WEBVTT - TSMC Chip Demand and Taiwan War Games

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<v Speaker 1>This is Bloomberg Daybreak Asia for this Friday, April twenty

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<v Speaker 1>first in Hong Kong, Thursday April twentieth in New York,

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<v Speaker 1>and coming up today.

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<v Speaker 2>The Biden administration may be seeking to limit investment in

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<v Speaker 2>key hearts of China's economy by US businesses.

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<v Speaker 1>Treasury Secretary Jennet Yellen says the US will accept economic

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<v Speaker 1>costs to protect national security interests.

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<v Speaker 2>With China and Cleveland Fed President Lorettamester's signal support for

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<v Speaker 2>another rate hike to lower.

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<v Speaker 3>Inflation, macranasshures a united front with regard to China in

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<v Speaker 3>a call with Biden. China announces more military drills. SpaceX

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<v Speaker 3>Starship successful lift off than malfunction and it is blown up.

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<v Speaker 3>I'm Ed Baxter with Global News.

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<v Speaker 4>That's all straight ahead on Bloomberg day Break Asia, the

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<v Speaker 4>business news you need to start your day in just

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<v Speaker 4>one fifteen minute podcast available on Apple, Spotify, the Bloomberg

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<v Speaker 4>Business App, and everywhere you get your podcasts.

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<v Speaker 2>Good morning, I'm Doug Krisner and I'm Brian Curtiz.

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<v Speaker 1>Here are the stories we're following today. Treasury Secretary Janet

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<v Speaker 1>Yellen says the US will defend national security interests with

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<v Speaker 1>regards to threats posed by China. Here's Yellen delivering remarks

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<v Speaker 1>today in Washington.

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<v Speaker 5>Even though these policies may have economic impacts, they are

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<v Speaker 5>driven by straightforward national security considerations, and we will not

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<v Speaker 5>compromise on these concerns even when they force trade offs

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<v Speaker 5>with our economic interests.

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<v Speaker 1>Yellen also said that the US is not seeking to

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<v Speaker 1>decouple its economy from China, and she added that the

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<v Speaker 1>nation will aim to seek healthy and fair economic competition

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<v Speaker 1>with Beijing. She also said that the Biden administration will

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<v Speaker 1>engage on issues like climate change and debt relief in

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<v Speaker 1>the developing world, and Yellen repeated that she plans to

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<v Speaker 1>travel to China at the appropriate time.

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<v Speaker 2>At the same time we are being told to Biden

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<v Speaker 2>administration is aiming to get an executive order signed by

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<v Speaker 2>the President in the coming weeks that will limit investment

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<v Speaker 2>in key parts of China's economy by US businesses. That

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<v Speaker 2>story from Bloomberg's Charlie Pellett.

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<v Speaker 6>The administration has been debating the measure for almost two years,

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<v Speaker 6>and it plans to take action around the time of

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<v Speaker 6>a summit of the Group of Seven Advanced Economies. That's

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<v Speaker 6>due to start on May nineteenth. In Japan, the US

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<v Speaker 6>has been briefing its G seven partners on the investment

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<v Speaker 6>curbs for high tech industries. The executive order will cover

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<v Speaker 6>the fields of semiconductors, artificial intelligence, and quantum computing, focusing

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<v Speaker 6>on investments where American firms play an active role in management.

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<v Speaker 6>In New York, Charlie Pellett Bloomberg Daybreak, Asia.

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<v Speaker 1>Cleveland FED President Loretamester signaled support for another rate hike

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<v Speaker 1>to lower inflation. Here's Mester speaking at the University of

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<v Speaker 1>Akron in Ohio.

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<v Speaker 7>I anticipate that monetary policy will need to move somewhat

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<v Speaker 7>further into restrict territory this year, but Fed Funds rate

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<v Speaker 7>moving above five percent and the real Fed funds rates

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<v Speaker 7>staying in positive territory for some time now. Precisely how

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<v Speaker 7>much higher the Fed funds rate will need to go

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<v Speaker 7>from here and for how long policy will need to

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<v Speaker 7>remain restrictive will depend on economic and financial developments.

