Merryn Talks Money Markets Weekly: AI Sparks Market Rotation, UK Political Risk, and the Pensions Property Debate
Feb 13, 2026
Sharp market rotation as AI shakes up legal, wealth and digital platforms. Debate over whether AI will displace incumbents or just boost productivity. Shifts in flows make Asia, Europe and UK equity opportunities worth reconsidering. Questions raised about timing of UK deals and whether political risk is already priced in. Discussion on pensions policy and property withdrawal proposals.
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Episode notes
AI Is Causing A Sector Rotation
- Markets are rotating as AI shifts from being a productivity boost to a disruptive force for many incumbents.
- Stocks exposed to platforms, legal tools, and comparison sites have been sold off while old-economy names have rallied.
Market Sentiment Has Flipped On AI
- The market moved from assuming AI would enhance incumbents to fearing AI will replace them.
- The truth likely sits between enhancement and destruction, creating uneven winners and losers.
Asia And Europe Benefit From Rotation
- The rotation also manifests regionally: Asian and European markets have recently outperformed.
- This shift makes non-US markets like Japan and parts of Asia more attractive to global investors.