Trump Tariffs Face House Rebuke | Balance of Power 02/11/2026
Watch on YouTube ↗  |  February 12, 2026 at 01:37 UTC  |  51:21  |  Bloomberg Markets
Speakers
Alexandra Semenova — Bloomberg Reporter
Annmarie Hordern — Bloomberg Reporter
Catherine Edwards — Economic Policy Consultant
Rick Davis — Political Analyst
Chris Wright — US Energy Secretary
Ty Cobb — Former Special Counsel

Summary

  • US labor market data is showing "substandard" quality; while headline numbers beat expectations (130k jobs), 2025 saw massive downward revisions and growth is concentrated solely in healthcare, masking weakness elsewhere.
  • A distinct market rotation is occurring: Capital is fleeing "AI-disrupted" sectors (Software, Marketing Tech, Real Estate Services) and moving into AI Infrastructure (Cisco) and defensive Value (McDonald's).
  • The US administration is actively engaging Venezuela to "set the economy free," creating a binary divergence between oil majors who stayed (Chevron) and those who left (Exxon).
  • Consumer credit defaults are at all-time highs, validating the "trade-down" thesis for consumer staples and fast food.
Trade Ideas
Ticker Direction Speaker Thesis Time
AVOID Alexandra Semenova
Bloomberg Reporter
Despite beating estimates, AppLovin (referred to as "mobile technology marketing firm") and the broader software ETF fell (down 3%). Semenova noted investors are worried about "whether they are strong enough to weather AI disruption." This is a sentiment shift. Good earnings are being sold because the market believes AI agents will render these business models obsolete in the future. The "AI displacement" discount is expanding. AVOID or SHORT on bounces; the market is pricing in existential risk regardless of current cash flow. AI fears prove overblown and these stocks re-rate on strong fundamentals. 16:54
CWK
SHORT Alexandra Semenova
Bloomberg Reporter
Cushman & Wakefield posted their "biggest drops since March 2020." The Real Estate services sector is being hit by a dual narrative: AI disrupting white-collar office demand (less need for space) and the macro reality of high interest rates/refinancing walls. SHORT as the sector faces structural headwinds. Unexpected drop in interest rates stimulating commercial real estate activity.
SHORT Catherine Edwards
Economic Policy Consultant
"Credit defaults at all-time highs, very high delinquencies, the balance sheets on credit cards are high." The headline jobs number (130k) is masking deep rot. Job growth is only in healthcare (driven by aging/sickness, not economic dynamism). A consumer with maxed-out credit cards and no high-wage job growth cannot sustain discretionary spending. SHORT Consumer Discretionary (cyclical retail, travel). Federal Reserve cuts rates aggressively, providing a lifeline to debtors. 19:52
CVX
LONG Annmarie Hordern
Bloomberg Reporter
Energy Secretary Chris Wright is in Caracas to overhaul the industry. Hordern noted Chevron has "been operating in this country for a century... they already know where to start expanding production... especially if they get an extended license." In contrast to Exxon (XOM), whose CEO called Venezuela "uninvestable," Chevron has maintained its foothold. If the Trump administration normalizes relations or expands licenses, CVX has immediate first-mover advantage to monetize Venezuelan reserves. LONG/WATCH pending license news. Political volatility in Venezuela; US sanctions snapback. 24:32
LONG Alexandra Semenova
Bloomberg Reporter
Cisco beat revenue estimates ($15.6B) and the CEO stated the company is "uniquely positioned to deliver the trusted infrastructure needed... to power the AI era." The market is rotating out of "AI Losers" (software that gets replaced) into "AI Winners" (infrastructure that powers the replacement). Cisco is successfully rebranding from legacy networking to essential AI plumbing. LONG as a legacy tech turnaround play on AI capex. Enterprise spending slowdown outside of AI verticals. 16:54
MCD
LONG Alexandra Semenova
Bloomberg Reporter
McDonald's posted its fastest sales growth in over two years (6.8% jump in US), explicitly stating that "value meals continue to resonate with cost-conscious consumers." Catherine Edwards provided the macro context: US households are facing "credit defaults at all-time highs." In this environment, consumers trade down from casual dining to value-tier fast food. MCD is capturing this volume. LONG as a defensive play on the weakening consumer wallet. Sticky inflation in food costs squeezing margins despite volume growth. 16:43