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<v Speaker 1>Mester also urged cautiousness. She said that recent financial developments

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<v Speaker 1>could cause banks to tighten access to credit, and she

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<v Speaker 1>warned that that could slow spending and growth and doug

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<v Speaker 1>If you want to look at maybe one of the

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<v Speaker 1>understatements of the day. Mester said that she sees the

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<v Speaker 1>FED closer to the end of its tightening journey rather

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<v Speaker 1>than the beginning after five hundred bases points or so.

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<v Speaker 2>Well, let's stay with the banks. We heard today from

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<v Speaker 2>Brian moynihan, the CEO of Bank of America. He told

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<v Speaker 2>us the banking industry is sound despite some of the

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<v Speaker 2>recent turmoil we have seen in the sector. Here is

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<v Speaker 2>Moynihan speaking earlier with Bloomberg.

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<v Speaker 8>Well, I think at the end of day, crisis is

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<v Speaker 8>too strong a and.

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<v Speaker 9>Words like that get used a lot.

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<v Speaker 8>But at the end of the day, there was a

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<v Speaker 8>fair amount of disruption for a few weeks there. Well,

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<v Speaker 8>certain business models were sorted through. But on the other hand,

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<v Speaker 8>you could see and we could see the stability in

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<v Speaker 8>the other business models.

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<v Speaker 2>That is Brian moynihan, the CEO of Bank of America. Now,

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<v Speaker 2>his remarks follow BAA's first quarter results that were released

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<v Speaker 2>earlier in the week. The bank's deposits fell less than

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<v Speaker 2>analysts had expected. Customers seemed to be turning to larger

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<v Speaker 2>institutions following the collapse of Silicon Valley Bank. By the

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<v Speaker 2>way Bank of America was among eleven companies that helped

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<v Speaker 2>to shore up finances of that ailing First Republic bank

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<v Speaker 2>A combined thirty billion dollars in deposit infusion, and of

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<v Speaker 2>that BAA contributed about five billion to the effort.

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<v Speaker 1>Ran Taiwan Semiconductor or TSMC reaffirmed its target for capital

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<v Speaker 1>spending this year. It comes despite an ongoing slump into

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<v Speaker 1>and for everything from smartphones to server chips. TSMC did

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<v Speaker 1>warrant that demand would remain soft for now, but it

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<v Speaker 1>plans to spend as much as thirty six billion dollars

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<v Speaker 1>upgrading and expanding production capacity this year.

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<v Speaker 9>We heard from Bloomberg's Mandeep Singh.

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<v Speaker 10>They have to open overseas fabs, one in Arizona, one

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<v Speaker 10>in Japan. They're talking about, you know, production being live

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<v Speaker 10>by twenty twenty four. So clearly they are diversifying. They

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<v Speaker 10>have no choice, and that is where the growth Martin

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<v Speaker 10>impact may show up, because those fabs aren't going to

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<v Speaker 10>be as profitable as the ones they have in Taiwan

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<v Speaker 10>right now.

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<v Speaker 6>So that's the longer term.

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<v Speaker 10>Risk they have because as they diversify their locations and

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<v Speaker 10>the factories, it will have an impact on their pricing

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<v Speaker 10>and you know the cost structure.

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<v Speaker 1>Over the longer term, investors are hopeful that TSMC would

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<v Speaker 1>benefit from a surge in artificial intelligence development and applications

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<v Speaker 1>power demand. TSMC's high end computing chips, along with data

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<v Speaker 1>centers will be required for train and hosting AI models.

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<v Speaker 1>TSMC ad R has gained as much as five point

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<v Speaker 1>three percent the most sense February twenty third. I'm Brian

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<v Speaker 1>Curtis along with Doug Krisner. So we mentioned geopolitics. It's

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<v Speaker 1>interesting in looking at US China and China Taiwan. Certainly,

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<v Speaker 1>for China Taiwan is more a sovereignty story, Doug, than

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<v Speaker 1>a semiconductor story. But for US China, a lot of

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<v Speaker 1>it does come down to those sorts of flows and

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<v Speaker 1>business and economics. And so for Jennet Yellen to say

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<v Speaker 1>that they're willing to sacrifice on the economic side for

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<v Speaker 1>national security really shows you that there probably is some

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<v Speaker 1>teeth in this from the Biden administration.

