Geopolitical tensions have increased cybersecurity risks and the regulator has been contacting financial entities it supervises to assess their cybersecurity defences in light of recent developments in AI

International News via Reuters:

The chief of Europe’s securities regulator said the risks from and potential speed of cyberattacks are growing, joining a chorus of warnings from financial supervisors on the threats posed by artificial intelligence models that are evolving quickly. 

Geopolitical tensions have increased cybersecurity risks and the regulator has been contacting financial entities it supervises to assess their cybersecurity defences in light of recent developments in AI, Verena Ross, chair of the European Securities and Markets Authority, said in an interview in Paris.

“We are closely watching how bringing AI models into this could increase the potential speed with which such attacks could happen,” she said, declining to comment on individual providers.

The financial sector has been rattled this month by reports that a new AI model, Mythos, made by U.S. AI company Anthropic, can find and exploit previously undiscovered cybersecurity vulnerabilities in IT systems. Regulators too are grappling with the challenges of keeping pace with the changes, according to Ross. 

“We collectively between the national and the EU level need to up our game to try to ensure that we have the capability to properly look at what financial entities are doing in this space and that we also build up our expertise so that we can oversee the critical third party providers,” Ross said.

ESMA, with two other European Union regulators, in November named 19 technology companies considered critical third-party providers to the bloc’s finance industry, as part of new regulation to improve tech resilience. Ross declined to comment on whether AI providers could be added to the group of critical providers at a later date.

RICH VALUATIONS, SUSPECT TRADES

Cyber risk is one underlying vulnerability that could coincide with a reassessment of valuations of financial assets, Ross said.

Big price swings, including a spike in the oil price following the outbreak of the U.S. and Israeli war on Iran, have rattled investors. Stock markets in the U.S. and elsewhere are near all-time highs, boosted by large tech companies.

“We are still looking very carefully at how the markets are reacting in terms of the overall valuations, which are still very, very high, so there’s a question of what type of events might turn that general positive feeling in the market around and might lead to quite some selloff,” said Ross.

The 58-year-old executive, who will be standing down from her post on October 31, said big swings in markets typically draw supervisory scrutiny for possible insider trading. The U.S. Commodity Futures Trading Commission is examining a series of trades in oil derivatives, media including Reuters have reported.

“Whenever you see very volatile markets that are driven by news and things like that, it’s an area that you automatically spend some attention and look at carefully. That’s quite natural,” she said, declining to be drawn on any specific regulatory activity. 

POLICING CRYPTO

National regulators in EU countries are responsible for overseeing crypto companies, and have given firms until the end of June to secure a licence or stop offering their services.

France’s regulator said in January that nearly a third of unlicenced crypto companies had not told the regulator whether they planned to get a licence. 

“One of the challenges we will face from the first of July onwards is how do we then deal with the policing of the perimeter,” Ross said.

The European Commission has proposed that ESMA gain more powers to supervise important cross-border financial market players, including major trading venues and crypto companies, as part of a wider package to centralise supervision and reduce fragmentation in the EU’s financial markets.

The plans are supported by the EU’s six biggest economies but are opposed by some countries.

“My impression is that there is indeed a political ambition now to try to move forward quickly,” Ross said.

Reporting by Elisa Martinuzzi and Elizabeth Howcroft; Editing by Hugh Lawson

All seven Berlin-based aircraft will be relocated to lower-cost airports in other European countries such as Sweden, Slovakia, Albania and Italy, the Ireland-based company said in a statement

International News via Reuters:

Low-cost carrier Ryanair announced on Friday that it will close its operating base in Berlin and reduce its flights to and from Germany’s capital by 50% in its winter schedule, citing higher fees and taxes.

All seven Berlin-based aircraft will be relocated to lower-cost airports in other European countries such as Sweden, Slovakia, Albania and Italy, the Ireland-based company said in a statement.

• Berlin-based pilots and cabin crew received notification on Friday of the intended base closure from October 24, according to the statement.

• “All flight crew can secure alternative positions elsewhere in the Ryanair network across Europe,” Ryanair said.

• Ryanair has repeatedly criticised Germany and its airports for the level of fees and taxes.

• International airlines have long complained that flying to and from German airports was too expensive and have threatened to reduce their presence.

• Germany’s government approved plans on April 1 to reduce air traffic tax from July, taking it back down to May 2024 levels in an attempt to boost the sector.

Reporting by Klaus Lauer and Thomas SeythalEditing by Miranda Murray

The annual climbing season for the 8,849-metre (29,032-foot) summit runs from April to May, when the weather conditions are most suited to reaching the windswept, icy peak

International News via Reuters:

Hundreds of mountaineers are stranded at the Himalayan base camp for Mount Everest as a crevasse strewn with chunks of ice, including one towering block, delays the opening of the route to the world’s tallest peak, officials and climbers said on Friday.

