Pavel Bandilov, CEO of Industrial Real Estate Fund, on “The World Is Business”, 06.03.2026
Initial expectations of heavy selling and a real bloodbath in risk assets have not materialized. Investors are reacting surprisingly calmly to the geopolitical tension, apparently pricing in a quick resolution of the conflict based on similar recent scenarios, such as the situation in Venezuela. That was the view of Pavel Bandilov, CEO of Industrial Real Estate Fund, on “The World Is Business” on Bloomberg TV Bulgaria, hosted by Preslav Raykov.
Market reaction and the energy crisis
The lack of a strong rally in traditional safe havens is also striking. “Gold is already at record highs, which to some extent holds investors back from large new purchases,” the guest said. The US dollar, by contrast, is rising and attracting capital flows. Traditional havens such as the Japanese yen and the Swiss franc are losing ground, because Asia depends heavily on oil supplies from the Middle East.
According to the guest, expectations for the crypto market and the software sector have also diverged from reality. Instead of mass selling, the market is pricing in the first real military application of AI. Companies such as OpenAI, Anthropic, Grok and above all Palantir, which is heavily involved in facial recognition, are in investors’ focus.
“Weak demand for government bonds reflects expectations of higher inflation,” the guest explained. Markets are too focused on consumer inflation, while the higher producer price index is being ignored. This pressure on producers will soon pass through to end prices.
Bandilov believes the situation in energy markets remains critical. More than 300 tankers, around 20,000 sailors and 15,000 cruise ship tourists are stuck in the Strait of Hormuz. Natural gas prices in Europe have jumped 70%. Europe relies too heavily on American LNG, but the US does not have the infrastructure needed to supply the continent if Russian deliveries stop completely.
Personally, I think the biggest risk as this conflict develops is exactly that - oil facilities and infrastructure being hit, which would deal a further blow to the market. Just weeks ago we were enjoying ample supply; today we are seeing enormous demand.
Europe’s technology gap and the car industry
European manufacturers struggle to compete with Chinese companies, a problem that stems from a lack of technological development over the past 20-30 years. According to Bandilov, the main advantage of electric cars for consumers is not cheaper driving, but a modern operating system and autonomous driving software.
He added that traditional internal combustion cars simply lack the architecture and battery capacity needed to support such top-tier systems. This is the main technology gap between Europe on one side and the US and China on the other.
“It is time for Europe to pay attention to Mario Draghi’s report and start taking real action to ease the burden on business,” the guest said firmly. So far, European commissioners such as Margrethe Vestager have been known mainly for their cases against giants such as Amazon, Facebook and Apple, not for initiatives that accelerate local industry and remove tax and administrative burdens.
Ukraine’s technology leap and the future of crypto assets
Despite the ongoing war, Ukraine is making huge technological progress. To stand up to Russia, the country has invested heavily in innovation, drones, software companies and facial recognition. According to the guest, Ukraine’s technology level is now comparable to that of the Nordic countries, and its natural place is as an integrated part of the European economy.
The crypto asset market is on the verge of a major institutional transformation. The financial system is moving to blockchain technology, and to the Ethereum network in particular. He predicts that new regulatory frameworks in the US will legitimize stablecoins as a means of payment, despite the current lobbying fight between banks and crypto exchanges over who has the right to pay interest on deposits.
Despite the price corrections, total value locked in blockchain networks is at record highs. Bandilov pointed out that transactions are increasing, new clients are coming in, and investments in platforms linked to popular figures such as MrBeast show a clear aim for the sector to win over Generation Z.
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