WEBVTT - Surveillance: No Safe Havens, Gallo Says

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<v Speaker 1>Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene Jai Ley.

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<v Speaker 1>We bring you insight from the best in economics, finance, investment,

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<v Speaker 1>and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,

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<v Speaker 1>Bloomberg dot Com, and of course on the Bloomberg Right now,

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<v Speaker 1>we will sagui as we do to politics. Less avenge

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<v Speaker 1>worry joins rough Chatow. Now she has been such a

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<v Speaker 1>support to surveillance. With perspective on the election, Laslie, we

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<v Speaker 1>are overwhelmed with newsflow. If you were to write today

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<v Speaker 1>on the election, what would be your lead paragraph? I

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<v Speaker 1>think the lead paragraph has got to be the extraordinary

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<v Speaker 1>turnout that we're seeing. If you across the board early

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<v Speaker 1>voting in person by mail Um, I guess you know

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<v Speaker 1>it's a specially interesting in Texas to see that we're

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<v Speaker 1>just about hitting all ready the number of voters that

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<v Speaker 1>actually voted in total in Texas in twenties sixteen. Word

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<v Speaker 1>about of that number so early early voting turned out

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<v Speaker 1>across the country, but especially in certain states is really remarkable.

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<v Speaker 1>Briefest on your reading of the character of that voting

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<v Speaker 1>In the assumption by Mr Trump that Republicans and mass

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<v Speaker 1>will show up the first Tuesday of November. Is that

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<v Speaker 1>a correct theme? Are we off the mark? Well? I

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<v Speaker 1>think a lot of people believe that that are watching

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<v Speaker 1>this very carefully, that Democrats are more inclined, especially in

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<v Speaker 1>some of those battleground states, especially in the northern battleground

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<v Speaker 1>states where COVID has been very bad, that Democrats are

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<v Speaker 1>more inclined to vote by mail. Of course, we know

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<v Speaker 1>at this point anybody who's voting by mail has to

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<v Speaker 1>carry their ballot in. It's too late to send it

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<v Speaker 1>in through the postal service. The postal service is simply

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<v Speaker 1>not moving quickly enough. But we do expect more Republicans

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<v Speaker 1>turning out on the day on Tuesday. But I think

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<v Speaker 1>as people are hearing this message, they cannot actually put

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<v Speaker 1>their votes from today in the in the in the mailbox.

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<v Speaker 1>And assuming we'll get there on time, we might see

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<v Speaker 1>some turnaround in that. UM. But yes, I think, and

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<v Speaker 1>if that's right, of course, you know what we're led

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<v Speaker 1>to believe. Unless we see a Democratic victory in Florida

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<v Speaker 1>North Carolina, UM that this race could then go on

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<v Speaker 1>for quite some time because it might look like a

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<v Speaker 1>Republican lead at Trump lead early on and then it

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<v Speaker 1>might begin to change over the next several days. But tom,

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<v Speaker 1>you know, there are a lot of people that think

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<v Speaker 1>it's it's very hard to predict how Florida is going

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<v Speaker 1>to go. It's up for Biden right now, but if

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<v Speaker 1>it if it goes the other way, then of course

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<v Speaker 1>it will take some time potentially to to know what's happening. Leslie.

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<v Speaker 1>In eight minutes time, we're gonna get the latest read

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<v Speaker 1>on us jobless claims the last before the election. Typically

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<v Speaker 1>during election seasons, the economy dominates in this one not

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<v Speaker 1>as much. And actually President Trump from much of the

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<v Speaker 1>race dominated and was considered to do better when it

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<v Speaker 1>comes to the economy among voters. Has that changed, you know,

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<v Speaker 1>it's really complicated right now. Um, Donald Trump's number, his

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<v Speaker 1>ratings on the economy have come down. They're still stronger

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<v Speaker 1>um than than certainly by far than this handling of

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<v Speaker 1>the pandemic or any other number of issues. But I

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<v Speaker 1>think right now, you know the pandemic, people are seeing

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<v Speaker 1>the pandemic through to lent two different lenses. They're seeing

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<v Speaker 1>it either as a health crisis or they're seeing the

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<v Speaker 1>pandemic as an economic crisis. So I'm not entirely sure

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<v Speaker 1>that the polling is actually telling us what we need

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<v Speaker 1>to know. For a lot of people on the Republican side,

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<v Speaker 1>certainly amongst Donald Trump's base, they see the pandemic as

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<v Speaker 1>being a problem of the Democrats trying to shut down

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<v Speaker 1>the economy. UM. So it's slightly different, difficult calculation to handle.

