Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Along
Speaker 1: with Jonathan Farrell and Lisa Abramowitz. Daily we bring you
Speaker 1: insight from the best and economics, finance, investment, and international relations.
Speaker 1: To find Bloomberg Surveillance on Apple podcast, SoundCloud, Bloomberg dot Com,
Speaker 1: and of course on the Bloomberg terminal. We will stomp
Speaker 1: down the equity market in the day, trading and the
Speaker 1: churning and such and talk about results. He is far
Speaker 1: too shy to talk about his results. They're out in
Speaker 1: little percentile analysis by Morgan Stanley. But the answer is
Speaker 1: the M S I f US Core portfolio is on
Speaker 1: the edge of act of God. Andrew Slimmon joins us
Speaker 1: to this morning to speak gospel. He's senior portfolio manager
Speaker 1: managing director at the ninety three and nine percentile for folio.
Speaker 1: Of the duration it matters, Andrew, your idea of short
Speaker 1: term is three years. For those who can't get out there,
Speaker 1: how do they get the courage to invest forgetting about
Speaker 1: one week or one year action and say I want
Speaker 1: to invest for three years so I can get a
Speaker 1: ninety three percentile, Like Andrew Slimon, Well, I mean looking
Speaker 1: from a market standpoint, when the markets down tent uh,
Speaker 1: you look out three years, the returns are phenomenal. And uh,
Speaker 1: I think that's what people are missing when people say recession.
Speaker 1: Now recession, I said, markets down twenty percent, We've built
Speaker 1: in a lot of bad news here, and then from
Speaker 1: you know, getting to a high percentile. When the markets
Speaker 1: downcent you can't go buy defensive stocks. You have to
Speaker 1: start looking for good quality companies that are down more
Speaker 1: than that. And I just think there are a lot
Speaker 1: of companies down forty fifty sixty percent and that's embedded
Speaker 1: a lot of bad news into their into their sock price.
Speaker 1: Nobody from Morgan sent is watching this morning, Andrew, give
Speaker 1: me some names. Well, I think the consumer discution. I mean,
Speaker 1: look at University of Michigan. Consumer sentiment is at a
Speaker 1: forty four year low. You all have to think about
Speaker 1: which is the direction of change. And at that level,
Speaker 1: it's so bad that eventually it's going to improve. And
Speaker 1: I think gas prices coming down, optimism is going to improve.
Speaker 1: And when I think about what is where are stocks
Speaker 1: reflecting that very low sentiment, it's in the consumer area, home,
Speaker 1: home apparel, home furnishing, home retail, home builders. Those socks
Speaker 1: have been crushed, and I think that's very, very attractive.
Speaker 1: And usually when I mentioned socks like that, people tell
Speaker 1: me all the reason why they're down already by that amount.
Speaker 1: And I think you just have to think things could
Speaker 1: get better from here. It's they priced in a lot
Speaker 1: of bad news, so you have to think things could
Speaker 1: get better from here. But isn't the conversation we're having
Speaker 1: on the economic growth front. Things are going to get worse,
Speaker 1: that we're going too slow as the FED tights room,
Speaker 1: no question, no question. Look, and at the market level,
Speaker 1: the market there's a battle going on. On the one hand,
Speaker 1: the bar was so low going into this earning season.
