1
00:00:02,680 --> 00:00:05,520
Speaker 1: This is Bloomberg Day Break Asia for this Friday, May

2
00:00:05,559 --> 00:00:08,920
Speaker 1: twenty sixth in Hong Kong, Thursday May twenty fifth in

3
00:00:09,039 --> 00:00:12,080
Speaker 1: New York and coming up today, Nvidia powers a rally

4
00:00:12,080 --> 00:00:15,800
Speaker 1: in tech stocks and Nears won trillion dollars in market value.

5
00:00:15,880 --> 00:00:18,920
Speaker 1: Trader is fully priced in another quarter point fed rayhike

6
00:00:19,040 --> 00:00:21,479
Speaker 1: within the next two policy meetings, and the Bank of

7
00:00:21,560 --> 00:00:25,319
Speaker 1: Japan Governor Kazua Ueida indicates his desire to hold on

8
00:00:25,480 --> 00:00:29,440
Speaker 1: to policy flexibility. Debt ceiling negotiations continue without a deal.

9
00:00:29,520 --> 00:00:32,560
Speaker 1: A January sixth perpetrator gets sentenced eighteen years in jail.

10
00:00:32,680 --> 00:00:34,400
Speaker 1: I'm Dan Schwartzman with Global News.

11
00:00:37,040 --> 00:00:40,199
Speaker 2: That's all straight ahead on Bloomberg day Break Asia, the

12
00:00:40,280 --> 00:00:42,920
Speaker 2: business news you need to start your day, and just

13
00:00:43,040 --> 00:00:47,520
Speaker 2: one fifteen minute podcast available on Apples, Spotify, the Bloomberg

14
00:00:47,560 --> 00:00:50,280
Speaker 2: Business app and everywhere you get your podcasts.

15
00:00:53,360 --> 00:00:56,680
Speaker 1: Good morning, I'm Richard Salavat and I'm Brian Curtiz. Here

16
00:00:56,680 --> 00:00:58,360
Speaker 1: are the stories we're following today.

17
00:00:58,640 --> 00:01:01,920
Speaker 3: Chip Macan Nvidia is now within touching distance of one

18
00:01:02,120 --> 00:01:05,720
Speaker 3: trillion dollars in market value. Now, this would become the only,

19
00:01:06,280 --> 00:01:09,120
Speaker 3: but only the ninth firm evetive hit that milestone. It

20
00:01:09,120 --> 00:01:11,759
Speaker 3: does come after in Vidia's surprise channas with a surging

21
00:01:11,840 --> 00:01:14,800
Speaker 3: revenue forecast, it propelled to jump in stocks linked to

22
00:01:14,880 --> 00:01:17,920
Speaker 3: artificial intelligence. We should know that in Video is the

23
00:01:17,959 --> 00:01:20,479
Speaker 3: bigs maker of advanced chips that are required to train

24
00:01:20,680 --> 00:01:24,319
Speaker 3: a generation AI services. We heard from Kyle Bass, founder

25
00:01:24,360 --> 00:01:27,000
Speaker 3: of Hayman Capital Managements, saying that investors should now be

26
00:01:27,080 --> 00:01:30,720
Speaker 3: looking at developing data centers to capitalize on the demand

27
00:01:31,160 --> 00:01:31,960
Speaker 3: for AI.

28
00:01:32,640 --> 00:01:34,920
Speaker 4: When you look at the data center market, it is

29
00:01:35,120 --> 00:01:39,600
Speaker 4: white hot. The US is reshoring on shoring this high

30
00:01:39,680 --> 00:01:43,240
Speaker 4: powered chip business, and in Vidia is leading the way,

31
00:01:43,360 --> 00:01:45,919
Speaker 4: you know, first with their GPUs and their gaming chips

32
00:01:45,920 --> 00:01:49,360
Speaker 4: and now their generative AI stuff. That is just again

33
00:01:49,440 --> 00:01:52,720
Speaker 4: white hot. I wouldn't short in Video. I think it's

34
00:01:52,760 --> 00:01:54,560
Speaker 4: just as has a long way to run here.

35
00:01:54,800 --> 00:01:57,960
Speaker 3: Meantime, Trader is betting against in Video, facing two point

36
00:01:58,000 --> 00:02:01,440
Speaker 3: three billion dollars in paper loss on Thursday, leon in

37
00:02:01,560 --> 00:02:04,160
Speaker 3: vid shs closing up twenty four percent in.

38
00:02:04,200 --> 00:02:06,720
Speaker 1: New York Well today, the amount of money the US

39
00:02:06,840 --> 00:02:09,639
Speaker 1: government has to pay its bills tumbled to forty nine

40
00:02:09,680 --> 00:02:13,120
Speaker 1: point five billion dollars, the lowest since twenty twenty one.

