1
00:00:02,480 --> 00:00:06,800
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,640 --> 00:00:12,880
Speaker 2: This is the Bloomberg Daybreak Asia podcast. I'm Doug Prisner.

3
00:00:12,920 --> 00:00:15,400
Speaker 2: You can join Brian Curtis and myself for the stories,

4
00:00:15,440 --> 00:00:18,520
Speaker 2: making news and moving markets in the Apec region. You

5
00:00:18,600 --> 00:00:21,439
Speaker 2: can subscribe to the show anywhere you get your podcast

6
00:00:21,520 --> 00:00:24,919
Speaker 2: and always on Bloomberg Radio, the Bloomberg Terminal, and the

7
00:00:24,920 --> 00:00:26,080
Speaker 2: Bloomberg Business App.

8
00:00:26,880 --> 00:00:30,280
Speaker 3: Joining us now is Dan Ives, Managing Directors, Senior equity

9
00:00:30,280 --> 00:00:35,440
Speaker 3: analyst at Webbush Securities. Dan. So, apparently AI is now

10
00:00:35,640 --> 00:00:40,280
Speaker 3: out of favor, especially in that big spending for instance

11
00:00:40,320 --> 00:00:44,920
Speaker 3: by the hyperscalers. It's gone from a distinct positive to

12
00:00:45,080 --> 00:00:47,080
Speaker 3: now a negative. Is that right?

13
00:00:47,280 --> 00:00:47,920
Speaker 1: Yeah?

14
00:00:48,280 --> 00:00:52,159
Speaker 4: I look, I mean if you look at numbers from

15
00:00:52,320 --> 00:00:54,760
Speaker 4: Alphabet and I think what we're gonna see from Microsoft,

16
00:00:54,840 --> 00:00:58,640
Speaker 4: Amazon and others. The cap back spending is off the charts,

17
00:00:59,440 --> 00:01:04,200
Speaker 4: and that's bullish for AI revolution and tech. In terms

18
00:01:04,240 --> 00:01:07,480
Speaker 4: of the selloff today, we view it as a blip.

19
00:01:07,680 --> 00:01:11,520
Speaker 4: You know, there was as bad as it feels today,

20
00:01:11,920 --> 00:01:14,679
Speaker 4: this is not stop in the big tech rally. This

21
00:01:14,840 --> 00:01:17,679
Speaker 4: continues to be our theme that we've seen last year.

22
00:01:17,560 --> 00:01:18,000
Speaker 5: And a half.

23
00:01:18,360 --> 00:01:21,280
Speaker 2: You mentioned Alphabet, I mean was during the call with

24
00:01:21,360 --> 00:01:24,800
Speaker 2: analysts that Sendar Pascai, the CEO, was telling investors, Hey,

25
00:01:24,800 --> 00:01:26,839
Speaker 2: you're going to have to be patient to see concrete

26
00:01:26,880 --> 00:01:30,240
Speaker 2: results from the investments the company has been making in

27
00:01:30,520 --> 00:01:34,200
Speaker 2: artificial intelligence. What's the timeline there? What is he really

28
00:01:34,240 --> 00:01:37,400
Speaker 2: getting at? How long before investors really see the bang

29
00:01:37,480 --> 00:01:37,920
Speaker 2: for the buck.

30
00:01:38,959 --> 00:01:42,440
Speaker 4: Look, I think when you have names like Nvidia and Microsoft,

31
00:01:42,520 --> 00:01:45,559
Speaker 4: you see them more immediately because of where they play

32
00:01:45,600 --> 00:01:47,480
Speaker 4: of course in chips as well as in the cloud

33
00:01:48,320 --> 00:01:53,520
Speaker 4: for Alphabet obviously, for on the Google unit, we're talking

34
00:01:54,040 --> 00:01:57,000
Speaker 4: six nine to twelve months to where it's really going

35
00:01:57,080 --> 00:01:59,800
Speaker 4: to pay off. But when you look at the story

36
00:02:00,520 --> 00:02:03,320
Speaker 4: like Google is the center right now, a transformation story.

37
00:02:03,400 --> 00:02:07,080
Speaker 4: I mean they have EACHAI mojo and I think that

38
00:02:07,160 --> 00:02:10,079
Speaker 4: could had thirty four hours per share to the story.

