🗓️ The Daily Ledger - 26 May 2025

zacharymenzies
May 26
3 min read

🛢️ 1. Oil Chiefs Warn of Shale Slowdown Amid Falling Prices

What happened: Top US oil executives have warned that the shale boom is fading as oversupply, falling prices, and rising costs from tariffs force producers to idle rigs. At the same time, OPEC is boosting output, intensifying supply-side pressure.

Why it matters: The slowdown may shift energy investment themes from expansion to consolidation, while reigniting debate around global energy security and pricing volatility.

My Insight: Shale was once the swing supply buffer. If that erodes, price floors could rise over time — with implications for inflation-sensitive portfolios.

What to Watch: Capex guidance from US oil majors and whether capital reallocates toward international energy or renewables.

🧠 2. Oracle to Spend $40bn on Nvidia Chips for OpenAI Data Centre

What happened: Oracle has committed $40 billion to purchase Nvidia chips for a giant OpenAI-powered data centre in Texas. The move cements a massive long-term investment in US-based AI infrastructure.

Why it matters: This reflects the exponential compute demands of generative AI and could create a durable moat around chipmakers and cloud giants.

My Insight: This is not hype spending — it’s strategic infrastructure. AI data centres are the new pipelines, and demand is unlikely to ease soon.

What to Watch: Power grid implications, supply constraints, and whether other hyperscalers follow Oracle’s scale.

💼 3. Canada’s CDPQ to Invest £8bn in UK Infrastructure

What happened: Canada’s second-largest pension fund, CDPQ, plans to invest over £8 billion in UK projects over the next five years. The commitment is a boost for Chancellor Rachel Reeves as she seeks international backing for UK infrastructure.

Why it matters: This signals continued interest in UK real assets despite political noise, and underlines the strategic pull of regulated, long-term projects.

My Insight: Infrastructure remains a favourite among institutional investors seeking stable, inflation-linked returns. Expect further interest in energy, transport, and digital assets.

What to Watch: Where the capital is directed — and whether more sovereign funds follow CDPQ into the UK market.

🤝 4. SoftBank Floats US-Japan Sovereign Wealth Fund

What happened: SoftBank founder Masayoshi Son has proposed a joint sovereign wealth fund between the US and Japan to invest in large-scale tech and infrastructure. Details remain unclear, but the idea has been discussed with both governments.

Why it matters: If realised, this would be an unprecedented bi-national vehicle to shape investment in critical industries — especially semiconductors, mobility, and AI.

My Insight: Cross-border public-private partnerships are gaining traction. Investors should pay attention to government-backed capital pools as strategic allocators.

What to Watch: Whether the fund is formally established and which sectors are prioritised in deployment.

🌱 5. Investors Back New Carbon Removal Method Using Rocks and Rain

What happened: Institutional investors are backing a novel carbon removal technology that accelerates the natural weathering process of rocks to capture carbon dioxide. The approach could offer a scalable path for meeting net-zero targets.

Why it matters: This reflects the growing maturity of carbon removal as an asset class and the rising pressure on portfolios to meet real-world climate outcomes.

My Insight: Expect niche ESG investments to become mainstream if they show scalability and verifiability. This could create new benchmarks for carbon-linked investing.

What to Watch: Deployment costs, MRV (measurement, reporting, verification) standards, and regulatory support.

🔋 6. Microsoft Expands AI Partnerships With OpenAI, Nvidia and xAI

What happened: Microsoft has unveiled a new wave of AI partnerships and product rollouts, deepening its integration with OpenAI and announcing new ties with Nvidia and Elon Musk’s xAI.

Why it matters: This consolidates Microsoft's dominance in enterprise AI, cloud tools, and chip access — potentially locking out smaller competitors.

My Insight: The AI arms race is evolving into platform consolidation. For investors, owning the AI backbone may matter more than betting on front-end applications.

What to Watch: Regulatory scrutiny of AI monopolies and how capital markets respond to the concentration of compute power.