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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Welcome to the Daybreak Asia podcast time det Prisoner. In

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Speaker 2: the States, we had a rally in tech stocks. That

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Speaker 2: was after Amazon signed a seven year deal with open

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Speaker 2: ai for computing power. OpenAI will pay Amazon Web Services

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Speaker 2: thirty eight billion dollars for access to hundreds of thousands

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Speaker 2: of those in Nvidia GPUs. And in a moment we'll

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Speaker 2: talk US tech with Brad Bernstein of UBS Wealth Management.

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Speaker 2: But we begin in Hong Kong this morning, where the

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Speaker 2: Global Financial Leader's Investment Summit is underway, and that's where

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Speaker 2: we caught up with Goldmunt Sachs CEO David Solomon. He

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Speaker 2: spoke with Bloomberg zivon Men and David Englace. The first

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Speaker 2: question had to do with Solomon's reaction to the US

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Speaker 2: China trade truce reached last week.

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Speaker 3: I think at the moment, you know, a de escalation

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Speaker 3: is a good thing, but there's obviously a lot of

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Speaker 3: work to do to really arrive at a real stable

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Speaker 3: deal that can endure, you know, over a period of time.

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Speaker 3: I'm encouraged by the prospect of a potential visit from

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Speaker 3: the US President that was telegraphed in the fall, But

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Speaker 3: for the moment, you know, I did not think the

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Speaker 3: escalation on either side was constructive, and so you know,

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Speaker 3: I much prefer a de escalation. I think both both

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Speaker 3: sides really had a purpose in that meeting to talk constructively,

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Speaker 3: to have a more de escalated environment, and that allows

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Speaker 3: now for constructive conversations as they move forward.

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Speaker 1: One year truth though, is there pros and cons to that?

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Speaker 4: That was?

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Speaker 1: I did a bit one year truth though? Between the

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Speaker 1: two Is that a good or bad thing? I mean,

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Speaker 1: what did to do in terms of business sentiment? When

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Speaker 1: there was a twelve month time frame?

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Speaker 3: Now it's better then, it's better than an escalation at

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Speaker 3: unreasonable levels, which is kind of where we were.

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Speaker 4: You know over the most recent time.

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Speaker 3: Trade negotiations are complicated and there are a lot of

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Speaker 3: issues on the table. They need thoughtful responses and responses

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Speaker 3: that can be dur that both.

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Speaker 4: Sides embrace and get to the right place.

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Speaker 3: Yes, there's some uncertainty because it's a one year you know,

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Speaker 3: it's a one year delay.

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Speaker 4: At all of this, but it's also a realistic period of.

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Speaker 3: Time to try to get the right kind of deal

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Speaker 3: done so both economies can move forward in a constructive way.

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Speaker 3: And look, these are the two most important economies in

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Speaker 3: the world. I think it's very important that you know,

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Speaker 3: we arrive in a better place where we can both

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Speaker 3: participate constructively with each other in the global growth of

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Speaker 3: the world.

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Speaker 5: I mean speaking of let me borrow your phrase, participate.

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Speaker 5: There's been a resurgence in equity capital market raising here.

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Speaker 2: In Hong Kong.

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Speaker 5: A lot of the Chinese companies, tech or otherwise are

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Speaker 5: raising capital for the future. I want to get your

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Speaker 5: sense as someone who sits in New York, you travel

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Speaker 5: the course all around the world. Is there a lot

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Speaker 5: of appetite now from US based investors to participate by

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Speaker 5: giving that capital to Chinese companies right now in order

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Speaker 5: to do there's you know, I realize their ambition.

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Speaker 3: Sure, there's there's there's there's more appetite for it than

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Speaker 3: there was twelve months ago. Remember actually last November, sitting

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Speaker 3: in a dinner in the United States with a group

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Speaker 3: of US investors, and this topic came up, and there

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Speaker 3: were a couple of investors that basically said, we all

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Speaker 3: should be looking to China.

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Speaker 4: And the reason, the reason that had evolved that way.

