☕️ Bank of England hikes rates to 4%

Hi there, this is your daily ☕️ Finpresso.

In today's newsletter:

🏦 Bank of England hikes rates to 4% on oil shock

📈 US jobless claims hit 57-year low

🔓 OpenAI's hacking AI raises crypto security alarms

🤖 China blocks SoftBank's $5.4B ABB robotics deal

Plus: 🌍 10 macro stories, 🏢 11 corporate stories, and 📑 6 research & reports.

📊 Before The Bell

• The Bank of England raised its base rate to 4% from 3.75%, its first hike in three years, and signaled another could follow unless the Iran conflict and its inflationary fallout ease.
• Eight of nine committee members backed the quarter-point move, with one pushing for a half-point rise; the Bank now sees UK inflation peaking at 4.9% in mid-2026, well above its July forecast, driven by oil persistently above $100 a barrel.
• Governor Andrew Bailey said the rise "shouldn't be seen as the first in an inevitable long sequence," but with the next decision due on 17 December, analysts expect a further hike as the energy cap rises toward £2,150 a year in January and hits mortgage borrowers.

• US weekly jobless claims fell to a seasonally adjusted 189,000 in the week ended October 31, the lowest in 57 years, signalling labor market resilience even as the Middle East conflict holds back hiring.
• The figure undershot economists' 196,000 forecast and matched a mid-July reading last seen in 1969; claims have stayed mostly below the 200,000 mark since mid-September, with no state reporting a notable jump last week.
• Separately, stronger third-quarter productivity cut labor costs for the first time in over a year, reinforcing views that the job market isn't fuelling inflation and giving the Fed more room to address price pressures from the war.

• OpenAI says its AI can mass-produce working attacks that seize control of computers running Linux, the operating system underpinning much of the world's IT, including crypto and blockchain systems.
• The system found 948 flaws in the Linux Kernel at a cost of $1,279 each, writing a functioning exploit for every one on a standard Linux desktop with normal security protections switched on.
• The exploits let someone with only limited access, such as a basic user account, take full control of a machine; OpenAI's tool also drafts a fix, with human researchers reviewing results before they reach Linux maintainers.

• Chinese regulators have rejected SoftBank's $5.4 billion purchase of ABB's robotics division, ABB said, blocking a deal central to founder Masayoshi Son's push into AI-driven physical automation.
• The deal, signed in October 2025, valued the unit at $5.375 billion, with SoftBank responsible for securing clearance; China's National Development and Reform Commission told the firm it would not approve the purchase of the robotics business there.
• SoftBank shares fell about 5% on Thursday, compounded by weakness in Arm after a soft outlook, though both companies remain in talks and have not called the deal off, leaving its fate in doubt.

🌍 Macro News

• Treasuries rallied as tech selloff drove investors toward safe havens. LINK
• Moonshot sought restricted Nvidia Blackwell access by renting European data-center capacity. LINK
• White House review flagged SEC crypto broker-dealer proposal economically significant. LINK
• CFTC won't pursue clearinghouses using crypto trust firms for settlements. LINK
• Regulators questioned banks after Binance hack over crypto-related security risks. LINK
• Ukraine central bank opposes draft crypto law, seeks revisions before vote. LINK
• Iran exempted India, China, Iraq and Qatar from Hormuz oil transit restrictions. LINK
• French lawmakers unanimously rejected Lecornu's 2027 budget, pressuring bonds before strikes. LINK
• OpenAI shifted its tone after voters rejected data centers in ballot measures. LINK
• Hammack said restrictive policy is needed to return inflation to 2%. LINK

🏢 Corporate News

• Amundi launched Ethereum-based share class for its STOXX Europe 600 fund. LINK
• Agility Robotics will go public through SPAC merger, raising $465 million. LINK
• Zipline raised $1.5 billion at $21.5 billion valuation, expanding Walmart partnership. LINK
• Google will invest $17 billion in Wyoming's first data center. LINK
• OpenAI may pursue 2027 IPO as corporate sales grow, Brockman said. LINK
• Amazon and Uber Eats let Prime members order restaurant delivery through Amazon. LINK
• Micron paused Taiwan plant as union seeks larger share of memory profits. LINK
• Block reserved $764 million for DOJ settlement over money-laundering control failures. LINK
• Cloudflare shares surged after revenue and profit beat forecasts. LINK
• Microsoft is tightening oversight of neocloud deals and exiting risky projects. LINK
• Unity shares surged after earnings beat estimates and upbeat quarterly guidance. LINK

📈 Stocks

📑 Research & Reports

• The AI stocks most people aren't watching yet: flags under-the-radar AI names beyond the megacaps, in a free briefing. Read the free briefing
• Google TPUv7 chips challenged Nvidia in benchmarks for long-context AI inference. LINK
• Anthropic is developing AI systems twice as fast, safety monitor says. LINK
• Enterprise tech spending rose 20.6%, but AI budgets lack measurable business returns. LINK
• FATF urged steps to disrupt scam compounds amid rising global fraud losses. LINK
• US oil supply and global glut blunted Middle East conflict's crude shock. LINK
• India's renewable expansion cut fossil-fuel import bills by over $100 billion. LINK

📅 Market Calendar

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