The surge in CDSs is raising concerns about the sustainability of the current AI investment model, particularly given the high level of spending and the pressure this is beginning to exert on free cash flow Consejeros Editorial Team The growing indebtedness of the major US hyperscalers to finance the expansion of artificial intelligence (AI) is driving up demand for protection against a potential deterioration in their credit quality. The widening…

Morgan Stanley Analysis The strategy team once again highlights that this has been one of the best earnings seasons in years. Analysing the reaction of Morgan Stanley Research analysts to the published figures, there is a clear bias towards beats; on balance, 48% of reactions point to positive surprises (compared with 26% in Q1). The picture is similar if we focus on the impact our analysts expect the figures to…

The dividend yield of the US index has hit an all-time low of 1.04 per cent, well below its historical average – between 1.8 per cent and 2.5 per cent per annum over the long term – as a result of the dominance of large technology firms that pay no dividends, or pay very few. Consejeros Editorial Team The dividend yield of the S&P 500 is not looking good. It…

Report by Renta 4 Markets opened without any major movements in Europe (Eurostoxx futures flat) and slightly up in the US (S&P futures up 0.15% and Nasdaq futures up 0.4%), following yesterday’s slightly bearish session, although with no major developments as the market awaits tomorrow’s inflation figures. Yesterday saw a rise in yields across most sovereign yield curves, ranging from 4 to 10 basis points, against a backdrop of a…

Report by Banco Sabadell According to data as at the close of trading on 3 August, Engie (ranked 33rd) would be a clear candidate for inclusion in the index during the annual review in September, as it ranks above 40th place in the market capitalisation ranking (adjusted for free float) compiled by Eurostoxx 50. Furthermore, Nokia (43) and E.ON (44) would also be well-positioned to join the index given the…

The rise of artificial intelligence is driving a broad business ecosystem beyond the big tech firms. A report by BestBrokers identifies 160 S&P 500 companies linked to the AI economy, with a combined value of $10.19 trillion. Reported by Consejeros Editorial Team The boom in artificial intelligence (AI) is no longer occurring in isolation, and whilst tech companies compete to expand their AI capabilities with multi-billion investments, a much broader…

Report by Renta 4 Markets are expected to open with virtually no changes (Euro Stoxx 50 and S&P 500 futures flat), on a day of wait-and-see sentiment ahead of the official US employment report for July, and with oil prices rising again amid the deadlock in negotiations over the Strait of Hormuz. Yesterday, Wall Street closed lower, albeit only slightly (S&P 500 down 0.18%, Nasdaq down 0.06%, Dow down 0.85%),…