WEBVTT - China-UK Hacking Exposed, Reeves Needs £50B, Griffin: AI Lacks Edge

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Bloomberg Day BAQT podcast. Good morning, It's Thursday,

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<v Speaker 2>the sixteenth of October. I'm Caroline hepkat in London and.

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<v Speaker 1>I'm Stephen Caroline Brussels. Coming up today, British officials revealed

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<v Speaker 1>that China has been accessing classified UK systems for at

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<v Speaker 1>least ten years.

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<v Speaker 2>A leading economic think tank says the Chancellor Rachel Reeves

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<v Speaker 2>needs a fifty billion pound buffer if she wants to

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<v Speaker 2>balance the UK's books in the years ahead.

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<v Speaker 3>Plus not such smart money.

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<v Speaker 1>Billionaire investor Ken Griffin says Generative AI isn't helping hedge

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<v Speaker 1>funds beat the market.

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<v Speaker 2>Let's start with a roundup of our top stories.

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<v Speaker 1>Chinese state actors have systematically compromised the UK government's classified

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<v Speaker 1>computer systems for more than a decade. Bloomberg has learned

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<v Speaker 1>China routinely accessed Britain's secret information, in one example by

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<v Speaker 1>purchasing a data center which held confidential intelligence. The news

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<v Speaker 1>comes as politicians in Westminster are debating if China is

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<v Speaker 1>a threat after a court case around alleged Chinese spies collapsed.

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<v Speaker 3>Leader of the Opposition Kenny.

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<v Speaker 1>Badenock says, the Prime Minister has questions to answer.

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<v Speaker 4>He cannot explain why he could not see this case through.

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<v Speaker 5>He should have seen this case through.

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<v Speaker 4>And let me be clear, mister speaker, about what has happened.

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<v Speaker 4>A serious case involving national security has collapsed because this government.

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<v Speaker 5>Is too weak to stand up to China now.

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<v Speaker 1>In response to the government says that the previous conservative

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<v Speaker 1>Conservative administration did to not desiccate designate China as a threat.

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<v Speaker 1>Several government officials who spoke to Bloomberg anonymously say the

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<v Speaker 1>scale of cybersecurity breaches show Beijing poses a significant threat

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<v Speaker 1>to national security. A recent breach of a major US

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<v Speaker 1>based cybersecurity provider has also been blamed on state backed

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<v Speaker 1>hackers from China. Chinese officials have not responded to Bloomberg's

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<v Speaker 1>requests for comment.

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<v Speaker 2>US Treasury Secretary Scott Bessent is suggesting a new pause

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<v Speaker 2>on tariffs for Chinese goods if the country stops its

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<v Speaker 2>plans for rare earth market dominance. The two countries have

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<v Speaker 2>both significantly ramped up their threats and sanctions over the

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<v Speaker 2>past week. The US Treasury Secretary also took aim at

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<v Speaker 2>one of China's top negotiators, calling him quote unhinged.

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<v Speaker 6>Perhaps the Vice Minister who showed up here with variancendiari

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<v Speaker 6>language on August twenty eighth has gone rogue instead quote,

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<v Speaker 6>China will cause global chaos if.

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<v Speaker 3>If the port shipping fees go through.

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<v Speaker 2>Bessend added that he wants to coordinate an international response

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<v Speaker 2>from democracies to undermine China's plans to control the rare

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<v Speaker 2>earth metals market. He added that market moves wouldn't influence him,

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<v Speaker 2>saying that the US won't negotiate with China quote because

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<v Speaker 2>the stock market is going down.

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<v Speaker 1>The UK's Chancellor Rachel Reeves needs to raise her fiscal

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<v Speaker 1>boffer five fold to have a better than even chance

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<v Speaker 1>of avoiding more tax rises and spending cuts. That's according

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<v Speaker 1>to the Institute for Fiscal Studies, which warns that restoring

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<v Speaker 1>the current nine point nine billion pound margin won't be

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<v Speaker 1>enough to balance the book's long term with more. Here's

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<v Speaker 1>Bimberg's Crispitz fifty billion.

