Episode summary
Bloomberg Surveillance TV: June 2nd, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Kit Juckes, Momei Qu, Monica Dicenso
Summary
The host opens with stronger U.S. manufacturing data and a market backdrop that still favors the dollar, then speaks with a guest who argues the Federal Reserve is unlikely to hike soon but could eventually be forced to if growth and inflation stay firm. The guest says the U.S. is outperforming other economies, while the ECB is tightening into weaker growth and could create its own problem by moving too aggressively. He also downplays immediate dollar collapse risks, saying dedollarization is only happening at the margin.
The discussion then shifts to artificial intelligence as a capex supercycle. A guest from PSP Capital Partners says demand for AI infrastructure is still accelerating, with companies effectively building the “roads and electricity grids” of a new compute economy. She argues the buildout is still in “early innings,” even as massive spending by Alphabet and other hyperscalers raises questions about eventual payback and valuation discipline.
A guest from JP Morgan Private Bank says investors should stay invested in AI but remain selective. She argues public markets still offer opportunity alongside private ones, and that the real question is which sectors beyond megacap tech will benefit. She points to financials and healthcare as potential AI winners, while urging portfolios to be better balanced for a world of sticky inflation and higher rates.
Key takeaways
- The guest said the Fed hike bar is “very high now,” but the U.S. economy is strong enough that the story could change over time.
- The guest argued the ECB is tightening into weak growth, which is a quicker path to trouble than the Fed’s slower adjustment.
- A PSP Capital Partners guest said AI demand is still surging and that the buildout remains in “early innings,” despite huge capex commitments from Alphabet and other giants.
- A JP Morgan Private Bank guest said investors should stay in the AI super cycle but be selective, with financials and healthcare among the possible beneficiaries.
- The private bank guest said portfolios should be more balanced for higher and stickier inflation, including more exposure to core real estate and infrastructure.
Notable quotes
“It seems very high now. It's not going to feel so high in 6 9 12 12 months time”
“the danger is with the slowing economies, we're going to raise rates. The market thinks we're going to raise rates in at the ECB several times”
“I think demand is showing no signs of slowing down and we're talking about building out essentially the real roads and the electricity grids of AI”
“Stay invested in the AI super cycle but be selective”
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. So, here's the latest this morning.
US manufacturing activity expanding at his fastest pace in four years. Investors are waiting more data to reinforce bets on the path for interest rates. Kit Jes writing, "While President Trump's hopes for Fed easing may be disappointed, hikes are off the table for now.
Kit Jukes joins us for more. Kit, welcome to the program, buddy. Good to see you.
My apologies about the result over the weekend. I'll squeeze that into the end of the conversation. Kit, how high is that bar for that rate hike of this Federal Reserve?
It seems very high now. It's not going to feel so high in 6 9 12 12 months time. I think the world will eventually change. Look, the US economy is without doubt not just out growing the rest of the world, but it's growing pretty strongly.
If that's the case, Kit, what is the barrier to potentially raising rates not just once, but several times? We were just talking to somebody talking about how uh he sees the vi the 10-year yield getting unmed with all of the capital spending from big tech giants. We're seeing inflationary pressures coming from myriad different places. I mean, would it be a problem if they hiked rates?
Well, if you leave it too long and you hike rates too much too fast, too late, then then you you know that that is a re a recipe for a recession.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fx strategy
- global markets
- economic outlook
- investment opportunities
- fed and rates
Companies and tickers mentioned
- JPM
- Societe Generale
- PSP Capital Partners
- JPMorgan Private Bank
Watch the episode
Watch “Bloomberg Surveillance TV: June 2nd, 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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