Ben and Tom discuss Oracle&#x27;s 8% drop on a $40 billion capital raise plan and CapEx ballooning to $90-95 billion against just 6% EPS growth, the ECB hiking rates for the first time since 2023 to 2.25% into a sagging expansion, today&#x27;s PPI print and 30-year auction, Rick Rieder&#x27;s case for Fed cuts and fixed-income opportunities, OpenAI weighing drastic token price cuts to fend off Anthropic, and why Google&#x27;s equity-funded AI buildout raises real questions about ROIC. Join our live YouTube stream Monday through Friday at 8:30 AM EST: http://www.youtube.com/@TheMorningMarketBriefing Please see disclosures: https://www.narwhal.com/disclosure

Oracle Tanks 8% on $90B CapEx Blowout + ECB Hikes for First Time Since 2023 | June 11, 2026 – Morning Market Briefing

The Morning Market Briefing

# Full Transcript

**Podcast:** The Morning Market Briefing

## Participants

- **Ben** (Narwhal Capital Management)
- **Tom** (Narwhal Capital Management)
- **Ryan** ()
- **Moe** ()

## Transcript

Good morning, welcome to the Morning Market Briefing. Today is Thursday, June 11, 2026. We're going to be talking more inflation data today. I had the good opportunity along with Thomas, who's been on the call, Ryan, Tom's protege on the fixed income side, and Moe on the analyst side. We all went to the Rick Rieder, the head of BlackRock's fixed income. He manages.

It's $2.5 trillion. And so we have some takeaways from that. I also want to talk a little bit about some of the equity issuance that's been going along and why I do think it's significant that they're issuing equity and not debt. And so we'll talk about Oracle as well in connection with that. And then finally, I'll give just a few thoughts on the World Cup, which I'm sure is going to be very interesting to my co-host today, Tom.

But let's start, Tom. The ECB is hiking rates into a slowdown. And Rick Reeder yesterday said European bonds are the best place that he wants to buy right now because it's priced for three rate hikes. He says there's no way they're going to have three rate hikes. They're going to have to cut rates.

This was an entity, economic entity that had negative rates for nine years. They're not going to be able to absorb higher interest costs. It's already slowing the economy and they're just going to have to cut. So he actually thinks that European bonds are attractive because he's like, it's priced for three rate hikes. They're going to have to cut. And we've already got one hike today. So thoughts on that. And then we'll talk about producer price inflation.

I mean, I think it's hard to really understand where the ECB is because. Traditionally, you would hike rates if you had too much growth or too much inflation and they've got not enough of one and too much of the other. And like here, it's mostly driven right now by energy costs. But the problem is, if that goes away, then they're going to have made a policy error, in my opinion. I mean, I don't disagree. We talked about it a couple of times on the call.

At what point do we try and start buying some UK gilts, which is their version of the 10-year? Because there have been virtually no times in my career where you could get more on a 10-year gilt than you can get on a 10-year treasury for this reason. I mean, think about at one point during 2022, before the rate hike cycle began, I think it was like 60% of all the bonds in the world were at negative yields.

And the only way to make money on a negative yielding bond is if you sell it to someone at an even more negative yield. And now we've had this massive reflation where all of these countries are suddenly at levels where, on a relative value, they are now cheaper than U.S. bonds. Which should be the case, honestly, because they are of a lower credit quality, lower g...

Oracle Tanks 8% on $90B CapEx Blowout + ECB Hikes for First Time Since 2023 | June 11, 2026 – Morning Market Briefing

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Oracle Tanks 8% on $90B CapEx Blowout + ECB Hikes for First Time Since 2023 | June 11, 2026 – Morning Market Briefing

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.