Bloomberg Daybreak: Asia Edition Trump New Round of Tariffs, TikTok Order Signed
Sep 26, 2025
Brian Krawez, President of Scharf Investments, shares insights on market reactions to the recent GDP revision and warns of potential AI valuation bubbles. He discusses the implications of the potential TikTok sale for Oracle and U.S. investor security. Deborah Elms, Head of Trade Policy at the Heinrich Foundation, analyzes President Trump's new tariffs, particularly on pharmaceuticals, warning of their complexity and consumer backlash. She emphasizes the need for trade partners to adapt amidst evolving supply chains and rising economic risks.
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AI Spending Echoes Late‑90s Excess
- Brian Krawez warned of 'shades of 1999' in AI financing with massive capital commitments but relatively small revenues so far.
- He compared current deal dynamics to past tech bubbles while noting differences in profitability for key players like NVIDIA.
Strong GDP Raises Fed Conundrum
- A revised Q2 GDP of 3.8% created a conundrum for Fed rate-cut expectations amid mixed labor signals.
- Krawez said heavy investment, much tied to AI, significantly boosted GDP but raised questions about potential malinvestment.
AI Data Centers Could Push Inflation
- Energy demands from AI data centers are pushing energy prices higher and could translate into inflationary pressure.
- Healthcare inflation and ACA marketplace premium jumps also risk raising broader consumer costs.