1. Japanese stocks surged following Prime Minister Takaichi’s landslide victory in Sunday’s general election.

The super majority that the LDP has won is a clear mandate for her agenda of somewhat easier fiscal policy, stronger national security and domestic technology investment - all of which are positive for earnings growth.
Here are the earnings per share expectations for the Japanese stockmarket.

2. Total cloud infrastructure market spending grew by 30% Y/Y, the ninth consecutive quarter of accelerating growth.

Synergy Research Group projects growth above 20% for the next 5 years, with enterprise cloud services, social media, and search expanding.
Amazon Web Services had a commanding 28% market share, compared to 21% for Microsoft Azure and 14% for Google Cloud.

Jassy (Amazon’s CEO) is refuting any market-share anxiety and sees the current AI boom as a structural shift that justifies the massive CapEx ramp.
“As fast as we install this AI capacity, we are monetizing it. So it’s just a very unusual opportunity.”

3. Cumulatively, Morgan Stanley now estimates the top 11 cloud players to spend $795B on capex in 2026.

4. Software could be forming a bottom.

The average P/E multiple for European software is 19x, reflecting levels last seen in 2015.
However, the factors necessary to break the negative momentum seen in software stocks and shore up investor confidence of the positioning of these names is unlikely to come from valuation alone.
Investors likely need to see clearer signs of participation such that adoption of GenAI capabilities results in an improved overall revenue growth profile for the company.

Precious Metals and Crypto are examples of how quickly crowded trades can reverse with swings in investor sentiment.

5. “AI will not eat cybersecurity.”

The rout in European software may have gone too far at least for cybersecurity names, with Berenberg saying fears around AI disruption underestimate the sector's underlying strength.
"We believe concerns that AI disrupts software are largely unfounded for cybersecurity companies," Berenberg says.
Rather than disintermediating cybersecurity vendors, Berenberg argues that AI is likely to expand the market by increasing "attack surfaces", empowering cybercriminals and forcing corporates to invest more heavily in defence.
With surveys pointing to higher cybersecurity budgets in 2026 and consensus forecasts being upgraded, the bank says the recent de-rating has improved the sector's investment profile.

Platforms, who can also promote their cost-effectiveness, while also being viewed as best-of-breed have the best chance to compete against hyperscalers growing cyber franchises, a benefit to PANW, CRWD, ZS.

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