Greek authorities have requested the freezing of two bank accounts in Ireland and Denmark as part of the tax fraud investigation against the “Horiatiko” bakery chain. While investigation into the mastermindly orchestrated fraud scheme continues, media report on Tuesday of involvement of numerous police officers who would brief the organization in advance before authorities raids […]
The Reserve Bank of New Zealand is expected to raise its official cash rate by 25 basis points to 3.0 percent, despite earlier signalling a pause. It would mark a third straight increase and the highest level in a year.
Markets overwhelmingly expect the Federal Reserve to leave its benchmark interest rate unchanged this week, following an increase in September. Fed policymaker Kevin Warsh has signaled that further hikes could follow if inflation pressures persist.
South Korea's central bank has warned that semiconductor exports could shrink by as much as $100 billion if worldwide artificial intelligence spending cools sharply. The Bank of Korea modelled a deliberately pessimistic scenario to measure the trade-reliant economy's exposure to concentrated AI-driven chip demand.
Instead of working to avert bank sanctions, PM proposes a bypass that risks rattling investors, sparking capital flight, and imperiling the high-tech sector the economy relies on
Paraguay's central bank unanimously held its policy rate at 5.50% after annual inflation eased to 1.7% in September, keeping borrowing costs unchanged for now.
PM insists threatening economic outlook is result of developments that don't have to do with Israel, but rivals say his government's policies are to blame
Rising petrol prices have pushed New Zealand's headline inflation higher ahead of the Reserve Bank's next policy review. Economists widely expect the central bank to raise the official cash rate by 25 basis points next week, even though the latest price pressure stems mainly from fuel costs rather than broader demand.
Singapore's core inflation eased to 2 percent in September. Headline inflation also slipped to 2.2 percent from 2.3 percent in August, pointing to cooling price pressures in the city-state.
This week's cyber freakout explained: AI is making software weaknesses easier to find and exploit.
The message from Cloudflare's Stephanie Cohen and Vercel's Tom Occhino: Don't panic!!!
Do we need everything connected to the internet? Paper bank statements work well.
A few weeks ago, I heard a strange story about a friend who works at one of the Big Tech companies in Silicon Valley.
She'd recently ripped out the connected devices in her home, ordered paper bank statements, and stocked up on canned goods in her basement.
Now, she's a very sane, experienced person, and quite senior at one of the largest internet companies on earth. Why was she disconnecting so much? Just to be sure, my family ordered paper bank statements, too. It was still a head-scratcher, though.
Fast forward to this week, and her actions look a little less crazy.
The digerati have now entered full freakout mode. Much of the internet meltdown is happening on, well, the internet, my colleague Alice Tecotzky noted.
On X and Reddit, warnings of a looming “Black October” spiraled into visions of AI grinding civilization to a halt. One lengthy post on X warned of a potential “global cyberattack/AI swarm” and offered a survival checklist: Stockpile cash in small bills, print out your neighbors' phone numbers, download maps, buy a hand-crank radio, and stash a gallon of water per person per day.
Oh, and don't forget the manual can opener. You don't want to survive the AI apocalypse only to be defeated by a tin of beans.
Nikita Bier, a prominent app developer and former head of product at X, best captured the mood.
"The world is a little bit scary right now," she told me on the side of Cloudflare's annual conference in San Francisco this week.
Here's the problem. The internet is built on decades of software, much of it riddled with security holes.
Some of these weaknesses have been known for years. However, fixing them takes time and money, and hackers often lacked the skills to exploit them anyway. So they were left alone.
AI changesthat calculation dramatically. Someone who previously needed years of training to break into a computer system can now get help from an AI model. And these tools can search for weaknesses at a speed humans simply can't match.
Now, there's a frantic race between people trying to break into systems and those trying to protect them.
Don't panic about AI
Cohen's message, though, was surprisingly reassuring.
AI helps the good guys find and fix these problems. Cloudflare, for instance, released protections for the latest vulnerability to customers, including those using its free service.
And there's a bigger effort underway.
OpenAI has launched an initiative called Patch the Planet, working with Cloudflare and other security professionals to use AI to find weaknesses in widely used software and help repair them.
Tom Occhino, chief product officer at Vercel, told me recently that his company has been talking with partners about launching a nonprofit that would fund a swarm of good AI agents that go out on the internet to find and fix software flaws.
Amazon is joining the fight, too. Its new Continuum service, available Thursday, uses AI agents to find security holes and propose fixes. Amazon said that people maintaining freely available software can use it to help protect the wider internet.
Humans may still have to check and approve these repairs, but the prospect of AI helping clean up decades of neglected software is encouraging.
