The market is largely ignoring the Venezuela news, choosing the positive news.
Francine Lacqua
Wei Li
The development doesn't change our central case because the typical transmission mechanism of an oil shock is absent. We see near/medium-term more negative catalysts from increasing Venezuelan production.
Would countries try to diversify from US assets?
Francine Lacqua
Wei Li
It's hard to diversify from the US; US assets are 88% of global equity/fixed income benchmarks. Stay risk-on US assets driven by AI momentum, positive fiscal impulse, and a Fed poised to ease.
What about AI? Are we going to see a correction?
Francine Lacqua
Wei Li
We continue to favor AI. To justify huge capex spend, growth needs to break out from 2% trend and AI builders need to capture greater revenue share.