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<v Speaker 2>Yes, I would agree with that. And for companies like

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<v Speaker 2>Lamb Research. We were talking about this earlier in in

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<v Speaker 2>our pre show meeting, Brian that Lamb yesterday was indicating

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<v Speaker 2>that now it's received some clarification on US trade restrictions.

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<v Speaker 2>Lamb is one of the big makers of machines used

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<v Speaker 2>to make semiconductors, and so now it's going to be

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<v Speaker 2>able to sell a little bit more more of its

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<v Speaker 2>product into China, more than was previously expected. So there

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<v Speaker 2>are a number of American companies that are going to

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<v Speaker 2>be very, very much impacted by this new way of thinking.

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<v Speaker 1>I was interested to see the response from China this morning.

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<v Speaker 1>It's actually fairly muted. I'd call it a conciliatory response

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<v Speaker 1>to Yellen's comments. If you look at the Global Times now,

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<v Speaker 1>it's a little bit early. We may see a change

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<v Speaker 1>once officials come out a little bit later in the day,

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<v Speaker 1>but getting the early reading, it referred back to Chinese

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<v Speaker 1>and US commerce officials.

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<v Speaker 9>Meeting last week in Beijing, and.

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<v Speaker 1>That they exchanged a lot of views on bilateral economic ties,

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<v Speaker 1>a lot about climate, and a lot about debt relief,

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<v Speaker 1>as we mentioned in our story. But it said that

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<v Speaker 1>this re engagement could actually lead to a kind of

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<v Speaker 1>thawing in strained relations. So that's pretty interesting that China

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<v Speaker 1>didn't issue vitriol after the overnight comments.

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<v Speaker 2>You might remember a conversation that you and I had

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<v Speaker 2>recently about the green movement here in the United States

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<v Speaker 2>and the degree to which a lot of that is

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<v Speaker 2>going to depend on green technologies. Think wind turbines, Think

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<v Speaker 2>solar panels produced in large part by China that will

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<v Speaker 2>be used in the United States.

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<v Speaker 1>Yeah, and rare earth materials still something that needs to

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<v Speaker 1>get resolved from everybody who isn't China. Well, we have

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<v Speaker 1>Rebecca Felton coming up in a few moments, senior market

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<v Speaker 1>strategists at Riverfront Investment Group to take a look at

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<v Speaker 1>the markets in addition to some of these geopolitical concerns.

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<v Speaker 9>Now it's time for global news.

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<v Speaker 1>The presidents of the United States in France have talked

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<v Speaker 1>about Taiwan and China in a call today. Bloombergs Ed

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<v Speaker 1>Baxter is covering that and has the rest of the

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<v Speaker 1>Global news from a nine to sixty news room at

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<v Speaker 1>San Francisco ahead.

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<v Speaker 3>Yeah, Brian, As you know, relations have been at an

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<v Speaker 3>interesting point Cincerimonia, Macron's trip to Beijing and Macron promoting

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<v Speaker 3>China's trying to maneuver piece in Ukraine. The joint statement

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<v Speaker 3>today says both reaffirm the importance of maintaining peace and

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<v Speaker 3>stability in the Taiwan strait. Bloomberg's nik Watam.

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<v Speaker 11>So, I think what you're seeing with the Biden Macron

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<v Speaker 11>call there is more of a like, hey, we're on

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<v Speaker 11>the same page. Don't worry, We're still allied. Here's what

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<v Speaker 11>we want to do toward Taiwan. The French position his

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<v Speaker 11>statement did not represent a significant change in policy. Flip

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<v Speaker 11>the channel back to regular programming now.

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<v Speaker 3>The joint statement also says they talk to Ukraine and

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<v Speaker 3>pledged continued support there. Ireland's Prime Minister is urging a

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<v Speaker 3>United EU tact and dealing with China US conflict. Leo

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<v Speaker 3>Varadkar saying Bloomberg New Economy Gateway Europe Events says EU

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<v Speaker 3>can't be caught in the middle.