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<v Speaker 1>But of course the fact that the economy is not

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<v Speaker 1>doing well, that the stock market didn't do well yesterday,

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<v Speaker 1>that people are concerned about their jobs, UM, this can't

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<v Speaker 1>help the president. It most especially amongst those voters who

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<v Speaker 1>are in minority categories, amongst younger voters UM and amongst

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<v Speaker 1>old voters. The first two categories, younger voters minority voters

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<v Speaker 1>are losing their economic opportunities is at a much higher

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<v Speaker 1>rate than others UM, and so that really affects how

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<v Speaker 1>they feel about the current at the current leadership. Let's

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<v Speaker 1>think right to catch up as alwise, Lendy Benjamari that

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<v Speaker 1>of Channam House, thank you very much, But right now

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<v Speaker 1>we will digress and move to David Leebovitz of JP

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<v Speaker 1>Morgan Asset Management. Of course, trying to bring in a

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<v Speaker 1>strategy to adapt and adjust to a little bit of

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<v Speaker 1>a lift in the market in the last ten minutes. David,

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<v Speaker 1>I've got to go to the arch question. I mentioned

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<v Speaker 1>this early this morning. So many of the pullbacks have

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<v Speaker 1>been truly stochastic, pointing down, we go and we cover

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<v Speaker 1>right back up, straight, straight, straight. Does this have a

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<v Speaker 1>stochastic feel to you or is there something different about

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<v Speaker 1>this pullback? So I think that there there are three

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<v Speaker 1>issues that have really driven the pull back, and there

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<v Speaker 1>are three somewhat familiar issues. So if we get resolution there,

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<v Speaker 1>I do think things could bounce back quickly. Unfortunately, I

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<v Speaker 1>do believe resolution is going to take time. The first

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<v Speaker 1>thing that's going on is that the virus. Virus growth

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<v Speaker 1>is re accelerating. You're seeing it in Europe. I think

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<v Speaker 1>that this is much more about the lockdowns that have

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<v Speaker 1>been imposed in Germany and France, and a little bit

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<v Speaker 1>of you know, wait, will this happen to me too,

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<v Speaker 1>than it is necessarily about the impact of the virus

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<v Speaker 1>on the health of the population. The second thing, and

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<v Speaker 1>I think we talked about this a few weeks when

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<v Speaker 1>I was on with you all um. Policy, you know,

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<v Speaker 1>policy in the United States on the fiscal side continues

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<v Speaker 1>to come up short and Essentially, that is the bridge

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<v Speaker 1>that needs to continue being built to get us to

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<v Speaker 1>the other side of this pandemic more broadly. And then

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<v Speaker 1>I think the third thing that's gone on here is

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<v Speaker 1>that there's a lot of good news priced into the market.

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<v Speaker 1>You know, when we look at the way that stocks

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<v Speaker 1>have responded to better than expected earnings reports, I mean,

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<v Speaker 1>they haven't really done all that much, and so there

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<v Speaker 1>was a lot of good news. There was an assumption

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<v Speaker 1>on the part of a lot of investors that we

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<v Speaker 1>weren't going to have another hiccup with the economy, we

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<v Speaker 1>weren't going to have another hiccup with the virus. And

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<v Speaker 1>what we're seeing is that that's not necessarily the case.

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<v Speaker 1>And so I do think that we will bounce back,

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<v Speaker 1>but but it may be a little bit more challenging

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<v Speaker 1>than than we've seen over the course of the year

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<v Speaker 1>thus far. David, what do you make of the move

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<v Speaker 1>in treasuries or the lack thereof the fact that yields

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<v Speaker 1>have been so resilient and actually moved higher even in

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<v Speaker 1>the face of equity volatility. So I think a big

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<v Speaker 1>part of it is when you decompose what's moving treasury yields,

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<v Speaker 1>um it's really more about an increase in the term

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<v Speaker 1>premium than there is about an increase in inflation expectations.

