Dalio Warns of AI Bubble, Hormuz Attacks Lift Oil

Billionaire Ray Dalio warned that artificial intelligence is a “classic bubble” that is nearing a bursting point thanks to rising interest rates and the need to turn wealth into cash.

A rally in stocks came to a halt and global bonds fell as mounting attacks on tankers in the Middle East pushed oil prices higher. Futures for the S&P 500 stood pat after the index hit a record high in the previous session. Europe’s Stoxx 600 fell 0.6%, ending a three-day run of gains. SK Hynix fell nearly 3% in South Korea ahead of the expiry of a lockup on its American depositary receipts.

The Opening Trade has everything you need to know as markets open across Europe. With analysis you won’t find anywhere else, we break down the biggest stories of the day and speak to top guests who have skin in the game. Hosted by Anna Edwards, Guy Johnson and Tom Mackenzie.

Chapters:
00:00:00 – The Opening Trade Begins: SpaceX, Oil and Bonds
00:01:35 – Tech Rally, Market Breadth and SpaceX’s $40 Billion Financing
00:04:45 – Strait of Hormuz Attacks Drive Oil and Shipping Costs Higher
00:06:43 – French Bond Selloff and ECB Intervention Risks
00:10:30 – SpaceX Seeks $40 Billion for Nvidia Chips
00:13:47 – Plurimi Wealth Chief Investment Officer Patrick Armstrong on Semiconductors and AI Spending, France, Europe and the US Debt Outlook
00:21:40 – Need to Know: Russia, Israel and HSBC Job Cuts
00:24:41 – European Bonds, French Protests and Fiscal Pressure
00:26:39 – Marine Le Pen’s Budget Plans Under Scrutiny
00:28:08 – UBS IB European Rates Strategy Head Reinout De Bock on French Debt, Italy and European Rates, Europe’s Energy Risks and ECB Policy
00:38:27 – Markets in 3 Minutes: Higher Yields and AI-Led Market Growth
00:42:03 – Stock to Watch: ABN Amro, HSBC and Orange
00:48:03 – European Trading Opens in the Red
00:50:42 – Bank of America US Equity & Quantitative Strategy Head Savita Subramanian on S&P 500 Breadth and Valuations, Why Bonds Are Becoming More Attractive
00:58:58 – European Stock Movers: Bridgepoint, Pennon and Porsche
01:01:14 – HSBC Job Cuts and AI’s Impact on Wealth Management
01:04:14 – Jamie Dimon on AI Investment and Rising Rates, AI Risks and Data Center Expansion
01:11:11 – European Stocks Fall as Bond Yields Rise
01:12:50 – Hormuz Attacks, HSBC Cuts and SpaceX Financing
01:14:00 – Hamilton Lane Co-CEO Erik Hirsch on AI Borrowing and Private Credit Risks, Private Credit, Defaults and Consumer Resilience
01:23:27 – Apollo on Financing the Data Center Buildout
01:25:32 – Iran Steps Up Attacks in the Strait of Hormuz
01:27:14 – Saudi Arabia, Yemen and U.S. Military Support
01:30:13 – French Bond Yields and the ECB Intervention Threshold, FOMC Minutes and the US Yield Curve
01:34:39 – What’s Ahead
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