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Speaker 3: Is if you look last fall, the prices had gotten

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Speaker 3: so cheap, the capital flows had moved so in the

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Speaker 3: other direction that you just knew that things would come

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Speaker 3: more into balance and there'd be a recycling.

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Speaker 4: And we've seen that recycling. You've seen a big move.

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Speaker 3: And prices year over year, you've seen more foreign capital

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Speaker 3: come in and start to participate. That's a fundamentally different

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Speaker 3: question about the big capital allocators really fundamentally shifting their

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Speaker 3: allocations up to be higher again. So fearg direct investment

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Speaker 3: in China has come down, and I think one of

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Speaker 3: the big questions is until we understand kind of the

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Speaker 3: trade and the geopolitical landscape, it's harder to see significant

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Speaker 3: shifts back to higher levels of foreign direct investment and.

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Speaker 4: More capital allocation.

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Speaker 3: But for the moment, those flows are making for a

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Speaker 3: better IPO market here and more opportunities here.

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Speaker 4: How do you look at that?

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Speaker 1: I mean, the whole competition has kind of changed into

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Speaker 1: the dynamics, right. You have so many of these Chinese

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Speaker 1: banks now that are doing some of these deals with

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Speaker 1: Chinese companies when it comes to going public.

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Speaker 6: How does Goldman sas compete?

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Speaker 3: Well, you know, Goldmen sex competes just fine, Thank you

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Speaker 3: very much. When it comes to taking public companies public

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Speaker 3: on a global stage. Golden Sex is a leading position.

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Speaker 3: We've had a leading position for fifty years. And there's

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Speaker 3: always competition in the business, and you know, we'll continue

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Speaker 3: to compete, so we welcome competition. But we have a

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Speaker 3: pretty active footprint out here, as you well know, they

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Speaker 3: have a pretty active footprint around the world. And look,

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Speaker 3: one of the big advantages. I just had breakfast this

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Speaker 3: morning with a company here that it's actually a Chinese company,

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Speaker 3: but the you know, the CEO, the founder was here

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Speaker 3: and why does he value Golden Sex. He values Golden

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Speaker 3: Sex because we have access to people, information, capital markets

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Speaker 3: all over the world, you know, not just in a

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Speaker 3: narrow portion of the world.

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Speaker 4: And so it's a competitive business. It always will be.

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Speaker 4: But I'm comfortable that we have the resources in the

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Speaker 4: position to compete.

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Speaker 5: Effectively, right And you know, you know I've been rereading

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Speaker 5: up of course, and I understand your history. You guys

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Speaker 5: have been doing business in China very long time.

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Speaker 6: You guys took the.

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Speaker 5: Big banks public back twenty plus years ago. So I

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Speaker 5: mean you're headed there, in my understanding after here, you're

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Speaker 5: going to China of course to speak with regulators, what

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Speaker 5: have you. What's your long term vision for difranchise in

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Speaker 5: Greater China? What do you want what do you want

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Speaker 5: your franchise to become longer?

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Speaker 3: I think you have to look at Goldman Sachs and

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Speaker 3: just think strategically that as a global firm, that when

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Speaker 3: you think about our businesses, what are our two big

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Speaker 3: businesses global banking and markets, the investment banking and trading

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Speaker 3: business and asset and wealth management. And so if you

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Speaker 3: think about how we think strategically about the firm, what

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Speaker 3: advantages does the firm have Besides the fact that we

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Speaker 3: have at scale businesses, we're very good at those activities.

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Speaker 3: We're leaders of those activities, and we have a right

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Speaker 3: to compete and win, you know, in those activities. Another

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Speaker 3: big advantage for the firm is we're truly global, and

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Speaker 3: in fact we're more global and have a capacity to

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Speaker 3: communicate and interact globally for our clients in a way

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Speaker 3: that not many firms can. And so if you think

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Speaker 3: about where GDP is in the world, where big economies

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Speaker 3: are in the world, you know, China is always going

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Speaker 3: to fit that bill. And barring a much more significant

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Speaker 3: shift in geopolitics and the relationship between the US and China.