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<v Speaker 1>And what that represents to us is a little bit

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<v Speaker 1>greater uncertainty around the direction of travel broadly. And you know,

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<v Speaker 1>if we were seeing yields back up on higher inflation expectations,

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<v Speaker 1>that would be a signal to us that investors are

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<v Speaker 1>pricing in better economic growth. UM. I think that this

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<v Speaker 1>backup and yields that we've seen, in the firmness and

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<v Speaker 1>yields that we've seen, represents a fairly wide distribution of

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<v Speaker 1>outcomes that could material lies over the course of the

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<v Speaker 1>coming months, UM. And obviously that's feeding through into the

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<v Speaker 1>performance of FX and then more recently the equity markets

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<v Speaker 1>more broadly. When you read your economics, JP Morgan, do

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<v Speaker 1>you filter in a disinflationary trend? Are you people on

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<v Speaker 1>board a true inflation to come? So I think it's

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<v Speaker 1>it's a good question, And what I would say is

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<v Speaker 1>that for everybody within the walls of Morrigan with my opinion,

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<v Speaker 1>there's somebody with with the opposite opinion. UM. In the

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<v Speaker 1>short run, we don't view inflation as a risk. We

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<v Speaker 1>think output gaps are wide unemployment rates are elevated, and

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<v Speaker 1>we would be surprised to see inflation and pick up

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<v Speaker 1>here in the very short term um long term, and

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<v Speaker 1>there's a lot of debate on this. We do think

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<v Speaker 1>that inflation will remain in check, and I am more

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<v Speaker 1>in the disinflationary camp. We obviously have seen this massive

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<v Speaker 1>debt build over the course of the past couple of savidly,

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<v Speaker 1>but it's there if JP Morgan as a management forgive me, David,

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<v Speaker 1>just some cracks in the line there as you would

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<v Speaker 1>complaining that last line. For Give me, David, I'm sorry.

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<v Speaker 1>Right now, we want to speak with Alberto Gallo with

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<v Speaker 1>real money at RISKUED Algebras investments has been wonderful for

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<v Speaker 1>us on opportunities out there in fixed income. Alberto, there

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<v Speaker 1>must be great comfort right now in cash. For Alberto Gallo,

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<v Speaker 1>is cash an asset? It is, and if interest rates

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<v Speaker 1>are really so low, the opportunity cost of holding a

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<v Speaker 1>bit more in liquidity is much lower because you're giving

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<v Speaker 1>up very low yields. Many government bonds are negative yields.

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<v Speaker 1>So we don't want to be invested all the time.

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<v Speaker 1>We want to be invested when there's an opportunity, and

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<v Speaker 1>you know, the sell off that we're seeing in over

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<v Speaker 1>the past few days is starting to become an opportunity

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<v Speaker 1>in some areas because the back stop by central banks

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<v Speaker 1>and governments is very strong. There's a lot of discussion

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<v Speaker 1>about what d CP will do. They can, obviously, they

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<v Speaker 1>can increase quantity division. They can also increase the t

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<v Speaker 1>LT are also the loans that d CP gives to

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<v Speaker 1>banks in size or maturity. But also Germany very important.

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<v Speaker 1>They announced a support for small businesses for up to

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<v Speaker 1>the revenue so the government will pay anything up to

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<v Speaker 1>revenue loss during the lockdown. So these things are very powerful.

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<v Speaker 1>And we've got phisical policy as well, not just central

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<v Speaker 1>what's so interesting here in Alberta. I think we can

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<v Speaker 1>take it right over to other central banks, including Mr Powell.

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<v Speaker 1>The headline December forecast will allow recalibration of stimulus. Are

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<v Speaker 1>you investing and putting capital at risk understanding that Madame

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<v Speaker 1>Legarde may change the rules of the game in December.

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<v Speaker 1>So we're we're having a virus resurgence today and it's

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<v Speaker 1>gonna come across Europe and probably also in the US.