41
00:02:13,320 --> 00:02:16,200
Speaker 1: It raises the chances of a default early next month

42
00:02:16,520 --> 00:02:20,560
Speaker 1: if the statutory debt limit isn't raised or suspended before then.

43
00:02:21,040 --> 00:02:24,240
Speaker 1: Republicans and the White House are narrowing their differences, but

44
00:02:24,400 --> 00:02:27,440
Speaker 1: still have not reached an agreement over raising the debt limit.

45
00:02:27,880 --> 00:02:30,920
Speaker 1: Today we heard from Nobel Prize winning economist Paul Krugman.

46
00:02:31,320 --> 00:02:34,760
Speaker 1: He said that budget negotiators risk harming the nation by

47
00:02:34,800 --> 00:02:38,120
Speaker 1: cutting programs that support education and childcare.

48
00:02:38,680 --> 00:02:41,640
Speaker 5: What's happening right now is that in the effort to

49
00:02:41,680 --> 00:02:46,720
Speaker 5: hold down headline spending, right now, we're actually kind of

50
00:02:46,800 --> 00:02:51,200
Speaker 5: disinvesting in the country's future, and that's pretty alarming.

51
00:02:51,919 --> 00:02:55,000
Speaker 1: Krugman also pushed back on suggestions that the surge in

52
00:02:55,120 --> 00:02:58,160
Speaker 1: US government debt would undermine the dollar's role as the

53
00:02:58,160 --> 00:03:02,840
Speaker 1: world's reserve currency. There's simply no obvious candidate to replace it,

54
00:03:03,280 --> 00:03:05,280
Speaker 1: but he did say that the greenback could be hurt

55
00:03:05,360 --> 00:03:08,919
Speaker 1: by repeated confrontation over the debt ceiling and a series

56
00:03:08,960 --> 00:03:09,680
Speaker 1: of defaults.

57
00:03:10,160 --> 00:03:10,400
Speaker 6: Well.

58
00:03:10,440 --> 00:03:13,440
Speaker 3: In recent weeks, of course, we saw a First Republican trouble.

59
00:03:13,520 --> 00:03:16,320
Speaker 3: JP Morgan Chase came to the rescue. Well now, JP

60
00:03:16,440 --> 00:03:20,040
Speaker 3: Morgan Chases Justice and around about one thousand First republic

61
00:03:20,080 --> 00:03:22,600
Speaker 3: employees Bloomberg's and Kate's reports.

62
00:03:22,960 --> 00:03:25,760
Speaker 7: JP Morgan is offering full time or transitional jobs to

63
00:03:25,800 --> 00:03:28,640
Speaker 7: almost eighty five percent of the nearly seven thousand First

64
00:03:28,680 --> 00:03:31,079
Speaker 7: Republic staffers who are still working for the lender when

65
00:03:31,080 --> 00:03:33,160
Speaker 7: it collapsed, while the rest were told they would not

66
00:03:33,200 --> 00:03:35,320
Speaker 7: be hired. Those who are not being brought on by

67
00:03:35,400 --> 00:03:38,320
Speaker 7: JP Morgan will get wages and benefits covering sixty days,

68
00:03:38,520 --> 00:03:40,880
Speaker 7: and they'll be provided an additional love sum payment and

69
00:03:40,920 --> 00:03:44,680
Speaker 7: continuing benefits coverage. A spokesperson for JP Morgan says the

70
00:03:44,680 --> 00:03:46,760
Speaker 7: move is meant to bring clarity and closure to First

71
00:03:46,800 --> 00:03:51,920
Speaker 7: Republic employees in Washington and Kate's Bloomberg Daybreak Asia well.

72
00:03:51,960 --> 00:03:54,800
Speaker 1: On the FED, traders fully priced in another quarter point

73
00:03:54,880 --> 00:03:57,400
Speaker 1: rate hike by the Central Bank within the next two

74
00:03:57,560 --> 00:04:00,640
Speaker 1: policy meetings, and a more than one in two chants

75
00:04:00,680 --> 00:04:03,320
Speaker 1: that the high could arrive as soon as next month. Today,

76
00:04:03,320 --> 00:04:06,520
Speaker 1: Boston Fed President Susan Collins said that there are promising

77
00:04:06,560 --> 00:04:10,160
Speaker 1: signs that inflation is cooling and that may impact the

78
00:04:10,200 --> 00:04:13,680
Speaker 1: Fed's next move. Is Colin's speaking at the Community College

79
00:04:13,680 --> 00:04:14,360
Speaker 1: of Rhode Island.

