Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

Google may be forced to make changes to how its search engine operates in the UK after the Competition and Markets Authority (CMA) granted it "strategic market status" under the Digital Markets, Competition and Consumers Act. This gives the competition watchdog the power to impose rules on Google’s search and advertising businesses. Will Hayter, the CMA's executive director for digital markets, said: "We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform." Oliver Bethell, senior competition director at Google, warned that the ruling could harm innovation and lead to higher prices.

 

Sky News

BBC News

Daily Mail

The Guardian

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European Central Bank (ECB) policy is robust enough to respond to changes in the euro zone inflation outlook, so the bank can afford to maintain a steady hand until it gains more clarity, according to ECB policymakers' accounts of their meeting last month. "The current level of interest rates should be seen as sufficiently robust in managing shocks, in view of two-sided inflation risks and taking into account a broad range of possible scenarios," the accounts of the meeting observed.

 

Reuters

Global financial regulators are intensifying their oversight of artificial intelligence as its usage among banks and financial institutions increases. A report from the Financial Stability Board highlights concerns regarding the reliance on similar AI models and hardware across institutions, which could lead to vulnerabilities and herd behaviour. Additionally, the Bank for International Settlements has stressed the "urgent need" for financial authorities to enhance their capabilities in understanding and using AI technology effectively.

 

Reuters

OpenAI has raised concerns with EU regulators regarding competition in the artificial intelligence sector. During a meeting with EU antitrust chief Teresa Ribera, OpenAI highlighted the need for measures to prevent large platforms from locking in users and unfairly leveraging their market positions. The European Commission is currently investigating how such platforms are affecting the AI landscape.

 

Reuters

The German government has signalled openness to transferring financial supervision from the Bonn-based BaFin to the European Securities and Markets Authority, in a move to complete Europe’s capital markets union.

 

Financial Times

Google has reported that over 100 companies may have been compromised in a hacking campaign linked to Oracle's business products, which began around three months ago. The CL0P hacker group is suspected to be behind the operation. The group is noted for its history of extensive breaches affecting third-party software providers. Google highlighted that significant resources were likely dedicated to the initial attack, indicating potentially extensive damage and data theft.

 

Reuters

Sebastian Siemiatkowski, CEO of Klarna, says the fintech company has reduced its workforce by nearly 60% with artificial intelligence. Klarna's staff count has dropped from 7,400 to about 3,000, while revenues and customer numbers have increased. Klarna's AI chatbot now handles two-thirds of customer enquiries, equating to 700 full-time agents. Siemiatkowski acknowledged the societal impact of AI on jobs, and noted a significant shift in knowledge work is imminent. 

 

The Times

Lloyds is launching a six-month AI training course for its CEO, Charlie Nunn, and senior executives. The bespoke programme, developed with Cambridge Spark and experts from the University of Cambridge, aims to enhance the bank's digital services. Over 300 senior managers will participate, with more than 110 already completing the 80-hour course. Lloyds is also focusing on AI for customer engagement and operational efficiency while reducing its branch network.

 

The Times

Daily Mail

The UK's High Court is set to hear a class action lawsuit involving 1.6m claimants against 14 car manufacturers over the use of "defeat devices" in diesel vehicles. The devices allegedly falsified emissions results from 2010 to 2020, leading to higher pollution levels during normal driving. Martyn Day, co-founder of law firm Leigh Day, said: "The claims are worth a few thousand pounds each. The amount at stake is billions." A judgment is expected next summer, with potential implications for the Department for Transport regarding vehicle emissions.

 

The Times

Uncertainty surrounding tariffs and the economy is driving manufacturing chief executives to prioritise supply chain resilience and artificial intelligence  investments, according to a 2025 CEO Outlook survey conducted by KPMG. Sixty-three percent of the 400 manufacturing CEOs surveyed said supply chain challenges, including disruptions to global supply chains, are hindering their ability to innovate at scale. Some are refining or renegotiating their agreements with suppliers to incorporate tariff-related costs, while others are using dynamic pricing or financial hedging. Uncertainty in the business operating environment is “casting a very, very long shadow for manufacturers,” said Brian Higgins, KPMG’s U.S. industrial manufacturing sector leader. “Economic policy uncertainty has been difficult to navigate, to say the least.”

 

Manufacturing Dive

Chancellor Friedrich Merz met with the heads of Germany’s carmakers on Thursday, and afterwards urged the European Union to back off a policy prohibiting all new vehicles sold after 2035 from producing carbon emissions - a regulation which has been widely interpreted as a ban on combustion engines. “I will be pushing for decisions to be taken in the European Union that will enable comprehensive technological advancement and climate neutrality,” Merz told reporters. “Not with a date on the calendar that we cannot achieve, that is unrealistic, but with a clear perspective that also opens up the necessary future prospects for companies in Germany.”

 

Deutsche Welle

New York Times

Reuters

Ferrari has unveiled the technology for its first electric car, the Elettrica, marking a significant step in the luxury automaker's shift to battery power alongside its hybrid and petrol models. CEO Benedetto Vigna described the day as "historic," emphasising that the Elettrica, which will have a top speed of 310 km/h and a range of at least 530 km, is intended to complement the existing lineup rather than replace it. Despite being cautious about electrification compared to rivals, Ferrari aims for 20% of its models to be fully electric by 2030, as the company responds to the evolving preferences of younger, environmentally conscious consumers.

 

Reuters

Google is to invest €5bn ($5.82bn) in Belgium over two years to expand its St. Ghislain data centre facility and create 300 jobs. “With today’s announcement, Google is deepening its roots in Belgium, extending our investments in the country and creating new avenues for AI-driven transformation,” the company said. Belgian Prime Minister Bart De Wever said in a statement: “Google’s new investment is a powerful sign of trust in Belgium as a hub for digital innovation and sustainable growth.”

 

U.S. News

Wall Street Journal

Danish offshore wind company Ørsted has announced plans to reduce its workforce by 2,000 jobs, representing 25% of its total staff, by 2027. The company aims to enhance its focus on European operations and improve competitiveness in offshore wind. "We're committed to maintaining our position as a market leader in offshore wind, and we need to ensure that offshore wind becomes a key element of Europe's future energy mix and green transition," chief executive Rasmus Errboe said. "Therefore, we also need to reduce our costs for developing, constructing, and operating offshore wind farms to strengthen our competitiveness," he added.  Ørsted said its global workforce would reduce "through natural attrition, a reduction of positions, divestment, outsourcing, and redundancies."

 

Copenhagen Post

France 24

The Local

Wage growth in the UK has reached its lowest point in four years, according to analysis by the Recruitment and Employment Confederation (REC) and KPMG. The wage growth index for full-time staff fell to 50.2 in September, down from 50.6, indicating a slowdown. The report also found that hiring of full-time staff fell sharply in September. Vacancies also fell, with a steeper decline in the public sector than in the private sector across both permanent and temporary work. Jon Holt, group chief executive at KPMG, said: "With very little positive news out there on the economy in recent months, and lots of speculation about the Budget, it is understandable that employers are cautious with their hiring." 

 

City AM

The Times

An eJobs Romania survey reveals that 62% of Romanian employers are unprepared for the upcoming European directive on salary transparency, which is set to take effect in the latter half of next year. Only 16% currently implement a salary transparency policy in recruitment. Raluca Dumitra, Head of Marketing at eJobs Romania, noted: "The share of job ads displaying salaries still doesn't exceed 40%." Concerns about internal discontent and confidentiality persist, yet many employers acknowledge the benefits of transparency, such as building trust and attracting talent. The survey included 198 respondents from various industries.

 

Business Review