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<v Speaker 1>But the reaction function policymakers will be pretty strong in

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<v Speaker 1>December with more quantity vision from d CP, potentially also

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<v Speaker 1>from the Fed, and then we have the vaccine. So

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<v Speaker 1>you know, short term the situation is varish, but medium term,

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<v Speaker 1>if you just look two months away, you have these

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<v Speaker 1>very strong backstops to guarantee the survival of the economy.

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<v Speaker 1>So it is a very positive environment for selling puts

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<v Speaker 1>on the economy, so for buying credit. Sovereign bonds don't

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<v Speaker 1>have a lot of value here, so we don't really

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<v Speaker 1>want to buy what the ECB will buy because boones

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<v Speaker 1>are already very negative. Bdps offer in Italy offer very

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<v Speaker 1>little yield, and you know, if governments continue to spend

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<v Speaker 1>at some point some you could see some widening yesterday

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<v Speaker 1>and the day before US treasuries were actually widening as

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<v Speaker 1>the SMP was falling. So we don't have safe aivans anymore.

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<v Speaker 1>We either have cash and then we have risky assets

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<v Speaker 1>that may or may not become attractive, and we prefer

0:10:58.400 --> 0:11:02.199
<v Speaker 1>credit here over over star. You prefer credit. There's a

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<v Speaker 1>lot to unpack here. The idea that the e c

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<v Speaker 1>B is pushing investors out of these safe assets because

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<v Speaker 1>they offer is no value and no hedge At the

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<v Speaker 1>same time, credit instruments don't provide a hedge either, because

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<v Speaker 1>companies can go bankrupt and these uh these investments can

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<v Speaker 1>get wiped out. What's the bet here that the e

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<v Speaker 1>c B is going to delve deeper into credit for

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<v Speaker 1>their purchases, or just that the economy will eventually revive

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<v Speaker 1>and that you will get at least some of your

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<v Speaker 1>money back versus equity, So there is no hedge, that's

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<v Speaker 1>the short answers. Instead of building a portfolio with stocks

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<v Speaker 1>and government debt as in the traditionally sixty forty portfolio,

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<v Speaker 1>what we are doing is to have a bit more

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<v Speaker 1>cash instead of instead of sovereign debt, and instead of stocks,

0:11:47.040 --> 0:11:49.920
<v Speaker 1>were going higher in the copital structure. So rather than

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<v Speaker 1>having you know, equity, which puts you as the most

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<v Speaker 1>junior stakeholder in a company, we're going to be higher

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<v Speaker 1>up in bonds, especially bonds that give you some largeral

0:12:00.520 --> 0:12:04.000
<v Speaker 1>two assets of a company, maybe ships in the case

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<v Speaker 1>of a cruise company, airlines, airplanes in case of an airline,

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<v Speaker 1>and so on, and you can get paid very high

0:12:10.120 --> 0:12:14.800
<v Speaker 1>yields with some protection in those instruments. So the rational

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<v Speaker 1>here is governments are issuing that at very low levels,

0:12:19.520 --> 0:12:21.920
<v Speaker 1>negative rates in case of Germany, and they're giving this

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<v Speaker 1>money to companies to help them to survive. So you're

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<v Speaker 1>there is no safe aivan, but you have a physical

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<v Speaker 1>policy backstop for the largest firms and in the case

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<v Speaker 1>of Germany, even for the smaller ones. So we're not

0:12:35.720 --> 0:12:38.200
<v Speaker 1>worried about, you know, a massive increase in the faults

0:12:38.920 --> 0:12:41.880
<v Speaker 1>in Europe. There may be some sectors that are weak,

0:12:42.040 --> 0:12:44.719
<v Speaker 1>but you know, we know governments are behind and the

0:12:44.760 --> 0:12:47.640
<v Speaker 1>economy will survive, and it makes more sense to lend

0:12:47.679 --> 0:12:49.719
<v Speaker 1>money to these companies than to lend money to the

0:12:49.800 --> 0:12:53.720
<v Speaker 1>state at negative rates. Alberto, when you talk about holding

0:12:53.840 --> 0:12:56.240
<v Speaker 1>some cash, you're sort of underscoring this connuntry. We're not

0:12:56.280 --> 0:12:58.400
<v Speaker 1>getting a lot of returns from the risk your assets,

0:12:58.679 --> 0:13:00.920
<v Speaker 1>and you want to have something on hand if there

0:13:01.040 --> 0:13:03.240
<v Speaker 1>is an entry point of things to sell off. What

0:13:03.440 --> 0:13:06.720
<v Speaker 1>is the appropriate amount of cash now relative to the past.

