Tencent reported stronger-than-expected results for 2025, with revenue surpassing analyst estimates as artificial intelligence plays a larger role across its business lines.

The Chinese technology group is increasingly utilising AI to refine advertising, enhance gaming engagement, and expand its cloud computing unit.

The performance highlights how Tencent is evolving beyond its traditional gaming dominance while still relying on it for core cash flow.

Growth across fintech and social platforms also contributed, showing how the company is combining multiple digital services to support long-term expansion in a more competitive technology environment.

AI boosts ads and engagement

Tencent posted full-year revenue of 751.8 billion Chinese yuan ($109 billion), slightly ahead of the 750.7 billion yuan expected by analysts, according to LSEG data.

The company said improvements in AI capabilities helped sharpen ad targeting and increase user engagement across its platforms.

Ma Huateng, Chairman and CEO of Tencent, said these gains were driven by enhanced AI systems that improved how content is delivered and monetised.

He added that Tencent’s core businesses continue to generate strong cash flows, allowing the company to invest further in AI talent and infrastructure.

The company has been ramping up spending in artificial intelligence as it competes with other Chinese tech firms in a rapidly evolving space, where innovation cycles are becoming shorter and competition more intense.

Gaming remains the backbone

Gaming continued to anchor Tencent’s revenue growth.

Domestic gaming revenue rose 18% year-on-year to 164.2 billion yuan, supported by strong performance from new title Delta Force and established games.

International gaming revenue reached 77.4 billion yuan, reflecting ongoing expansion in overseas markets.

Tencent has been strengthening its global gaming presence to reduce reliance on the domestic market and capture new user bases.

While diversification efforts are gaining pace, gaming remains central to Tencent’s financial structure and continues to fund its broader ambitions across AI and cloud.

Fintech and social networks expand

Tencent’s fintech and business services division reported revenue of 229.4 billion yuan, up 8% year-on-year.

This segment includes payments and enterprise solutions, which are becoming increasingly important to the company’s ecosystem.

Revenue from social networks rose 5% to 127.7 billion yuan, driven by continued engagement on platforms such as WeChat.

These services support advertising and payments, reinforcing Tencent’s integrated digital model.

The steady growth in these segments reflects the company’s strategy of combining social media, financial services, and content to deepen user activity while improving monetisation opportunities across its platforms.

Cloud growth and quarterly momentum

Tencent has been expanding its cloud computing business as part of its diversification strategy.

The company has said it plans to extend its cloud operations into Europe, signalling its intent to compete globally.

Fourth-quarter total revenue rose 13% year-on-year to 194.4 billion yuan, exceeding analyst expectations of 193.5 billion yuan.

The quarterly performance suggests that Tencent is entering the next phase of growth, with AI playing a central role across its platforms.

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US stock futures edged higher on Wednesday as investors turned a bit optimistic with reducing oil prices ahead of the Federal Reserve rate decision today.

Futures linked to the Dow Jones Industrial Average were up about 240 points, or 0.5%. The S&P 500 and Nasdaq 100 futures also gained roughly 0.5% and 0.7%.

This comes after a relatively steady Tuesday session, where the Dow, S&P 500, and Nasdaq finished higher.

5 things to know before Wall Street opens

1. The looming Federal Reserve rate decision is all set to be the highlight of the day.

Most expect the central bank to keep rates steady in the 3.5% to 3.75% range, as it takes a wait-and-see approach on inflation and economic growth.

The bigger focus is on what Fed Chair Jerome Powell says next.

With oil prices still volatile, traders will be listening closely for any hints on whether rising energy costs could complicate the Fed’s plans and influence future policy moves.

2. Things are finally going back to normal for the Bureau of Labor Statistics, which is set to release February’s Producer Price Index on Wednesday.

The print is running into delays due to multiple government shutdowns, and Wednesday’s numbers are coming less than three weeks after the January report.

Investors will be paying close attention to whether producer prices keep cooling or start picking up again, especially in areas like energy, goods, and supply chains.

3. Wednesday is set to be a big day on earnings fronts as memory giant Micron is all set to post its latest quarterly earnings after the closing bell.

The chipmaker has been one of the standout performers this year, with its stock surging nearly 62%.

That rally has largely been fueled by booming demand for high-bandwidth memory, a key component powering AI systems and data centers.

Investors will be watching closely to see if Micron can maintain that momentum, especially as expectations are already high.

