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On October 17th, according to the Financial Times, Anthropic is offering Blackstone Group a yield exceeding 10% to raise funds to support its latest chip deal. This $60 billion debt financing program, dubbed "Project North Star," will help Anthropic procure approximately 1.5 gigawatts of custom semiconductors, or TPUs, developed by Google. It is expected to be the largest chip financing deal to date and a key test of investor demand for AI-related debt. Sources familiar with the matter revealed that Blackstones funds will invest $9 billion to purchase debt backed by Anthropics chip lease payments over the next five years, representing half of its approximately $18 billion in subprime loans. Blackstone has received a coupon rate offer of 10%, and the total yield will be even higher after accounting for new debt issuance discounts and other fees. According to the Intercontinental Exchanges Bank of America BB-rated U.S. High Yield Bond Index, borrowers with similar credit profiles typically pay around 7% yields when financing in the public bond market.According to the Financial Times, Anthropic offered Blackstone Group a double-digit yield in its latest chip financing deal.In an executive order, U.S. President Trump stated that he would waive certain sanctions, restrictions, and tariffs applicable under the Graham Act on sanctions against Russia and Iran, effective immediately.On October 17th, Russian President Vladimir Putin stated on the 16th that, in response to attacks by Ukrainian authorities on Russian industrial enterprises and fuel and energy complexes, the Russian armed forces continue to strike Ukrainian military-industrial complexes and related facilities. Putin stated that the Russian military is accelerating its offensive across the entire front, and the "safe zone" along the border with Ukraine has significantly expanded in recent months. One of the main tasks on the ground remains the "liberation" of Donetsk. The Russian militarys control of Dobropilya was a landmark event in the special military operation, opening up a passage to Donetsk.On October 17th, German Chancellor Merz stated in Brussels, Belgium, on the 16th that the EU should exercise fiscal restraint in negotiating the next long-term budget, opposing a significant increase in its size and emphasizing that limited funds must be prioritized for defense and competitiveness. Following the conclusion of the two-day EU summit, Merz explicitly opposed the proposal to increase the next budget by approximately 50% at a press conference. He said that drastically increasing the EU budget is "fiscally unfeasible," and the final budget figure must be significantly reduced based on the European Commissions proposal. Merz posted on social media on the 15th that Europes funds are limited and clear priorities must be set. "We must invest funds in key areas that will determine Europes future—defense and competitiveness."

As focus shifts to RBA policy, the AUD/NZD crosses 1.120

Alina Haynes

Jul 29, 2022 10:54

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After turning around at the crucial support level of 1.1100 on Thursday, the AUD/NZD pair has since moved sideways. The narrow consolidation range between 1.1105 and 1.1119, which was created during the Asian session, has been violated by the cross. The Reserve Bank of Australia is expected to increase interest rates by 50 basis points (bps) for the second time in a row (RBA).

 

The RBA will review the Official Cash Rate at its upcoming monthly monetary policy meeting (OCR). According to a Reuters poll, RBA Governor Philip Lowe will increase the OCR for the third time in a row by 50 basis points. The OCR will rise to 1.85 percent as a result. Policy tightening is required in view of the growing pricing pressures in the Australian economy. In the second quarter of CY2022, the Australian Consumer Price Index (CPI) increased to 6.1 percent.

 

The inflation rate was higher than the prior measurement of 5.1 percent even though it remained 10 basis points below the consensus. By the end of September, the cash rate is predicted by 19 of the 31 economists surveyed by Reuters who have a long-term perspective on rates to be at 2.35 percent or higher. This raises the possibility of the expected fourth consecutive rate rise of 50 basis points.

 

Kiwi bulls in New Zealand have not benefited from rising ANZ- Roy Morgan Consumer Confidence statistics. The qualitative data now stands at 81.9, an increase over the prior report's 80.5. The labor market figures for New Zealand will be released next week, which is crucial.