0:13:07.080 --> 0:13:09.360
<v Speaker 1>They can give you that flexibility while not dragging on

0:13:09.440 --> 0:13:13.520
<v Speaker 1>your turns too much UM in our funds. We have

0:13:13.679 --> 0:13:17.920
<v Speaker 1>been holding over half before the sell off. We had

0:13:20.200 --> 0:13:22.880
<v Speaker 1>um in the in the fund they run in January

0:13:22.920 --> 0:13:28.400
<v Speaker 1>February and currently we have around Generally we don't want

0:13:28.400 --> 0:13:32.120
<v Speaker 1>to be below ten percent, but we can compensate with

0:13:32.480 --> 0:13:35.040
<v Speaker 1>investments that make more money in the in the part

0:13:35.520 --> 0:13:38.280
<v Speaker 1>that he's invested, rather than buying, for example, in the

0:13:38.400 --> 0:13:40.839
<v Speaker 1>bonds at two, where you can make two and you

0:13:40.880 --> 0:13:44.679
<v Speaker 1>can lose tend if you're wrong. Abo, thank you so

0:13:44.840 --> 0:13:48.760
<v Speaker 1>much after this important you seeb announcement with Algebras Investments.

0:13:48.880 --> 0:13:56.760
<v Speaker 1>Greatly appreciate that this morning right now the statement and

0:13:56.840 --> 0:14:00.880
<v Speaker 1>the religion of the market, which is Apple. James Suva

0:14:00.960 --> 0:14:02.800
<v Speaker 1>joins us with City Group. He wrote up a big

0:14:02.920 --> 0:14:05.280
<v Speaker 1>note the other day and I said, let us find

0:14:05.320 --> 0:14:10.120
<v Speaker 1>their senior tech analysts, who is in San Francisco, Jim Suva.

0:14:10.640 --> 0:14:13.160
<v Speaker 1>We could talk all day about Apple, whether our our

0:14:13.280 --> 0:14:16.960
<v Speaker 1>listeners own it or not. Everybody's curious about the juggernaut.

0:14:17.679 --> 0:14:21.640
<v Speaker 1>How's Tim Cook doing is an opening question. What's he

0:14:21.760 --> 0:14:24.720
<v Speaker 1>want to get out of this earnings call? Is he

0:14:24.920 --> 0:14:29.960
<v Speaker 1>gets ready for a Tim Cook two thousand? Well, Tom,

0:14:30.040 --> 0:14:32.880
<v Speaker 1>it's great to hear from you again, my friend. I'll

0:14:32.920 --> 0:14:35.600
<v Speaker 1>tell you Tim Cook. A lot of people always focus

0:14:35.720 --> 0:14:39.040
<v Speaker 1>on Steve Jobs and what he did, which was great

0:14:39.280 --> 0:14:42.840
<v Speaker 1>of launching the iPhone. Many are now starting to see

0:14:43.320 --> 0:14:46.600
<v Speaker 1>that Apple is much more than simply a phonemaker. When

0:14:46.640 --> 0:14:49.840
<v Speaker 1>you think about the Apple Watch and the ear pods

0:14:50.240 --> 0:14:52.480
<v Speaker 1>and the air pods that are doing so much better

0:14:52.640 --> 0:14:56.800
<v Speaker 1>with the audio connectivity, and the Apple Watch with healthcare,

0:14:57.400 --> 0:15:00.360
<v Speaker 1>it is really changing the way we do things. You

0:15:00.440 --> 0:15:03.240
<v Speaker 1>know you think about. It can detect when somebody falls down.

0:15:03.800 --> 0:15:06.720
<v Speaker 1>It can help you with your heart rate, your oxygen levels.

