PIMCO CEO Manny Roman Talks Markets, AI, Rate Outlook | Bloomberg Talks

US midterm elections, central bank policy, and global investment strategies define the current market landscape. PIMCO CEO Manny Roman emphasizes that while political uncertainty exists, market interest rates are primarily driven by geopolitical tensions and energy dynamics rather than AI-related financing. The Federal Reserve is expected to implement one final rate hike this year, whereas European central banks face a more challenging outlook due to structural debt and low growth. Despite the emergence of alternative currencies, the US dollar remains the dominant reserve currency, limiting viable diversification options. PIMCO currently finds value in US sovereign curves, mortgage-backed securities, and structured finance, while maintaining a cautious stance on China due to low yields. Ultimately, long-term AI development is viewed as a deflationary force, though its immediate impact on labor markets remains complex and unpredictable.