delay

European Central Bank Executive Board Member Fabio Panetta stated that if negotiations are delayed, the digital euro will face postponement.

Morgan Stanley believes that the market is concerned that the results of the U.S. elections may slow down data center construction, leading to a sell-off of AI-related stocks, which seems excessive. The firm stated that AI spending is likely to continue to expand and noted that the previously expected planning capacity of approximately 5 gigawatts for U.S. data centers in 2028 may be postponed to 2029, rather than being canceled.Morgan Stanley stated that this keeps the spending plans of hyperscale cloud service providers largely unchanged. Analysts said that this delay could extend the AI investment cycle by alleviating supply constraints and supporting pricing; they remain optimistic about major AI beneficiaries including Amazon, Microsoft, Meta, and Google, while also finding opportunities among semiconductor, infrastructure, and software companies.

According to a report by Caixin, the CEO of UBS stated that the significant correction in the U.S. stock market's AI sector over the past few weeks is a correction of the previously overly high expectations for the sector.He also acknowledged that the results of the U.S. midterm elections could slow down investments in artificial intelligence infrastructure, delaying the pace at which the AI industry realizes its value, and advised clients not to overly focus on short-term political issues when making asset allocations.

This week, the AI sector faced a sell-off. Retail investors at Serenity compiled statements from executives of several tech giants and infrastructure suppliers, pointing out a significant disconnect between market sentiment and actual fundamentals. The CEO of Lumentum stated that there is a huge misalignment between demand orders and market performance; the CEO of AMD emphasized that the industry is in the very early stages of an adoption cycle, with demand far exceeding supply.The CEO of Arm warned that if the U.S. hesitates on data center construction, other countries are ready to take over at any time, and China has not slowed down. The CEO of Qualcomm pointed out that the current bottleneck is not demand, but rather limited supply, with shortages in wafers, substrates, assembly, and more. These statements indicate an extremely optimistic outlook for accelerator, networking, and semiconductor companies.Regarding political risks and construction obstacles, Serenity noted that politicians who previously threatened to restrict data centers showed a cooperative attitude after winning the election. Executives at Meta revealed that local politicians are actively seeking dialogue to preserve investment and jobs, but building new data centers is becoming more challenging. Data center developers reported strong pricing and demand, while also paying attention to financing costs and execution risks. Serenity concluded that there is a distinction between demand disappearing and demand delays caused by insufficient construction speed, and currently, there is no evidence that AI demand has been significantly damaged.

According to a report by The Information, Microsoft has reduced its capital expenditures for the third quarter by about $5 billion due to delays in the third-party data center it plans to lease. Sources say that the data center project by Iren located in Childress, Texas, has encountered delays, leading Microsoft to postpone some expenditures. Microsoft had previously announced plans to invest $9.7 billion over five years to lease servers equipped with NVIDIA GPUs from Iren.Power supply and grid access have also become bottlenecks for computing power delivery. Last month, Microsoft withdrew from a plan to lease a data center project in the UK from Nscale due to delays in grid access. As self-built data centers struggle to meet demand in a timely manner, Microsoft is simultaneously leasing computing power from multiple cloud service providers.Meanwhile, AI server supplier Supermicro continues to raise its performance expectations. The company's revenue for the first fiscal quarter reached $19.95 billion, exceeding analysts' expectations of $16.39 billion, and it expects revenue for the second fiscal quarter to be between $19.5 billion and $21.5 billion. The revenue forecast for fiscal year 2027 has also been raised from $65 billion to $72 billion to $72 billion to $82 billion. Bernstein pointed out that assessing AI computing power demand cannot simply rely on contract amounts or megawatt scale; it also needs to consider contract cancelability, duration, and actual deployment time; some projects may be delivered in phases, and chip procurement agreements may correspond to the same batch of computing power as data center leasing contracts.

According to a report by Reuters, four insiders revealed that potential investors are skeptical about whether the artificial intelligence company Anthropic can complete its roadshow in the week after next and go public as planned in November. The roadshow was originally scheduled to start in the week of November 9, with pricing arrangements to take place the following week. Currently, some believe that the $1.5 trillion valuation cap is already anticipated; given Anthropic's consecutive quarterly losses and significant investments in AI partnerships, the company may need to offer a larger discount.Sources said that if AI-related assets continue to be under pressure, Anthropic may delay its IPO until market conditions are more stable. Anthropic declined to comment. Additionally, two other sources told Reuters that investors are also waiting for Anthropic's revenue data for October. This data was left blank in the company's updated S-1 filing, and investors hope to see if its growth has recovered from the recent slowdown.

