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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Apple, Cocklay and Android Auto with the Bloomberg

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Speaker 1: Business app. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: Tim Craig d Global Chief Content Officer for Bloomberg Intelligence.

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Speaker 2: He's been one of the leaders from day one for

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Speaker 2: Bloomberg Intelligence, this little experiment in investment research that we've

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Speaker 2: done here at Bloomberg. He's run businesses for us in

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Speaker 2: Hong Kong, London, New York, so he's been all over

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Speaker 2: based in London right now, but he's here in New York.

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Speaker 2: So we've figured we get him in studio to talk

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Speaker 2: about some of the research coming out of Bloomberg Intelligence. Tim,

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Speaker 2: I know you guys published time to time kind of Hey,

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Speaker 2: here are ten companies we really think you should pay

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Speaker 2: attention to. We think we've got some insights into some

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Speaker 2: of these companies. Maybe we've IDENTI identified some catalysts that

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Speaker 2: investors can keep it or that might move these stocks

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Speaker 2: one way or the other. What are you guys looking

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Speaker 2: at these days?

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Speaker 3: So just a little bit of context if that's okay.

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Speaker 3: So we have a broad set of what we call

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Speaker 3: focus ideas, and these are high conviction, bottom up, fundamentally

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Speaker 3: oriented calls on companies where we see something that the

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Speaker 3: market doesn't seem to get and that they're catalyst ahead

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Speaker 3: that can change the market mentality. There's about one hundred

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Speaker 3: and twenty five hundred and thirty of these things globally

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Speaker 3: across all sectors right now, and at the beginning of

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Speaker 3: every quarter we'll zero in on ten where we think

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Speaker 3: that there are catalysts ahead right now in the upcoming quarter.

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Speaker 3: A lot of that will revolve around It could be

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Speaker 3: a new product announcement, it could be earnings results that

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Speaker 3: really hit home on a given element. Yeah, that's that's

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Speaker 3: the context I'm going to ask Matt.

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Speaker 2: Matt Miller's wiring in and saying, hey, ask about Ferrari

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Speaker 2: because that's one of the names on the list, and

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Speaker 2: Michael Dean, our auto analysty covers all those cool European automakers.

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Speaker 4: What's you to think about Ferrari here?

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Speaker 3: Yeah, you know, it's interesting because for as got a

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Speaker 3: couple of things going on right up front. They're important

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Speaker 3: new cars coming, new models, the f eighty is their

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Speaker 3: their next big supercar. You've got the loose Lucee which

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Speaker 3: is their full electric that's coming out, and there's Those

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Speaker 3: are two of twenty odd models that are coming through

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Speaker 3: over the course in the next three years. But importantly

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Speaker 3: these are now starting to wrap and we think that

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Speaker 3: when you get in and see the next earnings reporting period,

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Speaker 3: you will see the impact. It is interesting because it's

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Speaker 3: a broader issue with the European autos where there was

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Speaker 3: such high hopes about EV transit transition and China being

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Speaker 3: a big market and both of those turn pair shape. Wow,

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Speaker 3: and so last year was a was a big issue.

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Speaker 3: Look at any of these guys, Ferrari, BMW et cetera.

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Speaker 3: And we think Ferrari is looking to accelerate.

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Speaker 2: Said here in the US, and folks, you can tell

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Speaker 2: from Tim's accent he's he's from down south.

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Speaker 4: But we've he's been all over the world.

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Speaker 2: Here in US team, you've probably heard EV things kind

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Speaker 2: of stalled out. I'm being generous there calling stalled out.

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Speaker 2: How about the rest of world? Yeah, it's interesting.

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Speaker 3: We just published our semi annual buyer survey that we

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Speaker 3: do one in US, one in Europe, one in Asia

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Speaker 3: and in Europe, it really does depend on the home market.

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Speaker 3: Scandinavia still cares about EV's no surprise. Germany, give me,

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Speaker 3: give me a petrol gasoline based engine. Generally speaking, there's

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Speaker 3: more appetite for hybrids across Europe than what was full

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Speaker 3: on plug in electric vehicles, and clearly over here it's

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Speaker 3: all about gasoline. And you know, if you're going to

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Speaker 3: do electric, you're going to do a hybrid. You're not

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Speaker 3: going to do a You're not going to do a

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Speaker 3: battery electric.

