Tuesday, December 2, 2014

Russia foresees recession in 2015; Nikkei at seven-year high; Hawking sees AI as threat to human race

1 Russia foresees recession next year (San Francisco Chronicle) The Russian government has acknowledged that the country will fall into recession next year, battered by the combination of Western sanctions and a plunge in the price of its oil exports. The news caused the stock market to drop and pushed the ruble to a fresh record low against the dollar.

The economic development ministry has revised its GDP forecast for 2015 from growth of 1.2 percent to a drop of 0.8 percent. Russian households are expected to take hit, with disposable income seen declining by 2.8 percent against the previously expected 0.4 percent growth.

Russia's economic outlook is at the mercy of the global market for oil, a key export that finances the bulk of the state budget. Sanctions over Moscow's role in eastern Ukraine are making things worse, hurting Russian banks and investment sentiment in particular. The ruble has dropped by more than 40 percent this year as the economic troubles mounted. That in turn risks spawning more problems, such as a spike in inflation that would pinch consumers.

While Russia's troubles could do some economic damage to Europe, they are unlikely to have much impact on the US economy, the world's largest. Russia is the 28th-biggest market for the US, absorbing $11.1 billion worth of US goods last year.

Russia's economic stability is important for the region. It is a major trading partner for Western Europe, selling raw materials and oil and gas to the West and importing consumer goods and foodstuffs. European agricultural producers reported big losses following the Kremlin's ban on some imports. A weaker economy and a weaker ruble would also mean that fewer Russians will be traveling abroad and spending their money there.


2 Nikkei at seven-year high (BBC) Japan's Nikkei closed at a fresh seven-year high on Tuesday as investor sentiment was buoyed by talk of the Bank of Japan (BoJ) buying stocks. The benchmark Nikkei 225 closed up 0.4% at 17,663.22 points. Earlier, the index had fallen after Moody's Investment Service cut Japan's credit rating by one notch to A1 from Aa3.

oody's move underlined concerns over Japan's economy after an increase in the national sales tax was delayed. But analysts said the weaker yen, together with the possible move by the BoJ, was continuing to support investor sentiment.


3 Hawking sees AI as threat to humanity (Stuart Clark in The Guardian) The development of artificial intelligence could spell the end of the human race, Professor Stephen Hawking has said. The famous astrophysicist said he believed technology would eventually become self-aware and supersede humanity, as it developed faster than biological evolution.

Hawking said: “The primitive forms of artificial intelligence we already have, have proved very useful. But I think the development of full artificial intelligence could spell the end of the human race.”

Hawking – who as a result of his motor neurone disease is almost totally paralysed – also spoke of how he had received a “life-changing upgrade” to the computer software that allows him to communicate. Hawking now uses a system that incorporates predictive text, allowing him to type twice as quickly as before and send emails ten times faster. “Medicine has not been able to cure me, so I rely on technology to help me communicate and live,” he said.

Hawking has been in partnership with Intel for over 25 years. His MND is related to amyotrophic lateral sclerosis. He was diagnosed in 1961, when he was 21, and given just two years to live. He turned 72 on 8 January 2014.

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