Squawk on the Street SOTS 2nd Hour: Apollo's Chief Economist, Fmr. Fed Vice Chair Talks Policy, & Exclusive: Oaktree's Howard Marks 10/13/25
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Oct 13, 2025 
Howard Marks, Co-Chairman of Oaktree Capital, shares insights on market cycles, the psychology behind bubbles, and the current state of AI valuations, likening them to a bubble yet noting a lack of manic behavior. Tom Michaud, CEO of KBW, discusses the banking sector's earnings outlook amid credit trends and M&A activity, identifying which banks are poised for growth. The conversation covers shifting economic dynamics shaped by tariffs and potential Fed policy impacts on inflation, adding depth to the market landscape.
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China Finds Other Markets
- China is diversifying exports away from the U.S., boosting sales to Europe and Africa.
- That reduces U.S. leverage in trade negotiations and complicates tariff impact.
K-Shaped Economy Emerging
- Torsten Slok highlights a K-shaped economy: booming industrial sectors while consumers struggle.
- Tariff-driven cost pressure risks adding inflationary headwinds for consumers.
Delay Hasty Rate Cuts
- Avoid premature Fed rate cuts if inflationary pressures from tariffs and a weaker dollar persist.
- Reassess policy only after clearer data on demand versus supply-driven labor changes.