Global Bond Sales Hit Record $6.61 Trillion in 2026 as Big Tech Borrowing Surges
- Global bond issuance by companies, banks and governments reached a record $6.61 trillion so far in 2026, up 15% year-on-year and already exceeding the full-year 2025 total, according to Bloomberg data.
- Cloud giants have raised nearly $368 billion through debt sales, reflecting the growing financing needs of AI infrastructure and data-centre expansion.
- Amazon has become the world’s fourth-largest bond issuer, behind Germany, the European Union and Italy.
- Alphabet sold $28.7 billion in bonds last quarter, highlighting the scale of borrowing by major technology companies.
- Alphabet shares fell after the company signalled significantly higher spending in 2027, renewing investor concerns about the cost of its AI expansion.
Hegseth Removes Pentagon’s Top Planning Officer as Trump Weighs Fresh Strikes on Iran
- US Defense Secretary Pete Hegseth has removed Lieutenant General Brett Sylvia from his role as director of strategy, plans and policy (J5) on the Joint Staff, CNN reported, citing sources.
- A spokesperson for Joint Chiefs of Staff Chairman General Dan Caine confirmed Sylvia’s abrupt departure.
- No official reason has been disclosed, and no successor has been announced.
- The departure comes as President Donald Trump considers a possible new round of military strikes against Iran, according to CNN.
- Several senior military officers have left the Pentagon since the Trump administration took office, amid broader changes to the military’s senior leadership.
NSE Chief Expects Global AI Investment to Rotate Towards Indian IT Stocks Within Two Quarters
- NSE CEO Ashishkumar Chauhan said global investment currently concentrated in AI stocks could flow back towards Indian IT companies within one or two quarters, speaking at NDTV Profit Ignite in Mumbai.
- Foreign portfolio investors (FPIs) have withdrawn ₹3.08 lakh crore from Indian equities in 2026, including ₹48,056 crore in October, amid elevated crude oil prices and Middle East tensions.
- Chauhan expects investors to move away from highly valued frontier AI companies and towards Indian IT firms over the next two quarters.
- He described Indian IT companies as “workhorses” capable of deploying AI solutions cost-effectively for businesses.
- The outlook comes amid sustained foreign selling, with the Sensex and Nifty opening sharply lower on Wednesday.
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SEBI Warns of WhatsApp and Telegram Investment Scams, Vows Tough Action Against Fraudsters
- SEBI Chairman Tuhin Kanta Pandey said the regulator would deal with investment scams operating through WhatsApp and Telegram “with a heavy hand,” NDTV Profit reported.
- Speaking in Mumbai, Pandey urged investors to verify stock tips, payment details and recipients before transferring money.
- Investors were advised to use SEBI Check to verify bank accounts, UPI IDs and QR codes before making payments.
- Pandey said genuine securities-market UPI handles include the word “valid”, helping investors identify authorised payment details.
- SEBI has referred more than 2.2 lakh misleading online posts to digital platforms for removal.
- The regulator has also worked with Google to introduce verified labels for trading apps to help investors distinguish legitimate applications from fraudulent ones.
Microsoft Shares Rise After Hours as Azure Growth Hits 48%; OpenAI Generates $10 Billion in Quarterly Revenue for Microsoft
- Microsoft reported quarterly revenue of $92.3 billion, up 19% year-on-year, while adjusted earnings reached $4.89 per share, beating analysts’ estimate of $4.73.
- Azure revenue surged 48% to $33.17 billion, exceeding Microsoft’s own guidance. The company disclosed Azure’s revenue in dollars for the first time under its new reporting structure.
- Microsoft recorded $10 billion in revenue from OpenAI in the quarter ended September 30, exceeding revenue from both Xbox and search advertising.
- Microsoft’s stake in OpenAI declined to approximately 24%, down from around 27% a year earlier. Business with OpenAI accounted for nearly 11% of Microsoft’s quarterly sales.
- Capital expenditure roughly doubled from a year earlier as Microsoft continued investing heavily in AI infrastructure.
- CEO Satya Nadella cautioned against relying on a small number of large customers, saying that four customers buying substantial capacity does not constitute a sustainable business.
