Closing summary
The $1trn sell-off of global technology shares sparked by the emergence of upstart Chinese AI app, DeepSeek, has moved to accusations of intellectual property theft and raised potential national security concerns in the US.
ChatGPT maker OpenAI has warned that Chinese startups are “constantly” using its technology to develop competing products.
OpenAI and its partner Microsoft, which has invested $13bn in the San Francisco-based AI developer, have been investigating whether proprietary technology had been obtained in an unauthorised manner through a technique known as “distillation”.
In the UK, chancellor Rachel Reeves made a number of announcements on economic growth, including confirming the heavily-trailed plan to revive plans to build a controversial third runway at London’s Heathrow airport.
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Thank you for reading. Take care - MS
Bank of England governor Andrew Bailey has backed the government’s push to ease regulation, but warned that compromising financial stability would harm long-term growth - as seen in the wake of the 2007-8 financial crisis.
Bailey told MPs on the Treasury Committee on Wednesday afternoon that he was very supportive of the efforts made by both Labour and Tory governments to boost growth and competitiveness across the City.
However, he made clear that financial stability could not be compromised in the process.
Fundamentally, financial stability is a foundation for growth. So there isn’t a trade-off in the fundamental sense. Of course, we’ve seen the impact that a loss of financial stability can have in the financial crisis.
Bailey also stressed that low growth was not a unique UK problem, and if anything, the relative economic health of the US made it an outlier.
There is an argument…that it was the loss of financial stability during the financial crisis that had an impact on investment in the [UK] economy and has had an impact on growth.
But Bailey said there were still “choices to be made” about the way watchdogs deployed regulation, in order to maintain financial stability while also supporting growth and competitiveness of the financial services sector and wider UK economy.