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Speaker 3: They're definitely issues. They are definitely things that need to

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Speaker 3: be sorted. But China's going to continue to be one

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Speaker 3: of the most important economies in the world. The US

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Speaker 3: is going to continue to be the most important economy

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Speaker 3: in the world, and we're linked. And so as a

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Speaker 3: big global firm that does what we do, we have

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Speaker 3: to be long term committed to serving our clients that

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Speaker 3: need access to advice, capital and resources, you know, in

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Speaker 3: China and around the world. And of course we've got

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Speaker 3: to do that in whatever environment, the regulatory structure or

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Speaker 3: the geopolitics play up.

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Speaker 4: But we're long term committed. We've been long term committed.

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Speaker 3: And will remain long term committed unless there was something

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Speaker 3: that significantly changed that.

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Speaker 1: I'm glad you mentioned that because we've seen governments being

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Speaker 1: I guess more involved in some of these business deals.

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Speaker 1: I take a look at Intel, for example, I look

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Speaker 1: at Nippon Steel, even C. K. Hutch, which almost as

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Speaker 1: was a sole advisor to what's the advice now to

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Speaker 1: clients now in terms of that intervention risk, Well, you just.

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Speaker 3: Mentioned three different deals and they're completely different, right, I

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Speaker 3: mean they're just completely different. Governments are always going to

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Speaker 3: apply in and weigh in on different transactions.

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Speaker 4: There are regulatory approvals in the United States, Aciphius.

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Speaker 3: There, I mean, there are all sorts of issues where

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Speaker 3: government's weigh in.

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Speaker 4: That is a very different thing, very different thing that.

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Speaker 3: A government taking an investment, you know, in a specific company.

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Speaker 3: Sure it wouldn't surprise you. I'm not a big fan

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Speaker 3: of that as a general practice. That doesn't mean there

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Speaker 3: aren't exceptions, because I believe that the markets should allow

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Speaker 3: capital formation and competition, you know, around companies, and you

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Speaker 3: know this administration is is in one or two situations

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Speaker 3: they're taking actions like that. You know, as I said,

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Speaker 3: I'm not black and white and dogmatic. There can be

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Speaker 3: exceptional circumstances, but I don't think as a general practice

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Speaker 3: having governments take stakes and companies is the direction of travel.

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Speaker 4: We want our free market system to go right.

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Speaker 5: You mentioned how would you describe the current environment for

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Speaker 5: deals going into next year? Because I remember just sitting

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Speaker 5: here this time last year and we were going into

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Speaker 5: twenty twenty five with it was a US election. We

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Speaker 5: weren't sure what were the guardrails were going to be

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Speaker 5: looking at next year. As speaking with Davanne, I can't

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Speaker 5: seem to think about think of a major risk apart

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Speaker 5: from a gainst Fraut evaluation.

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Speaker 6: We can talk about that later.

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Speaker 5: But what's your sense of the environment right now and

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Speaker 5: what risks we have to consider what's not obvious.

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Speaker 3: Well in the you know, in the US, the US

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Speaker 3: is a huge part of the global M and A

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Speaker 3: market either for target or acquire right. You know, I

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Speaker 3: would say it's it's extremely constructive and we see it.

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Speaker 4: You know, in our advisory business.

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Speaker 3: You could take a look at our you know, M

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Speaker 3: and A revenues last quarter, what's your reflection of deals closing.

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Speaker 4: But if you also go through our earnings.

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Speaker 3: Call, you know, we made a comment about the level

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Speaker 3: of our m and A backlaw at a very high

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Speaker 3: level of our MNA backlog, and that's just an indication

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Speaker 3: to the fact that there's a lot of activity inside

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Speaker 3: the firm. I say this is really rooted from the

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Speaker 3: fact that we went through a period for four years

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Speaker 3: during the Biden administration where if you wanted to do

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Speaker 3: something strategically, you wanted to do something significant from an

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Speaker 3: M and A perspective, whatever the question was, the answer

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Speaker 3: was No, we're now an environment where whatever the.

