Everything you need to know, Simplified! A wake-up call for AI and the future of the 60/40 portfolio Summary In a week when most individual stocks delivered a positive return, semiconductor and other AI-related shares fell sharply; semiconductor stocks fell more than 15% over eight consecutive sessions; the rout reflects concerns over the sustainability of artificial intelligence (AI) spending, intensifying Chinese competition and stretched valuations against a backdrop of ri

Everything you need to know, Simplified! Investors watch closely as AI moves from answering questions to taking action. Summary The S&P 500 and the Nasdaq both closed at record highs last Tuesday, driven by further gains in large technology companies, although under the surface some share price moves are not looking as healthy Bond yields remained close to multi-decade highs, as concerns around rising inflation and fiscal indiscipline remained at the forefront of investors’ m

Everything you need to know, Simplified! France's fiscal woes are a warning shot to the UK Summary Bond markets were again the greatest source of volatility, with French OATs (sovereign bonds) at the epicentre of the global sell-off; the rout reflected deepening investor concern over France's missed deficit targets and political gridlock; the OAT-Bund spread widened to 140 basis points (bps), a level last seen in 2012 during the Eurozone debt crisis; UK gilts performed relati

Everything you need to know, Simplified! Are rising bond yields becoming the market's pressure point? Summary Bond yields moved sharply higher last week as investors weigh the risk that tighter monetary policy will become prolonged or disorderly, with this week's economic data being important markers for this debate The Xi-Trump summit indicated the possibility of an extension in the trade truce but left broader US-China tensions largely unresolved, keeping attention on China

Everything you need to know, Simplified! Warsh walks the walk: from tough talk to tough action Summary Central banks turned more hawkish: The US Federal Reserve (Fed) raised interest rates by 25 basis points (bps) and signalled further hikes, while the Bank of England held its rate but saw three of its Monetary Policy Committee members back an immediate increase; the Bank of Japan also raised rates, though a divided vote weakened the yen Geopolitical tensions escalated: Ukrai

Everything you need to know, Simplified! Markets feel the heat as energy prices and interest rate expectations rise Summary Middle East tensions escalated last week as the US and Iran exchanged attacks on vessels and maritime assets, while the Houthis advanced in Yemen and drone strikes damaged Saudi energy infrastructure, threatening key regional shipping and oil export routes Energy markets were volatile: Brent crude briefly surged above US$109, WTI oil topped US$100 for th

Everything you need to know, Simplified! Have bond markets started calling the shots? Summary Rising energy prices and persistent inflation concerns pushed sovereign bond yields higher, as investors demanded greater compensation for mounting fiscal risks and questionable policy credibility In the US, attention is focused on whether Federal Reserve (Fed) Chair Kevin Warsh can reinforce the Fed's inflation-fighting credentials, with a failure to tighten policy risking further u

Everything you need to know, Simplified! AI Optimism returns as investors look beyond the summer slowdown Summary Global equities rose 0.7% in GBP terms, led by a continued recovery in technology shares Technology and communication services outperformed, while energy and healthcare lagged Software stocks rallied strongly as investors increasingly view them as beneficiaries of artificial intelligence (AI) adoption AI-related capital expenditure remains on an extraordinary traj

Everything you need to know, Simplified! Higher yields, stronger earnings and a broadening AI opportunity Summary Bond markets remained under pressure as heavy government borrowing, sticky inflation risks and the scale of AI-related capital spending pushed long-dated yields higher US Treasury Secretary Scott Bessent announced that buybacks of 10- to 30-year Treasuries would rise from a maximum of US$2bn to US$4bn or more per operation from September, but the move was viewed m

Everything you need to know, Simplified! Strong earnings results lift equity markets, but retail sales raise a cautious note Summary The second quarter earnings season has been very strong, especially in the US, pushing equity markets to new highs Upside surprises have come from the technology sector, but also energy and increasingly industrials as economic growth continues to broaden out Inflation data from the US showed a continued moderation, which is helpful for equity ma

