Key Takeaways
- Widespread digital disruptions hit major platforms including Alphabet (GOOGL), Amazon Web Services (AMZN), and Cloudflare (NET), with YouTube reporting over 240,000 user outages in the U.S.
- The Reserve Bank of New Zealand (RBNZ) maintained its Official Cash Rate at 2.25%, signaling that monetary policy will remain accommodative for an "extended period" to support a nascent recovery.
- Anthropic is reportedly planning to spend at least $80 billion through 2029 on cloud infrastructure from Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT) to power its Claude AI models.
- Lawson announced a strategic foray into the Indian market, seeking growth outside of a saturated Japanese landscape where new store locations are increasingly scarce.
- Santos (STO) confirmed plans to slash its workforce by 10% as part of a broader cost-saving initiative to streamline operations.
Massive Outages Hit Major Tech Infrastructure
A significant wave of technical difficulties swept across the internet late Tuesday and early Wednesday. According to DownDetector, Cloudflare (NET) began experiencing issues at 8:28 PM EST, followed by reports of disruptions at Amazon Web Services (AMZN) and Alphabet (GOOGL).
The impact on consumer services was substantial, with 240,707 users in the United States reporting outages on YouTube. Related services, including YouTube TV and the core Google search engine, also faced performance issues, suggesting a broad infrastructure or routing failure affecting the backbone of the web.
RBNZ Maintains 2.25% Rate Amid Inflation Risks
The Reserve Bank of New Zealand elected to keep the Official Cash Rate (OCR) steady at 2.25%, a move that aligned with market expectations. The central bank noted that while the labor market is stabilizing, unemployment remains high and the economy is only in the early phases of recovery.
Meeting minutes revealed a cautious committee, with members agreeing that policy must remain accommodative for some time. While headline inflation is projected to return to the 1–3% target range this quarter, officials warned that reacting too quickly to pricing intentions could reinforce inflationary perceptions.
Anthropic’s $80 Billion AI Infrastructure Bet
AI startup Anthropic has committed to a massive capital outlay, planning to spend at least $80 billion on cloud services through 2029. The funds will be distributed among the industry's "Big Three": Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT).
This aggressive spending highlights the extraordinary costs associated with training and maintaining large language models like Claude. The news comes as Beijing also ramps up its support for brain-implant technology, seeking a domestic rival to Elon Musk’s Neuralink to secure a foothold in the future of human-computer interaction.
Corporate Shifts: Lawson to India, Santos Cuts Jobs
Japanese convenience giant Lawson is pivoting toward the Indian market to capitalize on its gigantic growth potential. The move follows a trend of Japanese retailers seeking international expansion as domestic demographics and store saturation limit local opportunities.
In the energy sector, Santos (STO) is moving to protect margins by targeting a 10% reduction in its headcount. The cost-saving measure reflects a tightening environment for energy producers focusing on operational efficiency.
Geopolitical and Legal Developments
In international relations, Iran reportedly reached an "understanding" with the United States to guide upcoming nuclear talks, potentially easing regional tensions. Meanwhile, in the U.K., Reform UK has pledged to maintain the nation's fiscal watchdog should it win power, seeking to project economic stability.
On the legal front, a federal appeals court rejected an emergency bid by Kalshi to halt Nevada’s efforts to block the platform from offering prediction-market contracts. This decision marks a setback for the platform as it attempts to expand its footprint in the U.S. gambling and prediction hub.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.