Europe
The Download: brain-melting heatwaves and unprecedented OpenAI restrictions
Plus: The Trump administration has asked OpenAI to limit its next model release. Scientists are trying to figure out why. It's been hot in London this week. A dangerous heat wave has hit Western Europe. On Wednesday, the UK recorded its highest ever June temperature at 36.1 C (about 97 F). But as the weather app on my phone confirmed, it 39 C. Much of Western Europe is suffering, bringing awful consequences for agriculture, infrastructure, and the health system.
Russia reports downing 660 Ukrainian drones, denies seeking Belarus war aid
Is the war entering a new phase? Russia has reported that it downed 660 drones overnight, as Ukraine maintains a barrage that is straining Russian air defences and energy infrastructure. The number of drones shot down marks one of Kyiv's biggest launches of long-range strikes, Russia's Ministry of Defence stated on Friday. That has stoked concern that Moscow may try to pull ally Belarus into the conflict, launched when it invaded Ukraine in February 2022. The latest wave of Ukrainian drones saw Russia intercept unmanned aircraft over 13 regions, including the capital, Moscow, and the illegally annexed Crimean peninsula, as well as the Black and Azov seas.
Can video games help us better understand quantum mechanics?
Can video games help us better understand quantum mechanics? The world of quantum video games is vast - there are hundreds that are either inspired by quantum mechanics or use quantum computers in their development. A pale yellow square awkwardly lands on a green block shaped like the letter "z". Next to them stands a pillar made of smaller turquoise blocks. We've all seen, you can probably picture it.
Australian musicians sound warning note after Nick Cave, Kylie and many more slurped into AI training tool
Nick Cave and Kylie Minogue are among Australian artists reportedly found in datasets used to train artificial intelligence. Nick Cave and Kylie Minogue are among Australian artists reportedly found in datasets used to train artificial intelligence. 'It's all just rendered useless', Something For Kate's Paul Dempsey says as AI scrapes millions of songs to learn how to make music Paul Dempsey and Bernard Fanning are among big-name Australian musicians upset that their original songs have been found in datasets used to train artificial intelligence. A dataset search tool recently created by US publication The Atlantic reveals millions of creative works have been scraped from the internet to train the disruptive technology. It includes a vast catalogue of work by Australian artists, with tunes by Kylie Minogue, Powderfinger, Nick Cave and Jimmy Barnes, and novels by Thomas Keneally and Peter Carey.
Data-Driven Duration Management -- Term Structure Forecasting Using Machine Learning
Lausser, Tobias, Vuolo, Joao Eduardo, Zagst, Rudi
This paper compares different methods for forecasting the term structure of U.S. and European zero-coupon government bonds using both traditional econometric and Machine Learning (ML) approaches. We compare classical models (e.g., Dynamic Nelson-Siegel (DNS) and Principal Component Analysis (PCA)) with different Neural Network (NN) architectures, including those inspired by the classical models, on the U.S. Treasury market and bonds issued by the European Central Bank (ECB). To enhance predictive performance, macroeconomic variables are incorporated. The findings for both markets are separately analyzed and compared. To this end, we propose a robust model evaluation framework combining statistical accuracy metrics - such as RMSE, MAE, and directional accuracy - with the economic relevance of a quantitative bond trading strategy. Results show that NNs consistently outperform traditional models in both forecasting accuracy and portfolio performance. For the U.S., the most effective approach is a direct-forecasting NN that incorporates DNS factors to reduce the dimensionality of zero-rate data and an Autoencoder (AE) to extract macroeconomic features, while for Europe, the optimal model is a factor-based NN using PCA-derived zero-rate factors without the integration of macroeconomic variables. Overall, the paper demonstrates how combining traditional modeling approaches with modern ML techniques and evaluation can improve yield curve forecasts and support applications in fixed-income portfolio construction.
