Broker Name: CGS International
Date of Report: November 24, 2025

Excerpt from CGS International report.

Report Summary

• The AI capital expenditure supercycle remains strong despite recent corrections in popular data centre and private asset names. Financial conditions are supportive, and ongoing fiscal stimulus, especially in the US, is expected to underpin growth into 2026.
• Japan’s government bond yields have surged, reflecting new fiscal support measures and highlighting growing debt and funding vulnerabilities. Japan’s high reliance on domestic financing contrasts with the US’s dependence on external funding. A sharp yen depreciation could trigger rapid unwinding of global carry trades, posing systemic risks.
• While speculative carry trade positions are less extreme than earlier in 2024, low implied yen volatility suggests fragile market liquidity and elevated leverage risks. Systemic risk can escalate quickly if market correlations spike during an episode of stress.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com/