Markets Press on Amid Fed Pressure

18 snips

Jul 18, 2025

Wei Li, Global Chief Investment Strategist at BlackRock, dives into the current climate of inflation and global growth prospects. She shares insights on the resilient US economy and the optimism surrounding upcoming earnings reports. Wei discusses essential strategies for navigating the evolving market, emphasizing the contrast between active and passive investment methods. Additionally, she highlights the importance of understanding gross margins and adapting to technological advancements in investment decisions, all while addressing the unique challenges posed by a shifting economic landscape.

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INSIGHT

No Rising Tide Lifts All Boats

The post-2008 rise was a "rising tide lifting all boats" due to massive liquidity.
Current environment shows greater dispersion where active, selective management pays off.

INSIGHT

US Companies' Margin Resilience

US companies show strong margin resilience compared to Europe and Japan.
Tech's "Magnificent 7" drive margin growth through revenue without equivalent hiring.

INSIGHT

Active Risk-Taking Pays Off

Active managers are rewarded more in today's markets with greater dispersion.
Static macro factor exposure is now more punitive, requiring dynamic management.

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Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyJuly 18th, 2025
Featuring:
1) Wei Li, Global Chief Investment Strategist at BlackRock, joins for an extended discussion about the outlook for inflation and global growth as well as US equity bullishness. Global equities extended their advance on Friday as growing confidence in the resilience of the US economy and upbeat earnings lent fresh support to risk sentiment.
2) Ted Koenig, Chairman and CEO at Monroe Capital, brings us into the market open and discusses private credit and the overall credit outlook. Cross-asset moves come at the end of a week marked by market jitters over speculation that President Donald Trump might fire Fed Chair Jerome Powell. Equity gains reflected strong economic data and optimism that US companies will post robust second-quarter figures, helping to soothe uncertainty stirred by Trump’s tariff war.
3) Brandon Ogelnski, Airlines Analyst at Barclays, discusses the airline industry and his outlook for American airliners. It comes as United Airlines said the second half of the year has become more predictable and suggested it may be able to beat its earnings targets after customers resumed booking flights.
4) Rohit Chopra, former Director at the Consumer Financial Protection Bureau, joins for a discussion on his role before dismissal and recent CFPB and Fed independence news. Top bosses at some of Wall Street’s biggest banks emphasized the importance of an independent Federal Reserve as the long-running saga between President Trump and central bank Chair Jerome Powell intensified.Bank of America CEO Brian Moynihan and Goldman Sachs' David Solomon joined JPMorgan CEO Jamie Dimon in stressing the importance of the Fed’s autonomy.
5) Lisa Mateo joins with the latest headlines in newspapers across the US, including a Business Insider story on Goldman Sachs retaining junior talent and a WSJ story on birthday freeloaders.

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