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<v Speaker 7>That's the figure the IFS says is needed to avoid

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<v Speaker 7>what it calls a fiscal groundhog day, where the government

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<v Speaker 7>repeatedly faces pressure to tighten policy from one forecast to

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<v Speaker 7>the next by comparison, the leading economics think tank says

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<v Speaker 7>that restoring the government's current raiser thin headroom would still

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<v Speaker 7>only give Reeves a one in three chance of meeting

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<v Speaker 7>her pledge to balance spending long term. The analysis highlights

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<v Speaker 7>the scale of the challenge facing the Chancellor ahead of

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<v Speaker 7>what's expected to be a difficult budget later this month

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<v Speaker 7>in London. Chris Pitt Bloomberg Radio.

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<v Speaker 2>France's Prime Minister Sebacia Lecornu may be able to survive

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<v Speaker 2>to no confidence motions. Today he won the backing of

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<v Speaker 2>the Socialist Party after announcing the suspension of contentious pension changes.

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<v Speaker 2>Lecorn Who's probable survival brings some respite from the recent

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<v Speaker 2>political turmoil that has driven up France's boring costs. The

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<v Speaker 2>government still faces major fiscal challenges, though Charlotte de Montpellier's

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<v Speaker 2>senior economists at IG has told Bloomberg the current situation

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<v Speaker 2>isn't much of a relief for markets.

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<v Speaker 5>Given the political landscape currently. I think we can expect.

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<v Speaker 2>That if it goes through, the budget will be.

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<v Speaker 5>More expansionary than this one, so it.

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<v Speaker 2>Means that the deficit to GDP ratio will be worse

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<v Speaker 2>than the one that is.

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<v Speaker 5>Currently the imph next year.

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<v Speaker 2>Charlotte de Montpellier's senior economists at ing speaking then, these

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<v Speaker 2>socialists have already warned that their decision not to Censulo

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<v Speaker 2>Corny today doesn't give the premier a blank check.

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<v Speaker 1>US President Donald Trump says he's authorized the CIA to

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<v Speaker 1>take covert action in Venezuela in order to stem a

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<v Speaker 1>flow of drugs and illegal migrants to the United States.

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<v Speaker 1>It confirms an earlier report in The New York Times,

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<v Speaker 1>which said the agency would be enabled to carry out

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<v Speaker 1>lethal operations in Venezuela and wider action in the Caribbean.

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<v Speaker 1>Speaking at the White House, Trump rebuff to reporters' question

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<v Speaker 1>on whether the CIA has the authority to take out

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<v Speaker 1>Venezuelan President Nicholas Maduro.

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<v Speaker 8>I think Venezuela is feeling heat, but I think a

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<v Speaker 8>lot of other countries are feeling heat too. We're not

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<v Speaker 8>going to let this country, our country, be ruined because

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<v Speaker 8>other people want to drop. As you say, their worst,

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<v Speaker 8>they have given us their worst, I.

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<v Speaker 1>Was President Trump, speaking as the US has already hit

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<v Speaker 1>half a dozen voats in the Southern Caribbean since the

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<v Speaker 1>start of September, saying the vessels were transporting drugs to America.

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<v Speaker 2>Now, Bloomberg understands that EU countries will begin debating next

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<v Speaker 2>week just how much preferential treatment to give European firms

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<v Speaker 2>bidding for public contracts.

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<v Speaker 5>Bloomberg's Mihil Kubala has more.

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<v Speaker 9>The EU is looking for ways to boost homegrown companies

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<v Speaker 9>and strengthen its industrial base, sources have told Bloomberg France

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<v Speaker 9>is leading the drive to prioritize European companies in public

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<v Speaker 9>contracts worth about two and a half trillion euros. That's

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<v Speaker 9>a market equivalent to about fifteen percent of the bloc's GDP.