Speaker 1: I mean, Tom Kayley, how many how many strategies have
Speaker 1: come on your show and said guidance is going to
Speaker 1: be lower. I mean everyone expected a bad earning season,
Speaker 1: so the setup was deliciously wonderful for you know, beating
Speaker 1: a low bar. That's a good news. The bad news
Speaker 1: is the Fed's not done raising rates, and I think
Speaker 1: we can't be too optimistic at the market level for
Speaker 1: that for that reason. But when you start to search
Speaker 1: for stocks, which is what I do, there are a
Speaker 1: lot of stock down a lot more than the than
Speaker 1: the market, and I think there's a lot of quality
Speaker 1: stocks down a lot more than the market. Well, Andrew,
Speaker 1: you talk about how everyone's expectation seems to be that
Speaker 1: guidance is going to be disappointing. It also seems that
Speaker 1: there's a lot of cohesion around the idea that the
Speaker 1: dollar is going to be a big theme as well
Speaker 1: the starning season. We've already seen it a warning from Microsoft,
Speaker 1: We saw it show up at IBM and J and
Speaker 1: J results yesterday. How large a headwind really is the
Speaker 1: dollar strength that has faded over the last few days. Yeah,
Speaker 1: So look number one is there's really no evidence that
Speaker 1: when the dollar goes up a lot it leads to
Speaker 1: weak stock market over time. There's really no evidence. In fact,
Speaker 1: if you look at the last time ten times the
Speaker 1: markets up over ten the dollars up over ten percent
Speaker 1: in a year, the market is actually higher three six
Speaker 1: months later. So there's no evidence of that. But I
Speaker 1: think the reason for that is a lot of times
Speaker 1: the stock market says, well, you know, it's the dollar,
Speaker 1: and the market looks through that dollar weakness because the
Speaker 1: dollar gyrates, it's an incredibly difficult to call the market
Speaker 1: based on you know, where your perceptions of where the
Speaker 1: dollar is going. So I just wouldn't do that. Other
Speaker 1: than the extent, I think you have have to think
Speaker 1: about going into earning season, how we have stock spen
Speaker 1: and how low is a bar, and right now the
Speaker 1: bar is really really low. So I think what you're
Speaker 1: gonna see is some of these companies are gonna say, yeah,
Speaker 1: you know, earnings aren't great because the dollar is too strong.
Speaker 1: And I question whether the stocks are going to go
Speaker 1: down on that because a lot of that's already embedded
Speaker 1: in the stock prices. Do we need a Catharsis? I mean,
Speaker 1: it's as simple as that. The Bear crew saying we've
Speaker 1: got to get out Vicks forty cart, Catharsis, Andrew Slimon,
Speaker 1: you know, Ages, Grace Further, et cetera. Do we need that? Yeah?
Speaker 1: I mean that is a very good point time, which
Speaker 1: is usually when you have these types of sell offs,
Speaker 1: they end in some you know, cathartic event. There are
Speaker 1: some type of bad financial you know, some somebody, I
Speaker 1: hate to say it, but somebody flows the surface and
Speaker 1: is that? Is that what's happening? Cryptocurrency and some of
Speaker 1: these vendors. Is that enough. It's hard to think that's
Speaker 1: the case. So again I do go back to the
Speaker 1: I'm just not sure. I think the markets in a
Speaker 1: kind of in a standing mode where on one hand,
Speaker 1: you know, again earnings are okay by on the other hand,
Speaker 1: the Fed's tightening and usually that ends lows end and
Speaker 1: some cathartic event maybe that happens, you know, earlier this fall.
Speaker 1: I still think the market will be substantially higher by
Speaker 1: year end, but I just think it's too soon to
Speaker 1: get too optimistic at the market level. And so I
Speaker 1: swear that you would definitively perished the last time we
Speaker 1: caught up as something started to change it. So you well,
Speaker 1: I think what's what's changed is that everyone thinks earnings
Speaker 1: are gonna be horrible. I mean, the one side of
Speaker 1: the boat is so crowded guidance is earnings are expected
Speaker 1: to be so weak that I think that presents, you know,
Speaker 1: a very intriguing opportunity. And the other thing is I'm
Speaker 1: always very nervous. I mean, I've been on this show.
Speaker 1: I'm always nerve. Is going into the summer, bad things
Speaker 1: happened to the market in the summer, and I think,
Speaker 1: you know, we're in the earning season. We're getting a
Speaker 1: lift out of earning season. But in the but the
Speaker 1: Fed's going to raise rates and what's gonna happen next
Speaker 1: month where it's all going to be about how many
Speaker 1: more times the beds raising rates? And I and that
Speaker 1: gets me nervous. Any time the conversation pivots from individual stocks,
Speaker 1: which is what we're doing right now, to the market overall,
Speaker 1: I think the market becomes more val Usually people get
Speaker 1: nervous coming on the show because I don't know what
Speaker 1: song's gonna ask him and could be anythick Andrew Slim
Speaker 1: in their Morgan Standing Investment Management, Andrew, thank you. Lorena.
