Sean Aylmer

Kind of a turning point for Alphabet and really for big US tech groups.

Until now, they've largely funded their AI spending thanks to the huge amount of cash they've generated from their core businesses.

They've also been happy to go into debt.

Now they're looking at equity.

Big tech expect to spend $725 billion in AI this year.

Even big tech can't afford that from cash flow.

So they're looking at all sorts of ways to raise money or equity.

Not for economists out there.

We're in for a lesson.

It's a fun lesson, this one.

Current account balance basically shows the flow of money in and out of an economy.

Trade is what we always talk about.

It's really easy to get your head around that one.

But it's also earnings and other services.

So earnings, so foreign investments, dividends, interest, all that sort of stuff.

Transfers includes foreign aid, government grants.

So it's all of those things into the Mixmaster.

All the money going in, all the money going out.

We have been in surplus for a long, long time.

Suddenly...