0:15:07.120 --> 0:15:09.640
<v Speaker 1>These are things that are really game changing and they're

0:15:09.680 --> 0:15:11.600
<v Speaker 1>just at the early ending. So we think he's doing

0:15:11.680 --> 0:15:14.440
<v Speaker 1>a very good job at what we call diversifying their

0:15:14.520 --> 0:15:18.120
<v Speaker 1>product portfolio. Even more important, Jim Suva radio producers can

0:15:18.200 --> 0:15:20.480
<v Speaker 1>have it on the risks of the gentleman from Sparta

0:15:20.520 --> 0:15:23.440
<v Speaker 1>can email me at three am, Tom, are you awake?

0:15:23.560 --> 0:15:26.440
<v Speaker 1>Thank you? Apple Watch. What I'm looking at your Jim

0:15:26.520 --> 0:15:28.760
<v Speaker 1>Suvan and Paul and I want to talk financials and

0:15:28.880 --> 0:15:35.320
<v Speaker 1>less concept is capital expenditures are relatively flat compared to

0:15:35.440 --> 0:15:39.680
<v Speaker 1>the ginormous growth. Does that surprise you? Do you model

0:15:39.800 --> 0:15:44.120
<v Speaker 1>CAPEX to increase? Well, that's a very important thing to

0:15:44.160 --> 0:15:47.320
<v Speaker 1>look at because CAPEX you typically think about building out

0:15:47.480 --> 0:15:51.320
<v Speaker 1>new factories and new production lines support your future growth.

0:15:52.160 --> 0:15:55.120
<v Speaker 1>What people forget is Apple down the street from where

0:15:55.160 --> 0:15:58.920
<v Speaker 1>I live put up a brand new, huge mega headquarters

0:15:59.320 --> 0:16:01.960
<v Speaker 1>that's shape like a circle. It almost looks like a spaceship.

0:16:02.560 --> 0:16:05.400
<v Speaker 1>Is very beautiful. So when you look at the year

0:16:05.520 --> 0:16:08.200
<v Speaker 1>over year what we call comparisons or the rate of

0:16:08.320 --> 0:16:10.800
<v Speaker 1>change you're here, it looks kind of flatished, and you're like, huh,

0:16:11.160 --> 0:16:13.000
<v Speaker 1>that seems odd, But you've got to realize they just

0:16:13.160 --> 0:16:17.360
<v Speaker 1>finished this mega, mega, mega headquarters. So with that in mind,

0:16:17.600 --> 0:16:20.080
<v Speaker 1>it actually doesn't surprise us that they're kind of flat.

0:16:20.160 --> 0:16:22.640
<v Speaker 1>And if you exclude that one time, you don't build

0:16:22.680 --> 0:16:25.400
<v Speaker 1>a new headquarters every year, you know, flat is actually

0:16:25.440 --> 0:16:27.280
<v Speaker 1>pretty good. And where they're spending the money is a

0:16:27.320 --> 0:16:30.200
<v Speaker 1>lot on data centers. So when you say, you know,

0:16:30.320 --> 0:16:33.000
<v Speaker 1>hey Siri, or you need things with your apps, they

0:16:33.080 --> 0:16:35.760
<v Speaker 1>simply work. Hey Jim, you know one of the big

0:16:36.200 --> 0:16:39.400
<v Speaker 1>themes around Apple these days is it's back to the phone.

0:16:39.440 --> 0:16:42.760
<v Speaker 1>It's back to five G. Do you think of five

0:16:42.840 --> 0:16:45.480
<v Speaker 1>G as a quote unquote supercycle that we used to

0:16:45.520 --> 0:16:48.840
<v Speaker 1>refer to with Apple or is it something different? I

0:16:48.960 --> 0:16:51.960
<v Speaker 1>think it is something different. I think you're The terminology

0:16:52.040 --> 0:16:55.120
<v Speaker 1>we use a supercycles is for those who of us

0:16:55.160 --> 0:16:58.320
<v Speaker 1>who are older who realize supercycles used to be a

0:16:58.480 --> 0:17:00.960
<v Speaker 1>very big thing in the past, you walk into a

