Bloomberg reporter Justina Lee breaks down the price Wall Street is paying for AI talent: quantitative firms and AI labs are competing for top scientists, with some PhDs earning up to 800 thousand dollars in their first year.
BMO economist Jennifer Lee’s counterintuitive assessment: Heavy AI investment has pushed up interest rates and inflationary pressures, while a cooling in the sector makes the Fed’s job easier.
Reflection founder Misha Laskin sees open-source models as a gift, wherever they come from. The key question is whether US startups can make an open-source business work at low cost.
The Real Vision crypto macro roundtable argues that, with greater regulatory clarity, the arrival of major institutions is no longer just a rumor, and attention in crypto is shifting from sentiment to fundamentals.
Citi has reduced its equity and base metals allocations to neutral and remains underweight US and European investment-grade credit. In rates, it has added an overweight in UK government bonds while retaining an overweight in emerging-market government bonds.
Citi’s field research indicates that mining operations have resumed at CATL’s Jianxiawo lepidolite mine in Jiangxi, though formal environmental approval and a new mining permit remain outstanding. The bank believes the restart will weaken price support from lithium supply risks in 2027.
Asset allocation managers tracked by Citi remain positive on equities and commodities, but have reduced their allocation to emerging-market equities outside China and cut European bond duration since last month.
Lithium spot prices have fallen 40% since September 2026. Citi has cut its near-term price targets, saying supply growth and slower battery demand growth in 2027 will pressure prices, although low inventories can still provide short-term support.
Higher revenue per unit improved the core margin, but volume growth slowed and unit costs rose; the company is more optimistic than Citi about Asia-Europe freight rates.
Citi’s monthly conference call expects China’s economic growth to slow to 4.2% in 2027, with the growth target potentially lowered to “around 4.5%.” Participants advocated greater fiscal expansion than in Citi’s baseline scenario and expected pressure on real estate investment to outlast the period of home price adjustment.
Citi cut its 2026–2027 earnings forecasts for China National Nuclear Power while upgrading its rating from sell to neutral. The decision rests on expectations of a recovery in nuclear power market prices and the commissioning of new units in 2027, while losses in new energy and capital spending remain significant constraints.
Citi expects tight supply of standard electronic yarn and fabric and rising copper-clad laminate orders to leave room for further price increases in November negotiations; roving is weighed down by weak demand and inventory pressure.
Citi expects China's refined product exports to rise quarter on quarter in the fourth quarter, potentially weighing on diesel and jet fuel crack spreads alongside the easing of South Korean diesel export restrictions and the release of European reserves. Meanwhile, refiners' freight exposure will determine the extent of the pressure on their margins.
Flooding in Thailand delayed shipments and revenue recognition, with third-quarter revenue and net profit both well below Citi’s expectations. The company is counting on a recovery in fourth-quarter deliveries, while Citi has also lowered its gross margin assumptions for the next three years.
US tech debt has fallen 9% year to date, with returns relative to the investment-grade bond index at a 30-year low. BofA considers yields attractive, but capital spending and cash-flow pressures at big tech companies continue to grow.
Citi believes AI could lower molecular design costs and expand the pool of R&D projects while making experimental validation a bottleneck. WuXi Biologics and Insilico Medicine stand to benefit from laboratory and manufacturing services, and platform and drug asset licensing, respectively.
Third-quarter revenue rose 28% quarter on quarter but missed Citi and Bloomberg consensus estimates; a gross margin of 65% supported profit performance. Citi expects revenue to improve further in the fourth quarter while lowering its medium-term earnings forecasts and target price.
Submarine cables and offshore equipment and engineering drove third-quarter revenue up 40% year on year, but impairment losses held back net profit growth. Weak offshore wind tendering also reduced the order backlog, leading Citi to cut its earnings forecasts and target price.
Third-quarter growth in intelligent driving domain controllers was driven by projects entering mass production, but higher raw material prices and delays in passing costs through to customers lowered gross margin quarter on quarter. Citi maintained its earnings forecasts and Neutral rating, while the robotics business began securing design wins.
