Record-High Stocks Face Growing Risks

U.S. and European stocks are reaching record levels as investors pour money into artificial intelligence, but economists at the European Central Bank warn that the current rally could eventually give way to a sharp correction.

In a Monday blog post, ECB economists said historical examples of major technological shifts suggest that current stock valuations are likely to fall at some point.

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One possible scenario is that excessive optimism pushes AI-related stocks above their fundamental value before investor confidence fades. Even if today’s valuations accurately reflect AI’s potential to transform the economy and increase corporate profits, the economists said a correction could still follow.

AI Boom Echoes Earlier Technology Waves

The ECB analysis compares the current AI investment cycle with past periods of rapid technological change, including the 19th-century railway boom, the expansion of electricity and radio in the 1920s, and the rise of the internet in the 1990s.

As new technologies become more widely adopted, uncertainty can spread across the broader economy. A major setback in the technology could then increase investors’ risk concerns and put downward pressure on stock prices, even if corporate profits remain strong.

According to the economists, these cycles typically involve a boom followed by a correction, potentially followed by another period of growth. However, they stressed that the timing of such a downturn cannot be predicted in advance.

Europe Could Be Particularly Exposed

European retail investors could face significant losses because global index and pension funds have substantial exposure to the so-called “Magnificent 7” U.S. technology companies.

A severe market correction could also create broader financial risks through investment funds and potentially affect euro-area stability. The ECB economists warned that policymakers may have less room than during the dot-com crash to respond, with fewer options to cut interest rates or use fiscal measures to cushion the impact.

New Tools Aim To Improve Safety And Support Learning

OpenAI has launched ChatGPT for Teens, introducing additional safety measures and educational features following lawsuits and concerns over the impact of AI chatbots on young users.

The teen experience will include age-appropriate protections by default, based on OpenAI’s Under-18 Principles. Parents and guardians can also use existing family tools and parental controls to manage settings, receive safety notifications and set Quiet Hours.

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A Focus On Learning, Not Just Answers

For education, OpenAI is introducing Study Mode, which guides teenagers through problems with questions and step-by-step explanations instead of simply providing answers.

When the system detects that a student may be trying to use ChatGPT to cheat, homework reminders can encourage them to switch to Study Mode. Quizzes and visual learning tools will also be available, while parents can choose whether Study Mode is enabled by default.

However, questions remain over how effectively teenagers will be able to bypass these restrictions, particularly given their ability to work around parental controls and other digital safeguards.

Safeguards Arrive Years After ChatGPT’s Launch

ChatGPT launched in 2022 and has since grown to 900 million weekly users. The new protections are therefore arriving several years after the chatbot first became widely available to teenagers.

OpenAI is also partnering with CodeAI to help young people understand how AI works and how to use and question the technology responsibly. Meanwhile, its ChatGPT for Teachers program provides schools with institution-managed access and AI support.

New Rates Take Effect This Month

Peacock is increasing the price of every streaming plan, with the cheapest ad-supported Select tier rising from $7.99 to $8.99 per month.

The Premium plan with ads will cost $12.99, up from $10.99, while the ad-free Premium Plus tier is increasing from $16.99 to $19.99.

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The new prices take effect on August 18 for new and returning subscribers. Existing customers will see the increase on their first billing date after September 17. Annual subscribers and users with active promotions will keep their current rates until those plans or offers expire.

More Features, Higher Costs

Peacock said the changes will help it remain competitive while continuing to invest in content and the viewing experience.

In recent months, the platform has introduced features including an AI-powered “Bravoverse” vertical-video feed featuring shows such as “The Real Housewives” and “Vanderpump Rules.” It is also developing AI-powered vertical streaming for live sports.

The service has expanded into gaming as well, launching two mystery games developed with AI gaming startup Wolf Games.

Peacock Reaches 48 Million Subscribers

NBCUniversal recently announced a partnership with YouTube Premium that will make Peacock Premium available to U.S. subscribers from early 2027.

Launched in 2020, Peacock reported its first profitable quarter last month, with its subscriber base reaching 48 million. Growth was helped by the NBA playoffs, the FIFA World Cup and “Love Island.”

The latest increase is Peacock’s fourth in four years, following a $3 price rise in July 2025.

Apple’s reported camera-equipped AirPods are raising privacy concerns, but the technology may be designed more for AI assistance than recording people.

Cameras For Siri, Not Recording

Leaked footage from a macOS 26.7 release candidate reportedly shows a person wearing AirPods while asking Siri about a book. The video, discovered by researcher Aaron Perris, includes a reference to Visual Intelligence, suggesting the cameras could help Siri understand what users are looking at.

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Code found in the software also reportedly includes a “Hair Detected” warning, indicating that the cameras are positioned on the earbuds and need an unobstructed view.

According to Bloomberg’s Mark Gurman, the cameras would not be designed to take photos or record video. Instead, they would capture low-resolution visual information to help Siri respond to what the user sees.

What Could Users Do With Them?

The technology could have practical uses, from identifying objects and ingredients to providing directions while walking through an unfamiliar city. It also fits into Apple’s broader push to make AI available without requiring users to constantly reach for an iPhone.

