Morning Call Sheet: AI price wars collide with cooling inflation

Watch on YouTube ↗  |  August 13, 2026 at 14:24  |  7:38  |  CNBC
Speakers
Peter Tchir — Head of Macro Strategy, Academy Securities
Steve Grasso — Trader
Jose Torres — Chief Economist, Interactive Brokers; Visiting Professor, CUNY

Summary

The panel discusses AI pricing pressure from cheap Chinese compute and falling token costs, cooling core inflation, and the likelihood of Fed cuts. Steve Grasso defends buying SPACE after a short-squeeze, while Jose Torres expects long-dated Treasury yields to fall. Geopolitical risks are seen as contained, especially for oil.

  • Peter Tchir warns cheap Chinese compute is an underpriced threat to the AI trade.
  • Steve Grasso is a SPACE shareholder and would buy on the short-covering unlock setup.
  • Jose Torres sees core CPI as tame and 20/30-year Treasury bonds as a long opportunity.
  • Jose Torres links lower long-end rates to continued AI momentum.
  • Peter Tchir expects Gulf oil status quo without full Strait of Hormuz disruption.
  • The group sees Fed hikes as unlikely and cuts possible by year-end.
Ideas
Peter Tchir Head of Macro Strategy, Academy Securities 0:42
Cheap Chinese compute is underappreciated risk.
Peter is worried that China's ability to flood the market with cheap Chinese compute is not fully priced in; China has energy and electricity cost advantages, may distill models using US AI to train more cheaply, and that threatens the economics and national security of US AI/compute.
AI compute MED
Steve Grasso Trader 2:36
Buy SPACE after short-covering unlock.
Steve says he owns SPACE and would be a buyer here; the feared unlock turned into a short-covering spike, and because everyone was positioned for a collapse, shorts and high-beta names were forced to cover, with SPACE as the catalyst.
SPACE HIGH
Jose Torres Chief Economist, Interactive Brokers; Visiting Professor, CUNY 3:50
Long-dated Treasuries rally on cool inflation.
Jose argues tame core CPI versus headline CPI shows geopolitical conditions are masking inflation progress; with core CPI at 2.5%, long-end rates should come in a lot, and the 20-year and 30-year Treasury bonds should trade around 4.80% and 4.70%.
20-year Treasury bond 30-year Treasury bond HIGH
Jose Torres Chief Economist, Interactive Brokers; Visiting Professor, CUNY 4:04
Lower rates support AI momentum.
Jose says there is a lot of opportunity for continued investor enthusiasm in AI if long-end rates come down, linking cooling inflation and lower yields to a re-ignition of the AI trade.
AI trade LOW
Peter Tchir Head of Macro Strategy, Academy Securities 6:28
Oil rangebound on geopolitical status quo.
Peter expects a geopolitical status quo in the Gulf: no major deal and no return to full disruption, with some oil flowing and prices bouncing around rather than spiking or collapsing.
WTI LOW
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This CNBC video, published August 13, 2026, features Peter Tchir, Steve Grasso, Jose Torres discussing AI compute, SPACE, 20-year Treasury bond, 30-year Treasury bond, AI trade, WTI. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Peter Tchir, Steve Grasso, Jose Torres  · Tickers: AI compute, SPACE, 20-year Treasury bond, 30-year Treasury bond, AI trade, WTI