Clock Ticks Down to Partial Shutdown Deadline | Balance of Show 02/13/2026
Watch on YouTube ↗  |  February 14, 2026 at 01:04 UTC  |  47:55  |  Bloomberg Markets
Speakers
Kailey Leinz — Anchor, Bloomberg TV
Joe Mathieu — Anchor, Bloomberg TV
Sen. Mark Kelly — US Senator (D-AZ)
Sen. Thom Tillis — US Senator (R-NC)
Megan Scully — Bloomberg Government Reporter
Oliver Crook — Bloomberg Reporter
Beacon Global Strategies Managing Director — Guest Analyst (Former Special Assistant to George W. Bush)

Summary

  • Macro/Inflation: Feb 2026 CPI data came in cooler than expected, causing Treasury yields to fall (2-year at 3.4%) and fueling expectations for more Fed rate cuts.
  • Precious Metals Super-Cycle: Gold has topped $5,000/oz and Silver is trading around $77/oz, driven by falling yields and geopolitical instability.
  • Geopolitics (Iran): The US is redeploying an aircraft carrier to the Middle East. Analysts predict a high probability of a second kinetic strike against Iran, targeting ballistic missile sites or regime infrastructure.
  • China Tech Volatility: The Pentagon added (then abruptly withdrew) Alibaba and Baidu from a list of companies aiding the Chinese military, creating massive regulatory uncertainty.
  • Domestic Policy: A partial government shutdown regarding DHS/ICE funding is imminent. Meanwhile, ICE is planning a massive expansion of detention centers (acquiring 8 large sites), which implies significant government contracting for detention infrastructure.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Joe Mathieu
Host, Bloomberg Radio
"Gold is up more than 2% today. Topping the $5,000 level... Silver at about $77 per ounce." Treasury yields (2-year) fell to 3.4% on cool CPI data. The inverse correlation between real rates and precious metals is driving a historic breakout. Lower yields reduce the opportunity cost of holding non-yielding assets like gold. The breakout above $5,000 signals strong momentum. LONG. The macro environment (falling yields + geopolitical fear) is the perfect storm for metals. A resurgence in inflation data forcing the Fed to hold rates higher for longer. 19:42
AVOID Kailey Leinz
Bloomberg Reporter
"The Pentagon added Alibaba, Baidu, and others to a list of... companies that aid the Chinese military only to pull it later." Even though the list was withdrawn, the "indecision" signals that these companies are in the crosshairs of US Defense policy. Institutional capital cannot safely hold assets that are at risk of immediate sanctions or forced divestment by the Pentagon. AVOID. The regulatory overhang is too dangerous despite valuation. US-China relations thaw unexpectedly, leading to a relief rally.
SHORT Reporters Amazon is on its "longest losing streak... in 20 years." The company is projecting "$200 billion being spent on CapEx." Investors are rejecting the capital intensity of the current strategy. A $200B CapEx spend implies massive cash burn without guaranteed immediate ROI, compressing free cash flow margins in the near term. SHORT. Sentiment has broken due to capital discipline concerns. The CapEx leads to an immediate breakthrough in AI/Cloud dominance that justifies the spend. 20:21
GEO /CXW
LONG Joe Mathieu
Host, Bloomberg Radio
ICE is planning a "sweeping expansion" called the "Detention Reengineering Initiative." They plan to acquire/renovate "eight large-scale detention centers" and take control of "turnkey facilities." The government does not build these facilities overnight; they contract them. Private prison operators (GEO Group, CoreCivic) own the "turnkey facilities" and have the capacity to manage large-scale detention centers immediately. This is a direct revenue injection for the private detention sector. LONG. The specific mention of "turnkey facilities" points directly to existing private operators. Political blockage of funding (Shutdown) or executive orders banning private prisons (unlikely under the current administration described).
LONG Beacon Global Strategies Managing Director
Guest Analyst (Former Special Assistant to George W. Bush)
The analyst states regarding a strike on Iran: "I think we will do it again... President has already said that he is painted into a corner... I think he will hit... ballistic missile sites." A kinetic strike on Iran, specifically targeting missile sites, guarantees a geopolitical risk premium. This benefits defense contractors (replacing munitions) and drives oil prices higher due to Strait of Hormuz fears. LONG. War positioning is required given the "locked and loaded" rhetoric. Diplomatic de-escalation or the administration bluffing to force a deal.