1
00:00:02,400 --> 00:00:05,680
Speaker 1: Good morning. I'm Brian Curtiz and I'm Doug Prisner. Here

2
00:00:05,680 --> 00:00:07,320
Speaker 1: are the stories we're following today.

3
00:00:07,640 --> 00:00:11,400
Speaker 2: Fitch Rating saying that growing debt and deficit forecast key

4
00:00:11,720 --> 00:00:15,360
Speaker 2: in the decision to downgrade the US credit weight rating. Yesterday,

5
00:00:15,400 --> 00:00:17,960
Speaker 2: the company lowered the rating from Triple A to double

6
00:00:18,000 --> 00:00:21,840
Speaker 2: A plus. Here's Fitch co head of American Sovereigns Richard Francis.

7
00:00:22,000 --> 00:00:24,119
Speaker 3: We're just saying that we do not think that the

8
00:00:24,680 --> 00:00:31,360
Speaker 3: underlying business story and the governance is compatible with triple

9
00:00:31,400 --> 00:00:32,480
Speaker 3: A anymore.

10
00:00:33,680 --> 00:00:37,400
Speaker 2: Francis said that Fitch took into consideration the projected growth

11
00:00:37,400 --> 00:00:41,080
Speaker 2: in government debt as a percentage of GDP. The company

12
00:00:41,120 --> 00:00:44,159
Speaker 2: forecast that ratio to reach one hundred eighteen percent by

13
00:00:44,159 --> 00:00:46,560
Speaker 2: twenty twenty five, and that's more than two and a

14
00:00:46,600 --> 00:00:49,879
Speaker 2: half times the Triple A median of just thirty nine

15
00:00:49,920 --> 00:00:50,839
Speaker 2: point three percent.

16
00:00:51,240 --> 00:00:53,800
Speaker 1: At the same time, today, the US Treasury boosted the

17
00:00:53,840 --> 00:00:56,440
Speaker 1: size of its quarterly bond sales for the first time

18
00:00:56,520 --> 00:00:59,480
Speaker 1: in two and a half years. More from Bloombergs and Kates.

19
00:01:00,000 --> 00:01:02,600
Speaker 4: The Treasury will sell one hundred three billion dollars worth

20
00:01:02,640 --> 00:01:05,040
Speaker 4: of longer term securities to help finance a surge and

21
00:01:05,120 --> 00:01:08,720
Speaker 4: budget deficits. The increased spotlights the rising borrowing needs that

22
00:01:08,760 --> 00:01:11,800
Speaker 4: contributed to Fitch's decision to lower the US credit rating

23
00:01:11,840 --> 00:01:14,600
Speaker 4: by a notch from triple A to double A plus.

24
00:01:14,959 --> 00:01:17,520
Speaker 4: Officials at Treasury say Fitch's move will not change what

25
00:01:17,600 --> 00:01:21,200
Speaker 4: American and global investors know. That Treasury securities remain the

26
00:01:21,240 --> 00:01:24,200
Speaker 4: world's preeminent safe and liquid asset, and that the American

27
00:01:24,240 --> 00:01:28,400
Speaker 4: economy is fundamentally strong. In Washington and Kate's Bloomberg Day

28
00:01:28,400 --> 00:01:29,320
Speaker 4: Break Asia.

29
00:01:29,520 --> 00:01:32,520
Speaker 2: After the closing bill, we got a mixed report from Qualcomm,

30
00:01:32,600 --> 00:01:36,640
Speaker 2: the largest maker of semiconductors for mobile phones, and we

31
00:01:36,720 --> 00:01:39,399
Speaker 2: saw a big sell off in the stock price, down

32
00:01:39,480 --> 00:01:41,840
Speaker 2: six point eight percent in after hour. Let's take a

33
00:01:41,840 --> 00:01:44,680
Speaker 2: closer look here. The company reported third quarter earnings of

34
00:01:44,720 --> 00:01:48,080
Speaker 2: a dollar eighty seven a share, topping analyst estimates of

35
00:01:48,320 --> 00:01:51,480
Speaker 2: a dollar eighty one, but revenue was eight point four

36
00:01:51,520 --> 00:01:53,600
Speaker 2: to five billion. That was just short of the eight

37
00:01:53,640 --> 00:01:56,680
Speaker 2: point five to one billion that analysts had been forecasting.

38
00:01:56,920 --> 00:01:58,440
Speaker 2: More from Bloomberg's Tom Buzby.