39
00:02:10,360 --> 00:02:13,400
Speaker 4: So my whole you know, sort of walking investors through

40
00:02:13,400 --> 00:02:18,600
Speaker 4: it today. You don't sell on news like this. You

41
00:02:18,720 --> 00:02:23,280
Speaker 4: kind of use as opportunities form for the winners in

42
00:02:23,320 --> 00:02:25,920
Speaker 4: this AI revolution, and I think Google is front and

43
00:02:25,960 --> 00:02:26,720
Speaker 4: center is born.

44
00:02:27,280 --> 00:02:29,440
Speaker 3: It's been a good policy over the last eight months

45
00:02:29,480 --> 00:02:33,239
Speaker 3: to buy Nvidia after it drops about ten percent. It's

46
00:02:33,240 --> 00:02:35,919
Speaker 3: done that a number of times during that period. Now

47
00:02:35,919 --> 00:02:40,760
Speaker 3: it's down, by my accounting, nineteen percent if you take

48
00:02:40,800 --> 00:02:43,680
Speaker 3: it from an intra day high of one forty down

49
00:02:43,720 --> 00:02:48,760
Speaker 3: to today it closed at one hundred and fourteen. And also,

50
00:02:49,600 --> 00:02:51,639
Speaker 3: you know in Nvidia is not like the hyperscalers. It's

51
00:02:51,639 --> 00:02:54,480
Speaker 3: making money on its business right now.

52
00:02:56,080 --> 00:03:00,000
Speaker 4: Well, I mean the godfather of AI's Jensen an Vidion,

53
00:03:00,320 --> 00:03:03,359
Speaker 4: because they're really the only game in town. We think

54
00:03:03,440 --> 00:03:07,160
Speaker 4: demand is essentially almost sold out through twenty twenty five.

55
00:03:08,120 --> 00:03:10,400
Speaker 4: So that's one where we're gonna.

56
00:03:10,080 --> 00:03:15,040
Speaker 6: See these selloffs and they feel nasty, but the reality

57
00:03:15,160 --> 00:03:18,080
Speaker 6: is that we think tech stocks are up another fifteen

58
00:03:18,080 --> 00:03:20,600
Speaker 6: to twenty percent as we go into the rest.

59
00:03:20,440 --> 00:03:20,839
Speaker 1: Of the year.

60
00:03:21,520 --> 00:03:25,800
Speaker 4: So our whole playbook has been you own the winners

61
00:03:26,400 --> 00:03:30,200
Speaker 4: in these selloffs. And that's why the Bears they come

62
00:03:30,240 --> 00:03:34,400
Speaker 4: out of hibernation mood in days like today even though

63
00:03:34,440 --> 00:03:37,320
Speaker 4: they've missed the tech rally that this is essentially is

64
00:03:37,400 --> 00:03:39,760
Speaker 4: doubled over the last year.

65
00:03:40,240 --> 00:03:45,400
Speaker 2: Can we really highlight the level of concentration risk though

66
00:03:45,400 --> 00:03:48,000
Speaker 2: that there is in this market. There is are so

67
00:03:48,200 --> 00:03:50,840
Speaker 2: few names that we're describing here that are part of

68
00:03:50,880 --> 00:03:54,720
Speaker 2: this theme, and I think that history would say that

69
00:03:54,760 --> 00:03:57,840
Speaker 2: could at some point present a real problem. We're talking

70
00:03:57,880 --> 00:03:59,680
Speaker 2: about a three and a half percent pullback in the

71
00:03:59,760 --> 00:04:03,480
Speaker 2: NaSTA today. Okay, big deal, But longer term, if there

72
00:04:03,520 --> 00:04:06,880
Speaker 2: is this slightest hint of disappointment beyond what we heard

73
00:04:06,960 --> 00:04:10,760
Speaker 2: yesterday from Alphabet, could there be further erosion here?

74
00:04:12,880 --> 00:04:13,840
Speaker 7: Look I mean to.

75
00:04:13,960 --> 00:04:17,680
Speaker 4: Me, when you look to what's happening in tech, I

76
00:04:17,680 --> 00:04:20,640
Speaker 4: act to think it's about the second, third, fourth derivative.

77
00:04:20,920 --> 00:04:24,320
Speaker 4: You look at IBM, you look at Dell, you look

78
00:04:24,360 --> 00:04:29,640
Speaker 4: at a Oracle. Look what happens on Semis, Tartskhnix and others.

