What we’re reading (11/8)
“Cockroaches In The Coal Mine” (Howard Marks). “One of the most prominent characteristics of the financial markets that I’ve detected over the years is their tendency to obsess over a single topic at a given point in time. The topic eventually changes to another, but before it does, it’s often the thing people want to discuss to the near exclusion of everything else. Today it’s the recent string of episodes in sub-investment grade credit.”
“Debt Has Entered The A.I. Boom” (DealBook). “[The] offering is part of the latest push in the A.I. infrastructure financing blitz. According to McKinsey, $7 trillion in data center investment will be required by 2030 to keep up with projected demand. Google, Meta, Microsoft and Amazon have together spent $112 billion on capital expenditures in the past three months alone. The sheer scale of spending is spooking investors: Meta’s stock tumbled 11 percent after the company revealed its aggressive capital expenditure plans last week, and tech stocks have sold off this week on overvaluation fears.”
“Global Week Ahead: AI Wobble Casts Shadow Over ‘Davos For Geeks’” (CNBC). “The event comes as the AI-fueled market rally faces increased scrutiny from investors, big market voices, politicians and regulators. Concerns of a bubble in the sector spooked global markets into a rollercoaster week, after famed short-seller Michael Burry placed a massive $1.1 billion bet against AI darlings Nvidia and Palantir.”
“Alaska’s New Mining Rush Chases Something More Coveted Than Gold” (Wall Street Journal). “At a mining site here, Rod Blakestad cracked open a shiny rock with his pick. He found quartz, a sign that the rock may contain gold. But Blakestad, a veteran gold hunter, tossed the rock aside. He and his team of geologists were searching for something even more sought-after: antimony, an obscure element widely used in the defense industry that is now at the center of the bitter U.S.-China trade fight. ‘If we were looking for gold, we’d be high-fiving,’ he said. Until recently, antimony, which is often found in gold mines, was treated as detritus by gold miners.”
“Warner Bros. Is For Sale, Who’s Buying?” (The Hollywood Reporter). “The battle for Warner Bros. Discovery is officially underway. Offers are being made. Banks have been hired. Who will wind up with the treasure trove of IP, HBO, and abundant cable TV cashflow? Will it sell as one piece? Or will it be broken up into studios and networks? The clock is ticking.”
