P/E multiples tell the story
Software & Services used to rank as the 3rd most expensive industry group, it now sits 9th (and has fallen from 3rd to 13th in Europe). Multiples are down roughly 5.8x globally (around 5x in Europe), a re-rating unmatched by any other industry group. Source: DB, TME
Private Equity's Dry Spell Worse than 2008 Crisis
Source: Barchart
Jamie Dimon is warning about “people doing dumb things,” while Boaz Weinstein believes private credit is still in the very early innings of the wheels starting to come off.
Few areas feel more topical right now than software-backed loans. If anything, it looks like we’re still about two years away from the real surge in extend and pretend activity. Source: RBC, Bloomberg
It seems investors believe in the reflation story.
Source: Goldman Sachs, EPFR
Coca-Cola ($KO) now has a higher P/E multiple than Microsoft $MSFT
Source: Stock Unlock
AI + STABLECOINS ARE COMING FOR GLOBAL PAYMENTS
Markets are reacting for a reason (Source: Bull Theory). Visa (-4.6%), Mastercard (-5.7%), AmEx (-7.2%), and Capital One (-8.8%) fell as AI-driven payments and stablecoins threaten traditional card economics. While cards charge 2–3.5% fees and higher cross-border costs, stablecoins offer near-zero fees and instant settlement. With $33T in 2025 volume (+70% YoY) and projections up to $4T supply by 2030, capital is shifting. Even incumbents are integrating stablecoin rails. Source: Bull Theory
$IBM is down over 13% after Anthropic launches an AI tool that converts old COBOL code to modern languages.
AI code translation directly competes with IBM's legacy modernization consulting.
The EU is freezing its trade deal with the U
The main political groups in the EU Parliament suspended legislative work on ratifying the deal on Monday, seeking clarity on Trump's new tariffs. The deal has already faced a rocky path, with the US expanding its 50% metals tariff to hundreds of additional products and Trump threatening to annex Greenland. The agreement, struck last summer, would impose a 15% tariff on most EU exports to the US while removing tariffs on US industrial goods. Source: Global Markets Investor, Bloomberg
