Squawk on the Street SOTS 2nd Hour: Insured Losses, Apollo's Chief Economist, & An AI CEO's New Warning 1/27/26
Jan 27, 2026
Sarah James, an equity analyst focused on health insurers, and Torsten Slok, Apollo’s global chief economist, join the conversation. They discuss a new Medicare proposal pressuring insurer stocks and why some see a buying opportunity. Torsten breaks down growth drivers, AI capex, inflation stickiness, and Fed rate risks. The hour also touches on big AI headlines and supply-chain moves in tech.
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Episode notes
AI News Trumped Tariff Fears
- Carl and the team note AI news can outweigh tariff headlines, citing SK Hynix's Microsoft AI deal.
- They observed the South Korean KOSPI hit a new high despite tariff threats.
Stronger Growth Makes Rate Cuts Harder
- Torsten Slok says recent fiscal and policy changes flip the outlook from slowdown to stronger growth this year.
- He warns higher growth plus sticky ~3% inflation makes Fed rate cuts unlikely in 2026.
Fiscal Risk Elevates Term Premium
- Slok highlights a rising term premium and fiscal risks pushing long rates higher despite expectations of Fed cuts.
- He notes private long-duration assets now compete with 30-year Treasuries and pressure yields structurally.