Squawk on the Street SOTS 2nd Hour: Producer Inflation Breakdown, Klarna CEO Talks IPO, & Oracle's Best Day Since '92 9/10/25
Sep 10, 2025
Sebastian Simitowski, CEO of Klarna, shares insights on consumer credit behavior and the growing popularity of buy now, pay later services amid economic uncertainty. Tony Wong discusses the unexpected decline in wholesale inflation and its influence on interest rates, while David Zervos analyzes employment statistics and market dynamics. They touch on AI-driven efficiency changes, with Klarna's innovative business model challenging traditional credit systems, alongside the impacts of geopolitical tensions on energy pricing and tech stocks.
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AI Trade Is Driving Market Leadership
- Technology and AI names are leading the market, pushing the S&P to record highs.
- Oracle's rally shows AI spending is broadening across the tech ecosystem.
PPI Suggests Inflation Cooling
- The PPI print fell, including core, signaling disinflationary pressures.
- That weak wholesale inflation supports the case for Fed rate cuts.
Margins Falling, Inflation Not Passed On
- Producers are absorbing margin pressure as they can't pass on higher costs.
- Falling producer margins can reduce inflation but hurt corporate profits.