Learning Probabilistic Filters with Strictly Proper Scoring Rules
Bach, Eviatar, Baptista, Ricardo, Bröcker, Jochen, Chen, Bohan, Stuart, Andrew
Bayesian filtering of partially and noisily observed dynamical systems seeks to infer the evolving conditional distribution of the state of a dynamical system, given observations, in an online fashion. This Bayesian filtering distribution is the natural object for uncertainty quantification, but it is rarely available as a supervised learning target. However, one can often use the forecast model to generate synthetic system trajectories, along with synthetic observations. We introduce the proper scoring ensemble filter (PSEF), an ensemble data assimilation method based on training an analysis map to approximate the filtering distribution using only synthetic state--observation trajectories. The analysis step is represented as a permutation-invariant, transformer-based map that takes as input a forecast ensemble and observations, producing an analysis ensemble. Training is based on strictly proper scoring rules -- with the energy score used in our implementation -- so that probabilistic accuracy is rewarded over the whole probability distribution. We prove that, under a realizability assumption, the population objective is minimized by the true Bayesian filtering distribution. We also derive the finite-ensemble empirical objective used in training and relate its single state--observation trajectory form to the population objective, using a mean-field consistency argument. Numerical experiments show that the learned filter accurately approximates challenging filtering distributions, including nonlinear, non-Gaussian, and multi-modal posteriors, and achieves stronger performance in data assimilation tasks than classical methods or learning-based methods with mean-squared-error objectives. For close-to-Gaussian problems, learning a correction to the EnKF is the best approach, while for highly non-Gaussian problems an end-to-end approach that discards this inductive bias is superior.
Statistical and Structural Approaches to Algorithmic Fairness
Modern machine learning systems have outgrown their origins as isolated predictive constructs, evolving into complex socio-technical architectures that actively mediate human opportunity. As algorithms increasingly determine access to economic and social opportunities, it has become widely recognized that these systems are deeply embedded with the structural inequalities and prejudices of their environments. The field of algorithmic fairness emerged in response to the growing recognition that models optimized for predictive accuracy can systematically disadvantage marginalized groups. Early mitigation strategies, however, rested on fragile simplifications that limited their effectiveness in complex sociotechnical environments. This thesis identifies and addresses two fundamental limitations of contemporary fairness paradigms: the reliance on deterministic point estimates for auditing and the treatment of individuals as isolated entities devoid of structural context. First, the diagnosis of algorithmic unfairness has traditionally depended on scalar metrics that fail to capture the nuances of real-world deployment. This deterministic approach ignores the high statistical variance inherent in small, intersectional groups, often leading to false alarms or missed detections of bias. Furthermore, standard auditing struggles with the opacity of black-box models, frequently conflating unjustifiable bias with the influence of legitimate features.
Representation Costs in Data Science: Foundations and the Quasi-Banach Spaces of Deep Neural Networks
We develop a general framework for analyzing representation costs of parametric data-fitting methods through their parameter-space regularizers. From this abstract perspective, we define representation costs for arbitrary parametric models and reveal their induced (native) function spaces. This unifies recent function-space views of data-fitting methods. We also prove that many natural results hold in this abstract setting, including representer theorems for parametric methods on their native spaces. The framework also rigorously connects parametric methods with their equivalent nonparametric descriptions under sufficient overparameterization. Classical methods and their native spaces, such as kernel methods / reproducing kernel Hilbert spaces, wavelets / Besov spaces, and shallow neural networks / variation spaces emerge as special cases of our abstract framework. A byproduct of "axiomatizing" the study of representation costs is that we also immediately obtain new results for deep neural networks: For depth-$L$ feedforward ReLU networks, their induced native spaces are $p$-normable quasi-Banach spaces with $p = 2/L$. This reveals that the inductive bias of deep neural networks (as given by the representation cost) cannot be captured by norms for depths $L > 2$.
A probabilistic framework for online test-time adaptation
Corrales, Daniel, Insua, David Ríos
This paper presents a probabilistic framework for online test-time adaptation problems. In them, a model is trained on labeled data but must adapt to unlabeled data at test time under the assumption that training and test distributions potentially differ, that is, there might have been a distributional shift. The framework is based on a state-space modelling architecture from which parameter learning, parameter time evolution, prior tuning, and prediction can be characterized.