Ever since generative AI exploded into public view, financial markets have been living inside a tug-of-war narrative: is this the foundation of a new economic era, or just the latest glossy wrapper on an old-fashioned tech bubble? On one side are the true believers who argue that AI isn’t just another sector story, it’s a macro story, akin to electrification or the internet. On the other are skeptics who see stretched valuations, easy money and hype, and hear echoes of 1999.

What’s changed in the last year is that this isn’t just a philosophical debate anymore: companies and governments have literally committed trillions of dollars in capex on the assumption that AI will transform productivity across the U.S. economy, and probably far beyond it.

European asset managers are shifting their stance on defense investments as geopolitical pressures mount and client demand grows. With the European Union seeking around €800 billion ($870 billion) to bolster its defense capabilities, major asset managers are reconsidering long-standing exclusions on defense stocks.

The urgency has increased following U.S. President Donald Trump’s calls for Europe to take greater responsibility for its own security, reinforcing the need for stronger military investment. This shift has been further driven by the recent surge in European defense stocks, such as Rheinmetall and Leonardo, which have reached record highs, making them increasingly difficult for asset managers to overlook.

The oil markets are currently experiencing a deficit, and this shortage is expected to deepen in the fourth quarter. The main reason behind this deficit is the production cuts initiated by Saudi Arabia and Russia.