AGP Executive Report

Market Risk: An AI-led sell-off is spreading beyond US tech stocks as investors question whether heavy spending will deliver returns. Anthropic may have to cut its IPO valuation from $1.5 trillion toward $1 trillion, shrink the offering or delay it. Strong US jobs data has also revived concern that rates could stay high. India Flows: Foreign investors poured ₹45,960 crore into Indian equities in a week, helping the Nifty surge 8.58%. But Indian firms’ overseas investment stock grew 40.8% in FY26, faster than inward FDI, narrowing the inward-FDI-to-outward-investment ratio to 4.2. Turkey’s Fund Scandal: Foreign investors sold $3.65 billion in Turkish securities over seven weeks as a fund liquidity crisis deepened. Four current and former officials were arrested in the investigation. Private Credit: IFC and BlueOrchard launched a vehicle targeting up to $2 billion for emerging-market businesses, with a $300 million first close anchored by Tokio Marine. Sovereign Borrowing: Bhutan’s plan to raise Nu 33.5 billion through domestic bonds faces questions over whether its narrow investor base can absorb the issuance.

Market Turmoil: A sharp tech selloff erased about $2.5 trillion from Nasdaq-listed stocks as investors reassessed AI spending and the risk of tighter data-center rules. Anthropic’s planned IPO is also facing pushback, with prospective investors questioning its $1.5 trillion valuation and whether to delay the offering. Capital Flows: Kenya’s foreign investment inflows jumped 170.5% to a record $2.74 billion, while growth reached 5.2%, according to the World Bank. In India, overseas direct investment rose 40.8% in 2025-26, far outpacing the 8.5% increase in foreign inflows. Banking and Litigation: KPMG agreed to pay $224.5 million to settle claims over its audits of collapsed Silicon Valley Bank. Separately, an Ontario court certified a class action accusing TD Bank of misrepresenting its anti-money-laundering controls. Startup Funding: Sierra Leone is helping local founders prepare for international investment, with a venture capital executive advising them on financial records, market research and credible forecasts.

Market Turmoil: AI fears and election uncertainty sent the Nasdaq down 5.5% Thursday, wiping about $2.5 trillion from tech stocks; markets steadied Friday, but investors remain wary of spending-heavy AI firms. Anthropic’s planned $1.5 trillion IPO valuation is under pressure as investors question its costs and ability to deliver returns. Crypto: Bitcoin recovered toward $76,000 after falling nearly 6%, though analysts cautioned that selling had eased without clear signs of renewed buying. Banking: First Nations Bank of Canada raised $50 million, including $15 million from Mississaugas of the Credit First Nation; the bank says the new capital will expand its lending capacity. Property: Asia-Pacific commercial real estate investment rose 24% in the first nine months of 2026, but higher rates and increased selling intentions point to more cautious risk appetite. Corporate Finance: DraftKings shares slumped after the company sharply cut its 2026 earnings outlook, citing heavy investment in prediction markets.

Market Rout: U.S. stocks lost about $2.5 trillion as fears of tighter scrutiny and slower data-center construction hit AI shares. The Nasdaq fell 5.5% on Thursday, and Asian markets followed, with South Korea’s Kospi briefly plunging more than 8%. IPO Watch: Anthropic investors are questioning its planned $1.5 trillion valuation, raising doubts about the timing of its expected November listing and increasing pressure for a lower price. Canada’s Investment Push: Budget 2026 offers businesses immediate write-offs for eligible capital spending, cutting the effective tax rate on new investment from 13% to 6.4%. It also expands insurers’ scope to invest in Canadian infrastructure. Regional Investment: Johor is courting Singapore-based businesses through a network of 200 stakeholders; the state recorded RM59.4 billion in approved investment in the first half of 2026.

Market Turmoil: The Nasdaq fell 3.2% Thursday, putting it 10% below its October peak as investors questioned AI spending and data-center expansion. Fed official Tom Barkin also warned that AI infrastructure investment is adding to near-term inflation pressures. Investor Protection: Türkiye says it has returned $2.6 billion to more than 420,000 investors in 108 funds being liquidated, using fund assets and recovery accounts rather than public money. Capital Markets: Bangladesh plans to simplify IPOs and digitize approvals to make its market a stronger source of long-term business and infrastructure funding. India’s SEBI has eased digital KYC for overseas investors, removing the need to visit the country to onboard. Investment Flows: Companies discussed about $400 billion in potential renewable-energy investments in India, spanning clean power, storage and transmission; the figure reflects opportunities discussed, not committed funding. Energy Risks: Oil prices rebounded as investors weighed uncertainty over the Iran conflict and its implications for supply.

