[UBS: Continuing to Trade the AI Narrative is Reasonable, Maintains Overweight Position in Chinese Market] Sunil Tirumalai, UBS Chief Strategist for Global Emerging Market Equities, stated that global economic growth is expected to recover by early 2026. Factors such as fiscal expansion in developed markets, the Federal Reserve's balance sheet expansion, and stablecoin accumulation are keeping long-term yields under control. Investments in technology/AI are likely to continue, as the current phase is still in the early stages of the technology/AI cycle, with the overall environment being approximately 1.5 to 2 years before peaking. AI-related stocks are expected to maintain earnings per share growth of over 20% in 2026, returning to normal levels by 2027. In emerging markets, AI beneficiaries account for approximately 23% of the index, contributing to a return rate of over 42% by 2025. Sunil Tirumalai believes that Chinese companies are uniquely positioned as consumer-facing AI stocks within emerging markets, with valuations not having significantly rebounded. MSCI China remains UBS's primary overweight market among major markets.

Arthur Hayes transferred 700 ETH worth approximately $2.22 million to B2C2 Group, with the possible purpose of sale. （Lookonchain）

[Sharp Decline in Japanese Long-Term Government Bonds as Market Worries Over Economic Stimulus Plan Increasing Debt Issuance] Japanese long-term government bonds fell sharply on Monday as the market expressed concerns that the first economic stimulus package, expected to be announced by the Japanese government this week, might increase debt issuance. The 20-year bond yield rose to its highest level since 1999, the 30-year yield climbed 5 basis points to 3.26%, and the 40-year yield increased 5.5 basis points to 3.6%. Traders are focusing on the actual fiscal spending scale in Prime Minister Sanae Takaichi's economic plan, worried that higher debt issuance could destabilize the market. GDP data released on Monday supports Takaichi's stance on pushing for a large-scale stimulus plan, while the Bank of Japan is still expected to raise interest rates in the coming months. Daiwa Securities stated that concerns over the stimulus plan have made investors cautious, putting pressure on long-term bonds.

[European Central Bank Official Warns Stablecoin Runs Could Impact Interest Rate Policy] European Central Bank policymaker Olaf Sleijpen has warned that stablecoin runs could force the ECB to reconsider its interest rate policy.

[New York Fed President Williams Convenes Primary Dealers to Discuss the Effectiveness of Repo Tools] New York Fed President Williams urgently convened primary dealers last week to discuss the effectiveness of the standing repo facility. The persistent breach of short-term repo rates beyond policy targets has drawn the Federal Reserve's attention to the strained conditions in the money market.