Opinion

The bulk of US economic growth this year can be attributed to data centers. But what will all that infrastructure be worth once chips arrive that are a hundred times more energy-efficient than today’s models?

The title of this column is the Chinese word for “mirage” or “illusion.” Hot air, in other words. Just like the impressive Chinese growth figure that was proudly announced this week.

Last week, the French government survived two motions of no confidence, mainly by promising not to raise the retirement age from 62 to 64 for the time being. For S&P, however, this was reason enough to downgrade France’s credit rating from AA- to A+. It may seem like a minor detail, but for managers of fixed income funds that require at least AA-rated investments, it created an immediate problem. Did all those French government bonds suddenly need to be dumped?

Asian investors are turning to Luxembourg as their preferred gateway to global private markets. The flows are quiet but transformative.

The word is out! Fed Chair Jay Powell is considering stopping the reduction of the Federal Reserve’s balance sheet. If you think that balance sheet has slimmed down significantly after three years of quantitative tightening, you’re mistaken. Moreover, Powell is putting himself in an impossible position once again by lowering interest rates at the same time.

A groundbreaking study shows that “superstar cities” systematically lag in total returns — a crucial insight for valuing REITs (real estate investment trusts). The explanation lies in lower rental yields and surprisingly low risk, which fundamentally changes how future cash flows should be assessed.

The recent developments in the Middle East make one thing absolutely clear: president Donald Trump deserves the Nobel Peace Prize. This is the logical conclusion if we look at what the prize is supposed to reward: concrete peace achievements that save lives.

The public markets are shrinking, but private capital is booming, and Luxembourg is quietly building the exchange of the future.

So far this year, the euro has appreciated by no less than 13 percent against the US dollar. That drop in the dollar’s value — because that’s what it really is — was first explained as America discarding its “exceptionalism” under Trump.

Last week, during the Fund Event, I sat in a packed room around a metaphorical campfire. This time, questions didn’t come through the chat, but as paper airplanes floating through the air. Some landed in the fire and were answered immediately. Others fell into the ashes. Time to pick those up.