UBP: AI Spending Doubts Weigh on Global Equities

• Global equities fell for a second week as investors questioned whether debt-funded AI spending can generate adequate returns.
• The MSCI ACWI lost 0.9%; Meta shares dropped 9% as its 2026 capital spending forecast reached USD 135-145 billion.
• French 10-year OAT-Bund spreads widened 30 basis points to 167 basis points, the widest since the eurozone sovereign crisis.
• AT1 exposure was replaced with high yield to preserve carry while reducing exposure to French sovereign stress.
• Hyperscaler credit-default-swap spreads widened 20-35 basis points, highlighting growing credit concerns over the AI investment boom.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Union Bancaire Privee UBP SA published the original content used to generate this news brief on October 26, 2026, and is solely responsible for the information contained therein.