Episode summary
Bloomberg Surveillance TV: May 29th, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Max Kettner, Angelo Zino, Michael Wirth
Summary
Markets were framed as unusually resilient despite higher yields, because strong earnings have been broad enough to offset rate pressure. Max Kettner argued that the recent move in Treasuries has not yet reached the kind of velocity that previously damaged risk assets, and that corporate balance sheets are better insulated now because debt maturities have been pushed out. He said the market is still concentrated in tech and AI, but the overall backdrop is supported by better-than-expected earnings and improved US economic data.
The conversation then shifted to semiconductors and AI infrastructure, where Angelo Zino argued that hyperscaler capex remains a major driver of earnings power. He said the current reset higher in spending can sustain the trade through 2027 and 2028, although growth should normalize later. He also said AI monetization is becoming more visible as enterprise usage rises and pilot projects move into production.
Chevron CEO Mike Wirth described a tighter crude market driven by disrupted flows through the Strait of Hormuz, with inventories drawing and some Asian markets already seeing shortages. He said it could take months to restore shipping and emphasized that Chevron would not pay a toll to move through the strait. He also said the company would not invest fresh capital in Venezuela until tax and royalty terms are clarified.
Key takeaways
- Max Kettner said higher yields have been easier for equities to absorb because earnings beats are strong and corporate debt maturities are longer.
- Kettner argued the market is still narrow, with tech and AI dominating while rate-sensitive cyclicals have not yet fully participated.
- Angelo Zino said hyperscaler capex is still driving semiconductor and hardware upside, with earnings growth potentially continuing through 2027 and 2028.
- Wirth said Chevron sees real physical tightness in oil markets, with June and July likely critical for inventories and shipping recovery.
- Wirth said Chevron would not pay a transit toll in the Strait of Hormuz and would wait for clearer fiscal terms before investing in Venezuela.
Notable quotes
“the danger zone for now at least we can ignore it. We can't ignore these higher yields because there's a couple of things I think happening”
“we've even in the economy overall underestimated how less rate sensitive we are now, how companies have termed out maturities”
“we're seeing the use cases, we're seeing greater we're seeing a lot of these pilot use cases go into AI production mode”
“We do see some in in some Asian markets, and we've seen some some rationing”
How the episode opens
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This is the Bloomberg Surveillance podcast. I'm Jonathan Ferro, along with Lisa Abramowicz and Amry Houghton. Join us each day for insight from the best in markets, economics, and geopolitics.
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And as always, on the Bloomberg terminal and the Bloomberg Business app. We begin this hour with stocks looking to add to record highs following Dow's blockbuster earnings report. Max Kettner of HSBC writing the close to 100% EPS beat rate coupled with strong forward guidance of the US tech sector in Q1 is cushioning the overall equity market.
Max joins us now for more. Max, we've talked about it repeatedly. Max Kettner, Max overweight, and Max, we got into your danger zone at one point in this bond market.
This market didn't blink. What gives?
Yeah, look, thanks for having me, John. I think the danger zone for now at least we can ignore it. We can't ignore these higher yields because there's a couple of things I think happening over the last two, three months.
We've obviously seen yields start to go up and in treasuries in conjunction with that much, much better earning season. You guys were just bringing up that tech had an almost 100% beat rate. So almost all of the companies in tech surprising to the upside.
I would look also at the worst beat rate. If we look at telcos, telcos had an earning beat rate that was just the average beat rate of the S&P in the 2010s. That at the moment is the worst beat rate across the sectors.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- multi-asset strategy
- technology outlook
- oil and energy
- economic news
- world markets
Companies and tickers mentioned
- CVX
- HSBC
- CFRA
- Chevron
Watch the episode
Watch “Bloomberg Surveillance TV: May 29th, 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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