Pavel Bandilov, CEO of Industrial Real Estate Fund, on “In Development”, 24.04.2026
Uncertainty in the Middle East and fears about the huge capital spending on AI continue to set the direction of global markets. Oil remains at high levels, while the technology sector is going through a period of correction and workforce optimization. That was the view of Pavel Bandilov, CEO of Industrial Real Estate Fund, on “In Development” on Bloomberg TV Bulgaria, hosted by Antonio Kostadinov.
The Middle East and the market reaction
Investors still seem to be betting on a quicker resolution of the geopolitical conflict, even though normalizing traffic through the Strait of Hormuz will take months. According to the guest, this means the oil price will stay in focus over the coming weeks. He drew an interesting parallel with cinema to describe the stalemate between the rival sides on the world stage.
You can see the conflict swinging from one extreme to the other. Right now the two main rival powers remind me a bit of Sergio Leone’s classic westerns or Quentin Tarantino’s films - think of the famous Mexican standoff scene, where the two opponents stare at each other frozen so long that, so we don’t think our TV has broken, the directors roll some tumbleweed across the screen.
At this stage the sides are trying to blackmail each other, moving into the territory of deals and pressure, the guest said. He added that risk assets such as cryptocurrencies have performed unexpectedly well, while traditional safe havens such as gold have not reacted as initially expected.
The technology sector and the effect of AI
In recent weeks the leading indices have posted strong gains, with the S&P crossing 7,000 points and the NASDAQ rising sharply. At the same time there have been steep corrections in software giants such as Adobe and ServiceNow. These declines are driven by fears that generative AI will undermine their business model, the guest explained. Although most companies are beating earnings forecasts, subscriber numbers are falling, which adds a dose of uncertainty.
According to Bandilov, the technology sector has gone through a kind of purge of excess leverage after a correction of more than 10% in leading companies in recent months. Upcoming IPOs of companies such as SpaceX, OpenAI and Anthropic are expected to bring enthusiasm back to the market. Earnings season is also exceptionally strong, with more than 88% of companies beating expectations, against an average of 78% over the past five years.
At the same time, the tech giants are making mass layoffs to justify their enormous AI capital spending, which historically compares in scale to the Louisiana Purchase. Companies such as Meta, Oracle (30,000 people) and Microsoft are already actively trimming their workforces.
Fed policy and concerns about conflicts of interest
On the new Federal Reserve chair, the guest said he is an interesting and financially independent figure with revolutionary ideas. His priority is bringing inflation under control rather than supporting the labor market. He also favors an aggressive reduction of the central bank’s balance sheet and less frequent communication with the public, to avoid unnecessary market noise. Markets should not expect rate cuts this year, because inflation remains above the 2% target.
At the end of the conversation, the topic of potential insider trading within the new US administration also came up. According to Bandilov, the presence of key Middle East negotiators such as Steven Mnuchin and Jared Kushner, who have funds and business appetites in the region, raises legitimate doubts. The situation is similar with Eric Trump in crypto circles.
“Even if there is no actual abuse, this way of doing business leaves a bad taste, and investors and regulators are watching it closely,” the guest said firmly.
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