Bloomberg Surveillance Retail Sales and Previewing the Fed Decision
Sep 16, 2025
The conversation dives into the sustainability of the current equity rally, with a focus on the anticipated Fed decision that could shift market dynamics. Experts discuss the luxury retail sector's resilience amid rising prices and a softening jobs market. Meanwhile, innovative technologies like Amazon's Prime Vision aim to enhance viewing experiences in sports, while a unique phone-free bar in Washington D.C. promotes authentic social interactions. The podcasters also explore trends in consumer behavior and the evolving landscape of asset-backed finance.
AI Snips
Chapters
Transcript
Episode notes
AI Rally Is Broadening
- The AI rally is broadening beyond the top five names into small caps and an equally weighted S&P index hitting highs.
- Alicia Levine says cheaper tech valuations pair with vastly improved free cash flow and margins versus the late 1990s.
Fed Cuts Meet Rising Earnings
- Fed cuts are being priced into markets and coincide with rising S&P earnings estimates, creating a 'melt up' environment.
- Levine cautions monetization of hyperscalers' CapEx is the key risk for sustaining margins and free cash flow gains.
K-Shaped Consumer Backing Luxury
- Household net worth has risen sharply since 2020, creating a K-shaped consumer where top quintiles fund luxury and discretionary spending.
- Levine says that rising wealth supports consumption even amid labor market softness.