In this episode, Escala Partners CIO, Tracey McNaughton, talks about AI and its energy demand; Biden's tariff hike on China; and why we should be a little sceptical of the this weeks' Federal Budget.

(0:54) The latest Bank of America fund manager survey shows optimism in the stock market is at its highest level since November 2021. Investors are optimistic inflation will decrease and short-term interest rates will get cut.

(3:04) Some big news overnight, apart from the Federal budget, was US President Biden's tariff announcement on goods coming in from China.

(4:50) Why is all of this important?

(7:42) We will get to the budget. You have just finished heat week with your fund managers. What were some of the themes?

(9:51)Just on AI and energy – we have known for some time that AI consumes lots of energy. Why was it such as surprise to the market?

(12:37) Speaking of inflation. Do you buy the Treasurer's view that injecting $9.5 billion into the economy is not inflationary?

(15:12) How do you think the RBA will respond?

(16:17) What about the Future Made in Australia initiatives?

(18:46) So, I'm guessing, Tracey, this budget does nothing to change your view on investing in Australia?