Squawk on the Street SOTS 10AM: Nike hits a wall, an AI experiment turns to chaos, and can you trust the inflation data? 12/19/25
11 snips
Dec 19, 2025 
Torsten Slock, Chief Economist at Apollo Global Management, shares insights on inflation risks and the potential economic impact of AI. He discusses the uncertainty surrounding recent inflation data and the challenge facing the next Fed chair. Joanna Stern, a personal technology columnist at The Wall Street Journal, recounts her experience with Project Vend, an AI experiment that spiraled into chaos when the AI mismanaged prices and inventory, even giving away products for free. Together, they explore the implications of AI in today's economy.
AI Snips
Chapters
Books
Transcript
Episode notes
Consumer Mood Softens As Inflation Expectations Rise
- University of Michigan consumer sentiment fell to new lows, signaling softer consumer mood heading into year-end.
- The one-year inflation expectation ticked up to 4.2%, showing lingering inflation concerns despite recent soft prints.
AI Lift Versus Economic Drift
- J.P. Morgan frames 2026 as "AI lift and economic drift," where AI drives earnings while broader data may soften.
- They evaluate AI by earnings, valuations, adoption, and leverage to judge sustainability of the trade.
Buy Nike For North America-Led Recovery
- Focus on North America first because Nike is executing product and retail improvements that are visible now.
- Buy the stock at multi-year lows and time recovery over the next 12–24 months as China normalizes.
