Bloomberg Daybreak: Europe Edition China-UK Hacking Exposed, Reeves Needs £50 Billion, Griffin: AI Lacks Edge
Oct 16, 2025
Chinese state actors have compromised UK classified systems for over a decade, raising serious security concerns. Meanwhile, the US Treasury Secretary hints at extending tariff pauses if China eases rare-earth export controls. In the UK, Chancellor Rachel Reeves needs to significantly increase her fiscal buffer to prevent tax hikes. The French Prime Minister appears likely to survive no-confidence votes by suspending a pension reform. Lastly, Ken Griffin shares skepticism about AI's impact on hedge fund performance, contrasting with other industry leaders.
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Longstanding Breach Of UK Classified Systems
- Chinese state actors accessed low- and medium-level classified UK systems for over a decade.
- That information included diplomatic communications and policy discussions usable against UK interests.
£50bn Buffer Needed To Avoid Fiscal Squeeze
- The Institute for Fiscal Studies says Chancellor Rachel Reeves needs a £50bn buffer to avoid repeated fiscal tightening.
- Restoring the current small headroom would leave only a one-in chance of long-term balance.
French Premier Likely To Survive Votes
- France's premier appears likely to survive no-confidence votes after suspending contested pension changes.
- Markets see relief but the government still faces substantial fiscal challenges ahead.