“I would just be a little bit cautious on translating this into moratoriums. … AI was in the exit polls, but it wasn't number one, two, or three of the issues. And these are still economic development projects, and they can be done in ways that are more convincing to local voters. … So the AI build out continues. The terms will change. … the pricing may be less favorable to the developers, but we still think it gets done.”
UBS On-Air: Market Moves · Money & Markets · November 2026
Context
The morning after the midterms, the UBS strategist was asked what the results mean for markets. Stocks dipped briefly on fears that the results would slow the data center build-out, but he argues the backlash is not strong enough to stop it.
Transcript
…have a clear majority. They'll be able to elect Hakeem Jeffries speaker without a major issue there. And Hakeem Jeffries will have some freedom where he may not have to bend to some of the extreme views in his party to get things across the House floor. So it was a very good night for Democrats.
…still a couple of Senate races outstanding. Though, given what we know as of this morning, Kurt, what are CIO's views in terms of the implications of these results to markets, the U.S. macroeconomic environment policy, both near term over the next couple of months and as we look ahead into 2027?
…enough data center backlash emerging from the results last night, AI was in the exit polls, but it wasn't number one, two, or three of the issues. And these are still economic development projects, and they can be done in ways that are more convincing to local voters that maybe wasn't the case for the last couple of years. So the AI build out continues. The terms will change. It might become the pricing may be less favorable to the developers, but we still think it gets done. And then on foreign policy, I think we have to expect a lot of the same from what we saw in the first two years in the last two years. It's very unlikely that in an outcome like this that Trump is going to moderate on his opinions. Oftentimes presidents in the last two years anyway resort to foreign policy. And it's unlikely that Congress is going to be able to mount a large enough offensive if…
Kurt, that was very helpful. And as you pointed out to us, a wide range of implications there of the outcome to factors from AI build out to foreign policy, trade policy, the legislative agenda. And on that latter point, Shane, over the next couple of months prior to the new Congress taking effect…
Yeah, great question. An extremely busy and interesting week in D.C., although it may not be something that you realize how busy the week it is. And they have new member orientation. So everyone who won for the first time last night, or if it's called later this week, come to D.C. and they start…
Shane, it's very interesting to hear about the behind the scenes and the immediate aftermath. You mentioned the orientation process, a lot going on there, but a hefty legislative agenda up ahead for Congress as well. Kurt, just given all that we've covered on today's episode, in terms of portfolio…
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