According to Bloomberg, the Binance hacking incident is prompting the cryptocurrency industry to re-examine its long-held decentralized philosophy, as well as the transaction review, settlement delays, and fund intervention mechanisms in the traditional financial system.As the cryptocurrency industry seeks to enter the mainstream financial market in the United States, some institutional investors are beginning to reconsider Wall Street's financial risk control mechanisms. In traditional finance, banks, payment networks, and clearing institutions can review suspicious transactions during the fund transfer process and can suspend fund flows under certain circumstances.Third Eye CEO Tian Zeng stated that he hopes the settlement time can be shortened from the traditional financial T+1 day to T+1 hour, by appropriately extending the settlement time and increasing review steps, thereby reducing hackers' ability to quickly transfer funds.FalconX Co-Head of Markets Joshua Lim pointed out that as more institutions enter the cryptocurrency market, the client structure is changing, and some institutions are no longer willing to fully accept the risks associated with irreversible transactions. As the cryptocurrency industry further integrates with traditional finance, how to balance transaction efficiency, decentralization, and fund security will become a problem that the industry must face.

On the night of the U.S. midterm elections, the Silicon Valley podcast All-In held a live broadcast where several tech investors discussed the potential impact of the Democratic Party's victory on the AI industry. Host Chamath Palihapitiya stated that AI investment has become an important pillar of U.S. economic growth, and the construction of data centers heavily relies on power supply. If the Democrats restrict the construction of new data centers in places like Texas, the entire AI industry could be affected. Host Jason Calacanis suggested that the tech industry, which had previously actively supported Trump, should now proactively engage with the Democrats to collaborate on AI regulatory policies. He also believed that the tech community's repeated warnings about AI potentially leading to human extinction and massive unemployment have exacerbated public fear of AI.All-In regular guest and founder of Altimeter Capital, Brad Gerstner, believes that many Democratic winners simply hope to have more say in AI regulation and do not intend to completely halt AI. He estimates that the power capacity for new data centers in the U.S., originally planned for 2027, may see 10 to 15GW unable to be operational on time. He remains optimistic about the growth of AI model companies and stated that as an existing investor in Anthropic, even if data center construction is hindered, Altimeter still hopes to be one of the largest buyers at the time of Anthropic's IPO.

On November 3, regarding recent market rumors about a possible delay in the listing time of Kunlun Core, Baidu responded: The related market rumors and reports are not true.Baidu stated that its AI chip company Kunlun Core is currently in the confidential declaration stage. According to regulatory requirements, the company cannot disclose any significant non-public information, including the progress of the listing process, and will make announcements to the public at an appropriate time in the future.

According to a report by the Korean News Agency, members of the Democratic Party in the National Assembly's Finance and Economy Committee have decided to recommend to the party leadership to postpone the taxation of virtual assets originally scheduled to be implemented next year.After a party consultation meeting, the ruling party's secretary Woo Gi-hyung stated that the majority opinion among the committee members leans towards postponing it for about 2 years.

Matthew Sigel, the Head of Digital Asset Research at VanEck, stated that Citigroup Wealth released a report titled "Expanding the Investable Universe: A Guide to Crypto ETFs," recommending spot BTC and ETH ETFs to suitable clients as a way to allocate digital assets through regulated brokerage accounts beyond stocks and bonds. Additionally, on August 18, Citigroup announced that its new Custody+ platform will begin holding Bitcoin for institutional clients this year.Sigel noted that this will make Citigroup the 6th bank among the 29 global systemically important banks to have launched or announced institutional Bitcoin custody, following BNY, Standard Chartered, Société Générale, State Street, and Deutsche Bank. BNY, Standard Chartered, and SG-Forge have been licensed and are serving institutions, while Deutsche Bank stated it will launch within weeks, and JPMorgan has indicated it will not provide custody at this time. Sigel mentioned that last week's Binance hacking incident may be one reason for Citigroup not announcing the timeline, as he heard the service was originally set to launch last week.

According to official news, to prevent stolen funds from Binance from flowing through its protocol, Relay has taken measures that have resulted in some transactions and routing being paused or delayed, and users do not need to take action.Relay stated that the team is using multi-layer risk and compliance screening measures to block addresses related to hackers and is collaborating with Binance, law enforcement agencies, and ecosystem security teams. Due to ongoing work, the information that can be disclosed is limited.