39
00:01:58,640 --> 00:02:01,120
Speaker 5: The big takeaway, though, is that for handsets and the

40
00:02:01,160 --> 00:02:05,520
Speaker 5: processors that run them remains stubbornly weak, especially in China,

41
00:02:05,520 --> 00:02:08,560
Speaker 5: the world's biggest market for smartphones. Revenue for the fourth

42
00:02:08,600 --> 00:02:10,880
Speaker 5: quarter now forecast to be in a range of eight

43
00:02:10,880 --> 00:02:13,519
Speaker 5: point one to eight point nine billion, with the midpoint

44
00:02:13,639 --> 00:02:17,600
Speaker 5: below the average analyst estimate of eight point seventy nine billion.

45
00:02:18,120 --> 00:02:22,079
Speaker 5: Shares slipping lower in late trading tom buzzby Bloomberg Daybreak Asia.

46
00:02:22,120 --> 00:02:25,120
Speaker 1: Apple and Goldman Sachs say their new high Yield Savings

47
00:02:25,120 --> 00:02:28,520
Speaker 1: account has reached ten billion dollars in US deposits. We

48
00:02:28,560 --> 00:02:30,240
Speaker 1: have more from Bloomberg's Charlie Pellett.

49
00:02:30,680 --> 00:02:33,440
Speaker 6: It shows strength in the face of speculation that the

50
00:02:33,480 --> 00:02:36,560
Speaker 6: partners may be heading for a breakup. The iPhone maker

51
00:02:36,639 --> 00:02:40,239
Speaker 6: says since the service launched in April, ninety seven percent

52
00:02:40,280 --> 00:02:43,519
Speaker 6: of users have chosen to get their Apple Daily Cash,

53
00:02:43,600 --> 00:02:47,480
Speaker 6: a cash back reward program deposited into the account. The

54
00:02:47,520 --> 00:02:49,840
Speaker 6: savings account has built into the wall of app on

55
00:02:49,919 --> 00:02:53,519
Speaker 6: iPhones and allows users to transfer money in and out

56
00:02:53,639 --> 00:02:57,480
Speaker 6: like a traditional account, yielding four point one five percent

57
00:02:57,560 --> 00:03:00,960
Speaker 6: in interest. The announcement follows a wallst Journal report in

58
00:03:01,040 --> 00:03:05,239
Speaker 6: June the Goldman Sachs was considering exiting the Apple partnership

59
00:03:05,639 --> 00:03:09,639
Speaker 6: in New York. Charlie Pealett Bloomberg Daybreak Asia.

60
00:03:09,880 --> 00:03:13,400
Speaker 2: Well China has laid out new regulations to stop miners

61
00:03:13,400 --> 00:03:16,480
Speaker 2: from spending too much time on mobile phones. Bloomberg's Joan

62
00:03:16,600 --> 00:03:18,360
Speaker 2: Wong has the story from Hong Kong.

63
00:03:18,919 --> 00:03:21,720
Speaker 7: Children in China won't be allowed to access the Internet

64
00:03:21,800 --> 00:03:25,359
Speaker 7: from mobile devices from ten pm to six am. For

65
00:03:25,520 --> 00:03:28,240
Speaker 7: sixteen to eighteen year olds, They'll be restricted to a

66
00:03:28,280 --> 00:03:31,960
Speaker 7: maximum of two hours on their devices. China's big tech

67
00:03:32,000 --> 00:03:35,000
Speaker 7: companies ten Cent and byt Dance are among those hardest

68
00:03:35,080 --> 00:03:38,240
Speaker 7: hit by the measures. Since twenty twenty one, China has

69
00:03:38,240 --> 00:03:42,240
Speaker 7: pursued campaigns to alleviate online addiction among miners, but these

70
00:03:42,280 --> 00:03:45,040
Speaker 7: new restrictions are seen as a counter move to recent

71
00:03:45,080 --> 00:03:47,680
Speaker 7: steps of ething in the sector in Hong Kong. I'm

72
00:03:47,760 --> 00:03:49,360
Speaker 7: joined Wang Bloomberg Day Brigasia.

