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Inside the Global AI Race: Europe Steps Up Artificial Intelligence Investments With Renewed Urgency (Bloomberg)

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Many European leaders are working to claim its piece of the global AI boom. Long known as more of a tech regulator than an innovator, Europe is moving with renewed urgency to claim its piece of the global AI boom. The continent's scarce tech giants, SAP SE and ASML Holding NV, have in recent weeks committed billions of euros to homegrown AI startups and services tailored to the bloc.

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Heads of state, from French president Emmanuel Macron to British Prime Minister Keir Starmer, have made splashy pledges to invest in massive data centers they cast as critical to national security and growth.

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Macron has done more than most to prop up local options. He’s pledged to spend €109 billion on data centers and equipment and regularly promotes startups like Mistral and Pigment.

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Europe’s push mirrors efforts around the world, from Canada to South Korea to the Middle East, where governments are frantically marshalling resources to avoid ceding too much of the AI market to the US and China. Across Europe, there are fears that a failure to invest heavily in AI locally will mean losing talent and abandoning yet another tech revolution to Silicon Valley.

AI Boom: ASML Rises as AI Arms Race Boosts Demand for Cutting-Edge Tools (Bloomberg)

ASML, the Dutch semiconductor equipment maker which is the only company that makes extreme ultraviolet lithography machines needed to produce the most sophisticated chips, is benefiting from a boom in AI infrastructure spending.

ASML shares gained after orders crushed estimates, fueled by investment in AI infrastructure, with third-quarter bookings reaching €5.4 billion and the company reaffirming plans to grow annual revenue to as much as €60 billion by 2030.

It expects sales next year to be not below those of 2025, even as China was ASML’s biggest market last quarter, accounting for 42% of sales amid growing trade restrictions and geopolitical tensions.

Spotlight on Automation Tools

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Google Lab’s Opal and OpenAI’s AgentKit are redefining how people build with AI—one empowering anyone to create no-code “mini-apps,” the other giving developers and enterprises powerful tools to orchestrate intelligent agents at scale.

Together, they illustrate the expanding toolkit for both casual creators and professional builders shaping the next generation of AI-powered experiences—from generating content and automating research to summarizing documents, analyzing data, managing emails, and building custom chat assistants.

Opal is an experimental, web-based platform from Google Labs that turns everyday ideas into working AI “mini-apps.” It automatically generates visual workflows from simple prompts—linking AI logic, data inputs, and outputs—so anyone can build, test, and share tools without writing code.

AgentKit from OpenAI gives developers and enterprises a complete toolkit to design, deploy, and optimize AI agents. With features like Agent Builder, Connector Registry, and ChatKit, it streamlines how teams orchestrate, version, and evaluate complex multi-agent systems end to end.

Watch these short primers from Opal and OpenAI to learn how to build and experiment with their platforms.

US Economy Latest

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From Wall Street: Dimon Calls Out Weaker Job Market, Inflation as Provisions Rise (Bloomberg)

JPMorgan Chase CEO Jamie Dimon warned of a “softening” labor market and the risk of “sticky inflation,” citing heightened uncertainty from geopolitical tensions, tariffs, and elevated asset prices. The bank reported $3.4 billion in provisions for credit losses—slightly higher than expected—as Dimon said the US economy remains generally resilient but faces a “heightened degree of uncertainty.”

Sentiment Slide: US Small-Business Optimism Falls to Three-Month Low on Economy (Bloomberg)

US small-business sentiment fell to a three-month low in September as optimism about the economy waned and concerns over excess inventory rose, according to the National Federation of Independent Business.

The NFIB optimism index dropped two points to 98.8, with owners citing rising inflation, slower sales, and labor challenges as key pressures despite generally healthy business conditions.

US Job Slump: Powell Signals Another Cut as Weak Hiring Pressures Unemployment (Bloomberg)

At Bank of America: BofA Bankers Top Estimates as Dealmaking Return Boosts Profit (Bloomberg)

Bank of America’s third-quarter earnings surpassed expectations, driven by a 43% jump in investment-banking revenue to $2.05 billion and record net interest income of $15.2 billion, reflecting strong loan and deposit growth.

