Global Financial Landscape Shifts: Central Banks Adapt, AI Advances, and Housing Policy Takes Aim

Central Banks and Economic Policy - The Bank of England (BoE) is expected to slow its balance sheet rundown due to recent market turbulence, indicating a cautious approach to monetary policy normalization [3] - The Federal Reserve's reverse repo operation involved 16 counterparties taking $16.954 billion, reflecting ongoing dynamics in short-term money markets [4][8] Technological Advancements - OpenAI has released GPT-5 Codex, an advanced language model that promises enhanced capabilities in coding, writing, and complex reasoning, potentially revolutionizing professional tasks [5][8] Housing Market Initiatives - FHFA Director Pulte has directed Fannie Mae (FNMA) and Freddie Mac (FMCC) to increase housing supply to address the ongoing housing shortage in the U.S., signaling a strategic effort to inject more inventory into the market [6][8] Semiconductor Industry Stability - STMicroelectronics (STM) has confirmed to the Italian government that it is not planning redundancies at its Agrate plant, providing stability for the local workforce amidst broader industry challenges [7][8] - The company is committed to its investment plans in Italy, including plans to double production capacity at the site by 2027 [9]