MPC Morning Call 18th December 2025 – Oracle continues to pull the rug under AI, safe havens fly
Stocks continued to get hit overnight as Oracle pulled the rug on the AI rally as a datacentre deal got cancelled due to funding issues
WATCH ON YOUTUBE MPC Morning Call 18 th December 2025 – Oracle continues to pull the rug under AI, safe havens fly Stocks continued to get hit overnight as Oracle pulled the rug on the AI rally as a datacenter deal got cancelled due to funding issues Oracle Corporation shares fell more than 5% after reports that Blue Owl Capital pulled out of financing its $10 billion AI datacenter project in Michigan, planned for use by OpenAI. The stalled talks between Blue Owl, lenders, and Oracle have amplified investor unease over the massive capital demands and uncertain payback periods tied to AI infrastructure. Oracle stocks, which have symbolized the broader AI datacenter investment wave, are down over 41% in the past three months but remain up 14% for the year. The news also dragged down other AI-related stocks, including Broadcom and NVIDIA. Federal Reserve Governor Christopher Waller suggested the Fed still has room to cut interest rates by roughly 50 to 100 basis points, though he cautioned against rushing. Speaking at the Yale School of Management, Waller noted that inflation is moderating but the U.S. job market has weakened, warranting steady rate cuts toward neutrality. Despite last week’s 25-basis-point cut, economic data continues to show mixed signals — payroll growth offset by a rising jobless rate, and disappointing figures across manufacturing, services, and retail sales. Waller’s remarks drew added attention as reports surfaced that former President Donald Trump might interview him for the next Fed Chair position. Investor attention also turned to Micron Technology, set to report earnings after the bell amid optimism about its role in powering AI chips through high-bandwidth memory products. However, homebuilder Lennar’s stock slipped following weaker-than-expected quarterly profits. Meanwhile, Warner Bros Discovery’s board rejected a $108.4 billion hostile takeover bid from Paramount Skydance, citing inadequate financing assurances, and instead reaffirmed its deal with Netflix. The move underscored heightened competition in the streaming and media space as leading players reposition amid shifting market dynamics. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8547 (-0.16%) The Day Ahead: the material sector will remain buoyant with commodities up overnight Overseas, three central banks hold meetings: Sweden’s Riksbank, the Bank of England and the European Central Bank Corporate news: ANZ and Elders are holding annual meetings on Thursday. New Zealand will release third-quarter GDP data at 8.45am AEDT. Netwealth has agreed to pay over $100 million in compensation to more than 1000 Australians who invested their superannuation in the First Guardian Master Fund and has admitted it contravened the Corporations Act.
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