Squawk on the Street SOTS 2nd Hour: CPI Wrap-Up, Bank Earnings Breakdown, & the Road Ahead for LA Real Estate 1/15/25
Jan 15, 2025
David Harrow, a Partner and CIO at Harris Associates, shares his expertise on international equities. He discusses the positive CPI report and its implications for the Federal Reserve's future rate decisions. The conversation shifts to recent bank earnings, focusing on key players like J.P. Morgan and Goldman Sachs. Harrow highlights the investment potential in European markets, particularly attractive price-to-earnings ratios and economic policies. Finally, they delve into the impact of California wildfires on local real estate and rental markets.
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CPI Report Summary
- Core CPI increased by 0.2%, better than expected and the previous month's 0.3%.
- Supercore, services inflation excluding rent, also eased to 0.2%, offering relief.
Food Inflation Insights
- Despite overall positive CPI trends, food prices, especially staples like carbs, bacon, and eggs, continue to rise.
- Alcoholic beverage prices declined, reflecting changing consumer trends.
Inflation Uncertainties
- The impact of tariffs and tighter immigration policies on inflation remains uncertain.
- These policies could potentially decrease labor supply and increase inflationary pressures.