Privacy Could Still Be A Problem

Reports suggest the AirPods would include an LED indicator showing when visual information is being shared with the cloud. While that would improve transparency, the small indicator may not be enough to reassure people who are uncomfortable around camera-equipped wearables.

That puts Apple in a difficult position. The company can control how the cameras function, but it has much less control over what people assume they are doing.

Apple has introduced a new fee structure for developers in the European Union, while making it easier to launch alternative app marketplaces as it seeks to address its ongoing disagreements with EU regulators.

New Fee Structure

Under the revised model, Apple will replace its per-install Core Technology Fee with a flat 5% commission on digital goods sold through apps distributed outside the App Store, including alternative marketplaces and the web.

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Fees for Apple’s own in-app purchases will fall from 30% to 26%, while developers eligible for programmes such as the App Store Small Business Program will continue to pay 15% in qualifying cases. Apps using alternative payment systems will pay a 20% commission, or 10% for developers covered by those programmes.

Developers will also have to stick with their selected payment setup for 12 months, whether they use Apple’s system, external payments or both.

Easier Access To Alternative App Stores

Apple is also relaxing requirements for developers seeking to operate alternative app marketplaces.

Previously, developers generally had to demonstrate substantial financial backing or meet specific requirements, including two years in Apple’s Developer Program and more than 1 million first-time annual EU installs.

The new rules offer additional ways to demonstrate financial stability, including being a public company, providing audited financial statements or having qualifying venture capital funding.

Apple’s latest changes follow years of disputes with the European Commission over its App Store terms. The company revised its EU fee structure last year after receiving a €500 million fine for violating the Digital Markets Act, with critics describing the resulting system as unnecessarily complex.

Cyprus’ gaming industry generated an estimated €3.2 billion in revenue in 2025, but most PC and console sales took place outside Steam.

Around €1.8 billion came from mobile games and €1.4 billion from PC and console titles. Only about €200 million of the latter was generated through Steam, meaning roughly 86% came from other channels.

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A Direct-To-Consumer Model

Steam gives developers access to a global audience but takes a standard 30% commission. Some Cyprus-based companies instead sell games and digital content through their own websites, payment systems and platforms.

This approach can reduce marketplace fees while giving companies more control over marketing and their relationship with customers.

A Growing International Hub

The Cyprus Video Game Industry Report 2025 identified 415 gaming companies operating on the island, employing more than 4,300 people. The number of companies grew from 169 in 2019 to 393 in 2024, while employment nearly tripled.

Much of the sector targets international players rather than Cyprus’ relatively small domestic market. The industry includes both local businesses and international gaming companies using Cyprus as a base.

The report says the 86% figure should be treated as an estimate, since direct sales are harder to measure than transactions through platforms such as Steam.

Still, the data shows that Cyprus has developed a sizeable international gaming sector with a business model that relies far less on traditional digital marketplaces.

Hotel unions SEK and PEO are calling for government action over the use of third-country workers supplied through labour agencies, warning that the practice is weakening employment protections in Cyprus’ hospitality sector.

Unions Seek Inspections

SEK secretary-general Michalis Frangou said some hotels were hiring workers through agencies rather than directly, allowing intermediaries to bypass established employment terms. He described the practice as a “slave market”.

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PEO hotel workers’ secretary-general Neophytos Timinis said similar cases had been reported, particularly in Ayia Napa and Paphos, with workers paid by the hour and without benefits provided under collective agreements.

The unions want targeted inspections of labour-supply companies and hotels, along with sanctions where violations are found. Further action could follow in September if the issue is not addressed.

Wider Concerns

The unions acknowledged staff shortages in hotels but said they did not justify bypassing employment rules. Similar concerns have also emerged in construction and catering.

Police have warned that vulnerable foreign workers face risks of exploitation and trafficking. Foreign nationals make up almost 40% of Cyprus’ hospitality workforce.

The labour ministry says around 8,000 inspections are carried out annually, while anonymous complaints can be submitted over exploitation, illegal employment and breaches of working conditions.

A navtex alert is expected to be issued soon to notify ships about seabed surveys between Cyprus and Crete ahead of cable-laying work for the Great Sea Interconnector.

Survey Plans Take Shape

President Nikos Christodoulides, French President Emmanuel Macron and Greek Prime Minister Kyriakos Mitsotakis have discussed the issue in recent days and agreed that the notice should be issued as soon as possible, according to Phileleftheros.

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The next step depends on an agreement between Meridiam, the interconnector’s majority shareholder, and French cable manufacturer Nexans. They must decide which companies will conduct the remaining surveys and establish a timetable for the work.

Greece’s transmission system operator Admie said around 60% of the seabed surveys have already been completed, leaving 40% in waters claimed by both Greece and Turkey.

Dispute Over Maritime Zones

Previous survey efforts have faced tensions. In 2024, Turkish naval vessels were deployed after the Italian research ship Ievoli Relume entered waters Ankara considers its own, prompting Greece to send naval vessels to the area.

