Governments are becoming increasingly skeptical of foreign takeovers of domestic businesses and are focusing more on greenfield projects instead. A recent study analyzing the investment choices of multinational companies in Europe shows that companies often prefer to buy existing businesses in regions with weaker institutions and less innovation in order to reduce risk. However, the most innovative and efficient companies prefer to invest in regions with strong institutions and high innovation capacity when building new businesses. This highlights the importance of building a strong local environment with good infrastructure, skilled workers, and a supportive regulatory framework in order to attract high-quality foreign investments.
Belgium, Jordan, Luxembourg, Poland, Switzerland, Viet Nam | Financial services
Greenfield FDI or Acquisitions? How good regional institutions can deliver the best of both worlds in a turbulent world economy
Regional governments are increasingly reluctant to allow foreign takeovers of their businesses and are instead focusing on attracting foreign companies to build new facilities, known as greenfield investments. The challenge lies in creating an environment that welcomes investment while safeguarding government interests and managing potential risks. Governments are becoming more cautious due to concerns about job loss, factory closures, and foreign companies gaining too much power. Additionally, there are worries about the social and political impact of foreign takeovers in critical industries. To address these concerns, governments are acquiring more power to review deals and protect national security. On the other hand, governments are actively seeking to attract foreign companies for greenfield investments, as these projects stimulate economic growth. The key question is how to protect local/regional interests while attracting investments. A recent study reveals that multinationals often choose to buy existing businesses in regions with weaker institutions and less innovation to reduce risk. However, the most innovative and efficient companies prefer to invest in regions with strong institutions and high innovation capacity. Policymakers must understand how different businesses interact with the local environment and work to improve infrastructure, skilled workforce, and regulatory frameworks to attract high-quality foreign investments and foster economic growth.
Germany, Italy, Switzerland, Viet Nam | Financial services
How regions can manage foreign direct investment in a turbulent world
Bitcoin's price has surged since Trump's election due to several factors. Trump has shown support for Bitcoin, pledging to make the US the "crypto capital of the planet" and proposing a Bitcoin strategic reserve. Other Trump-aligned politicians are also jumping on the Bitcoin bandwagon, proposing bills and discussing strategic reserves in various states. Additionally, the expectation of the US Federal Reserve printing more money to finance the growing national debt has led many to view Bitcoin as a hedge against inflation. Furthermore, the Trump administration is likely to offer more regulatory clarity for the crypto industry, and greater institutional adoption by financial investment advisories and banks is also driving up the price of Bitcoin.
Financial services
Bitcoin’s price has surged since Trump’s election – here’s why
Japanese scientists are being written out of the history of AI, despite their pioneering contributions to the field. In the 1960s and 1970s, researchers such as Shun’ichi Amari and Kunihiko Fukushima made significant advancements in neural networks and deep learning, laying the foundations for contemporary AI. However, the standard account of AI history is dominated by North American perspectives, particularly from scientists like John Hopfield and Geoffrey Hinton, who were recently awarded the Nobel Prize in physics. This one-sided narrative overlooks the contributions of Japanese researchers and risks distorting the true history of AI.
Japan
Japanese scientists were pioneers of AI, yet they’re being written out of its history
Some older individuals have expressed a sense of being tired of life, feeling that living has become burdensome. This phenomenon, known as "tiredness of life," is distinct from depression or anxiety and is not always accompanied by distress. The UK assisted dying debate has brought attention to this issue, with concerns that legalizing assisted dying could put pressure on vulnerable individuals. Countries like the Netherlands and Belgium have already extended euthanasia to non-terminal conditions, including tiredness of life. It is important to openly discuss and consider the experiences of older people in the debate on assisted dying.
‘I couldn’t care less if I saw another sunrise’ – what older people who are ‘tired of life’ can tell us about the assisted dying debate
European security will need to adapt to the reality of a second Donald Trump presidency. European leaders may have to shift their focus from shared democratic values to practical, transactional politics. The challenge is compounded by the rise of resurgent strongman politics in Europe, characterized by pro-authoritarianism and anti-immigration sentiment. Trump's re-election has accelerated the debate on European defense spending and coordination, as the US turns its attention towards competition with China. However, with the rise of populism and authoritarianism in Europe, along with ongoing conflicts in Ukraine and potential flashpoints in Transnistria and Kosovo, European unity and stability in this new world remains uncertain.
