Microsoft (MSFT.US) CFO: Starting from fiscal year 2027, we will extend the estimated useful life of our data centers and office buildings from 15 years to 25 years. This change in asset useful life will only affect the future depreciation timeline and is expected to have a negligible impact on operating income for fiscal year 2027.

Deutsche Bank points out that as central banks in the US, Europe, and Japan are tightening policy simultaneously, the market may still be underpricing the eventual terminal rates. With oil prices remaining high, inflation may spill over into core inflation and wages. Moreover, financial conditions have not tightened in tandem, which could weaken the effect of rate hikes. Citing the experience of 2022, Deutsche Bank notes that the market then expected a total of around 200 basis points of Fed rate hikes in the first year, but the final figure exceeded 400 basis points, illustrating that the market often underestimates the terminal rate.