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EMERGING MARKETS: Global News: October 15

EMERGING MARKETS
  • ISRAEL (MNI) – Israeli broadcaster KAN reporting that PM Benjamin Netanyahu and Defence Minister Yoav Gallant have agreed on a response to the Iranian missile strikes on Israel. The article claims that "full agreements were reached on the course of action against Iran, the apparent timing and the strength of the response", with full security cabinet approval the final step required before any retaliation takes place. A more limited strike on the Iranian military would likely lean in a less escalatory direction than one on oil or nuclear sites.
  • US – Biden administration officials have discussed capping sales of advanced AI chips from Nvidia and other American companies on a country-specific basis, people familiar with the matter said, a move that would limit some nations’ artificial intelligence capabilities. The new approach would set a ceiling on export licenses for certain countries in the interest of national security, according to the people.
  • US – The rise of the private credit market may lead to less systemic risk in the US financial system despite a lack of political appetite for increasing bank capital requirements, Federal Reserve Bank of Minneapolis President Neel Kashkari said. “It’s scary at some level, because it’s exploded to a trillion dollar plus market fairly quickly,” Kashkari said, but “these private credit vehicles are typically levered one to one, so it’s much less leverage.”
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  • ISRAEL (MNI) – Israeli broadcaster KAN reporting that PM Benjamin Netanyahu and Defence Minister Yoav Gallant have agreed on a response to the Iranian missile strikes on Israel. The article claims that "full agreements were reached on the course of action against Iran, the apparent timing and the strength of the response", with full security cabinet approval the final step required before any retaliation takes place. A more limited strike on the Iranian military would likely lean in a less escalatory direction than one on oil or nuclear sites.
  • US – Biden administration officials have discussed capping sales of advanced AI chips from Nvidia and other American companies on a country-specific basis, people familiar with the matter said, a move that would limit some nations’ artificial intelligence capabilities. The new approach would set a ceiling on export licenses for certain countries in the interest of national security, according to the people.
  • US – The rise of the private credit market may lead to less systemic risk in the US financial system despite a lack of political appetite for increasing bank capital requirements, Federal Reserve Bank of Minneapolis President Neel Kashkari said. “It’s scary at some level, because it’s exploded to a trillion dollar plus market fairly quickly,” Kashkari said, but “these private credit vehicles are typically levered one to one, so it’s much less leverage.”