Can European security be “Trump-proofed”?
Multigenerational living, which was common throughout most of human history, has become rare in Western societies due to the influence of single-family housing patterns promoted in the early 20th century. However, this fragmented way of living has significant social and economic costs, such as the increased risk of social isolation for seniors and the high cost of childcare. Many American families struggle to manage the costs of housing, childcare, and eldercare, often going into debt and facing long-term consequences. Recognizing the value of multigenerational living and implementing policies that support it can lead to more sustainable and interconnected communities.
Policies for Housing With Heart
The newly elected government in the Indian Union Territory of Jammu and Kashmir faces the challenge of addressing the region's environmental issues. In recent years, rising temperatures, receding glaciers, and environmental degradation caused by urbanization have made the region more vulnerable. However, during the election campaign, the major political parties did not prioritize environmental issues. The National Conference (NC), which now forms the government, included vague environmental pledges in its manifesto. The previous governments, including the NC and the People's Democratic Party (PDP), did not make significant progress in addressing environmental concerns. The current government's approach to environmental issues remains uncertain.
Pakistan
Can Kashmir’s new government tackle environmental issues?
AI risks for businesses include the potential for sensitive data to be compromised and the dangers of relying too heavily on AI output without proper evaluation and control. Kristian Hammond, a computer science professor and director of the Center for Advancing Safety of Machine Intelligence at Northwestern University, highlights the need for businesses to be proactive in managing these risks. Leaders and employees can play around with AI tools, but should not rely solely on them. Case in point, using generative AI as a brainstorming tool is beneficial, but depending on its output without evaluating its accuracy can be risky. It's important to be cautious and avoid ignoring mistakes for the sake of speed when incorporating AI into business processes.
Podcast: The AI Risks Your Business Should Avoid
AI is being used in various ways in cities across the UK, often without people realizing it. For example, self-driving cars are being tested on UK roads, while traffic lights are using AI to optimize traffic flow and reduce emissions. Lampposts are equipped with AI-enabled cameras and sensors for various purposes, such as measuring air quality and capturing data for analysis. AI is also being used in billboards to adapt ads to the local context. Additionally, AI is being employed in street sensors embedded in pavements and in the sky for trials with delivery drones.
Five ways you might already encounter AI in cities (and not realise it)
Artificial intelligence (AI) is impacting workers, labor trends, and the economy. The Jobs in the Age of AI event discussed the extent to which AI will affect existing and future jobs. Panelists shared real-time data and research on the impact of AI on employment. Keynote speaker Carl Benedikt Frey discussed how AI is changing the skills needed for jobs. Although AI has advanced in areas like chatbots, in-person communication and creativity are still valuable skills that cannot be easily automated.
Bonus Episode: Lessons From Jobs in the Age of AI
President-elect Donald Trump's focus on ramping up fossil fuel production in the United States has led some critics to question if the country is on its way to becoming a petrostate. While the US doesn't fit the classical definition of a petrostate due to its diverse economy and private ownership of wealth generated by fossil fuel production, experts argue that the US does exhibit petrostate-like behavior in terms of inaction on climate change and conducting foreign policy as a leading oil and gas exporter. Trump's presidency will put competing interests to the test in preventing the US from becoming overly reliant on a single commodity.
Trump's ‘Energy Dominance’ Agenda Sounds Like a Petrostate Plan to Some - Inside Climate News
France is making a bid of €625 million ($653 million) for Atos SE's advanced computing assets, including quantum technology and artificial intelligence. This move demonstrates France's commitment to protecting critical technologies and ensuring technological independence. It also reflects a broader trend in Europe of treating advanced computing and quantum technologies as strategic assets that require national control. Atos's financial struggles and asset sales highlight the high-stakes competition for leadership in quantum and AI. The French government's bid includes Atos's supercomputers, which play a crucial role in various industrial uses. This bid is part of France's strategy to safeguard technologies related to defense, energy, and national security.
France
France Bids €625 Million for Atos’s Computing Unit, Including Quantum Tech
The article discusses 10 trends that will impact 2025. These trends include the potential impact of Trump's presidency on international relations, the ability of new leaders to meet voters' expectations, increasing geopolitical tensions, potential tariffs on China affecting global trade, China's leadership in clean-tech, challenges of reducing deficits while increasing defense budgets, the aging population of leaders, the need for AI to deliver results to retain investor interest, and the potential for AI to transform industries.