Oracle Shares Jump as Company Targets Positive Free Cash Flow by Late FY2028, Caps New Funding at $20 Billion
- Oracle shares rose on Wednesday after CFO Hilary Maxson said the company expects free cash flow to turn positive in late fiscal 2028.
- The company expects free cash flow to exceed $30 billion in fiscal 2029, easing some investor concerns over its heavy AI infrastructure spending.
- Oracle reaffirmed its fiscal 2030 targets of more than $225 billion in revenue and $21 in adjusted earnings per share.
- The company capped new capital raising at $20 billion, seeking to reassure investors about its financing requirements as it expands AI infrastructure.
- The outlook helped address concerns over Oracle’s reliance on OpenAI, which has yet to become profitable, although investors continue to scrutinise the company’s path towards its ambitious targets.
- Before the Investor Day event, Goldman Sachs cut its Oracle price target to $206, while Wells Fargo highlighted continued uncertainty around achieving the company’s financial goals.
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Alphabet Shares Fall After Q3 Revenue Miss as AI Spending Pushes Free Cash Flow Deep Into Negative Territory
- Alphabet shares fell in extended trading on Wednesday after third-quarter revenue of $127.6 billion and earnings of $2.12 per share missed Wall Street forecasts.
- Free cash flow turned sharply negative at $9.07 billion, significantly worse than the expected $36 million shortfall, according to LSEG data cited by Reuters.
- Google Cloud revenue surged 103%, with CEO Sundar Pichai citing strong demand for AI-related services and infrastructure.
- Search and YouTube advertising revenue came in below analyst estimates, adding to investor concerns about the company’s core advertising business.
- Heavy AI infrastructure investment pushed free cash flow into negative territory for the second consecutive quarter, highlighting the growing cost of expanding AI capacity.
India’s 10-Year G-Sec Yield Rises as Traders Price in Another RBI Rate Hike
- India’s 10-year benchmark government bond yield rose sharply in October as traders increased bets on further monetary tightening by the RBI, the Financial Express reported.
- The Monetary Policy Committee raised the repo rate to 5.50% on October 7, while SBI Research expects another 50 basis points of tightening in December.
- Traders are anticipating a possible rate hike at the RBI’s December 2–4 policy meeting, amid persistent pressure on the rupee.
- Banking system surplus liquidity plunged from a record high in September to just ₹46,200 crore by October 26, following RBI measures to support the currency.
- Tighter liquidity and expectations of higher policy rates are putting upward pressure on short-term borrowing costs and government bond yields.
SEBI Chief Says Closing Auction Session Will Continue; Expiry Settlement Changes to Be Reviewed After One Year
- SEBI Chairman Tuhin Kanta Pandey said the cash-market Closing Auction Session will continue, stating that its purpose remains relevant.
- Under SEBI’s October 15 circular, expiry-day derivatives will be settled using the volume-weighted average price (VWAP) of the final 30 minutes of continuous trading, effective December 7.
- Pandey said the decision to separate expiry-day derivatives settlement from the auction price will be reviewed after one year.
- On reviving the 118-year-old Calcutta Stock Exchange, Pandey said the proposal’s viability depends on sufficient liquidity and commercial sustainability. The West Bengal government has proposed its revival, and the exchange sought a pause on its February 2025 exit application in July.
- Pandey said exchange self-listing is not prohibited under current rules but is not under active review. SEBI could study safeguards used by exchanges such as the NYSE and European counterparts.
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RBI Keeps Liquidity Tight as Banking Surplus Plunges to ₹46,200 Crore, Short-Term Rates Rise
- The RBI accepted Treasury bill cut-off yields roughly 20 basis points higher on October 28, a week after rejecting all bids at a ₹23,000-crore sale.
- Banking system surplus liquidity fell sharply from a record ₹11 lakh crore in early September to ₹46,200 crore by October 26, according to ET CFO.
- Emkay economist Madhavi Arora described the liquidity tightness as deliberate, aimed at making it more expensive for traders to maintain short positions against the rupee.
- Traders expect the RBI to potentially raise short-term borrowing costs by another 50–75 basis points as pressure on the currency persists.
