Episode summary
Bloomberg Surveillance TV: July 1st, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · 21 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Victoria Fernandez, Angelo Zino, Ivan Espinosa
Summary
The conversation opened with a market call from Victoria Fernandez, who said the first half’s momentum trade is giving way to a rotation into healthcare, financials and industrials. She argued that stocks could be weaker for the next 30 to 45 days, not because the bull market is over, but because investors are moving money rather than pulling it out. She also warned that liquidity is tightening as the benefits from last year’s tax bill fade and consumers’ savings are depleted, even as credit markets continue to absorb heavy issuance.
On inflation and the Fed, the guest said sticky core readings are still the bigger issue than softer gasoline prices. She pointed to core CPI and PPI above 5% and said the market is underestimating the central bank’s hawkish tilt. She expected little fresh guidance from Kevin Warsh, but thought any comments on balance-sheet runoff and money supply could matter for rates.
Angelo Zino of CFRA said the AI and chip-capex cycle still has room to run, with spending accelerating in the first half and likely decelerating only as comparisons get harder. He argued cloud providers have already taken out much of the easy labor cost savings, while enterprise adoption of AI and higher usage should keep demand growing. Ivan Espinosa of Nissan said the company is using AI to cut development cycles, aiming for autonomous features across much of its lineup, while keeping production flexible across the U.S., Mexico and China amid tariffs and policy uncertainty.
Key takeaways
- The guest expects a 30-to-45-day market consolidation, with rotation into healthcare, financials and industrials rather than a broad selloff.
- The guest said liquidity is still supporting risk assets, but warned that fading tax benefits and weaker consumer savings could tighten conditions.
- The guest argued the Fed remains hawkish because core inflation is still sticky, with core CPI and PPI above 5% and super-core near 3.9%.
- Angelo Zino said AI-related data-center spending is still accelerating, and any deceleration is more likely in 2027 than now.
- Zino said cloud providers have already harvested much of the easy cost-cutting, so future AI payback will come more from enterprise adoption and monetization.
- Ivan Espinosa said Nissan has cut development times by around 40% and plans to roll out autonomous technology across as much as 90% of its lineup.
Notable quotes
“Rotation is the name of the game following an unwind of momentum and beta. You can see weaker markets for the next month”
“the market is actually underestimating um some of the elements, some of the warning signs here in the economy”
“I think there's a lot of concern of what's flowing down into the core components of our um of our economy”
“We remain positive about the overall outlook for chip and ship equipment providers as we believe the first half of the year witnessed a structural reset higher for data center spending”
How the episode opens
Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Surveillance Podcast. I'm Jonathan Pharaoh along with Lisa Abramitz and Amarie Hordern.
Join us each day for insight from the best in markets, economics, and geopolitics. From our global headquarters in New York City, we are live on Bloombo television weekday mornings from 6:00 to 9:00 a.m. Eastern.
Subscribe to the podcast on Apple, Spotify, or anywhere else you listen. And as always, on the Bloomberg terminal and the Bloomberg business app, we begin this hour with stocks pulling back to kick off the second half of the year. Victoria Fernandez of Crossmark Global Investments writing, "Rotation is the name of the game following an unwind of momentum and beta.
You can see weaker markets for the next month. Victoria joins us now for more. Victoria, welcome.
Just elaborate a little bit more if you can. Where are you expecting to see weakness? Yeah.
Well, I think Jonathan, when you typically have this unwind of momentum of um of beta in the markets, you do have markets tend to go a little bit weaker for the next 30, 45 days. Doesn't mean you have a huge pullback, but you do have a little bit of a consolidation. And I think we're seeing it within parts of the market.
Maybe we don't see it within the entire market, but there are certain sectors, and you guys have been talking about them, where we've been seeing some of this come down. And you're also seeing um within the sectors not everything is responding the same. So look semis you look at semis Russell 3000 semi-industry group you only have about 15% of those names above their 20-day highs.
So, you had this big peak, you had this bubble kind of formation going on here, and now you're seeing the trend start to come down.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- economy
- markets
- technology
- auto industry
- investment strategy
Companies and tickers mentioned
- NSANY
- Crossmark Global
- CFRA
- Nissan Motor Co.
Watch the episode
Watch “Bloomberg Surveillance TV: July 1st, 2026 | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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