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Speaker 4: Question is, the answer is maybe.

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Speaker 3: And I think CEOs are unleashed in believing that they

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Speaker 3: have a chance of doing strategic things to advance their position,

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Speaker 3: to advance their scale, to advance you know, how they

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Speaker 3: sit competitively. And so we see a tremendous backlog of

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Speaker 3: significant consolidating situations, what i'll call large cap M and A.

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Speaker 3: Large cap M and A in the United States is

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Speaker 3: up very very meaningfully deals over ten billion dollars, very.

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Speaker 4: Very meaningfully year of a year.

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Speaker 3: And so I think we're in a pretty constructive environment.

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Speaker 3: And my expectation is twenty six and twenty seven will

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Speaker 3: be quite constructive in terms of large cap M and A,

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Speaker 3: particularly in the United States.

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Speaker 1: Obviously, we've been talking about AI. That's a big thing

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Speaker 1: in terms of how does it work for Golden assass

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Speaker 1: in terms of operational efficiencies, How does the onslought of

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Speaker 1: AI really going to impact how you hire or even

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Speaker 1: just headcount in this part of the world.

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Speaker 3: Now, Dad, well, it's you know, it's interesting to me

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Speaker 3: that you go right to headcount and and I actually

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Speaker 3: think that you know that that that's a different.

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Speaker 4: Lens than the lens that we would look at.

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Speaker 3: And I don't know if you saw, but when we

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Speaker 3: reported earnings two weeks ago, we put out a memo

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Speaker 3: that we called Goldman Sachs one Goldman SAX three point

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Speaker 3: zero where we highlighted the approach that we were taking

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Speaker 3: to integrating AI and we talked about a handful of

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Speaker 3: things that were goals, including you know, operating efficiency, automation,

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Speaker 3: better sales management, and then we identified six processes that

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Speaker 3: we were going to look at from a very fresh

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Speaker 3: perspective to see if we can and automate them and

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Speaker 3: build better efficiency so that we would have more capacity

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Speaker 3: to invest in areas in the business where we see

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Speaker 3: growth opportunities. And so, you know, I think for a

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Speaker 3: FIRMI Goldman Sachs, there are two avenues here. One, we

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Speaker 3: have very smart people and we can put these tools

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Speaker 3: in their hands and that makes them more productive. And

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Speaker 3: by the way, that's no different than forty years ago

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Speaker 3: when I was starting and somebody gave me a desktop

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Speaker 3: computer and load US one two three software and I

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Speaker 3: have the ability to do a spreadsheet and a fraction

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Speaker 3: of the time that it took me before that tool

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Speaker 3: was put into my hand. That just continues. That's been

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Speaker 3: going on for forty years. It doesn't mean we have

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Speaker 3: less smart people inside Goldman Sacks. You look at Goldman

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Speaker 3: Sachs productivity per person. It's much higher today than it

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Speaker 3: was twenty five years ago, and my guess.

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Speaker 4: Is twenty five years from now it will be much

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Speaker 4: higher than it is today.

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Speaker 3: But our goal is to figure out ways that we

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Speaker 3: can invest in growth because we see lots of growth

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Speaker 3: in our franchise. By using AI technology to reimagine processes,

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Speaker 3: we can create operating efficiencies and it gives us more

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Speaker 3: of a scaled opportunity to reinvest in growth in the business.

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Speaker 4: And look, of course, over the.

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Speaker 3: Way, they are going to be shifts in jobs and

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Speaker 3: job functions, as there always have been. I think one

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Speaker 3: of the things you've got to wrestle with today is

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Speaker 3: the pace of this is quicker, and so since the

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Speaker 3: pace is quicker, there's a chance that it might be

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Speaker 3: a little bit more disruptive in the short term. But

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Speaker 3: at the end of the day, technology changes jobs changes

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Speaker 3: the way people work. This has been going on for

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Speaker 3: a long long time. It is continuing. I don't think

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Speaker 3: it's different this time.