4. Mortgage rates climbed sharply last week, hitting their highest level since late last year and quickly cooling the refinance momentum that had been building earlier in 2026.

As a result, overall mortgage application activity dropped 10.9% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average rate for a 30-year fixed mortgage with conforming loan balances rose to 6.30% from 6.19%.

5. The investors across the globe are waiting for the Federal Reserve decision on Wednesday, and the markets in Europe traded on a muted note while Asian stocks closed mixed.

The FTSE 100 was largely flat, while Germany’s DAX and France’s CAC 40 were seen gaining around 0.6%.

In Asia, tech and auto stocks got a boost after Nvidia’s strong outlook, helping South Korea and Hong Kong Japan closing higher while mainland China slipped.

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US stock futures are facing some pressure on Tuesday as the S&P 500 futures slipped 0.3% in early trading.

The futures tied to other Wall Street indices were also trading in red with Nasdaq 100 futures declining over 0.4% while Dow Jones futures shedding over 120 points.

The move comes as stock markets across the globe remain volatile amid the US-Iran war, which has pushed oil prices to multi-year highs.

On Tuesday, the oil prices jumped around 4% with Brent crude remaining above the critical $100 a barrel mark.

5 things to know before Wall Street opens

1. Oil prices continue to dominate the headlines with Brent crude again surging above the $100.

The analysts have pointed out the continued escalation in conflict and said that the oil prices are expected to remain high for the next few weeks.

“With us now in the third week of the conflict and no signs of energy flows resuming. We have therefore had a hard rethink of our scenarios, along with our base case,” Warren Patterson, head of commodities strategy at ING Group, said in a report.

2. On the earnings front, Lululemon, DocuSign and Oklo are among the key companies due to report results on Tuesday.

Lululemon is set to release its Q4 results after the close, with investors watching margins, North America demand and its 2026 outlook.

For DocuSign, Wall Street is focused on billings, subscription growth and forward guidance.

Oklo said it would report full-year 2025 financial results and investors will keep a close eye on cash burn, project development and progress in advanced nuclear commercialization.

3. The Reserve Bank of Australia (RBA) raised its benchmark rate by 25 basis points to 4.1% at the end of its March 16-17 meeting, in what many had called a “knife-edge” decision.

The hike effectively reverses two of the rate cuts made during its 2025 easing cycle, showing that inflation is still proving stubborn.

A big part of that pressure is coming from higher global energy prices, especially linked to tensions in the Middle East.

That said, the move didn’t completely catch markets off guard.

Most economists were already leaning toward a hike, and many still expect rates to edge higher, possibly reaching around 4.35% by the end of 2026.

4. Nvidia remains in focus with its GTC conference, where CEO Jensen Huang is all set to go live today.

There is already a lot of interest building, especially after Morgan Stanley doubled down on its bullish view of the stock earlier this week.

That said, Nvidia hasn’t been moving straight up lately. The stock is still about 13.5% below its October high and is slightly down so far in 2026.

5. The global investors traded cautiously on Tuesday.

In Asia, stocks were mixed as investors tried to make sense of the latest moves in oil prices and the ongoing tensions between the US and Iran.

The swings in energy markets are starting to weigh on sentiment, especially with concerns that higher crude prices could hurt growth.

Over in Europe, it was a similar story.

Markets struggled to find a clear direction as traders kept a close eye on oil’s rebound and what it might mean for inflation, economic growth, and company profits.

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Amazon is stepping up its push into ultrafast delivery, rolling out one-hour and three-hour shipping options across parts of the US as competition in rapid fulfilment intensifies.

The company announced on Tuesday that three-hour delivery is now available in approximately 2,000 cities and towns, while one-hour delivery has been launched in hundreds of those locations.

The expansion reflects Amazon’s effort to further shorten delivery windows, as consumers increasingly expect near-instant access to everyday goods.

Faster rollout

The new service builds on pilot programmes that began late last year.

Amazon said it plans to extend the offering to more regions in the coming months as it scales operations.

More than 90,000 products are eligible for delivery within three hours or less.

These include pantry staples, cleaning supplies, over-the-counter medicines, clothing, and toys.

To support the rollout, Amazon has introduced a dedicated storefront in areas where ultrafast delivery is available.

Shoppers can filter search results to identify products eligible for one-hour or three-hour delivery.

The company has also expanded its getitfast page, which highlights items that can arrive quickly.