Market Pulse: Global stocks rallied after Democrats’ midterm gains eased some political uncertainty, though investors remain alert to shifting policy and geopolitical risks. Oil fell 9% as markets weighed hopes for an end to the Iran conflict. South Korea: Major investment banks lifted the country’s 2026 growth forecast to 3.7%, citing strong semiconductor exports and faster-than-expected third-quarter growth. Separately, Korea secured a record $2 billion in foreign investment pledges, largely for advanced industries and energy. Investor Confidence: Fintech firms reportedly lost $420 billion in value as confidence weakened, while UK equity funds continued to see outflows. Fixed Income: Energy Oman opened subscriptions for a five-year sukuk paying 5% annually, with institutional bids accepted through Nov. 12. China’s Affluent Investors: Financial confidence rose to its highest level since 2021, but fewer than 55% of those surveyed had a formal financial plan, and portfolios remained heavily weighted toward cash and deposits.

Market Mood: Stocks rallied for a fifth session in India, but elevated volatility and US election uncertainty kept investors wary; US futures swung as Democrats were projected to take the House. Big-ticket Investment: Google plans to invest $15 billion in Malaysian data centres and digital infrastructure over 2027–28, with the project expected to support more than 37,000 jobs a year during construction. Institutional Capital: Norway’s sovereign wealth fund made its first direct battery-storage investment, buying a 10% stake in Aypa Power for $300 million. Technology: The European Commission launched a €525 million initiative to back a new generation of chip-design companies. Market Access: India’s SEBI simplified KYC requirements for foreign investors, aiming to ease access to local markets. Energy Risk: ExxonMobil is holding back on a return to Venezuela, seeking stronger legal protections and predictable financial terms before committing capital.

Markets: US stock futures fell as investors weighed midterm results, with Democrats projected to take the House and control of the Senate still uncertain. AI spending concerns added pressure: Apple and Palantir shares slipped, while markets faced the prospect of tighter regulation and congressional gridlock. Oil prices also edged lower amid election uncertainty and hopes for progress in Middle East talks. Clean-Energy Investment: China attracted $45 billion in clean-industry investment in 2026 and now accounts for 49% of clean industrial plants operating or under construction worldwide, according to a new tracker. Venture Capital: Ballistic Ventures is seeking $490 million across two funds, targeting cybersecurity investments as AI adoption drives activity in the sector.

Market Moves: AI-related investment pullbacks weighed on the ringgit on Nov. 3, while Asian markets were mixed as investors questioned the returns on heavy tech spending. Investor Protection: The UAE’s capital-markets regulator plans an Investor Protection Fund and is exploring retail sukuk; in Malaysia, a court heard that Fashion Valet’s investment funds could not be used to pay dividends in a case involving RM8 million in funds. Major Deal: Brookfield and CPP Investments completed their $5.2 billion acquisition of LXP Industrial Trust, taking its 107-property portfolio private. Clean-Energy Capital: India says renewables attracted $67 billion over the past two years and could draw more than ₹20 lakh crore by 2030, with battery storage a priority. Foreign Investment: SEBI has proposed scrapping the 12.5% long-term capital-gains tax on foreign investors, as the government weighs investor concerns.

Market Flows: Chinese institutional investors have been net buyers of A-shares since October, extending purchases of more than 1.5 trillion yuan since September 2024 despite volatility. AI Spending: Investor nerves are growing over Big Tech’s costly AI buildout, with Oracle and Meta seeking up to $20 billion each as markets rotate out of tech. Palantir’s quarterly revenue surged 96% to $2.3 billion, but its shares swung after results. Policy and Capital: India’s SEBI has recommended scrapping the 12.5% long-term capital-gains tax for foreign investors, as Finance Minister Nirmala Sitharaman acknowledges market concerns. Singapore’s MAS will offer insurers S$30 million to build infrastructure-investment capabilities and adjust capital rules to better reflect risk. Crypto Risks: Investors have withdrawn billions from Binance after a major hack, renewing scrutiny of security and protections in digital-asset markets.

