• Meta's AI agent, Muse, is unprofitable due to "very high compute costs," CEO Mark Zuckerberg says.
• Meanwhile, Meta expects Reality Labs, its AI glasses division, to lose $15 billion next year.
• The social media giant has a plan to fix that.

Meta says some of its biggest cash incinerators could finally start turning profits.

The social media giant, which generated over 97% of its quarterly revenue from ads, has faced persistent questions from investors about the lack of profitability in its AI and hardware initiatives.

Meta CEO Mark Zuckerberg addressed those concerns head-on during its third-quarter earnings call on Wednesday.

Zuckerberg said that Muse, the AI assistant it launched last month, is unprofitable since it's "very compute intensive to run." Meta expects to start turning that around next year by massively improving Muse's efficiency.

"If compute efficiency continues improving quickly for another few years, which we think is highly likely, then Muse will be highly profitable over multiple years," he said.

Meta plans to make money from Muse by taking a small transaction fee off of purchases it drives, Zuckerberg said at Meta's Connect conference last month.

Zuckerberg added that Muse, which launched only in the US and Canada, wasn't launched globally due in part to the amount of compute it requires. (Meta's North American users are generally its most lucrative.)

Zuckerberg also struck a positive note about its cash-hemorrhaging Reality Labs division, which makes products like Meta Ray-Bans and virtual reality glasses.

Meta expects Reality Labs to narrow its losses to about $15 billion in 2027, down from the $18 to $19 billion it expects to lose this year. The division should start trending toward profitability next year, as Meta's AI systems make it more useful, Zuckerberg said.

"I continue to believe that the path to delivering holographic experience, of bringing together the physical and digital worlds and everyday glasses, will come through VR first," Zuckerberg said.

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European prosecutors have searched offices in Brussels and Strasbourg as an investigation into alleged misuse of parliamentary funds by the former Identity and Democracy group raises questions over financial liabilities inherited by Patriots for Europe.

European prosecutors carried out searches at the European Parliament’s offices in Brussels and Strasbourg on Wednesday, 21 October, as part of an investigation into alleged financial irregularities involving the former Identity and Democracy (ID) parliamentary group.

The investigation concerns approximately €4.33 million in European Union funds that were allegedly improperly spent during the 2019–2024 parliamentary term. The European Public Prosecutor’s Office (EPPO) confirmed that searches had taken place in connection with an ongoing inquiry into the use of EU funds by a former parliamentary group.

The premises searched are now occupied by Patriots for Europe, the European Parliament’s third-largest political group, which includes France’s National Rally, Hungary’s Fidesz, Italy’s Lega and Spain’s Vox. Patriots for Europe insists that it has no legal continuity with Identity and Democracy and denies being involved in the investigation.

Investigation into parliamentary expenditure

The European Public Prosecutor’s Office opened its investigation in July 2025 following concerns identified by the European Parliament’s financial administration about expenditure incurred by Identity and Democracy.

The former group, which dissolved following the 2024 European elections, included representatives of France’s National Rally, Italy’s Lega and Germany’s Alternative for Germany.

According to details of the parliamentary financial examination subsequently reported in France, investigators are examining approximately €3.6 million in contracts awarded to external service providers, including businesses with political connections to parties represented within the former group.

The financial examination also identified more than €700,000 in donations to organisations whose activities were allegedly unrelated to the parliamentary group’s official functions.

The authorities are examining whether parliamentary resources were used in accordance with EU financial rules, including restrictions on using public money for national party-political activities.

These are allegations under investigation, not criminal findings. The EPPO has not announced convictions arising from the current inquiry, and the individuals and organisations concerned retain the presumption of innocence.

Earlier investigative measures were conducted in France, Belgium, Spain and Italy in June 2026. Wednesday’s searches mark a further stage in the proceedings.

Can Patriots for Europe inherit the liabilities?

The investigation has opened a separate dispute over whether Patriots for Europe could be required to repay money allegedly misspent by its predecessor.

