AI dampens inflation, markets underestimate impact on rates
AI is quietly reshaping the cost base of the US economy by replacing labour and making processes more efficient. In services in particular, this is reducing unit labour costs and easing inflationary pressures. The bond market, however, has yet to fully recognise the policy room this creates for the Federal Reserve.
Some software stocks find upside in AI
There was a time when software companies could rely on growth rates and compelling narratives about scalable business models. Revenue was paramount, profit an afterthought. A decade ago, investors routinely paid six to ten times annual recurring revenue for SaaS businesses, and that felt entirely reasonable. Anyone who raised concerns about cash flow was dismissed as an old-fashioned investor who did not understand the future. That era has ended.
Markets are pricing a world that may no longer exist
Markets are pricing a world that may no longer exist. Democratic institutions, designed for slower cycles and contained economies, are struggling to govern the complexity they now face. That failure, argues economist Jeannette von Wolfersdorff, is already shaping the conditions under which capital is allocated and regulated.
Fixed Income Quarterly Strategy
In an environment shaped by an energy shock and a reassessment of monetary policy expectations, interest rate markets experienced a significant correction. Credit overall remained resilient, reinforcing the importance of selectivity.
Sustainability in action: Journalistic ethics as a financial risk factor
Transparency regarding editorial decisions can have a direct impact on our financial assessment of a media company. This was evident during our engagement with Nexstar Media Group, one of the largest owners of local television stations in the US
AI’s next winners probably won’t be tech-companies, says Vanguard’s head of research
If history is any guide, the artificial intelligence boom will not be those who build the technology, but those who deploy it. That is the view of Kevin Khang, head of global economic research at Vanguard. He argues that today’s market narrative risks mistaking the early winners for the ultimate ones.
Chart of the week: J-curve or U-turn
For over ten years, I’ve been writing articles for investors, economists, and anyone with even the slightest interest in the financial markets. Extremely negative stories, stories about the issues of the day, or stories with sensational headlines tend to do particularly well. Although I’m occasionally lumped into the first category, I’m usually not very good at writing those kinds of stories. But today I have a topic that tops the charts every day: Artificial Intelligence.
Morningstar: Barings versus Blackrock in Global Emerging Markets Bond
In the first quarter of 2026, hard-currency emerging-markets sovereign debt held up modestly better for European investors than for US investors. Euro-based returns were broadly flat, compared with a decline of around 0.2% for US dollar-based investors.
Investors return to beaten-down software stocks
Software stocks are being repriced as investors reassess how artificial intelligence will reshape the industry. Some fund managers now argue the selloff has gone too far, even as uncertainty around long-term earnings remains unresolved.
Selling America is misreading of bigger picture, US managers say
A mix of erratic political choices has chipped away at confidence in Washington. Yet, as the economic backdrop remains stubbornly solid, the case for US assets is alive and kicking, America’s largest investors say.