80
00:04:14,520 --> 00:04:18,000
Speaker 8: While inflation is still too high, there are some promising

81
00:04:18,080 --> 00:04:21,280
Speaker 8: signs of moderation, and I believe that we may be

82
00:04:21,480 --> 00:04:25,120
Speaker 8: at or near the point where monetary policy can pause

83
00:04:25,200 --> 00:04:28,840
Speaker 8: raising interest rates, and this will provide an opportunity to

84
00:04:28,920 --> 00:04:32,119
Speaker 8: more fully assess the impact of the actions we've taken

85
00:04:32,160 --> 00:04:32,560
Speaker 8: to date.

86
00:04:33,040 --> 00:04:36,600
Speaker 1: Colin said that a low predictable inflation rate is needed,

87
00:04:36,800 --> 00:04:39,400
Speaker 1: and she added that officials should approach policy on a

88
00:04:39,440 --> 00:04:42,839
Speaker 1: meeting by meeting basis and take a comprehensive assessment of

89
00:04:42,839 --> 00:04:46,480
Speaker 1: information that's available at the time. Collins doesn't vote on

90
00:04:46,520 --> 00:04:50,599
Speaker 1: the Federal Open Market Committee this year. Policymakers will meet

91
00:04:50,640 --> 00:04:52,520
Speaker 1: next June thirteenth and fourteenth.

92
00:04:52,720 --> 00:04:53,000
Speaker 9: Thank you.

93
00:04:53,080 --> 00:04:57,039
Speaker 3: Japan Governor Kazuu Aida indicated his desire to hold onto

94
00:04:57,080 --> 00:05:01,400
Speaker 3: policy flexibility, playing down the importance of wages on any

95
00:05:01,440 --> 00:05:05,279
Speaker 3: single economic data sets a trigger for change. He spoke

96
00:05:05,520 --> 00:05:09,960
Speaker 3: to selected media in Tokyo.

97
00:05:09,040 --> 00:05:12,159
Speaker 10: On how wages might lead to policy change. We aren't

98
00:05:12,200 --> 00:05:16,200
Speaker 10: targeting wage growth itself. If we have sustainable and stable

99
00:05:16,200 --> 00:05:20,239
Speaker 10: inflation of two percent, it's natural that wages should also rise.

100
00:05:21,000 --> 00:05:24,240
Speaker 10: The key point for our policy decision is whether inflation

101
00:05:24,320 --> 00:05:27,599
Speaker 10: will rise in a stable and sustainable manner at two percent.

102
00:05:28,160 --> 00:05:30,679
Speaker 3: Way It's remarks leave room for the BOJ to nimble,

103
00:05:30,760 --> 00:05:34,080
Speaker 3: a b nimble about how and when it'll be convinced

104
00:05:34,080 --> 00:05:37,400
Speaker 3: about the prospect of price gains. It's a science which

105
00:05:37,440 --> 00:05:40,479
Speaker 3: you'll leave investors and should I say speculators guessing about

106
00:05:40,480 --> 00:05:43,960
Speaker 3: the trimming of policy change. The BOJ board next meets

107
00:05:44,120 --> 00:05:45,760
Speaker 3: on the fifteenth and sixteenth.

108
00:05:46,760 --> 00:05:49,479
Speaker 1: I'm Brian Curtis along with Rishad Salamat. We will be

109
00:05:49,520 --> 00:05:53,920
Speaker 1: looking more closely at all the enthusiasm over AI and

110
00:05:54,120 --> 00:05:57,320
Speaker 1: a little bit more on Nvidio and the spoils being

111
00:05:57,360 --> 00:05:59,760
Speaker 1: shared there, as well as some of the top stories.

112
00:06:00,080 --> 00:06:00,360
Speaker 4: We have.

113
00:06:00,480 --> 00:06:04,120
Speaker 1: Joanne Feene coming up, a partner and portfolio manager at

114
00:06:04,160 --> 00:06:07,520
Speaker 1: Advisors Capital Management. If we have time, we'll also get

115
00:06:07,560 --> 00:06:11,520
Speaker 1: to May twan's earnings jumping twenty seven percent and taking

116
00:06:11,520 --> 00:06:13,800
Speaker 1: a closer look at Ali Baba saying that he plans

117
00:06:13,800 --> 00:06:17,440
Speaker 1: to hire some fifteen thousand people this year, including three

118
00:06:17,520 --> 00:06:21,719
Speaker 1: thousand university graduates. That's all ahead. Now it's time for

119
00:06:21,760 --> 00:06:28,080
Speaker 1: global news. Well, debt sealing negotiations are ongoing, but no

120
00:06:28,240 --> 00:06:31,520
Speaker 1: deal is in sight. Dan Schwartzman has more from the

121
00:06:31,520 --> 00:06:32,440
Speaker 1: Bloomberg newsroom.

122
00:06:32,480 --> 00:06:36,080
Speaker 11: Dan, Yeah, Brian's not good right now. Negotiations are continuing,

123
00:06:36,080 --> 00:06:38,480
Speaker 11: with reports saying that the divide between the two sides

124
00:06:38,520 --> 00:06:41,359
Speaker 11: has now rowed, but there was no agreement in site.