Cointelegraph cited the blockchain analysis company Chainalysis, stating that an Ethereum reorganization unexpectedly hindered the transfer of stolen funds from Binance related to North Korean entities. A deposit of 10 ETH was refunded twice, prompting the cross-chain protocol THORChain to trigger an emergency pause.Reports indicate that this reorganization occurred on October 31, with THORChain processing two refunds for the same 10 ETH deposit, leading to the suspension of exchanges on 12 out of the 13 chains it supports. Chainalysis noted that this pause disrupted the cross-chain transfer paths associated with the stolen funds from Binance. Binance previously disclosed that an unauthorized transfer occurred from its hot wallet on October 29, affecting an estimated $6.3 billion, with institutions like Chainalysis linking the incident to the North Korean cybercrime organization TraderTraitor.

According to a report by Jinshi Data, Steven Whiting, co-founder of CIO Group, stated that if the Federal Reserve waits until December to raise interest rates again, it will only "prolong our pain." He believes that inflation is still too high, and raising interest rates "might be better" than continuing to wait.The report cites CME FedWatch data, indicating that the market's pricing probability for a 25 basis point rate hike at this meeting is only 7%. Whiting emphasized that he is not predicting a rate hike by the Federal Reserve at this meeting, but he believes the probability of unexpected action is higher than 7%.

Due to the ChainSecurity report revealing compatibility and security issues with EIP-8037 and certain smart contracts, core developers decided last week to postpone the Hoodi testnet upgrade to Glamsterdam. The issues identified so far include: the remaining Gas during transaction execution may increase, leading to underflow in some Gas counting logic and triggering rollbacks, or causing code paths that should not be executed to be triggered, making the transaction appear successful. Additionally, some contracts may underestimate usage due to the inability to correctly calculate Gas consumption during calls.ChainSecurity previously stated that 13 real cases have been identified and they are responsibly disclosing this information to the affected projects. Toni Wahrstätter mentioned that this week they will further investigate the relevant contracts and assess subsequent solutions, which may require collaboration among application developers, core developers, auditors, and node operators. In the worst-case scenario, adjustments to the protocol specifications may be necessary. He reminded application developers and auditors to check the compatibility of contracts with EIP-8037 and EIP-8038 and to report issues in a timely manner.

According to the Korea Economic Daily, the South Korean presidential office, the Blue House, is inclined to postpone the implementation of the cryptocurrency asset income tax originally scheduled for January 1, 2027. If ultimately approved, this will be the fourth delay of this tax system. However, the Blue House emphasized that discussions are still ongoing and no final decision has been made.Under the current arrangement, South Korea will tax income from the transfer or lending of cryptocurrency assets, with an annual income deduction of 2.5 million Korean won as a basic tax exemption, taxed at a comprehensive rate of 22%. Reasons for the Blue House's consideration of a delay include difficulties in obtaining overseas trading information and a high participation rate among young investors. The South Korean government is concerned that the United States plans to participate in the Cryptocurrency Asset Reporting Framework (CARF) in 2029, and if South Korea imposes taxes in advance, it may be difficult to fully grasp the relevant income of South Korean residents on U.S. exchanges.

According to a report by the Financial Associated Press, Microsoft has withdrawn from a large artificial intelligence data center project developed by the UK data center company Nscale in Essex, with reports indicating that the withdrawal is related to concerns over power supply. Officials from the UK National Grid had informed Nscale that the power supply for the data center is not expected to be in place until the 2030s. Nscale is exploring whether it can generate power on-site and whether it can expedite the grid connection process.The project was previously referred to by the UK government as the largest data center in the UK, originally scheduled to open next year. As of the report, the site still appears to be just a scaffolding yard. Microsoft had originally planned to fund the construction of a supercomputer, but the collaboration has now been terminated. Following the termination of the related computing power transaction, Nscale lost its only publicly announced client for the data center in Essex. Nscale stated that its relationship with Microsoft remains strong and long-lasting, and the two parties will continue to collaborate on other overseas projects, with Microsoft still participating in another project in Norway.The Starmer government highlighted this project when announcing the UK's 2025 artificial intelligence strategy, calling it the largest autonomous artificial intelligence data center in the UK. Nscale has received support from several tech companies, including Nvidia, and plans to go public in the US this year, with a valuation potentially reaching $35 billion.