法国公布540亿欧元预算削减计划，债市利差创2012年来新高

[music] Bloomberg Audio Studios, podcasts, radio, news. This is the Bloomberg Daily podcast. Good morning. It's Thursday, the 1st of October. I'm Caroline [music] Hepker in London

and I'm Nathan Hager. Coming up today, midair attack. Passengers overpower a pilot after a stabbing in the cockpit with the jet plunging [music] 14,000 ft. France hunts for 54 billion euros as soaring debt and borrowing costs pile on the pressure for the country's last budget before a presidential election.

Plus, why elite $30,000 sheep dogs are putting a tiny UK town on the global map.

Let's start with a roundup of our top stories.

A pilot is being hailed as a hero after being repeatedly stabbed in the cockpit by a colleague. This happened on a passenger jet that was carrying 170 people from Dubai to Tel Aviv. During the struggle, the plane plunged more than 14,000 ft in less than 30 seconds. This passenger was on board.

Suddenly, the aircraft dropped like a massive drop down like a roller coaster and we saw that there was a crowd and riots on the front next to the cockpit. Well, passengers managed to overpower the attacker. Two offduty pilots took control of the plane. It made an emergency landing in Saudi Arabia where the attacker is now being questioned by local authorities. Israeli Prime Minister Benjamin Netanyahu says almost all the passengers were Israelis.

His words are spoken through an interpreter.

We're in continuous contact with the renment authorities to ensure the ongoing safety of the passengers. I have instructed the security systems to prepare for additional potential threats. And now this incident comes just weeks before Netanyahu seeks re-election on a promise of tougher security. This attempted hijacking could help tilt undecided voters in his direction. In the UK, MI5 has issued an unprecedented warning about a Chinese espionage threat targeting Britain's AI research.

The security service accused China's General Technology Research Institute of spying through more than a 100 UK linked academics. China's embassy in the UK dismissed the claims as pure fabrication. It comes as open AAI accused Moonshot of a widescale effort to extract data from its GPT systems. As Bloomberg's Minlow explains, OpenAI has found that in July there were as many as 16,000 attempts to uncover the hidden information on how OpenAI's models approach reasoning through problems.

And what open AI has done so far to stop distillation is that they have concealed their reasoning. When users enter a query, they get an answer instead of an explanation. But according to OpenAI, how Moonshot has gone around this is that they have copied that encrypted information and then ask a model in a different conversation to decrypt and transcribe that data. So that was Bloomberg's Min Low who added that the Chinese AI firm Moonshot has so far not commented on the accusations.

The French government is set to lay out its budget plans today and it could test investor nerves in the final financial plan before next year's elections. Ministers are expected to share details of a 54 billion euro effort to lower the fiscal shortfall in France to 5% of economic output in 2027. Marie Jako, France CEO at Edmund de Rothschild, says the attitude to France among investors is getting worse. This widening of the spread between the French O and the German Bund is a clear indication that the risk perception on French debt uh is deteriorating uh and that the market is starting to punish uh France uh and its level of debt which is not necessarily something that it has done in the past.

Edund D Rothschild's Marie Jako there as the spread between the 10-year French yield premium and German buns hit 127 basis points yesterday. That gap has doubled in the past four months to levels not seen since 2012. The finance bill must be adopted at the end of September by the end of se December to avoid relying on emergency legislation. Meanwhile, farright leader Marine Le Penz says she'll present her own budget proposals next week.

Italy's Prime Minister Georgia Maloney says she plans to ask the EU for greater budget flexibility due to high energy prices. It comes as inflation in Europe's top economies jumped to the highest level since 2023, largely driven by elevated fuel costs. Maloney had been hoping to avoid tighter fiscal scrutiny from Brussels. However, Italy's 2025 deficit was confirmed at more than 3% of economic output earlier this month.

Britain's government is falling behind on plans to borrow more from regular savers, and that could potentially leave the government more reliant on the guilt market. The bad news comes after the UK paid the highest yield since 1999 at an auction of 10-year debt earlier this week. Bloomberg's Euan Pototts has more. The UK government has been hoping to narrow the gap with other European countries, many of which raised substantially more from retail investors.

But the first 5 months of this financial year saw the UK raise just 2.2 2 billion pounds through national savings and investments. That's well short of its target for the full year of 15 billion pounds. NSNI says it's responded by raising interest rates across some of its saving products. In Brussels, I'm part Bloomberg radio.

Well, soaring fuel prices could hand the UK chancellor an extra 3.9 billion pounds over the next year. This according to Bloomberg calculations. Consumers in Britain are paying almost £1.75 a liter for petrol with diesel at a record of around2. The higher prices are boosting VAT receipts just as households and businesses also face sharply higher energy costs. Now the question is whether Chancellor John Healey uses that windfall to soften the blow in his budget later this month.

A lack of winter snowfall and high summer temperatures have proven problematic in Switzerland. New research shows ice there is melting quickly. It's threatening communities and harming residents. Bloomberg's Tiwa Adabio has more.

Glacial loss in the Swiss Alps hit nearly 20% in the past 5 years, a level higher than the global average. That's according to data from the Swiss Academy of Sciences who say ice losses have unexpectedly doubled over the period. The changes have led to serious consequences, including at least three deaths caused by an unusual number of rockfalls during tourism season. Researchers have concluded that the pace of melting leaves alpine glaciers with no chance of surviving over the long term in London.

Ta Adabio, Bloomberg Radio.

So those are some of our top stories for you this morning. Yeah, including that climate change issue in Switzerland in the Alps. Looking at the markets, Asian bonds declining, Japanese JGB 10-year yields up four basis points, 10 year US Treasury yields down a basis point and we are watching French sovereign yields which are perhaps likely to climb further today. Brent has dropped well below $100 a barrel though. So um a relief perhaps for Europe.

Brent crude futures at $964. The dollar strengthening. European stock futures uh this morning are down by 4/10en of 1%. But NASDAQ futures get a big lift. They're up by 1% this morning after that upbeat forecast from Micron.

All right. Well, in a moment we're going to bring you more on the cockpit battle aboard a Fly Dubai plane. Plus, uh get the latest ahead of the release of the French budget plan. Uh some serious things to consider uh ahead of next year's elections. But another story that I think caught both of our eyes this morning. Uh somewhere else to put on my map while I'm in the UK. Uh Caroline, the town of Skippton near Leeds.

Um do you do you have a dog? Uh are you familiar with what's going on here in the town of Skipton?

I don't have a dog and I've not been to Skipton, but I do know it obviously. Um, it is well known for being a hub for sheep dog trials and Bloomberg uh reporter Ben Stockton has been writing about this about how apparently there's now a global market for sheep dogs that do