Net income surged 23% to $8.47 billion as CEO Brian Moynihan highlighted “strong fee performance from our market-facing businesses,” with shares rising 4% on the results.

At Morgan Stanley: Stock Traders Exceed Expectations in Record Quarter (Bloomberg)

Morgan Stanley reported a standout third quarter, with stock-trading revenue surging 35% to $4.12 billion—far exceeding analyst expectations—driven by heightened market activity and strong investment-banking and wealth-management results.

The firm’s overall trading revenue reached $6.29 billion, contributing to a 3.9% stock jump as investors applauded its best-ever third quarter under CEO Ted Pick.

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Boost for Education

Governor Ivey Breaks Ground on New Alabama School of Healthcare Sciences (Alabama.gov)

Alabama Governor Kay Ivey joined leaders and philanthropists to break ground on the Alabama School of Healthcare Sciences (ASHS), marking a milestone in education and workforce development in rural West Alabama.

Bloomberg Philanthropies has committed $26.4 million to ASHS as part of its $250 million initiative to launch healthcare-focused CTE high schools in 10 communities across the country.

Howard Wolfson, Education Lead for Bloomberg Philanthropies, said ASHS will play an important role in the future of healthcare:

“We are proud to support the bold vision of the Alabama School of Healthcare Sciences,” said Wolfson. “By giving students access to high-quality instruction and clear career pathways, ASHS will help ensure that the next generation of healthcare professionals is well equipped to meet the demands of communities across the state and the country.”

The groundbreaking, held at the 10-acre campus site, drew representatives of Alabama’s federal delegation, local and state stakeholders, and special guest Kate Herman of Bloomberg Philanthropies.

ASHS—the only school in Bloomberg Philanthropies’ 10-school partnership being built entirely from the ground up—will open in Fall 2026, preparing Alabama students for careers in healthcare through hands-on training and academic excellence.

What I'm Reading

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Fueling the Future: Brazil Lines Up Global Pledge on Quadrupling Clean Fuel at COP30 (Bloomberg)

Brazil, alongside Japan and Italy, is leading the Belém 4X Pledge on Sustainable Fuels — a global plan to quadruple sustainable fuel production by 2035 and accelerate decarbonization.

Unveiled ahead of next month's COP30 summit, the initiative aims to mobilize investment, set global emissions standards, and scale up technologies like biofuels, biogases, and green hydrogen. The pledge could generate $1.5 trillion in investment and create 2 million jobs by 2035, according to the International Energy Agency (IEA).

Trade Tensions Rise: China Escalates US Trade Fight With Curbs on Shipping (Bloomberg)

It's Back... Why the 'TACO' Trade is Again Tempting Investors Amid US-China Brinksmanship (Bloomberg)

After China announced new export curbs on rare earths, President Trump retaliated with threats of 100% tariffs on Chinese imports, rattling global markets and sending US equities to their worst day in six months — only to backpedal days later, declaring the US “wants to help China, not hurt it!!!”

The swift reversals have defined the first year of Trump’s second term, giving rise to the “TACO” trade — short for "Trump Always Chickens Out" — where investors profit by buying stocks after tariff threats, betting he’ll soon relent.

Traders and analysts say the strategy has paid off handsomely, as markets consistently tumble on Trump’s tariff brinkmanship and surge again when he inevitably softens his stance.

Mideast Tensions: Israel, Hamas Trade Accusations of Cease-Fire Violations (Wall Street Journal)

Israel and Hamas traded accusations Tuesday over violating the fragile cease-fire that secured the release of all 20 living hostages from Gaza, as fury mounted among families of deceased hostages still awaiting the return of their loved ones’ bodies.

Hamas said Israeli troops killed Gaza residents in breach of the deal, while Israel said suspects crossed a “yellow line,” prompting troops to open fire. The dispute underscores the fragility of President Trump’s brokered peace plan, already strained by Hamas’s failure to return 24 of the 28 bodies promised under the agreement.

With tensions rising and doubts growing over Hamas’s willingness to disarm, both sides now face a crucial test of whether the cease-fire — and the two-year Gaza war’s uneasy end — can hold.

