See the full story in the original article.
Read the original on investinglive.com ↗
Keywords
bondsBlackRockdata centersAI investment
Open a keyword to see other news on the same topic.
Related news
- What Does BlackRock (BLK) Joining A $500 Billion AI Funding Push Mean?
BlackRock is teaming up with Nvidia and other major financiers to build AI infrastructure financing platforms targeting over US$500 billion. The consortium plans to treat high-end AI compute capacity as a distinct asset class for large institutional investors, with BlackRock's credit desks expected to play a central role in structuring the vehicles. The article notes that the move fits BlackRock's existing focus on private markets and higher-fee infrastructure, which saw US$68 billion of private markets fundraising over the 12 months to Q3 2026 and operating margins of 47.8% in the same quarter. It says the key checkpoint for investors is whether AI-linked infrastructure and private credit commitments show up in that fundraising line and help sustain margins.
- BlackRock's Larry Fink warns a data center moratorium could trigger a recession
BlackRock CEO Larry Fink warned that a halt to data center construction in the United States could trigger a recession, saying much of the economy is based on the buildout of this capex. He made the remarks to CNBC after BlackRock reported better-than-expected third-quarter earnings, with its shares rising about 1% in late morning trading. Fink acknowledged local opposition over utility costs, water use, environmental damage and investment transparency, an emerging issue ahead of the Nov. 3 midterm elections, but said most of the concern rests on misinformation. Wall Street analysts estimate AI capital spending could exceed $1 trillion in 2027 and $5 trillion by 2030. Fink argued that data centers are creating more jobs than ever, supporting demand for construction workers, AI hardware and energy infrastructure.
- Tech giant AI spending to exceed USD 1 trillion in 2027 , lift US growth : UBS
UBS estimates that AI-related capital expenditure by major technology companies will exceed USD 600 billion in 2026 and USD 1 trillion in 2027, as demand for computing capacity keeps outstripping supply. AI infrastructure spending contributed about 0.75 percentage points to US GDP growth in the first half of 2026, while its estimated effect on the overall unemployment rate is around 0.2 percentage points or less. Employment in selected high-tech sectors, including software and computer systems design, fell 1.4 per cent year-on-year, while construction industries supporting data centre infrastructure grew by nearly 3 per cent. The report also flags weakening cash flows and less robust demand for tech companies' bonds, with investors expecting free cash flow to turn positive again in 2028 if companies generate sufficient revenue from AI services.
- The $4 . 9 trillion hole : AI superintelligence sales pitch cannot prop up a debt - choked bond market – NaturalNews . com
The article argues that AI data centers face a $4.9 trillion gap: Gartner estimates their owners need $8.5 trillion in revenue through 2030 to cover spending, financing costs and expected returns, but AI revenue from those facilities is forecast at no more than $3.6 trillion. Bain projects that AI infrastructure spending could reach $1.5 trillion a year by 2031, requiring a $6 trillion AI market against roughly $1.8 trillion today, which leaves $4.2 trillion unaccounted for. AI-related debt is surging, with Goldman Sachs pegging global supply at $489 billion this year, and Bank of America says AI borrowing is potentially crowding out long-end Treasury demand as long-term borrowing costs hit a 25-year high. The author expects a correction that would fall on workers and small investors, and compares the situation to the dot-com bubble of 2000.
- Will Interest Rates or Chips Decide the AI Trade?
On October 19, Jim Cramer said on Mad Money that investors should focus more on interest rates than on whether GPUs hold their value, and set a warning level at a 30-year Treasury yield above 6%. The 30-year yield closed at 5.48% that day, after reaching 5.67% on October 7. The article cites rising pressure on AI infrastructure: Oracle's interest expense rose 55% to $1.4 billion in fiscal Q1 2027 with free cash flow of −$5.4 billion, and Equinix expects its blended cost of capital to rise about 150 basis points. Panelists also flagged a duration mismatch, with long-term debt backed by contracts customers can walk away from, as when Microsoft vacated a UK lease that Anthropic reportedly took over. Nvidia's finance chief projected top-five hyperscaler capex of nearly $800 billion in 2026 and $1.3 trillion in 2027, so a growth slowdown could hit stock prices hard.
- AI Trade Is at a Critical Moment As Rising Rates Threaten a Capex Slowdown
James Russo, a portfolio manager at AllianceBernstein, says the AI trade is at a “critical moment” as corporate bond rates rise, making companies less willing to borrow for AI spending and putting AI infrastructure stocks in a perilous position. Causes include surging Treasury yields driven by oil prices, inflation concerns and ballooning government debt, along with heavy borrowing to fund the AI buildout. Bond yields on CoreWeave hit 15% last week amid concerns about its debt levels. Russo expects a significant slowdown in capex growth in 2027 and further deceleration in 2028, with hyperscalers estimated to spend $725 billion in 2026 and potentially up to $1.2 trillion. Upcoming third-quarter earnings reports from hyperscalers could reveal changes in their capex plans.
Related markets
Latest news
- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.