Speaker 1: You reaches us economist of tro Price UH with a
Speaker 1: really different outlook. And what we haven't talked about this morning,
Speaker 1: Lorena is a labor market, and I want to talk
Speaker 1: about all the gloom that's out there amid three point
Speaker 1: six percent unemployment. You lead with that in your note. Absolutely,
Speaker 1: I think I'm taking a lot of signal from the
Speaker 1: health and strength of the US labor market. It's surprised
Speaker 1: us consistently to the upside this year. Job creation at
Speaker 1: three hundred fifty k per month on a three month
Speaker 1: average basis. We know the FED looks at this it's
Speaker 1: pretty strong, and the unemployment trade is all the way
Speaker 1: down to pre pandemic levels when we had we know
Speaker 1: we had a hot and very strong labor market. I
Speaker 1: think the labor market will matter a lot for the
Speaker 1: outlook of the US consumer and their confidence to continue
Speaker 1: spending in the coming quarters. So from that, I think
Speaker 1: the doom and gloom on recession is a little bit exaggerated.
Speaker 1: At the moment. We parse inflation as services and goods.
Speaker 1: How do you parse the labor economy? Is it? The
Speaker 1: recovery that we saw on restaurants and bars was a
Speaker 1: theme a year year and a half ago or so.
Speaker 1: Where is that persistency of good news and labor now?
Speaker 1: What part of our labor market? So what we're seeing
Speaker 1: is a broadly based growth in job creation, and I
Speaker 1: think this is what kept job growth going for so
Speaker 1: many months. Now, this could turn around quickly, especially if
Speaker 1: we talk ourselves into a recession. But for a moment,
Speaker 1: I think let's pay attention to what we're hearing from companies.
Speaker 1: They're hiring intentions over the coming few months, and right
Speaker 1: now we're seeing hiring freezes or a small job cuts
Speaker 1: predominantly in the tech and finance sector. I think if
Speaker 1: we see this being more broadly based in other sectors
Speaker 1: of the economy, this is when we need to start
Speaker 1: getting worried about the outfit for the US job market.
Speaker 1: Can we talk about the housing market as well, because
Speaker 1: we've had a series of data points that just point
Speaker 1: to a really dramatic cooling and Diane Swag who's now
Speaker 1: chief economist over at KPMG, was talking about how we
Speaker 1: saw mortgage demand dropping to a twenty two year low
Speaker 1: in data this morning. She says, the canary in the
Speaker 1: coal mine has lost its song. The correction in housing,
Speaker 1: the most interest rate sensitive sector, is leading the economy
Speaker 1: into a more significant slowdown or worse. Should we be
Speaker 1: more worried about how quickly the housing market is cooling off?
Speaker 1: I think this is a great question. We should focus
Speaker 1: on two things. In the housing market, we're seeing a
Speaker 1: deterioration because of bad affordability. Homes became very unaffordable for
Speaker 1: households because of the very fast home price appreciation post pandemic,
Speaker 1: and because of higher interest rates. We know the housing
Speaker 1: market is one of the most interest rate sensitive sectors
Speaker 1: of the US economy, But we should be careful to
Speaker 1: extrapolate what's happening with house home sales to the broader economy.
Speaker 1: We know this is one of the most interest rate
Speaker 1: sensitive sectors, but UM at this point not convinced that
Speaker 1: this kind of dramatic slowdown is going to spread spread
Speaker 1: to consumer spending because of how healthy their bound sheets are,
Speaker 1: how healthy the labor market is, and their ability to
Speaker 1: absorb some of the inflationary hits in the cash pafort
Speaker 1: that we know that accumulated. But given that, doesn't that
Speaker 1: mean that the federal reserves job in trying to rein
Speaker 1: in demand in order to get inflation down is then
Speaker 1: that much harder? Is the U S consumer too resilient
Speaker 1: for them to be effective in doing that. I think
Speaker 1: there in lies the problem for the FED. We have
Speaker 1: a very strong economy and they're trying to walk this
Speaker 1: tide rope of bringing inflation down while the unemployment rate
Speaker 1: only picks up a little bit. Because this will be
Speaker 1: absorbed in the job openings that are at record highs
Speaker 1: at the moment, I think we should be prepared for
Speaker 1: the for a FED that needs to hike more than
Speaker 1: the markets are anticipating right now rending. Your job at
Speaker 1: ro price is to talk to portfolio managers about sector
Speaker 1: bets and even individual stock bets, and it starts and
Speaker 1: ends with unit dynamics and price dynamics of the revenue line.
