Concerns about weak lending standards in credit markets have resurfaced after the recent collapses of U.S. auto parts supplier First Brands and car dealership Tricolor
International News via Reuters:
Fears of a risky bubble emerging in the private credit market are overblown, but there are signs of lending standards weakening in the market for lending to large companies, executives from the industry said on Tuesday.
“The risk is when you have too much leverage and not enough liquidity you tend to have problems and I don’t see us having that right now even in private credit,” Anne Walsh, chief investment officer at Guggenheim Partners told the Future Investment Initiative (FII) conference in Riyadh.
Walsh, however, said there were signs of overleverage and reduced loan covenants in the market for lending to large companies, where competition is fierce.
Concerns about weak lending standards in credit markets have resurfaced after the recent collapses of U.S. auto parts supplier First Brands and car dealership Tricolor, with investors focusing on possible risks in a less-regulated market where companies have borrowed heavily from non-banks.
Executives in Riyadh dismissed these concerns, saying those collapses had little to do with private credit. Walsh said the industry enjoyed “lots of tailwinds” including U.S. fiscal and monetary stimulus and the AI investment boom.
However, some acknowledged there were certain problems appearing.
Competition for lending to large companies has squeezed private credit margins substantially over the last few years, with signs of “froth” emerging, said David Manlowe, CEO of Benefit Street Partners, a credit manager owned by Franklin Templeton.
“There will be segments of private credit that will prove to be in a bubble today, but overall we would all agree it’s probably not bubbly,” he said, shortly after a poll of the audience found 43% believed private credit was in a bubble and 57% did not.
Robert O’Leary, co-CEO at Oaktree Capital Management, said the artificial intelligence boom was creating an economy-wide bubble and direct lending was exposed because of the “preponderance” of loans to software companies. But the asset class had lots going for it too, he added.
Reporting by Tommy Reggiori Wilkes, Editing by Iain Withers
The deal removes a major constraint on raising capital for OpenAI that has existed since 2019
International News via Reuters:
Microsoft and OpenAI reached a deal to allow the ChatGPT maker to restructure itself into a public benefit corporation, valuing OpenAI at $500 billion and giving it more freedom in its business operations.
The deal removes a major constraint on raising capital for OpenAI that has existed since 2019, when it signed a deal with Microsoft that gave the tech giant rights over much of OpenAI’s work in exchange for costly cloud computing services needed to carry it out. As its ChatGPT service exploded in popularity, those limitations became a notable source of tension between the two companies.
Microsoft will still hold a stake of about $135 billion, or 27%, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit, the companies said. The Redmond, Washington-based firm has invested $13.8 billion in OpenAI, with Tuesday’s deal implying that Microsoft had generated a return of nearly ten times its investment.
Microsoft shares rose 2.5%, sending its market value above $4 trillion again.
The deal keeps the two firms intertwined until at least 2032 with a massive cloud computing contract and with Microsoft retaining some rights to OpenAI products and AI models until then even if OpenAI reaches artificial general intelligence (AGI), the point at which AI systems can match a well-educated human adult.
With more than 700 million weekly users as of September, ChatGPT has exploded in popularity to become the face of AI for many consumers after OpenAI’s founding as a nonprofit AI safety group. As the company grew, the Microsoft deal constrained OpenAI’s ability to raise funds from outside investors and secure computing contracts as the crush of ChatGPT users and its research into new models caused its computing needs to skyrocket.
“OpenAI has completed its recapitalization, simplifying its corporate structure,” Bret Taylor, the OpenAI Foundation’s board chair, said in a blog post. “The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.”
Microsoft’s previous 2019 agreement had many provisions that rested on when OpenAI reached that point, and the new deal requires an independent panel to verify OpenAI’s claims it has reached AGI.
“OpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight. But overall, this structure should provide a clearer path forward for innovation and accountability,” said Adam Sarhan, CEO of 50 Park Investments.
Gil Luria, head of technology research at DA Davidson, said the deal “resolves the longstanding issue of OpenAI being organized as a not-for-profit (organization) and settles the ownership rights of the technology vis-à-vis Microsoft. The new structure should provide more clarity on OpenAI’s investment path, thus facilitating further fundraising.”
