Name: Markets Brace for First US Fed Hike Since 2023
Uploaded: 2026-09-16T06:51:48+00:00
Duration: 2824 s

Speakers

Ven Ram — Markets Live Reporter/Strategist, Bloomberg

Luis Garicano — Executive Director, Rhine Group; Professor, London School of Economics

Avril Hong — Reporter, Bloomberg Markets

Matt Bloxham — Head of Research, The Block

Stephen Engle — Chief North Asian Correspondent, Bloomberg

Hayley McKelvey — Chief AI Officer, Deloitte UK

Oliver Crook — Chief European Correspondent, Bloomberg

Summary

The video covers markets awaiting the first Fed rate hike in over three years, with bond traders positioned bearishly and Treasury yields near multi-decade highs. It also discusses AI developments including OpenAI's funding talks, AI safety debates, and U.K. AI adoption, plus U.S.-China trade talks and European political and competitiveness issues ahead of von der Leyen's State of the Union. Luis Garicano argues Europe needs permitting reform and a data center buildout to capture AI implementation despite missing frontier models.

Markets brace for the Fed rate decision with 10-year Treasury yields near 5%.
Bond traders are positioned for a further Treasury selloff.
OpenAI is reportedly in talks for funding at a $1.2 trillion valuation, delaying its IPO.
U.S.-China officials meet ahead of a possible Trump-Xi summit.
German Chancellor Merz cancels a UN trip amid party rebellion and regional elections.
EU awaits von der Leyen's State of the Union speech.
Luis Garicano says Europe needs a huge data center investment push and permitting reform.
UK inflation and the Bank of England decision remain in focus.

Ideas

Ven Ram Markets Live Reporter/Strategist, Bloomberg 6:23

Higher term premium pressures longer-dated Treasuries.

Ven Ram argues the Fed needs to reestablish credibility on inflation, but the summary of economic projections assumes core PCE falls to 2.5% without meaningful rate hikes, which is unrealistic; inflation will not fall unless aggregate demand is curbed. If the Fed signals only a hike-and-hold, markets will sell off more, and investors will demand a higher term premium to hold longer-dated bonds, extending the Treasury selloff.

Luis Garicano Executive Director, Rhine Group; Professor, London School of Economics 33:45

Europe can lead in AI implementation.

Luis Garicano argues Europe has lost the race for frontier AI models but can still lead in AI implementation because its companies have excellent data in machinery and health and large public-sector data sets. If Europe builds the necessary data infrastructure and reforms regulation, these sectors can be leaders in applying AI.

Luis Garicano Executive Director, Rhine Group; Professor, London School of Economics 34:24

Europe needs massive data-center investment push.

Luis Garicano says Europe lacks the data centers needed to process and implement AI, and restrictive regulation plus slow permitting make it hard to build them. He argues Europe needs a real, huge investment push to build data centers and energy infrastructure, making European data center buildout a necessary and attractive investment theme if permitting reforms occur.

This Bloomberg Markets video, published September 16, 2026, features Ven Ram, Luis Garicano discussing Longer-dated US Treasuries, AI-SECTOR, European data centers. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Ven Ram, Luis Garicano · Tickers: Longer-dated US Treasuries, AI-SECTOR, European data centers

Markets Brace for First US Fed Hike Since 2023

Summary

Ideas

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