Bloomberg Daybreak: Asia Edition TikTok Signs Agreement for New US Joint Venture, Asia Reacts to US CPI
Dec 19, 2025
Keith Buchanan, a Senior Portfolio Manager at Globalt, dives into the latest trends in equity markets and artificial intelligence, advocating for companies with cash flow stability. He discusses the current bond-market dynamics and the potential risks of long-end yields. Amy Xie Patrick, Head of Income Strategies at Pendal Group, provides insights on the implications of the cooling U.S. CPI data for Federal Reserve interest rate cuts and warns about the vulnerabilities in investment-grade credit amid rising AI investments. Both guests share strategies for navigating market uncertainties.
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TikTok Moves Toward U.S. Ownership
- TikTok signed binding agreements to create a U.S. joint venture majority-owned by American investors led by Oracle, Silver Lake and MGX.
- U.S. user data will be stored by Oracle and the recommendation algorithm will be retrained on U.S. data to prevent outside manipulation.
CPI Cooling But Data Caveats Remain
- U.S. CPI showed core inflation slowed to a 2.6% annual rate, the weakest since 2021, though data collection timing raises caveats.
- Markets rallied on the print, pricing in easier Fed policy despite potential skepticism from policymakers.
Price In Two Fed Cuts, Not More
- Expect about two Fed cuts priced into markets next year and avoid assuming significantly more easing will occur.
- Consider that political risks (e.g., a new Fed chair) may push front-end rates lower, so price that in cautiously.