Bloomberg Surveillance Bloomberg Surveillance TV: December 31st, 2025
11 snips
Dec 31, 2025 Join market strategist Michael Purves as he warns about the risks of AI capex not yielding returns, contrasting today's frenzy with the late '90s tech bubble. US economist Michael Reid outlines a 'stagflation light' for 2026, highlighting low growth and sticky inflation, while George Pollack discusses the political implications of expiring healthcare subsidies and AI as a key campaign issue. Finally, Barbara Doran provides insights on the Fed's cautious approach and expectations for sector rotations in the year ahead.
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AI Capex Could Trigger A Big-Tech Re‑Rate
- Michael Purves warns AI-driven capex could fail to generate sufficient returns and force a re-rate of big tech multiples.
- He highlights record-low free cash flow yields on major AI spenders as the key vulnerability.
Google’s All‑Hands Illustrates C‑Suite AI Panic
- Purves recounts Google’s three‑years‑ago all‑hands as an example of C‑suite AI FOMO and strategic panic.
- He says executives on the front lines remain bewildered about ultimate winners.
Frenzied AI Deals Echo Late‑90s Tech Surge
- Purves compares current frenetic AI deal activity to the 1998–2000 tech-telecom convergence with winners and many write-offs.
- He stresses it's still early and even frontline tech executives are uncertain who will win.