Key Takeaways
- Amazon Web Services (AMZN) announced Fastnet, a new wholly-owned transatlantic subsea fiber optic cable connecting the US and Ireland, set to be operational by 2028, enhancing network resilience and supporting growing AI and cloud demand with over 320 terabits per second capacity.
- Zillow (ZG, Z) reported that a typical home remains unaffordable in major US cities like New York, Los Angeles, Miami, San Francisco, San Diego, and San Jose, even with a 0% interest rate, highlighting persistent housing affordability challenges across these key markets.
- Swiss lawmakers are advancing stricter capital rules for UBS (UBS), requiring the bank to hold an estimated additional $24 billion in CET1 capital by 2027, a move UBS considers disproportionate and not internationally aligned.
- The Trump administration will partially fund SNAP benefits for November using a $4.6 billion contingency fund, covering approximately 50% of eligible households amid an ongoing government shutdown.
- Google (GOOGL, GOOG) and Vitality partnered to launch Vitality AI, an AI-powered health platform leveraging Google Cloud's Vertex AI and Gemini models to provide personalized health recommendations.
AWS Boosts Global Connectivity with Fastnet Cable
Amazon Web Services (AMZN) has announced Fastnet, a new dedicated high-capacity transatlantic subsea fiber optic cable system designed to connect Maryland in the United States with County Cork, Ireland. Expected to be operational in 2028, this project marks Amazon's first wholly-owned subsea cable, moving away from traditional consortium partnerships. The Fastnet system aims to provide vital diversity for customers by creating a new data pathway with unique landing points, ensuring service continuity even if other undersea cables face issues. With a design capacity exceeding 320 terabits per second, enough to stream 12.5 million HD films simultaneously, the cable is intended to enhance network resilience, improve global connectivity, and meet the escalating demand for cloud computing and artificial intelligence (AI) workloads. Taoiseach Micheál Martin noted that this investment solidifies Ireland's role as a gateway to Europe for submarine telecommunications.
Zillow Report Highlights Persistent Housing Unaffordability
A recent analysis by Zillow (ZG, Z) indicates that a typical home remains unaffordable in several major U.S. metropolitan areas, including New York, Los Angeles, Miami, San Francisco, San Diego, and San Jose, even under a hypothetical 0% interest rate scenario. This report underscores the severe and ongoing housing affordability crisis in these high-demand markets, where many residents struggle to become homeowners. Despite recent declines in mortgage interest rates in some areas, the fundamental imbalance between home prices and incomes continues to challenge prospective buyers, often requiring significant income increases to comfortably afford a median-priced home.
Swiss Lawmakers Push Stricter Capital Rules for UBS
Swiss lawmakers are moving forward with stricter capital quality rules for UBS (UBS), a direct response to the 2023 Credit Suisse crisis. These new regulations, expected to take effect from 2027, will require UBS to value assets such as software and deferred tax assets more conservatively, leading to an increase in its capital holdings. Specifically, UBS AG could be required to hold an estimated additional $24 billion in Common Equity Tier 1 (CET1) capital on a pro-forma basis, with the overall impact on the UBS Group AG consolidated level potentially reducing its CET1 capital ratio. UBS has expressed strong disagreement with the proposed increase, arguing that these changes are neither proportionate nor internationally aligned.
Trump Administration to Partially Fund SNAP Benefits Amid Shutdown
The Trump administration has announced it will partially fund the Supplemental Nutrition Assistance Program (SNAP) benefits for November, utilizing a $4.6 billion contingency fund. This measure will cover approximately 50% of the usual allotments for eligible households, affecting over 42 million Americans who rely on the program. The decision follows court rulings requiring the administration to continue funding the nation's largest food aid program amidst an ongoing federal government shutdown. While offering some relief, the partial funding and potential payment delays highlight the significant impact of the shutdown on vulnerable populations.
Google and Vitality Partner on AI-Powered Health Solutions
Google (GOOGL, GOOG) and insurance leader Vitality have announced a global partnership to launch Vitality AI, a new platform aimed at transforming health management for millions worldwide. The platform will integrate Google Cloud's advanced AI and data analytics, including its Vertex AI platform and Gemini models, with Vitality's extensive health datasets and behavior-change expertise. This collaboration seeks to provide hyper-relevant and personalized health recommendations, tailored to individual health, lifestyle, and risk factors, with the goal of improving health outcomes and extending healthy years.
Western Alliance Denies Sale Rumors
Newsquawk reportedly alerted its clients to Western Alliance Bancorporation's (WAL) exploration of strategic options, including a potential sale. However, Western Alliance issued a strong denial of such reports in May 2023, stating that the claims were "categorically false in all respects" and that the bank was not exploring a sale nor had it hired advisors for such purposes. The bank also indicated it was considering legal options in response to the initial media report. The original report in 2023 had led to a sharp decline in the bank's shares amid broader turmoil in the US regional banking sector.
US to Skip High-Level Representation at COP30
The Trump administration has confirmed that the United States will not send any high-level representatives to the upcoming COP30 climate talks in Belém, Brazil, scheduled from November 10-21. This decision aligns with President Trump's stance on climate policy, including the second withdrawal of the U.S. from the Paris Agreement, which is set to take legal effect on January 27, 2026. While federal officials will be absent at a senior level, various coalitions of U.S. state and local leaders, including governors and mayors, are expected to attend to represent subnational climate action efforts. Brazilian President Lula's earlier statement about calling Trump if a meeting between Brazilian-US negotiators is not scheduled by the end of COP30 underscores the diplomatic implications of the U.S. stance.
Regulatory Bodies Announce Enforcement Actions
Regulatory bodies have announced various enforcement and policy updates. The Federal Reserve Board terminated enforcement actions against Riverbend Financial Corporation, Northwest Bancorporation of Illinois, Inc., and First Citizens Bank of Butte. The Consumer Financial Protection Bureau (CFPB) officially rescinded a rule that would have created a registry for nonbank enforcement actions. Internationally, the Monetary Authority of Singapore (MAS) is collaborating with banks to recalibrate anti-scam measures, including delaying large transfers in specific situations. The U.S. Treasury Department sanctioned DPRK bankers and institutions involved in laundering cybercrime proceeds and IT worker funds. Additionally, the Financial Action Task Force (FATF) released new guidance and best practices aimed at intensifying global efforts to recover criminal assets.
French Authorities Investigate TikTok Over Regulatory and Child Safety Concerns
TikTok, owned by Chinese company ByteDance, is facing increased scrutiny from French authorities over regulatory issues and its impact on young users. France's privacy watchdog, CNIL, previously opened a preliminary investigation into TikTok in 2020 over privacy policies and later fined the company €5 million in 2023 for violating cookie consent regulations. More recently, a French lawmaker has called for a criminal investigation into whether TikTok is responsible for "endangering the lives" of its young users, following a parliamentary inquiry that described the platform as a "slow poison" for children. Recommendations from the inquiry include a complete ban on social media for children under 15 and a night-time "digital curfew" for those aged 15 to 18.
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.