0:17:01.040 --> 0:17:04.000
<v Speaker 1>cell phone store and all the promotions are centered on

0:17:04.160 --> 0:17:07.119
<v Speaker 1>one item, and everybody's got to have that phone, like

0:17:07.240 --> 0:17:10.920
<v Speaker 1>the Motorola razor Um or certain BlackBerry phone, or we

0:17:11.000 --> 0:17:13.800
<v Speaker 1>think about you know, the initial iPhone or two. Those

0:17:13.840 --> 0:17:18.240
<v Speaker 1>are gotta have phones. Now with the iPhone five G connectivity,

0:17:18.320 --> 0:17:20.359
<v Speaker 1>there's not a lot of apps right now, there's not

0:17:20.440 --> 0:17:23.240
<v Speaker 1>a lot of business case uses for why you've got

0:17:23.320 --> 0:17:26.000
<v Speaker 1>to have a five G phone. Now that being said,

0:17:26.200 --> 0:17:29.080
<v Speaker 1>I'm not negative at all because people working from home,

0:17:29.680 --> 0:17:33.160
<v Speaker 1>running their children to different events or school or things

0:17:33.200 --> 0:17:35.640
<v Speaker 1>like that, are working only want a battery that lasts

0:17:35.680 --> 0:17:38.480
<v Speaker 1>all day, and they simply want faster download speeds, and

0:17:38.520 --> 0:17:40.879
<v Speaker 1>the apps are getting more power hungry, and so I

0:17:40.960 --> 0:17:44.280
<v Speaker 1>think it will be a positive sales cycle, but short

0:17:44.359 --> 0:17:46.520
<v Speaker 1>of a supercycle, I think what the next thing is

0:17:46.680 --> 0:17:52.960
<v Speaker 1>is a diversified Apple portfolio where max iPads and watches

0:17:53.000 --> 0:17:55.240
<v Speaker 1>do a lot better by old cell where are you,

0:17:55.359 --> 0:17:58.680
<v Speaker 1>Jim Suva than we gotta run? I'm sorry, what was that?

0:17:58.880 --> 0:18:01.879
<v Speaker 1>By old cell? Where are you? Right now? Um? I

0:18:02.040 --> 0:18:04.800
<v Speaker 1>am in a bye rating with a hundred and twenty

0:18:04.880 --> 0:18:07.280
<v Speaker 1>five dollars for Apple, and I've had a bye rating

0:18:07.320 --> 0:18:10.359
<v Speaker 1>on it for years. Yeah, I remember, you know, it

0:18:10.520 --> 0:18:13.639
<v Speaker 1>was like Lisa was out, Lisa was going down in flames.

0:18:14.480 --> 0:18:18.280
<v Speaker 1>I'm here, I'm listening to just be careful carry No.

0:18:18.600 --> 0:18:21.080
<v Speaker 1>I meant no, Lisa a computer. I mean, did you

0:18:21.200 --> 0:18:23.960
<v Speaker 1>see that, Jim, the disrespect I get from A Bramowitz.

0:18:24.280 --> 0:18:28.080
<v Speaker 1>I'm talking about Lisa the computer. Lisa wasn't even born

0:18:28.200 --> 0:18:31.320
<v Speaker 1>when the Lisa computer. Maybe Lisa you were named after

0:18:31.440 --> 0:18:34.480
<v Speaker 1>the Lisa computer. Jim Suva, thank you so much for

0:18:34.800 --> 0:18:39.240
<v Speaker 1>breaking up the Thanksgiving discussion here with Lisa Brama's passa potatoes.

0:18:39.800 --> 0:18:43.879
<v Speaker 1>Thanks for listening to the Bloomberg Surveillance podcast. Subscribe and

0:18:44.040 --> 0:18:49.320
<v Speaker 1>listen to interviews on Apple Podcasts, SoundCloud, or whichever podcast

0:18:49.400 --> 0:18:53.639
<v Speaker 1>platform you prefer. I'm on Twitter at Tom Keane before

0:18:53.680 --> 0:18:57.480
<v Speaker 1>the podcast. You can always catch us worldwide. I'm Bloomberg

0:18:57.600 --> 0:18:57.879
<v Speaker 1>Radio