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<v Speaker 9>The push is a way to counterbalance protection as US

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<v Speaker 9>trade policies or Chinnel's weaponization of certain raw materials. Still,

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<v Speaker 9>officials war that implementing the buy European approach could be

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<v Speaker 9>complex in some sectors. Defense, for example, the block is

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<v Speaker 9>still heavily reliant on American suppliers in Brussels.

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<v Speaker 1>Michael Kubala Bloomberg Radio, and those are your top stories

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<v Speaker 1>on the market. It's the MSCIS Specific Index seven tents

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<v Speaker 1>higher this morning. The NICK and Tokyo's up by one

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<v Speaker 1>point three percent. Eurostocks fifty futures down four tenths this morning,

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<v Speaker 1>as we're looking at the Bloomberg Dollar Spot Index, a

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<v Speaker 1>tenth of one percent weeker, the euros at one sixteen

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<v Speaker 1>fifty six, the tenure treasury yield holding steady at four

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<v Speaker 1>point zero two percent.

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<v Speaker 2>Well, in a moment, we'll bring you more on the

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<v Speaker 2>UK cybersecurity breach and also why Citadel's Ken Griffin isn't

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<v Speaker 2>impressed by.

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<v Speaker 5>AI, at least not yet.

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<v Speaker 2>There's also another story though here that's got our attention today.

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<v Speaker 2>Perhaps I should say caught our eye haha. Could smart

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<v Speaker 2>glasses replace our smartphones?

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<v Speaker 1>I'm really glad that someone else has joined ludd Eyede's

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<v Speaker 1>corner with you and me, Caroline, who's essentially somewhat suspicious

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<v Speaker 1>of new technology.

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<v Speaker 3>This has been Burke.

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<v Speaker 1>Opinion column as Katherine Thorbeck has been writing about the

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<v Speaker 1>massive amounts of money that big tech companies are pouring

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<v Speaker 1>into developing smart glasses, doing things like making them look

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<v Speaker 1>better of course making them more functional. AIS helping with

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<v Speaker 1>that as well. She points to a recent survey of

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<v Speaker 1>eight con trees, which includes China, India and the US

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<v Speaker 1>stow and that forty eight percent of people were interested

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<v Speaker 1>in purchasing a pair of smart glasses in.

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<v Speaker 3>The next year.

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<v Speaker 1>The trust of Catherine's argument, though, was essentially they might

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<v Speaker 1>have the technopanies might have to go a bit further

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<v Speaker 1>to try and convince us that we need this technology.

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<v Speaker 2>Look, I think fifty to fifty is actually pretty good.

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<v Speaker 2>To my mind, is a bit kind of Ready Player

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<v Speaker 2>one or even Stephen They Live, which is a really

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<v Speaker 2>old movie reference. Basically, are we in this kind of

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<v Speaker 2>post privacy sort of world where you're going to wear

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<v Speaker 2>those smart glasses. I always thought that headphones might not

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<v Speaker 2>take off. They are absolutely ubiquitous. I'm surprised that people

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<v Speaker 2>wear them at all times of the day and night.

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<v Speaker 2>So maybe it's not so far fetched that people will

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<v Speaker 2>also wear tech on their faces on their glasses.

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<v Speaker 1>We need to draw two lists after this conversation. One

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<v Speaker 1>is pieces of technology we thought wouldn't take off but did.

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<v Speaker 1>Another is films that Stephen has not seen to get

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<v Speaker 1>reference in our conversations. You can read Captain's piece at

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<v Speaker 1>Bloomberg dot com Forward slash Opinion.

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<v Speaker 2>Okay, let's get to our top story here in the UK,

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<v Speaker 2>Chinese state actors have compromised classified UK government systems for

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<v Speaker 2>more than a decade. We now learn joining US is

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<v Speaker 2>our chief Asia correspondent Roslyn matheson Good Morning, Roz. Look

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<v Speaker 2>what do we know that about this security breach? What

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<v Speaker 2>information was accessed and also how.

