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The long-awaited S-1 filing from Anthropic has finally landed and, if all goes smoothly, it could bookend a year of two of the biggest IPOs in history. It may also restart a stalled IPO market that’s been waiting on it. Markets have been choppy in the runup to the mega-IPO from the first frontier AI lab to try and tap the public for much needed funding. Ed Ludlow, Bloomberg Tech Host and Seth Fiegerman, Bloomberg News AI Editor have the details. Plus, Axel Merk, President and Chief Investment Officer, Merk Investments says that markets are fundamentally misunderstanding the Warsh Fed. And Bloomberg Balance of Power co-hosts Joe Mathieu and Kailey Leinz preview US Midterms. (Source: Bloomberg)

US stock investors face a pivotal week, with corporate earnings reports led by major AI players and a Federal Reserve meeting posing critical tests for a suddenly shaky market rally.Weakness in technology shares left investors on edge about the state of the AI trade that...

The latest group of megacap earnings, a Federal Reserve meeting and a key inflation report are all on deck.

The Dow Industrials, S&P 500 and Nasdaq closed lower Friday while technology shares steadied to end a turbulent week for the market-driving AI trade, and investors looked ahead to a busy slate of corporate earnings and a Federal Reserve interest-rate policy meeting.

Nadia Lovell, UBS Global Wealth Management’s head of global equity strategy, said markets may remain volatile over the coming weeks amid earnings, next week’s Federal Reserve meeting, midterm-election uncertainty and the Middle East conflict’s impact on energy and oil prices. Despite risks around financing the AI buildout, she said economic growth and demand remain strong, with much of the investment led by high-quality hyperscalers. Lovell said investors should not abandon the AI trade, but should become more selective. (Source: Bloomberg)

Higher interest rates and tighter financial conditions can kill the AI boom, but those forces are already at work in the bond market. The post Breitbart Business Digest: The Bond Market Is Already Doing Warsh’s Work appeared first on Breitbart .

The AI boom is sucking up all the capital. The Federal Reserve is raising rates to try to cool inflation. And one sector is bearing the brunt of the pain from both: housing . The big picture: The situation is lose-lose for both homebuilders and homebuyers. Builders are facing more expensive capital and bidding for scarce construction-related resources. Would-be buyers are being quoted some of the highest mortgage rates of this century. New September housing starts data out Tuesday morning puts an exclamation point on what has been a slow-moving disaster for a sector that plays an outsized role in the economic cycle and in Americans' basic living standards. By the numbers: The number of housing units started by builders fell 5.2% last month, the Census Bureau said , to 1.22 million. It's down 7.4% year over year and near post-pandemic lows. Starts of single-family homes fell 4.6% to their lowest level since March 2023. Pending home sales fell 7.3% last month, the National Association of Realtors said Tuesday morning, to the lowest since the data was tracked going back to 2001. Homebuilder sentiment fell this month to its lowest level since 2012, the National Association of Home Builders said Monday. State of play: The average 30-year fixed-rate mortgage rate was 7.4% earlier this month, Freddie Mac said in its most recent weekly reading. The rate was briefly higher than that in 2023, but has not been consistently above that level since the fall of 2000. That has kept homebuyers on the sidelines — while a parallel rise in borrowing costs for developers has made it harder for new projects to pencil out. In effect, the bottomless demand for capital from AI hyperscalers and the U.S. government has to squeeze something, and that something has been the housing sector. Residential investment has subtracted from overall GDP for five of the last six quarters. Zoom out: Housing affordability is the crux of Americans' broader dissatisfaction with economic conditions, and all signs point to it getting worse, not better. For all the bipartisan emphasis on increasing housing supply — most prominently in the passage of a law to encourage more building earlier this year — conditions are weighted against a building boom. Housing developers are competing with data center builders for labor and materials like copper, concrete and HVAC equipment. Of note: Restrictionist immigration policy has also crimped the supply of construction workers . "Nationwide, more than one-third of builders reported immigration enforcement activity in their market areas during the past month, causing construction delays and discouraging legal workers from reporting to work," said NAHB chairman Bill Owens, an Ohio homebuilder, in the sentiment release . Between the lines: An unfortunate side effect of relying on Fed interest rate policy for macroeconomic stabilization is that interest-sensitive sectors, particularly housing, take it on the chin when the economy shows signs of overheating. It's particularly problematic now, when persistent undersupply of housing is a defining economic challenge of our age. The bottom line: The current alignment of interest rates, housing supply and construction costs isn't making anybody happy. Builders can't afford to build, buyers can't afford to buy, and even the people sitting pretty with pre-2022 mortgages can't afford to move.

AI giants keep borrowing as rates rise, blunting the central bank’s main tool against inflation.