1 00:00:00,120 --> 00:00:02,440 Speaker 1: Andrew Curtain Mulford Acid Management is with us. 2 00:00:02,480 --> 00:00:05,080 Speaker 2: Hey, Andrew hid In Heather, how are you. 3 00:00:05,160 --> 00:00:07,400 Speaker 1: I'm very well, thank you. I'd imagine that the global 4 00:00:07,440 --> 00:00:09,440 Speaker 1: markets are pretty focused on what's happening with the Fed 5 00:00:09,440 --> 00:00:10,160 Speaker 1: Reserve this week. 6 00:00:10,200 --> 00:00:14,440 Speaker 3: Yeah, Yeah, lots going on because we had Jackson Hole, 7 00:00:14,480 --> 00:00:17,720 Speaker 3: which was HOWLD Friday and over the weekend, and key 8 00:00:17,720 --> 00:00:20,360 Speaker 3: message coming out of that was that power was getting 9 00:00:21,000 --> 00:00:24,680 Speaker 3: more inclined to cut interest rates in the US next month. 10 00:00:24,840 --> 00:00:27,159 Speaker 3: So Marc's been reacting a little bit to that. We 11 00:00:27,240 --> 00:00:30,160 Speaker 3: saw an inequity rally of a couple was at one 12 00:00:30,200 --> 00:00:33,440 Speaker 3: and a half percent on Friday night from that. But 13 00:00:33,479 --> 00:00:36,120 Speaker 3: the big news really on Monday was Trump came out 14 00:00:36,159 --> 00:00:38,519 Speaker 3: with quite a big surprise when he said he was 15 00:00:38,560 --> 00:00:42,720 Speaker 3: going to fire the Federal Reserve board member Lisa Cook. 16 00:00:43,760 --> 00:00:45,680 Speaker 3: So this is really created a lot of noise about 17 00:00:45,720 --> 00:00:48,280 Speaker 3: the independence of the Federal Reserve, which is meant to 18 00:00:48,280 --> 00:00:52,800 Speaker 3: be separate from the Trump administration and the US government. Yes, 19 00:00:52,880 --> 00:00:54,920 Speaker 3: so we'll see how that plays out over the rest 20 00:00:54,920 --> 00:00:55,320 Speaker 3: of the week. 21 00:00:55,800 --> 00:00:58,080 Speaker 1: Now, Trump has been very vocal and wanting to lower 22 00:00:58,080 --> 00:01:00,440 Speaker 1: the interest rates. Does getting rid of Lisa Cook actually 23 00:01:00,520 --> 00:01:01,120 Speaker 1: achieve this? 24 00:01:03,160 --> 00:01:06,440 Speaker 2: It does move things in his favor. 25 00:01:06,520 --> 00:01:10,800 Speaker 3: So the Fed works by a vote by twelve board members, 26 00:01:10,959 --> 00:01:13,319 Speaker 3: and if twelve boar members vote to cut interest rates, 27 00:01:13,319 --> 00:01:17,480 Speaker 3: then they cut interest rates. Now, Lisa Cook has been 28 00:01:17,680 --> 00:01:20,679 Speaker 3: against cutting interest rates, so she's not aligned with what 29 00:01:20,720 --> 00:01:21,440 Speaker 3: Trump wants. 30 00:01:22,000 --> 00:01:23,319 Speaker 2: If he removes. 31 00:01:22,880 --> 00:01:26,600 Speaker 3: Her, he will likely appoint someone who would be favorable 32 00:01:26,640 --> 00:01:29,440 Speaker 3: to him and will be aligned with cutting interest rates. 33 00:01:29,480 --> 00:01:31,720 Speaker 3: Now he can propose someone and then it gets voted 34 00:01:31,760 --> 00:01:35,520 Speaker 3: through by the Senate, which he has essential de facto 35 00:01:35,640 --> 00:01:39,959 Speaker 3: control over, so he can push things through in his favor. 36 00:01:40,800 --> 00:01:43,960 Speaker 1: And does he actually have the power to fire her. 37 00:01:44,640 --> 00:01:46,199 Speaker 2: Yeah, this is where it gets tricky. 38 00:01:46,280 --> 00:01:49,800 Speaker 3: So the Federal Reserve is independent from the government, so 39 00:01:50,360 --> 00:01:54,400 Speaker 3: Lisa Cook does not report or work for Donald Trump. 40 00:01:55,320 --> 00:01:58,200 Speaker 3: What he is trying to do is he's found an 41 00:01:58,240 --> 00:02:04,480 Speaker 3: angle whereby the leeging that Lisa Cook has essentially conducted 42 00:02:05,040 --> 00:02:07,080 Speaker 3: mortgage fraud back in nowther it was twenty one or 43 00:02:07,080 --> 00:02:11,079 Speaker 3: twenty two before she was a FED governor, if they 44 00:02:11,080 --> 00:02:14,320 Speaker 3: can make a case whereby this means. 