central banks

The European Central Bank has warned that there is a risk of a "bubble" in artificial intelligence-related stocks, which could burst suddenly if investors' optimistic expectations are disappointed. It is understood that the ECB issued the warning in its semi-annual financial stability report released on Wednesday. The report listed a variety of risks, including war, tariffs and banking system vulnerability. The ECB noted that stock markets, particularly in the United States, have become increasingly dependent on a handful of companies seen as beneficiaries of the AI boom. The ECB said, "This concentration of a few large companies has triggered a bubble in the prices of AI-related assets...