Identity and Democracy ceased to exist after the 2024 elections. Several parties previously represented in the group subsequently joined Patriots for Europe, a new parliamentary formation that also brought together Viktor Orbán’s Fidesz and Spain’s Vox.

Patriots for Europe maintains that the two groups are legally separate. Its representatives argue that the dissolution of Identity and Democracy ended that group’s institutional existence and that the present parliamentary organisation is not responsible for its predecessor’s financial affairs.

However, the European Parliament’s budgetary authorities have examined whether responsibility for outstanding liabilities can pass to a successor group.

An opinion approved by the Parliament’s Budgetary Control Committee in September considered the circumstances in which continuity between parliamentary groups might establish financial responsibility.

Such an assessment may consider whether members, administrative personnel, operational resources and other assets were transferred from one organisation to another.

The outcome could determine whether the current group is exposed to potential repayment demands, irrespective of whether its present members were personally involved in the expenditure under investigation.

No final determination of such liability has been established through Wednesday’s searches.

Political consequences in Strasbourg

The searches come at a time when Patriots for Europe has become a major political force within the European Parliament.

Its member parties have challenged EU policy on immigration, economic regulation and the distribution of powers between Brussels and national governments. National Rally and Fidesz are also influential actors in the domestic politics of France and Hungary respectively.

An investigation involving their parliamentary organisation is therefore likely to attract scrutiny beyond the immediate financial questions.

Nevertheless, the political influence of the group and the criminal investigation must be considered separately. The presence of prosecutors at parliamentary premises does not establish wrongdoing by the current group’s MEPs.

The case also raises broader questions about financial accountability within the Parliament, particularly when a political group dissolves following an election and its members establish a new organisation.

Unlike national political parties, European parliamentary groups receive funding specifically to support their legislative, administrative and political work inside the institution.

Those resources are subject to financial controls intended to prevent their diversion into activities that should be funded by national parties or other organisations.

Further proceedings

The EPPO is responsible for investigating and prosecuting offences affecting the European Union’s financial interests. It operates independently of national governments and EU political institutions.

The European Parliament has confirmed its cooperation with the authorities but has declined to comment on the substance of the continuing investigation.

Prosecutors must now assess the evidence obtained during the searches alongside financial records and material collected during previous investigative measures.

Any decision to bring criminal proceedings would depend on the evidence available and the relevant national and European legal requirements.

Separately, the Parliament will have to establish whether any recoverable funds are owed by the former group and, if so, which organisation is legally responsible for repayment.

For Patriots for Europe, the immediate issue is not only the progress of the criminal inquiry but whether the financial arrangements of a dissolved parliamentary group can create obligations for its successor.

• Investor Brad Gerstner wants Trump Accounts expanded to every US citizen under 40.
• The plan would create early IRAs that employers and donors could fund.
• Gerstner, regarded as the architect of Trump Accounts, said the change would require new legislation.

Brad Gerstner, the investor and architect of Trump Accounts, is pushing to expand the investment accounts beyond children and make them available to every US citizen under 40.

In an interview with CNBC on Wednesday, Gerstner said the change would require new legislation rather than a regulatory rule change.

Trump Accounts are tax-advantaged investment accounts created under President Donald Trump’s tax-and-spending law. Right now, they are available to Americans under 18, while children born between 2025 and 2028 are eligible for a $1,000 federal seed contribution.

When account holders turn 18, the accounts become traditional individual retirement accounts, or IRAs.

"Every year, 3.7 million kids age up into IRAs," Gerstner said. "Why not pull forward 20 years of IRAs? We can create all of those today, everybody under 40."

Gerstner's idea would create the accounts for adults under 40 without necessarily requiring the government to make an upfront deposit. Instead, he said, it would give employers, philanthropists and companies a ready-made vehicle through which to contribute.

That structure could allow companies or private citizens to contribute to accounts, he said, creating a "vessel" for the funding.

On Monday, Elon Musk said he planned to give one share of SpaceX stock to every American child through Trump Accounts. Giving a share to the roughly 72 million children in the US would be worth around $11.5 billion, based on SpaceX's share price in Wednesday trading.