45 00:02:14,080 --> 00:02:15,400 Speaker 2: She's not fit for the job. 46 00:02:16,040 --> 00:02:19,280 Speaker 3: Essentially, if you've done mortgage fraud and you're in a 47 00:02:19,360 --> 00:02:21,920 Speaker 3: job which is sort of controlling your influencing interest rates 48 00:02:21,919 --> 00:02:24,000 Speaker 3: it's not a great look, then he may have a 49 00:02:24,040 --> 00:02:24,720 Speaker 3: case to remove it. 50 00:02:24,840 --> 00:02:26,720 Speaker 2: However, this is likely going to have to go to 51 00:02:26,760 --> 00:02:27,320 Speaker 2: the courts. 52 00:02:27,600 --> 00:02:30,320 Speaker 3: Both Trump and Lisa Cook have said they were waiting 53 00:02:30,360 --> 00:02:32,679 Speaker 3: to see what courts will say, and the feed have 54 00:02:32,760 --> 00:02:36,000 Speaker 3: said they were also appined by whatever the courts say. 55 00:02:36,120 --> 00:02:38,000 Speaker 3: So look, it feels like a little bit of a 56 00:02:38,000 --> 00:02:39,600 Speaker 3: long shot at the moment, but they may have a 57 00:02:39,639 --> 00:02:40,600 Speaker 3: potential avenue here. 58 00:02:40,800 --> 00:02:43,680 Speaker 1: Interesting. Okay, now listen, we've got the Nvidia results tomorrow. 59 00:02:43,720 --> 00:02:44,560 Speaker 1: What are we expecting. 60 00:02:46,400 --> 00:02:48,000 Speaker 3: Well, it's going to have to be a strong result 61 00:02:48,000 --> 00:02:50,840 Speaker 3: because nobody has rallied about one hundred and ten percent 62 00:02:50,880 --> 00:02:53,840 Speaker 3: since the recent loads of its share price in April, 63 00:02:53,880 --> 00:02:57,320 Speaker 3: so the market's clearly expecting some big numbers. What the 64 00:02:57,680 --> 00:03:00,040 Speaker 3: sort of the consensus out there is for revenue and 65 00:03:00,160 --> 00:03:03,000 Speaker 3: earnie is to grow around about fifty percent year on year, 66 00:03:03,240 --> 00:03:08,160 Speaker 3: So that reflects incredibly strong demand for Navidia's AI chips. 67 00:03:09,560 --> 00:03:11,960 Speaker 3: It looks like they're going to have you know, they 68 00:03:12,000 --> 00:03:14,320 Speaker 3: should have decent numbers. The problem when you have such 69 00:03:14,360 --> 00:03:17,480 Speaker 3: a strong share price move over the last few months 70 00:03:17,560 --> 00:03:20,119 Speaker 3: is that a little miss on these expectations can send 71 00:03:20,160 --> 00:03:23,760 Speaker 3: the share price down However, our sort of base. 72 00:03:23,639 --> 00:03:25,519 Speaker 2: Cases that should should have decent numbers. 73 00:03:25,560 --> 00:03:26,960 Speaker 3: I mean, if you look at what's been going on 74 00:03:27,440 --> 00:03:30,000 Speaker 3: in the AI space over the last few months, it's 75 00:03:30,040 --> 00:03:32,600 Speaker 3: all about more and more spending. All the largest companies 76 00:03:32,600 --> 00:03:36,200 Speaker 3: in the world, such as Microsoft and Amazon, Meta, Google, 77 00:03:36,240 --> 00:03:38,360 Speaker 3: have been spending more and more money on AI, which 78 00:03:38,440 --> 00:03:41,240 Speaker 3: essentially means they're spending more money on the video chips. 79 00:03:41,280 --> 00:03:44,360 Speaker 3: So we expect the demand drove backdrop to be favorable 80 00:03:44,480 --> 00:03:48,320 Speaker 3: enough that we shouldn't see too many surprises coming other results, however, Yeah, 81 00:03:48,360 --> 00:03:50,280 Speaker 3: it is n video and the SHEHAP price tends to 82 00:03:50,280 --> 00:03:52,200 Speaker 3: be quite volatile, so we'll see how it goes. 83 00:03:52,320 --> 00:03:54,760 Speaker 1: Thanks for talking us through to appreciated Andrew Andrew Curtain, 84 00:03:55,160 --> 00:03:56,400 Speaker 1: Milford Asset Management. 85 00:03:56,960 --> 00:04:00,200 Speaker 3: For more from Heather Duplessy Allen Drive, listen live to 86 00:04:00,280 --> 00:04:03,280 Speaker 3: news talks. It'd be from four pm weekdays, or follow 87 00:04:03,320 --> 00:04:05,080 Speaker 3: the podcast on iHeartRadio.