New York Times (November 18)
UBS expects “the global A.I. capex tally” will “hit $423 billion this year…and reach $1.3 trillion by 2030.” But Big Tech’s “debt-fueled spending spree” is raising concern. “Not long ago, huge investment pledges pushed the A.I. rally to new heights. But the need to borrow so many billions is beginning to rattle stock and bond investors.” For example, “shares in Oracle, and some of if its bonds, have sold off sharply in the past month in a sign of investors’ growing concerns about its long-term A.I. financing plan.”
Tags: $1.3 trillion, $423 billion, 2030, A.I., Big tech, Bond, Borrow, CAPEX, Debt-fueled, Financing, Investors, Oracle, Shares, Spending spree, Stock, UBS
Market Watch (May 25)
“On May 28, a new rule will go into effect that will affect almost every stock, bond, and ETF trade in U.S. markets,” requiring settlement within one day. Reducing failure to deliver (FTD) “risk is one of the reasons that industry players have been pushing to get to a T+1 settlement cycle since the 1990s, when the settlement cycle was still at T+5. Over the years, the U.S. has moved to a T+3 settlement cycle, then T+2 and now finally T+1.”
Tags: 1990s, Bond, Effect, ETF, Failure to deliver, May 28, Risk, Rule, Settlement cycle, Stock, T+1, T+2, T+3, T+5, Trade, U.S. markets
Reuters (October 21)
“Current debates about inflation are mostly concerned with how long it will persist. Will inflation be transitory, as the central bankers insist? Or will consumer prices continue rising for years to come, as the bond bears maintain?” The blind spot seems to be a consideration of “how today’s highly financialised modern economies are likely to respond to a change in the inflation regime.”
Tags: Bears, Blindspot, Bond, Central bankers, Consumer prices, Debates, Inflation, Modern economies, Persist, Response, Transitory
New York Times (April 17)
A new front is opening “in the war over how cryptocurrency will — or will not — be regulated.” Although “Cryptocurrencies are still mostly held as speculative assets,” they could “become fundamental parts of the financial system. To many, Coinbase’s successful debut, which valued the company at $86 billion, far more than operators of stock and bond exchanges, is a signal that this transformation is already well underway.” The success of that IPO could “invite more attention from regulators.”
Tags: Bond, Coinbase, Cryptocurrency, Exchanges, Financial system, IPO, Regulated, Signal, Speculative assets, Stock, Successful, Transformation, War
Institutional Investor (February 6)
Legendary bond investor Bill Gross believes the “$12 trillion now held by central banks is a permanent fixture of global finance, acting a bit like methadone. Methadone manages the craving, but does little to end the patient’s addiction.” He also posits that the U.S. would be in recession if it were not for the easing measures of the European Central Bank and the Bank of Japan.