Other major donors, including Michael and Susan Dell, Ray Dalio, and SpaceX President Gwynne Shotwell, have also backed the initiative.

Gerstner pointed out there has already been innovation in the investment field, mentioning the federal Saver's Match, created under the bipartisan SECURE 2.0 law, which is scheduled to begin in 2027.

The program will provide a federal match of up to $1,000 a year for eligible low- and middle-income workers who contribute to qualifying retirement accounts.

In comments to the New York Post, Gerstner said he was working on the legislation to make Trump Accounts available to anyone under 40, potentially within months. The proposal could also make account funding permanent.

The proposal's prospects in Congress, including its cost and whether lawmakers would support new matching funds, remain unclear.

Eurobank is considering establishing a representative office in Tel Aviv to strengthen its support for Israeli businesses and investors, as Cyprus seeks to build on closer economic ties with Israel and its growing role as a European business and investment hub.

The prospect was raised during the 8th Cyprus-Israel Business & Investment Summit, held in Tel Aviv this week, with the participation and support of Eurobank.

The conference brought together entrepreneurs, investors and institutional representatives from both countries, at a time when bilateral relations are expanding across trade, investment, energy, tourism, services, technology and innovation.

Eurobank was represented by Deputy CEO Andreas Petsas, while Senior General Manager Stefanos Kassianides addressed the conference, emphasising the importance of cooperation between the two countries.

In particular, Kassianides stressed that Cyprus and Israel, by making use of their complementary advantages, could serve as a natural bridge between Europe and the wider region.

He also drew attention to the important role that businesses, investors and financial institutions could play in taking advantage of new opportunities arising from greater regional connectivity and initiatives such as the India-Middle East-Europe Economic Corridor (IMEC).

Speaking about the relationship between the two countries, Kassianides said that “the business relationship between Cyprus and Israel has strengthened significantly in recent years, based not only on the geographical proximity of the two countries but also on the strong economic, commercial and institutional ties that connect them”.

He went on to point out that “the complementary strengths of the two economies create strong prospects for even closer cooperation between their business communities, while Cyprus serves as a natural gateway to the European Union and the wider region”.

It was in this context that Kassianides referred to Eurobank Group’s international presence and strategic development, revealing that the bank is examining the possibility of establishing a representative office in Tel Aviv.

The move would further strengthen its ability to support Israeli businesses and investors in their international activities.

The opportunities offered by Cyprus’ financial sector were also discussed during the summit, with Panayiotis Chrysostomou, manager of banking services and representative offices at Eurobank, taking part in a panel discussion on the country’s banking and investment services.

During the discussion, Chrysostomou outlined the opportunities Cyprus offers in these areas, placing particular emphasis on the role of the country’s financial institutions in supporting Israeli businesses and investors.

As he explained, “the role played by Cyprus’ financial institutions and banks, as stable and financially sound partners of Israeli businesses and investors, is of central importance to successfully capitalising on the prospects arising from their expansion into the European Union market, as well as the opportunities within the broader economic corridor connecting Asia and the Middle East with Europe, through Israel, Cyprus and Greece”.

Beyond its participation in the summit, Eurobank also supported a reception hosted by Cyprus’ ambassador to Israel, Cornelius Corneliou, to mark the 66th anniversary of the independence of the Republic of Cyprus.

The bank said its involvement reaffirmed its active role in strengthening cooperation between the Cypriot business community and international investment institutions.

The Bank of Cyprus has completed its acquisition of performing loans worth approximately €130 million and deposits of around €440 million from the Cyprus Development Bank (CDB), following the receipt of all required regulatory approvals, the two banks announced on Wednesday.

The transaction, agreed in March, covers substantially all of CDB’s performing loans and deposits, together with certain other assets and liabilities, and was completed at a price close to their book value.

The consideration was nearly at par, with the total estimated discount on the assets transferred amounting to approximately €2.8 million, according to CDB.

Any balancing amount arising from the transaction was settled in cash, the banks stated.

Bank of Cyprus Holdings said the acquisition was expected to have a modest positive impact on the group’s income statement, while its effect on capital would be limited to approximately 30 basis points.