73
00:03:49,680 --> 00:03:52,480
Speaker 2: Well, I'm Brian Curtis along with Doug Christner, and we're

74
00:03:52,520 --> 00:03:56,400
Speaker 2: looking at a pretty sharply down day of equities and

75
00:03:56,480 --> 00:03:59,720
Speaker 2: I think, as you mentioned some citing the ramp up

76
00:03:59,720 --> 00:04:04,000
Speaker 2: in tra issuance and the hot ADP jobs report, others

77
00:04:04,040 --> 00:04:08,120
Speaker 2: would probably point to consolidation and the notion that we

78
00:04:08,160 --> 00:04:12,120
Speaker 2: had overbought conditions in the market and this was probably

79
00:04:12,120 --> 00:04:14,920
Speaker 2: a period where we had too much bully centiment. We'll

80
00:04:14,920 --> 00:04:17,160
Speaker 2: see if this is a dip that gets bought or

81
00:04:17,200 --> 00:04:19,480
Speaker 2: if indeed it really qualifies as a dip, because day

82
00:04:19,480 --> 00:04:21,400
Speaker 2: to day you just don't know whether or not the

83
00:04:21,440 --> 00:04:22,800
Speaker 2: mood is slightly changing.

84
00:04:22,960 --> 00:04:25,479
Speaker 1: Yeah, a lot of weakness and information technology within the

85
00:04:25,560 --> 00:04:28,080
Speaker 1: S and P. The entire group was down today by

86
00:04:28,120 --> 00:04:30,280
Speaker 1: around two point six percent, And Brian, you were kind

87
00:04:30,279 --> 00:04:32,440
Speaker 1: of alluding to this yesterday. There may be a little

88
00:04:32,440 --> 00:04:34,479
Speaker 1: bit of a silver lining here when it comes to

89
00:04:34,520 --> 00:04:37,960
Speaker 1: that downgrade by Fitch of the US debt rating, at

90
00:04:38,080 --> 00:04:41,920
Speaker 1: least for companies like Microsoft and Johnson and Johnson a

91
00:04:41,960 --> 00:04:45,720
Speaker 1: small group of companies that have credit ratings high or

92
00:04:45,760 --> 00:04:49,440
Speaker 1: as high as the US maybe they will benefit. Sovereign

93
00:04:49,480 --> 00:04:52,839
Speaker 1: bonds and portfolios could be replaced with these highly rated companies.

94
00:04:52,920 --> 00:04:54,800
Speaker 1: That was the case that we saw a few years

95
00:04:54,800 --> 00:04:57,520
Speaker 1: ago during the European sovereign debt crisis.

96
00:04:57,960 --> 00:05:01,400
Speaker 2: Yeah. Absolutely, there's a lot of mitigating factors here, a

97
00:05:01,440 --> 00:05:03,640
Speaker 2: lot of ways of looking at it and kind of

98
00:05:03,920 --> 00:05:07,200
Speaker 2: trying to see exactly what Fitch did and why the

99
00:05:07,320 --> 00:05:11,039
Speaker 2: impact has not been that great. And when you look

100
00:05:11,080 --> 00:05:14,680
Speaker 2: at a lot of triple A rated entities, if you're

101
00:05:14,720 --> 00:05:18,400
Speaker 2: looking at countries. Some of them live under the umbrella

102
00:05:18,520 --> 00:05:21,119
Speaker 2: of the US security protection. They don't have to spend

103
00:05:21,160 --> 00:05:25,200
Speaker 2: as much on military sale and military spending as the

104
00:05:25,279 --> 00:05:28,720
Speaker 2: US does. So there's so many different factors here in

105
00:05:28,760 --> 00:05:30,839
Speaker 2: how you weigh this up. If you listen to Jamie

106
00:05:30,880 --> 00:05:33,599
Speaker 2: Diamond and others, it's worth noting, but it's not that

107
00:05:33,680 --> 00:05:34,240
Speaker 2: big a deal.

108
00:05:34,839 --> 00:05:37,320
Speaker 1: Just want to point out very quickly that you were

109
00:05:37,360 --> 00:05:40,400
Speaker 1: talking about the story to limit smartphone use for young

110
00:05:40,400 --> 00:05:43,960
Speaker 1: people in China. Today the Nasdaq Golden Dragon China Index

111
00:05:44,080 --> 00:05:46,600
Speaker 1: was down on that news by more than four percent.

112
00:05:47,200 --> 00:05:47,400
Speaker 8: Yeah.

