man walks past a monitor showing stock prices of companies on the Tokyo Stock Exchange, 23 June 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Markets<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    The investments that soared and slumped in the first half of 2026<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2905173-pos2-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2905173\" data-cid=\"9814876\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905173-label-pos2-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/48\/76\/480x270_cmsv2_261ba79e-8e8f-59ad-9b7f-cb0d57d88e37-9814876.jpg\" loading=\"lazy\" alt=\"Bulgarian migrants harvest flat nectarines, most of them destined for the German market, in Fraga, Spain, Thursday, 2 July 2020.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Economy<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Which jobs are most exposed to extreme heat in Europe?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2905806-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2905806\" data-cid=\"9817479\" data-part-label=\"Partner content\">\n<figure id=\"abe-2905806-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/74\/79\/320x180_cmsv2_518ed09a-668c-5c2f-a90b-a8a50783f62d-9817479.jpg\" loading=\"lazy\" alt=\"FILE. The logo for British American Tobacco appears above a trading post on the floor of the New York Stock Exchange, Jul. 2017\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Lucky Strike maker BAT to axe 5,500 jobs worldwide in \u20ac695m cost drive<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904805-pos3-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2904805\" data-cid=\"9812928\" data-part-label=\"Partner content\">\n<figure id=\"abe-2904805-label-pos3-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/29\/28\/320x180_cmsv2_1015fdce-3a3a-5f19-b051-0eb7a1cb33a1-9812928.jpg\" loading=\"lazy\" alt=\"Paris city view (file photo)\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Where do workers lose the biggest share of their salaries in Europe?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2902192-pos4-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2902192\" data-cid=\"9811292\" data-part-label=\"Partner content\">\n<figure id=\"abe-2902192-label-pos4-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/79\/94\/61\/320x180_cmsv2_97685693-5a62-5d65-b27e-71a7c38dd3de-9799461.jpg\" loading=\"lazy\" alt=\"Cascais\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Why Portugal is attracting the world&#8217;s super-rich<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904933-pos5-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2904933\" data-cid=\"9813663\" data-part-label=\"Partner content\">\n<figure id=\"abe-2904933-label-pos5-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/81\/36\/63\/320x180_cmsv2_390d96ac-9122-5e43-8988-c62a8ec649bb-9813663.jpg\" loading=\"lazy\" alt=\"A man walks past a monitor showing stock prices of companies on the Tokyo Stock Exchange, 23 June 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    The investments that soared and slumped in the first half of 2026<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904959-pos6-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2904959\" data-cid=\"9813834\" data-part-label=\"Partner content\">\n<figure id=\"abe-2904959-label-pos6-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/53\/08\/22\/320x180_cmsv2_7d39bdc2-2a85-53fd-ae21-6868d20b2457-9530822.jpg\" loading=\"lazy\" alt=\"Trams make their way through the narrow streets of the Alfama district in Lisbon, Portugal,\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Which European cities require nearly 19 years of income to buy a home?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904959-pos1-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2904959\" data-cid=\"9813834\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Which European cities require nearly 19 years of income to buy a home?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904094-pos2-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-video the-media-object--has-related the-media-object--no-label\" data-nid=\"2904094\" data-cid=\"9809129\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Which European countries are the cheapest and most expensive?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904805-pos3-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2904805\" data-cid=\"9812928\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Where do workers lose the biggest share of their salaries in Europe?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2904812-pos4-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2904812\" data-cid=\"9813023\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Ferrari&#8217;s marketing boss quits after backlash over first EV<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2900768-pos5-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--no-label\" data-nid=\"2900768\" data-cid=\"9792642\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Dubai is training its private sector in agentic AI \u2013 here&#8217;s why<br \/>\n  <\/h3>\n<div class=\"the-media-object__quote\">Partner content presented by <strong>Dubai Chambers<\/strong><\/div>\n<\/div>\n<\/article>\n<div class=\"articleBody\" data-key=\"articleBody\">In its Annual Economic Report, published on Sunday, the Bank for International Settlements (BIS), known as the central bank for central banks, warned that the enormous spending on AI is accumulating financial vulnerabilities that could amplify any future shock and spread from markets into the wider economy.Presenting