- The tighter liquidity environment is pushing up short-term funding costs as the central bank seeks to discourage speculative bets against the rupee.
The RBI reportedly sold a net $18.2 billion in early October
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Rupee Hovers Near 95.26 per Dollar as RBI Reportedly Sells $18.2 Billion to Support Currency
- The Indian rupee traded near 95.2625 per US dollar on Thursday, as pressure from elevated oil prices and capital outflows persisted.
- The RBI likely intervened again on Wednesday, with state-run banks reportedly offering dollars to support the rupee, traders told Reuters.
- The RBI reportedly sold a net $18.2 billion in early October, according to Moneycontrol, citing economists and traders, as balance-of-payments pressures intensified.
- Economists have attributed the rupee’s weakness to subdued capital inflows, foreign investor outflows and a widening trade deficit.
- India’s foreign exchange reserves have declined from their record high in September, potentially limiting the scale of further intervention.
Samsung Shares Slide 6.6% as Shareholder-Return Plan Delayed Until January
- Samsung Electronics said it will announce details of its shareholder-return plan at the end of January, disappointing investors who had expected more immediate payout measures.
- The delay erased earlier gains and sent Samsung shares down as much as 6.6%.
- The decision contrasts with rival SK Hynix, which reported strong results and announced approximately $45 billion in additional shareholder returns.
- Samsung’s weaker-than-expected semiconductor profitability and roughly 60% increase in capital expenditure have added to concerns over how much cash will be returned to shareholders versus invested in new capacity.
- Analysts warned that the postponement could trigger short-term investor rotation towards rivals with clearer shareholder-return plans, including SK Hynix and Micron.
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WTI Crude Trades Near $101 as Middle East Supply Disruption Risks Intensify
- West Texas Intermediate (WTI) crude traded near $101.20 per barrel in Asian morning trade on Thursday as markets priced in the risk of further Middle East supply disruptions.
- BOK Financial’s Dennis Kissler said reports that the US could soon resume military action have prompted oil futures to price in tighter near-term supply.
- Kissler warned that any new military operation could be more intense than previous actions, following recent attacks on Saudi Arabia and other regional allies.
- TD Securities expects oil prices to remain supported in the near term, citing elevated escalation risks ahead of Israeli political developments and the US midterm elections.
- Recent Houthi attacks have added to oil’s geopolitical risk premium, while Iranian strikes on tankers appear to have reduced some flows through the Strait of Hormuz.
Samsung Raises Capex to $63 Billion as Chip Profits Miss Estimates; Shares Fall 5%
- Samsung Electronics raised its capital expenditure plan to 84.4 trillion won (about $63 billion), an increase of roughly 60%, citing strong AI infrastructure demand and rising memory-chip prices.
- The semiconductor division’s operating profit surged 15-fold to 106.5 trillion won in the quarter ended September, but fell short of analysts’ consensus estimate of 108.5 trillion won.
- Samsung’s overall net profit increased 39%, reflecting stronger earnings despite the chip division’s slight miss.
- Samsung shares fell as much as 5% in Seoul on Thursday morning as investors reacted to the weaker-than-expected semiconductor profit.
- The results increase pressure on Samsung to improve profitability, upgrade its product mix and secure long-term customer commitments.
- Investors are also watching Samsung’s progress in advanced memory chips, particularly HBM4, as competition with SK Hynix intensifies.
Fed Holds Interest Rates at 3.75%–4% as Two Officials Push for a 25-Basis-Point Hike
- The Federal Reserve kept its benchmark interest rate unchanged at 3.75%–4%, with the decision passing by a 10–2 vote.
- Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favouring a 25-basis-point rate increase. It was Cook’s first dissenting vote since joining the Fed’s Board of Governors.
- The decision gives policymakers more time to assess whether rising energy costs and the AI infrastructure investment boom could fuel broader inflation.
- The Fed’s policy statement maintained its focus on bringing inflation back to its 2% target, saying additional economic data would help determine the appropriate policy stance.
- The decision leaves the possibility of another rate hike in December open, with policymakers continuing to assess inflation risks.
- Cook’s dissent comes as the White House investigates her personal mortgage history amid President Donald Trump’s efforts to remove her from the Fed.