113
00:05:47,440 --> 00:05:50,400
Speaker 2: Absolutely, we had this news break actually before the market

114
00:05:50,440 --> 00:05:53,080
Speaker 2: closed here, and we had companies like ten Cent and Kwaisho,

115
00:05:53,680 --> 00:05:56,760
Speaker 2: Waywoo and others trading down even as much as four

116
00:05:56,800 --> 00:05:59,520
Speaker 2: to five percent, So definitely an impact. I heard you

117
00:05:59,560 --> 00:06:02,640
Speaker 2: talking on the previous program a little bit about you know,

118
00:06:02,720 --> 00:06:05,160
Speaker 2: people looking at this and saying, now, wait a second.

119
00:06:05,360 --> 00:06:07,400
Speaker 2: We thought you were going in one direction now this,

120
00:06:07,920 --> 00:06:09,760
Speaker 2: but I think you have to take all of these things.

121
00:06:10,320 --> 00:06:13,279
Speaker 2: They're all working together, and it's like two steps forward,

122
00:06:13,279 --> 00:06:16,000
Speaker 2: one step back, something like that. Now it's time for

123
00:06:16,040 --> 00:06:22,440
Speaker 2: Global News. Well again, we will have our guest coming

124
00:06:22,480 --> 00:06:25,120
Speaker 2: up in a few moments. That is Sylvia Jablonski. But

125
00:06:25,240 --> 00:06:27,240
Speaker 2: let's get to some of the top news stories of

126
00:06:27,279 --> 00:06:29,320
Speaker 2: the hour. And we crossed to the nine to sixty

127
00:06:29,360 --> 00:06:31,520
Speaker 2: news room in San Francisco and Ed Baxter.

128
00:06:31,360 --> 00:06:33,560
Speaker 9: Ed, all right, thank you very much, Brian. New York

129
00:06:33,600 --> 00:06:35,680
Speaker 9: City struggling to find a way to house a huge

130
00:06:35,680 --> 00:06:39,240
Speaker 9: influx of migrants, many of whom are just sleeping on

131
00:06:39,279 --> 00:06:42,159
Speaker 9: the streets. New York says it's received more than ninety

132
00:06:42,160 --> 00:06:45,640
Speaker 9: five thousand asylum seekers in the past fifteen months. Deputy

133
00:06:45,680 --> 00:06:48,800
Speaker 9: Mayor for Health and Human Services and williams Isom calling

134
00:06:49,000 --> 00:06:52,159
Speaker 9: on the federal government for help. We are seeing twenty

135
00:06:52,200 --> 00:06:54,640
Speaker 9: three hundred people a week still coming into New York

136
00:06:54,640 --> 00:06:56,000
Speaker 9: City seeking shelter.

137
00:06:56,279 --> 00:06:57,520
Speaker 10: That is unsustainable.

138
00:06:57,839 --> 00:07:00,520
Speaker 9: Williams Isom says, all options or a housing shelter in

139
00:07:00,560 --> 00:07:04,680
Speaker 9: Manhattan Central Park and Brooklyn's Prospect Park. She says for

140
00:07:04,720 --> 00:07:06,839
Speaker 9: them to be sleeping on the streets is inhumane and

141
00:07:06,920 --> 00:07:10,520
Speaker 9: unsustainable for New Yorkers. Ben James Deadley storms brought the

142
00:07:10,520 --> 00:07:13,760
Speaker 9: heaviest rainfall on record. It triggered floods. They killed at

143
00:07:13,840 --> 00:07:16,600
Speaker 9: least twenty people in northern China this week. The worst

144
00:07:16,640 --> 00:07:20,440
Speaker 9: spot of the Capitol recorded twenty nine point three inches

145
00:07:20,520 --> 00:07:23,560
Speaker 9: of rain from Saturday through Wednesday. That's the most ever

146
00:07:23,640 --> 00:07:26,240
Speaker 9: in data going back to eighteen eighty three. Officials say

147
00:07:26,440 --> 00:07:29,640
Speaker 9: at least twenty died in the flooding. Some reaction today

148
00:07:29,680 --> 00:07:33,240
Speaker 9: to the latest indictment against Donald Trump very interesting. For example,

149
00:07:33,720 --> 00:07:37,440
Speaker 9: John Dean, former White House Council for President Richard Nixon,

150
00:07:37,480 --> 00:07:40,240
Speaker 9: when asked today on sound On by Joe Matthew and

151
00:07:40,320 --> 00:07:44,360
Speaker 9: Kaylee lyons to compare this to Watergate.