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Speaker 2: Yeah, for my final offspring, he goes to school in

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Speaker 2: California where gas is like six dollars a gallon.

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Speaker 4: So we got him the hybrid and it's been perfect.

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Speaker 4: Well I've got a battery electric.

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Speaker 3: I love it.

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Speaker 4: But hey, you live in London.

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Speaker 2: In London, yeah, so talk to us just browall the

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Speaker 2: and kind of related topic just esg in general. Environmental sustainability, governance,

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Speaker 2: all that kind of stuff hit a brick wall here

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Speaker 2: in the US, but I understand that's not the case

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Speaker 2: in Europe and smother parts.

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Speaker 4: Yes and no.

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Speaker 3: So there's a series of client events that I get

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Speaker 3: involved with on an ongoing basis that go around Europe

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Speaker 3: along with my team, and speaking of Scandinavia, that's the

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Speaker 3: heart and soul of ESG, who adopted it most aggressively.

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Speaker 3: They don't call it ESG anymore. Okay, they call it sustainable,

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Speaker 3: sustainable financiers sustainability. It's generally under that moniker and you

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Speaker 3: could say, oh, you know, we just changing names. But

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Speaker 3: it's about managing companies well. And part of this is

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Speaker 3: management governance, part of it at social issues, part of

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Speaker 3: it is environmental, and I think it seems to be

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Speaker 3: making a move towards actually don't call it ESG and

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Speaker 3: tick a box, which was kind of the thing before,

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Speaker 3: think about how this is a way that you can

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Speaker 3: actually manage a company better and that actually is good

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Speaker 3: for shareholder returns. We've done some pretty interesting work. There's

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Speaker 3: a report actually the team here, our BI team here

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Speaker 3: had put out about ESG two point zero, and that

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Speaker 3: is all about actually driving better companies.

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Speaker 5: Stay with us more from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business app demand wherever you get

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Speaker 1: your podcasts. Or watch us live on YouTube.

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Speaker 2: One of the big winners in the tech space consistently,

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Speaker 2: there's been Micron Technology sucks up three percent today, it's

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Speaker 2: up thirty two percent year to date, up four hundred

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Speaker 2: and eighty five percent on the trailing twelve months, but

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Speaker 2: it is down about twenty percent from a time.

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Speaker 4: We're going to get the latest reporting.

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Speaker 2: On this big, big tech stock four hundred twenty five

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Speaker 2: billion dollars in market cap. We can do that today

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Speaker 2: with you can leave Bloomberg Asia Stocks reporting Yukon.

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Speaker 6: Thanks for joining me. You're based in Seoul, but you're

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Speaker 6: here in New York today.

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Speaker 4: That's right.

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Speaker 2: Great to have you in our studio. Just say about

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Speaker 2: Micron Technologies. It might not be a name that a

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Speaker 2: lot of US investors know, but it's a huge tech

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Speaker 2: stock and it's having a big run here. What's the

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Speaker 2: story here?

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Speaker 7: Yeah, sure, so Microne is the biggest the maker of

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Speaker 7: this memory device is called DRAM dynamic and random at

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Speaker 7: this memory which is a crucial and facing a bottlenight

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Speaker 7: in this because there's a crucial device for artificial intelligence.

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Speaker 7: Transformation is the largest one to supply to in the

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Speaker 7: United States, but in the world it is the third

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Speaker 7: largest after after two Korean bigger rivals, and one of

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Speaker 7: that Korean rival is going to reviewing possible listing of

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Speaker 7: the ADRs in the United States. So yeah, so that's

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Speaker 7: that's going to If that happens, that's going to end

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Speaker 7: the micro status as the only US listed supplier of

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Speaker 7: this dynamic and random access memory, a crucial memory ship

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Speaker 7: device for the artificial intelligence transformation.

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Speaker 5: And for those investors looking to be opportunistic as Khinex

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Speaker 5: trades at a lower valuation than Microna as well, So

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Speaker 5: talk through what investors are saying about that.

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Speaker 3: Yeah.

