AI economy: spending boom vs. repricing risk
Morgan Stanley says AI spending added 0.9pp to Q3 GDP growth, while the RBA warns of possible disorderly repricing. UBS's CEO isn't worried about the AI selloff, and Trump says he doesn't mind guardrails.
What we know
Morgan Stanley puts AI's contribution at 0.9% of annualized Q3 GDP. RBA's Hunter flags disorderly repricing risk and sees limited productivity evidence. UBS CEO Ermotti isn't overly concerned. Trump on 60 Minutes says AI risk can be managed and he doesn't mind guardrails.
How the story developed
Morgan Stanley says AI spending added 0.9pp to Q3 GDP growth, while the RBA warns of possible disorderly repricing. UBS's CEO isn't worried about the AI selloff, and Trump says he doesn't mind guardrails.
A trader says memecoins are finished after an Elon Musk quote failed to push $Claudia above a $7M market cap.
Russia hit Kyiv with 36 ballistic missiles overnight and is upgrading its strike drones. Erdogan told Trump diplomacy could yield results, while Sen. Blumenthal pushes new legislation and changes to the peace talks team.
Musk's bullish SpaceX guidance sent $SPCX up about 9%, while Tesla is reportedly discontinuing the Cybertruck.
Russia claimed an attack on a military cargo ship in the Black Sea while the FT reported a Russia-Iran missile launcher deal; Russian PMIs also softened.
The EU, Ukraine and US meet in Brussels on Wednesday, and the White House will host Russian and Ukrainian representatives on Nov 5. Meanwhile, unverified claims about torture sites in Ukraine are spreading widely.
Musk said Grok Bot's serving cost was unsustainably high relative to revenue, prompting skepticism about xAI's economics and jabs at AI-company business models.
Musk said Grok Bot's cost was unsustainably high relative to revenue, prompting commentary about AI economics, competing agents and SpaceX.
Morgan Stanley's estimate of the data-center power gap has widened to about 70GW. Meanwhile one account says GPU rental prices are dropping, and another warns AI subscriptions are subsidized.
Iran reported on indirect US negotiations, Ukraine hit a third Russian refinery in 3 days while Zelensky sought Patriots, and strikes continued in Lebanon, Syria and Yemen.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.