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Iran Says It Is Ready to Defend Itself as Diplomacy Continues; US Reaffirms Military Cooperation With Israel
- Iranian Foreign Minister Abbas Araghchi said Iran’s armed forces are fully prepared to defend the country at any time, while Tehran continues to pursue a diplomatic solution.
- Araghchi said Iran remains in close contact with mediators, is reviewing proposals and aims to implement a proposed “Seven-Day Plan” in less than a week.
- A senior US diplomat said American-Israeli military, intelligence and diplomatic cooperation would continue regardless of Israel’s election results, the timing of government formation or the US midterm elections.
- Washington said any decision to strike Iran would be based on professional assessments and shared US-Israeli interests. The stated objectives include eliminating Iran’s military nuclear programme and addressing threats to the Strait of Hormuz and neighbouring countries.
- The US has indicated support for a broad Israeli unity government that excludes extremist groups, while election results have left coalition options unresolved.
- Israel has assured its partners that the process of forming a government will not obstruct regional diplomatic efforts, according to the report.
Oil Prices Rise as Middle East Tensions Threaten to Reverse Diplomatic Progress
- Crude oil futures rose as concerns about a potential escalation in the Middle East outweighed ongoing diplomatic efforts.
- Citigroup analyst Francesco Martoccia warned that post-election political deadlock in Israel has increased uncertainty surrounding US-Israel-Iran relations and raised the risk of renewed military conflict.
- A fresh escalation could push the geopolitical risk premium in oil prices higher, while credible progress towards an agreement could partially unwind it.
- Citigroup’s baseline forecast remains a negotiated agreement by the end of the year, but the analyst said the election outcome has increased the risk of a more volatile and potentially damaging scenario.
- Oil markets remain sensitive to developments in regional diplomacy, with any renewed military confrontation potentially disrupting supply expectations.
- WTI crude was above $102/bbl, up 2.51%. Brent crude rose nearly 2%.
Bank of America Clients Sell US Stocks for Second Straight Week as Tech and Media Outflows Surge
- Bank of America clients withdrew $3.5 billion from US equities last week, following $15 billion in outflows the previous week.
- Retail investors were the primary drivers of the selling, according to BofA analysts Jill Carey Hall and Trey Brown.
- Communication services recorded the largest sector outflow, marking its biggest single-week withdrawal since records began in 2018. The sector includes telecom, media and technology companies such as Meta.
- Industrial stocks posted the second-largest outflow, extending their streak of net outflows to 13 consecutive weeks.
- The latest figures point to continued selling pressure in US equities, although the pace of withdrawals eased compared with the previous week.
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Citadel Securities Warns AI Credit Boom Could Strain Markets as Data-Centre Borrowing Costs Rise
- Citadel Securities has warned that major technology companies financing AI projects could face growing exposure as credit markets approach saturation, Bloomberg reported.
- At least 18 data-centre financing deals in the junk-bond and leveraged-loan markets now carry double-digit yields, as investors become more concerned about project cancellations and repayment risks.
- Moody’s warned that AI-linked private credit maturing between 2027 and 2029 will test whether weaker borrowers can refinance their debt at higher interest rates.
- Credit default swaps linked to Oracle, Meta and Nvidia have reportedly reached levels associated with junk-rated credit, signalling increased investor concern about credit risk.
- Citadel Securities stressed that it is not predicting an imminent credit crunch, but the growing scale of AI financing is raising questions about debt sustainability and lenders’ exposure.
China Drafts Export Restrictions on 23 AI Technologies as Chip and AI Stocks Slide
- China has drafted rules that would restrict exports of 23 AI-related technologies, adding regulatory uncertainty for technology companies amid a sell-off in Chinese AI and semiconductor stocks, Reuters reported.
- The STAR 50 Index, which tracks major technology companies listed on Shanghai’s STAR Market, has fallen sharply from its July peak, wiping out hundreds of billions of dollars in market value, according to the report.
- Goldman Sachs estimates that AI-related stocks account for approximately 42% of China’s stock-market value, highlighting the sector’s importance to broader market performance.
- Retail-favourite robotics company Unitree has reportedly lost around half its value, reflecting the pressure on high-profile technology investments.
