Bloomberg Daybreak: Asia Edition Stocks Stall on Fed Caution; HKEX CEO Bonnie Chan
Aug 21, 2025
Tim Pagliara, Chairman and Chief Investment Officer at CapWealth, shares insights on the Fed's recent minutes, inflation trends, and their potential impact on market strategies. Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, highlights a record quarter for the exchange, driven by a surge in IPOs and growing interest from international investors. The discussion dives into how these factors may shape the financial landscape in Asia, especially as Chinese firms increasingly seek capital.
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Fed Sees Inflation Risk Over Labor Slack
- Fed minutes show members see upside inflation risk outweighing labor-market concerns, keeping policy watchers cautious.
- Tim Pagliara notes inflation near 3% forces the Fed to balance employment and price stability amid uncertainty.
AI-Driven Valuation Concentration
- Equity valuations concentrate heavily in AI and data-center related stocks, raising bubble concerns.
- Tim Pagliara compares current froth to historical railroad bubbles but sees consolidation leading to later expansion.
Treat Corrections As Healthy Repricing
- View short-term pullbacks in frothy names as healthy recalibrations rather than catastrophic events.
- Tim Pagliara expects broader participation across more companies to sustain market momentum.