Welcome to Markets Desk, your midday read on what's moving markets and why.
BMW shares have hit a five-year low after the automaker slashed its profit guidance, blaming a meaningful slowdown in China alongside supply disruptions tied to the Iran conflict. The double hit underscores how exposed European legacy automakers remain to geopolitical risk and the uneven pace of Chinese consumer recovery.
Shifting to credit, there's a striking dynamic playing out in bond markets right now — the largest corporate borrowers are actually carrying the tightest spreads. More than three hundred billion dollars in new issuance has hit markets since the start of twenty twenty six, yet credit-default swaps show virtually no stress. Investors know the AI infrastructure buildout story and keep absorbing the supply without flinching.
And speaking of AI ambitions, Jeff Bezos told an audience this week that orbital data centers are not a science problem — they're a cost problem. He believes microchips could eventually be manufactured in space, and pushed back on fears that AI destroys jobs, arguing the opposite. It's a long horizon bet, but one the market is clearly paying attention to.
That's the tape. Markets Desk, signing off the floor.
