Your commercial news round-up: global warming, AI code of conduct, EU deals, Disney’s growth plans

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Global temperatures, AI regulations, a new European Union (EU) deal and Disney growth plans that include music giant Taylor Swift are all covered in this week’s commercial news round-up. Are any of these stories on your radar and what commercial implications can you spot?

• Despite net-zero targets, global warming has surpassed 1.5 degrees across one year, the EU’s climate service has revealed. Although the breach doesn’t break the landmark Paris Agreement, adopted in 2015, Professor Liz Bentley, chief executive of the Royal Meteorological Society, has called it “significant” and said that it’s “another step in the wrong direction”. Berkeley Earth also found that 2023 was more than 1.5 degrees above pre-industrial levels, while NASA found that it was slightly below. Despite these differences, likely due to the way global temperatures are estimated for the late 1800s, the various scientific bodies indicate that the world is experiencing its warmest period since modern records began. Human activities, such as burning fossil fuels, and El Niño (a natural climate pattern), have been cited as reasons for the warming trend.
   
• From one ‘hot’ topic to the next: a voluntary code of conduct for AI has been shelved, with City lawyers saying it was “always doomed to fail”. The UK’s Intellectual Property Office put together an industry panel to draft an AI voluntary code of conduct but AI companies and rights holders were unable to reach an agreement. As a result, the responsibility now lies with the Department for Science, Innovation, and Technology, according to CITY A.M. Paul Joseph, IP partner at Linklaters LLP, said it “isn’t a surprise” that an agreement wasn’t reached as “it was difficult to understand what the code was intended to achieve”. Lara Carmona, director of policy and engagement at Creative UK, has urged “the UK government to make explicit its commitment to our existing copyright regime”, highlighting that IP is the “bedrock” of the creative industries. A government spokesperson has explained that they’ll maintain “a balanced and pragmatic approach”, allowing “AI innovators and our world-leading creators to continue to flourish”.
   
• On Wednesday 7 February, the EU agreed on a provisional deal that aims to end London’s hold on clearing the euro derivatives market. According to Investopedia, ‘clearing’ is “the correct and timely transfer of funds to the seller and securities to the buyer” and London is home to the vast majority of euro-denominated deals. The provisional deal is designed to establish an “active account requirement” for firms, so banks will need to have an account with an EU-based clearing house to clear contracts. According to Vincent Van Peteghem, Belgium’s finance minister, the agreement “will bring more clearing services to Europe” and enhance its “strategic autonomy”. Van Peteghem added: “It’ll also contribute to stabilising the market and make sure it functions efficiently, which is a prerequisite for a fully-fledged capital markets union.”
   
• Disney has come under pressure to boost profits from its streaming business, with Bob Iger, the US media giant’s chief executive, revealing plans designed to spark “significant growth”. Streaming Taylor Swift’s Era’s Tour concert movie on Disney+ and investing £1.2 billion in Epic Games are among these plans. According to Disney, its streaming service lost 1.3 million subscribers in the three months to 31 December after it decided to increase prices. However, the deal with Epic Games “marks Disney’s biggest entry ever into the world of games and offers significant opportunities for growth and expansion” – the deal also comes after an announcement about its joint venture with Fox and Warner Bros Discovery to launch a new sports streaming platform.

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