Bloomberg Surveillance Bloomberg Surveillance TV: December 4th, 2025
Dec 4, 2025
Binky Chadha, Chief Global Strategist at Deutsche Bank, shares his insights on the equity market and offers a bold S&P 500 target of 8,000, backed by a demand-supply framework and expected $1.4 trillion in buybacks. He warns that Q4 earnings will be crucial for validating this outlook. Sonal Desai argues against further Fed rate cuts, suggesting they could fuel inflation as demand rises. Angelo Zino addresses the evolving AI landscape, highlighting challenges in enterprise monetization despite rapid consumer adoption.
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Disinflation Has Stalled Around 3%
- Disinflation has paused around 3% since mid-2023 and hasn't resumed.
- Expansionary fiscal moves and AI-driven CapEx could push inflation back up toward 3.5–4% if demand strengthens.
Prefer Income Over Betting On A Big Rally
- Don't buy the entire market; prefer being 'aggressively neutral' rather than fully exposed.
- Focus on taking income (clipping coupon) in fixed income rather than banking on a large rally.
Price Targets From A Demand–Supply Lens
- Deutsche Bank models price targets via a demand-supply framework: existing money, new money, and supply via buybacks.
- Buybacks tied to earnings could supply ~10–11% of returns next year with $1.4 trillion in gross buybacks forecast.