News Summary

• Bank of England warns of growing risk that tech stock prices pumped up by the AI boom could burst.
• IMF Managing Director Kristalina Georgieva says financial conditions could “turn abruptly” The most optimistic projections about the fruits of generative AI products foresee a transformation of the economy, leading to annual productivity gains that have not been seen since the reconstruction of Europe after World War II.
• At the lower end, economist Daron Acemoglu of the Massachusetts Institute of Technology has predicted a “nontrivial but modest” U.S. productivity gain of just 0.7% over a decade.