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<v Speaker 10>This was our exclusive reporting which shows that they were

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<v Speaker 10>routinely and successfully accessing low and medium level classified information

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<v Speaker 10>for at least a decade. And this is things like

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<v Speaker 10>private communications, some diplomatic cables, discussion around government policy, so

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<v Speaker 10>it wasn't top secret information, but it was still classified

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<v Speaker 10>information and doing so it seems routinely, and one person

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<v Speaker 10>told us endlessly for about ten years without detection, and

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<v Speaker 10>some of it was potentially through a particular data center

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<v Speaker 10>that was sold to an entity that had a link

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<v Speaker 10>to China some time ago.

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<v Speaker 5>That's now been tightened up.

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<v Speaker 10>But the fact is that it seems like these Chinese

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<v Speaker 10>state actors were just coming in constantly and getting fairly

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<v Speaker 10>low level information, but information that's still class is classified

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<v Speaker 10>and information that could be used potentially against the UK

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<v Speaker 10>given it's about things like again that the formulation of

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<v Speaker 10>government policy ross.

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<v Speaker 1>This exclusive reporting is coming after the collapse of a

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<v Speaker 1>trial of two men accused of spying for China because,

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<v Speaker 1>according to prosecutors, successive British governments had declined to formally

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<v Speaker 1>designate China as a threat to national security.

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<v Speaker 3>Could that designation change now?

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<v Speaker 10>Well, there's obviously a bit of pressure again around there.

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<v Speaker 10>So this is something that's come up for many years,

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<v Speaker 10>and not just under this administration. Is you have China

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<v Speaker 10>hawks in various governments saying that the UK needs to

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<v Speaker 10>move forward and do this. And obviously the fact that

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<v Speaker 10>this case was seen to have collapsed in part because

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<v Speaker 10>of the UK not using this designation has brought it

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<v Speaker 10>back into the conversation. But you can see from some

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<v Speaker 10>of the witness statements that we're given from bureaucrats at

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<v Speaker 10>least is that they couch this as a complex relationship

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<v Speaker 10>with China, between the China and UK, and that they

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<v Speaker 10>say that the UK is ready to confront China, it's

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<v Speaker 10>ready to compete with China, but also it does want

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<v Speaker 10>an economic relationship with China, and just points again to

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<v Speaker 10>that type rope that many UK governments seem to walk,

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<v Speaker 10>and that the Starma government certainly is very much walking,

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<v Speaker 10>is that it wants that door open to China, it

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<v Speaker 10>needs that economic relationship and so you've got to make

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<v Speaker 10>political calculations out of that.

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<v Speaker 2>And yet this is in a complex, you know, global situation.

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<v Speaker 2>It also comes as US authorities have issued these warnings

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<v Speaker 2>about significant cyber threat because of a breach of a

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<v Speaker 2>major US based cybersecurity provider F five. They call it

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<v Speaker 2>a catastrophic breach. And again this is something that is

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<v Speaker 2>blamed on state backed hackers from China. So there's also

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<v Speaker 2>a broader concern and it's about you know, the US

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<v Speaker 2>China relation and the UK US China relationship.

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<v Speaker 10>Well, that's right, and in fact the UK has been

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<v Speaker 10>caught up in this because there's been warnings issued here

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<v Speaker 10>because of customers potentially have been breached in the UK,

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<v Speaker 10>not just in the US. And some of these are

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<v Speaker 10>really big companies and they use some of these systems,

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<v Speaker 10>and you know, the reporting shows that these hackers possibly

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<v Speaker 10>stole parts of source code which are used in application services,

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<v Speaker 10>again by very big companies, and so you've had warnings

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<v Speaker 10>to companies across the US but also in the UK

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<v Speaker 10>that they need to go and check their systems and

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<v Speaker 10>they're going to be seeing if there's been any infiltration.