79
00:04:30,360 --> 00:04:34,839
Speaker 4: This AI revolution, we believe it's nine pm the AI

80
00:04:34,960 --> 00:04:38,320
Speaker 4: party that goes to four am. I'm not gonna say

81
00:04:38,320 --> 00:04:41,800
Speaker 4: what We're gonna have ebbs and flus and scares. But

82
00:04:41,839 --> 00:04:46,080
Speaker 4: the reality is that all that CAPAC spending that's bullish

83
00:04:46,120 --> 00:04:46,960
Speaker 4: for tech.

84
00:04:48,839 --> 00:04:50,960
Speaker 3: Dan. We had a guest on the program not too

85
00:04:51,000 --> 00:04:55,119
Speaker 3: long ago who said, the absolute number one company here

86
00:04:55,440 --> 00:04:59,520
Speaker 3: to play AI with is Apple. That Apple has shown

87
00:04:59,560 --> 00:05:02,799
Speaker 3: over the of its history that it's it's the smartest

88
00:05:03,120 --> 00:05:08,000
Speaker 3: company out there in how to make things friendly to consumers.

89
00:05:08,080 --> 00:05:11,360
Speaker 3: It turned the smartphone from something that Nokia and Erickson

90
00:05:11,400 --> 00:05:14,360
Speaker 3: did into you know, something everybody had to have.

91
00:05:14,839 --> 00:05:16,160
Speaker 1: Do you see it that way?

92
00:05:16,320 --> 00:05:18,719
Speaker 3: And are there other companies like Apple that can do that,

93
00:05:18,839 --> 00:05:19,880
Speaker 3: like perhaps Samsung.

94
00:05:20,880 --> 00:05:25,000
Speaker 4: Yeah, look, I think I agree one hundred percent that

95
00:05:25,160 --> 00:05:28,680
Speaker 4: Apple is the core AI play, especially when you look

96
00:05:28,680 --> 00:05:31,640
Speaker 4: at Apple intelligence and what's happened with the iPhone sixteen.

97
00:05:32,400 --> 00:05:34,080
Speaker 4: We think that's how you get to a four trillion

98
00:05:34,160 --> 00:05:38,279
Speaker 4: dollar evaluation in Apple with an unparalled in stallbyes. The

99
00:05:38,320 --> 00:05:42,480
Speaker 4: reality is that consumers when they go through AI, they're

100
00:05:42,480 --> 00:05:46,279
Speaker 4: going to go through the Coupertino and essentially an Apple

101
00:05:46,360 --> 00:05:48,599
Speaker 4: device that's a twenty five percent of the world's going

102
00:05:48,640 --> 00:05:53,800
Speaker 4: to access AI. You talk about other names that benefit here,

103
00:05:54,680 --> 00:05:59,240
Speaker 4: I think there's names like an Oracle service. Now I

104
00:05:59,240 --> 00:06:02,360
Speaker 4: look at names like Talenteer that's really a pure play

105
00:06:02,440 --> 00:06:05,719
Speaker 4: name in terms of use cases. So there's a lot

106
00:06:05,760 --> 00:06:10,240
Speaker 4: of you talk about narrow. It is narrow now, but

107
00:06:10,279 --> 00:06:12,359
Speaker 4: over the next one to two years it's going to

108
00:06:12,360 --> 00:06:13,080
Speaker 4: be a lot broader.

109
00:06:13,279 --> 00:06:15,599
Speaker 2: So it's nine pm, the party's going to four in

110
00:06:15,640 --> 00:06:19,839
Speaker 2: the morning. Do we need to talk about regulatory risk?

111
00:06:20,200 --> 00:06:22,120
Speaker 2: Is there at some point to move on the part

112
00:06:22,160 --> 00:06:26,600
Speaker 2: of government officials to get involved in how artificial intelligence

113
00:06:27,040 --> 00:06:29,200
Speaker 2: is regulated? Is that a concern that you have.

114
00:06:30,400 --> 00:06:33,040
Speaker 4: I mean that's at four thirty five am, when you're

115
00:06:33,080 --> 00:06:35,200
Speaker 4: at the diner after, when you're at when you're at

116
00:06:35,240 --> 00:06:36,760
Speaker 4: the diner after the party.