125
00:06:41,480 --> 00:06:44,600
Speaker 11: President Biden and House Speaker Kevin McCarthy continued to communicate

126
00:06:44,640 --> 00:06:47,480
Speaker 11: from their offices, with Biden saying that he wouldn't agree

127
00:06:47,520 --> 00:06:48,880
Speaker 11: to certain Republican demands.

128
00:06:49,279 --> 00:06:52,039
Speaker 12: Republicans passed the bill that would make huge cuts and

129
00:06:52,080 --> 00:06:56,280
Speaker 12: important programs and millions of working in middle class Americans

130
00:06:56,360 --> 00:06:59,560
Speaker 12: count os huge cuts and number of teachers, police officers,

131
00:06:59,600 --> 00:07:03,280
Speaker 12: border control agents, and it increased white times for Social

132
00:07:03,279 --> 00:07:05,640
Speaker 12: Security claims, and I won't agree to that.

133
00:07:05,920 --> 00:07:08,640
Speaker 11: The President was speaking from the White House. Next Tuesday

134
00:07:08,760 --> 00:07:11,240
Speaker 11: is emerging as the possible deadline to get a deal done,

135
00:07:11,400 --> 00:07:14,120
Speaker 11: as Treasury Secretary Janet Yellen has said that her department

136
00:07:14,200 --> 00:07:17,160
Speaker 11: could run out of cash on June first. On June second,

137
00:07:17,240 --> 00:07:20,280
Speaker 11: social Security payments to millions of Americans' is due, which

138
00:07:20,280 --> 00:07:22,200
Speaker 11: has added pressure on both sides to work out a

139
00:07:22,240 --> 00:07:22,800
Speaker 11: deal soon.

140
00:07:23,120 --> 00:07:23,280
Speaker 9: Now.

141
00:07:23,280 --> 00:07:26,600
Speaker 11: Republican Congressman from Florida Byron Donald says, maybe it's best

142
00:07:26,640 --> 00:07:28,040
Speaker 11: to have a default if.

143
00:07:27,880 --> 00:07:32,320
Speaker 6: There's not enough sense between Republicans and Democrats to get

144
00:07:32,360 --> 00:07:34,640
Speaker 6: this done and do it the appropriate way, just because

145
00:07:34,720 --> 00:07:38,160
Speaker 6: they want to protect their political agenda nobody should be geting.

146
00:07:37,960 --> 00:07:40,760
Speaker 11: Paid Representative Donalds was speaking just to day after Fitch

147
00:07:40,840 --> 00:07:43,480
Speaker 11: Ratings placed the triple A credit rating for the United

148
00:07:43,520 --> 00:07:46,320
Speaker 11: States on watch, with a chance at a potential downgrade

149
00:07:46,440 --> 00:07:48,800
Speaker 11: if a deal is not reached in time. The leader

150
00:07:48,840 --> 00:07:50,680
Speaker 11: of the Oathkeeper is a right wing group that took

151
00:07:50,720 --> 00:07:53,320
Speaker 11: part on the January sixth attack on the US Capitol,

152
00:07:53,560 --> 00:07:56,520
Speaker 11: has been sentenced to eighteen years in prison. Stewart Rhodes

153
00:07:56,600 --> 00:07:58,840
Speaker 11: was sentenced by US District Judge I meet Meta in

154
00:07:59,040 --> 00:08:02,320
Speaker 11: Washington for action deemed amount of terrorism. The prison term

155
00:08:02,360 --> 00:08:04,560
Speaker 11: is the longest so far handed down in the government's

156
00:08:04,600 --> 00:08:07,520
Speaker 11: prosecution of more than one thousand people who stormed the

157
00:08:07,560 --> 00:08:10,360
Speaker 11: Capitol to try to disrupt the certification of Joe Biden's

158
00:08:10,400 --> 00:08:14,040
Speaker 11: election as president. The United States, along with coalition allies,

159
00:08:14,120 --> 00:08:16,520
Speaker 11: say they'll begin to train Ukrainian pilots to fly F

160
00:08:16,560 --> 00:08:19,800
Speaker 11: sixteen fighter jets shortly. Both Denmark and the Netherlands have

161
00:08:19,880 --> 00:08:22,160
Speaker 11: taken the lead on the initiative to have the pilots

162
00:08:22,200 --> 00:08:25,160
Speaker 11: ready to fly the American made jetting combat. Last week,

163
00:08:25,200 --> 00:08:27,720
Speaker 11: the Biden administration did in about face and decided to

164
00:08:27,800 --> 00:08:30,400
Speaker 11: allow countries to send the single engind fighters to Ukraine,

165
00:08:30,560 --> 00:08:33,360
Speaker 11: who have long been asking for them. South Korea and

166
00:08:33,440 --> 00:08:36,360
Speaker 11: the US have begun their biggest ever live fire drills.