Financial services
Uncertainty ahead: 10 trends that will impact 2025
Renowned mathematician and physicist, Roger Penrose, seamlessly merged work and play throughout his life. His serious scientific work and recreational mathematics were both driven by a sense of simple, elegant beauty. Penrose's fascination with patterns, shapes, and unexpected simplicity intertwined with his peer-reviewed papers and puzzles. He realized that work and play go hand in hand, and he often found joy and wonder in both. This integration of creativity and intellectual pursuit led Penrose to make groundbreaking contributions in relativity research, puzzles, and the theory of "conformal cyclic cosmology." Recreational mathematics and theoretical physics rely on the same concepts, highlighting the power of creative inspiration in intellectual pursuits.
When Work Is Play
OpenAI has introduced its latest AI models, o1-preview and o1-mini, which demonstrate improved reasoning capabilities. These models utilize "chain-of-thought reasoning," which simulates human problem-solving by breaking complex tasks into simpler sub-tasks. Chain-of-thought reasoning has been explored by various research groups in recent years. While the release of these models is exciting, concerns have been raised regarding their novelty, efficacy, and potential risks. The exact methodology employed by OpenAI is unknown, and the lack of transparency surrounding the self-verification process raises questions about the model's functioning and potential for producing flawed information. Additionally, the potential misuse of these models poses risks, emphasizing the need for stringent safeguards.
AI that mimics human problem solving is a big advance – but comes with new risks and problems
The European Coffee Symposium highlighted the coffee sector's resilience and the importance of innovation amid macroeconomic challenges. Key trends include the rise of Ready-to-Drink (RTD) coffee, biodegradable capsules, and health-focused alternatives, catering to changing consumer preferences. However, maintaining execution excellence is crucial as high coffee prices and inflation pressure margins. The sector's complexity necessitates efficient operations and strong partnerships, with successful players investing in facilities and technology to deliver high-quality products. Capital investment remains essential for innovation and growth in this evolving landscape.
Ethiopia | Financial services
Innovation abounds in the coffee sector: Capital access and strategic foresight are key for “black gold” winners
Geopolitical conflicts, supply chain disruptions, and political uncertainties are impacting the global economy and creating challenges for policymakers. Moves towards friendshoring and nearshoring address local concerns about globalization but raise the risk of trade wars, which can have a high cost and undermine long-term global growth. Increasing trade restrictions could reduce global economic output by $7.4 trillion. Tariffs and trade wars as policy tools, like in the case of the US-China trade war, disrupt supply chains, raise costs, and lead to economic damage for all involved. To promote stability and sustainable growth, policymakers should focus on diversifying supply chains, promoting energy independence, enhancing global cooperation, and encouraging private-public partnerships. Failure to address these issues could result in a prolonged global recession and negative impacts on emerging economies.
Financial services
Rethinking trade and cooperation in an era of uncertainty to navigate global shocks
A new report from the World Economic Forum and PwC provides a practical guide to implementing and scaling generative AI (GenAI) tools within organizations. The guide is based on the experiences of more than 20 early adopters and offers a framework that organizations can adapt to their own needs. The framework includes elements focused on enabling GenAI and engaging workforces. The report emphasizes the importance of engaging the workforce through culture and change management, as well as equipping employees with the necessary skills for the practical application of GenAI. Additionally, the report highlights the need for a GenAI vision and strategy aligned with broader digital strategies and compliance with regulations to maintain trust.
AI at work: A practical guide to implementing and scaling new tools
Generative AI is being adopted by organizations for workforce augmentation and productivity improvement. Data-driven organizations are better positioned to take advantage of GenAI due to their existing infrastructure and data quality. Organizations are scaling GenAI carefully, testing solutions in small groups before wider implementation. There is a strong awareness of risks related to data breaches, privacy violations, and biases. GenAI is improving productivity and the quality of work but organizations struggle with how to utilize freed-up time. Employees have concerns about accuracy, bias, and job displacement. Change management and leadership are crucial, and most organizations don't know the exact percentage of their workforce using GenAI. Few organizations have developed a sustainable AI strategy.
Generative AI and the workforce: 10 big trends we're seeing right now