117
00:06:37,560 --> 00:06:38,400
Speaker 1: So the point is.

118
00:06:38,360 --> 00:06:40,760
Speaker 4: That, yeah, regular toy will be there, but for now

119
00:06:40,800 --> 00:06:43,760
Speaker 4: it's not. I mean it's self regulation. We spent a

120
00:06:43,800 --> 00:06:47,200
Speaker 4: lot of time in the Belwy. Regulatory is going thirty

121
00:06:47,240 --> 00:06:49,159
Speaker 4: miles an hour in a minivan.

122
00:06:48,839 --> 00:06:49,520
Speaker 1: The right lane.

123
00:06:49,560 --> 00:06:52,480
Speaker 4: The technology is in a Bugatti going one hundred miles

124
00:06:52,480 --> 00:06:54,520
Speaker 4: an hour in the left lane. So I don't think

125
00:06:54,600 --> 00:06:57,080
Speaker 4: regular toy is going to be an issue. And I

126
00:06:57,120 --> 00:07:01,000
Speaker 4: think regardless with presidential can wins, I also think we're

127
00:07:01,000 --> 00:07:04,320
Speaker 4: gonna see less regulatory and which ultimately I think is

128
00:07:04,320 --> 00:07:05,440
Speaker 4: bullish or big tech.

129
00:07:07,080 --> 00:07:10,640
Speaker 3: Well let's get a broader question answered here from you, Dan.

130
00:07:11,360 --> 00:07:13,400
Speaker 3: Do we need to worry about a slow down in

131
00:07:13,480 --> 00:07:16,040
Speaker 3: the economy as kind of spoiling the party or no?

132
00:07:17,880 --> 00:07:19,760
Speaker 4: I mean I think right now, unless you have a

133
00:07:20,960 --> 00:07:25,320
Speaker 4: telescroup or binocurate, you don't see a recession, right So

134
00:07:25,440 --> 00:07:30,800
Speaker 4: I think we're in this Goldilocks soft landing. I'm not

135
00:07:30,840 --> 00:07:32,760
Speaker 4: saying it's a Rosen Champagne.

136
00:07:32,760 --> 00:07:34,880
Speaker 6: There's clearly choppiness, but if you look at.

137
00:07:34,840 --> 00:07:39,480
Speaker 4: Overall tech earnings. It's bullish. Who could overall bank broader

138
00:07:39,600 --> 00:07:42,160
Speaker 4: to I mean, eighty five percent are hit or at

139
00:07:42,160 --> 00:07:46,720
Speaker 4: being earnings, So I think that will be in the background.

140
00:07:47,520 --> 00:07:50,520
Speaker 4: But it's not going to stop this AI freight train,

141
00:07:51,240 --> 00:07:54,080
Speaker 4: especially when I've used kind of a Goldilocks backdrop and

142
00:07:54,120 --> 00:07:57,120
Speaker 4: the FED they're gonna be cutting, They're not hiking.

143
00:07:57,880 --> 00:08:00,760
Speaker 3: So I was laughing at the time, but I just

144
00:08:00,800 --> 00:08:03,280
Speaker 3: want to know. Was it a Lamborghini in the fast

145
00:08:03,360 --> 00:08:10,440
Speaker 3: lane or a Ferrari? What was it? I I can

146
00:08:10,480 --> 00:08:13,560
Speaker 3: picture you in that with your flashy colors too. You

147
00:08:13,560 --> 00:08:15,080
Speaker 3: wearing flashy colors right at the moment.

148
00:08:16,320 --> 00:08:18,840
Speaker 4: I am wearing flashy colors at the moment.

149
00:08:21,880 --> 00:08:24,080
Speaker 3: All right, Dan, Thank you. Dan. I was managing director

150
00:08:24,160 --> 00:08:33,800
Speaker 3: senior equity analyst at Wedbush Securities. Let's get to Vonnie

151
00:08:33,840 --> 00:08:37,280
Speaker 3: Quinn Bloomberg Television on air correspond We wanted to talk

152
00:08:37,280 --> 00:08:40,240
Speaker 3: a little bit more about Joe Biden's address. Well, as

153
00:08:40,440 --> 00:08:44,280
Speaker 3: Ed reported their Vanni, the speech was really dominated by

154
00:08:44,640 --> 00:08:48,160
Speaker 3: comments about his legacy. He did talk about passing the

155
00:08:48,200 --> 00:08:51,559
Speaker 3: torch to a new generation, getting some new voices in

156
00:08:51,600 --> 00:08:54,200
Speaker 3: that he would perform his duties to the best of

157
00:08:54,240 --> 00:08:57,079
Speaker 3: his abilities, and he would support Kamala Harris. What sort

158
00:08:57,120 --> 00:08:59,679
Speaker 3: of reaction are we hearing from the marketplace.