152
00:07:44,240 --> 00:07:51,400
Speaker 8: Nixon's Watergate was like a lightning bug. Trump's behavior is

153
00:07:51,480 --> 00:07:54,920
Speaker 8: like a lightning storm, and it it threatens the entire

154
00:07:55,640 --> 00:07:57,440
Speaker 8: structure of our democracy.

155
00:07:57,960 --> 00:08:00,160
Speaker 9: Dean says, the indictment has written so that the there

156
00:08:00,160 --> 00:08:03,840
Speaker 9: will be no First Amendment argument brought into the legal defense.

157
00:08:04,240 --> 00:08:07,360
Speaker 9: And the man who presided over the Senate accreditation on

158
00:08:07,480 --> 00:08:09,560
Speaker 9: January sixth, Mike Pence.

159
00:08:09,320 --> 00:08:12,840
Speaker 11: What the President maintained that day, and frankly has said

160
00:08:12,880 --> 00:08:14,680
Speaker 11: over and over again over the last two and a

161
00:08:14,720 --> 00:08:19,680
Speaker 11: half years, is completely false and it's contrary to what

162
00:08:19,760 --> 00:08:22,520
Speaker 11: our constitution and the laws of his country provide.

163
00:08:22,600 --> 00:08:26,760
Speaker 9: And Congressman Jimmy Raskin, who presided over the Trump impeachment hearing, says.

164
00:08:27,040 --> 00:08:30,840
Speaker 9: The Trump campaign says, this reminds them of Nazi Germany.

165
00:08:30,960 --> 00:08:34,880
Speaker 12: But it's a kind of moral dyslexia represented in that

166
00:08:35,000 --> 00:08:41,040
Speaker 12: statement right there, because it was precisely an authoritarian attack

167
00:08:41,200 --> 00:08:47,199
Speaker 12: on our constitutional democracy, which is being prosecuted by this

168
00:08:47,320 --> 00:08:48,160
Speaker 12: special counsel.

169
00:08:48,320 --> 00:08:51,280
Speaker 9: Then Raskin says, it vindicates the January sixth committee work.

170
00:08:51,400 --> 00:08:55,800
Speaker 9: So what can the defense be. Well, Bloomberg's Mike Dorning says,

171
00:08:55,840 --> 00:08:57,439
Speaker 9: it will most probably set her on.

172
00:08:57,600 --> 00:09:01,520
Speaker 10: Intent because you have to show career in tent for

173
00:09:01,640 --> 00:09:06,240
Speaker 10: these charges to stick. So the more likely legal defense

174
00:09:06,320 --> 00:09:08,240
Speaker 10: is going to be, hey, I thought this was all

175
00:09:08,280 --> 00:09:10,800
Speaker 10: the case, so there was no corrupt intent.

176
00:09:10,960 --> 00:09:14,760
Speaker 9: Trump appears in court tomorrow on the latest charges Global

177
00:09:14,800 --> 00:09:17,280
Speaker 9: news power by more than twenty seven hundred journalist and

178
00:09:17,320 --> 00:09:20,439
Speaker 9: analysts in over one hundred and twenty countries in San Francisco.

179
00:09:20,480 --> 00:09:23,199
Speaker 9: I'm Ed Baxter, and this is Bloomberg.

180
00:09:23,320 --> 00:09:26,240
Speaker 2: This is Bloomberg day Break Asia, Brian Curtison, Rashad Salama.

181
00:09:26,360 --> 00:09:29,840
Speaker 2: Our guest is Sylvia Schablonski, co founder, CEO and CIO

182
00:09:30,000 --> 00:09:33,240
Speaker 2: at Defiance ETFs. Sylvia, great to have you with us

183
00:09:33,280 --> 00:09:36,240
Speaker 2: here on the program. So the action today is this

184
00:09:36,280 --> 00:09:39,439
Speaker 2: a serious new direction or is this just a little

185
00:09:39,600 --> 00:09:41,760
Speaker 2: consolidation that investors will likely buy?

186
00:09:42,480 --> 00:09:46,320
Speaker 13: Hi good evening. Well, I would hope that it's it's,

187
00:09:46,480 --> 00:09:49,320
Speaker 13: you know, a consolidation that investors will likely buy. I

188
00:09:49,360 --> 00:09:51,400
Speaker 13: think that you know, we've had this sort of rip

189
00:09:51,559 --> 00:09:55,400
Speaker 13: roaring rally to the tune of trillions in the market,

190
00:09:55,440 --> 00:09:57,760
Speaker 13: and you know, you get some bad news and it

191
00:09:57,800 --> 00:10:02,280
Speaker 13: seems to really kind of set investors off kilter. I

192
00:10:02,320 --> 00:10:04,200
Speaker 13: thought it was a bit of an overreaction. Actually, I

193
00:10:04,240 --> 00:10:06,800
Speaker 13: was really surprised at the level of pull back, particularly

194
00:10:06,920 --> 00:10:10,440
Speaker 13: then NASDAC today, you know, fetuating is it's one agency

195
00:10:10,520 --> 00:10:13,600
Speaker 13: and we went from you know, we went down one level.

