Unwinds Politics of AI and Curve Flattening

Markets are witnessing a momentum unwind across US and Asian tech sectors, while a 'sizeable flattening' of the US yield curve persists. Concurrently, political risks for AI are evolving toward wealth redistribution, and oil remains vulnerable to inventory-driven price spikes despite geopolitical de-escalation efforts.

Key Takeaways

• 1.Market momentum is stalling in the US and Asia, with significant rotations away from crowded themes like AI and software into other pockets, while Korea and Japan have seen sharp pullbacks in tech and electrification.
• 2.The political landscape for AI is shifting from safety regulation toward economic rent-capturing, exemplified by proposals for public equity transfers and localized opposition to data center expansions.
• 3.Oil market dynamics are caught between political de-escalation hopes and record-low inventories, with major executives warning of a potential spike to $150-$160/bbl.

Table of Contents

• Mo Unwinds
• Continued in Asia
• Oil
• Politics
• Risk
• side-note

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