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Speaker 2: That was David Solomon Goldman Sachs CEO, speaking to Bloomberg

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Speaker 2: Savon Men and David Nglace at the Global Financial Leader's

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Speaker 2: Investments Summitt in Hong Kong. We're bringing it to you

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Speaker 2: here on the Daybreak Asia podcast. Welcome back to the

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Speaker 2: Daybreak Asia Podcast. I'm Doug Chrisner. T billion dollar deal

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Speaker 2: between Amazon and open Ai was the catalyst for a

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Speaker 2: rally in US tech stocks. For a closer look now,

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Speaker 2: I'm joined by Brad Bernstein. He is Managing director at

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Speaker 2: UBS Private Wealth Management. Brad is on the line from Philadelphia.

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Speaker 2: Thanks so much for making time to chat with me

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Speaker 2: about this. What did you make of this rally that

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Speaker 2: we had in tech shares today? I know the Amazon

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Speaker 2: story was a big factor, the company signing a seven

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Speaker 2: year deal with open Ai. Talk to me about the

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Speaker 2: way you view this AI trade right now?

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Speaker 7: Well, very simply, the tech earning season so far has

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Speaker 7: just completely reinforced our view that the momentum behind AI

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Speaker 7: continues to build, not slow down as we saw today.

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Speaker 7: The top companies continue to report rising capital spending supported

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Speaker 7: largely by cash flows rather than debt, which is really important,

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Speaker 7: and progress is accelerating towards monetizing these investments. Bottom line,

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Speaker 7: We're just we maintain our conviction AI related stocks should

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Speaker 7: drive equity markets from here, and you know, if you're

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Speaker 7: not allocated to technology and AI, it's time to get

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Speaker 7: some exposure.

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Speaker 2: I'm going to push back a little bit because Alphabet

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Speaker 2: today sold twenty five billion in bonds in the US

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Speaker 2: and in Europe, and last week we heard from Meta

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Speaker 2: it sold thirty billion dollars of bonds. Is it concerning

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Speaker 2: to you that some of these giants are beginning to

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Speaker 2: tap into the corporate credit market a bit?

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Speaker 7: Not really, because I think they if you look at

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Speaker 7: the cash on hand, they have the choice. You know,

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Speaker 7: if you look at app some of the some of

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Speaker 7: the big names, they have the most cash of any

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Speaker 7: companies in the world. And I think they're just taking

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Speaker 7: advantage of bond markets right now with very tight corporate

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Speaker 7: credit spreads.

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Speaker 2: What about the concentration I mean in Nvidia is so

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Speaker 2: much a part of this story. Open ai as well,

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Speaker 2: and I was looking at data talking about the fact

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Speaker 2: that open ai is committed to spending one point four

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Speaker 2: trillion on infrastructure to build out these AI models. That's

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Speaker 2: an unprecedented binge. Does it even prompt a little bit

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Speaker 2: of concern on your hard about an investment bubble.

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Speaker 7: You certainly have to worry about that, but I think

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Speaker 7: these you know, when you look at the companies that

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Speaker 7: are spending the money and you look at their earnings

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Speaker 7: and how fast they're growing, I think it's a different environment.

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Speaker 6: I've been in the business twenty six years.

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Speaker 7: I recall ninety nine and two thousand during the tech

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Speaker 7: boom I started my career during that period. Evaluations are

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Speaker 7: very different today, Earnings are very different today, cash levels

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Speaker 7: are very different today. So we actually still think we're

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Speaker 7: in the early innings in this space.

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Speaker 2: So would you be adding to positions like in nvideo,

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Speaker 2: like Alphabet, like Meta or even Microsoft.

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Speaker 6: You know, we're still very positive on the AI stories.

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Speaker 7: I can't speak specifically on any one company, but as

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Speaker 7: a group, we would want to be invested in beneficiaries

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Speaker 7: of AI spending, whether it's the tech large cap tech,

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Speaker 7: whether it's infrastructure, whether it's energy. So you want to

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Speaker 7: be thinking about beneficiaries of AI because that is the

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Speaker 7: expensive area of the market, but that's also where all

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Speaker 7: the growth is.

