Mark Dowding, BlueBay Chief Investment Officer, discussed the latest macro views, including: Hawkish Fed signals potential rate hikes as US inflation stays elevated – markets are pricing two by March 2027. With US inflation stuck at 4.2%, US Treasuries are expected to underperform relative to overseas markets. US-Europe divergence favours front-end Eurozone rates over US fixed income. Europe's weaker growth trajectory means its inflation overshoot could be more temporary. Andy Burnham's move to No. 10 raises fiscal risk and clouds the gilt market outlook. Despite UK inflation running comfortably below US levels, Burnham's anticipated left-leaning agenda could risk fiscal slippage. Middle East truce remains fragile, and Strait of Hormuz supply chain damage will weigh on the global economy for months, with Europe most exposed to ongoing energy and trade flow disruptions.