The group said the transaction had been executed on normal commercial terms and was aligned with its strategy of expanding its performing loans and deposit base over the medium term.

It added that the acquisition would strengthen its customer base and reaffirmed its strategic priority of pursuing both organic growth and acquisitions to deliver attractive and sustainable returns while creating value for shareholders.

For CDB, the transfer was described as an appropriate step that took into account the interests of its stakeholders, including depositors, creditors, bondholders and shareholders.

Arrangements have been implemented to ensure continuity in customer servicing, CDB said.

The Cyprus Development Bank further stated that it will continue to service and manage the assets and liabilities excluded from the transaction, including its Tier 2 subordinated bonds, in accordance with their existing terms and conditions.

Following completion, CDB’s activities will focus on managing and servicing its remaining assets and liabilities.

Both banks confirmed that the transaction did not relate to or affect the interests of their respective company secretaries or any designated persons under the relevant provisions of Cyprus’ securities and stock exchange legislation.

Bank of Cyprus Holdings said it had been advised on the transaction by KPMG Limited as financial adviser and Hadjianastassiou Ioannides LLC as legal and competition counsel.

On their part, CDB said it had received legal advice from Antis Triantafyllides & Sons LLC.

Customers to continue using CDB services during transition

In a separate announcement, the Bank of Cyprus said the affected accounts had been legally transferred to the bank, but their technical integration into its systems would take place at a later stage, at the end of a transitional period.

The bank welcomed CDB’s customers and thanked its existing customers for their continued trust.

It said it was working to ensure that the transition and technical integration of the accounts took place as smoothly and securely as possible, while maintaining uninterrupted customer service.

Customers’ day-to-day banking arrangements will remain unchanged during the transitional period, and they will not need to take any action at this stage, the bank said.

Customers will continue to be served through CDB’s branches and electronic banking channels, while their existing CDB accounts, international bank account numbers (IBANs) and debit cards will remain valid.

Standing orders, direct debits and payments, including salary payments, will also continue to operate normally.

What is more, loan repayments will continue through CDB using the existing arrangements, and the main terms and conditions of outstanding loans will remain unchanged.

There will also be no immediate changes to interest rates on deposit accounts, the Bank of Cyprus said.

Once the technical transition has been completed and the relevant products begin to be serviced directly through the Bank of Cyprus’ systems, customers will be informed in advance.

The bank said it would provide guidance on any new account details and IBANs, replacement cards and instructions for accessing its digital banking services, wherever necessary.

Further information is available through the Bank of Cyprus’ dedicated CDB customer information page.

Portugal’s housing shortage is being driven largely by a sharp decline in private construction, according to Economy and Territorial Cohesion Minister Manuel Castro Almeida, who has called on local authorities

The post Is a new construction shortage fueling Portugal’s housing crisis? appeared first on Portugal Resident.

Alpha Bank purchased 1,157,429 of its own shares for €4.88 million during the week ending October 16, as part of its ongoing share buyback programme, the lender has announced.

The shares were traded on Euronext Athens between October 12 and October 16, at an average purchase price of €4.2187 per share, with the total consideration amounting to €4,882,845.72.

The bank’s announcement, published on October 20, follows an earlier update dated July 31 and relates to a buyback programme approved by its annual general meeting on June 26, 2026.

The transaction details listed in the announcement record the purchase on October 15, when all 1,157,429 shares were acquired at an average price of €4.2187.

The shares were purchased at prices ranging from €4.199 to €4.24.

Following the latest purchases, Alpha Bank holds 15,758,061 of its own shares, representing 0.70 per cent of its total share capital.

Greek banks are among Europe’s strongest performers in reducing credit risk costs, although their levels remain among the highest on the continent, according to an analysis by Morningstar DBRS warning that renewed interest rate pressures could test lenders over the next 12 to 18 months.

Greece, Italy, Spain and Portugal have recorded the sharpest reductions since 2024, continuing a trend that began in 2022, the agency reported this week.