the findings, BIS general manager Pablo Hern\u00e1ndez de Cos said the message was one of &#8220;urgency&#8221;, with policymakers urged to act before any reversal makes the eventual adjustment more painful.At the core of the warning is the scale of the spending, despite massive investment having supported global growth over the past year.The five largest &#8220;hyperscalers&#8221;, the technology giants racing to build AI infrastructure, are on track to commit more than $1 trillion (\u20ac878bn) to AI-related investment across 2025 and 2026, a pace that is outstripping their earnings and free cash flow and pushing some to borrow heavily to keep up.The BIS suggests this race is fuelled by a belief that only a handful of dominant players will ultimately prevail, encouraging firms to pour money into projects whose returns remain deeply uncertain.Echoes of past maniasThe report sets today&#8217;s AI boom against a long historical lineage, from the canal mania of the 1830s and Britain&#8217;s railway mania of the 1840s to the electrification of the 1920s and the dotcom bubble.Each began with a genuine technological breakthrough that attracted more capital than commercial returns could justify, the BIS notes, with each episode ending &#8220;with an eventual reversal in investment, inducing economy-wide recessions&#8221;.Compounding the danger are stretched share prices and opaque financing.The BIS highlights the spread of &#8220;circular financing&#8221;, in which chipmakers and cloud giants take equity stakes in AI labs that then commit to buying their chips and computing power, effectively recycling money back to the original investors as revenue.Much of the funding now flows through hedge funds and private credit vehicles that face lighter scrutiny than banks.According to Zhang Tao, the BIS chief representative for Asia and the Pacific, that reliance on non-bank channels means an AI downturn could unwind into a sharper, faster crash than a traditional banking crisis.The hidden costs of data centresBeyond financial markets, critics argue the true cost of the AI build-out is being obscured in plain sight.A central concern, examined by the Wall Street Journal, is how the technology giants account for their data centres.By assuming the expensive equipment inside them will stay useful for longer, firms can spread its cost over more years, lowering the depreciation charged against profits in any given period and making earnings look healthier than the underlying cash burn implies.However, the specialist chips at the heart of these facilities may become obsolete far faster than those extended schedules assume, leaving a gap between reported profits and economic reality, as well as a balance sheet more exposed than it appears should demand disappoint or a sizable need to replace hardware arise.The physical scale is staggering.Columbia University economist Stijn Van Nieuwerburgh estimates the build-out could cost in the region of $8 trillion (\u20ac7tn) over the next six years, financed in part through the kind of off-balance-sheet arrangements the BIS flagged.The costs are also no longer confined to corporate accounts.Some economists now warn of a so-called &#8220;third wave&#8221; of inflation, after the pandemic and tariffs, driven this time by the AI build-out. As chip manufacturers prioritise high-margin parts for AI servers, the resulting squeeze on memory and storage has rippled out to consumer electronics.For example, Apple raised prices on its MacBooks, iPads and other devices last week, citing an &#8220;extraordinary surge in demand for memory and storage&#8221; and saying it had &#8220;never seen a component price increase this much, this quickly&#8221;.The company&#8217;s shares fell around 6%, their worst day in over a year, as Microsoft, Nintendo and Sony have also made similar moves.Beyond hidden costs and inflationary pressures, where the strain may spread furthest is raw power.Goldman Sachs expects data centres to account for nearly half of the growth in US electricity demand by 2030, with consumer power prices forecast to rise around 6% a year through 2026 and 2027.The BIS itself notes that the build-out&#8217;s hunger for electricity is already pressuring prices and input costs, with potential spillovers to inflation, though it stresses, as do many economists, that AI could yet prove disinflationary if its promised productivity gains eventually arrive.<\/div>\n<p>[analyse_source url=&#8221;https:\/\/www.euronews.com\/business\/2026\/06\/29\/the-ai-boom-propping-up-markets-could-trigger-the-next-crash-central-banks-warn&#8221;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/81\/71\/79\/1200x675_cmsv2_2a8ab975-6373-5333-a028-79ce650c548c-9817179.jpg&#8221;] No Comment Swiss yodellers rehearse in public fountains as Basel swelters Europe News MEPs blocked from inspecting Italy&#8217;s Albania migrant centre No Comment Thousands take part in New York Pride parade Europe News Eleven killed as parachute training aircraft crashes near Nancy No Comment Swiss yodellers rehearse in public fountains as Basel [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[226,36],"class_list":["post-2017977","post","type-post","status-publish","format-standard","hentry","category-international","tag-crawlmanager","tag-euronews-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2017977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2017977"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2017977\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2017977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2017977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2017977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}