AI may lead to inflationary pressures: Bank of Canada
Bank of Canada Governor Tiff Macklem highlighted the potential risks AI poses to inflation and financial stability in the short term.
Bank of Canada Governor Tiff Macklem highlighted the potential risks AI poses to inflation and financial stability in the short term.
Nuclear energy has been a hot topic in investors' minds after Microsoft (MSFT) and Constellation Energy (CEG) announced an agreement to restore a dormant nuclear power plant to power the tech company’s AI and cloud data centers. Radiant Energy Group founder and managing director Mark Nelson joins Josh Lipton and Julie Hyman to explain how nuclear energy could power the artificial intelligence era. Microsoft wants to restore the Three Mile Island nuclear power plant in Londonderry Township, Pennsylvania, known for one of the largest nuclear disasters in the US when one of the plant's two reactors melted down in 1979. A nuclear engineer himself, Nelson explains that the plant’s other reactor “kept going for 40 years. The only reason it closed in 2019 is because fossil fuels were really cheap.” He says there’s a renewed interest in nuclear energy today because “we're running out of other energy sources… we're running out of power, and we're realizing that if we're going to have everybody buy electric vehicles, we have to be able to charge it from power plants that run all the time.” Nuclear power plants could help meet the energy-intensive needs of training and running AI, which has brought the utilities sector into focus. Nelson says building new nuclear plants and restoring existing ones could help. “The very best American design for a nuclear plant is being built in China over and over again for about four years or so per reactor and about $3 billion. I don't think we're going to meet China's prices for building our reactors, but we could probably do a lot better building our reactors if we do it in series with the same design, the same plant layout, and we do it over and over," the expert tells Yahoo Finance. “Fortunately, we've got designs that are licensed and ready to go today at existing nuclear plants that already serve tens of millions of customers. Aand those are the plants that are being approached by the data centers. So I think to get over this hump, we have to accept that we've got outstanding equipment ready to install. We've just forgotten how to do it and we need to do it the same way every time.” For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Naomi Buchanan.
The Japanese yen (JPY=X) weakened against the US dollar on Friday after the Bank of Japan left its interest rates unchanged. The central bank signaled that it can take its time when deciding to hike rates again as its economy remains on track compared to the uncertainty in the US. Lauren van Biljon, Allspring Global Investments portfolio manager and head of rates & FX for the global fixed income team, joins Seana Smith and Madison Mills on Catalysts to dive into how investors can play the currency market in the current environment. "You've really got to control your position sizing and keep your sort of stops both to the upside and the downside," van Biljon says, adding, " I think a good way to play it right now is, is on a more regional basis." Van Biljon recommends the Norwegian krone (NOK=X) as an attractive option given the global divergence in policy decisions. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Cheyenne Reid.
Raymond James Investment Management chief market strategist Matt Orton joins Brad Smith and Seana Smith on Morning Brief’s Strategy Session to discuss how to play artificial intelligence (AI) stocks beyond the Big Tech names. As mega-cap tech stocks gain and September's interest rate cut sends the market higher (^DJI, ^IXIC, ^GSPC), Orton says he still likes the Big Tech sector. “There's plenty of reasons that clients still want to own the mega-cap technology names. Especially the high-quality ones that are generating $50 [billion], $60 [billion], $70 billion of free cash flow per year. But what I've been encouraging clients really for the past three months or so is that we have an opportunity to build better balance in our portfolios.” “Now that we're finally starting to get rate cuts, I think we're starting to see more of a clear path to get to that soft landing. That should support a lot more cyclical parts of the market, too, that maybe haven't done as well as technology," he says about the Federal Reserve's rate cut move. Orton explains that there are stocks and sectors he sees benefiting from the AI boom without being directly tied to developing the tech the way Big Tech companies are, what he calls the “AI 2.0 bucket." “Take the industrial space, for example. You look at electric equipment companies. We know we need more power in this country. We also know we need to cool data centers down as you continue to get more of them. So companies that are producing cooling solutions and liquid cooling, those names look very attractive.” Orton says he tells clients to “play offense with defense” as while there are concerns around geopolitical conflict, defense companies are benefiting from governments' increased spending. “You're finally seeing that translate into increased earnings and free cash flow across a number of defense companies.” “There's an opportunity in that part of the market and in totally non-related to artificial intelligence,” that “aren't just tech or semiconductors,” Orton tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Naomi Buchanan.
US stocks fell after the Dow Jones closed above the 42,000 level for the first time on Thursday.
The average rate on a 30-year fixed mortgage has fallen to 6.09%, according to the latest data from Freddie Mac. Meanwhile, a new Redfin report shows that median monthly housing payments have posted their largest decline in four years. Yahoo Finance Senior Housing Reporter Dani Romero joins Wealth! to break down the news and what it means for homebuyers. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl
The Dow Jones Industrial Average (^DJI) hovers above its flatline at Friday's close, while the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) stumble in the trading session. Overall, all three of the market indexes capped off another week of gains on their five-day moving averages following the Federal Reserve's decision to cut interest rates. Market Domination Overtime host Julie Hyman recaps the day's market moves, particularly in the energy sector (XLE) and electricity generators and providers. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.
According to Odaily, Federal Reserve Governor Christopher Waller has expressed support for a 50 basis points rate cut, stating that recent inflation data justifies this decision. Waller mentioned that two weeks ago, he had considered a 25 basis points cut as a good option but remained open to a larger reduction of 50 basis points.
According to BlockBeats, on September 20, Federal Reserve Governor Christopher Waller indicated that the central bank might contemplate a 50 basis point rate cut if the employment market shows signs of significant weakening. This statement underscores the Fed's readiness to adjust monetary policy in response to economic conditions, particularly in the labor sector. Waller's comments come amid ongoing discussions about the health of the U.S. economy and the appropriate stance of monetary policy to support sustainable growth and employment. The potential rate cut would be a significant move, reflecting the Fed's commitment to mitigating economic downturns and ensuring stability in the job market.
According to Odaily, Visa's Head of Crypto, Cuy Sheffield, has forecasted a significant increase in the demand for stablecoins based on non-USD fiat currencies in the coming years. While the US dollar is well-suited for cross-border transactions, Sheffield emphasized the importance of fast and efficient local currency conversions, which presents a substantial opportunity for other local currency stablecoins. He predicted that every major fiat currency will eventually be represented on the blockchain. Sheffield welcomed the emergence of more stablecoins that differentiate themselves from USDT or USDC, describing this as an 'exciting' trend. He also highlighted that 2024 marks a turning point, with some non-crypto companies beginning to explore the use of stablecoins to address the challenges of paying overseas freelancers.