AI adopters could gain from cost savings and better earnings, Steve Englander, Standard Chartered’s Global Head of G10 FX Research and North America Macro Strategy, told NDTV Profit.
Englander said companies using AI may work more efficiently, lower expenses and increase earnings, extending possible gains beyond the businesses that develop the technology. He also cited non-technology stocks in the S&P 500 when discussing potential gains beyond the technology sector.
He expects markets to move beyond some current uncertainty around AI, though he stopped short of anticipating a return to earlier “bubble levels.” NDTV Profit published the interview Nov. 2.
Englander said a slowdown in the AI trade — market activity linked to AI — could put pressure on the U.S. dollar and benefit emerging-market currencies, including the Indian rupee. Gold could find support if U.S. bond yields declined while the dollar weakened. He framed those outcomes as possible market reactions, not moves already recorded.
That currency view concerns the pace of trading around AI, separate from his outlook for companies using the technology. His comments linked company-level productivity gains with broader market moves through different channels.
Alongside the AI outlook, Englander cited geopolitical tensions, fiscal concerns and inflation as factors investors should watch. He also said the U.S. midterm elections could influence market expectations through their effect on fiscal policy.
He said a Congress split between the parties could make the outlook clearer. A Republican sweep of both the House and Senate could give Republicans more room to advance fiscal legislation. That scenario could weigh on bonds if lawmakers moved ahead without addressing the widening budget deficit.
The midterm elections are the next political indicator in his outlook, with bond-market implications depending on how lawmakers handle the deficit.
