Mark Dowding, BlueBay Chief Investment Officer, discussed the latest macro views, including: Fed policy at a crossroads amid persistent inflation, driven by AI-related cost pressures, elevated crack spreads in refined oil products. Continued broader price increases suggest the Fed may need to hike more than once before year-end. Questions around the efficacy and sustainability of hyperscalers investment spend are driving credit spread widening and equity rotation. Europe and the UK face distinct but serious headwinds, as Europe's delayed replenishment of natural gas reserves poses an upside inflation risk heading into winter. Cash and defensive positioning preferred. Despite bond yields at multi-decade highs, the combination of record government and corporate issuance, tightening liquidity, and central banks in hiking mode globally creates a challenging backdrop.