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<v Speaker 9>Trade of China is very important.

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<v Speaker 12>We don't want to entered any sorts of political conflicts

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<v Speaker 12>which China. They're competitor, they're also a partner, but we

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<v Speaker 12>do need to bear in minds that there are potential risks.

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<v Speaker 3>So competitor but trade partner as well. Meanwhile, military announcing

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<v Speaker 3>plans to conduct at least five drills in various areas

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<v Speaker 3>that include waters off the coast and the South China Sea.

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<v Speaker 3>This goes along with China's escalated military and aerospace activities

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<v Speaker 3>of its off its coast in recent days, and a

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<v Speaker 3>group of US lawmakers gathered around maps spread out on

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<v Speaker 3>tables in a committee room on Capitol Hill last night,

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<v Speaker 3>pretending to advise the president after a hypothetical Chinese invasion

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<v Speaker 3>of Taiwan. Committee chair Mike Gallagher said the US is

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<v Speaker 3>well within the window of maximum danger for a Chinese

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<v Speaker 3>invasion of Taiwan, saying it would be disastrous economic consequence

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<v Speaker 3>for the global economy. He says Taiwan has to be

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<v Speaker 3>armed to the teeth to prevent such an event. Debt

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<v Speaker 3>Ceiling Freedom Caucus members of the Republican Party demanding more

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<v Speaker 3>cost saving measures at Speaker Kevin McCarthy's plan things dealing

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<v Speaker 3>with Medicare, social security, Bloomberg'slaura Davison says it complicated. It's

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<v Speaker 3>the vote count.

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<v Speaker 9>He doesn't have enough, you'll mention.

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<v Speaker 2>To sort of putting a pin in that, saying, look,

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<v Speaker 2>you know that there is you know, we got to

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<v Speaker 2>move forward with something.

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<v Speaker 9>And McCarthy has a plan that is moving forward and

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<v Speaker 9>that's the only ballgame in town right now.

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<v Speaker 3>And add to that, the government is reporting revenue not

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<v Speaker 3>coming in as fast as projected, which could move the

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<v Speaker 3>deadline up even further. SpaceX Starship did get off the

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<v Speaker 3>launch pad, remember Elon Musk saying it would be successful

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<v Speaker 3>if it just cleared the tower, but then minutes later.

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<v Speaker 7>As we said before, obviously we wanted to make it

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<v Speaker 7>all the way through.

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<v Speaker 9>But to get this far, honestly, is amazing.

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<v Speaker 3>Yeah, an explosion. Now SpaceX is now saying it intentionally

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<v Speaker 3>blew up the rocket after an engine sent it into

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<v Speaker 3>a spin. It does point out that there is quite

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<v Speaker 3>a distance to go to get the Starship to the

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<v Speaker 3>Moon or to Mars. Global News poired by more than

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<v Speaker 3>twenty seven hundred journalists and listen over one hundred and

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<v Speaker 3>twenty countries in San Francisco. I'm Ed Baxter, and this

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<v Speaker 3>is Bloomberg.

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<v Speaker 1>I'm Brian Curtis, along with Rashad's Selamat in Hong Kong,

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<v Speaker 1>and our guest is Rebecca Felton, senior market strategist at

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<v Speaker 1>Riverfront Investment Group. Rebecca, you point out your notes that

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<v Speaker 1>the SMP five hundred is up eight percent year today,

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<v Speaker 1>and sometimes when we get bad economic data we say,

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<v Speaker 1>well the market has kind of priced this in but

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<v Speaker 1>actually the S and P five hundred is really dominated

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<v Speaker 1>by the gains in tech, and a lot of that's

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<v Speaker 1>driven probably by the AI excitement. If you look at

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<v Speaker 1>the equal weight, it's essentially flat for the year. That

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<v Speaker 1>you look at the Russell two thousand, it's actually flat

0:12:42.720 --> 0:12:45.160
<v Speaker 1>for the year so far as well. So we've been

0:12:45.200 --> 0:12:48.800
<v Speaker 1>getting the signals. But do you think that we head

0:12:48.840 --> 0:12:51.120
<v Speaker 1>down from here or something else?

