Stocks Waver Ahead of PPI, Earnings, Brent Hits $102, Trump Vows Midterm Payout to Voters

Watch on YouTube ↗  |  September 10, 2026 at 11:40  |  43:27  |  Bloomberg Markets
Speakers
Onur — Bloomberg Reporter
Will Kennedy — EMEA News Director, Bloomberg
Matt Bloxham — Head of Research, The Block
Jack Caffrey — Portfolio Manager, J.P. Morgan Asset Management
Oliver Crook — Chief European Correspondent, Bloomberg
Winnie Hsu — Bloomberg Reporter (Asia Markets)
Chloe Meley — Reporter, Bloomberg

Summary

Bloomberg Brief covers global markets with Brent above $102, rising yields and Middle East escalation risk, ahead of the ECB decision, US PPI and Oracle earnings. Guests discuss energy supply stress, tanker rates, Nvidia-Groq DOJ scrutiny, TSMC demand and Oracle risks. Jack Caffrey of JPMorgan Asset Management argues AI suppliers are driving earnings but credit availability and fuel costs create equity risks, while he favors energy, financials and consumer trade-down beneficiaries.

  • Asian stocks were under pressure as Brent traded above $102, with tech leading declines while financials outperformed on higher bond yields.
  • The ECB was expected to hike to 2.5%, as European gas prices and energy inflation remained elevated.
  • Middle East escalation risk and energy supply stress supported oil tanker rates and diesel/refining margins.
  • The DOJ is scrutinizing Nvidia's licensing deal with Groq, while TSMC's 53% revenue growth showed strong AI chip demand.
  • Oracle faces AI capacity, funding and competitive risks heading into earnings.
  • Jack Caffrey sees AI suppliers broadening earnings, but rising borrowing costs could create equity hiccups.
  • He favors energy as an inflation hedge, financials for a steeper yield curve, and discount retailers as consumers trade down.
Ideas
Onur Bloomberg Reporter 8:53
Iran escalation keeps oil risk premium.
There is still a serious risk of US-Iran escalation, especially around the Strait of Hormuz, with attacks on shipping and possible strikes on energy sites elsewhere in the region, keeping a geopolitical risk premium in oil.
BNO MED
Will Kennedy EMEA News Director, Bloomberg 11:23
Tanker rates and diesel stay elevated.
Supertanker rates on the Middle East-to-China route are near $800,000 and freight analysis suggests very large crude carriers will stay above $800,000 for the next year; the entire energy supply chain is stressed, and diesel and refining margins are elevated with no reason to expect relief unless the wars end.
Oil tanker shipping DIESEL HIGH
Matt Bloxham Head of Research, The Block 17:18
TSMC chip demand outstrips supply.
TSMC revenue rose 53% year-on-year, an acceleration from July, and the company describes huge demand for its technology that is not slowing; it recently upgraded full-year guidance and is struggling to build enough capacity, supporting a multiyear demand-supply imbalance.
TSM SMH HIGH
Matt Bloxham Head of Research, The Block 17:52
Oracle faces AI funding and demand risks.
Oracle faces several concerns heading into earnings: whether it can deliver on AI capacity expansion amid local opposition to data centers, how it will fund the buildout, an at-the-market equity raise overhang, and uncertainty about how much AI compute business may shift from Oracle to AWS via OpenAI.
ORCL MED
Jack Caffrey Portfolio Manager, J.P. Morgan Asset Management 25:34
Credit availability creates equity hiccup risk.
Even with impressive earnings, companies increasingly need to borrow to realize AI investment, making this a credit-availability market; with dividends barely keeping up with inflation and rates moving higher, equities may have a hiccup or two over the next few months.
SPY MED
Jack Caffrey Portfolio Manager, J.P. Morgan Asset Management 27:26
Consumer discretionary faces fuel and rate pressure.
Higher short rates are starting to bite in credit card balances and high fuel costs act as a tax at the pump, creating weakness in consumer services and consumer durables as households feel stretched.
XLY MED
Jack Caffrey Portfolio Manager, J.P. Morgan Asset Management 28:22
Stretched consumers benefit discount retailers.
Consumers are stretched and changing behavior, which is showing up in better performance at Costco, Walmart and supermarkets, and dollar stores have come back to life in the near term as consumers trade down.
COST WMT DG MED
Jack Caffrey Portfolio Manager, J.P. Morgan Asset Management 32:04
Own energy as inflation hedge.
Higher inflation would be problematic for AI, so he protects against higher inflation by owning energy, which has historically been the source; the portfolio is long energy even after energy has stayed high for a long period.
XLE HIGH
Jack Caffrey Portfolio Manager, J.P. Morgan Asset Management 32:29
Financials benefit from steeper yield curve.
The portfolio is long a lot of financials to benefit from a steeper yield curve, which the Fed wants and which has been occurring over the last several months.
XLF HIGH
Oliver Crook Chief European Correspondent, Bloomberg 40:07
European gas storage scarcity keeps prices high.
European gas prices are at their highest since January 2023 and European gas storage is at the lowest level on record for this time of year; Asia is competing for inventories and cold weather could keep prices elevated, keeping energy inflation in the room.
UNG MED
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This Bloomberg Markets video, published September 10, 2026, features Onur, Will Kennedy, Matt Bloxham, Jack Caffrey, Oliver Crook discussing BNO, Oil tanker shipping, DIESEL, TSM, SMH, ORCL, SPY, XLY, COST, WMT, DG, XLE, XLF, UNG. 10 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Onur, Will Kennedy, Matt Bloxham, Jack Caffrey, Oliver Crook  · Tickers: BNO, Oil tanker shipping, DIESEL, TSM, SMH, ORCL, SPY, XLY, COST, WMT, DG, XLE, XLF, UNG