The irony of this is not lost on some in the industry.
"The funny thing is everyone was saying AI slop code will cause a cyber crisis but it's actually all the old human slop causing it and the AI is just cleaning it up," software engineer Ben Kaufman wrote on X on Thursday.
Either way, Cloudflare's Cohen thinks these AI-inspired freakouts will push the industry to do better — by exposing issues and adding urgency to get them patched.
"We may end up in a world where actually we've become significantly more secure at the end," she said.
The trouble is getting there.
A fundamental question about the internet
Tom Occhino (left), chief product officer at Vercel, talks with Meta executive Prashant Ratanchandani at Vercel's Ship SF conference.
Alistair Barr/Business Insider
When I ran into Occhino recently at a Vercel conference in San Francisco, he described a world in which software that everyone assumed was safe suddenly looksvulnerable because increasingly capable AI models are scrutinizing the basic systems that underpin the internet.
That led to a more fundamental discussion between us: Why did we connect so many things to the internet in the first place?
For years, the technology industry has raced to put everything online. Thermostats. Refrigerators. Doorbells. Cars. Bank accounts.
We assumed that connecting something to the internet automatically made it better.
Perhaps we should reconsider.
Before the internet
I remember the world before the internet. It worked pretty well. We managed to buy groceries, pay bills, heat our homes, and generally get through the day without every appliance talking to a computer somewhere.
That doesn't mean abandoning online banking or throwing your smartphone into the sea.
Occhino, for one, isn't particularly worried about hackers wiping out his bank account. Modern banks have sophisticated protections, and he recommends everyone turn on additional login security.
Maybe the cybersecurity crowd, which spends its life immersed in online threats, is missing something obvious.
Not everything needs to be connected.
Occhino put it neatly: "There's certain things that don't make sense to be on the internet in the first place."
Perhaps that's the lesson from this week's panic. We don't need to turn off the internet.
U.S. Treasury yields posted their sharpest one-day drop since the 2023 banking crisis as investors rushed into government bonds amid a broader tech-stock sell-off. Analysts described the move as a flight to safety rather than a signal of imminent recession.
The central bank lifted its policy rate sharply as the country reels from war-fuelled price rises and faces further risk from an approaching 'super' El Nino.
Initial filings for US unemployment insurance slipped to a seasonally adjusted 194,000, among the lowest readings since the 1960s. The data points to a continuing trend of low layoffs across the American labor market.
New Zealand's annual inflation rate tumbled to 3.7 percent. The slowdown has raised the odds that the Reserve Bank will lift its benchmark interest rate at next week's policy meeting, even as price pressures are forecast to pick up again soon.
Norway's sovereign wealth fund, the world's largest, posted a $30 billion loss in the third quarter after a bond market slump hit its holdings. Norges Bank Investment Management, which runs the roughly $2.3 trillion fund, said returns on its bond portfolio turned negative as yields rose.
The European Union has reached a provisional agreement on reforms to its securitisation framework, potentially allowing banks to release more capital for lending to businesses, households and infrastructure projects.
The agreement, announced on Wednesday, 21st October, follows negotiations between the Council and European Parliament over changes to prudential requirements and the regulation governing securitised financial products.
The reform package agreed by EU negotiators would reduce capital requirements for lower-risk transactions, introduce a new category of resilient securitisations and simplify administrative procedures for financial institutions and investors.
It forms part of the EU’s Savings and Investments Union initiative, which aims to channel more private capital into the European economy.
Banks offered greater flexibility
Securitisation allows banks and other lenders to combine financial assets, including mortgages, consumer credit and corporate loans, into securities that can be purchased by investors.
By transferring some of the financial risks associated with these assets, banks can reduce the amount of regulatory capital they are required to maintain against particular exposures.
This can increase their capacity to extend new loans, although it does not guarantee that additional lending will follow.
The provisional agreement would recalibrate capital requirements according to the risk of individual transactions.
Lower-risk securitisations would receive more favourable treatment, while higher capital requirements would continue to apply to riskier structures.
A new category of resilient securitisations would be introduced alongside the existing framework for simple, transparent and standardised transactions, commonly known as STS securitisations.
The agreement would also strengthen supervision of independent organisations responsible for verifying compliance with the STS criteria.
The Council said that third-party verifiers would become subject to EU-level supervision, with the aim of improving consistency across national markets.
European financial markets remain fragmented
The reforms address a long-standing concern that European banks face higher administrative and capital costs for securitisation than competitors operating under other regulatory systems.
Following the financial crisis of 2008, European authorities introduced tighter rules governing structured financial products, including restrictions intended to improve transparency and ensure that lenders retained appropriate exposure to credit risks.