196
00:10:13,640 --> 00:10:17,040
Speaker 13: But it's you know, I heard you talking about Jamie

197
00:10:17,040 --> 00:10:20,120
Speaker 13: Diamond earlier before. You know, the US is US Academy

198
00:10:20,160 --> 00:10:22,480
Speaker 13: is in great shape. GDP is positive. You know, people

199
00:10:22,520 --> 00:10:26,120
Speaker 13: sort of have jobs, wages are increasing, corporations are earning money.

200
00:10:26,120 --> 00:10:28,080
Speaker 8: It just you know, sort of doesn't seem.

201
00:10:27,840 --> 00:10:30,800
Speaker 13: Like a like a big crisis here in my mind.

202
00:10:30,800 --> 00:10:33,240
Speaker 13: So it feels overdone and perhaps a buying opportunity.

203
00:10:33,640 --> 00:10:35,640
Speaker 14: Well exactly, that's what I was going to ask you about, Sylvia.

204
00:10:35,679 --> 00:10:37,840
Speaker 14: I mean, is this buying the dip opportunity or do

205
00:10:37,880 --> 00:10:39,920
Speaker 14: you think that this represents perhaps a bit of a

206
00:10:39,960 --> 00:10:42,320
Speaker 14: sea change taking place as people, as they call it,

207
00:10:42,400 --> 00:10:45,880
Speaker 14: de gross now and maybe look elsewhere away from what's

208
00:10:45,880 --> 00:10:48,680
Speaker 14: propelled the rally towards perhaps some of the more defensive

209
00:10:48,679 --> 00:10:51,280
Speaker 14: options available for the DOW for instance, which is actually

210
00:10:51,280 --> 00:10:52,200
Speaker 14: done quite well of late.

211
00:10:52,440 --> 00:10:56,600
Speaker 13: I think that that is certainly reasonable. However, there has

212
00:10:56,679 --> 00:10:59,000
Speaker 13: also been so much you know, sort of fear of

213
00:10:59,080 --> 00:11:02,520
Speaker 13: missing out on the actual rally of semiconductors and technology

214
00:11:02,520 --> 00:11:05,040
Speaker 13: stocks that I think, you know, an opportunity like this

215
00:11:05,120 --> 00:11:07,000
Speaker 13: where you see some of the bigger names, although they

216
00:11:07,040 --> 00:11:09,000
Speaker 13: haven't pulled back all that much, but a couple of

217
00:11:09,000 --> 00:11:11,960
Speaker 13: percentage points on you know, Navidia and and Apple and

218
00:11:12,000 --> 00:11:13,679
Speaker 13: things like this, you know, some of the names that

219
00:11:14,280 --> 00:11:16,760
Speaker 13: are part of this future of innovation, of growth, AI,

220
00:11:16,840 --> 00:11:21,040
Speaker 13: machine learning. They may be opportunities for investors to kind

221
00:11:21,040 --> 00:11:23,760
Speaker 13: of get in and you know, pick up that allocation

222
00:11:23,800 --> 00:11:25,600
Speaker 13: that they've missed along the way. But to your point,

223
00:11:25,920 --> 00:11:28,920
Speaker 13: it is also time to think about a diversification game.

224
00:11:29,000 --> 00:11:29,160
Speaker 12: Right.

225
00:11:29,160 --> 00:11:31,800
Speaker 13: We have had a big run up in the NASDAC,

226
00:11:31,840 --> 00:11:33,920
Speaker 13: you know, the best first half since nineteen eighty three,

227
00:11:34,320 --> 00:11:36,880
Speaker 13: and while that can continue into year end. You know,

228
00:11:36,920 --> 00:11:39,559
Speaker 13: you do have other kind of parts of the market

229
00:11:39,600 --> 00:11:41,440
Speaker 13: that haven't rallied quite as much. You know, if you

230
00:11:41,480 --> 00:11:44,880
Speaker 13: just look at the bioteches for example, you know there's

231
00:11:44,920 --> 00:11:47,240
Speaker 13: an example of something that just like hasn't ripped up

232
00:11:47,280 --> 00:11:49,160
Speaker 13: and might be a good place to diversify.