Microsoft also said that it has secured a deal with OpenAI where the ChatGPT maker will purchase $250 billion of Azure cloud computing services. In exchange, Microsoft will no longer have a right of first refusal to provide computing services to OpenAI.
Microsoft also said that it will not have any rights to hardware produced by OpenAI. In March, OpenAI bought longtime Apple design chief Jony Ive’s startup io Products in a $6.5 billion deal.
Reporting by Deborah Sophia in Bengaluru and Stephen Nellis in Washington; Editing by Devika Syamnath and Franklin Paul
Bermuda’s leading re/insurers’ contribution to local economy tops $1.2bn for first time
John Huff, President and CEO of the Association of Bermuda Insurers and Reinsurers. Photo: ABIR
Member companies of the Association of Bermuda Insurers and Reinsurers (ABIR) employed a record number of Bermudians in 2024, as well as a new high annual contribution of $1,210,566,922 to Bermuda’s economy.
These numbers were among the highlights of ABIR’s 20th Annual Economic Substance Survey, which saw unprecedented participation with 31 member companies responding. ABIR represents Bermuda’s leading international re/insurers, collectively the largest private-sector employers on the island.
Last year, the group employed 1,472 Bermudians, spouses of Bermudians, or permanent resident certificate holders (PRCs), representing a 46% increase in the space of ten years.
Even as the Bermudian proportion of the full-time workforce grew to nearly 70%, overall employment among ABIR members remained flat year-over-year at 2,121 employees, amid uncertainty over the impact of the Corporate Income Tax (“CIT”) and Bermuda’s high cost of doing business, relative to other jurisdictions. The five largest employers in the survey provided a combined total of more than 900 jobs.
The survey details the on-island spending of ABIR companies in areas including employment, business services, travel, construction/real estate and charitable donations, and 2024 was the first year the total has exceeded $1.2 billion. Over the past 20 years, ABIR members have led the local economy with an aggregate economic contribution amounting to $16.5 billion.
Total salary and benefits paid to employees in Bermuda in 2024 was the highest level recorded in the survey’s history, highlighting ABIR members’ importance to the island’s economy as the leading providers of stable, high-earning careers for Bermudians.
Record high spending on goods and services from local businesses rippled through the economy, benefiting taxi drivers, restaurants, caterers, hotels, legal and accountancy firms, IT service providers, telecommunications firms, recruitment agencies, consultants, realtors, commercial property owners and construction firms, and service providers among others.
Additionally, ABIR members have contributed significantly to the Bermuda Government revenues that sustain public services, through the payroll tax, fees, and duties they have paid during the group’s 32-year history. This contribution to public finances has risen considerably this year, as ABIR members are also projected to be the largest payers of the CIT, a 15% tax on the net income of multinational companies with revenues of more than 750 million euros. The full impact of the new tax for ABIR members in scope will become clearer when Bermuda’s Qualified Refundable Tax Credits regime is finalised.
“ABIR is proud that our contributions continue to lead the Bermuda economy,” said Mark Cloutier, Aspen Executive Chair and ABIR Chair. “To see our members employing a record number of Bermudians is especially pleasing. Stable and rewarding jobs for local people represent probably the most meaningful measure of any industry’s economic value to a community. The $16.5 billion of on-island spending by our members, as detailed in the 20 years of ABIR’s Economic Substance Surveys, underscores our industry’s longstanding commitment to Bermuda.”
Mark Cloutier, Aspen Executive Chair and ABIR chair. Photo: ABIR
Highlights of ABIR members’ economic contributions in 2024 include:
• $117.4 million spent on business services, including legal, accounting, actuarial, temporary, information technology and other consulting services
• $99.4 million on construction, real estate, housing and office space
• $28.2 million spent on travel and entertainment in Bermuda, including hotels, airfares, restaurants, taxis and catering, which is a 38% increase from the previous year, fueling jobs in the hospitality industry
• $7.3 million in donations to Bermuda charities plus $1.25 million for Bermudian student scholarships
The survey found ABIR members allocated more than $1.25 million to scholarships for Bermudian students on the island in 2024, in addition to nearly 100 paid internships last summer.
