The Algebris Podcast

The central macro message from the 2026 World Economic Forum in Davos is that the US may be moving away from the post-war order, forcing other nations to reinvest in defence and economic resilience.

Global growth remains strong, supported by large fiscal deficits, but that also keeps the door open to a resurgence of inflation. AI-led capex is significant and may be outpacing the realistic revenue opportunity by 2030, which could challenge current market pricing. Investors are also leaning further into global diversification, especially given a more unpredictable US policy backdrop and expectations for a weaker dollar.

We favour financials on yield-curve dynamics and operational leverage from early AI adoption, and we see gold as increasingly supported by central-bank demand and the search for politically independent reserves.

Listen to Davide Serra's notes from the World Economic Forum 2026.

Over the last few months the global economy has held up thanks to strong U.S. fiscal stimulus and widespread deficits elsewhere, but for the first time public debt worldwide is around 100% of global GDP, reducing governments’ room to respond to future shocks.

Nearly all asset classes look expensive and U.S. rate cuts are already priced in; moreover, Washington appears to be overstimulating the economy, partly with an eye on next year’s midterm elections.

There is also exuberance around AI: to justify current valuations, roughly $2 trillion of additional revenues would be needed by 2030—an implausibly large figure compared with the current revenues of the “Magnificent Seven.”

This and other takeaways in Davide Serra's (Founder and CEO, Algebris Investments) latest analysis.

Markets have adapted to a new, less orthodox economic order, supported by expansionary fiscal policies and more accommodative central banks. Artificial intelligence is seen as the main driver of growth, although for now its impact remains more perceived than real.
On the geopolitical front, the Middle East appears more stable, while challenges between the United States, Russia and China remain unresolved. In Europe, initial enthusiasm for German fiscal policy has waned, with growth still weak.

In the latest Algebris podcast, Gabriele Foà (Global Credit Portfolio Manager) – interviewed by Douglas Branson (Head of Business Development UK) – highlights the fiscal deterioration of advanced countries and predicts an era of “financial repression”, in which government yields will remain close to inflation. In this context, credit offers interesting opportunities, provided a selective approach is taken.

(Episode recorded on 29th October 2025)

A single query on ChatGPT can consume up to 10 times the energy of a traditional search, highlighting the urgent need to address infrastructural and environmental challenges.Datacentres currently account for around 2% of global energy demand, with estimates pointing to further growth. Key issues to be addressed include shortages in the electricity grid, physical space and adequate cooling systems. 

From energy producers to advanced technology providers: what and where are the investment opportunities in this context?

In the new episode of the Algebris podcast, Simone Ragazzi (Global Equity Portfolio Manager), Iacopo Esposito and Antonio Focella (Analysts) from the global equity team explore the topic of datacentres and their growing energy impact, driven by the development of artificial intelligence, interviewed by Douglas Branson (Head of Business Development UK).