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<v Speaker 10>And so certainly that has also come across here doubt

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<v Speaker 10>will be part of the conversation about how countries not

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<v Speaker 10>to see UK, but the US and well, frankly everywhere

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<v Speaker 10>are handling this proliferation of cyber attacks that come from

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<v Speaker 10>China actors, but also from actors all around the world,

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<v Speaker 10>and how do you bulletproof your systems and also how

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<v Speaker 10>do you respond to the fact that often it's state

0:13:22.120 --> 0:13:23.640
<v Speaker 10>barked rols.

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<v Speaker 3>Have we heard any thing from China about all of this, It's.

0:13:26.640 --> 0:13:28.079
<v Speaker 5>Interesting they've been pretty quiet.

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<v Speaker 10>I mean they did when the case was dropped against

0:13:30.400 --> 0:13:33.480
<v Speaker 10>these two people in the UK, they did say it

0:13:33.559 --> 0:13:37.560
<v Speaker 10>showed the case was without merit. And they've also there's

0:13:37.559 --> 0:13:41.000
<v Speaker 10>been a few editorials in China state media in recent

0:13:41.120 --> 0:13:44.760
<v Speaker 10>days saying that this shows that there's just an unnecessary

0:13:44.800 --> 0:13:47.720
<v Speaker 10>level of paranoia, as they call it in the UK

0:13:48.080 --> 0:13:50.240
<v Speaker 10>about China, and there are people who are tempting to

0:13:50.360 --> 0:13:53.440
<v Speaker 10>use all of this to try and cause problems in

0:13:53.480 --> 0:13:55.959
<v Speaker 10>the relationship. But you haven't had a lot of very

0:13:56.000 --> 0:14:00.520
<v Speaker 10>public comments made from China specifically about this by case

0:14:00.640 --> 0:14:03.840
<v Speaker 10>with the two being dropped, and perhaps they just want

0:14:03.840 --> 0:14:06.080
<v Speaker 10>to let that be because again, China has its own

0:14:06.080 --> 0:14:10.080
<v Speaker 10>incentive to have the relationship stay on and improved footing

0:14:10.520 --> 0:14:13.200
<v Speaker 10>with the UK again mostly around train and investment.

0:14:13.640 --> 0:14:15.760
<v Speaker 2>Okay, Rolls, thank you so much for being with us.

0:14:15.760 --> 0:14:18.600
<v Speaker 2>That is our chief Asia correspondent rose In Mathison, thank

0:14:18.640 --> 0:14:23.040
<v Speaker 2>you stay with us. More from Bloomberg daybaqube coming up

0:14:23.080 --> 0:14:23.560
<v Speaker 2>after this.

0:14:25.400 --> 0:14:27.600
<v Speaker 1>What's Citadel's Cam Griffin is the I just big name

0:14:27.640 --> 0:14:32.000
<v Speaker 1>and finance to weigh in on the subject of artificial

0:14:32.120 --> 0:14:35.480
<v Speaker 1>intelligence as companies have been investing massive amounts of money

0:14:35.480 --> 0:14:38.480
<v Speaker 1>in the technology, but the debate over what returns it

0:14:38.520 --> 0:14:42.040
<v Speaker 1>can provide is continuing. Cam Griffin saying that AI isn't

0:14:42.080 --> 0:14:46.560
<v Speaker 1>meaningfully affecting hedgephones so far. Our reporter to out bios

0:14:46.560 --> 0:14:47.640
<v Speaker 1>here with more details.

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<v Speaker 3>TIA. What is Cam Griffin's view on this? Then?

0:14:50.800 --> 0:14:51.640
<v Speaker 5>Yeah, it's interesting.

0:14:51.640 --> 0:14:54.080
<v Speaker 11>So he was speaking at an investors conference in New

0:14:54.160 --> 0:14:58.520
<v Speaker 11>York and he made his views on this issue pretty clear. Essentially,

0:14:58.640 --> 0:15:02.360
<v Speaker 11>he says there are ways that AI can help enhance productivity,

0:15:02.720 --> 0:15:05.760
<v Speaker 11>but when it comes to actually helping hedge funds beat

0:15:05.800 --> 0:15:08.880
<v Speaker 11>the market and generate alpha, he thinks it falls short.