0:12:52.080 --> 0:12:53.760
<v Speaker 13>Well, thank you so much for having me and just

0:12:53.840 --> 0:12:56.200
<v Speaker 13>listening to some of the headlines as we were coming

0:12:56.240 --> 0:12:59.320
<v Speaker 13>into this segment. It certainly doesn't feel good, does it.

0:12:59.360 --> 0:13:01.880
<v Speaker 13>I mean, this is really there are so many negative

0:13:01.960 --> 0:13:05.320
<v Speaker 13>undercurrents and there's still a lot to go as we

0:13:05.840 --> 0:13:10.679
<v Speaker 13>navigate through earning season that could point markets lower because

0:13:10.679 --> 0:13:14.600
<v Speaker 13>we are hearing some caution from these management teams. Even

0:13:14.600 --> 0:13:17.839
<v Speaker 13>though many of the companies have been on the earnings expectation,

0:13:18.000 --> 0:13:20.679
<v Speaker 13>that forward guidance is coming in a little bit more

0:13:20.760 --> 0:13:22.120
<v Speaker 13>muted than we've heard in the past.

0:13:23.080 --> 0:13:25.960
<v Speaker 14>Rebecca, can you make with yields where they are currently,

0:13:26.120 --> 0:13:29.360
<v Speaker 14>can you make really a compelling case for broad equities?

0:13:30.800 --> 0:13:35.160
<v Speaker 13>Well, we believe that the balanced portfolio can have a

0:13:35.200 --> 0:13:41.200
<v Speaker 13>good year. Obviously, if earnings can hold in. That still

0:13:41.320 --> 0:13:44.280
<v Speaker 13>is the big question here, and we're so early into

0:13:44.320 --> 0:13:48.280
<v Speaker 13>earning season and you think about how far growth forecast

0:13:48.360 --> 0:13:50.679
<v Speaker 13>have come down. I think for Q one right now,

0:13:51.040 --> 0:13:54.760
<v Speaker 13>consensus is a negative six percent and a far cry

0:13:54.800 --> 0:13:57.600
<v Speaker 13>from where we were even at the beginning of the year.

0:13:58.080 --> 0:14:01.760
<v Speaker 13>So we've got a lot of positives baked in as

0:14:01.800 --> 0:14:04.360
<v Speaker 13>we look forward to pay maybe a resumption of double

0:14:04.400 --> 0:14:06.720
<v Speaker 13>digit or high single digit growth in twenty twenty four,

0:14:06.760 --> 0:14:08.720
<v Speaker 13>but that's a long way from here to there. So

0:14:09.120 --> 0:14:11.320
<v Speaker 13>I know that's a long winded answer, but we're very

0:14:11.360 --> 0:14:14.200
<v Speaker 13>cautious about this earning season and the implications for the

0:14:14.240 --> 0:14:16.400
<v Speaker 13>markets going forward as we emerge from it.

0:14:16.920 --> 0:14:19.320
<v Speaker 14>Rebecca, you could have just said, I can't make a

0:14:19.360 --> 0:14:20.840
<v Speaker 14>compelling case for broader.

0:14:20.640 --> 0:14:25.040
<v Speaker 13>Curtis, but we're we're neutral equities right now, so we

0:14:25.520 --> 0:14:31.000
<v Speaker 13>do believe that there's opportunity. We're still somewhat underweight fixed income,

0:14:31.200 --> 0:14:33.880
<v Speaker 13>not significantly. We've got a little bit of extra cash

0:14:33.920 --> 0:14:39.200
<v Speaker 13>on the sidelines right now to be opportunistic. You know,

0:14:39.280 --> 0:14:43.760
<v Speaker 13>our tactical rules are signaling neutral right now. Our outlook

0:14:43.800 --> 0:14:46.400
<v Speaker 13>is more cautious than that, but we're following our process

0:14:46.520 --> 0:14:48.360
<v Speaker 13>rather than our emotions on this one.

