The week in Breakingviews: For whom the bell rings
SPY•Firmus Technologies cancelled its planned $31 billion listing, while the 10-year U.S. Treasury yield has risen around one percentage point since late April. The newsletter also estimates that raising rates on U.S. savings accounts from 1.9% to 4% could cost banks $79 billion a year.
1. Market jitters
Firmus Technologies cancelled its planned $31 billion listing, citing “recent market volatility and prevailing market conditions.” The Australian data centre operator had promoted a valuation measure comparing its projected enterprise value in 12 months with expected earnings two years later.
2. AI and borrowing costs
The newsletter notes that the 10-year U.S. government debt yield has climbed around one percentage point since late April, changing the calculus for debt-heavy projects. It also says OpenAI revenue was running at an annualised rate of about $50 billion in September, $20 billion below a previously reported figure.
3. Potential bank pressure
Digital assistants could help consumers seek higher rates on deposits, squeezing banks’ net interest margins. Raising the rate on the $3.8 trillion in U.S. savings accounts from 1.9% to 4% would cost lenders an estimated $79 billion a year in lost income.
