Keep pulling the thread on Bloomberg Surveillance.
After two years of a declining Producer Price Index (PPI) from China, Florina Ierucci of T. Rowe Price is now seeing anecdotal evidence of Chinese companies raising prices.
Mark Haferle of UBS raised his year-end price target for the S&P 500 to $7,900.
Mark Haferle of UBS estimates that the positive impact of AI-related capital expenditure on global GDP is approximately two times the negative impact from the rise in oil prices.
Mark Haferle of UBS identifies power generation and electrical transformers as key bottlenecks in the expanding AI infrastructure supply chain.
Mark Haferle of UBS states that the Federal Reserve is unlikely to hike interest rates anytime soon because wage growth is under control and recent inflation is primarily driven by energy prices.
UBS expects 20% earnings growth for the S&P 500.
General Joseph Votel, former US CENTCOM commander, stated that Iran is using the Strait of Hormuz as strategic leverage in its wider confrontation.
General Joseph Votel estimates that a mass escort mission for commercial vessels through the Strait of Hormuz would require the commitment of 15 to 20 U.S. Navy destroyers.
The United States is conducting negotiations with Iran through intermediaries, with Pakistan having served as an interlocutor for several weeks and Qatar having recently joined the effort.
Florina Ierucci of T. Rowe Price believes the most likely outcome for the Federal Reserve's policy is to keep interest rates on hold for the next 12 months.
Florina Ierucci of T. Rowe Price believes that increased investment and costs related to AI present a near-term upside risk to consumer price inflation.
Florina Ierucci of T. Rowe Price sees a potential path for the Federal Reserve to begin cutting interest rates in December 2024 or January 2025 if inflation moves towards 2%.