Market Pulse
Friday, December 5, 2025
Welcome to this week’s Market Pulse, your 5-minute update on key market news and events, with takeaways and insights from the Sidekick Investment Team.
Today, we’re looking at Anthropic engaging legal counsel for a potential 2026 IPO, major banks embracing crypto through pilot projects, and Keir Starmer ruling out rejoining the EU customs union.
But first, our number of the week…
That was the annual cost to protect against default on Oracle’s debt on Wednesday, as measured by credit derivatives pricing. That figure has more than tripled since June, indicating growing investor concern about AI-related defaults.
Sidekick Takeaway: Oracle has borrowed billions from bond markets to fund its AI ambitions, which seemed like a sure bet just a few months ago. Now, however, fears are growing that the company may be overstretched, indicating increased investor caution in the AI sector.
Only have a minute to read? Here’s the TL;DR:
It’s important to note that the content of this Market Pulse is based on current public information which we consider to be reliable and accurate. It represents Sidekick’s view only and does not represent investment advice - investors should not take decisions to trade based on this information.
Developing cutting-edge LLMs can be an extraordinarily expensive undertaking.
According to OpenAI CEO Sam Altman, the company’s GPT-4 model cost over $100 million to train.
So far, AI startups have largely relied on private markets to finance these efforts. Outside of Big Tech, few AI-focused firms are publicly listed.
But that could be set to change. According to recent reports, Anthropic (which develops the Claude series of LLMs) has engaged legal counsel for a possible IPO in early 2026.
Publicly listed AI firms could upend how the industry is financed – and offer increased access for everyday investors.
AI IPOs could be largest in history
While Anthropic has declined to confirm its IPO ambitions, the company isn’t the only leading AI firm that could see a listing next year:
With that being said, the potential for these mega-IPOs depends on a steady market in 2026.
Tariff and interest rate uncertainty, not to mention investor fears about an AI bubble, could scare companies off from pursuing a listing.
Sidekick Takeaway: Unlike the Dot-Com Boom of the early 2000s, everyday investors generally lack access to many of the AI sector’s leading firms. Listings from Anthropic and OpenAI could help change that, offering both greater insight and investor participation.
Bitcoin was originally launched back in 2009. But for years, the crypto market had little overlap with traditional finance.
Gradually, however, the two industries are starting to become linked.
Not only have crypto ETFs been listed on traditional exchanges, but the prospect of stablecoin payment systems appears increasingly realistic.
Now, it appears that some of Wall Street’s biggest players are starting to embrace crypto.
According to Coinbase CEO Brian Armstrong, the company is working with several large banks on major crypto pilot projects.
Coinbase points to growing tradfi interest in crypto
As Armstrong put it, ‘the best banks are leaning into this as an opportunity’ – although he declined to name any banks specifically.
Armstrong’s comments are just one of many indications that the finance industry’s attitude toward crypto is beginning to turn:
Despite being around for over a decade, it’s still early days for crypto’s integration with traditional finance. However, the continued momentum is hard to ignore.
Sidekick Takeaway: The finance industry’s first serious flirtation with crypto was during the blockchain hype of the late 2010s, which led to a number of pilot projects – few of which went anywhere seriously. While this latest trend looks more sustained, time will tell whether crypto can truly help reshape finance.
UK PM Keir Starmer has long promised a ‘reset’ with the EU following Labour’s ascension.
To some commentators, there was even speculation of the UK reversing Brexit. Starmer has stated that leaving the EU ‘significantly hurt’ the UK economy.
Ultimately, Labour has declined to pursue a return to the EU. Nonetheless, rumours have circulated that one of Starmer’s economic advisers privately urged a return to the bloc’s customs union.
Such a move could help ease the flow of goods with Europe by simplifying many trade requirements.
This week, however, Starmer ruled out the idea amidst growing signs of a fractious relationship between the UK and the EU.
Starmer rejects customs union as defence talks break down
Starmer’s comments on the customs union come as talks with the EU on defence cooperation broke down last week.
The UK refused to pay billions in fees to join a flagship defence fund. Aside from defence, the two sides continue to engage in discussions surrounding agriculture and energy.
Nonetheless, Starmer’s position underscores that Britain won’t be returning to a member-lite position with the EU anytime soon.
Given recent political trends in the UK, that could be wise. As one diplomat put it, ‘we’re not going to spend years getting a customs union only for Farage to come along and pull out.’
Sidekick Takeaway: Ultimately, Starmer’s reset may not be as refreshing as many europhiles hoped. Still, the UK’s more distant relationship with the EU does have benefits, such as the freedom to negotiate trade deals directly with international partners.
Notices
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𝘗𝘭𝘦𝘢𝘴𝘦 𝘳𝘦𝘮𝘦𝘮𝘣𝘦𝘳, 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨 𝘴𝘩𝘰𝘶𝘭𝘥 𝘣𝘦 𝘷𝘪𝘦𝘸𝘦𝘥 𝘢𝘴 𝘭𝘰𝘯𝘨𝘦𝘳 𝘵𝘦𝘳𝘮. 𝘠𝘰𝘶𝘳 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 𝘪𝘴 𝘢𝘵 𝘳𝘪𝘴𝘬 - 𝘵𝘩𝘦 𝘷𝘢𝘭𝘶𝘦 𝘰𝘧 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘤𝘢𝘯 𝘨𝘰 𝘶𝘱 𝘢𝘯𝘥 𝘥𝘰𝘸𝘯, 𝘢𝘯𝘥 𝘺𝘰𝘶 𝘮𝘢𝘺 𝘨𝘦𝘵 𝘣𝘢𝘤𝘬 𝘭𝘦𝘴𝘴 𝘵𝘩𝘢𝘯 𝘺𝘰𝘶 𝘱𝘶𝘵 𝘪𝘯.