Speaker 1: What are you telling them about what revenues will do
Speaker 1: over the next twelve months. So I focus a lot
Speaker 1: on the US consumer, and we've spoken a fair bit
Speaker 1: about it already today, and so I think what happens
Speaker 1: with consumer spending over the coming months will be key
Speaker 1: for revenues. Of course, we're going to have a correction
Speaker 1: from the levels that we saw last year that was
Speaker 1: unsustainably high spending for the US consumer. But we're shifting
Speaker 1: our view to focusing more on the services sector, where
Speaker 1: we think the economy is going to rebalance and towards
Speaker 1: those staples as activity normalizes and all the pent up
Speaker 1: demand on goods and services gets absorbed. Focus on those
Speaker 1: necessities and nondiscretion respending for the consumer, well, the consumers there.
Speaker 1: And I see Atlantic Atlanta GDP now Atlantic Atlanta GDP
Speaker 1: statistics that are really quite gloomy. Should we trust those
Speaker 1: statistics or is the resilient consumer going to surprise all.
Speaker 1: I think we with every data report, we should really
Speaker 1: look under the hood and see what the details of
Speaker 1: that report are telling us. And what we're seeing in
Speaker 1: the net accounts in the GDP numbers is that a
Speaker 1: lot of this weakness and volatility is being driven by
Speaker 1: inventory restalking and de stalking by next trade, two components
Speaker 1: that tend to be very volatile. So over the coming months,
Speaker 1: we're going to sit here and discuss at rate length
Speaker 1: the signal from GDP versus g d I data. Should
Speaker 1: we focus on personal consumers and domestic sales? And I
Speaker 1: think there's gonna be a lot of debate on this,
Speaker 1: but ultimately we should focus on consumer spending, and we
Speaker 1: should focus on how fast jobs are being created in
Speaker 1: the economy. Well, something else we're likely to debate over
Speaker 1: several months is what size FED hike we're going to
Speaker 1: get at any given month, But perhaps the more important
Speaker 1: conversation is where we ultimately are going to get. We've
Speaker 1: heard from Blackstone in the last twenty four hours saying
Speaker 1: could be close to five percent on FED funds, when
Speaker 1: all of a sudden, dungeon Bianco agreed with that take.
Speaker 1: So I guess kind of a three part question, how
Speaker 1: high do you think we get on FED funds, at
Speaker 1: what point do we reach it? And for how long
Speaker 1: do we stay there before the cuts follow? So I
Speaker 1: think that we probably get to four percent interest rates
Speaker 1: by the end of this year before the FED takes
Speaker 1: an opportunity to pose and see the effects of tightening
Speaker 1: financial conditions on the labor market and on inflation. And
Speaker 1: then I think risks for next year are pretty wide.
Speaker 1: If the economy continues to grow and surprise us to
Speaker 1: the outside five percent interest rates, it's not unthinkable if
Speaker 1: the FACT thinks this is necessary to bring inflation down,
Speaker 1: they will go ahead and do that. They've told us
Speaker 1: they really prioritize price stability. At this point, when I
Speaker 1: look at market pricing, I think they are being a
Speaker 1: little bit too sanguine about the FED cutting interest rates already.
Speaker 1: Next year, I don't think it's going to be as
Speaker 1: simple as out in this business cycle, So no design.
Speaker 1: Franklin Templeton sent pretty much the same thing to us recently.
Speaker 1: Lurin you reachi that the US economy is the trod
Speaker 1: price echo, and some of that from Sonolan J Jim Bianco,
Speaker 1: president of Bianco Research, jim you know the recent theme.
Speaker 1: I don't even know it's recent. It's been gone on
Speaker 1: for months. Fight the inflation story, Fight the inflation story. Jimmy,
Speaker 1: you push him back against that. Yeah, I am, but
Speaker 1: I am this. Uh, this year's people that are calling
Speaker 1: for inflation peaked are last year's people that called inflation transitory.
Speaker 1: And it goes to a broader theme in the market
Speaker 1: that there's a very difficult understanding of what inflation is. Look,
Speaker 1: the chairman was right, we've understand now what little we
Speaker 1: understand about inflation. And the same thing applies to Wall Street,
Speaker 1: and the story continues that inflation is a problem and
Speaker 1: it's going to stay a problem, and those that think
Speaker 1: it might have peaked at nine point one. I am
Speaker 1: kind of on the on that. But more to the point,
Speaker 1: it isn't going to come down fast anytime soon, and
Speaker 1: the Fed's gonna have no choice but to stay aggressive.