- Fund manager Wang Zhuo told Reuters that “all bubbles inevitably burst,” as investors reassess valuations across China’s AI and chip sectors.
Wolf Research Sets $250 Target for SK Hynix, Sees Potential Buybacks Equal to 28% of Shares
- Wolf Research reiterated its Outperform rating on SK Hynix and set a $250 price target, citing strong demand for high-bandwidth memory (HBM) used in AI infrastructure.
- Analyst Chris Kasso highlighted rising HBM prices, increased memory production and the stock’s valuation as potential drivers of further upside.
- SK Hynix trades at approximately 4.5 times earnings under Wolf Research’s optimistic earnings scenario, according to the report.
- Wolf estimates that, if SK Hynix executes its expected shareholder-return plan, projected free cash flow over the next two years could fund share buybacks equivalent to approximately 28% of shares outstanding.
- Strong AI infrastructure spending and demand for advanced memory remain central to the bullish investment case.
Wolf Research Sets $250 Target for SK Hynix, Sees Potential Buybacks Equal to 28% of Shares
- Wolf Research reiterated its Outperform rating on SK Hynix and set a $250 price target, citing strong demand for high-bandwidth memory (HBM) used in AI infrastructure.
- Analyst Chris Kasso highlighted rising HBM prices, increased memory production and the stock’s valuation as potential drivers of further upside.
- SK Hynix trades at approximately 4.5 times earnings under Wolf Research’s optimistic earnings scenario, according to the report.
- Wolf estimates that, if SK Hynix executes its expected shareholder-return plan, projected free cash flow over the next two years could fund share buybacks equivalent to approximately 28% of shares outstanding.
- Strong AI infrastructure spending and demand for advanced memory remain central to the bullish investment case.
Netanyahu’s Likud Leads in Preliminary Israeli Election Count; Neither Bloc Secures Majority
- Preliminary reports from Israel on October 28 indicate that Prime Minister Benjamin Netanyahu’s Likud party remains the largest party and leads in valid votes after ballot-box counting.
- Neither Netanyahu’s right-wing bloc nor the opposition bloc led by Gadi Eizenkot has secured a parliamentary majority, leaving the government-formation outcome uncertain.
- Tens of thousands of special ballots, including votes from military personnel and diplomatic staff, remain to be counted and could affect the final distribution of seats.
- Israel’s Central Elections Committee has not yet officially confirmed the reported results, so the final seat tally remains uncertain.
US Goods Trade Deficit Widens to $134.9 Billion in September as Imports Surge
- The US goods trade deficit widened 2.1% month-on-month, or $2.8 billion, to $134.9 billion in September, exceeding economists’ expectations of $130.2 billion.
- Goods imports rose by $8.1 billion to $344.1 billion, while exports increased by $5.3 billion to $209.2 billion.
- The wider deficit suggests international trade could weigh on US third-quarter GDP for the third consecutive quarter, even as AI-related capital investment supports economic activity.
- Economists expect the preliminary third-quarter GDP report, due Thursday, to show annualised growth of approximately 3.2%, driven mainly by AI investment and consumer spending.
- The US economy grew at an annualised rate of 2.2% in the second quarter.
🔴 Breaking
US Military Advises Ships to Avoid Unnecessary Transit Through Strait of Hormuz Amid Rising Tensions
- The US military has advised vessels to avoid the Strait of Hormuz and nearby waters unless passage is absolutely necessary, citing the current geopolitical situation.
- The US Naval Forces Central Command issued the advisory on Wednesday through the Joint Maritime Information Center, recommending that ships not transiting the area maintain a safe distance to avoid unnecessary delays.
- Vessels planning to pass through the area have been urged to allow extra time for potential congestion and the implementation of military blockade operations.
- The military did not specify the immediate reason for the latest warning, leaving uncertainty over the extent of the operational risks facing commercial shipping.
- A similar notice was issued in mid-July when the US began a blockade of Iranian shipping. At that time, the military said neutral vessels could still transit the strait but should be prepared for questioning about their routes and intentions.
- UAE official says the country got a US warning to be on alert from Friday noon.
