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

The Bank of England’s head of risk, Duncan Mackinnon, is to meet top bank and insurance bosses to outline the threat posed by Claude Mythos, the new AI system from Anthropic. Officials from the UK's Treasury, the Financial Conduct Authority and the National Cyber Security Centre will also attend. Mythos is currently deemed too dangerous for public release amid fears the AI model could breach the IT security of the financial system, and experts are working with Anthropic to help develop defences against it. The UK warning comes after US Treasury secretary Scott Bessent last week summoned the leaders of some of the largest US banks to discuss the risk posed by Anthropic’s latest AI model. JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley are among the banks testing the technology internally, according to Bloomberg. 

 

Bloomberg

Financial Times

The Daily Telegraph

Peter Magyar has declared victory in the Hungarian elections, ousting prime minister Viktor Orban after 16 years in power. Magyar’s pro-EU Tisza party are projected to have won 137 seats for a crucial two-thirds majority in the 199-member parliament, defeating Orban's nationalist Fidesz party. "Together, we liberated Hungary and got rid of the Orbán regime,” Magyar told ‌supporters.

 

Luxembourg Times

BBC News

The Guardian

The United States and the European Union are close to an agreement to coordinate ‌on producing and securing critical minerals. The potential deal would include incentives such as minimum price ​guarantees that could favour non‑Chinese suppliers, according to a draft “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China.

 

Bloomberg

Lufthansa pilots, represented by the Vereinigung Cockpit (VC) union, have announced a two-day strike starting today amid ongoing salary and pension disputes. The latest action follows four previous strikes this year. The last occurred on April 10. The strike will impact flights operated by Lufthansa, CityLine, and Eurowings, as well as Lufthansa Cargo. However, flights to certain Middle Eastern destinations will remain unaffected. The UFO union reported that a recent strike led to the cancellation of 90% of flights at Lufthansa and CityLine. "The Cockpit union feels compelled to take this step after the employers' side showed no real ​willingness to reach ​a solution ⁠in several collective bargaining disputes," VC President Andreas Pinheiro said. "Despite our deliberate decision not ​to take strike action over the Easter ​holidays, ⁠no serious offers have been made."

 

Hurriyet Daily News

Reuters

The Local Germany

The Dutch state plans to contest the significant pay increase awarded to KLM's CEO Marjan Rintel. KLM's 2025 annual report shows that Rintel's total compensation was more than 30% higher than the previous year, almost entirely due to variable pay and bonuses. The total amount came to nearly €1.6m. Finance Minister Eelco Heinen described the bonuses as “inappropriate,” especially at a time when  KLM is requesting wage moderation from employees. The state, which holds a 9% stake in Air France–KLM, said it aims to raise concerns at the upcoming shareholders' meeting. Heinen said that such bonuses “send the wrong message” during times of employee sacrifices.

 

NL Times

Thousands of Lithuanians on Wednesday protested outside parliament in Vilnius to oppose changes to a public broadcaster law amid concerns that the legislation could open the way to censorship. Lawmakers are set to debate the proposed changes to public broadcaster LRT’s governance amid backlash from critics who say the law would make it easier to dismiss LRT’s director general and leave the outlet vulnerable to political interference. Police estimated the “Hands Off Free Speech” protest attracted at least 10,000 people. 

 

Bloomberg

German dentist pension fund VZB, which caters to more than 10,000 dentists in the wider Berlin area and the city of Bremen, is suing its former managing director Ralf Wohltmann for about €50m ($58m). The claim covers alleged wrongdoing relating to the fund's investment in insurance startup Element, which filed for insolvency last year. The fund, which had about €2.2bn in assets under management by the end of 2024, faces losses of about €1.1bn. Bloomberg says the loss is indicative of the crisis affecting several German pension funds that invested in "opaque and risky corners of finance to prop up returns eroded by years of ultra-low interest rates."

 

Bloomberg

Italian Prime Minister Giorgia Meloni has ousted the chief executive officer of  defence group Leonardo, Roberto Cingolani, and replaced him with Lorenzo Mariani. The government renewed the terms of energy firm Eni's CEO Claudio Descalzi and Enel’s Flavio Cattaneo for another three years, as Meloni recalibrates the leadership of state-controlled firms ahead of re-elections which are set to take place by the end of next year.

 

Bloomberg

Reuters

AI companies have this year released many tools designed to automate tasks across professions - but in industries where accuracy, accountability and regulation matter, trust is emerging as the critical faultline.

 

Financial Times

Galeries Lafayette is reviewing its operations and partnerships in China as a prolonged slowdown in luxury demand continues to weigh on the market, though the group has no plans to exit the country. Management indicated that all strategic options are under consideration, reflecting weaker post-pandemic consumer spending, a property-driven economic slowdown and a shift toward domestic brands, with the company acknowledging its Beijing store may be oversized for current demand. China represents only a small portion of group revenue, which remains heavily concentrated in its Paris flagship store, which generates over €2bn annually, while broader international operations contribute around €1.1bn. The reassessment highlights ongoing challenges in the Chinese luxury sector, even as strong demand from US tourists has helped offset weaker Asian visitor spending in Paris, leaving overall sales at the flagship broadly flat in the first quarter.

 

Bloomberg

Nike has secured a major commercial victory by winning the rights to supply match balls for Uefa’s club competitions from 2027 to 2031, agreeing a deal worth around $45m per year, roughly double the current fee paid by Adidas. The move will end Adidas’s 25-year association with the Champions League and bring to a close the use of the iconic star-panel ball design, which has been a defining feature of the competition since 2001. The final appearance of the star ball is expected at the 2027 Champions League final in Madrid, after which Nike will introduce a new design developed in collaboration with Uefa and its club joint venture.

 

Bloomberg

Financial Times

The Guardian