The resulting framework, which began applying in 2019, strengthened investor protection but also increased compliance costs.
The European Commission proposed the latest review in June 2025, arguing that the existing arrangements had constrained the development of securitisation as a financing tool.
According to the Association for Financial Markets in Europe, approximately €252.3 billion in securitised products was issued across Europe in 2025, with €156.3 billion placed with investors.
Those figures cover the wider European market, including activity outside the EU.
Brussels regards the development of deeper financial markets as necessary to finance infrastructure, technological investment and industrial development.
As EU Today previously reported, the EU’s largest economies have also been examining proposals to strengthen supervision and reduce fragmentation across European capital markets.
Will banks lend more to businesses?
The potential benefits of securitisation are not automatic.
Research published by economists on the European Central Bank’s website in September 2026 found that banks using synthetic securitisation increased corporate lending only modestly, while also distributing more capital to shareholders.
Synthetic securitisation allows banks to transfer credit risk to investors without necessarily removing the underlying loans from their balance sheets.
The researchers found that a one per cent increase in synthetic securitisation issuance was associated with an increase of approximately 0.02 per cent in corporate loan growth.
Their findings also indicated that banks participating in the synthetic securitisation market made greater use of capital released through these transactions to increase dividend payments.
The study suggests that easing capital requirements alone may not generate the substantial expansion in business lending envisaged by European policymakers.
Credit demand, economic conditions and banks’ commercial decisions will also influence whether the reforms produce measurable increases in investment financing.
Broader investment rules to change
The provisional agreement includes additional measures intended to encourage participation by institutional investors.
Investment limits for certain regulated funds, known as UCITS, would be increased, while targeted changes would allow insurers and reinsurers greater participation in specified synthetic securitisation transactions.
The package also seeks to facilitate securitisation arrangements used to finance infrastructure projects before they become operational.
Together, these provisions could widen the investor base and make financing structures available to a broader range of businesses and projects.
However, transferring credit exposure between banks and investors does not eliminate the underlying risk.
If borrowers default or the financial institutions providing protection encounter difficulties, losses may still emerge within the wider financial system.
European regulators will therefore have to assess whether the new classification and supervisory arrangements adequately reflect the risks of different securitisation products.
The political agreement now requires legal finalisation and formal approval by the Council and European Parliament.
The new arrangements would then form part of the EU’s wider programme to strengthen financial markets and reduce barriers to investment across the single market.
Norway has put into force a new round of sanctions against Russia that hits banks, listed oil refineries, ports, airports, and suppliers of Russia’s military industry, the Norwegian Foreign Ministry announced. The rules mirror the EU’s 21st sanctions package, which Brussels adopted in July.
The EU’s 22nd package, adopted on 12 October, is principally a list of names, while the 21st brought significant new measures, lawyers noted. Among them are new tools against the shadow fleet, the tankers with murky ownership that Russia uses to move oil around sanctions. That fleet also sails along Norway’s coast, and a new Norwegian Coastal Administration report found that it poses a growing threat to security and the environment there.
Banks, refineries, and Sheremetyevo
Norway is not an EU member, but it has joined every EU sanctions package against Russia, with a few exceptions and national adjustments. Oslo backed this one politically on 11 August, and the rules took effect on 21 October. Part of the package was already in force. It placed travel restrictions and asset freezes on 48 people and asset freezes on 168 entities, and it listed 41 shadow fleet vessels on 14 August.
Norway’s transaction ban now covers 33 more Russian credit and financial institutions. A separate ban covers 22 more abroad, including in India, Mongolia, Nigeria, and the UAE.
Explore further
Norway sends 69 Russians home without their ship, held for Ukraine
Another transaction ban reaches listed refineries in Russia and third countries that process Russian oil or help dodge sanctions. A Georgian refinery joins that list on 25 January 2027. The same ban adds two Russian ports and four Russian airports, including Moscow’s Sheremetyevo.
Drone gear and the shadow fleet
Export curbs on dual-use goods now cover 51 new entities that back Russia’s military industry. Some are in China, including Hong Kong, and others are in India, Kazakhstan, Kyrgyzstan, Türkiye, and the UAE. The banned-exports list adds nickel and beryllium powder, along with drone gear such as jamming and interception systems, launchers, and servo motors.
Oslo can now also list ships that service sanctioned shadow fleet tankers or swap cargo with them at sea. Elsewhere in Europe, France’s navy and UK forces have boarded sanctioned shadow fleet tankers this year.
The implicit interest rate on mortgage loans rose again in September, extending the upward trend to 3.194%, reaching its highest level since September 2025, according to data released by INE
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