Squawk on the Street Squawk on the Street 2ND Hour: 12/31/25
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Dec 31, 2025 
Wes Cummins, the CEO of Applied Digital, shares insights on his company's spin-out of its cloud business, aiming to eliminate customer conflicts during a booming data center demand. Noted economist Mohamed El-Erian discusses the paradox of rising unemployment despite strong GDP growth and the complexities AI brings to the Federal Reserve's strategies. He emphasizes the need for strategic leadership in tackling economic risks posed by AI adoption while advocating for labor-enhancing measures in navigating future challenges.
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Why Coffee Prices Jumped
- Coffee price spikes this year were driven mainly by weather and supply shortages in Brazil and Vietnam, not just tariffs.
- Improved supply and tariff relief should push coffee prices lower in coming months.
AI CapEx Is Macro Material
- Big tech CapEx for AI infrastructure reached staggering levels, with Amazon around $125B and the group over $400B combined.
- That scale of spending is materially boosting GDP and market dynamics this year.
Growth And Unemployment Decouple
- GDP growth and rising unemployment are decoupling, a pattern possibly linked to AI-driven productivity gains.
- This unusual mix creates policy and social questions about jobs and corporate margins.