Bloomberg Surveillance Bloomberg Surveillance TV: May 7th, 2026
18 snips
May 7, 2026 
Max Leighton, Global Head of Commodities Research at Citigroup and oil market specialist, breaks down physical vs futures oil dynamics. He discusses inventory drawdowns, how futures shape spot trades, and a potential Q3 pinch point that could push crude much higher. Conversation also touches on Strait of Hormuz risks and the role of inventory convexity.
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Fed Should Stay On Hold Amid Conflicting Forces
- Darius Dale argues the biggest Fed mistake this year would be to act because growth, productivity gains, and credit expansion create offsetting inflation and jobless-recovery dynamics.
- He cites 3-month annualized core PCE at ~4.4% and a 150–200bp rise in trend productivity that could shave 40–50bp off inflation.
AI Will Spread Productivity Beyond Mega Caps
- Dale sees AI driving a productivity boom that creates convergence in margins and valuations between mega-cap tech and previously unloved companies.
- He says the transfer of AI tech already started 18 months ago and will lift international and non-mega-cap stocks.
Take Profits In Chips And Hunt Faster Margin Converters
- Take profits in chip stocks and rotate into businesses with faster convergence in profitability as AI adoption lifts margins.
- Dale recommends trimming gains because chip valuations are "Looney Tunes" while seeking companies with quicker margin improvement.