
Market Drawdown Vs. Downturn: Watch The Fundamentals
Market drawdowns have often reflected policy uncertainty, but they don't necessarily signal the end of a market cycle. A meaningful downturn typically requires deteriorating fundamentals.
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Market drawdowns have often reflected policy uncertainty, but they don't necessarily signal the end of a market cycle. A meaningful downturn typically requires deteriorating fundamentals.

Anthropic PBC and OpenAI will have to weigh their calls to tap the brakes on artificial intelligence development against forces in the tech industry, financial markets and the Trump administration. Parmy Olson, Bloomberg Opinion tech columnist, discusses the impact of recent calls from big tech bosses to rein in the pursuit of cutting-edge AI models.

Odds of more interest rate hikes coming this year have grown.

Anthropic CEO Dario Amodei is calling for “pacing” at the AI frontier to give safety measures more time to catch up with increasingly capable models. OpenAI's Sam Altman and xAI's Elon Musk have broadly backed the idea, though there are no commitments to stop training runs or reduce spending, and questions remain over what a slowdown would actually mean.

President Donald Trump's policies are a big reason the Federal Reserve, led by his appointee Kevin Warsh, has to consider a rate increase this week. Re-escalating tariff battles and a persistent Iran conflict have both resulted in sharp changes to the inflation outlook and may no longer be able to be dismissed as one-off supply shocks.

The Federal Reserve faces mounting pressure to hike interest rates this week to tame elevated inflation, putting Chairman Kevin Warsh on a collision course with US President Donald Trump, who has repeatedly pressed the central bank to slash rates. Bloomberg MLIV's Mark Cranfield previews Wednesday's decision, and also what to expect from the Bank of England and Bank of Japan.

Digital asset ETFs and ETPs shed roughly US$100M within hours of Kevin Warsh speaking on Friday, September 4, then took in US$1B across the four sessions since. Set that beside US$2B and US$2.9B in the two preceding weeks, the best of the year, and the shape tells you more than any single figure.

Private equity firm Vista Equity Partners is exploring strategic options for Finastra which could include a potential sale of the software provider focused on financial institutions, four people familiar with the matter said.

Fed funds futures price an ~88% chance of a 25 bps hike. The move is already largely priced in.

Rapidan Energy CEO Scott Modell joins 'Squawk on the Street' to discuss how the Saudi East-West pipeline shutdown could affect oil prices, how geopolitical tensions are disrupting the oil market, and more.

Trump just caved on the ethics fight over the Clarity Act. The Senate takes its first real vote on the Clarity Act tomorrow, and Trump has conceded about 80% of the ethics limits he spent months resisting, including letting state attorneys general enforce them.

The escalating Middle East conflict is driving a significant surge in global energy and commodity prices. Drone and missile technology has increased the vulnerability of military and energy infrastructure, creating sustained supply risks.

The Fed is expected to begin raising rates this week, shifting the market into a more restrictive policy environment and increasing the credibility of bearish narratives around rates, inflation and slowing growth. Higher long-term rates are a global trend, while rising diesel and energy prices could keep inflation elevated, pressure corporate margins and make the Fed's job more difficult.

@CharlesSchwab's Kevin Gordon notes that the last time crude oil touched $105, a sharp downturn began in the commodity's price action. He sees a different story for crude today.

Definium Therapeutics advances the case for medical LSD after reporting positive late-stage trial data for its experimental drug, DT120.