Connecting the Dots: Rates Volatility, AI Investment and Oil Capex

This report synthesizes weekly research highlights focusing on the risks of rising bond yields to equity momentum, the massive infrastructure needs for European AI data centers, and the beginning of a new oil exploration capex cycle.

Key Takeaways

• 1.Equities are increasingly negatively correlated with bond yields, creating a potential 'speed bump' risk as 30-year UST yields exceed 5%.
• 2.AI investment in Europe is critical for security of supply, specifically in Data Centers and power grids, benefiting utilities like Enel and Naturgy.
• 3.Oil and gas capital expenditure is inflecting, with seismic and exploration activity picking up after a decade of significant vessel fleet decline.

Table of Contents

• Rates volatility, AI investment vs. discipline and Oil capex plus key research
• AI – the need to invest vs. discipline
• GS Research from the week
• Conferences, Management Meetings and Roadshows
• AI
• Rates Volatility
• Energy Security & Supply Chain Disruption
• Ratings Changes & Initiations
• Sector Updates
• Tracking the Data
• Reiterate Buy
• Reiterate Sell
• Earnings & CMDs
• BSTL
• Commodities & Industrials
• Consumer
• TMT
• Healthcare
• Previews
• Events including M&A
• Macro & Strategy
• Other Global

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