Bloomberg Surveillance AI Jitters Cloud Market Optimism Over Shutdown Resolution
33 snips
Nov 11, 2025 
Huw van Steenis, a Partner at Oliver Wyman with a focus on global finance, and John Stoltzfus, Chief Investment Strategist at Oppenheimer & Co., delve into the current economic climate. Huw discusses late-cycle credit risks and the impact of UK political instability on investments. John highlights robust earnings that support the market rally and explains why AI is a game-changer rather than a bubble, contrasting it with the volatile nature of meme stocks and crypto. Their insights provide a comprehensive view of market dynamics as we approach 2026.
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Late-Cycle Credit Tension
- Credit markets show late-cycle behavior with tight spreads and increasing defaults, but banks report benign credit conditions.
- The key risk is whether defaults are dispersed or amplified across the system.
Tariff Strategy Under Legal Strain
- The administration treats the Supreme Court tariff hearing as a minor obstacle and leans on other authorities like Sections 232 and 301.
- Conservative justices appeared skeptical of the administration's broader IEPA argument.
Deregulation Boosts Bank Confidence
- Deregulation and regulatory simplification are core administration priorities alongside data center funding and supply-chain moves.
- Banks feel emboldened, but it matters whether gains go to buybacks or reinvestment.
