
The Bank of England reports that stock market valuations in the United States are nearing the highest levels since the dot-com bubble, and in the United Kingdom since the global financial crisis, raising the possibility of a significant correction in the shares of technology companies, particularly those specializing in artificial intelligence.
Technology giants have made substantial investments in artificial intelligence in recent months, which are disproportionate to the profits generated, fueling market fears of a possible ‘bubble’ (excessive rise in stock prices) similar to what afflicted Internet companies in the 1990s and 2000s.
The Bank of England announced today a reduction in the capital requirements for the seven largest banks in the country, marking the first decrease since 2015.
The financial stability report confirmed that Barclays, HSBC, Lloyds Banking Group, NatWest Group, Santander UK, Standard Chartered, and Nationwide—which represent about 75% of the country’s banking system—have maintained their ability to support the economy in future challenging scenarios, as demonstrated in their stress tests, warranting the reduction in capital requirements.