167
00:08:36,640 --> 00:08:38,600
Speaker 11: The first day of the exercise took place just twenty

168
00:08:38,600 --> 00:08:40,880
Speaker 11: five miles from the border with North Korea, which has

169
00:08:40,880 --> 00:08:44,880
Speaker 11: threatened retaliation for the drills. Around two five hundred soldiers

170
00:08:44,880 --> 00:08:47,640
Speaker 11: and six hundred and ten pieces of equipment, which includes

171
00:08:47,679 --> 00:08:51,560
Speaker 11: fighter jets, tanks, and rocket launchers, participated. South Korean President

172
00:08:51,760 --> 00:08:55,360
Speaker 11: unsukyul has been advocating for joint drills between the two

173
00:08:55,400 --> 00:08:58,800
Speaker 11: allies after his predecessor moonjay In had suspended and scaled

174
00:08:58,840 --> 00:09:01,520
Speaker 11: them back during his reign, along with former President Trump

175
00:09:01,679 --> 00:09:04,160
Speaker 11: as both sides tried to improve relations with the North.

176
00:09:04,440 --> 00:09:06,760
Speaker 11: A man has been arrested in London after crashing his

177
00:09:06,800 --> 00:09:09,080
Speaker 11: car into the gates of Downing Street, the road which

178
00:09:09,120 --> 00:09:11,760
Speaker 11: includes the residence of the Prime Minister. The driver was

179
00:09:11,840 --> 00:09:15,240
Speaker 11: arrested by armed police officers who continued to investigate the incident.

180
00:09:15,520 --> 00:09:18,560
Speaker 11: There were no reported injuries following the crash, which occurred

181
00:09:18,600 --> 00:09:21,320
Speaker 11: around four to twenty in the afternoon. Prime Minister Rishi

182
00:09:21,360 --> 00:09:24,360
Speaker 11: Sunak's office did not comment if Sunek was in his

183
00:09:24,440 --> 00:09:27,360
Speaker 11: residence when the incident occurred. Global News twenty four hours

184
00:09:27,400 --> 00:09:29,840
Speaker 11: a day, powered by more than twenty seven hundred journalists

185
00:09:29,840 --> 00:09:31,960
Speaker 11: and analysts in more than one hundred and twenty countries.

186
00:09:32,320 --> 00:09:34,120
Speaker 11: I'm Dan Schwartzman. This is Bloomberg.

187
00:09:34,320 --> 00:09:36,960
Speaker 1: I'm Brian Curtis, along with Rashad Salama, and our guest

188
00:09:37,080 --> 00:09:42,600
Speaker 1: is Joan Feene, partner and portfolio manager at Advisors Capital Management. Joanne,

189
00:09:42,880 --> 00:09:46,240
Speaker 1: we laid out all the top stories today. Everybody knows

190
00:09:46,280 --> 00:09:49,559
Speaker 1: what's ongoing with the debt ceiling talks and FED positioning

191
00:09:49,640 --> 00:09:53,160
Speaker 1: in China's uneven recovery. You have to say one thing

192
00:09:53,160 --> 00:09:56,439
Speaker 1: about this year. It's been an excellent one for stock picking.

193
00:09:56,679 --> 00:09:57,839
Speaker 1: Do you think that continues?

194
00:09:58,360 --> 00:10:01,520
Speaker 13: Well, Hey, Brian, Yeah, I think so. And the reason

195
00:10:01,600 --> 00:10:04,319
Speaker 13: is there's still lots of sources of uncertainty. You mentioned right,

196
00:10:04,320 --> 00:10:07,440
Speaker 13: the debt sealing, but also you know the concern that

197
00:10:07,480 --> 00:10:09,480
Speaker 13: we could end up in a recession later on in

198
00:10:09,480 --> 00:10:12,319
Speaker 13: the year. Interest rates are going to remain high and

199
00:10:12,360 --> 00:10:15,240
Speaker 13: that's becoming an increasing challenge, certainly for some segments of

200
00:10:15,280 --> 00:10:16,360
Speaker 13: the consumer population.

201
00:10:16,480 --> 00:10:19,120
Speaker 3: All right, well certainly, but do you think that the

202
00:10:19,160 --> 00:10:22,000
Speaker 3: sin of reserve is in u of you getting it right?

203
00:10:22,320 --> 00:10:23,319
Speaker 9: Yeah? Broadly, Shad.