Shift to quicker delivery

Amazon’s latest move is part of a longer shift in its delivery model.

The company transformed online shopping in 2005 with the launch of its Prime membership programme, which introduced free two-day shipping.

By 2019, Amazon had reduced that window to one day for many customers, followed by continued investment in same-day delivery.

Many same-day orders now arrive within hours, setting the stage for even shorter delivery times.

The introduction of one-hour and three-hour delivery marks the next step.

The strategy reflects changing consumer habits, with faster fulfilment becoming a key factor in purchasing decisions.

Ongoing experiments

Amazon’s efforts to cut delivery times have involved multiple trials and changes over the years.

The company has relied on its network of fulfilment centres and Flex gig workers to support rapid order fulfilment.

Some initiatives have been discontinued. Amazon shut down its standalone Prime Now service in 2021 and ended a programme in 2024 that focused on deliveries from shopping malls and physical retailers.

At the same time, new tests are underway. Amazon is piloting a service called Amazon Now, which offers 30-minute delivery of groceries and household essentials.

The programme is currently being tested in Seattle and Philadelphia, along with international markets including the United Arab Emirates, India, Brazil, and Mexico.

The company has also been developing drone-based delivery systems for more than a decade, aiming to complete orders in under an hour.

Initially limited to small test areas, the service has since expanded to several cities.

Competition heats up

Amazon’s push comes as rivals increase pressure on delivery speed.

Walmart has highlighted its ability to reach 95% of US households with delivery in under three hours.

Meanwhile, quick-commerce platforms such as Instacart, DoorDash, and Uber Eats continue to expand their offerings, delivering products from a growing number of retailers within a few hours.

Amazon has set pricing for its ultrafast delivery services, with Prime members paying $9.99 for one-hour delivery and $4.99 for three-hour delivery.

Non-Prime customers will pay $19.99 and $14.99, respectively.

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Nvidia (NASDAQ: NVDA) moved higher in the pre-market trading on Tuesday after CEO Jensen Huang used the company’s GTC keynote to deliver a bigger-than-expected view of the AI infrastructure market.

Jensen’s remarks were echoed by the prominent analysts, with Wedbush’s Daniel Ives emphasizing that Nvidia remains at the center of what he sees as a still-accelerating spending cycle.​

The vibe at GTC was pretty upbeat, and a big reason for that was Nvidia laying out a much bigger picture of where it’s headed.

The company talked up strong and growing demand for inference workloads, and also gave a more ambitious outlook for its next-gen systems like Blackwell and Vera Rubin.

Nvidia says purchase orders tied to those platforms could reach around $1 trillion by 2027, which is a big jump from its earlier estimate of about $500 billion through 2026.

Nvidia stock: GTC lifts sentiment

The investors responded strongly to the company’s stronger demand commentary, with Nvidia stock closing 1.65% on Monday.

At the center of that response was Huang’s assertion that demand for accelerated computing remains robust across a widening customer base.

Instead of just focusing on training AI models, which has been the big story so far, the company is now putting more emphasis on inference, or what happens after those models are built and actually put to use.

The key idea is simple: running AI at scale could become an even bigger and more consistent revenue stream over time.

And if that plays out, it means Nvidia’s opportunity isn’t just tied to the initial AI boom; it could be much broader and longer-lasting.

Why analysts more bullish now

The analysts were already hoping for more bullish signals from the GTC, with Wedbush saying before the event that Nvidia could deliver a “very bullish” update on enterprise AI demand.

They were also hoping for more clarity around supply conditions and the Vera Rubin launch timeline.

After the keynote on Monday, TipRanks reported that Ives described Nvidia as being “at the top of the AI demand curve for 2026 & beyond.”

He added that the presentation gave the broader tech trade “a much-needed confidence boost.”

For Ives, it wasn’t just about the flashy product announcements. What stood out more was the bigger picture.

Huang pointed out that demand is no longer just coming from the big cloud players.

Now the company is seeing interest from startups, traditional enterprises, and even government-backed or sovereign projects.

In other words, AI investment is no longer concentrated in a few hands; it’s starting to reach a much broader set of buyers, which could keep the momentum going.

The revised forecast also arrives at a moment when investors have been asking whether the surge in AI-related capital spending can hold up into 2026.

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Walmart-backed digital payments company PhonePe has deferred its planned public offering as geopolitical tensions and falling equity markets weigh on investor sentiment.

