{"text":[[{"start":9,"text":"Wall Street was on Tuesday scrutinising three dozen gubernatorial races in the US for clues on how far voters will allow Big Tech companies to go in building AI infrastructure across the world’s biggest economy."}],[{"start":21.24,"text":"The results of the elections, widely seen as a referendum on Donald Trump’s presidency, are expected to begin filtering in on Tuesday evening as polls close on the east coast. Some big Wall Street banks said they were preparing for the possibility of a “blue wave”, with high-profile polls showing the Democrats likely to turn over the House of Representatives and the Senate as a toss-up."}],[{"start":43.52,"text":"Elections for state governors are being closely monitored given that many of the hottest issues in markets, permitting for data centres in particular, are heavily influenced by decisions at the state and local levels."}],[{"start":54.96,"text":"“Every midterm election is consequential,” said Joseph Zidle, chief investment strategist at wealth group Cresset, “but this one feels particularly so, given a number of things, including AI data centres essentially being on the ballot in so many local races.”"}],[{"start":69.88,"text":"That sentiment was echoed by multiple fund managers who all said the 36 gubernatorial races being held on Tuesday were likely to matter most for markets. Pushback to data centre construction mostly occurs at the state and local level, and candidates have been leaning into the issue, taking advantage of just how unpopular the build-out has become among ordinary Americans."}],[{"start":91.52,"text":"Two big data centre hubs — Ohio and Texas — face close races, with victories by Democrats in either race likely to prompt worries about the fate of data centre construction in those states."}],[{"start":103.88,"text":"“Gubernatorial races — and the race in Texas in particular — are being taken as a proxy for the AI trade . . . If [Texas Republican] Greg Abbott loses, that is a real problem for the AI trade at this point,” said Jim Bianco, president of Bianco Research."}],[{"start":119.04,"text":"The midterms come at a volatile moment for US markets. On Monday, the tech-heavy Nasdaq 100 fell into correction territory — down 10 per cent from its record high in early October — as traders cast doubt on the sustainability of the AI spending boom that has propelled markets this year."}],[{"start":135.64,"text":"The Nasdaq closed 0.7 per cent higher on Tuesday, with the blue-chip S&P 500 rising 0.4 per cent."}],[{"start":144.44,"text":"At the federal level, the most bullish outcome for markets, investors said, would be a split Congress since gridlock in government, in which no new spending or regulation is able to get passed, has generally been positive for risk assets."}],[{"start":158.2,"text":"“Divided government is exactly what the market has historically preferred,” said Denise Chisholm, director of quantitative market strategy at Fidelity Investments. “At least historically speaking . . . once there is divided government, that means less progress can be made on new legislation or initiatives, and therefore the rules of the road are relatively known,” she added."}],[{"start":180.04,"text":"While Democrats have historically favoured tougher regulation and a more expansive role for government, some investors predicted that a sweep of Congress by the Democrats could mean an upswing for markets. That is because Trump has vowed to use his veto power, setting the stage for legislation to get held up much as it would in a divided scenario."}],[{"start":199.6,"text":"Others cautioned that a blue sweep could produce some risks for corporate America, with Zidle saying it might entail “greater use of subpoenas and congressional testimonies . . . [that] could potentially put a chill in the environment for corporate decisions or corporate risk taking”."}],[{"start":219.7,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1793782821_1335.mp3"}