BlackRock Investment Institute Videos

Market take Weekly video_20261109 Roelof Salomons Chief Investment Strategist for the Netherlands and the Nordics BlackRock Investment Institute SCRIPT Header: CAPITAL AT RISK. MARKETING MATERIAL. Opening frame: What’s driving markets? Market take Camera frame Title slide: Midterms and AI in focus at 2027 Forum We held our Forum as the U.S. midterms unfolded and markets increasingly priced in a supply-driven regime we’ve long described. Attention is now turning from the AI buildout to demand, adoption and who benefits, as competition for capital intensifies. These shifts will help shape our 2027 Global Outlook. 1: An evolving AI story Markets are still working through what the Democratic sweep of Congress means for the AI buildout. The buildout will continue, but the focus is now on whether it will be at the same scale and at the same pace. And whether adoption can keep up. And that was a key discussion at our Forum last week. A slowdown could have significant consequences for markets. But it could also ease competition for capital and bring bond yields down. Much uncertainty remains about the speed and the size of the buildout. And that uncertainty was behind our move to neutral on U.S. equities and our upgrade of U.S. Treasuries last month. 2: Funding in focus Competition for capital was another major focus. The AI buildout is competing for funding with government borrowing, with investment in energy and in defense. And Hyperscalers are still spending heavily, even as financing costs rise. And that raises a key question: Can stronger growth and earnings offset those higher costs, and where will the pressure show up next? 3: Eyeing rates We’ve long expected rates to stay structurally higher. At the forum, the focus was on what that means for markets and portfolios. Shifting capital flows, changing correlations between stocks, bonds and currencies could create new sources of volatility and challenge traditional portfolio hedges. That makes staying flexible key to navigating risks and seizing opportunities. Outro: Here’s our Market take The takeaway from our Forum was that AI adoption and competition for capital are critical from here. These topics will be key for our 2027 Global Outlook published next month. Closing frame: Read details: blackrock.com/weekly-commentary