Partial Shutdown Drags on Over DHS Funding | Balance of Show 02/17/2026
Watch on YouTube ↗  |  February 18, 2026 at 00:57 UTC  |  47:53  |  Bloomberg Markets
Speakers
Joe Mathieu — Host, Bloomberg "Balance of Power"
Kailey Leinz — Host, Bloomberg "Balance of Power"
Kate Sullivan — Reporter, Bloomberg (White House)
Rep. Raja Krishnamoorthi — U.S. Congressman (D-IL)
Romaine Bostick — Anchor, Bloomberg
Ken Cuccinelli — Former Acting Deputy Secretary, DHS
Jim Mussina — Democratic Strategist
Ed Ludlow — Co-Host, Bloomberg Technology
Nikesh Arora — CEO, Palo Alto Networks
Megan Hayes — Democratic Strategist
Greta Joins — Republican Strategist

Summary

  • DHS Funding Impasse: The US government is in day four of a partial shutdown affecting the Department of Homeland Security. Negotiations are stalled over Democratic demands for ICE reforms (unmasking agents, judicial warrants) versus Republican refusal to hamper enforcement operations.
  • Geopolitical De-escalation: Constructive talks between the US and Iran regarding nuclear capabilities are removing the "geopolitical premium" from oil markets, pushing WTI crude down to ~$62/barrel.
  • Tech Sector Bifurcation: A clear divide is emerging in tech. While AI infrastructure remains a focus, the broader software sector is in a "deep bear market" due to fears of AI disruption.
  • Media M&A Hostility: The battle for Paramount Global has escalated, with Skydance declaring "war" on the competing bid from Warner Bros. Discovery, driving volatility and a 5% bump in Paramount shares.
  • NYC Fiscal Strain: New York City is proposing significant property tax hikes on high earners and businesses to close budget gaps, signaling headwinds for the local real estate market.
Trade Ideas
Ticker Direction Speaker Thesis Time
AVOID Romaine Bostick
Anchor, Bloomberg
The ETF tracking software stocks has been "deep in a bear market for weeks." Investors are paralyzed by questions about AI disruption—specifically, which legacy software companies will be displaced by AI agents versus which will adapt. Until winners/losers are clearer, capital is fleeing the broad sector. AVOID. The trend is currently negative with no immediate catalyst for reversal. Oversold bounce; sudden clarity on AI monetization for SaaS companies.
WTI
NEUTRAL Romaine Bostick
Anchor, Bloomberg
Oil prices spiked earlier in February on fears of US-Iran conflict, but have since cooled to ~$62 as reports emerge of "constructive talks" and military options being taken off the table. The "geopolitical premium" is being priced out. Without an active escalation or supply disruption, the fundamental demand picture (which is softer) takes over, capping upside. NEUTRAL / WATCH. The trade is to fade the war fear, but the price has already adjusted significantly. Sudden collapse in talks; Israel/Iran escalation independent of US talks. 16:08
LONG Nikesh Arora
CEO, Palo Alto Networks
Palo Alto Networks stock fell on earnings/guidance. However, CEO Arora states they beat consensus metrics and argues the market "hasn't figured out" their guidance model, specifically regarding the integration of "CyberArk" and new acquisitions like "Chromosphere" (AI observability). The market is punishing the stock based on a misunderstanding of ARR (Annual Recurring Revenue) calculation conservatism compared to peers. The acquisition of an "observability" platform for LLMs positions them to capture the "Agentic AI" security market, a critical next step for hyperscalers. LONG. The sell-off presents a buying opportunity if the CEO's claim about the "misunderstood guidance" proves true and the AI security thesis plays out. Continued market skepticism regarding software spending; failure to integrate new acquisitions effectively.
LONG Romaine Bostick
Anchor, Bloomberg
Paramount Skydance explicitly stated "it is war" regarding the competing bid from Warner Bros. Discovery, asking shareholders for an extension to fight the WBD bid. Paramount shares jumped 5% on the news. Hostile bidding wars typically result in premium pricing for the target asset (Paramount) as suitors are forced to sweeten deals to win shareholder approval. LONG (specifically PARA as the target). Deal collapse; regulatory intervention blocking consolidation. 15:36
SHORT Joe Mathieu
Host, Bloomberg Radio
NYC Mayor is proposing a significant increase in property taxes on "high income earners and businesses" to close a budget gap. Increasing carrying costs for commercial and high-end residential real estate in a city already struggling with occupancy (commercial) and migration (residential) will further depress asset values and net operating income (NOI) for landlords. SHORT. Fiscal desperation leads to policy errors that hurt asset prices. Proposal fails to pass in state legislature; federal bailout/assistance.