📈 AI Financing Reaches Record Scale

“I've never seen anything like it in terms of the size of the financing that's coming in both debt markets, equity markets. The cost of debt has actually equilibrated in many ways to the cost of equity for some of these companies. I've heard people compare this to the internet bubble. These companies are throwing off real revenue, real cash flow.”

Rick Rieder, BlackRock.

AI borrowing has pushed U.S. high-grade bond sales to an annual record. Meta, SpaceX, and Broadcom have all raised debt in the past few days. When debt costs as much as equity, the biggest borrowers start selling stock.

✔️ @venture

💡 Fed Chair Warsh remains hawkish and focused on bringing price stability

🖱️ Fed keeps interest rates steady at 3.75-4%.

🖱️ Inflation remains elevated above the 2% target for over 6 years.

🖱️ Geopolitical uncertainty is the primary reason for rising inflation.

🖱️ Economic activity is expanding and the labour market remains strong.

🖱️ In 2027, the FOMC schedule will change, with the same 8 Fed meetings annually, but one meeting will focus only on monetary policy strategy without any rate decision.

🖱️ In 2028, the Fed will have two such monetary policy strategy meetings and six on rate decisions.

🖱️ Warsh says it is important to keep ‘time and space’ for such ‘strategic deliberations’ to focus on the ‘long-term horizon.’

🖱️ On December rate hikes, Warsh says the coming period is ‘information rich’ and future hikes will depend on it.

🖱️ Warsh says he is ‘unwilling and unable’ to call financial conditions tight.

🖱️ Warsh believes higher interest rates do affect AI spending, irrespective of revenues.

🖱️ Warsh clarified that ‘politics’ or ‘midterm elections’ had no role in today’s decision about Fed rates.

🖱️ Any decision on shrinking the Fed balance sheet will only come early in Q1 2027, after recommendations from a task force.

🖱️ Overall, he doesn’t see current economic growth causing inflation but is closely watching the numbers for the future.

✔️ @venture

🖥 Microsoft Beats Q1 Estimates

Microsoft's Q1 results beat estimates across revenue, EPS, Azure revenue, and operating income. The main misses were commercial RPO and CapEx.

🖱️ Revenue: $92.2B vs $90.7B estimate.

🖱️ EPS: $4.89 vs $4.72 estimate.

🖱️ Azure revenue: $33.2B vs $32.3B estimate.

🖱️ Operating income: $45.9B vs $43.9B estimate.

🖱️ Commercial RPO: $677B vs $706B estimate.

🖱️ CapEx: $39.4B vs $45.9B estimate.

✔️ @venture

🪙 $6.3 Billion Drained From Binance

Binance's preliminary estimate is $6.3 billion, about 4 times the previous record set by Bybit. More than 18,000 BTC and about $3.8 billion in Ethereum moved across 10 blockchains, mostly within 20 minutes.

The attack began with a compromised DevOps laptop. Initial findings point to access to a service container and the hot-wallet transaction signing infrastructure, enabling unauthorized withdrawals. Binance found no leaked private keys.

Stablecoin issuers froze about $3 billion. Around $2.4 billion in BTC and ETH remains out of reach. Binance halted withdrawals and says SAFU, which holds about $1 billion, plus its own funds will cover the losses.

✔️ @venture

🥇 Gold Loses Its Safe-Haven Bid

Spot gold fell about 3% to roughly $3,910 an ounce, its lowest since October 2025. Futures are down about 26% from January's record close of $5,318.

The selloff came as the Nasdaq 100 fell more than 2% and $INTC had its worst day since 1974. Traders are pricing in more Fed hikes after a hot 0.5% September PCE print.

When even $GLD is sold during a tech rout, investors are raising cash wherever they can. Rates are the market's main fear.

✔️ @venture

🤖 Reddit’s Biggest Drawdown

$RDDT is in its biggest drawdown ever as Google AI Mode eats into Reddit’s search traffic.

CEO Steve Huffman says, “Google is crawling us as hard as ever.” Google still gets Reddit’s content, while Reddit receives fewer clicks in return.

✔️ @venture

👤 Black October’s cyber toll

October 2026 brought more than 100 million exposed records, hospital and government outages, critical software flaws, and major crypto thefts. Researchers called it “Black October”.

Most attacks used trusted access, including vendor accounts, cloud logins, certificates, and legacy systems. Breaches hit SourceNext, Burger King Japan, and Capcom.

An IDCF Cloud ransomware attack disrupted services for 495 companies and local governments. PHP flaws affected software used on about 70% of web servers, while LiteLLM exposed passwords and cloud keys.

AI agents used real logins, prompting JPMorgan, Morgan Stanley, and Charles Schwab to block outside agents. Crypto losses included $93 million from CryptoBilis, nearly $16 million from CoinDCX, and $6.3 billion from Binance.

✔️ @venture

📉 Five Days of Market Risk

U.S. midterms, jobs data, central-bank decisions and major AI earnings land within 5 days, as tech stocks are already falling.

🖱️ Mon, Nov 2: ISM Manufacturing PMI, Apple and Palantir.

🖱️ Tue, Nov 3: elections, Australia’s rate decision, JOLTS, AMD and Shopify.

🖱️ Wed, Nov 4: ADP, ISM Services, eurozone inflation, Qualcomm and Arm.

🖱️ Thu, Nov 5: Bank of England decision, U.S. claims, Cloudflare and Airbnb.

🖱️ Fri, Nov 6: U.S. jobs report, with 60K expected after 29K in September and unemployment at 4.2%.

Markets price an 80% chance of another Fed rate hike in December.

