WEBVTT - Single Best Idea with Tom Keene: Dan Ives & Matt King

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, a single.

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<v Speaker 2>Best idea and an extraordinary Wednesday. Just to paint the

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<v Speaker 2>picture for you, Asian markets open at seven pm. In all,

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<v Speaker 2>not just me, everybody within the Bloomberg world. We're glued

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<v Speaker 2>to the wonderful Bloomberg terminal app that's on the cell phone.

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<v Speaker 2>Trust me, folks, It's changed my life and everybody else's life.

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<v Speaker 2>And there's a little bit of tension out there, and

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<v Speaker 2>you get a couple hours sleep and you see what

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<v Speaker 2>Goal's doing and tension overnight, and then somewhere in the

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<v Speaker 2>vicinity of three am, China comes out with headlines boom boom,

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<v Speaker 2>boom boom, and things change and they're changing minute by minute,

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<v Speaker 2>headline by headline, and simply today we saw a deterioration

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<v Speaker 2>in price around that are individual companies struggling, like Nvidia

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<v Speaker 2>coming out with some form of write down. AMD during

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<v Speaker 2>the show today coming out with some form of right down.

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<v Speaker 2>It was a good time to catch up with Daniel Ives.

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<v Speaker 2>He's at Wedbush, he's been an Uber bowl and Apple

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<v Speaker 2>he's been correct and we wanted to get a relook

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<v Speaker 2>at Apple and also the underlying force a free cash

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<v Speaker 2>flow for the mag seven.

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<v Speaker 3>Even you know when you scenario and sort of put

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<v Speaker 3>pressure on the model and stress test that cash flow

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<v Speaker 3>comes down five percent, maybe seven percent. The reality is

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<v Speaker 3>is that a lot of that on Apple I think

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<v Speaker 3>starts to now get fact and it comes down to

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<v Speaker 3>with China numbers unless these TIFFs in their current state

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<v Speaker 3>stick for ninety days and longer than to me at

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<v Speaker 3>Apple content right here, I mean it is an Emu

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<v Speaker 3>Dan ives.

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<v Speaker 2>He's just brilliant, particularly the relationship of Apple and mister

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<v Speaker 2>Cook with Beijing. Really really enjoyed having him in today.

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<v Speaker 2>There are names from the past which at one time

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<v Speaker 2>were hugely important because of their intellect and their courage

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<v Speaker 2>to write and execute strategy that are forever One of

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<v Speaker 2>those is Matt King. He's from England, out of Cambridge,

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<v Speaker 2>and there was a period where he was absolutely definitive

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<v Speaker 2>at JP Morgan and particularly at City Group in providing strategy.

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<v Speaker 2>It's inaccurate to say he predicted Lehman, but he was

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<v Speaker 2>one of the people way way out front on the

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<v Speaker 2>stresses of leverage in the trust market. He spends a

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<v Speaker 2>lot of time thinking about fixed income and trust. What

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<v Speaker 2>a joy to catch up with Matt King of Satori Insight.

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<v Speaker 4>People have been excited about the online the basis trades

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<v Speaker 4>and some of the moves and swap spreads and pointing

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<v Speaker 4>to hedge funds, And yes, there has been this big

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<v Speaker 4>pickup leverage and reproactivity, especially for multi strap funds, but

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<v Speaker 4>I don't think that's the problem here. If anything, I

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<v Speaker 4>would say that it's almost a diversifying element relative to

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<v Speaker 4>all the long only money that is poured in over

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<v Speaker 4>the last decade or so. And for me, there is

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<v Speaker 4>this scary thing that sort of all my career, I

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<v Speaker 4>focus on the thing that's about to blow up, and

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<v Speaker 4>each time the crises seem to get bigger and bigger.

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<v Speaker 4>The debt that's out there now is across non financial

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<v Speaker 4>sectors as a whole, and more than anything with governments,

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<v Speaker 4>including the US government. But it's not the financial leverage

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<v Speaker 4>in quite the same way as it was previously, and

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<v Speaker 4>on the one hand, that makes it slower burning. But

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<v Speaker 4>on the other hand, the feedback loop from markets through

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<v Speaker 4>to the economy is larger ever than it's been in

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<v Speaker 4>the past.

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<v Speaker 2>Matt king f Story really can't say enough about that.

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<v Speaker 2>I know Paul Sweeney's really focused on private credit is

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<v Speaker 2>a new shiny thing I'll have to see as we

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<v Speaker 2>struggle through this crisis. Thank you for your support and

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<v Speaker 2>your commute across the nation. Really appreciate the interest in

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<v Speaker 2>ninety nine one FM in Washington, ninety two nine in Boston,

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<v Speaker 2>and Bloomberg eleventh three OO in New York, and all

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<v Speaker 2>the other ways you listen each morning out on YouTube podcasts.

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<v Speaker 2>This is single best idea