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Recent Editions
Risk Channel
North America
Alphabet, Amazon, Meta and Microsoft are planning record capital spending to build AI data centers and the infrastructure behind them, from chips to networking and backup power. Bloomberg data indicates the four are collectively set for roughly a 60% year-over-year increase, with individual outlays at levels rarely seen outside historic investment booms. Meta said capex could reach $135bn, Microsoft is projected near $105bn for its fiscal year, Alphabet forecast up to $185bn, and Amazon guided to $200bn in 2026. The build-out is straining energy and construction capacity, raising community concerns over power and water, and heightening questions about bottlenecks, financing and whether AI revenue will arrive quickly enough. Meanwhile, Simon Lin, the chairman of Taiwanese electronics manufacturer Wistron, has argued that AI is not a bubble, and 2026 AI-related order growth will be more than last year. "We believe AI really does help all industries, so I don't think it's a bubble; I think it will mark a new era. A new AI era is arriving," Lin whose company is an Nvidia, said. His comments came as stocks on Wall Street sold off on Thursday for a third straight day on AI fears, pushing the S&P 500, opens new tab into negative territory for the year.
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Risk Channel
UK/Europe
Rio Tinto has abandoned its merger talks with Glencore, which aimed to create the world's largest mining group. Disagreements over pricing and management roles led to the breakdown and Rio Tinto said it could not reach an agreement that would benefit its shareholders. Glencore, which sought a deal ratio giving its investors 40% of the combined entity, said that the proposed terms undervalued its contributions. Chris LaFemina, an analyst at Jefferies, said: "It is possible that the two companies re-engage at some point in the future, but that is not our base case," adding: "Rio likely goes it alone."
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