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Speaker 7: Absolutely, Even though micron is smaller than the current rivals,

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Speaker 7: it's been trading at a slight premium than those Korean

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Speaker 7: rivals because it's the only one listed out of the

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Speaker 7: three biggest memory makers in the world listed in the

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Speaker 7: United States. So it's been enjoying that such slight premium

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Speaker 7: over the Korean memory makers. However, if one of the

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Speaker 7: rivals s k Henex lists ad RS in the United States,

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Speaker 7: that premium may come to end because Eska Highnis could

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Speaker 7: be could enjoy better access, easier access to US based

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Speaker 7: retail investors, and it could also possibly gain access to

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Speaker 7: the ETF that tracks US listed chip stocks. There's a

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Speaker 7: huge flow there. Hatch funds can enjoy new long short

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Speaker 7: opportunity to play if the ESKE HIGHNEZ joins the chip index,

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Speaker 7: possibly that are traded in the United States. So all

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Speaker 7: these could possibly end the premium that micro has been

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Speaker 7: enjoying over is bigger Stou's Korean rivals.

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Speaker 5: Okay, so the bigger South Korean rivals are es K Henex.

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Speaker 5: There's also Samsung Electronics. Is that companies shares traded in

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Speaker 5: the US at all, either as an ADR or as

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Speaker 5: an OTC.

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Speaker 7: So Samsung Electronics is not traded in the United States. Also,

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Speaker 7: most US based funds, they probably gain access to the

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Speaker 7: Samsung Electronics through the South Korea South Korea ETF, which

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Speaker 7: has a big exposure to chip stocks such as Samsum.

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Speaker 7: Samsung is the largest member in the South Korea's benchmark COSBY,

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Speaker 7: so that's how they gain the indirect access to the

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Speaker 7: companies like Samsung, which is actually reporting its preliminary earnings tomorrow.

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Speaker 2: How do why are all the great chip memories stocks

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Speaker 2: in Korea?

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Speaker 6: What's the history?

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Speaker 7: Oh yeah, that's actually interesting question. So there has been

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Speaker 7: a long history of South Koreat for having the memoryship

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Speaker 7: makers since the nine eighties and nineties. It first began

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Speaker 7: as mimicking mimicking the technology that Japan chip makers had

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Speaker 7: and then using the cheap labors and also massive capital

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Speaker 7: investment that they could have. But it's been becoming the

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Speaker 7: world's largest it's become the world's largest supplier of the

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Speaker 7: memberships and s k.

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Speaker 6: Heine's thinking about an ADR in US.

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Speaker 2: That's the story.

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Speaker 6: When will we know if they're going to do that?

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Speaker 7: So they said in the SEC confidential filing that they

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Speaker 7: will do that within this year. So they and there's

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Speaker 7: seen local media reports of hiring the bankers for that.

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Speaker 4: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 4: Let's get back to technology.

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Speaker 2: I'm looking at the Nasdaq here up about a quarter

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Speaker 2: of one percent here today.

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Speaker 4: A lot to talk about here.

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Speaker 2: I'm going to go to Anna rog Rana, Senior Tech

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Speaker 2: an all step Bloomberg intelligence, Honra, Let's start with Apple here.

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Speaker 2: What are expectations, if any, for Apple AI Siri. I mean,

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Speaker 2: it's been a wait and see kind of approach, which

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Speaker 2: historically has worked for Apple, but I guess the concern

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Speaker 2: is building that may be either waiting too long here

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Speaker 2: to really try to create an AI portfolio or tailwind.

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Speaker 8: So, Paul, I'll go back in November of last year

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Speaker 8: when Malcolm and reported that Apple maybe you Google's Gemini

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Speaker 8: technology for at CER, and you know, one of our

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Speaker 8: calls at that point was that if this happens, when

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Speaker 8: you look at Apple's low capex model, people are going

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Speaker 8: to appreciate it in twenty twenty six as everybody else

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Speaker 8: is going to spend hundreds of billions of dollars. You

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Speaker 8: can go back and see the valuation of Apple in

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Speaker 8: the last three months or so. I mean, it's really

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Speaker 8: divergent when it when you compare it to Apple versus Microsoft,

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Speaker 8: or Apple versus any of the other you know, large

