Core Insights - The investment banking industry is experiencing a positive environment, particularly in fixed income markets, which saw a 19% year-on-year increase [1] - There is a notable recovery in M&A origination and IPO activity, indicating a resurgence in market activity [2][4] - The market is currently characterized by strong macro performance and credit trading, with expectations for continued growth into 2026 and 2027 [1][7] Market Trends - M&A activity is picking up, and the equity market, including IPOs, has reopened in the third quarter, suggesting a recovery from previous slowdowns [4] - The first half of the year was marked by policy uncertainty, which affected financing and M&A transactions, but the market is rebounding strongly in the latter half of the year [3] - Key factors being monitored include interest rates, potential credit cycles, and the impact of the AI boom on market stability [5][6] Economic Outlook - There is confidence in the availability of capital and liquidity, with investor confidence remaining strong despite earlier policy uncertainties [7] - Fiscal expansion in Germany is anticipated to drive investment and reinvestment, with structural reforms expected to support this growth [8][9] - Specific allocations in defense and infrastructure are being made, indicating the beginning of a positive momentum in fiscal spending [9][10]

All right, time for another big interview here on Power Lunch. Pleased to be joined by Alon's chief economic adviser, Muhammad El Arent. Muhammad, good to see you again.Listen, you have been >> Well, thank you. You have been fairly critical of the Fed. You've also been critical but fair.And as the job market has been slowing for over a year, some, like the, you know, the guy in the White House are wondering why the Federal Reserve has not already begun to act on interest rates. Outside of those rather, some ...