Pentagon Press Pushback: News Organizations Refuse Hegseth’s Reporting Limits, Forfeit Credentials (Bloomberg)

Several news organizations including Bloomberg News, The New York Times and The Wall Street Journal refused to sign new reporting limits set out by Defense Secretary Pete Hegseth’s Pentagon. The refusal also included right-leaning outlets including The Washington Times and Newsmax.

The outlets’ decision means their reporters will have to turn in their credentials on Wednesday and lose the ability to report from the Pentagon building and US military bases. The Pentagon was completed in 1943 and the press has had offices there from the late 1940s until now.

Shocking Reveal: Leaked Messages Expose Young Republicans’ Racist, Sexist, Homophobic Chat (Politico)

The exchange is part of a trove of Telegram chats — obtained by Politico and spanning more than seven months of messages among Young Republican leaders in New York, Kansas, Arizona and Vermont. The chat offers an unfiltered look at how a new generation of GOP activists talk when they think no one is listening.

Potentially Devastating Blow to Democrats: Supreme Court Weighs Ending Raced-Based Voting Districts as Election Looms (Bloomberg)

The court will hear arguments today about GOP calls to undercut the most significant remaining part of the landmark 1965 Voting Rights Act, a law that was passed to address rampant discrimination against Black voters, particularly in the South.

Judgement Stands: Supreme Court Rejects Alex Jones’ Appeal of $1.4 Billion Defamation Judgment in Sandy Hook Shooting (Associated Press)

The US Supreme Court on Tuesday rejected Alex Jones’ appeal, leaving in place the $1.4 billion defamation judgment against him for falsely claiming the 2012 Sandy Hook school shooting was a hoax. 

Europe's Outlook: ECB’s Next Move More Likely to Be Cut Than Hike, Villeroy Says (Bloomberg)

At Tuesday’s Bloomberg Global Regulatory Forum in New York, European Central Bank Governing Council member François Villeroy de Galhau said the ECB’s next move is more likely to be a rate cut than a hike, pointing to mounting downside risks to inflation and weaker economic growth across the euro area. He stressed that while monetary policy is currently “in a good place,” it is not fixed, and the ECB must stay flexible as conditions evolve. 

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Riding the Rhine: Europe's First Certified Long-Distance Cycle Path (BBC)

The Rhine Cycle Route, a 1,450km journey from the North Sea to the Swiss Alps that’s 87% car-free, offers cyclists an immersive, culturally rich way to experience Europe’s landscapes and history, from Dutch canals to Alpine passes, highlighting the growing appeal of long-distance, car-free travel across the continent.

Last Chance: Van Gogh Flowers at the New York Botanical Garden (NYBG) 

Van Gogh’s Flowers at the New York Botanical Garden is in its final weeks, closing Sunday, October 26.  

This immersive exhibition transforms the Garden into a living masterpiece inspired by Van Gogh’s celebrated floral paintings, featuring sweeping displays of sunflowers, lush gardens of living blooms, and dynamic recreations that bring his iconic brushwork to life. As you explore, the sounds of jazz guitar and accordion drift through the Garden, evoking the lively atmosphere of a Parisian street café and the spirit of the landscapes that inspired Van Gogh’s art. 

Explore the experience through guided tours on the Bloomberg Connects app, and Bloomberg employees can enjoy complimentary admission via BOB.  
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The garden of the hospital in Arles, which Van Gogh painted in 1889, comes alive in a magnificent rendition of living flowers and architectural elements. Photo: New York Botanical Garden.

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Best of Late Night

On the ceasefire agreement led by President Trump between Israel and Hamas: 

“Trump finally did something positive, and I want to give him credit for it, because I know he’s not the type to take credit for himself.”
-- Jimmy Kimmel

“Credit where credit is due: Donald Trump did something good. Are we still canceled?”
-- Stephen Colbert

"I know it sounds crazy to say, but good work on that one, President Trump. Now, maybe you can not invade Portland. Just an idea. I mean, while you’re on a roll."
-- Jimmy Kimmel

And from The Late Show: Stephen Colbert breaks down the latest headlines, including MAGA's meltdown over the Nobel Peace Prize, his controversial deployment of National Guard troops to Oregon and Illinois, and the alarming implications of mass layoffs at the CDC for future infectious disease outbreaks. Click the photo below to watch.