Democratic Socialists Hit Wisconsin Wall | Radio Balance of Power: Early Edition 8/12/2026

Watch on YouTube ↗  |  August 12, 2026 at 19:39  |  47:57  |  Bloomberg Markets
Speakers
Bryan Steil — U.S. Representative (R-Wisconsin)
Christopher Smart — Managing Partner, Arbroath Group
Charlie Pellett — Anchor/Reporter, Bloomberg
Kailey Leinz — Bloomberg Reporter
Rick Davis — Republican Strategist, Partner at Stonecourt Capital

Summary

Bloomberg's Balance of Power covers U.S. primary results with Wisconsin's Democratic socialist Francesca Hong narrowly losing to David Crowley, plus broader anti-incumbency and Trump endorsement themes. Market updates show stocks and bonds rising after an in-line CPI report, with semiconductor and AI names moving. Christopher Smart discusses persistent Strait of Hormuz commodity supply risk, AI data center spending, and why yen intervention has failed to hold USD/JPY lower.

  • Wisconsin Democratic primary: Francesca Hong loses narrowly to David Crowley despite leading polls and prediction markets.
  • Strait of Hormuz standoff continues with oil prices slightly lower but supply risk for oil, gas, and aluminum seen persisting.
  • In-line CPI data boosts stocks and bonds and eases near-term Federal Reserve rate hike concerns.
  • Rep. Bryan Steil says Senate floor time for the CLARITY Act is positive for U.S. digital asset leadership.
  • Christopher Smart cautions AI data center buildout may be overdone but says national security and government support will keep spending going.
  • Christopher Smart argues U.S.-Japan yen intervention only flushed out shorts; USD/JPY is back near 160 and yen shorts may resume.
  • Political panel sees anti-incumbency and generational change as primary trends.
  • Beige Book signs show a K-shaped economy with lower-income household stress.
Ideas
Bryan Steil U.S. Representative (R-Wisconsin) 15:24
U.S. digital asset legislation is bullish.
The CLARITY Act digital asset market structure bill getting Senate floor time is a positive catalyst because the U.S. needs to remain the world leader in financial markets, especially digital assets, protect consumers, foster innovation, and outcompete China.
BITO MED
Christopher Smart Managing Partner, Arbroath Group 38:02
Commodity supply uncertainty will persist.
Even if a Gulf deal is struck, the conflict and uncertainty will persist, leaving markets to live with uncertain supply of oil, natural gas, aluminum and other key commodities for a long time.
WTI UNG HIGH
Christopher Smart Managing Partner, Arbroath Group 42:28
AI spend persists despite overbuild worry.
Massive AI data center buildout may be overdone with revenue and profit pushed into the future, but AI has become a central pillar of U.S. national security policy, so no government will allow the train to slow down soon and AI spending will outlive this administration.
SKYY HIGH
Christopher Smart Managing Partner, Arbroath Group 46:02
Yen intervention failed; USD/JPY resumes.
The U.S.-Japan intervention only temporarily flushed out yen shorts and has not narrowed U.S.-Japanese rate differentials, so the exchange rate is back near 160 and yen shorts are likely to resume; Japan's role as the largest U.S. Treasury holder adds risk if it turns seller.
USD/JPY HIGH
Up Next
1:23:45
Researchers Hired North Korean Hackers on Purpose
Unchained (Chopping Block) · Aug 12
6:47
Ancora Comfortable With Its Offer for H.B. Fuller Unit
Bloomberg Markets · Aug 12
13:19
Sweetgreen CEO Says Cyclospora Hurt Sales
Bloomberg Markets · Aug 12
26:19
Solana Usage Is Exploding... When Will SOL Follow?
Milk Road Macro · Aug 12
8:59
Hong, Crowley 'Two Sides of the Same Coin' Says Republican Rep. Steil
Bloomberg Markets · Aug 12

This Bloomberg Markets video, published August 12, 2026, features Bryan Steil, Christopher Smart discussing BITO, WTI, UNG, SKYY, USD/JPY. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Bryan Steil, Christopher Smart  · Tickers: BITO, WTI, UNG, SKYY, USD/JPY