159
00:09:00,960 --> 00:09:02,880
Speaker 7: Well, it was a speech that was heavy on the

160
00:09:02,880 --> 00:09:05,240
Speaker 7: defensive democracy as well, Brian, and I think that will

161
00:09:05,280 --> 00:09:07,880
Speaker 7: become a scene throughout the rest of the election fight.

162
00:09:07,960 --> 00:09:10,600
Speaker 7: You heard Kamala Harris talking about it there in excerpt

163
00:09:10,679 --> 00:09:14,120
Speaker 7: from her rally speech. As for reaction, I think it

164
00:09:14,200 --> 00:09:16,600
Speaker 7: was a little bit anticipated, you know that we would

165
00:09:16,600 --> 00:09:18,480
Speaker 7: hear from Biden that he would focus a little bit

166
00:09:18,480 --> 00:09:19,960
Speaker 7: on his legacy. But I think it was a little

167
00:09:19,960 --> 00:09:21,920
Speaker 7: bit of a surprise that there was no mention of

168
00:09:21,920 --> 00:09:25,080
Speaker 7: his stepping out being due to health concerns, but rather

169
00:09:25,200 --> 00:09:28,560
Speaker 7: as ready to pass the baton to United America. When

170
00:09:28,600 --> 00:09:30,360
Speaker 7: you think about it, that was actually quite clever on

171
00:09:30,400 --> 00:09:32,640
Speaker 7: the part of the Democrats, right because it took the

172
00:09:32,679 --> 00:09:36,680
Speaker 7: focus of this complaint that's been levied at Harris that

173
00:09:36,760 --> 00:09:39,120
Speaker 7: she allowed Biden to stay on as president when perhaps

174
00:09:39,160 --> 00:09:42,040
Speaker 7: he was ailing or wasn't quite up to it as

175
00:09:42,080 --> 00:09:45,160
Speaker 7: he had been in previous years. It takes that out

176
00:09:45,160 --> 00:09:47,400
Speaker 7: of the equation. He didn't say he was stepping out

177
00:09:47,480 --> 00:09:50,520
Speaker 7: due to health concerns. It also takes away some of

178
00:09:50,559 --> 00:09:55,079
Speaker 7: the other complaints levied at Harris, and it puts back

179
00:09:55,200 --> 00:09:57,600
Speaker 7: into the agenda the fact that he's passing the baton

180
00:09:57,720 --> 00:10:00,520
Speaker 7: to a younger generation. He said, sight of the best

181
00:10:00,520 --> 00:10:02,880
Speaker 7: way forward is to pass the torch, best way to

182
00:10:03,080 --> 00:10:06,200
Speaker 7: unite our nation. So he gave some talking points and

183
00:10:06,240 --> 00:10:09,560
Speaker 7: he gave some reasons for perhaps the term campaign to

184
00:10:09,679 --> 00:10:12,719
Speaker 7: get a little more vociferous on some of their complaints.

185
00:10:13,240 --> 00:10:17,400
Speaker 2: It's interesting because we know the president is still recovering

186
00:10:17,559 --> 00:10:21,119
Speaker 2: from a COVID infection. But when you look at the performance,

187
00:10:21,200 --> 00:10:23,840
Speaker 2: or you kind of heard it tonight, you can it

188
00:10:23,920 --> 00:10:27,600
Speaker 2: kind of underscores the decision to step away from the campaign,

189
00:10:27,679 --> 00:10:31,959
Speaker 2: and it seemed very low energy. Is that a fair statement,

190
00:10:32,000 --> 00:10:32,840
Speaker 2: do you think, Vannie?