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Speaker 2: I'm wondering about the extent to which this move that

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Speaker 2: we seen higher in many of these megacap tech stocks

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Speaker 2: is tied to the notion that the FED is going

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Speaker 2: to be a lot more accommodative going forward. Now, today's

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Speaker 2: FED speak was a little mixed, Lisa Cook, the FED Governor,

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Speaker 2: saying today the risk of further weakness in the labor

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Speaker 2: market is greater than the risk that inflation will pick up.

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Speaker 2: Stephen Meyron, we know his position. He thinks that policy

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Speaker 2: remains too restrictive, although Austin Goulesby today was saying he's

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Speaker 2: more concerned about inflation than jobs. How do you understand

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Speaker 2: the inflation story right now and the degree to which

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Speaker 2: FED policy is driving a lot of the price action

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Speaker 2: in the equity market.

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Speaker 7: So we see five catalysts into the end of the

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Speaker 7: year and in the next year that make us constructible markets.

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Speaker 7: The FED is number one. So keep in mind the

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Speaker 7: FED just started a new rate cutting cycle in September

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Speaker 7: with markets within one percent of an all time high.

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Speaker 7: This has happened thirteen prior time since nineteen eighty where

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Speaker 7: where the S and p's in the ear an all

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Speaker 7: time high within one percent and the Fed starts a

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Speaker 7: rate cutting cycle. The previous thirteen times the market has

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Speaker 7: been positive one year later, all thirteen out of thirteen

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Speaker 7: with an average rate of return around fifteen percent.

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Speaker 6: So we have a very positive setup.

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Speaker 7: We have two voting members speaking this week, we do

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Speaker 7: get an ADP number. You know, we believe despite the

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Speaker 7: fact that we got a dubbish cut last week from

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Speaker 7: Jerome Pale and company, we still believe we're going to

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Speaker 7: get cuts at the next three FED meetings. So we

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Speaker 7: see a cut in December, a cut in January, and

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Speaker 7: a cut in March.

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Speaker 6: Why because of weakening labor.

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Speaker 7: We're in a really unique time, doug where the economy

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Speaker 7: when you look at the economy, you know, Atlanta Fed,

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Speaker 7: the Atlanta Fed today increase their GDP estimate for the

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Speaker 7: third quarter from three point nine to four percent because

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Speaker 7: of the ism number this morning, so they're seeing the

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Speaker 7: Atlanta Fed not ubs. The Atlanta Fed is seeing four

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Speaker 7: percent GDP. But yet at the same time, unemployment is weakening,

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Speaker 7: most likely due to immigration policy and probably because of

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Speaker 7: the uncertainty are around tariffs.

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Speaker 6: So we have a.

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Speaker 7: Unique time in our markets where we have a solid

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Speaker 7: economy which is benefiting corporate America, but weakening employment because

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Speaker 7: of the uncertainties around immigration and trade. So economy, that's

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Speaker 7: the second catalyst. Third catalyst would be the earnings, which

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Speaker 7: have just been unbelievable. Eighty percent that have reported. We've

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Speaker 7: seen two thirds of the S and P five hundred report.

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Speaker 7: We're going to see another twenty five percent or so

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Speaker 7: this week. Eighty percent of companies have beaten. Earnings growth

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Speaker 7: is up around so far twelve point seven percent. Estimates

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Speaker 7: were around nine percent growth. Five of the Magnificent seven

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Speaker 7: reported this past week delivering a mixed but broadly constructive read.

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Speaker 7: So earnings. Earnings are really been unbelievable, I think, supported

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Speaker 7: by the economy. And then we've had dscale. This is

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Speaker 7: number four from trade uncertainty with China in the US.

