Bloomberg Surveillance Bloomberg Surveillance TV: October 28th, 2025
Oct 28, 2025
Deepak Puri, Chief Investment Officer at Deutsche Bank, dissects the Fed's outlook as it may ease into 2026. Ohsung Kwon, Chief Equity Strategist at Wells Fargo, raises his S&P 500 price target and highlights key year-end market catalysts like AI CapEx and tariff impacts. Katy Kaminski from AlphaSimplex Group examines market breadth and gold's signaling role amid strong earnings. Rep. French Hill details the government shutdown's local effects, especially on agricultural sectors, urging prompt Senate action to support vulnerable farmers.
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Episode notes
Supply Shocks Could Reveal 2026 Risks
- Two major supply shocks this year—tariffs and reduced labor supply—may reveal their full economic impact in 2026.
- Markets may ignore near-term shocks but must recalibrate if labor weakness persists into early 2026.
Position For A Year-End Risk-On Trade
- Buy lagging, high-beta, and smaller-cap AI CapEx beneficiaries into year-end seasonality.
- Prefer CapEx takers (smaller vendors) over hyperscalers that are expanding capacity and reducing free cash flow.
Tariff Ruling Is A Binary Reflation Catalyst
- A potential tariff repeal (AIPA) could free roughly $160 billion back into the economy and be highly reflationary.
- Markets will likely react strongly to the binary ruling even if longer-term uncertainty rises afterward.