European markets began the session in negative territory as concerns mounted over escalating artificial intelligence spending, particularly after Alphabet disclosed that its capital expenditure might surpass $200 billion this year. The announcement triggered a steep drop in the company’s shares and sparked broader sell-offs across major tech stocks. Investors expressed skepticism about the long-term returns of such massive investments in AI infrastructure, with Tesla adding to market unease by revealing increased spending on AI initiatives despite disappointing profit figures.
Meanwhile, European banking stocks posted strong gains, driven by elevated interest rates and robust trading performance. This contrast underscored a growing split in investor sentiment between high-growth technology firms and traditional financial institutions. Live coverage from London explored whether the current AI investment surge reflects genuine innovation or unsustainable speculation. The discussion also examined rising oil prices and their influence on inflation, alongside potential policy actions from the European Central Bank amid shifting economic conditions.