PremiumHedging The AI Bust: Goldman FICC Says Look To Tokyo As France Goes "Orbital"
Some days the market has one story. Today it has three, and Goldman thinks they are the same story.
In his latest "10 Charts We're Talking About" note (available to pro subs), Goldman FICC trader Jonathon Chryssafis walks through a "trying couple of weeks for the AI complex," where disappointment in megacap earnings has "reignited concerns as to the durability of the trend": Tesla cutting capex, Meta's AI spending sending its CDS to a record, and Lam Research's guidance underwhelming. Then he connects the AI de-rating to the bid in Treasuries, the bonfire in French bonds and, most interestingly, the yen.