ABIR’s efforts to attract local talent to the re/insurance industry also include sponsorship of Special Topics in Insurance, a free, foundational course, offered in partnership with Bermuda College and the Maurice R. Greenberg School of Risk Management, Insurance and Actuarial Science at St. John’s University. ABIR has sponsored the course for the past five years.
“ABIR members look forward to gaining greater clarity on the full impact of the CIT, as the Tax Reform Commission’s recommendations on reforms including tax credits are considered by Parliament,” said John Huff, ABIR’s President and CEO. “Reducing Bermuda’s cost of doing business is critical to create a more favourable environment for job retention and job creation for Bermudians.”
Latest phase of ‘Stop the Violence’ campaign features interviews with young Bermudians, and a focus on addressing mental health
Shiloh Todd and Adrian Roach in the ‘Echos Like Us’ campaign interviews.
Growing from boy to man after losing a father to violence.
Drawn to a dark path, until boxing provided new purpose.
…just two of the stories told in a new online series of interviews with young Bermudian men who have faced loss, violence and recovery.
‘Echoes Like Us’ is the latest phase of Government’s Stop the Violence campaign that uses storytelling and creative media to raise awareness and promote healing, with the aim of shifting the culture around violence in Bermuda.
The first two full interviews, with pro boxer Adrian Roach and Insurance professional Shiloh Todd, are available on the Stop the Violence youtube channel, with clips from other interviews already on their other social media pages.
Mr Todd lost his father to violence at 3 years old, and he talks about the mentorship that helped him when he started becoming angry and violent in his middle school years.
He says he is speaking out now in hope that it will help others like him, and stop the cycle of violence.
“There are a lot of people that are going through what I went through,” he says, “and I want them to know that there’s better… the past don’t define you.”
“What happened to your loved one don’t define you. It hurts, but it gets better, with the people you surround yourself with and the choices you make.”
“I don’t want more young people to go and do bad things… I don’t want the cycle to keep going where someone’s hurt, they take someone out, and that person’s hurt – and then the cycle keeps going.”
Another phase of the campaign, ‘Break the Silence’, will launch in November, aiming to break the stigma around therapy and mental health.
The Ministry of National Security, through its Gang Violence Reduction Team (GVRT) and in partnership with 7 South Productions, continues to lead the Stop the Violence Campaign, a cornerstone of Bermuda’s National Violence Reduction Strategy.
This ongoing national initiative uses storytelling, partnership, and creative media to raise awareness, promote healing, and strengthen community unity.
Since its inception, the campaign has delivered several major milestones, including the Campaign Launch, the Youth Rise Against Violence Conference, and the Youth Campaign Videos, each amplifying real voices and lived experiences to shift the culture around violence and prevention in Bermuda.
Now, the Ministry has launched the next chapter: “Echoes Like Us: Real Men. Real Stories. Still Here.” This bold, emotionally charged storytelling series spotlights young Bermudian men who have faced loss, violence, and recovery.
Through intimate interviews and cinematic visuals, Echoes Like Us captures raw truths about pain, resilience, and hope, creating space for healing and dialogue across the island.
Minister of National Security, the Hon. Michael Weeks, JP, MP, said: “This campaign captures what Bermuda needs most right now, truth, compassion, and connection.
“Stop the Violence and Echoes Like Us remind us that prevention starts with understanding, empathy, and community. These are real people telling real stories, and their courage is helping us build safer, stronger communities across Bermuda.”
Next Phase: “Break the Silence” – Mental Health Awareness Campaign
Launching in late November, the upcoming Break the Silence campaign will focus on mental health, healing, and emotional resilience, particularly among youth, young adults, and Black men. The initiative aims to:
Break stigma around therapy and mental health
Connect the dots between violence, trauma, and emotional wellness
Highlight local therapists, pastors, and mentors as relatable role models
Provide actionable tools for managing stress, anger, and depression
Dion Green, Art Director 7 South Productions, added: “It’s been a pleasure working with the Ministry on a project that reaches and touches the lives of so many.
