Bloomberg Fed and Economy Reporter Enda Curran explains why inflation still stings despite cooling from pandemic-era highs. Tariffs, energy costs and AI demand are pushing prices up, while relief in a few categories is limited. He also discusses the Fed's 2% target and the credibility risks of changing it.
On this episode of Stock Movers: - CoreWeave (CRWV) shares are continuing their slide amid a major issue with their debt. CoreWeave's debt has weakened in recent months, with credit-default swaps pricing in a more than 50% chance of default within the next five years, and the company's bonds now yield 15% a level that is practically unheard of in the primary market for new debt. - Taiwan Semiconductor Manufacturing (TSMC) shares are moving after it delivered a better-than-expected revenue outlook, projecting sales of as much as $54.3 billion in the December quarter. Still, the company's upbeat projection failed to stem a global tech stock rout. - RocketLab (RKLB) is falling as it delayed the debut of its Neutron rocket, pushing the vehicle's first flight to 2027. CEO Peter Beck said the company won't rush to the pad with unnecessary risk, and that development programs like Neutron have their challenges.
Anastasia Amoroso, Partners Group chief investment strategist, says the Federal Reserve is unlikely to raise interest rates at its next meeting, even after hotter-than-expected producer price data. She speaks on "Bloomberg Open Interest."
Anthropic should pause its initial public offering until it has fully addressed risks around artificial intelligence, according to New York City's comptroller. A letter from Mark Levine addressed to Anthropic Chief Executive Officer Dario Amodei on Wednesday suggested the Claude developer should instead focus on addressing the unprecedented risks of the technology. Ed Ludlow reports on Bloomberg Television.
The US producer price index for September advanced 1.3% from a month earlier the most since March 2022 and 6.3% from a year earlier, according to Bureau of Labor Statistics data out Thursday. Energy prices rose 10.8% in September. Bloomberg's Enda Curran reports.
Jeff Currie, CEO at Real Macro, says the US focus on issues with diesel prices is "going to make the gasoline problem likely far worse." He advocates owning the energy equities in what he calls "the revenge of the old economy" in a rotation out of tech.
Wei Li, global chief investment strategist at BlackRock, explains her firm's bullish move on short-term US Treasuries while downgrading stocks. She speaks on "Bloomberg Surveillance."
Ted Mortonson, managing director of technology at Baird, expects that a sharp move lower in the artificial intelligence trade will happen "real quick" if the market moves from fear to a panic phase. He speaks on "Bloomberg Surveillance."
Sebastien Page, co-head of global investments and CIO at T. Rowe Price, explains why he "fundamentally" remains optimistic on the artificial intelligence trade over the next 6-12 months. He speaks on "Bloomberg Surveillance."
Kelsey Berro, fixed income portfolio manager at JPMorgan Asset Management, examines the bond market's response to US CPI data and the selloff in the artificial-intelligence trade. She speaks on "Bloomberg Brief."
As South Africa's state power utility relinquishes its monopoly over electricity provision, CEO Dan Marokane says it will remain a dominant player in the country and take on an increasingly important role in neighboring states. He spoke to Bloomberg Television's Jennifer Zabasajja at the company's Johannesburg offices.
Ukrainian President Volodymyr Zelenskyy has ordered attacks on Russian oil refineries to resume, ending a three-day pause on strikes in response to US President Donald Trump's call last week for an "energy ceasefire." Moscow has continued attacking Ukrainian energy infrastructure and civilian targets over the last few days leading to a mounting death toll. Tony Halpin reports on Bloomberg Television.
