European stocks are losing momentum as investors pivot from cheap regional equities to the AI trade and worry about a global energy shock. The Stoxx Europe 600 has fallen behind the US and Asia because Europe’s economy is exposed to inflation and supply-chain disruptions from the Middle East conflict, and because its benchmarks contain too little AI-heavy exposure. Even with earnings growth expected, forecasts may be cut as energy hits and higher European borrowing costs threaten growth.
Alphabet has launched its first yen-denominated bond sale, issuing 576.5 billion yen (about $3.6 billion), the largest such offering by any foreign company. The debt helps fund the company’s major AI investment push and broader efforts to diversify funding sources beyond prior euro, sterling, Canadian dollar, and Swiss franc issues. Underwriters say demand was strong domestically and internationally, surpassing Berkshire Hathaway’s 2019 yen record. Bonds are set to mature from 3 to 40 years, with coupons ranging 1.965% to 4.599%.
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Meta says first-quarter 2026 profits jumped 61% to $26.8 billion and revenue rose 33% to $56.3 billion, with earnings per share beating forecasts. Still, the company plans about 10% layoffs and eliminates thousands more roles, citing productivity gains to fund a major AI push. Capital expenditure guidance also climbs as data center spending accelerates.
The US economy grew at a modest 2% annual pace in the first quarter of 2026, rebounding from a weak 0.5% expansion following a federal shutdown. Government spending jumped, and business investment rose 8.7%, partly powered by artificial intelligence. But consumer spending slowed to 1.6%, leaving the growth mix mixed going into what may be a volatile period.
Foreign investors have sold Indian stocks worth over ₹1.8 lakh crore in 2026, already surpassing the total outflows recorded for 2025. The steep selling is the highest in the first four months of any year, driven by a weak rupee, high oil prices, and fewer AI-related investment opportunities as capital shifts to semiconductor and AI plays like South Korea and Taiwan.
Microsoft has launched a voluntary retirement scheme for thousands of US employees, targeting about 7% of its workforce as it reshapes staffing and trims expenses while investing heavily in AI. A company memo says participants may be treated as retired if their combined age and years of service reach 70. Eligibility varies, and some roles are excluded.
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