Financial Times - Friday 23 October 2026 - Mexico-China trade weathers Trumpstorm

Oct 23, 2026

Mexico-China trade resilience is tested amid political and security shocks, with attention turning to conflict-linked developments and widening investor anxiety. Reporting highlights Houthi attacks on Saudi-linked sites and US personnel withdrawals, alongside Meta’s AI spending plans driving a steep US tech sell-off. Eurozone bond markets come under pressure, with France’s yields climbing and credit risk rising as investors rotate into havens while concerns about euro-area fallout grow.

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Mexico-China trade weathers Trumpstorm

Houthi attacks US orders staff to leave Saudi Arabia

Meta AI spending plans trigger steep US tech sell-off

Kyiv in Nato agency deal

Lawyersto watch US polls

Iran's nuclear push page 4

Da in the markets page 11

FINANCIALTIMES FRIDAY 23 OCTOBER 2026 # Mexico-China trade weathers Trumpstorm Al needs better oversight than banking ## HouthiattacksUSorders staffto leave Saudi Briefing Saudi-backed Yemeni governmentfighters fire during battles againstthecity of Taizon Wednesday. Fighting with the Saudi-led coalitionhas intensified since the Houthis seizedYemen's Red Seacoas last month. ▶Race to patch websitesCompanies and governments At the same time,the Iranian-sup-ported militants have increased theirattacks on Saudi Arabian soil,with twopeople killedinadrone strike targetingSaudi Aramco's giant Shaybah oilfieldon Wednesday. Kyiv in Nato agency deal The US state department has orderedsome personnel to leave Saudi Arabiafollowing the latest strikes against thekingdom.It cited the Houthi attacks,including those on civilian airports andother infrastructure,in its decisionregarding"non-emergency US govern-ment employees and their famly mem-bersin SaudiArabia”. ▶Lawyersto watch US polls Iran's nuclear push page4 ## Meta AI spending plans trigger steepUStech sell-offas investor fears grow ◆Platform's shares dive7%Flight to US TreasuriesoOilprices surgeoFrench bond yields soar fed anxiety about thefallout for theeuroarea economy.France's 10-year addi-tional yield above German Bunds,a keymeasure of investor anxiety,rose tomore than 1.7 percentage points,itshighest since 2011. IAN SMITH-LONDON investors sought shelter in havens.Ten-year US government bond yields fell record high early this month,as inves-torsfret over whether the huge risein AIstocks and big debt issuance to financedatacentres andchipshasgone too far. riskier corners ofthe region's bond mar-kets also suffered,with investors scur-rying forthe safety ofUSTreasuies. Meta led a sharp US tech stock sell-offyesterday as the group's blockbuster0.16 percentage points to just below5spending plans reignited concernsper cent,with the market ontrackforitsabout the sustainability of the debt-best daily performancesince mid-2024.fuelled AI infrastructure boom andShares in SpaceX dropped 6.7 persparkedarush intohaven assets.cent,erasingmostofthegainsmade thisShares in Mark Zuckerberg's socialweek after Elon Musk considered com-media grouptumbled more than 7 perbining the rocket group with Tesla.Thecent in midday trading after the groupcarmaker'ssharesfell 1.8per cent.forecast it would need to raise"hun-US tech stocks have been ht withdreds of billions of dollars”over several years to fund its bet on AI.The stock'sdecline stripped more than $120bnfrom Meta's market value.Itis a perfect storm,youhave anenergy inflation2.7 percent as investors moved awaystory,and you have a fiscalfrom riskier assets such as shares whilethe blue-chipS&P500slid1.3percent.and apolitical problem Falling stocks and the rush for havenbonds “reflect traders'rising risk aver-sion",said Van Luu,global head of solu-tions strategy at asset manager RussellInvestments. Traders have piled into credit defaultswaps linked to tech bonds.The spreadon Meta's five-year CDSjumped almost10 basis points to about i16bp,the high-estsince they started trading lastyear. Other Eurozone spreads also wid-ened.Italy's rose to 1.2 percentagepoints,while Belgium's climbed to 1.1points,touching itshighestsince2012. The centre of the Eurozone bond sell-off was France,whose 10-year yield-which climbed above 5 per cent onWednesday for the first time since 2002一jumped a further 0.07 percentagepoints to 5.08 per cent."It is a perfectstorm,you have an energy inflationstory,and you have a fiscaland apoliti-calproblem,"said Rohan Khanna,headof European rates researchat Barclays. On Wednesday,Treasury secretaryScott Bessen told investors in a privatemeeting that he did not see a“systemicproblem"with the AIboom. French and Italian bond markets hadgone into a “tailspin”,Khanna said,astraders with large amounts of leverageexited their positions and markets betthat support from the ECB remains faro

FAQs

What prompted the US decision to order some personnel to leave Saudi Arabia?

The US cited the latest Houthi attacks, including strikes affecting civilian airports and other infrastructure, in its decision regarding non-emergency government employees and their family members.

How did Meta’s AI spending plans affect US markets?

Meta led a sharp US tech stock sell-off as investors feared the sustainability of debt funding AI infrastructure, with Meta shares tumbling after the renewed spending outlook.

Why did Eurozone bond yields—especially France’s—rise sharply?

Investors’ risk aversion increased as leverage exited positions and markets expected ECB support to remain far off, contributing to a sell-off centered on France’s 10-year yield.

Oct 23, 2026

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