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Speaker 8: tech company. And that's because they're only spending what twelve

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Speaker 8: to fifteen billion dollars in capex, which is not that

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Speaker 8: much more than what they did four years ago. But

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Speaker 8: look at Microsoft, it's going to go up to one

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Speaker 8: hundred and sixty billion in CAPEX. So from a Capex

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Speaker 8: point of view, the Apple story is working. What we

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Speaker 8: are most excited about is going into June when their

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Speaker 8: next developer conference comes in and market has done a

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Speaker 8: great job of telling all of us that the upgrade

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Speaker 8: version of City comes out with the help of Google's

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Speaker 8: Gemini models, and if they are able to pull that off,

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Speaker 8: that's another change in the narrative of Apple being an

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Speaker 8: AI laggard to somebody who's actually, you know, found a

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Speaker 8: way to capitalize on it.

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Speaker 5: But does Apple just need to do what kind of

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Speaker 5: catch up with everyone else, or does it need to

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Speaker 5: really wow consumers and iPhone users with what series capable

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Speaker 5: of because it's fallen it feels like it's fallen pretty

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Speaker 5: far behind in this AI race.

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Speaker 8: Yeah, that's a fair point. But at the same time,

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Speaker 8: they're not in the selling of the model business. They

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Speaker 8: want to make sure that the most important distribution that

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Speaker 8: they have, which is iOS, is as good as Android

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Speaker 8: so that they don't lose market share to Samsung. And

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Speaker 8: right now, all they have to do is honestly catch

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Speaker 8: up and just give similar features to what is available

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Speaker 8: on Android. In this particular case, I think the one

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Speaker 8: news that really got our attention was if you have

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Speaker 8: then ext version of CIT, you can go and call

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Speaker 8: on any of the AI models out there. So you

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Speaker 8: can go and call on you know, whether it's Chat,

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Speaker 8: GPT or Gemini or anybody else that you have downloaded,

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Speaker 8: which means you will get the best of everything. But

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Speaker 8: your point of interaction is still Apple's iOS system. You're

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Speaker 8: not leaving that and going somewhere else.

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Speaker 2: What else will you be looking for this June Get

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Speaker 2: Together product launch.

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Speaker 8: I think this is the most significant upgrade of adding

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Speaker 8: more AI capabilities. I think that's the number one. The

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Speaker 8: second one is can we get into a point that

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Speaker 8: they can give us a hint whether this conversational AI

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Speaker 8: going into the phone and talking can take other actions. So,

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Speaker 8: for example, will it be able to do some work

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Speaker 8: on Apple card play down the road, because once you

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Speaker 8: start using that, I think that's the next phase of

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Speaker 8: big development for all of us, where AI agents can

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Speaker 8: go out and do shopping for you or do other things.

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Speaker 8: But the point of intersection is still the iOS or

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Speaker 8: your interaction with your phone.

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Speaker 5: And very quickly before we let you go on rog

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Speaker 5: oracle naming a new CFO. What will you be watching

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Speaker 5: for listening for from her?

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Speaker 8: I think the number one thing that for us is

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Speaker 8: they've found somebody from the power in the electric industry,

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Speaker 8: which is probably the biggest barklerneck that we have in

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Speaker 8: building data centers right now. So it's very clear to

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Speaker 8: us where article's future is as far as the management

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Speaker 8: is concerned. You know, they are looking to deploy more

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Speaker 8: in that area. The biggest question for me is where

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Speaker 8: are their next acquisitions going to be. Are they going

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Speaker 8: to be more on the industrial side, or are they

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Speaker 8: going to stick to software?

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Speaker 4: Say with us more from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto

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Speaker 1: with the Bloomberg Business app. Listen on demand wherever you

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Speaker 1: get your podcasts, or watch us live on YouTube.

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Speaker 5: All right, let's not bring in Catherine Shaglinsey right now.

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Speaker 5: She is our US finance team leader on Jamie Diamond's

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Speaker 5: annual shareholder letter, And this is something that Jamie Diamond's

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Speaker 5: been doing for years. He's kind of the spokesman, the

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Speaker 5: ambassador for the industry at large. And it used to

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Speaker 5: focus on things like the Fortraits balance sheet of JP Morgan,

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Speaker 5: but in recent years it's become kind of much bigger

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Speaker 5: and broad ranging and talking about policy in the US's

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Speaker 5: place in the world. What's the big takeaway from his

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Speaker 5: latest letter.