The Bengaluru-based firm confirmed on Monday that it has temporarily halted preparations for its stock market debut and will restart the process once global capital markets stabilise.

The move follows rising volatility in financial markets linked to escalating conflict in the Middle East.

PhonePe had been preparing for an initial share sale that could have raised up to $1.5 billion.

PhonePe pauses IPO amid market volatility

PhonePe said it chose to delay the offering as global financial markets have become increasingly unstable.

The company said it remains committed to a public listing in India and will move ahead once market conditions improve.

The fintech firm had secured approval from the Securities and Exchange Board of India earlier this year for the public issue.

Earlier reports said the proposed offering could raise around $1.3 billion through an offer for sale and value the company at roughly $10 billion.

India’s Nifty 50 Index has fallen more than 7% so far this month, putting it on track for its worst monthly performance since March 2020.

The decline has been linked to rising geopolitical tensions involving Iran, Israel and the United States.

Walmart stake and IPO structure

PhonePe is backed by US retail giant Walmart, which owns about 71.77% of the company.

Under the proposed listing plan, Walmart was expected to sell up to 45.9 million shares, representing roughly 9% of PhonePe’s share capital.

The IPO had drawn attention because it would have been among the largest fintech listings in India in recent years.

However, recent market turbulence has prompted companies to reassess fundraising timelines.

Dominance in India’s UPI payments network

PhonePe remains the largest participant in India’s Unified Payments Interface ecosystem.

The platform handles nearly half of all transactions on the network.

The company holds around 45% share of UPI transactions, ahead of rival Google Pay, which has roughly 35%.

UPI has become the backbone of India’s digital payments landscape and now accounts for more than 85 percent of the country’s digital transactions.

PhonePe alone processes close to 10 billion transactions every month with a combined value exceeding about $145 billion.

Revenue growth and expanding financial services

The company has been expanding its financial services offerings beyond payments.

Its products include stockbroking through Share.Market, along with lending, insurance distribution and wealth management tools.

PhonePe reported revenue from operations of about $857 million in FY25, compared with about 610 million dollars in FY24.

The firm also recorded gains of about $62 million from financial assets, taking total income to about $919 million in FY25 from about $689 million a year earlier.

Payment processing charges remained a major cost item at about $203 million during the year. Advertising and sales promotion expenses fell 21.6% to about $65 million.

PhonePe reported a net loss of about $208 million in FY25, narrowing from about $240 million in FY24.

Excluding ESOP costs, the company would have reported a profit of about $76 million.

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Micron stock (NASDAQ:MU) was on track for a strong open on Monday as investors leaned into a familiar but increasingly powerful theme.

The MU stock surged over 4% in the pre-market trading on 16th March, a strong move which comes days ahead of the company’s fiscal second-quarter report on March 18.

The development came as the company announced plans to build a second manufacturing plant in Taiwan at the Tongluo site it recently acquired from Powerchip Semiconductor Manufacturing.

Micron stock: Sold-out HBM supply sharpens the bull case

At the heart of Monday’s move is Micron’s unusually strong visibility into its high-bandwidth memory (HBM) business.

HBM is a premium segment tied directly to AI servers and accelerators.

Recently, Micron CEO Sanjay Mehrotra said the company has “completed agreements on price and volume for our entire calendar 2026 HBM supply, including Micron’s industry-leading HBM4.”

That matters because HBM is one of the highest-value products in the memory stack.

Micron has also said the overall HBM market could grow from about $35 billion in 2025 to roughly $100 billion by 2028.

The numbers reinforce the view that the current AI memory cycle is not just a short-lived inventory bounce but a multi-year structural expansion.

This context is the backbone of the bulls’ optimism as Micron is no longer being valued only on conventional DRAM and NAND swings, but increasingly on its position inside the AI supply chain.

Analysts are getting louder before earnings

Wall Street has been reinforcing that narrative in recent days with another round of target hikes.

Wells Fargo raised its price target on Micron stock to $470 from $410 while maintaining a positive stance, and Citi analysts reiterated a Buy rating while lifting his target to $430 from $385.

The Citi analyst further emphasized that a “powerful combination of surging AI demand and supply bottlenecks linked to new chip fabrication capacity” could extend the current cycle.

Morgan Stanley’s analyst pointed to “tightening supply conditions in the industry” and said Micron could earn as much as $52 per share in 2026.

