Rate-Hike Odds Spike As Chair Warsh Tilts Hawkish, Questions AI Productivity Timing, Prefers "Quieter" Fed

Bank Of Canada Warns Markets More Vulnerable To Sharp Correction Due To AI Concentration, Basis Trades The Bank of Canada said the global financial system has functioned (surprisingly) well through recent global shocks, but underscored the risk of a sharp asset price correction as well as vulnerabilities related to the role hedge funds are playing in debt markets. The central bank’s 2026 financial stability report released Thursday noted financial asset valuations have continued to rise, while the stock market is increasingly concentrated in a handful of large tech companies that are...

Nvidia Set To Reveal Record $500 Billion Off-Balance Sheet SPV Deal To Fund The World's Biggest Circle Jerk: Report In what is shaping up as a record-breaking, off-balance sheet SPV deal, one which will send CDS and credit yields surging far beyond where the recent explosion in AI debt has already pushed them, and as shown in the chart below, it's pretty, pretty far... ... the FT reports that Nvidia - unable to generate fund the old-fashioned way by earnings - is working with the world’s largest financial groups are to...

Mind-Numbing Irony: US Asks Ukraine's Help To Shoot Down Iran's Shahed Drones In Gulf In the ultimate irony of ironies, Financial Times is reporting US officials are discussing the purchase of Ukrainian-made drone interceptors to counter Iranian drones, which some analysts say have proven harder to stop than expected. Patriot missile interceptors used by US allies cost more than $4 million each, while the Ukrainian systems are significantly cheaper and designed to defeat the same Shahed-type drones used by Russia. Image source: Come Back Alive Foundation Supplies are dwindling and costs are soaring, after approaching...