Gavin Grey: UK Correspondent on Bank of England warning of a "sharp correction" in the value of major tech companies

Former Prince Andrew will get to stay in the Royal Lodge for another year, but likely won't receive compensation for the early termination of his lease. 

A shipment of German ammunition, thought to be 20,000 rounds, has been stolen from a delivery lorry after the driver for a civilian transport company left his truck in an unguarded parking lot.

The Bank of England has warned of a potential "sharp correction" in the value of major tech companies amidst fears of an AI bubble.

UK Correspondent Gavin Grey told Heather du Plessis-Allan, "the bank is outlining that the growth of the AI sector in the next 5 years will be fuelled by trillions of dollars of debt, raising financial stability risks if then companies go bust."

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Episode Transcript

Speaker 1 (00:00):
Devin Gray UK correspondents with us Ello Gevin. So Andrew
gets to stay in his house for another.

Speaker 2 (00:05):
Year, Well, I think that is more of a technicality
than actually going to be reality. I've been hearing from
lots of people that in the first quarter, first three
months of next year he will almost certainly be going
from Royal Lodge. This, of course, this is massively a
huge house near Windsor that's been so controversial that the

(00:26):
King's been trying to get his brother out of. And yes,
I mean in technicality he gave a year's notice and
gave that on the thirtieth of October. But in reality,
I don't think he wants to upset his brother, King
Charles any more than already done, so I think it's
likely he'll move out. What's also interesting is he was

(00:48):
entitled in theory to roughly a million New Zealand dollars
for surrendering his seventy five year lease early. That's the
way in which this contract was drawn up. However, apparently
the property is in such a delap but they did
state and in need of such repairs that quote. In
all likelihood, Andrew mount Batman Winsor. The former Prince Andrew

(01:08):
will no longer be owed any compensation. There's now going
to be an inquiry into the Crown of State and
it's leasing out of the various buildings. It's not known
whether Andrew mount Batman winsor will be called to give evidence. Frankly,
even if he is, I suspect he'll try and wriggle
out of that one, not wanting to put his head
above the parapit unless necessary, So potentially some further embarrassment

(01:31):
for the Royal faunily to come on that.

Speaker 1 (01:33):
Now, givin, I thought that he'd spent some ridiculous amount
like ten million pounds or something on renovating the place.
So how is it dilipidated? Is it just so big
that that wouldn't even touch the sides?

Speaker 2 (01:43):
Well, that did a pretty good job, but that was
when he moved in, and that was twenty five years ago,
so it's you know, it's probably you know, the problem
is it's obviously gone downhill and these old buildings deteriorate
very rapidly unless you keep on top of them. Yeah,
fair enough.

Speaker 1 (01:58):
Now the Bank of England is actually quite worried about
the old aibubble, isn't it.

Speaker 2 (02:03):
Very worried and do you know what? The Bank of
England rarely puts out these warnings, but it has warned
of a sharp correction in the value of major tech
companies with growing fears, of course, of this AI artificial
intelligence bubble. According to the Bank of England, it says
share prices in the UK are close to the quote
most stretched. In other words, I think you could say

(02:24):
overvalued since they've been the two thousand and eight global
financial crisis, with equity valuations in the US it says
reminiscent of those before the dot com bubble birth, So
pretty severe warnings here. The Bank is outlining that the
growth of the AI sector in the next five years
will be fueled by trillions of dollars of debt, raising

(02:45):
financial stability risks if then companies go buzz and its
citing industry figures forecasting spending on infrastructure could top some
seven and a half trillion New Zealand dollars and says
much of this would be funded by AI firms themselves,
but half would come through outside sources, mostly through debt,

(03:06):
and that it says is a huge risk.

Speaker 1 (03:08):
Now, Gavin, should we be worried about all that? Amo
that's been nicked from the German town.

Speaker 2 (03:14):
Yes, I think we should. For all, why would you
steal a whole load of army ammunition if you didn't
know where you could sell it and it was going
to be used. This is a story that is quite extraordinary.
So the theft is thought to have taken place after
the driver of a civilian transport company contracted by the

(03:34):
military left his truck in an unguarded parking lot overnight.
The next day, when the delivery arrived at the Klauswitz
Barracks in Germany, the ammunition, some twenty thousand rounds was
found to be missing. The armies launched an investigation. So
to the police, it's thought as well as can included

(03:56):
nine hundred rounds of blank bullets for assault rifles and
smoke grenades also went missing from this shipment, And as
I said, I think big question marks about how laurie
like this could have just been left in a public
car park unguarded overnight.

Speaker 1 (04:10):
Quite Gevin, thanks very much, really appreciated. Look after yourself.
That's Kevin Gray, our UK correspondence.

Speaker 2 (04:16):
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