At the centre of the dispute is the status of maritime zones generated by islands. Greece and Cyprus, citing the UN Convention on the Law of the Sea, maintain that islands generate their own exclusive economic zones (EEZs). Turkey, which is not a signatory to the convention, rejects that interpretation.

Turkey considers the waters beyond the 12-nautical-mile territorial limits of Cyprus and Crete to fall within its claims, while Greece and Cyprus argue that their EEZs meet south of Kastellorizo.

A proposed legal framework for implementing EU artificial intelligence rules in Cyprus could introduce fines of up to €35 million for the most serious violations. Public consultation on the legislation will remain open until September 16.

New Rules And AI Oversight

Two bills have been drafted to implement EU Regulation 2024/1689, which establishes harmonised AI rules across the bloc. Cyprus’ Office of the Commissioner for Electronic Communications and Postal Regulation (OCECPR) would become the main AI regulator, notifying authority and central point of contact.

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Feedback can be submitted through the e-consultation platform. A proposed AI Regulatory Sandbox would also give startups and researchers a controlled environment to test innovative AI applications.

For high-risk AI systems, OCECPR would work with authorities responsible for specific sectors. The Personal Data Protection Commissioner would oversee relevant systems involving personal data, while the Central Bank of Cyprus would supervise high-risk AI used by financial institutions.

Inspections And Penalties

Authorised officials could inspect business premises, request information and summon individuals to provide statements. Obstructing an official could become a criminal offence punishable by up to six months in prison, a fine of up to €10,000, or both. Administrative measures could include written warnings, orders to stop violations and the withdrawal or recall of AI systems.

Minor offences could result in fines of up to €30,000, rising to €60,000 for repeat violations. Serious breaches involving prohibited AI practices could carry penalties of up to €35 million or 7% of a company’s global annual turnover, whichever is higher.

Providers, authorised representatives, importers and distributors could face fines of up to €15 million or 3% of global turnover.

Complaints And Cyprus’ AI Strategy

Any individual or legal entity would be able to file a complaint about a suspected violation. Those who believe they have been harmed by an official decision could also appeal to the Administrative Court.

Cyprus recently unveiled its National AI Strategy 2032, which aims to modernise public administration, strengthen economic competitiveness and establish the country as a regional AI hub.

According to the strategy, the global AI market could grow from $189 billion in 2023 to $4.8 trillion by 2033, while AI and automation are expected to reshape businesses across a wide range of sectors.

Why Investors Need To Check The Company Behind Their Crypto Platform

Crypto users in Cyprus are being urged to verify exactly which company holds their assets after the EU’s Markets in Crypto-Assets Regulation (MiCA) transition period ended on July 1, 2026.

MiCA rules for crypto-asset service providers have applied since December 2024, but Cyprus allowed companies operating under its previous national framework to continue temporarily. CySEC required providers wishing to remain in the market to apply by February 27, 2026.

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The end of the transition means that appearing on an old national register is no longer enough. Investors must check the specific legal entity providing the service and the activities it is authorised to perform.

Two Regulatory Routes

CySEC maintains separate registers for providers authorised under Article 63 and companies using the Article 60 notification route.

The lists should not simply be treated as a count of licensed crypto exchanges. Providers have different regulatory statuses and may be authorised for different services, including custody, transfers, exchanges or operating trading platforms.

Companies authorised elsewhere in the EU can also serve Cypriot customers through MiCA passporting. Investors should therefore check the wider ESMA register.

Familiar Brands Can Still Be Used In Scams

MiCA authorisation applies to a specific legal entity, not automatically to every website, subsidiary or service using the same brand. Fraudsters can copy a legitimate company’s name, logo and licence number while changing its website or payment details.

The regulatory transition creates another opportunity for scammers. They can imitate legitimate notices about account closures or transfers and claim that customers must urgently move their assets to a new “regulated” platform.

In its July announcement, CySEC warned that customers using unauthorised providers do not receive MiCA protections and advised investors to verify providers through ESMA.

A Wider European Shake-Up

The changes affect the broader European crypto market. VASPnet estimated that more than 1,700 unlicensed crypto companies could face closure, relocation or restructuring after the transition period.

ESMA’s register contained 323 authorised providers at the end of July, while TRM Labs identified 1,343 operating providers in the European Economic Area on July 1, including 281 with MiCA authorisation. The different figures reflect different methodologies, but point to a substantial number of providers operating without the new authorisation.

ESMA instructed unauthorised companies to stop accepting new EU customers, opening accounts and marketing their services, while allowing limited activity needed for an orderly withdrawal.

What Investors Should Check

MiCA introduces common requirements for areas such as governance, disclosures and safeguarding client assets, but it does not make crypto investments risk-free.

For Cyprus users, the key questions are which legal entity provides the service, what it is authorised to do and whether the website or contact details are genuine.

Requests to transfer assets urgently, pay recovery fees, reveal private keys or install remote-access software should be treated as red flags. MiCA may bring greater clarity to the market, but the transition has also created a new opportunity for criminals to exploit a very real regulatory change.