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The article discusses polarized predictions from major institutions like a16z, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and BlackRock on AI investments. Morgan Stanley projects AI infrastructure spending to reach $3 trillion, while JPMorgan Chase sees short-term benefits limited to profitability optimization. BlackRock and Morgan Stanley focus on US tech giants benefiting from AI, whereas JPMorgan Chase and Goldman Sachs predict global spillover effects, favoring emerging markets. The debate centers on whether AI investments will remain concentrated in the US or spread globally.
Citigroup plans to expand its investment banking team in Japan by 30% by the first half of 2026 to capitalize on a boom in mergers and acquisitions. Japanese companies are increasingly open to deals due to corporate governance reforms. Citigroup's Japan investment banking business is expected to post its highest annual revenue since 2009. Other global firms like Goldman Sachs, Jefferies, and UBS are also strengthening their operations in Japan. The Bank of Japan's recent interest rate hike is not expected to slow deal activity.
The article discusses various forecasts and nowcasts for GDP growth, highlighting that while Q3 growth is faster than previously forecasted, it still falls short of the 2023-24 trajectory. The momentum in domestic aggregate demand has decreased since last month. The analysis includes data from the Atlanta Fed, NY Fed, St. Louis Fed, Goldman Sachs, and the Philadelphia Fed.
Morgan Stanley has issued US$22.76 million in senior unsecured notes and its ETF platform has surpassed US$10 billion in assets under management. This growth in ETFs highlights Morgan Stanley's focus on fee-based revenue streams. The expansion from 6 to 18 ETFs raises questions about its impact on wealth franchise and pricing power. Despite these developments, the firm's narrative projects $76 billion revenue and $17.2 billion earnings by 2028, with a fair value estimate of $169.52, indicating a potential downside to its current stock price.
Verizon's Holiday 2025 promotion offers aggressive discounts, including $25 per line for four lines, unlimited talk, text, and data, four free Pro phones, and a $40 activation fee per line. This promotion aims to attract new subscribers amidst declining consumer numbers. Despite appearing to lose money on the offer, Verizon's strategy includes maintaining service pricing levels while providing significant hardware discounts. The promotion has generated significant attention on social media, with over 1 million views on Threads and 180,000 views on X posts.