✔️ @venture

🏘 Housing Market Turns Spookier

America has more home sellers than buyers, the biggest gap in over 10 years.

🖱️ Prices fell for the first time in 3 years.

🖱️ Only 276,000 home deals are in progress, a record low.

🖱️ Every major city has seen fewer sales for 3 straight weeks.

🖱️ The average house payment reached the second-highest level ever.

Michael Burry's advice: "Buy half the house you can afford"

✔️ @venture

💰 Ueno Bank Faces Emergency Control

Ueno Bank, a major Paraguayan bank, has failed, leaving nearly 60% of adults unable to access their accounts.

The bank has around 3 million customers and $2.8 billion in deposits, including hundreds of millions in public funds.

The central bank has taken emergency control, freezing withdrawals, transfers, and card payments.

✔️ @venture

📈 Midterms Meet a Costly Market

The S&P 500 has finished higher 12 months after every midterm election since 1950, 19 for 19, with an average gain of about 15%.

JPMorgan’s election map:

🖱️ Democratic sweep, 66% odds, -0.25% to +0.5%.

🖱️ Democratic House, GOP Senate, 26% odds, +0.5% to +1%.

🖱️ Republican sweep, 7% odds, +1% to +1.25%.

A blue wave could pressure AI stocks through data center regulation fears. A red wave could extend the Iran campaign and deficit spending.

The catch is valuation. The Shiller CAPE is 40.7, above the old record of 33.8. History favors bulls, but no streak began from a market this expensive. AI earnings may matter more than tonight’s result.

✔️ @venture

⚠️ 5% 10-Year Rate Warning

“Once the 10-year nominal rates approach 5%, there's a very clear negative correlation between equities and the treasury yields”

Venu Krishna, Barclays.

“In fact, when we approached 4.5% on the 10, we had highlighted a red flag.” With rates stuck in this range, multiples stop helping and earnings must do the heavy lifting for SPY, QQQ, and the AI complex. The rally still has a rates ceiling.

✔️ @venture

🛢 Trump on Iran War Costs

“I think it's largely true because it drove the gasoline up a little bit short-term. I thought the oil would go up a lot more, and I did it on that basis. If I were on the ballot, we would have won.”

Donald Trump

He said Vance was largely right that the Iran war cost Republicans the midterms, but he would do it again. He spoke at the White House the day after Democrats flipped the House and Senate, with US crude back below $90 for the first time since early October.

✔️ @venture

💻 $INTC: Same Price, Different Business

🖱️ 8 years ago: $55/share, primarily an x86 CPU & PC business, with no external foundry business, outside backing, or meaningful AI growth engine.

🖱️ Today: $55/share, a centerpiece of America's push for domestic advanced chipmaking, backed by the U.S. government and $NVDA, with Data Center & AI revenue posting its strongest growth in 15 years.

Same price. Very different business.

✔️ @venture

“When you buy a stock, be prepared for it to go down 50% or more.”

- Warren Buffett

✔️ @venture

🖥 Nvidia Board Opens Investigation

Nvidia announced an independent board investigation into reports that CEO Jensen Huang was targeted by a foreign intelligence effort.

The board said it has no reason to believe national security or Nvidia secrets were compromised and reaffirmed confidence in Huang as he cooperates with the investigation.

✔️ @venture

📉 Stocks and the Economy Are Diverging

The US stock market is under heavy pressure, but the economic outlook remains more resilient. Goldman Sachs forecasts 2.4% real GDP growth in 2027, slightly above the 2.3% expected this year. Markets are pricing only a 20% probability of a US recession next year.

With real growth near 2% to 2.5% and one-year inflation expectations at 2.1%, nominal GDP growth could remain below 4.5% in 2027. If inflation continues to cool, slower nominal growth could reduce upward pressure on Treasury yields and support equities.

The outlook is not risk-free. Weaker growth, a softer labor market, or another inflation shock could change it quickly. A stock market selloff and an economic recession are different things.

✔️ @venture

📈 The S&P 500 Is Mostly a Tech Bet

The market has reached 28 record highs this year, but 9 of the 11 S&P 500 sectors are lagging. Technology represents nearly 40% of the index and delivered roughly 12 of the S&P 500’s 13.6-point return, according to Silvia Insights.

Energy is also outperforming, but its roughly 3% index weight means the effect is limited. Excluding technology and energy, the median sector is up barely 1% year-to-date, while 4 of the 9 sectors are negative. Buying the broad market is therefore largely a bet on a small group of technology leaders.

That concentration carries risk if mega-cap technology weakens, but the sector is cheaper than it has been in years. Tatiana Darie, a Bloomberg macro strategist, said on Full Signal that the spread between the S&P 500 and information technology sector’s forward P/E ratios has returned to levels last seen at the start of the pandemic. Nvidia’s market capitalization was then $144 billion. It is now nearing $6 trillion. The broad market is not necessarily a bad trade, but it is mostly one trade.

✔️ @venture

🇺🇸 Affordability Is the Main Economic Risk

The US entered the Trump presidency with a booming stock market, relatively lower inflation, and an AI-driven technological revolution. Now, markets are again discussing whether the Federal Reserve may raise interest rates.

Trade uncertainty, geopolitical tensions, and the war with Iran have added pressure to energy prices and inflation. The main issue is affordability, with housing, groceries, insurance, and other essentials already out of reach for many Americans. Higher rates would make buying a first home even harder.

There is still time to change course by ending conflicts, stabilizing trade policy, and lowering housing and energy costs. The US has significant economic potential, but the focus needs to shift toward making life more affordable.

✔️ @venture