Speaker 1: And the last thing is, I still think that all
Speaker 1: the talk about whether we're in a recession, and I
Speaker 1: happen to think we are, is of secondary importance. What's
Speaker 1: a primary importance is inflation. If it doesn't come down,
Speaker 1: the Fed's not going to stop. And in a recession.
Speaker 1: I don't think it's going to stop them. Jim Bianco,
Speaker 1: your beloved Cubs are going back to the nineties seventies
Speaker 1: and their level of mediocrity through the baseball season. In
Speaker 1: the seventies, we were all nominal. You allude in your
Speaker 1: research note to the idea of nominal inflation analysis, nominal
Speaker 1: GDP analysis, the nominal analysis of corporate revenues in a
Speaker 1: new inflation world discussed that. Yeah, so a lot of
Speaker 1: people talking about whether or not we're having a recession
Speaker 1: are asking the question, well, if we created three seventy
Speaker 1: thousand jobs, how can we have a recession? If we've
Speaker 1: got a bunch of positive economic reports, how can we
Speaker 1: have a recession? The answer is not whether or not
Speaker 1: it's positive or negative. Is is it faster than the
Speaker 1: inflation rate? And the answer for a lot of this
Speaker 1: is no, it's not. And that's why the first quarter
Speaker 1: GDP was negative, and that's why you're hearing more and
Speaker 1: more calls, including the Atlanta Fed GDP for this second
Speaker 1: quarter GDP to be negative. Yes, on a nominal basis,
Speaker 1: it will have expanded, it just won't beat the inflation rate,
Speaker 1: and that gives you negative real growth, and that is
Speaker 1: the very definition of a recession. Well, as we talk
Speaker 1: about you think the US economy already in a recession,
Speaker 1: you don't think it will stop the Federal Reserve and
Speaker 1: it's fight against inflation. Where is that going to put
Speaker 1: FED funds when because you had Blackstone out overnight saying
Speaker 1: we're getting a five percent next year potentially, Yeah, that's yes,
Speaker 1: that every FED rate hike cycle has ended, every one
Speaker 1: of them back to nineteen fifties with positive real yields.
Speaker 1: In other words, interest rates above the inflation rate. Now,
Speaker 1: that doesn't mean we have to go to nine percent
Speaker 1: on the funds rate. The inflation rate will come down,
Speaker 1: but we have to see the funds rate go above
Speaker 1: the inflation rate. Now, take Wall Street, Wall Streets most
Speaker 1: optimistic scenario is that the PC rate, which about a
Speaker 1: half a percent lower than c p I, will hit
Speaker 1: four percent by the end of next year. Well, that's
Speaker 1: gonna put the funds rate over four maybe near five.
Speaker 1: So I think people have to realize that rates have
Speaker 1: to go a lot higher. Now. The only thing that
Speaker 1: changes that is if we have a bad recession and
Speaker 1: that kills demand and that brings down prices quite a bit,
Speaker 1: but then we have a bad recession at that point.
Speaker 1: So I don't see the idea of a September pause
Speaker 1: that the FED is done after July as being in
Speaker 1: play right now unless something dramatically turned south in the economy. Jim,
Speaker 1: I'll give you a fund of what the a c
Speaker 1: BA tomorrow. What are you looking for from President of
Speaker 1: the count President Laggard? Uh, you know, finally getting off
Speaker 1: this night and hiking rates. I suspect that they're going
Speaker 1: to be like the e c B and they're gonna
Speaker 1: go twenty five and they're gonna be very considered and
Speaker 1: very slow moving. And all the talk about fifty is
Speaker 1: while I think they should do it, they won't. Don't
Speaker 1: move very slow, President Languette, Do you like that time?
Speaker 1: That's a new one, President Languett, There we go, gim
Speaker 1: Pianco Pianco Research. Thank you, Jim. It's going to catch
Speaker 1: up you. We count of get down to a big
Speaker 1: ECP decision tomorrow. We can do that with our Seleniosity,
Speaker 1: global head of effect Strategy at URBC outside tomorrow, am
Speaker 1: I trading the ECB or north stream one? Oh? There's
Speaker 1: so much event risk, isn't there? But it does feel
Speaker 1: like we've got a lot of the clues for the
Speaker 1: event risk actually coming all together yesterday. So sources suggesting
Speaker 1: that North Stream will be reopened, albeit remains to be
Speaker 1: seen that what capacity. And then sources again suggesting the
Speaker 1: CB is considering fifty beats, and um, we're getting some
Speaker 1: hints of what the antifragmentation looked to al might look like.
