Good morning, you're listening to Markets Desk.
US voters are growing increasingly frustrated with President Trump's handling of inflation and grocery prices, according to a new Financial Times poll, with discontent deepening as the ongoing conflict with Iran adds pressure to an already strained cost-of-living picture. The political heat on the administration is rising.
That inflation anxiety is echoing across global markets. Indian equities sold off sharply in early Monday trade, rattled by the combination of persistent Middle East tensions and stronger-than-expected US jobs data out of Friday. The worry is straightforward — a resilient American labor market gives the Federal Reserve less reason to cut, keeping the dollar firm and emerging market capital flows under pressure.
Pulling back to the broader macro conversation, a sharp note circulating from investor Clifford Sosin raises a question worth sitting with — could AI actually compress corporate profit margins rather than expand them? His argument is that many businesses profit precisely because customers can't be bothered to scrutinize them closely or bring services in-house. AI changes that calculus, giving buyers the tools to monitor, negotiate, and insource far more efficiently. If he's right, the margin assumptions baked into equity valuations deserve a second look.
That's the tape. Markets Desk, signing off the floor.