191
00:10:33,440 --> 00:10:36,840
Speaker 7: Well, I don't opine on the president's house because you know,

192
00:10:36,880 --> 00:10:39,280
Speaker 7: after all, he is only just out of COVID quarantine

193
00:10:39,440 --> 00:10:41,839
Speaker 7: and it is still a question mark as to what

194
00:10:41,960 --> 00:10:44,640
Speaker 7: exactly is going on healthwise with the president. But he

195
00:10:44,679 --> 00:10:47,199
Speaker 7: did really underscore that he intends to serve out the

196
00:10:47,280 --> 00:10:49,200
Speaker 7: rest of his term, which is another six months, and

197
00:10:49,280 --> 00:10:51,680
Speaker 7: he put a lot on the agenda. He said that

198
00:10:51,679 --> 00:10:54,400
Speaker 7: he wanted to stop putting from taking over Ukraine, keep

199
00:10:54,480 --> 00:10:56,880
Speaker 7: NATO strong. He talked about China, He talked about any

200
00:10:56,840 --> 00:10:59,560
Speaker 7: of the war in Gaza, bringing all the hostages home. Now,

201
00:10:59,600 --> 00:11:02,080
Speaker 7: we all know there's not that much that can be

202
00:11:02,120 --> 00:11:05,000
Speaker 7: done in six months in general, let alone in a

203
00:11:05,080 --> 00:11:08,280
Speaker 7: lane duck session which also has an election involved. But

204
00:11:08,520 --> 00:11:11,160
Speaker 7: there was a lot of ambitions still there, and he

205
00:11:11,200 --> 00:11:14,120
Speaker 7: did mention his achievements, you know, the American Rescue Plan,

206
00:11:14,320 --> 00:11:16,960
Speaker 7: he passed a clean energy law. Also, he funded some

207
00:11:17,040 --> 00:11:19,520
Speaker 7: infrastructure and sending the doctor manufacturing, and he made sure

208
00:11:19,679 --> 00:11:21,959
Speaker 7: to point all of those achievements out.

209
00:11:22,240 --> 00:11:25,560
Speaker 3: Doug, does it feel like maybe he steps back a

210
00:11:25,559 --> 00:11:28,240
Speaker 3: little bit here during this next six month period and

211
00:11:28,280 --> 00:11:31,040
Speaker 3: maybe Kamala Harris takes a little bit more of the

212
00:11:31,800 --> 00:11:33,319
Speaker 3: sort of front line positioning.

213
00:11:34,880 --> 00:11:36,240
Speaker 7: I didn't get that impression, Brian.

214
00:11:36,360 --> 00:11:37,040
Speaker 1: He didn't say that.

215
00:11:37,080 --> 00:11:38,720
Speaker 7: In fact, he said the opposite. He also said that

216
00:11:38,760 --> 00:11:40,760
Speaker 7: he was going to be on the campaign trail with her,

217
00:11:41,040 --> 00:11:43,000
Speaker 7: and you know we heard from him when she spoke

218
00:11:43,040 --> 00:11:44,680
Speaker 7: to her campaign staffers that he was going to be

219
00:11:44,720 --> 00:11:47,240
Speaker 7: quote fully engaged. We also know that he is a

220
00:11:47,240 --> 00:11:49,840
Speaker 7: full agenda again tomorrow back in the White House today,

221
00:11:49,880 --> 00:11:52,840
Speaker 7: and he had his Reach to the Nation tonight and

222
00:11:52,880 --> 00:11:55,440
Speaker 7: then on Thursday, he's going to be a meeting with

223
00:11:55,520 --> 00:11:57,920
Speaker 7: the Israeli Prime Minister Benjamin Nett and Yahoo. That's going

224
00:11:57,960 --> 00:12:00,800
Speaker 7: to be a very important meeting, you know, even though

225
00:12:00,840 --> 00:12:03,280
Speaker 7: he may not be president in twenty twenty five, that's

226
00:12:03,280 --> 00:12:06,120
Speaker 7: for sure. Netanya who will want to pass on some

227
00:12:06,160 --> 00:12:08,280
Speaker 7: messages to Kamala Harris, who has been a little bit

228
00:12:08,760 --> 00:12:10,960
Speaker 7: stronger on the rhetoric when it comes to Israel. And

229
00:12:11,000 --> 00:12:14,520
Speaker 7: it's a conduct in Gaza in its war on hamas

230
00:12:14,760 --> 00:12:16,760
Speaker 7: you know. So there is a full agenda, and he

231
00:12:16,800 --> 00:12:19,560
Speaker 7: does intend to go out there and keep fundraising as

232
00:12:19,559 --> 00:12:20,319
Speaker 7: well for Harris.

