The AI boom unabated

Daily update

Low level fighting in the Gulf war is keeping oil prices at a higher level. The United Arab Emirates (which was attacked by Iranian drones yesterday) suggested that this situation cannot be sustained. However, the longer this situation continues, the more it will alter economies in the region—with implications for post-war costs.
South Korea's August export data continues to revel in the world's desire for the shiny new toy of AI—semiconductor exports rose 209% compared to last year. As an AI infrastructure provider, South Korea has a genuine economic gain from AI investments, although the data is also a reminder that other countries’ AI spending leaks out of their economies.
The UK's BRC shop price index increased in August. The heatwave may have been a distortion, with retailers perhaps able to exploit the urgent desire for ice cream. Eurozone August flash consumer price inflation is due (with Italy and the Netherlands adding their regional input). The regional data has not been particularly surprising so far.
Assorted business sentiment polls are due. Sentiment has been excessively pessimistic relative to reality. However, as the news cycle has become less sensational about the Gulf war, the pessimistic narrative has faded. That may feed into sentiment (regardless of economic reality).