AI Boom's Impact on Long-Term Rates Debated; EU Banking Union Stalled

The article discusses the ambiguous effect of AI investment on long-term interest rates, with arguments for both higher rates (due to increased capital demand) and lower rates (due to productivity gains). It also notes that European banks find regulations too strict, while regulators cite 2008 lessons, indicating the banking union remains on hold. The uncertainty centers on whether AI-driven productivity will offset investment-driven demand for capital.