The annual climbing season for the 8,849-metre (29,032-foot) summit runs from April to May, when the weather conditions are most suited to reaching the windswept, icy peak.

But a 100-foot (30-metre) serac, or dangerous chunk of ice, blocks the path above base camp this year. 

Seasoned Sherpa climbers, known locally as “icefall doctors”, have so far been unable to fix their ropes, place ladders and carve a safe route through the treacherous Khumbu icefall to Camp II. Meanwhile the climbers, chafing to start their ascent while the weather is at its best, can only wait.

“Expeditions are all being delayed because of the impasse,” Garrett Madison of U.S.-based Madison Mountaineering told Reuters from base camp.

“It looks likely to fall imminently, however, it could take some time,” said Madison of the ice tower. He is leading a team of international climbers on his 16th ascent. 

ROUTE USUALLY HAS OPENED BY NOW

The route typically opens by the third week of April, said Himal Gautam of Nepal’s Department of Tourism.

“If the serac melts or collapses now, allowing the ‘icefall doctors’ to open the route, climbers could still make their summit bids on schedule,” Gautam added.

If not, he said, authorities would send more Sherpa climbers to assess the risk and explore alternative routes. Officials said a team of eight “icefall doctors” is at base camp.

Mingma Sherpa, an 11‑time Everest summiteer leading an international team at base camp, said acclimatisation rotations and the ferrying of gear to upper camps have been delayed.

Everest straddles the border between Nepal and China’s Tibet region and can be climbed from both sides, though most climbers approach from the Nepali side.

Mountain climbing is a major source of income and employment for Nepal, home to eight of the world’s 14 highest peaks. Authorities have issued 410 Everest permits so far this season, at a cost of $15,000 each. There is no limit on how many permits are issued, which has led to criticism from mountaineering experts about the risk of long queues forming in what is known as the death zone because the air is dangerously thin.

Among those waiting to ascend were 98 climbers, including 24 women, from China, the most from any country so far.

Official data also showed 49 from the United States and 46 from India.

Lukas Furtenbach of Furtenbach Adventures, based in Austria, who is leading a group of 40 international climbers, said he expected the number of climbers from the Nepal side to rise as China has closed the Tibetan side for climbers this year for unknown reasons, prompting them to come to the south.

Reporting by Gopal Sharma; Editing by Clarence Fernandez and Barbara Lewis

The pan-European STOXX 600 index declined 1% to 608.2 points, as of 0903 GMT, to a more than two-week low

International News via Reuters:

European shares fell on Friday and were set to end the week lower, as investors worried about risks to growth and a fresh inflation shock, with energy supplies still severely disrupted by tensions in the Middle East. 

The pan-European STOXX 600 index declined 1% to 608.2 points, as of 0903 GMT, to a more than two-week low. It was on track to log a weekly decline of about 3% after rising for four consecutive weeks.

Major regional markets mirrored the decline.

Iran showcased its control over the vital Strait of Hormuz on Thursday, releasing footage of commandos storming a large cargo vessel from speedboats. In response, U.S. President Donald Trump ordered the Navy to “shoot and kill” Iranian boats laying mines in the strait and to enhance demining operations.

Trump’s comments came just days after he said he would indefinitely extend what had been a two-week ceasefire with Iran to allow for further peace talks.

“The conflict has not improved in any meaningful way,” said Luca Bindelli, head of investment strategy at Lombard Odier. “Negotiations are stuck, risks around oil transit remain high, and the situation is still a source of uncertainty for markets and the economy.”

The benchmark Brent crude remained above $100 per barrel, intensifying concerns about energy supply disruptions and their inflationary impact. [O/R]

Most sectors traded in the red, with aerospace and defence leading declines, down 2.8%.

Technology stocks gained 0.4%, helped by a 5.6% jump in SAP shares after the German software maker beat first-quarter profit estimates on strong growth in its cloud business.

In other movers, Tomra tumbled 21% to the bottom of the STOXX 600 after the Norwegian recycling technology provider missed first-quarter revenue and profit expectations.

Sweden technology and industrial group Indutrade was also among the laggards, falling 12% after it reported first-quarter net sales that missed analyst expectations.

German business sentiment deteriorated more than anticipated in April, amid the Iran conflict, making companies increasingly pessimistic.

Focus now turns to next week’s European Central Bank meeting, with markets pricing in a 76% chance that policymakers will leave rates unchanged, according to data compiled by LSEG.

However, with energy flows through the Strait of Hormuz showing no signs of resuming, traders still anticipate rate hikes later this year.

“With the ECB’s focus on inflation expectations and fears that war-related effects could push companies to pass on costs, we’re likely to see the ECB eventually still wanting to raise rates, which we think they’ll then have to roll back in 2027,” Bindelli said.

Reporting by Ragini Mathur; Editing by Eileen Soreng and Rashmi Aich