“While filming, it’s been emotional, real, and at times hard, but the power of storytelling is undeniable. The campaign’s impact, both in numbers and in reach, is like nothing I’ve seen before.”
Campaign Reach & Community Impact
The Stop the Violence Campaign continues to expand its visibility and impact across Bermuda, with over 300,000+ video views across Instagram, Facebook, and YouTube.
Pastor Leroy Bean, Gang Violence Reduction Coordinator, shared: “I encourage people to sit down with their kids and watch these campaigns, talk about them, share them with others, and have real, hard, honest conversations with each other and within our families.
“These stories are meant to move us toward understanding and action. I also want to thank the more than 100 people who have participated in the campaign’s efforts so far, your voices and courage are what make this movement real.”
The Ministry encourages the public to check out the campaign videos, share them, and start the conversation.
Spain’s unique system whereby “investigating magistrates” lead criminal probes dates back to 1882
International News via Reuters:
Spain’s cabinet approved on Tuesday a bill to put prosecutors in charge of criminal investigations instead of court magistrates as it seeks to align the country’s outdated criminal justice system with those of its European peers.
Spain’s unique system whereby “investigating magistrates” lead criminal probes dates back to 1882, and the proposed move is the most significant reform in the area to date, Justice Minister Felix Bolanos told a news briefing.
He said the change proposed by the minority leftist administration sought to adapt the Spanish model to those of most democracies, so that “judges are there to judge and execute the judgements while investigations are carried out by the Public Prosecutor’s Office”.
Judges would still supervise prosecutors to ensure fundamental rights and proper procedures are respected and would be able to revoke or confirm the prosecution’s decisions.
The draft bill, which requires approval from a highly fragmented parliament where the government has struggled to pass legislation, also seeks to limit the role of so-called “private prosecutions” by removing the right of political parties and trade unions to trigger criminal investigations.
Only certain associations with a “legitimate link” to the subject matter of a case would be able to initiate criminal proceedings independently of the police and prosecutors.
Opposition parties including the far-right Vox and ultra-conservative lobbies have been using the private prosecution rules to pursue several corruption cases currently dogging the government.
Prosecutor General Alvaro Garcia Ortiz faces trial at the Supreme Court next week over allegations of leaking confidential information in a tax fraud case involving the partner of Madrid’s regional leader, Isabel Diaz Ayuso.
Ayuso, from the main conservative opposition People’s Party, said on Tuesday the cabinet’s proposed reform undermined judicial independence and reflected a shift towards “popular justice – the most unjust of all”.
The plane was travelling from the resort town of Diani on the Indian Ocean coast to Kenya’s Maasai Mara reserve when it crashed at about 0830 local time (0530 GMT)
International News via Reuters:
Ten Hungarian and German tourists were killed along with a Kenyan pilot when a light aircraft crashed in Kenya on Tuesday.
The plane was travelling from the resort town of Diani on the Indian Ocean coast to Kenya’s Maasai Mara reserve when it crashed at about 0830 local time (0530 GMT), the aviation authority said.
Smoke rose from the wreckage of the plane, which came down in a forested area in Kwale County in Kenya’s southeast. The holidaymakers’ clothes were scattered on the ground and in nearby trees.
Kenya’s government said investigators had been sent to find out what had happened, and Hungary’s Prime Minister Viktor Orban sent condolences.
Hungary’s Foreign Minister Peter Szijjarto said the eight Hungarians killed included two families, an acquaintance of theirs and two minors. Two Germans were also killed.
“Once we receive the official information on the identities of the victims, the next of kin will be notified,” Szijjarto said in a live broadcast on YouTube.
The airline, Mombasa Air Safari, said it was cooperating with the investigations.
Reporting by Laban Walloga in Kwale County, Vincent Mumo and Humphrey Malalo in Nairobi, Anita Komuves in Budapest and David Lewis in LondonEditing by Alexander Winning, William Maclean and Peter Graff
Four rounds into the season, the Bermuda Football Association (BFA) Premier and First Division campaigns are fully underway, with intense battles for supremacy defining the early standings.