AI Financing: Investors are questioning Big Tech’s returns on soaring AI bills. JPMorgan estimates Amazon’s capital spending could reach $395 billion in 2027, while Oracle plans to raise $20 billion through debt and share sales to fund its AI and cloud build-out. India’s Markets: SEBI has proposed scrapping long-term capital-gains tax for foreign investors and offering relief to mutual-fund investors switching schemes. The nonbinding proposals come as foreign investors have sold a record $31 billion in Indian stocks this year. Asia Investment: The Johor-Singapore economic zone recorded RM88.83 billion in approved investments through June, with 45% realised. Separately, Chinese businesses signalled plans to invest US$15 billion in Malaysia, though the proposals are still at an early stage. Private Capital: HDFC Capital and DivyaSree Developers are creating a housing platform backed by Rs 1,500 crore to develop projects with a potential gross value of Rs 6,750 crore. IPO Watch: Anthropic plans to seek up to $3.5 billion from Japanese investors as part of its planned IPO.

AI Market Reset: OpenAI reportedly cut its fundraising target from $30 billion to $20 billion and lowered its valuation to $1.25 trillion from $1.4 trillion as investor appetite cooled. A tech sell-off erased more than $1 trillion in market value, prompting some investors to buy downside protection. Flight to Safety: Bond demand has risen as investors reassess AI-driven growth and the cost of financing data centres. New Zealand’s tech-light share market may be holding up better amid the volatility. South Korea’s AI Push: President Lee proposed 21.3 trillion won (about $16 billion) for AI and related projects in a record 820.9 trillion-won budget, as chip demand boosts exports and growth. Gold Under Pressure: Higher inflation and bond yields have dragged gold sharply lower from its January peak, challenging its appeal as a portfolio hedge.

Credit Markets: A rout in junk debt has hit credit investors, while rising funding costs add to concerns about risk. AI and Equities: October’s AI trade stumbled: S&P 500 technology stocks fell 6.8%, and momentum ETFs lost about 10% as investors questioned returns on heavy data-center spending. JPMorgan still forecasts global corporate profits rising nearly 30% in 2026 and 20% in 2027, but warns that debt and funding costs are growing risks. Anthropic’s projected compute spending of up to $150 billion next year adds to scrutiny. Capital Markets: Dangote Petroleum’s IPO drew applications from all 54 African countries and 120 nations worldwide, highlighting global interest in African industrial assets. Investor Protection: A former accountant was sentenced to 63 months in prison for an $8.2 million fake-property investment scheme, a reminder to scrutinize private deals and promised returns.

AI Market Jolt: South Korean exports jumped 93.7% in October, powered by chip demand and AI investment. But markets recoiled at Big Tech’s soaring AI costs: Alphabet lost $482 billion in market value in one session, contributing to a wider tech sell-off. Crypto Risk: A $6.3 billion Binance hack coincided with $643 million in Bitcoin ETF outflows on Friday, ending four days of inflows; Ether funds also saw withdrawals. Investor Protection: SEBI Chairman Tuhin Kanta Pandey pledged simpler fundraising rules and stronger safeguards as West Bengal’s investor base topped 9 million, up from 1.2 million in FY15. Banking & Capital: VM Group says overseas Jamaicans hold J$40 billion of its J$170 billion in deposits and account for about 30% of its mortgage portfolio.

Market Risk: Big Tech’s sell-off deepened as investors questioned whether heavy AI spending will pay off. OpenAI reportedly cut its funding target from $30 billion to $20 billion, while investors pulled money from U.S. equity funds. Crypto Exposure: Binance’s $6.3 billion hack has put investors on edge; deposits and withdrawals remain suspended as the exchange works to contain the fallout. Market Regulation: India’s SEBI says it is streamlining fundraising and easing compliance while strengthening investor protection. Separately, authorities attached Rs 85.19 crore in assets in an alleged investment fraud case. Regional Markets: Nepal’s NEPSE rose 2.13% last week, lifting market capitalisation by Rs 96 billion.

Crypto Security: Binance halted withdrawals after hackers stole about $6 billion, the largest crypto heist on record. Firms froze roughly $3 billion, while blockchain analysts pointed to suspected North Korean links; Binance says it will cover losses and customer funds are safe. AI Spending and Markets: Tech shares tumbled as investors questioned whether huge AI outlays will pay off. Amazon plans $220 billion in capital spending this year and reported a $33.4 billion quarterly free-cash-flow shortfall; Intel fell as much as 30% after issuing a weak revenue forecast. Investor Flows: Global ETFs drew a record $2.24 trillion through September, with iShares, Vanguard and State Street capturing nearly half. Meanwhile, foreign investors sold 19 trillion won in Korean stocks and pulled more than 7 trillion won from bonds in September. Shareholder Claims: Zillow agreed to pay $212.5 million to settle claims that it inflated its share price around its failed home-flipping business.