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US Executive Order Targets Ideologically Biased AI Amid Global Tech Rivalry

Global AI Rivalry Intensifies

Recent disclosures from DeepSeek, Alibaba, and other Chinese technology firms have raised pressing concerns about AI models engineered to avoid criticism of the Chinese Communist Party. Western experts observed that these tools are designed to mirror Beijing’s narrative, a finding that has profound implications for the ongoing ideological and technological contest between China and the West.

Federal Mandate Against Partisan Models

In a decisive policy move, President Donald Trump signed an executive order banning the federal government from procuring AI systems deemed to promote partisan biases. The order specifically targets technologies influenced by ideologies that encompass diversity, equity, and inclusion, labeling such approaches as inherently distorting to data quality and accuracy. This directive emphasizes that only AI models that adhere to rigorous standards of historical accuracy, scientific inquiry, and impartiality may be considered for government contracts.

Pressure on Developers and Industry Implications

Industry leaders worry that these measures will compel AI developers to reshape their training data and model outputs to secure lucrative federal partnerships. The looming risk is a chilling effect on innovation, as firms may feel compelled to conform to the administration’s ideological preferences rather than pursue objective technological advancements. This concern is underscored by recent multi-million dollar contracts awarded by the Department of Defense to AI frontrunners, signaling a complex interplay between national security imperatives and ideological oversight.

The Objectivity Dilemma

Experts note that the pursuit of pure objectivity in any AI system remains a challenging, perhaps unattainable, goal. With language and data inherently colored by subjective influences, determining what truly constitutes unbiased or neutral content is a challenging task. Despite these challenges, the executive order’s definitions of “truth-seeking” and “ideological neutrality” aim to set a benchmark—even if the standards themselves are open to interpretation.

Navigating a Crossroads of Technology and Ideology

As policies and market dynamics converge, the United States is steering its AI strategy toward heightened competition with China, while grappling with the realities of ideological influence in technological design. The unfolding scenario presents a critical juncture: will AI companies align their models to secure governmental support at the cost of unbiased innovation, or can a balanced synthesis be achieved in the era of geopolitically charged tech development?

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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