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The core issues facing the AI ​​industry have shifted from market space to revenue realization, cash flow generation, and profit distribution. AI labs need to accelerate their expansion into the application layer, converting model capabilities into actual revenue and achieving self-financing after covering inference, R&D, personnel, and infrastructure costs. Large cloud service providers like Microsoft, Google, and Amazon, on the other hand, need to convert their AI infrastructure investments into new revenue while maintaining existing business cash flow. UBS warns that restrictions on electricity and semiconductor capacity, approvals, and financing could delay this process and create a negative feedback loop: slower revenue growth leads to financing difficulties, and tighter financing further postpones infrastructure construction and revenue realization. Regarding profit distribution, infrastructure providers currently reap significant revenue from construction, while private capital bears a substantial proportion of the financing for AI needs. Ultimately, whether AI labs can capture sufficient profits from models and applications, and whether cloud service providers can monetize their infrastructure, will determine the ownership of the AI ​​industry's profit pool.

Germany's wholesale price index rose 0.4% month-on-month in October, down from 1.9% in the previous month.

Germany's wholesale price index rose 8.8% year-on-year in October, down from 8.7% in the previous month.

Goldman Sachs downgraded its rating on the European energy sector from neutral to underweight. It also downgraded its rating on the European banking sector to neutral and the European insurance sector from neutral to underweight.

Goldman Sachs has raised its 12-month target for the Stoxx Europe 600 index from 695 to 700.

According to LSEG IBES data, European companies' third-quarter profits are expected to grow by 25.0% year-on-year, unchanged from the forecast a week ago. Revenue for European companies is expected to grow by 12.0% in the third quarter, compared to an 11.9% increase a week ago.