The average European banking sector cost of credit risk fell to 25 basis points in the first half of 2026, from 30 basis points in 2025, 28 in 2024, 36 in 2023 and 49 in 2019.

Among Greece’s four largest banks, the National Bank of Greece recorded the lowest credit risk cost, followed by Piraeus, Eurobank and Alpha Bank.

Despite the improvement, Greek and Spanish banks continue to report the highest aggregate credit risk costs among the countries examined, followed by British and French lenders.

The analysis found signs of a possible reversal, with 29 of the 53 banks in its sample reporting higher credit risk costs in the first half of 2026 than in 2025, while only six recorded net reversals of provisions.

Credit costs continue to decline in southern Europe and Ireland, but have started rising in northern and central Europe, including Britain, France, the Netherlands and Sweden.

In Austria and Belgium, credit risk costs almost doubled in the first half of 2026 compared with 2025, although the Austrian increase was largely attributed to Erste and changes to provisioning models following its acquisition of Santander Polska.

Morningstar DBRS said the deterioration in asset quality expected after the 2022-2023 interest rate increases had not materialised, with credit losses remaining limited even after the European Central Bank’s key rate peaked at 4 per cent.

It attributed this resilience to stronger bank balance sheets, tighter lending standards, lower household borrowing and robust employment, while pressure was concentrated in commercial property, highly indebted businesses and selected sectors.

However, the agency expects credit risk costs to rise moderately over the next 12 to 18 months amid renewed interest rate and inflation pressures, geopolitical uncertainty, potential energy supply disruptions linked to the Middle East and slower economic activity.

European banks are considered sufficiently capitalised, liquid and profitable to absorb a potential increase in credit losses, but Greek lenders face the challenge of continuing to converge towards lower European credit risk levels.

• Fireworks AI is an AI-infrastructure startup founded by former Google and Meta AI engineers.
• The company is seeking to raise a new round of funding at a valuation between $30 billion and $40 billion.
• Fireworks AI was last valued at nearly $18 billion in July of this year.

Fireworks AI is seeking to raise fresh funding at a valuation between $30 billion and $40 billion, a dramatic jump just months after the AI-infrastructure startup was valued at $17.5 billion, according to people familiar with the matter.

The potential valuation leap reflects investors' appetite for the companies selling the computing power and tools fueling the AI boom, even as Fireworks AI works through the fallout from a recent security incident.

The talks around the financing are still early, and valuation targets could still change. Fireworks declined to comment.

Founded in 2022, Fireworks was built by veterans of Meta and Google's AI efforts. Chief executive Lin Qiao previously led the PyTorch team at Meta, while cofounders include former Meta infrastructure engineers and a former leader of Google's Vertex AI. The company rents out computing infrastructure and software that lets businesses run, fine-tune, and deploy open-weight and custom AI models.

In July, Fireworks announced a $1.5 billion Series D funding round at a $17.5 billion valuation, led by Atreides Management, Index Ventures, and TCV, with participation from Nvidia, Lightspeed Venture Partners, Bessemer Venture Partners, and Menlo Ventures. That round followed a $250 million Series C at a $4 billion valuation in late 2025, co-led by Lightspeed, Index, and Evantic. Last month, The Information reported that Fireworks has been considering a round at a $30 billion.

Rather than trying to build a consumer chatbot to rival ChatGPT, Fireworks sells what it calls specialized intelligence: models customized on a customer's proprietary data, workflows, and use cases. The company said in July that it had surpassed $1 billion in annualized revenue and was serving more than 40 trillion tokens a day; it said 95% of those tokens came from models tailored to customers.

The company operates in a highly competitive layer of the AI stack. Rivals include model-infrastructure startups such as Together AI, Baseten, and Replicate, as well as cloud giants such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle.

The fundraising talks come shortly after a security incident at Fireworks AI. The company said it identified unauthorized use of internal credentials earlier this month that allowed an intruder to access data from some customer accounts.

"We take this seriously and will be transparent about what happened and what we find," Qiao posted on X. "I'm personally committed to turn this attack into the most formidable security response in AI Infra."

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