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Speaker 9: Yeah, well, I think you could see that in this letter. Well,

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Speaker 9: he definitely talked about JP Morgan and the risks facing

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Speaker 9: the bank and how the bank was weathering big changes

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Speaker 9: like AI and all that stuff. He really spent like

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Speaker 9: the biggest portion on critical issues facing America, and he

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Speaker 9: really dug into these geopolitical issues, including he mentioned that

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Speaker 9: Iran war. He also mentioned the war in Ukraine. But

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Speaker 9: he also talked a lot about what the Bank and

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Speaker 9: what other citizens need to be doing to like bolster

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Speaker 9: the US make sure we don't fall behind.

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Speaker 8: You know.

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Speaker 9: He ragged on Europe, which has been sort of a

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Speaker 9: favorite talking point of his, to say that they need

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Speaker 9: to be doing more. And I think you've seen that

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Speaker 9: a lot in how JP Morgan. They've been announcing all

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Speaker 9: these initiatives, so like the Security and Resiliency Initiative, they

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Speaker 9: haven't the American Dream Initiative. It's all these ventures that

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Speaker 9: they have now to focus quite a bit on certain

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Speaker 9: aspects of the US economy, and I think that's Jamie

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Speaker 9: really leaning into this sort of elder statesman role he

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Speaker 9: has in the industry.

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Speaker 6: Any hint as to succession thoughts.

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Speaker 9: No hint is succession, And he was definitely like still

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Speaker 9: classic Jamie's sort of you know, cheering on the bank

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Speaker 9: and looking for the long term.

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Speaker 2: So but he did say that many companies will only

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Speaker 2: thrive if their countries thrive. Now, is that behind the

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Speaker 2: plan to deploy more than one trillion dollars to ensure

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Speaker 2: US remains strong.

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Speaker 6: I mean they're putting their money where their mouth is.

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Speaker 9: Yeah, they're putting their money where their mouth. There's more

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Speaker 9: than one trillion over a decade, you know, and I

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Speaker 9: think it is financing a lot of these industries that

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Speaker 9: will be key to the military and to other sort

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Speaker 9: of like he brought up critical minerals, all these different businesses,

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Speaker 9: and he's brought in help from the outside. Todd Combs

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Speaker 9: from Berkshire is helping to lead that venture, part of

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Speaker 9: that venture, and so yeah, I think it is a

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Speaker 9: little bit of him sort of leaning into sort of

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Speaker 9: how does the bank relate to sort of geopolitics and

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Speaker 9: it's obviously quite a tumultuous time now for around the globe,

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Speaker 9: so I think he was really trying to speak to investors'

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Speaker 9: concerns about them.

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Speaker 5: And of course he also spoke to investor concerns about

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Speaker 5: private credit. This is something he has warned about in

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Speaker 5: the past, right, calling them cockroaches. If you see one,

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Speaker 5: there's more to come. What has he said about private

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Speaker 5: risk this time around?

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Speaker 9: So in some ways I think it was tempered, right,

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Speaker 9: Like he mentioned private credit, he doesn't believe it will

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Speaker 9: likely be a systemic risk, So I think that was

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Speaker 9: in you know, relation to other parts of the market

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Speaker 9: and the size of how private credit relates to that.

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Speaker 9: But he did notice that, like you know, especially now,

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Speaker 9: we're seeing all these funds faced redemption requests that are

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Speaker 9: quite high, and he said, you know, that's likely to

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Speaker 9: continue because this industry doesn't have a great transparency and

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Speaker 9: not not you know, easily marketing stuff. So I think

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Speaker 9: it does create among investors sort of this concern of like,

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Speaker 9: you know, do you want to be the last out

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Speaker 9: if stuff does go wrong? And if Mark's our off base.

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Speaker 1: This is the Bloomberg Intelligence Pod past available on Apple,

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Speaker 1: Spotify and anywhere else you get your podcasts. Listen live

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