233
00:11:49,880 --> 00:11:52,400
Speaker 2: So what would give you a little more of a

234
00:11:52,440 --> 00:11:54,959
Speaker 2: cautionary feeling, Well, I think I.

235
00:11:54,920 --> 00:11:58,360
Speaker 13: Think that if you know, we've got another hot jobs number, right,

236
00:11:58,400 --> 00:11:59,720
Speaker 13: so I think a lot of it is going to

237
00:11:59,720 --> 00:12:02,719
Speaker 13: come down down to the FED, and you know kind

238
00:12:02,720 --> 00:12:06,080
Speaker 13: of what the FED foresees the future of rate hikes being.

239
00:12:06,120 --> 00:12:08,120
Speaker 13: You know, we all have it kind of locked in

240
00:12:08,200 --> 00:12:10,480
Speaker 13: that there might be another rate hiker too, but at

241
00:12:10,480 --> 00:12:12,560
Speaker 13: that point, you know, it's sort of over and then

242
00:12:12,640 --> 00:12:15,680
Speaker 13: the next conversation will be about pulling back there. So

243
00:12:15,840 --> 00:12:17,680
Speaker 13: I do think that the future path of the FED

244
00:12:17,720 --> 00:12:20,200
Speaker 13: will determine whether or not we kind of continue to

245
00:12:20,320 --> 00:12:22,319
Speaker 13: rally into the year. But you know, if you look

246
00:12:22,320 --> 00:12:25,480
Speaker 13: at earnings again, earnings are decent and interest dates are

247
00:12:25,520 --> 00:12:28,400
Speaker 13: higher than they've ever been in a decade. They've broken

248
00:12:28,440 --> 00:12:30,640
Speaker 13: some regional banks, they've you know, starved off m and

249
00:12:30,720 --> 00:12:33,560
Speaker 13: a activity VC investing all of this you know type

250
00:12:33,600 --> 00:12:36,320
Speaker 13: of activity, but it's really now started to come back

251
00:12:36,360 --> 00:12:38,920
Speaker 13: and the resilience of stocks has just been incredible to

252
00:12:39,000 --> 00:12:41,440
Speaker 13: the you know, in the first first half, and so

253
00:12:41,559 --> 00:12:44,320
Speaker 13: I don't really see anything knocking us out of that,

254
00:12:44,679 --> 00:12:47,280
Speaker 13: you know, for the next next few months going into

255
00:12:47,400 --> 00:12:50,559
Speaker 13: year end, unless there's a big geopolitical event or a

256
00:12:50,600 --> 00:12:51,440
Speaker 13: surprise in the FED.

257
00:12:52,040 --> 00:12:55,040
Speaker 14: Well, Sylvia, I mean, the thing is that we had

258
00:12:55,240 --> 00:12:57,560
Speaker 14: the NASAC and some of those big names have a

259
00:12:57,559 --> 00:12:59,600
Speaker 14: bit of a wobble earlier the year, and then suddenly

260
00:13:00,120 --> 00:13:04,240
Speaker 14: we had the whole AI messaging come through, and that

261
00:13:04,440 --> 00:13:07,640
Speaker 14: just put another rocket under those stocks. The thing is,

262
00:13:07,679 --> 00:13:09,880
Speaker 14: it is a bit reminiscent of the dot com bubble.

263
00:13:09,960 --> 00:13:12,880
Speaker 13: What are your thoughts, Well, I think, you know, the

264
00:13:12,960 --> 00:13:15,680
Speaker 13: difference is that, you know, these are sort of, for

265
00:13:15,800 --> 00:13:18,880
Speaker 13: lack of better words, real things and real technologies that

266
00:13:18,880 --> 00:13:21,440
Speaker 13: can improve how companies operate. So it is different in

267
00:13:21,480 --> 00:13:21,960
Speaker 13: that sense.

268
00:13:22,280 --> 00:13:22,440
Speaker 7: You know.