204
00:10:23,400 --> 00:10:26,160
Speaker 13: I mean, look, the inflation that emerged because of the

205
00:10:26,160 --> 00:10:28,520
Speaker 13: pandemic and the shortages and the ongoing strength and demand

206
00:10:28,559 --> 00:10:31,120
Speaker 13: because of all the government transfers certainly put the US

207
00:10:31,160 --> 00:10:33,600
Speaker 13: economy in a bit of a pickle. And it's you know,

208
00:10:33,679 --> 00:10:35,720
Speaker 13: it's it was severe and it's going to take a

209
00:10:35,720 --> 00:10:38,599
Speaker 13: long time to get inflation back down. You know, in

210
00:10:38,679 --> 00:10:40,720
Speaker 13: our view, they're doing the right thing here, and I

211
00:10:40,720 --> 00:10:43,240
Speaker 13: think they're trying to signal then interest rates are going

212
00:10:43,280 --> 00:10:45,240
Speaker 13: to have to remain high for longer than what the

213
00:10:45,280 --> 00:10:48,600
Speaker 13: market currently expects. Whether that leads us to a recession

214
00:10:48,720 --> 00:10:51,480
Speaker 13: in the form of a surge in unemployment has yet

215
00:10:51,520 --> 00:10:54,520
Speaker 13: to be determined, because that labor market is awfully strong.

216
00:10:55,040 --> 00:10:58,160
Speaker 13: So can the Fed balance Hey, maybe lower demand without

217
00:10:58,160 --> 00:10:59,960
Speaker 13: getting that unemployment up, that's the big question.

218
00:11:00,200 --> 00:11:02,400
Speaker 1: But Joan, don't you think where the rubber meets the

219
00:11:02,480 --> 00:11:07,040
Speaker 1: road is once you start seeing layoffs and recession kind

220
00:11:07,080 --> 00:11:11,240
Speaker 1: of settling in that even if inflation is a little high,

221
00:11:11,880 --> 00:11:15,200
Speaker 1: that the approach by the Fed may switch a little.

222
00:11:15,440 --> 00:11:17,680
Speaker 1: It may, you know, move a little bit more to

223
00:11:18,120 --> 00:11:22,600
Speaker 1: preventing a deep recession rather than bringing inflation down that

224
00:11:22,760 --> 00:11:26,520
Speaker 1: last mile from say four percent to two percent. Don't

225
00:11:26,559 --> 00:11:29,560
Speaker 1: you think that's likely given what we know about the FED, I.

226
00:11:29,520 --> 00:11:31,760
Speaker 9: Wouldn't say it's likely. Clearly they have a duel mandate.

227
00:11:31,800 --> 00:11:35,120
Speaker 13: You're right, they have to do stabilized prices and you know,

228
00:11:35,160 --> 00:11:39,640
Speaker 13: support maximum employment. However, the fedch credibility is at stake

229
00:11:39,679 --> 00:11:42,400
Speaker 13: here and that's what leads us to believe it's more

230
00:11:42,559 --> 00:11:45,160
Speaker 13: likely that they are going to keep pushing against the

231
00:11:45,200 --> 00:11:48,680
Speaker 13: inflation you know trends that we have, and so you

232
00:11:48,720 --> 00:11:50,920
Speaker 13: know it'd be unlikely for them to change that target

233
00:11:50,960 --> 00:11:52,720
Speaker 13: that's been communicated for just so long.

234
00:11:53,280 --> 00:11:56,000
Speaker 9: And you know, the data on the economy actually isn't

235
00:11:56,040 --> 00:11:56,400
Speaker 9: so bad.

236
00:11:56,400 --> 00:11:58,960
Speaker 13: We're certainly seeing some parts of the economy slow down,

237
00:11:58,960 --> 00:12:00,520
Speaker 13: but that's to be expected to give in the surge

238
00:12:00,559 --> 00:12:03,439
Speaker 13: parts of the economy saw during the during the COVID know,

239
00:12:03,520 --> 00:12:04,400
Speaker 13: height of the crisis.

240
00:12:04,840 --> 00:12:06,440
Speaker 9: But you know, look at the job numbers.

241
00:12:06,440 --> 00:12:09,480
Speaker 13: They've actually been revised over the last few weeks downwards

242
00:12:09,520 --> 00:12:09,960
Speaker 13: in terms.

243
00:12:09,840 --> 00:12:12,040
Speaker 9: Of those unemployment numbers the initial claims.

244
00:12:12,520 --> 00:12:15,040
Speaker 13: So it's not clear yet whether we're seeing any kind

245
00:12:15,040 --> 00:12:17,480
Speaker 13: of broad weakening and labor market remains.

246
00:12:18,440 --> 00:12:21,319
Speaker 1: You can't be you can't really be positive on equities

247
00:12:21,360 --> 00:12:22,040
Speaker 1: with your view.

248
00:12:22,559 --> 00:12:24,480
Speaker 9: We invest in specific equities.

