Asset Management: Monthly Macro Insights - August 2026
Between Technological Revolution and Headwinds
As the end of 2026 approaches, the global economy is being pulled in opposite directions. Massive investment in artificial intelligence continues to support growth and financial markets, while geopolitical tensions, protectionism and persistently higher long-term interest rates are creating a more uncertain environment.
A Technological Revolution Supporting the Economy...
Despite slower growth in some sectors, investment linked to artificial intelligence remains particularly strong, especially in the United States. Spending on data centres, semiconductors, energy infrastructure and digital networks continues to boost corporate profits, support equity markets and encourage private investment. As a result, AI has become one of the main drivers of global growth and investor optimism.
...but Increasing Financing Needs
This momentum is also accompanied by rising demand for capital. Governments continue to run significant budget deficits, while companies are stepping up technology-related investments. This competition for capital is contributing to higher long-term bond yields, which are already being driven by concerns over persistent inflation and increased sovereign debt issuance across advanced economies.
Japan and Long-Term Rates in Focus
The rise in Japanese government bond yields is becoming an additional source of attention for global financial markets. For decades, ultra-low interest rates in Japan encouraged domestic investors to allocate substantial capital abroad. If domestic yields continue to rise, part of these funds could be repatriated, reducing support for international bond markets and adding further upward pressure on global interest rates.