The next near-term catalyst is the company’s earnings report on March 18, which will either validate or complicate the fast-building optimism around the stock.

Analysts expect Micron to post about $19.10 billion in fiscal second-quarter revenue and normalized earnings per share of $8.59.

Wells Fargo’s bullish framework also assumes the company can sustain gross margins near 68% as higher-value HBM shipments scale and broader memory pricing improves.

In other words, Monday’s rally is not being driven by a vague AI halo alone.

It is being driven by a very specific combination of contractually sold-out HBM supply, fresh analyst target increases, bullish earnings expectations, and growing confidence that Micron has entered a more profitable phase of the AI cycle.

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Companies are restructuring operations around automation tools and AI agents capable of performing routine tasks.

A report from RationalFX shows that 45,363 technology jobs have been cut worldwide since January 2026.

Around one fifth of those layoffs are linked directly to artificial intelligence adoption and organisational restructuring tied to automation.

Tech layoffs tied to AI automation

Some of the largest job cuts have occurred at companies openly linking layoffs to artificial intelligence systems.

Block announced the biggest reduction, eliminating 4,000 jobs. Chief executive Jack Dorsey said the move was not financially driven.

The company is replacing several functions previously carried out by employees with automated AI tools.

The layoffs will reduce Block’s workforce from about 10,000 employees to roughly 6,000.

Other technology companies have also trimmed staff as automation becomes more widely deployed. WiseTech Global cut 2,000 roles.

Meanwhile, eBay eliminated 800 jobs, and Pinterest reduced its workforce by 15%.

These reductions reflect how companies are reorganising work as AI agents handle more operational and analytical tasks.

Entry-level jobs face growing pressure

Industry executives warn that younger workers could face the biggest disruption as AI systems absorb routine entry-level responsibilities.

According to an expert, automation is rapidly reshaping hiring patterns across technology companies.

Unemployment among new college graduates could climb into the mid-30% range within the next few years as AI agents replace work traditionally assigned to junior employees.

Recent labour market data suggests early warning signs are already visible.

The Federal Reserve Bank of New York reported unemployment among recent graduates reached about 5.7% at the end of 2025.

The underemployment rate stood at 42.5%, the highest level since 2020.

AI skills becoming a critical advantage

While automation is eliminating certain roles, industry leaders say the technology is also changing how employees compete in the job market.

An expert states that every profession will feel the effects of artificial intelligence almost immediately.

Workers will not lose jobs directly to AI systems but to people who use AI tools more effectively.

Investor Naval Ravikant said on X that the real divide in the workforce will emerge between people who can work with AI systems and those who cannot.

According to an analysis by PwC, workers with artificial intelligence skills can earn as much as 56% more than peers who lack those capabilities.

Governments and companies push reskilling

Technology leaders are also calling for broader efforts to prepare workers for changes triggered by artificial intelligence.

Another expert states that workforce preparation cannot fall solely on individuals.

They argued that governments, educational institutions, and private companies must collaborate to develop large scale reskilling programmes.

Despite the disruption, projections suggest artificial intelligence will also generate new opportunities.

The World Economic Forum estimates AI could create around 170 million new roles globally by 2030.

However, those roles are expected to favour workers who adapt quickly to the technology.

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Artificial intelligence is increasingly shaping how modern wars are fought.

In recent US military operations linked to the conflict involving Iran, Washington said it struck more than 2,000 targets in just four days.

That pace would have been difficult to sustain in earlier conflicts, when military intelligence had to be reviewed manually across multiple command levels.

Today, battlefield software can process vast volumes of intelligence in minutes.

Data from drones, satellites, and other sensors is analysed by algorithms that highlight potential targets and organise information for commanders.

Such tools are helping the US military move through the battlefield “kill chain” far faster than in previous wars.

What the military “kill chain” means

The “kill chain” describes the sequence of steps that move from identifying a target to launching a strike.

In earlier military operations, the process could take hours or even days.

Intelligence had to be gathered, verified, analysed, and passed through several levels of command before an attack was authorised.

Artificial intelligence systems are designed to compress that timeline.

Software can rapidly scan intelligence feeds, flag potential targets, and prioritise them for review by commanders.

This faster decision cycle is especially important in conflicts where targets such as missile launchers or mobile equipment can quickly disappear.

The software behind AI battlefield targeting

A key part of this shift is the Maven Smart System, developed with the data analytics company Palantir Technologies.