0:15:09.440 --> 0:15:12.680
<v Speaker 11>And when talking about his own shop Citadel, Griffin said

0:15:12.720 --> 0:15:17.880
<v Speaker 11>that AI hasn't replaced meaningful research. This isn't the first time,

0:15:18.080 --> 0:15:21.680
<v Speaker 11>he's made sort of skeptical comments about AI. He's previously

0:15:21.720 --> 0:15:26.000
<v Speaker 11>called it a limited tool when it comes to investment analysis,

0:15:26.520 --> 0:15:30.520
<v Speaker 11>and has typically downplayed fears that the tech could replace

0:15:30.600 --> 0:15:34.400
<v Speaker 11>human jobs in the past. So fundamentally he thinks that

0:15:34.480 --> 0:15:39.160
<v Speaker 11>it's unlikely to create widespread change, So it will have impact,

0:15:39.280 --> 0:15:42.760
<v Speaker 11>but not perhaps in the profound way that others in

0:15:42.800 --> 0:15:45.000
<v Speaker 11>the industry have come to expect.

0:15:45.320 --> 0:15:46.000
<v Speaker 3>Well, that's the thing.

0:15:46.040 --> 0:15:48.640
<v Speaker 2>It's a lively debate in the industry, and one you know,

0:15:48.720 --> 0:15:50.800
<v Speaker 2>with a lot of money potentially resting on it.

0:15:50.840 --> 0:15:51.840
<v Speaker 5>What are the other views?

0:15:52.640 --> 0:15:57.480
<v Speaker 11>So this view definitely does set Griffin apart from his peers.

0:15:57.520 --> 0:16:00.760
<v Speaker 11>I mean, just take the example of JP Morgan CEO

0:16:00.920 --> 0:16:04.920
<v Speaker 11>Jamie Diamond. He recently said that the Bank spends two

0:16:05.160 --> 0:16:10.360
<v Speaker 11>billion dollars a year developing AI technology, but also crucially

0:16:10.400 --> 0:16:13.160
<v Speaker 11>that they save the same amount because of the tech.

0:16:13.560 --> 0:16:16.080
<v Speaker 11>He was speaking to Bloomberg last week and he was

0:16:16.240 --> 0:16:20.040
<v Speaker 11>very clear about just how impactful he thinks that AI

0:16:20.280 --> 0:16:23.240
<v Speaker 11>is and how impactful it could be in the future.

0:16:23.320 --> 0:16:26.200
<v Speaker 11>He said the Bank already has hundreds of use cases

0:16:26.520 --> 0:16:29.120
<v Speaker 11>for it and only expects that to grow, and in

0:16:29.200 --> 0:16:32.760
<v Speaker 11>terms of its impact in the world, he compared it

0:16:32.800 --> 0:16:36.640
<v Speaker 11>to something like the printing press, so hugely significant in

0:16:36.720 --> 0:16:40.000
<v Speaker 11>terms of history and its impact.

0:16:39.680 --> 0:16:40.360
<v Speaker 5>On the future.

0:16:40.800 --> 0:16:44.280
<v Speaker 11>But we have also heard from multiple others in the

0:16:44.280 --> 0:16:48.360
<v Speaker 11>world of financial services. They've praised AI, and that includes

0:16:48.400 --> 0:16:52.480
<v Speaker 11>a former Treasury Secretary Larry Summers. He called the emergence

0:16:52.480 --> 0:16:57.200
<v Speaker 11>of AI a moment of stunning technological possibility. In the UK,

0:16:57.320 --> 0:16:59.960
<v Speaker 11>there's also been Charlie Nunn, the CEO of Lloyd's Bank,

