Devin

Clare Pleydell-Bouverie, co-lead fund manager at Liontrust Asset Management, is eyeing up firms hovering near — but not currently a part of — the seven biggest tech firms.Pleydell-Bouverie warned keen AI investors to see that “you’ve got to build out this new compute infrastructure before you can monetize it.”This includes silicon chips, semiconductor equipment, the likes of Applied Materials, and firms responsible for laying underground cables and networks, she said.

The People’s Bank of China will improve how it manages exchange rate expectations and guard against any shocks next year, according to a senior bank official.

The market premium for the US 10-year Treasury yield continued to rebound in November vs. a “fair value” estimate calculated by CapitalSpectator.com. The increase marks the second straight monthly increase in the premium, which is now at the highest level since May.

Both the markets and economists are universal in their agreement that the European Central Bank (ECB) will cut rates. But there seems to be an open debate among ECB officials themselves over how much it should be. In either case, the market is projecting a dovish tilt to the upcoming meeting, which ironically creates the conditions for a rebound.

Chinese government in 2008 had unleashed a “historically large monetary stimulus in response to the global financial crisis,” Gabriel Wildau, managing director of Teneo said.“Potential monetary easing leeway is much more limited than 15 years ago,” said Tao Wang, head of Asia economics and chief China economist at UBS Investment Bank.The People’s Bank of China cut its benchmark 1-year lending rate by a total of 156 basis points and the cash reserves ratio by 1.5 percentage points during the 2008 easing cycle.

The European Central Bank is widely expected to deliver a 25-basis-point rate cut on Thursday, rather than a "jumbo" 50-basis-point move previously thought to be on the table.Economists nevertheless say downside risks to the euro zone economy and the inflation picture have both increased, set to send the central bank on a faster course of monetary loosening in 2025.Macro forecasts broadly are citing high uncertainty around the policies of U.S. President-elect Donald Trump.

Disinflation has stalled recently, but economists are debating if this is a temporary blip that will soon give way to a softer trend. Tomorrow’s consumer price report for November will be widely read for an update.

China’s top leaders signaled bolder economic support next year using their most direct language on stimulus in years, as Beijing braces for a trade war when Donald Trump takes office.

OMFIF report finds funds are getting back to basics, prioritising returns over liquidity.