269
00:13:22,520 --> 00:13:26,000
Speaker 13: For example, in medicine, AI can be used to you know,

270
00:13:26,080 --> 00:13:29,240
Speaker 13: have better outcomes, whether it's through the use of robots

271
00:13:29,320 --> 00:13:32,000
Speaker 13: or data and surgeries. It can provide better research, It

272
00:13:32,000 --> 00:13:35,640
Speaker 13: can provide you know, better and more efficient drugs for

273
00:13:35,679 --> 00:13:37,800
Speaker 13: the aging baby, boomer population. You know, all of the

274
00:13:37,840 --> 00:13:41,360
Speaker 13: workers that factor, you know, factory work, factory managers couldn't

275
00:13:41,360 --> 00:13:44,360
Speaker 13: find to help, you know, run manufacturing plants and things

276
00:13:44,400 --> 00:13:47,319
Speaker 13: like this. Those can be replaced with more efficient technology,

277
00:13:47,440 --> 00:13:50,080
Speaker 13: robots understanding how much you need to run your supply

278
00:13:50,120 --> 00:13:53,320
Speaker 13: chain efficiently. So I do think that AI is technology

279
00:13:53,360 --> 00:13:56,840
Speaker 13: that will improve the bottom lines of corporate America across

280
00:13:56,880 --> 00:13:59,240
Speaker 13: the board. But I think it'll take time to play out.

281
00:13:59,280 --> 00:14:01,280
Speaker 13: You know, we're so excited about it now, and that's great.

282
00:14:01,280 --> 00:14:03,880
Speaker 13: I think it's the staples of AI that are that

283
00:14:03,960 --> 00:14:06,000
Speaker 13: are routing now, but later on it'll be the companies

284
00:14:06,000 --> 00:14:09,160
Speaker 13: that are using that AI that will benefit, in my opinion.

285
00:14:09,960 --> 00:14:12,480
Speaker 2: And just briefly twenty seconds, if a teen asks you

286
00:14:12,559 --> 00:14:14,920
Speaker 2: should we worry about this pitch call, what do you say?

287
00:14:15,480 --> 00:14:18,160
Speaker 13: I would say no. I would say it's you know,

288
00:14:18,200 --> 00:14:20,880
Speaker 13: it's one agency. It's it's probably going to turn around

289
00:14:20,880 --> 00:14:23,520
Speaker 13: in a couple of months, and you know, just keep

290
00:14:23,520 --> 00:14:24,360
Speaker 13: an eye on the markets.

291
00:14:25,240 --> 00:14:28,760
Speaker 2: Okay, Sylvia, thanks very much for being with us. Sylvia Jablonski,

292
00:14:28,800 --> 00:14:34,680
Speaker 2: co founder, CEO and CIO at Defiance ETFs. This is

293
00:14:34,720 --> 00:14:37,760
Speaker 2: Bloomberg Daybreak Asia, your morning brief on the stories making

294
00:14:37,840 --> 00:14:40,680
Speaker 2: news from Hong Kong to Singapore and Wall Street.

295
00:14:40,720 --> 00:14:44,720
Speaker 1: Look for us on your podcast feed every day, on Apple, Spotify,

296
00:14:44,960 --> 00:14:46,960
Speaker 1: and anywhere else you get your podcasts.

297
00:14:46,960 --> 00:14:49,560
Speaker 2: You can also listen live each day on Bloomberg eleven

298
00:14:49,600 --> 00:14:51,960
Speaker 2: three to oho in New York, Bloomberg ninety nine to

299
00:14:52,000 --> 00:14:55,200
Speaker 2: one in Washington, Bloomberg one oh six to one in Boston,

300
00:14:55,520 --> 00:14:58,000
Speaker 2: and Bloomberg nine sixty in San Francisco.

301
00:14:58,040 --> 00:15:00,880
Speaker 1: Our flagship New York station is also available on your

302
00:15:00,920 --> 00:15:06,000
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

303
00:15:05,840 --> 00:15:09,000
Speaker 2: Plus listen coast to coast on the Bloomberg Business app,

304
00:15:09,320 --> 00:15:13,480
Speaker 2: Sirius XM Channel one nineteen, the iHeartRadio app, and on

305
00:15:13,560 --> 00:15:16,560
Speaker 2: Bloomberg dot Com. I'm Brian Curtis.

306
00:15:16,560 --> 00:15:19,000
Speaker 1: And I'm Doug Prisner. Join us again tomorrow for all

307
00:15:19,000 --> 00:15:21,480
Speaker 1: the news you need to start your day right here

308
00:15:21,600 --> 00:15:25,680
Speaker 1: on Bloomberg Daybreak Asia