0:17:00.080 --> 0:17:03.600
<v Speaker 11>he said the AI is core to the firm's operations,

0:17:03.680 --> 0:17:07.280
<v Speaker 11>and just recently Golden Sachs CEO David Solomon released a

0:17:07.359 --> 0:17:11.440
<v Speaker 11>vision statement about how the company is going to reorganize

0:17:11.480 --> 0:17:16.120
<v Speaker 11>itself to fully benefit from AI. So in terms of

0:17:16.160 --> 0:17:19.800
<v Speaker 11>the financial services sector at least, Griffin seems to be

0:17:19.880 --> 0:17:21.400
<v Speaker 11>certainly in the minority here.

0:17:22.480 --> 0:17:24.080
<v Speaker 3>Outside of the financial industry though too.

0:17:24.119 --> 0:17:25.920
<v Speaker 1>But I mean, what do we know about the broader

0:17:25.920 --> 0:17:28.280
<v Speaker 1>effects that AI is already having on the economy.

0:17:29.600 --> 0:17:32.080
<v Speaker 11>Well, there are mixed opinions about this, so you know,

0:17:32.119 --> 0:17:34.800
<v Speaker 11>on the one hand, there are some that argue that

0:17:34.840 --> 0:17:39.320
<v Speaker 11>the productivity gains from AI will result in faster and

0:17:39.400 --> 0:17:44.520
<v Speaker 11>certainly more sustainable economic growth. For example, recently, Federal Reserve

0:17:44.600 --> 0:17:48.080
<v Speaker 11>Governor Christopher Waller said that AI will be a huge

0:17:48.080 --> 0:17:49.440
<v Speaker 11>boost to the economy.

0:17:50.160 --> 0:17:53.880
<v Speaker 12>Aside from questions about how AI's gained will be distributed,

0:17:54.280 --> 0:17:57.120
<v Speaker 12>there's a more fundamental matter of how they will be measured.

0:17:57.640 --> 0:17:58.920
<v Speaker 3>Even at a macro level.

0:17:59.760 --> 0:18:02.960
<v Speaker 12>Are using AI to increase productivity, that's the payoff for

0:18:03.000 --> 0:18:07.439
<v Speaker 12>a profit maximizing firm. This gain in producing more output

0:18:07.480 --> 0:18:10.520
<v Speaker 12>with the same inputs is counted in gross domestic product

0:18:11.000 --> 0:18:13.120
<v Speaker 12>and as a result you're getting more output the same

0:18:13.200 --> 0:18:16.680
<v Speaker 12>number of inputs. Productivity per unit of input goes up,

0:18:17.040 --> 0:18:19.240
<v Speaker 12>and that raises GDP and productivity growth.

0:18:20.880 --> 0:18:23.920
<v Speaker 11>So the Fed's Christopher Waller, they're talking about the payoff

0:18:24.280 --> 0:18:29.160
<v Speaker 11>from AI, but not everyone agrees with this entirely. There

0:18:29.200 --> 0:18:33.440
<v Speaker 11>are specific concerns about the impact of AI on the

0:18:33.520 --> 0:18:38.040
<v Speaker 11>labor market, particularly entry level jobs that could be vulnerable.

0:18:38.440 --> 0:18:42.280
<v Speaker 11>Bloomberg reporting actually from this summer concluded that even if

0:18:42.359 --> 0:18:46.639
<v Speaker 11>the technology only eliminates one fifth of new graduate jobs

0:18:46.720 --> 0:18:49.760
<v Speaker 11>over the next five years, that would still have major

0:18:49.960 --> 0:18:54.480
<v Speaker 11>ramifications for a generation of young workers and also for

0:18:54.520 --> 0:18:59.760
<v Speaker 11>the economy. So there is both anxiety and optimism about

0:18:59.800 --> 0:19:01.639
<v Speaker 11>a potential impact.

0:19:03.440 --> 0:19:06.199
<v Speaker 1>This is Bloomberg Daybreak Europe, your morning brief on the

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