Bloomberg Surveillance Bloomberg Surveillance TV: December 18th, 2025
11 snips
Dec 18, 2025 
Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management, shares insights on cooling inflation's effect on market diversity beyond AI leaders. Erika Najarian, from UBS, discusses a bustling year ahead for banking M&A and the resilience of major banks like Bank of America. Henrietta Treyz critiques the political discourse around tariffs and inflation funding, while Pooja Kumra delves into the Bank of England's uncertain path on rate cuts amidst labor and inflation trends. A lively discussion on economic policies unfolds!
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Market Broadening After AI Concentration
- Brent Schutte sees 2026 as a year of market broadening beyond a few big AI-linked winners.
- He expects small caps and previously ignored stocks to benefit from valuation tails and rising earnings.
CPI Drop Could Mask Weak Demand
- Schutte warns the CPI decline could mask weak demand and labor market softness.
- He notes payrolls may be overstated and that inflation returning to 2% is not assured.
AI Likely To Boost Broad Productivity
- AI adoption may mirror the internet: starting with 'picks and shovels' then spreading to broad productivity gains.
- Schutte cautions concentrated AI bets carry unnecessary risk as benefits diffuse across sectors.