Squawk on the Street SOTS 10AM: The Bull Case for Stocks Into Year-End, Why AI is Helping Avoid a Recession, Ares CEO on Alternatives 11/3/25
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Nov 3, 2025 
Mark Zandi, Chief Economist at Moody's Analytics, reveals how AI is a game-changer for the U.S. economy, suggesting we'd be in a recession without it. He discusses the profound effects of AI on hiring and investment patterns. Michael Arougheti, CEO of Ares Management, shares insights on strong fundraising results and the outlook for alternative investments. He offers a glimpse into how AI is transforming Ares' portfolio and discusses the benefits of expanding retail access to private investments. Together, they paint a picture of an evolving economic landscape.
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Market Distorted Toward AI Leaders
- Johnston highlights AI benefits hitting corporate margins while broader consumer weakness persists.
- He notes the S&P correlation to consumer spending is falling as AI/data-center trade dominates returns.
Kenvue Sale Followed Activist Pressure
- David Faber recounts Kimberly-Clark's acquisition of Kenvue and how the deal value fell with Kimberly's stock drop.
- He explains Kenview faced activist pressure and underperformance after the J&J spinoff.
Synergies Justify Kenvue Price Cut
- Faber notes litigation and product issues reduced the original cash component of the Kenvue deal.
- He highlights $2.1 billion of expected synergies, mostly cost-based, as key to the acquisition thesis.