The platform builds on Project Maven, a Pentagon initiative launched in 2017 to apply machine learning to military intelligence analysis.

The system integrates data from drones, satellites, and other surveillance sources into a single operational dashboard.

Analysts and commanders can view intelligence reports, potential targets, and operational options in one place.

Reporting on the Iran conflict has described how AI-driven targeting platforms help process large volumes of battlefield data and generate lists of possible targets that require human assessment.

Expanding use of AI across the military

The US Department of Defense has steadily expanded the use of AI systems across its forces.

By 2025, the Maven platform had more than 20,000 users across multiple military units. The technology is also being adopted by NATO allies.

Artificial intelligence now plays several roles in military operations.

Computer vision systems can analyse drone footage to identify vehicles or equipment. Algorithms scan satellite imagery for patterns that may signal military activity.

These tools have already appeared in conflicts such as Ukraine and Gaza, where drone surveillance and digital intelligence analysis are central to modern warfare.

Why AI warfare raises concerns

Despite the speed advantages, the growing role of AI in warfare has raised concerns about oversight and accountability.

One issue is whether faster automated systems allow enough time for careful human judgment.

When software generates large numbers of potential targets quickly, commanders may face pressure to act rapidly.

Recent events in Iran have intensified these concerns.

Investigations into a strike that hit a girls’ school in the city of Minab raised questions about how targeting decisions were made and whether outdated intelligence contributed to the incident.

A Reuters investigation reported that the school had a long public online presence, prompting questions about how the site was classified as a military target.

Experts say the broader challenge is accountability.

AI systems can analyse vast datasets and produce recommendations quickly, but understanding exactly how those recommendations are generated can be difficult.

As warfare becomes more data-driven, balancing technological speed with human responsibility is likely to remain a central debate.

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As the conflict in the Middle East continues to roil global markets, investors are searching for signs of a turnaround.

However, today on CNBC, Altaf Kassam – EMEA Head of Investment Strategy and Research at State Street Global Advisors – provided a sobering reality check.

While historical precedents suggest that markets often rally before a conflict officially concludes, Kassam warned that the current geopolitical and economic landscape – defined by a direct military confrontation with Iran – may not follow the traditional “snap-back” script.

Instead, a persistent “risk premium” is expected to hang over US stocks long after the guns fall silent.

The ‘fear tax’ on US stocks to stick around

Kassam said financial markets are inherently forward-looking – often pricing in the conclusion of a war well before the final ceasefire.

“In previous conflicts, what we’ve seen is that markets discount the end of the war well before any military conflict has ended,” he noted, adding this phenomenon could repeat if investors see a clear diplomatic path forward.

Kassam specifically highlighted the role of the White House, saying, “it seems clear that President Trump is preparing some off-ramp, and when he says the war is over, the markets might start to have some relief rally.”

However, he cautioned that while a celebratory headline rally is possible, it should not be confused with a return to the low-volatility environment seen in previous years.

Kassam doesn’t see a V-shaped recovery ahead

One of the most striking aspects of Kassam’s analysis is the belief that the “risk premium” currently embedded in US stock prices will not simply evaporate once hostilities cease.

Unlike the “V-shaped” recoveries typical of the last decade, State Street anticipates a much stickier environment for risk in 2026.

“What we believe is that the risk premium that has started to be baked in will stay there,” Kassam explained, adding that “markets won’t snap back as quickly as they fell, and we won’t see a clean mean reversion.”

What this means is: the structural damage to global energy supply chains and the heightened threat of asymmetric retaliation have fundamentally shifted the floor for valuations, leaving investors to grapple with higher costs of capital and lower price-to-earnings multiples for the foreseeable future

The looming shadow of stagflation

The most notable threat to the long-term health of the stock market, according to Kassam, is the potential for a “regime change” in the global economy toward stagflation.

As oil prices hover near $100 per barrel and the Strait of Hormuz remains a flashpoint, the twin pressures of stagnant growth and rising prices create a toxic cocktail for “risky assets.”

Kassam warned that “the worst-case scenario… is stagflation, low growth and increasing inflation.” If the global economy enters this regime, the era of easy gains through passive index investing may be over.

“It’ll be a much tougher market to trade,” he concluded, signalling that active management and a focus on defensive sectors like energy-intensive alternatives or aerospace may be the only way to navigate this complex new reality.

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