AI giants face a reckoning after record spending
Global equity markets are up as Q4 earnings season begins, with companies needing to show strong profits to avoid volatility. The MSCI World Index is at 20 times forward earnings, above its 10-year median. AI giants are under pressure to justify record spending, with major firms planning to spend $530 billion this year. While some sectors like tech are thriving, others like luxury goods are struggling. Investors are closely watching earnings from consumer goods and defense sectors, as geopolitical tensions and tariff changes add uncertainty to forecasts.
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