Speaker 1: So for all the kind of build up into tomorrow,
Speaker 1: and there's still a lot to watch, we have certainly
Speaker 1: seen a lot of the hints and clues coming ahead
Speaker 1: of time. We're looking for the theory of fragmentation ELSA,
Speaker 1: and then there's the application of the theory. Does it
Speaker 1: sound doable to you? Whatever plan they come up with,
Speaker 1: explain to me how it's doable. So there are a
Speaker 1: few big questions. I mean, clearly what's been talked about
Speaker 1: or the sources been suggesting something that would be pretty
Speaker 1: monumentous in terms of size and scope, talking about very
Speaker 1: loose conditionality mainly country sticking to the growth and stability pack.
Speaker 1: But of course there are two biggests. One will that
Speaker 1: get past the German constitutional court As we know when
Speaker 1: t was challenged all the previous programs have been challenged,
Speaker 1: they passed, but this would be a further step. And
Speaker 1: the second is what happens on the political front, because
Speaker 1: it's all very well saying a country needs to be
Speaker 1: abiding by the growth and Stability pack, but there's certainly
Speaker 1: a lot of populist parties across Europe that have no
Speaker 1: intention of doing anything of the sort. As we talk
Speaker 1: about the euro, obviously it has been substantially weaker at
Speaker 1: the same time that the dollar has been stronger, and
Speaker 1: there's a question of cause and effect. ELSA on this
Speaker 1: program yesterday we were speaking with Andrew Sheets and Morgan Stanley,
Speaker 1: and he said he thinks the dollar index could go
Speaker 1: out to one twelve in the third quarter, which was
Speaker 1: kind of a wow call. John asked the question yesterday,
Speaker 1: where does that put the euro if the dollar strengthens
Speaker 1: to that extent. I mean, there are certainly a lot
Speaker 1: of scenarios where euro dollar could weaken materially from here. Um,
Speaker 1: they're they're more extreme scenarios. You know, we're talking about
Speaker 1: total gas cut off from Russia to Europe, deep European recession,
Speaker 1: and under those conditions, of course, you'd expect to see
Speaker 1: euro dollar trade quite a bit weaker. It's not our
Speaker 1: base case scenario. We actually started the year with a
Speaker 1: call for parity um and that was the kind of
Speaker 1: forecast from December, and so being where we are now,
Speaker 1: it kind of feels like the bulk of the move
Speaker 1: is behind us um. Our target at the moment is
Speaker 1: something around the ninety level. But of course, if some
Speaker 1: of those more extreme tel risk scenarios pan out, then yes,
Speaker 1: you know, rodollar could be trading even to a native
Speaker 1: something handled. So every single morning I keep seeing more
Speaker 1: and more news about Europe, whether it's the e c
Speaker 1: B or Vladimir Poocha and nord Stream one. Not enough
Speaker 1: on China Alsa, What is going on in China with
Speaker 1: the mortgage market, this growing lone boycott and what on
Speaker 1: earth does it mean for foreign exchange markets? Yeah, you know,
Speaker 1: I heard you guys talking about at the start of
Speaker 1: the program, and it's fascinating what's going on because it's
Speaker 1: so different to the way mortgage markets work here in
Speaker 1: the UK or in the U S where homeowners or
Speaker 1: home perspective owners are actually paying for an apartment before
Speaker 1: it's even being finished being built. So um, I think
Speaker 1: there are kind of two sides to it. One is
Speaker 1: we're watching for what it means on the economic front.
Speaker 1: I mean, clearly we're seeing some downward pressure coming on
Speaker 1: commodities and that's having a knock on impact across the world.
Speaker 1: But from a currency perspective, the remember it it's still
Speaker 1: such a heavily managed currency that there isn't that direct
Speaker 1: link you would see um in in the rest of
Speaker 1: the world. There's still this widespread expectation that the the
Speaker 1: government will be delivering the substantial stimulus ahead of October.
Speaker 1: Um was still pretty cautious on on how far that
Speaker 1: can go given the zero COVID policy, And so in general,
Speaker 1: I think, you know, investors, particularly as the FED hikes,
Speaker 1: are kind of shying away from the remember somewhat, how
Speaker 1: so wonderful to catch up with you aheaded tomorrow, Asselin
Speaker 1: say as MBC. This is the Bloomberg Surveillance Podcast. Thanks
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