Saudi Oil Exports Stay Near Wartime Highs Despite Houthi Attacks and Strait of Hormuz Risks
- Saudi Arabia’s oil exports have remained near wartime highs in October despite reported attacks on regional energy infrastructure and heightened risks to tanker traffic, according to preliminary shipping-tracker data.
- Vortexa estimates Saudi exports averaged 6.5 million barrels per day through the country’s eastern and western coasts so far this month, compared with 6.6 million bpd in September.
- TankerTrackers.com puts October exports at an average of 6.99 million bpd, suggesting a recovery to pre-war levels.
- Kpler, however, estimates exports at 5.4 million bpd, below September levels, highlighting significant discrepancies between tracking agencies.
- The differences partly reflect difficulties tracking tankers, some of which are reportedly switching off satellite transponders to conceal their locations and reduce the risk of attacks.
- The data broadly suggests that oil exports from the Persian Gulf region are gradually recovering toward pre-conflict levels, although security risks remain elevated.
SEBI Not Actively Reviewing Ban on Stock Exchanges Listing Their Own Shares, Says Chairman
- SEBI Chairman Tuhin Kanta Pandey said the regulator is not actively reviewing its ban on stock exchanges listing their own shares, Business Standard reported.
- The issue resurfaced following the reported public listing of the National Stock Exchange (NSE). Pandey had previously said on September 17 that NSE cannot trade its own shares on its platform, according to IANS.
- Pandey explained that stock exchanges perform regulatory functions and allowing them to oversee trading in their own shares could create conflicts of interest.
- However, SEBI remains open to studying safeguards and regulatory models used in the United States and Europe.
- Separately, Pandey announced plans for a consultation paper on simplifying compliance requirements for foreign portfolio investors (FPIs), CNBC-TV18 reported.
Goldman Sachs Sees DRAM Price Rally Extending Into 2028; HBM Revenue Forecast to Surge Over 230% in 2027
- Goldman Sachs expects the memory-chip market to remain strong in 2027, with server demand and limited supply expansion supporting further price increases.
- TrendForce forecasts that DRAM prices could continue rising through the first half of 2028, even as consumer electronics demand remains weak.
- Long-term supply agreements could cover 60%–70% of the market, reflecting tight availability and growing demand for memory used in AI infrastructure.
- The report projects HBM average selling prices will rise 122% year-on-year to $3.70 per gigabit in 2027, with global HBM market revenue expected to grow more than 230% to above $200 billion.
- Goldman Sachs reiterated its Buy ratings on Samsung Electronics and SK Hynix, setting 12-month price targets of ₩500,000 and ₩3.5 million, respectively.
- The brokerage maintained its ₩380,000 target price for Samsung Electronics preferred shares.
Spark Capital: India’s 13% Market Decline Is Not Yet a Buying Opportunity
- A senior executive at Spark Capital Advisors said India’s equity market correction may not yet be deep enough to attract investors back into the market.
- The Nifty 50 has fallen around 13% this year, putting it on track for its weakest annual performance in more than a decade, according to the report.
- Slowing economic growth, elevated crude oil prices and stretched valuations could limit the potential for a sustained market recovery.
- The correction follows a decade in which the Nifty 50 nearly doubled in value, highlighting the contrast between its previous strong performance and the current market downturn.
SEBI to Seek Public Feedback on Simplifying FPI Rules; Beneficial Ownership Disclosures Under Review
- SEBI Chairman Tuhin Kanta Pandey said on Wednesday that the regulator will issue a consultation paper on simplifying foreign portfolio investor (FPI) compliance and onboarding, CNBC-TV18 reported.
- Pandey said FPI onboarding timelines have improved, but India’s compliance requirements remain more demanding than those in other markets.
- The proposed review follows earlier measures, including SWAGAT-FI, a single-window access mechanism for trusted foreign investors introduced in January, and digitally signed powers of attorney enabled in August.
- Separately, The Economic Times reported that SEBI is considering easing beneficial ownership disclosure requirements introduced after the Hindenburg controversy for certain concentrated FPIs.
- Potential changes could include exemptions for some public sector undertaking (PSU) holdings, although no final decision has been announced.