249
00:12:24,559 --> 00:12:27,000
Speaker 13: So we typically hold between forty and fifty equities and

250
00:12:27,040 --> 00:12:30,480
Speaker 13: client portfolios in the various strategies that we offer, and

251
00:12:30,520 --> 00:12:32,920
Speaker 13: so we may not be positive on the overall.

252
00:12:32,559 --> 00:12:34,200
Speaker 9: Market like the S and P five hundred.

253
00:12:34,520 --> 00:12:36,440
Speaker 13: But as you started out saying, right, is this a

254
00:12:36,480 --> 00:12:37,960
Speaker 13: stock pickers situation?

255
00:12:38,040 --> 00:12:38,719
Speaker 9: I agree it is.

256
00:12:39,120 --> 00:12:41,800
Speaker 13: And so you know, you know, for example, you know

257
00:12:41,880 --> 00:12:44,600
Speaker 13: we since since Nvidia is in the news, right, you know,

258
00:12:44,679 --> 00:12:47,480
Speaker 13: we locked into AI many years ago. You know, I'm

259
00:12:47,480 --> 00:12:51,040
Speaker 13: a former semiconductor analyst, and so you know, looking at Nvidia,

260
00:12:51,160 --> 00:12:55,520
Speaker 13: A m D and Broadcom for example, all feed into

261
00:12:55,559 --> 00:12:58,240
Speaker 13: the growth of data centers. Then you layered AI on

262
00:12:58,280 --> 00:13:00,560
Speaker 13: top of that starting in the fall and became really

263
00:13:00,559 --> 00:13:03,920
Speaker 13: publicly understood. And you know, we've been in these stocks

264
00:13:03,960 --> 00:13:07,240
Speaker 13: for a long time. So there's room here still for

265
00:13:07,440 --> 00:13:10,600
Speaker 13: growth in real sales and in real profits in parts

266
00:13:10,600 --> 00:13:13,240
Speaker 13: of the economy, and I think that's where investors need

267
00:13:13,280 --> 00:13:14,160
Speaker 13: to focus their attention.

268
00:13:14,360 --> 00:13:15,840
Speaker 3: I want to pick up with that, and also just

269
00:13:15,880 --> 00:13:17,839
Speaker 3: to use the same analogy that Brian did and say,

270
00:13:17,840 --> 00:13:20,120
Speaker 3: you know where the rubber meats are is earnings. And

271
00:13:20,920 --> 00:13:23,520
Speaker 3: there are some people and indeed there's a lot of

272
00:13:23,520 --> 00:13:25,720
Speaker 3: evidence to show that these were no ways as bad

273
00:13:25,760 --> 00:13:29,079
Speaker 3: as fear and perhaps you know, the thing is that's

274
00:13:29,480 --> 00:13:31,240
Speaker 3: a shapey economies not heading off a cliff.

275
00:13:31,520 --> 00:13:34,360
Speaker 13: Yeah, I think that's that's certainly showing up in the data. Right,

276
00:13:34,400 --> 00:13:36,280
Speaker 13: all these earnings reports coming in a little bit better,

277
00:13:36,360 --> 00:13:38,280
Speaker 13: not all, but you know, on average coming in better

278
00:13:38,320 --> 00:13:41,400
Speaker 13: than expected. But we shouldn't, you know, overlook the areas

279
00:13:41,400 --> 00:13:44,600
Speaker 13: of weakness in the economy. You know, smartphones, PCs still

280
00:13:44,600 --> 00:13:47,040
Speaker 13: attle low. Looks like inventory is clearing, that's going to

281
00:13:47,040 --> 00:13:49,280
Speaker 13: be better. But the consumer you have to really watch

282
00:13:49,320 --> 00:13:50,760
Speaker 13: and differentiate the types of.

283
00:13:50,679 --> 00:13:51,880
Speaker 9: Consumers that are out there.

284
00:13:52,280 --> 00:13:55,040
Speaker 13: You know, I think the middle market of retail of

285
00:13:55,160 --> 00:13:58,319
Speaker 13: restaurants could face some real risk later on in the

286
00:13:58,400 --> 00:14:01,760
Speaker 13: year as consumers continue to tighten their budgets. That's why

287
00:14:01,800 --> 00:14:04,000
Speaker 13: we like instead, you know, a company like a TJ MAAX,

288
00:14:04,120 --> 00:14:07,679
Speaker 13: for example, show in the middle of the consumer market.

289
00:14:08,200 --> 00:14:12,640
Speaker 1: You mentioned Broadcom av Go there and also I mentioned

290
00:14:12,640 --> 00:14:16,080
Speaker 1: earlier that atvan Test in Japan was up sixteen percent.

291
00:14:16,559 --> 00:14:21,600
Speaker 1: Chip a chip testing devices company a TSMC rally twelve percent.

292
00:14:22,360 --> 00:14:24,680
Speaker 1: There are a lot of other companies that are benefiting

293
00:14:24,720 --> 00:14:28,720
Speaker 1: from this AI enthusiasm. How are you positioning there.

