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Peter Chia believes that if the Federal Reserve were to cut interest rates now, it would lose control over the long end of the bond market.
The primary economic impact of AI over the next one to two years will be inflationary due to the high cost of buildouts, rather than deflationary from productivity gains.
Peter Chia believes the Bureau of Labor Statistics' birth-death model overstates new business creation because it misinterprets a rise in Employment Identification Number (EIN) applications, which are increasingly sought by individuals entering the gig economy out of job insecurity.
According to a Reuters report, Iran's Supreme Leader has issued a directive that the country's near weapons-grade uranium should not be sent abroad.
Israel's stated condition for considering its current war to be over is the removal of Iran's highly enriched uranium from the country, either to a third party or through action by the United States.
The global oil market is in a massive deficit and is approximately a month and a half away from outright shortages, which could materialize by the end of June.
In a scenario where parts of the world experience genuine oil stockouts, crude prices could rise to previous highs of $160 to $170 per barrel, or potentially even higher.
BNY Mellon processes 20% of the world's investable assets through its systems every day.
BNY Mellon settles 95% of the U.S. Treasury market every day.
Peter Chia of Academy Securities believes that for companies in the AI space, interest rate levels of 4%, 6%, or 8% are trivial due to the immense profit potential.
AI data centers are largely indifferent to rising electricity prices because the cost is a trivial input relative to their revenue.
Large asset managers are currently heavily invested in corporate credit, which they view as cheap and offering a compelling story.