Bloomberg Daybreak: Europe Edition France’s Crisis Deepens, Explosive AI Stock Rally, Cybercrime’s High Cost
5 snips
Oct 7, 2025 France is on the brink of political collapse as President Macron's prime minister scrambles to negotiate a last-minute deal. Meanwhile, Trump hints at potential healthcare negotiations to loosen the ongoing government shutdown. In the tech world, AMD clinches a major deal with OpenAI, positioning itself against Nvidia in the booming AI sector. Investors are shifting their gaze to gold as a safer bet over the dollar, raising alarms for some billionaires. Lastly, the UK is urged to ramp up investments to capitalize on AI advancements.
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France's Political Gridlock Hits Markets
- France faces a political crisis that could delay its budget and raise borrowing costs for the state and banks.
- Markets treat this as political risk for now, not yet a full fiscal crisis, but spreads and stock weakness reflect growing concern.
Gold Replaces Dollar As Perceived Safe Haven
- Investors are increasingly viewing gold as a safe-haven alternative to the US dollar amid political and policy uncertainty.
- Ken Griffin warns this shift away from the dollar is a concerning sign about confidence in the US safe-haven role.
AI Compute Demand Outstrips Capacity
- AMD's deal with OpenAI sparked a huge rally, highlighting intense and still-underestimated demand for AI compute.
- OpenAI says compute constraints are limiting new product launches, implying sustained demand for infrastructure providers.