233
00:12:20,440 --> 00:12:22,439
Speaker 2: Yeah, and the President did say that he intends to

234
00:12:22,520 --> 00:12:25,240
Speaker 2: keep working to end the war in Gaza. That meeting

235
00:12:25,280 --> 00:12:28,000
Speaker 2: that you kind of allude to, do, we know what

236
00:12:28,120 --> 00:12:31,880
Speaker 2: time that's going to happen tomorrow, Biden's meeting with Benjaminette Yahoo.

237
00:12:32,240 --> 00:12:35,040
Speaker 7: I believe it was originally scheduled for about one thirty

238
00:12:35,160 --> 00:12:38,360
Speaker 7: pm Washington time. So we'll see if that stays on

239
00:12:38,440 --> 00:12:40,720
Speaker 7: the agenda at that time. We know that as well.

240
00:12:40,800 --> 00:12:43,040
Speaker 7: Harris is going to meet with Netanya who separately, and

241
00:12:43,080 --> 00:12:45,559
Speaker 7: he's going to meet with Donald Trump Friday. I mean,

242
00:12:45,600 --> 00:12:48,760
Speaker 7: it's a precarious situation for Netan Yaho in some ways, right,

243
00:12:48,760 --> 00:12:50,360
Speaker 7: because if there is a change of leader, he's going

244
00:12:50,400 --> 00:12:52,559
Speaker 7: to want to make sure that the next leader is

245
00:12:52,559 --> 00:12:55,600
Speaker 7: on his side. And we also know that both Kamala

246
00:12:55,600 --> 00:12:57,640
Speaker 7: Harris and Donald Trump have you know, bone to pick

247
00:12:57,679 --> 00:13:01,120
Speaker 7: with Natanya who Trump very very Hurtnia Who's decision to

248
00:13:01,160 --> 00:13:03,920
Speaker 7: congratulate Biden when he won the twenty twenty election. And

249
00:13:04,200 --> 00:13:08,200
Speaker 7: you know he has never Lettnia who forget that. You

250
00:13:08,240 --> 00:13:12,400
Speaker 7: know it was under Trump that the embassy moved to Jerusalem,

251
00:13:12,400 --> 00:13:14,520
Speaker 7: for example, which is something that Neia who had looked

252
00:13:14,520 --> 00:13:16,680
Speaker 7: for for a long time. And Trump is going to

253
00:13:16,679 --> 00:13:19,040
Speaker 7: want something from Netnia who in order to secure the

254
00:13:19,040 --> 00:13:19,600
Speaker 7: ally ship.

255
00:13:19,760 --> 00:13:24,760
Speaker 3: Again, I'm just curious whether you were surprised, and maybe

256
00:13:24,800 --> 00:13:27,800
Speaker 3: the Republicans themselves were surprised. The President didn't really talk

257
00:13:27,840 --> 00:13:30,280
Speaker 3: too much about Donald Trump and the Republicans other than

258
00:13:30,720 --> 00:13:33,880
Speaker 3: again highlighting the comment that you know, he's making this

259
00:13:33,960 --> 00:13:37,640
Speaker 3: move because he wants he wants to preserve democracy.

260
00:13:38,600 --> 00:13:41,240
Speaker 7: I think it was tacitly there, Brian, if something can

261
00:13:41,280 --> 00:13:43,400
Speaker 7: be tacitly there in a speech, he did, you know,

262
00:13:43,559 --> 00:13:46,680
Speaker 7: underscore America's choice in the selection. And I'll give you

263
00:13:46,720 --> 00:13:49,880
Speaker 7: one quote, and I'm not suggesting that Donald Trump should

264
00:13:49,880 --> 00:13:51,840
Speaker 7: be in your head when you know, we we listened

265
00:13:51,840 --> 00:13:53,240
Speaker 7: to this. But he did say the great thing about

266
00:13:53,240 --> 00:13:56,640
Speaker 7: America is here kings and dictators do not rule the

267
00:13:56,720 --> 00:13:59,680
Speaker 7: people who the power is in your hands. So I

268
00:13:59,679 --> 00:14:03,560
Speaker 7: think in the background he was telling people, look, you

269
00:14:03,720 --> 00:14:06,240
Speaker 7: now have a chance to reset America. He talked about

270
00:14:06,240 --> 00:14:10,360
Speaker 7: America being an idea, you know, the most powerful idea

271
00:14:10,360 --> 00:14:11,760
Speaker 7: in the history of the world. And I think he

272
00:14:11,840 --> 00:14:15,360
Speaker 7: was begging people to perhaps make a choice based on

273
00:14:16,760 --> 00:14:18,280
Speaker 7: real analysis and this election.

