Bloomberg Surveillance Bloomberg Surveillance TV: September 22nd, 2025
17 snips
Sep 22, 2025 
Krishna Guha, Vice Chairman at Evercore ISI and former central banking expert, dives into the complexities of Fed policy, discussing committee divisions and the potential impact of rate cuts on markets. Venu Krishna, Head of U.S. Equity Strategy at Barclays, shares insights on the sustainability of the equity rally, highlighting tech sector growth and earnings analysis. Together, they explore factors like market speculation, credit tightening, and the evolving landscape of small caps, offering a nuanced view of current economic trends.
AI Snips
Chapters
Transcript
Episode notes
Cuts Raise Speculative Boom Risk
- Fed rate cuts amid above-target inflation raise odds of a later speculative boom in markets.
- Credit spreads and equity valuations are near multi-decade tights, signaling growing corporate activity risk.
Mixed Data Mask Divergent Signals
- Economic data are mixed: labor-market weakness contrasts with resilient GDP trackers and retail sales.
- Commercial bank loan growth is accelerating, suggesting underlying credit demand strength.
Speculative Boom Favors Equities Over Credit
- A speculative boom would help cyclical small-cap equities more than credit, where risk is already priced tightly.
- M&A and IPO activity remain below trend, so there is room for corporate deal expansion.