NASDAQ under pressure on Oracle earnings report. Discussing Fed participants seeing downside to GDP - number down to eight, showing constructive view for 2026.
CNBC Anchor
Joyce Chang
Fed revised forecasts show 0.8% higher growth looking to 2028, signaling supply-side productivity improvements coming through. Not the hawkish cut some expected.
Where does that leave us on rate trajectory given number who don't see any change next year?
CNBC Anchor
Joyce Chang
Fed made clear they've done 175 basis points since last September, very close to neutral territory now. Still have one cut for January due to some labor market weakness concerns.
What does this mean for emerging markets which you like?
CNBC Anchor
Joyce Chang
Emerging markets finally having comeback year after 14 straight years of underperformance until dollar strengthened. First year in four consecutive years seeing inflows into emerging markets.
Do any countries or regions stand out? We know what country ETFs have outperformed this year.
CNBC Anchor
Joyce Chang
China tech stands out for same AI themes driving US market. Focus on Latin America due to heavy election year and higher carry. India continues in market focus after underperformance.
For emerging markets, always either Fed or political situation, but now AI story introduced new layer - look at Korean market, Taiwan market.
CNBC Anchor
Joyce Chang
Korea overweight, China overweight - 33% of EM equities have AI component. Fiscal deficits in emerging markets lower than in developed markets.
Fissures between US and Europe - negative or does it mean they'll become more self-reliant, take more debt, invest in defense? Market positive?
CNBC Anchor
Joyce Chang
US national security strategy looking for Europe to take more ownership on defense. Germany raised fiscal spending with German growth up full percentage point for 2026.