0:14:48.880 --> 0:14:51.880
<v Speaker 1>So it seems like you still think stockpicking can it

0:14:51.880 --> 0:14:53.560
<v Speaker 1>can be something to look forward to.

0:14:53.680 --> 0:14:55.680
<v Speaker 9>You say, there's opportunities, So where.

0:14:55.480 --> 0:14:58.000
<v Speaker 1>Do you see the best opportunities and is it to

0:14:58.040 --> 0:14:59.920
<v Speaker 1>the short side or is it long start?

0:15:00.080 --> 0:15:02.680
<v Speaker 9>In companies as sectors, well.

0:15:02.320 --> 0:15:05.440
<v Speaker 13>Where we've been, where we have been trying to be

0:15:05.600 --> 0:15:10.600
<v Speaker 13>more selective is playing quality. Obviously, strong balance sheet, cash flow,

0:15:10.760 --> 0:15:15.440
<v Speaker 13>companies that can pay dividends, grow those dividends. And I

0:15:15.440 --> 0:15:17.800
<v Speaker 13>am reticent to use the term Barbelle, but we still

0:15:17.880 --> 0:15:21.720
<v Speaker 13>have a healthy weight to technology, those megacap names that

0:15:22.280 --> 0:15:29.520
<v Speaker 13>typically can weather economic cycles and sustain consistent revenue streams.

0:15:29.720 --> 0:15:32.760
<v Speaker 13>But we've also added back in some energy, some mining,

0:15:33.960 --> 0:15:37.000
<v Speaker 13>and then in healthcare. We're more inclined to go into

0:15:37.040 --> 0:15:39.640
<v Speaker 13>medical devices and services than we are into pharma.

0:15:40.600 --> 0:15:43.520
<v Speaker 1>Just briefly, does it surprise you that Europe has outperformed

0:15:43.520 --> 0:15:45.320
<v Speaker 1>the US and almost everywhere this.

0:15:45.320 --> 0:15:49.880
<v Speaker 13>Year, Well, it is surprising, and we have remained somewhat

0:15:49.960 --> 0:15:55.240
<v Speaker 13>underway international because their economies are still emerging from the

0:15:55.280 --> 0:15:58.960
<v Speaker 13>pandemic at a slower pace than hours. You saw probably

0:15:59.000 --> 0:16:03.800
<v Speaker 13>some of the inflation news coming out of Europe today.

0:16:04.120 --> 0:16:09.280
<v Speaker 13>UK inflation was ten percent. I think so central banks

0:16:09.280 --> 0:16:11.160
<v Speaker 13>are going to have to maybe do as much or

0:16:11.160 --> 0:16:14.240
<v Speaker 13>more as we're doing to curb inflation. And so it

0:16:14.240 --> 0:16:17.960
<v Speaker 13>feels like that snap back was more rotation into value,

0:16:18.120 --> 0:16:21.760
<v Speaker 13>which those indices are heavier into value than ours being

0:16:21.760 --> 0:16:23.800
<v Speaker 13>more tech heavy, and so it seems like it was

0:16:23.880 --> 0:16:27.440
<v Speaker 13>more of a rotation than it was anything based on fundamentals.

0:16:28.320 --> 0:16:31.720
<v Speaker 14>Rebecca, you also at the moment looking perhaps a mild

0:16:31.760 --> 0:16:33.960
<v Speaker 14>recession or perhaps a study deeper one.

0:16:33.800 --> 0:16:34.560
<v Speaker 9>For the third quarter.

0:16:38.400 --> 0:16:42.720
<v Speaker 13>You know, when you think about the global economies, when

0:16:42.760 --> 0:16:46.960
<v Speaker 13>you think about how precarious things are, it is likely

0:16:47.120 --> 0:16:49.360
<v Speaker 13>we believe that we will have a global recession in

0:16:49.400 --> 0:16:51.640
<v Speaker 13>the back half of this year or maybe early twenty

0:16:51.680 --> 0:16:54.000
<v Speaker 13>twenty four. But where we are right now in the

0:16:54.120 --> 0:16:57.320
<v Speaker 13>US with growth, it's not there yet. You know, the

0:16:57.360 --> 0:17:00.480
<v Speaker 13>GDP numbers are probably going to be very strong, although

0:17:00.480 --> 0:17:03.880
<v Speaker 13>the leading economic data that came out today was very discouraging.