294
00:14:28,840 --> 00:14:31,160
Speaker 13: Yeah, so you know, we have different types of strategies

295
00:14:31,160 --> 00:14:33,120
Speaker 13: in our growth strategy. That's probably where we have the

296
00:14:33,160 --> 00:14:35,960
Speaker 13: most AI exposure, and it's you know, it's in Nvidia,

297
00:14:36,400 --> 00:14:41,240
Speaker 13: It's Broadcom, Microsoft, Amazon Service now on the software side,

298
00:14:41,280 --> 00:14:45,760
Speaker 13: Splunk on the software side, AMD more chips, Qualcom is

299
00:14:45,840 --> 00:14:49,280
Speaker 13: probably a little bit less exposed to AI, but potentially

300
00:14:49,320 --> 00:14:51,200
Speaker 13: we don't own it in our growth strategy. We owned

301
00:14:51,200 --> 00:14:54,200
Speaker 13: it imbalanced and then imbalanced, you know, which is a

302
00:14:54,200 --> 00:14:55,479
Speaker 13: more conservative strategy.

303
00:14:55,760 --> 00:14:57,680
Speaker 9: We don't go for as much as those are really

304
00:14:57,720 --> 00:15:00,640
Speaker 9: high volatile stocks. But Taiwan Semi is a there.

305
00:15:00,640 --> 00:15:04,560
Speaker 3: So actually, as you foremost semiconductor analyst Joe, and you

306
00:15:04,600 --> 00:15:08,760
Speaker 3: know what separates AMD from the rest NOTMD I beg

307
00:15:08,800 --> 00:15:13,160
Speaker 3: your Pardonervidia given what it actually produced in terms of

308
00:15:13,200 --> 00:15:15,720
Speaker 3: its results and its forecast. Nobody else has beaten that

309
00:15:15,840 --> 00:15:19,560
Speaker 3: bullish and you know, is anybody like that out there?

310
00:15:19,680 --> 00:15:20,520
Speaker 3: Is it just a one off?

311
00:15:20,600 --> 00:15:20,760
Speaker 4: You know?

312
00:15:20,840 --> 00:15:23,920
Speaker 13: It really does come down to the technology, and what

313
00:15:24,120 --> 00:15:26,680
Speaker 13: Nvidia has developed over time is a certain type of

314
00:15:26,720 --> 00:15:31,480
Speaker 13: graphic processing unit a GPU that can serve as a sidecar,

315
00:15:31,560 --> 00:15:35,040
Speaker 13: if you like, to the main processor in the servers CPU,

316
00:15:35,080 --> 00:15:38,800
Speaker 13: and that acceleration of computation is everything you need for AI.

317
00:15:39,200 --> 00:15:44,840
Speaker 1: Joined feoene partner and portfolio manager Advisor's Capital Management. This

318
00:15:45,160 --> 00:15:47,880
Speaker 1: is Bloomberg Daybreak Asia, your morning brief on the story

319
00:15:47,960 --> 00:15:51,360
Speaker 1: is making news from Hong Kong to Singapore and Wall Street.

320
00:15:51,480 --> 00:15:55,160
Speaker 3: Look for us on your podcast feed every day, on Apples, Spotify,

321
00:15:55,200 --> 00:15:57,160
Speaker 3: and anywhere else you get your podcast.

322
00:15:57,480 --> 00:15:59,960
Speaker 1: You can also listen live each day on Bloomberg eleven

323
00:16:00,160 --> 00:16:02,520
Speaker 1: three to zero in New York, Bloomberg ninety nine to

324
00:16:02,560 --> 00:16:05,760
Speaker 1: one in Washington, Bloomberg one oh sixty one in Boston,

325
00:16:06,080 --> 00:16:08,600
Speaker 1: and Bloomberg nine sixty in San Francisco.

326
00:16:09,040 --> 00:16:11,720
Speaker 3: Our flagship New York station is available on your Amazon

327
00:16:11,800 --> 00:16:16,720
Speaker 3: Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.

328
00:16:16,880 --> 00:16:20,280
Speaker 1: Listen coast to coast on the Bloomberg Business app, Sirius

329
00:16:20,400 --> 00:16:24,640
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

330
00:16:24,720 --> 00:16:27,200
Speaker 1: dot Com. I'm Brian Curtis.

331
00:16:26,880 --> 00:16:27,840
Speaker 9: And I'm rashand Slam.

332
00:16:28,040 --> 00:16:30,600
Speaker 3: Join us again tomorrow for all the news you need

333
00:16:30,640 --> 00:16:33,560
Speaker 3: to start your day, right here on Bloomberg day Break

334
00:16:33,560 --> 00:16:36,000
Speaker 3: Asia