Bloomberg Surveillance AI Bulls Fuel Rally as Markets Turn to Private Eco Data
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Nov 3, 2025 Bob Michele, CIO at J.P. Morgan Asset Management, discusses the Fed's policy shift and the potential for another rate cut. Henrietta Treyz, co-founder of Veda Partners, analyzes the implications of U.S.-China trade relations on agriculture and forecasts significant farm aid. Pat Haskell, from BlackRock, shares insights on municipal bond performance and valuations, highlighting their attractiveness in the current market. The conversation highlights strategic moves in different investment sectors amidst evolving economic conditions.
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Fed Cut Was Expected But Signal Mixed
- The Fed's 25bps cut felt expected but the minutes were more hawkish than markets assumed.
- Bob Michele expects another cut in December given weak activity and shutdown headwinds.
Broad Demand Returns To Fixed Income
- Investors are reallocating into fixed income after years of under-allocation and high cash balances.
- Demand comes from retail, U.S. institutions, pensions, insurers, and returning overseas buyers.
Shift Cash Into Fixed Income Ahead Of Cuts
- Move out of cash into bond funds to capture carry and potential price gains as rates fall.
- Each Fed cut reduces cash yields while bond funds earn carry plus price appreciation.