0:17:04.119 --> 0:17:06.119
<v Speaker 13>It was I think the negative one point too, and

0:17:06.160 --> 0:17:07.480
<v Speaker 13>that was pretty rough.

0:17:09.000 --> 0:17:13.919
<v Speaker 1>So is that the centralized key question is are we

0:17:13.960 --> 0:17:17.199
<v Speaker 1>are we heading into a mild recession or a deep one?

0:17:17.560 --> 0:17:20.080
<v Speaker 9>Rather than can we avoid it? Is that sort of

0:17:20.119 --> 0:17:21.119
<v Speaker 9>the crux of it.

0:17:22.000 --> 0:17:24.800
<v Speaker 13>Well, we think that if we go into a recession,

0:17:25.920 --> 0:17:30.560
<v Speaker 13>it will be mild because of how strong US corporations

0:17:30.600 --> 0:17:34.720
<v Speaker 13>have maintained throughout the period coming out of the pandemic.

0:17:35.040 --> 0:17:37.720
<v Speaker 13>And even though we're worried about the consumer, net, the

0:17:37.720 --> 0:17:40.840
<v Speaker 13>consumer is in a very strong position as it relates

0:17:40.920 --> 0:17:45.959
<v Speaker 13>to overall debt levels, certainly employment levels. At this juncture,

0:17:46.200 --> 0:17:49.760
<v Speaker 13>there's a lot to be encouraged about, and we do

0:17:49.840 --> 0:17:51.920
<v Speaker 13>believe that if we have a recession here in the US,

0:17:51.920 --> 0:17:54.760
<v Speaker 13>it will be mild, just very quickly.

0:17:55.200 --> 0:17:57.320
<v Speaker 14>Is that any part of the market you think is

0:17:57.680 --> 0:18:00.320
<v Speaker 14>really really as screaming by be it you know, a

0:18:00.359 --> 0:18:02.560
<v Speaker 14>tiny little niche somewhere or something larger.

0:18:05.320 --> 0:18:08.040
<v Speaker 13>No, I mean we again the sectors that I mentioned

0:18:08.080 --> 0:18:11.919
<v Speaker 13>where we're more interested in leaning into, But we are

0:18:11.960 --> 0:18:16.800
<v Speaker 13>not overweight really any particular sectors at this juncture because

0:18:16.840 --> 0:18:20.280
<v Speaker 13>it is nothing in our view is inexpensive.

0:18:20.960 --> 0:18:24.880
<v Speaker 1>Yeah, well you mentioned mining. Would you be buying gold then,

0:18:25.040 --> 0:18:26.080
<v Speaker 1>for instance.

0:18:27.200 --> 0:18:28.119
<v Speaker 13>Not at this time.

0:18:29.680 --> 0:18:32.200
<v Speaker 1>So a lot of people look at copper versus gold

0:18:32.720 --> 0:18:35.840
<v Speaker 1>that ratio, and it don't feel comfortable about growth in

0:18:35.840 --> 0:18:39.639
<v Speaker 1>the United States with that trend line being that copper

0:18:39.720 --> 0:18:42.879
<v Speaker 1>is not expanding as much as gold is. So we'll

0:18:43.040 --> 0:18:45.000
<v Speaker 1>wait and see if we see that flip. Rebecca, thanks

0:18:45.000 --> 0:18:48.400
<v Speaker 1>so much for joining us. Rebecca Felton there from Riverfront

0:18:48.440 --> 0:18:50.040
<v Speaker 1>calling for a mild recession.

0:18:50.600 --> 0:18:53.879
<v Speaker 9>If that's indeed which direction we go?

0:18:54.920 --> 0:18:57.800
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