Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Single best idea, what a couple of days has spend.
Speaker 2: We going to CPI tomorrow in the retail sales conbo
Speaker 2: at eight thirty. We'll have all our covers there. Michael
Speaker 2: McKee leading our coverage for all of Bloomberg Media. But
Speaker 2: just already an eventful week. I mean a market that's
Speaker 2: not doing anything. You look at the screen and the
Speaker 2: vix is like thirteen whatever, and you can first glance
Speaker 2: at the Bloomberg launch pad and you're like, I can
Speaker 2: take off the month, and then you look at some
Speaker 2: of the nuances out there. I'll give you two nuances
Speaker 2: right now. One is this dash to utilities because AI
Speaker 2: is going to need all sorts of new electricity, and
Speaker 2: the fact is utilities have done a moonshot. We'll get
Speaker 2: the copper in a moment. And the other is what's
Speaker 2: going on in the Pacific Rim And just quietly early
Speaker 2: this morning, euro yen showed weekend strong euro and I'm
Speaker 2: sorry they got to go into the Japanese evening and
Speaker 2: discuss this. We'll have all of that across our Asia coverage.
Speaker 2: Von Mann leading so much of that effort and Steve
Speaker 2: Engel with his great reporting. But look for that based
Speaker 2: on of Hong Kong, but also out of Japan as well.
Speaker 2: I'm really watching euro Yen for a third Japanese intervention.
Speaker 2: There's always a good intervention when Jeffrey Curry shows up.
Speaker 2: He taught for years at his University of Chicago. The
Speaker 2: great segment here for the longer podcast of the microeconomics
Speaker 2: of oil, the shift that we're seeing in copper. But
Speaker 2: here is Jeff Curry on copper in the new sustained rally,
Speaker 2: the higher price of copper.
Speaker 3: AI's you know, chips and copper. You need the chips,
Speaker 3: but then you need the electrical wiring to be able
Speaker 3: to power those chips. And one of those chips, the
Speaker 3: video chips GPUs, consume as much power as the average
Speaker 3: American household. So you're going to need a lot of
Speaker 3: grid connection to be able to accommodate that type of growth.
Speaker 3: And you know what is the bottleneck for that, It's copper.
Speaker 3: So all roads lead to copper, whether if it's military, spen, AI,
Speaker 3: data centers, Green Capex, they all point to copper.
Speaker 2: Jeff Curry, of course, iconic at Golden Sex now holding
Speaker 2: court at Carlisle groups as well. On the equity market,
Speaker 2: some spirited discussion today, just no other way to put it,
Speaker 2: a real debate about valuation, about the wall of money
Speaker 2: that's out there comfortable with five percent money market fund.
Speaker 2: Somebody on the live chat on YouTube said, hey, I
Speaker 2: got a six month CD five point three five percent.
Speaker 2: That gets your attention, But you look back at the
Speaker 2: challenges the markets had, and Julian Ommanuel, working at Evercore ISI,
Speaker 2: would make clear these are valuation dynamics. The simplicity route,
Speaker 2: the one I do not recommend, is to look at
Speaker 2: price is compared to earnings, and you get some form
Speaker 2: of valuation. When you look at price as compared to earnings,
Speaker 2: I would look much more at least drag cash flow
Speaker 2: into it, that cash after capex, and of course with
Speaker 2: the fancy stocks the Magnificent seven, there's some real capex
Speaker 2: dynamics right now, or I'd really look at return on
Speaker 2: an invested capital. But anyways, the valuation phrase always within
Speaker 2: the media comes back to pe Julian Emmanuel of Evercore ISI.
Speaker 1: The entire down draft in twenty twenty two and really
Speaker 1: the other side in twenty twenty three, it was very
Speaker 1: valuation driven. Okay, we understand that the earnings have migrated
Speaker 1: towards for the most part, that's select seven, but at
Speaker 1: the index level, the earnings have stayed roughly the same.
Speaker 1: The thing about twenty twenty four which convinces us that
Speaker 1: even though we think you have a correction in front
Speaker 1: of you, is that the bullmarket has further legs. Is
Speaker 1: you're actually going to see earnings growth for the first
Speaker 1: time in two years. The surprises were much larger than
Speaker 1: expected because revisions went down prior to the start of
Speaker 1: the quarter. There isn't really an explanation other than perhaps
Speaker 1: the message of what was a subpart GDP first quarter.
Speaker 1: But you're basically on track five and a half maybe
Speaker 1: six percent earnings growth, and from our view, that's good.
Speaker 1: We expect roughly that rate of growth throughout the year.
Speaker 1: But the problem for the markets is the market expects
Speaker 1: that number to be upwards of ten percent.
Speaker 2: Julian Emmanuel evercore Isi and I do want to make
Speaker 2: note Gina Martin Adams of Bloomberg Intelligence has been way
Speaker 2: out front with the earnings and revenue surprises that we've seen.
Speaker 2: I should point out home Depot showing up today with
Speaker 2: a pretty tepid, I'm sorry, seven point four percent mortgage
Speaker 2: influenced earnings report. We'll get much more on that in
Speaker 2: the coming days, I'm sure from our guests and from
Speaker 2: Bloomberg Intelligence as well. We're out on Apple car Play
Speaker 2: and Android play. This is growing out. The statistics are
Speaker 2: unreal on this revolution of putting fancy communications into cars.
Speaker 3: Now.
Speaker 2: Obviously they're going into new cars, new cars, new cars,
Speaker 2: and we look at Apple car Play as a three
Speaker 2: year project, five year project as we see a rollover
Speaker 2: changing within the automobile business towards these sophisticated dashboards where
Speaker 2: you can find all of what we do with Bloomberg Podcasts,
Speaker 2: all the radio interviews, even Carrol Master. It's just amazing.
Speaker 2: Carrol Master's on Apple car Play as well. Out of YouTube.
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Speaker 2: other products that we have on Bloomberg podcast had mentioned
Speaker 2: Matt Miller's Hot Pursuits something to watch for and David
Speaker 2: Girl lighting up big take as well from New York
Speaker 2: City inflation tomorrow. This is single best idea