Everything you need to know, Simplified! Why are so many UK companies being bought out? Summary UK mid and small caps outperformed as strong earnings, improving economic data and record takeover activity highlighted the valuation opportunity in UK equities Foreign buyers continue to target UK assets, with more than US$60bn of mergers and acquisitions (M&A) announced this year as overseas acquirers take advantage of depressed valuations Global growth remains resilient, led by

Everything you need to know, Simplified! AI optimism meets investor scrutiny Summary Semiconductor stocks continue to drive market weakness despite broader market resilience, with over 60% of US companies delivering positive returns since the end of May US earnings remain exceptionally strong and broadly based, but investors are increasingly focused on the economics and sustainability of the Artificial Intelligence (AI) expansion Growing Chinese competition is raising questio

Everything you need to know, Simplified! Oil, tariffs and rates: familiar themes take a new turn Summary Energy markets saw a sharp resurgence in volatility as Middle East tensions re-escalated, with Brent crude briefly topping US$100 a barrel – its first move above that level since late May – before easing back under US$96 on Friday, still leaving oil up sharply on the week The European Central Bank (ECB) held rates unchanged at its July meeting, but with a notably hawkish t

Everything you need to know, Simplified! A tale of two markets: the balance of optimism and anxiety Summary Markets were pulled in different directions last week, with encouraging economic data and robust earnings competing against rising geopolitical tensions and concerns around artificial intelligence (AI)-related investments Continued US-Iran hostilities kept oil prices elevated, initially pushing bond yields higher as investors worried about renewed inflation pressures Ho

Everything you need to know, Simplified! Markets stay calm as politics, oil and inflation risks keep pressure on bonds Summary A quiet week for markets, but a busy one for sport – equity indices ended broadly unchanged and bond yields pushed higher, against a backdrop of Wimbledon and England's quarter-final success US–Iran ceasefire collapsed, lifting oil prices and inflation concerns, but markets stayed sceptical of a material escalation given little US appetite to be drawn

Everything you need to know, Simplified! Markets rise, but investors keep one eye on politics and policy Summary Many UK investors head into the week in a celebratory mood as England progress to the World Cup quarterfinals, capping a generally constructive week for markets Global equities ended the week higher, despite a mid-week chipmaker selloff, driven by Artificial Intelligence (AI) overcapacity fears European and UK stocks outperformed, insulated from AI fears by their l

Everything you need to know, Simplified! The AI reality check: a warning from Korea's rally Summary The Bloomberg Korea Large & Mid Cap index surged over 422% at its peak from the April 2025 tariff-related low, driven almost entirely by Samsung and SK Hynix, which together accounted for 75% of the index The rally left valuations looking increasingly stretched, with Korea representing the clearest example of where the AI trade has gone too far - the index fell 7% last week Kor

Everything you need to know, Simplified! Change at the top of UK politics and a reset at the US Federal Reserve: How will markets be affected? Summary In the UK, all eyes are on 10 Downing Street after Keir Starmer’s resignation as Prime Minister this morning Elsewhere… central banks US Federal Reserve (Fed) and the Bank of England (BoE) held rates; the Bank of Japan (BoJ) hiked the base rate to 1.0% (highest since 1995), with markets largely steady Geopolitics remain fragile

Everything you need to know, Simplified! Space X: What the biggest IPO in history says about markets today Summary SpaceX’s record US$75bn stock market listing, known as an IPO, highlights strong risk appetite and the premium attached to frontier technology companies, reinforcing public markets as a viable destination for large-scale capital Equities recovered into the weekend after a softer start to June, with retail participation signalling a continued willingness to pay up

Everything you need to know, Simplified! Markets pause as inflation and interest rate concerns return to focus Summary US equities paused after a strong run, as stronger economic data and renewed inflation concerns led investors to question whether interest rates may need to stay higher for longer A stronger-than-expected US payrolls report reinforced the picture of labour market resilience, but markets treated the news negatively as it added to fears that policy could remain