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Speaker 7: Granted it's only a one year deal, it's not permanent deal,

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Speaker 7: but it certainly de escalates and takes a lot of

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Speaker 7: the short term angst out of the markets that created

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Speaker 7: a lot of volatility in the last few weeks. And

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Speaker 7: then our fifth catalyst is the seven and a half

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Speaker 7: trillion in cash. So every time the Fed cuts, and

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Speaker 7: like I said, we see three more cuts between now

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Speaker 7: and March three of the next meetings, money market rates

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Speaker 7: will come down and it makes stocks and bonds far

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Speaker 7: more attractive, but it's another catalyst for money going into markets.

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Speaker 2: Brad, you mentioned the Atlanta Fed GDP now forecast being

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Speaker 2: at four percent right now. Do you have a sense

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Speaker 2: of how much of that is tied to the AI

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Speaker 2: story and this massive investment in artificial intelligence infrastructure.

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Speaker 7: It's a great question. I think it's certainly is Certainly

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Speaker 7: it's helping. I don't know what percentage it is, but

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Speaker 7: it's certainly having a big impact.

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Speaker 2: Ed Yard Danny, you mentioned your career going back to

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Speaker 2: around the two thousands, and I remember ed at that

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Speaker 2: point with a lot of calls on the equity market

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Speaker 2: back in the day. He is now the founder of

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Speaker 2: Yar Denny Research. He was saying today there are simply

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Speaker 2: too many bulls in the market, and all it takes

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Speaker 2: is one unexpected event that could knock stocks down from

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Speaker 2: their highs, given the fact that we're seeing really really

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Speaker 2: poor market breadth right now. Does he have a point?

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Speaker 7: I think he always has them. I think that's that's

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Speaker 7: true in any environment. I think markets could always have

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Speaker 7: pullbacks based on unexpected news, whether it's trade related, geopolitical,

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Speaker 7: or something that we can't foresee, like the countless experiences

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Speaker 7: we've had in the last ten twenty years with for example,

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Speaker 7: COVID and any of the other things that were unpredictable.

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Speaker 7: You know, markets are an incredible, incredible investment. Stocks have

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Speaker 7: averaged eleven twelve percent going back to nineteen fifty, but

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Speaker 7: they go up eight out of ten years, they go

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Speaker 7: down two out of ten, and we average about a

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Speaker 7: twelve or thirteen percent annual pullback because of the volatility

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Speaker 7: in the markets.

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Speaker 6: You have to understand that.

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Speaker 7: And as long as you're okay with that, and your

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Speaker 7: investments are more than for your money that's invested in

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Speaker 7: the markets is at least for three to five years,

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Speaker 7: it's a great place to be.

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Speaker 2: So, Brad, I guess what I was more specifically wondering

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Speaker 2: is whether or not you're concerned about market breadth and

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Speaker 2: the fact that it seems to be so narrow today.

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Speaker 2: Is that a concern to you at all?

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Speaker 6: It certainly is more narrow than we would like to see.

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Speaker 7: And I think if you look back at the last

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Speaker 7: couple of months, the SMP has crushed the equal Weight

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Speaker 7: Index by one of the biggest discrepancies in many, many years,

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Speaker 7: and it is concerning, and I do think that is

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Speaker 7: something to absolutely watch. But I just think the overwhelming

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Speaker 7: positive catalysts going in to twenty six will overweigh any

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Speaker 7: of those uncertainties and those short term risks.

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Speaker 2: Brad will leave it there. It's always a pleasure. Thanks

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Speaker 2: very much. Brad Bernstein there, Managing director at UBS Private

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Speaker 2: Wealth Management, joining us from Philadelphia here on the Daybreak.

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Speaker 2: As you, thanks for listening to today's episode of the

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Speaker 2: Bloomberg Daybreak Asia Edition podcast. Each weekday, we look at

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Speaker 2: the story shaping markets, finance, and geopolitics in the Asia Pacific.

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Speaker 2: You can find us on Apple, Spotify, the Bloomberg Podcast

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Speaker 2: YouTube channel, or anywhere else you listen. Join us again

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Speaker 2: tomorrow for insight on the market moves from Hong Kong

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Speaker 2: to Singapore and Australia. I'm Doug Chrisner, and this is

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Speaker 2: Bloomberg