Good morning. In case you have not been following the news, there is an election today. And it appears that investors have finally accepted that the two candidates are neck and neck. The dollar and the 10-year Treasury fell yesterday as investors started to unwind their “Trump trades”. Let’s hold hands and jump into the abyss of uncertainty together. Email us: robert.armstrong@ft.com and aiden.reiter@ft.com.
S&P capex surged from 2021-23 but is flat over the past 12 months, except for the Magnificent Seven, which are charging ahead with AI investment: The broad picture is pretty clear. Corporate investment is not growing as a portion of GDP. The only type of investment that has been accelerating recently has been equipment, and that looks to be an AI effect. The same pattern is evident at large companies: investment is stagnant this year, except for Big Tech’s AI budgets.