Edward Conard

Top Ten New York Times Bestselling Author

  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “Unintended Consequences should be read by anyone who takes for granted the superiority of progressive taxation and has not thought carefully about the trade-offs involved.” - The New Republic
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
Upside of Inequality Oxford Unintended Consequences

AI Summary. Microsoft's quarterly capital expenditures reached $19bn, nearly 80% higher than a year earlier and above Wall Street forecasts, with the company saying nearly all of it was cloud and artificial intelligence spending. Half went to land, buildings and leases that the company expects to monetize over 15 years or more, and half to technical equipment such as chips and servers.

Camilla Hodgson, George Steer, and Tim Bradshaw Financial Times
Date Posted:

Microsoft’s capex in their fiscal Q4 ending in June grew 80% y/y to $18B. TD Cowen analysts raised their forecast of MSFT 2025 capital spending from $70B to 84B. The firm says the spend “really will be monetised over 15 years and beyond.”

Is cloud and AI capital spending accelerating at major tech firms?

Core argument: Microsoft's capital expenditures reached $19bn in the quarter to June 30, nearly 80% above the year-earlier period and ahead of Wall Street forecasts, with "nearly all" of it cloud and AI-related, said chief financial officer Amy Hood.

Microsoft’s capital expenditures for the quarter to June 30 hit $19bn, nearly 80% higher than the same period a year ago and ahead of Wall Street’s forecasts. “Nearly all” of that was cloud and AI-related spending, said its chief financial officer Amy Hood, and those investments would pay off during the second half of the year when Azure growth would “accelerate.” Analysts at TD Cowen said on Wednesday that they had raised their forecasts for Microsoft’s capital spending from $70bn to $84bn for the 2025 financial year. Hood said that half of Microsoft’s capital spending went towards land, building, and leases, which “really will be monetised over 15 years and beyond”, while the other half was spent on technical equipment, including chips and servers, which would be “based on demand signals.”

Takeaways by Macro Roundup® AI

  1. Microsoft's capital expenditures reached $19bn in the quarter to June 30, nearly 80% above the year-earlier period and ahead of Wall Street forecasts, with "nearly all" of it cloud and AI-related, said chief financial officer Amy Hood.
  2. TD Cowen analysts raised their forecast for Microsoft's capital spending in the 2025 financial year from $70bn to $84bn.
  3. Amy Hood said half of Microsoft's capital spending went to land, buildings, and leases that "really will be monetised over 15 years and beyond," with the other half on technical equipment including chips and servers, based on demand signals.

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  • Business Spending Is Lining Up to Reinforce Growth — Around 70% of sectors are posting positive year-over-year profit growth, with big tech showing the largest acceleration in demand and profits but strength broadening across the economy. Companies are responding with rising capital spending growth and more optimistic investment plans, as firms typically add capacity with a slight lag after real demand picks up.
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