The Premier Division is currently locked in a dramatic two-way race for the top spot, decided only by goal difference.
X-Road’s currently lead the league with ten points and a goal difference of +5. They sit just ahead of the Dandy Town Hornets, who also boast ten points but lag slightly at +3. The Devonshire Colts are keeping the pressure on, sitting in third place with nine points.
The Golden Boot race in the top flight is equally tight, with a three-way tie emerging at the top:
David Jones (Dandy Town Hornets)
Jonte Smith (North Village Rams)
Donovan Thompson (X-Road’s)
All three players have netted four goals apiece.
In the First Division, the Somerset Trojans have established themselves as the early pacesetters, remaining undefeated after three matches to lead the standings.
The chase pack is tightly bunched, with the Southampton Rangers, Robin Hood, and the Somerset Eagles all tied on six points. Notably, Robin Hood holds an advantage, having played one fewer game.
The Golden Boot race is being dominated by veteran talent Keishen Bean of Robin Hood, who has stormed ahead of the field with a blistering eight goals. The chasing pair consists of Sijay Samuels and Ellington Weldon, both from the Southampton Rangers, who have five goals each.
The tight points totals across both divisions promise a highly competitive season ahead.
The central African nation’s constitutional council on Monday declared Biya, 92, as the winner of the disputed vote with over 53% of the ballots
International News via Reuters:
Cameroon’s opposition leaders rejected presidential election results that extended President Paul Biya’s rule for another seven years, saying the outcome did not reflect the will of the people in a country already battling a separatist conflict.
The central African nation’s constitutional council on Monday declared Biya, 92, as the winner of the disputed vote with over 53% of the ballots, triggering violent protests in several cities in the oil- and cocoa-producing nation.
The court’s ruling, which is final and cannot be appealed, signals a potentially prolonged post-election standoff.
Issa Tchiroma Bakary , Biya’s main challenger, had earlier declared victory and warned he would not accept any other outcome. His supporters have angrily taken to the streets, clashing with riot police and blocking roads in the commercial capital Douala with burning tires and debris.
The protests killed at least four people over the weekend and two others on Monday, according to the opposition.
There were scattered celebrations in Biya’s strongholds and government ministers held a party. The usually bustling streets of Douala remained quiet on Tuesday as rain and riot police kept protesters away.
The European Union expressed “deep concern” about the recent violent repression of protests and called on authorities to tackle the excessive use of force. It also urged leaders to engage in dialogue to preserve national stability.
OPPOSITION FIGURES ALLEGE WIDESCALE FRAUD
Other opposition leaders have alleged widespread fraud, accusations rejected by the government.
Akere Muna, a prominent lawyer and former presidential candidate, condemned the process as fraudulent and accused the Constitutional Council of being “nothing more than the rubber stamp of a tyranny.”
Muna, whose name appeared on the ballot despite dropping out 11 days earlier to join a rival coalition, said the election reflected the will of a decades-long system designed to maintain power. He cited implausible turnout figures in English-speaking regions embroiled in a separatist conflict since 2017 as evidence of fraud.
“What we experienced was not an election worthy of a Republic,” said Tomaino Ndam Njoya, the sole female candidate, who finished fifth.
“It was a confiscation of the people’s choice by interests that reject transparency in the democratic process. I solemnly reject these results,” she added in a statement late on Monday.
Cabral Libii, who finished third, congratulated Biya on his victory.
In Douala, which has seen some of the most violent protests over the past week, residents were braced on Tuesday for another day of unrest. But bad weather and armed police appeared to have mostly dispersed small groups of protesters by the early afternoon on Tuesday.
Jean-Pascal, a resident of Douala, described Paul Biya’s re-election as “a stolen victory,” saying the people had rejected the government, which has failed to deliver progress in over four decades.
“The people did not choose …Paul Biya. This government has brought us nothing. For 43 years — since I was born — this government has been in place. And it has brought us nothing. Nothing at all,” he said.
Reporting by Bate Felix and Ngouda Dione; Editing by Jessica Donati, William Maclean
Lehigh University Women’s Golf secured a thrilling victory at their home Lehigh Invitational in New Jersey, edging out rival Penn by a single, decisive stroke to snatch the team title.
The win, the program’s first since March 2023, came down to a clutch final-round performance at the demanding Trump National Golf Club.
Lehigh finished the 36-hole tournament with a combined score of 609 (rounds of 306 and 303). This tight final tally proved just enough, defeating Penn by one stroke and holding off first-round leaders, Old Dominion, who finished two strokes behind.
The victory was truly a team effort, requiring contributions from every player to secure such a narrow margin of success.
Bermuda’s first-year golfer, Sienna Mosquera, was part of the winning squad. Mosquera showed resilience in her final round, improving her score with an 83 (after an opening 86), a performance highlighted by securing one birdie. She finished the tournament in 65th place with a score of 169.
The success at the Lehigh Invitational provides a major boost of confidence for the Mountain Hawks as they build momentum toward the heart of their season.
The call by Deutsche Telekom, Orange, Telefonica, TIM, Vodafone, Nokia and Ericsson comes as the Commission is set to announce a legislative proposal to revamp the sector
International News via Reuters:
Europe’s biggest telecommunications companies urged the head of the European Commission on Tuesday to loosen EU merger rules, a move they said would boost much-needed investments in digital infrastructure and help them compete with U.S. and Asian peers.
The call by the chief executives of Deutsche Telekom, Orange, Telefonica, TIM, Vodafone, Nokia and Ericsson comes as the Commission is set to announce a legislative proposal to revamp the sector.
The Digital Networks Act, currently scheduled to be unveiled in November, aims to take a more comprehensive approach to help ramp up digital infrastructure across Europe.
It hit a stumbling block last week, however, when an internal Commission body issued a negative opinion on the legislation, according to a person with direct knowledge of the matter.
“The Digital Networks Act is a crucial opportunity,” the CEOs wrote in a joint letter to Commission President Ursula von der Leyen.
“Unless the Commission takes bold action with a clearly stated intent to address the need for scale, European industries will continue to lack the strength to invest at the same pace as their competitors in the United States, Asia and other markets,” they wrote.
The telecoms industry has voiced concern the DNA will ignore their calls to ease the path for large mergers, particularly those which reduce the number of players in a market from four to three. Antitrust regulators have long viewed that level of consolidation as a precursor to price hikes considered harmful to consumers.
“The Commission must act boldly to recognise the link between scale and investment, and a much simplified regulatory framework that increases investment capacities,” the executives said.
Other signatories to the letter included BT Group, CK Hutchison Group Telecom, KPN, Liberty Global, FiberCop, Swisscom and Telenor.
Eighteen of Bermuda’s most promising young swimmers have returned home after completing the punishing Sharks Swim Club’s annual high-performance training camp, DC11, in Florida.
Led by Head Coach Ben Smith, the week-long intensive was designed to push the dedicated squad to their absolute physical and mental limits in preparation for the upcoming championship season.
The DC11 camp was a true test of extreme endurance. Athletes, including Elena Bortoli and Zach Johnson, covered a staggering distance in the pool, logging close to 100,000 yards—the equivalent of nearly 60 miles of swimming over seven days.
This colossal pool time was complemented by relentless land training. Each swimmer completed nearly 25 hours of swimming, coupled with eight hours of core sessions and over ten miles of running, all packed into a schedule featuring two demanding two-hour swim workouts every day.
“I asked these swimmers to go beyond what they thought possible… They had to remain focused on execution as they grew stronger both physically and mentally,” said Coach Smith.
The camp is a vital part of the Sharks’ build-up toward the upcoming Bermuda Sharks Kattegat Sprint Championships. Distance swimmers honed their stamina for the grueling 1500m freestyle, while sprinters sharpened their precision under the heavy load.
Coach Smith praised the commitment: “Many young people will have spent the school break sitting on the couch while these 18 chose to accept the challenge. They return home with the DC-11 mindset.”
The hard work was rewarded with a team trip to an Orlando Magic Basketball game before the exhausted but resilient squad flew back to Bermuda.
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