274
00:14:18,480 --> 00:14:21,440
Speaker 3: Yeah, excellent, Vonnie, you're on fire this morning. Thanks so

275
00:14:21,520 --> 00:14:22,960
Speaker 3: much for joining us. We've got to get you back

276
00:14:23,000 --> 00:14:27,120
Speaker 3: on this program more often. Annie Quinn Bloomberg TV US

277
00:14:27,560 --> 00:14:28,960
Speaker 3: on air correspondent.

278
00:14:35,480 --> 00:14:38,080
Speaker 2: I want to bring in Luke Stone, now portfolio manager

279
00:14:38,080 --> 00:14:42,360
Speaker 2: at Winthrop Capital Management. Luke, let's talk about the price

280
00:14:42,400 --> 00:14:44,560
Speaker 2: action today, kind of a meltdown in some of these

281
00:14:44,640 --> 00:14:47,520
Speaker 2: artificial intelligence names. Was this long overdue?

282
00:14:48,960 --> 00:14:49,160
Speaker 1: Yeah?

283
00:14:49,200 --> 00:14:52,520
Speaker 5: I think, first off, thank you very much for having me.

284
00:14:53,200 --> 00:14:55,960
Speaker 5: I think really the word of the day today was rotation.

285
00:14:56,480 --> 00:14:58,840
Speaker 5: I think you heard that pretty much throughout every financial

286
00:14:58,880 --> 00:15:02,720
Speaker 5: media outlet across the board. Obviously a lot of market

287
00:15:02,720 --> 00:15:07,360
Speaker 5: activity focused around the mega megacap tech names focused around

288
00:15:07,360 --> 00:15:12,080
Speaker 5: the Magnificent seven and kind of put more of a

289
00:15:12,120 --> 00:15:14,680
Speaker 5: focus on the remaining four ninety three of the S

290
00:15:14,720 --> 00:15:17,240
Speaker 5: and P five hundred. There So, when you look at

291
00:15:17,280 --> 00:15:21,600
Speaker 5: specifically the AI manufacturing sleeve of the S and P

292
00:15:21,680 --> 00:15:25,480
Speaker 5: five hundred, I mean they took a huge hit. And

293
00:15:25,520 --> 00:15:27,800
Speaker 5: I think it's really the market's way of saying, hey,

294
00:15:28,720 --> 00:15:31,360
Speaker 5: it's great that you have these earnings projections, but you

295
00:15:31,400 --> 00:15:34,760
Speaker 5: actually have to hit them. So again, the name of

296
00:15:34,800 --> 00:15:37,440
Speaker 5: the day was rotation. I think we saw people start

297
00:15:37,480 --> 00:15:42,760
Speaker 5: to take profits and prices just fall precipitously.

298
00:15:43,000 --> 00:15:45,160
Speaker 3: One of the questions I put to guests yesterday was

299
00:15:45,400 --> 00:15:48,640
Speaker 3: are we entering into a period here where spending on

300
00:15:48,800 --> 00:15:52,320
Speaker 3: AI might go from a positive to a negative unless

301
00:15:52,360 --> 00:15:55,960
Speaker 3: you can really show a good return on investment. And

302
00:15:56,160 --> 00:15:58,400
Speaker 3: it feels to me like the market really rammed home

303
00:15:58,440 --> 00:15:59,200
Speaker 3: that point today.

304
00:16:00,680 --> 00:16:02,920
Speaker 5: Yeah, I think that's completely valid, and I think there's

305
00:16:02,960 --> 00:16:07,200
Speaker 5: parallels when you look at some of you know, very

306
00:16:07,280 --> 00:16:10,480
Speaker 5: CAPEX heavy business lines in the past. You know, the

307
00:16:10,720 --> 00:16:13,160
Speaker 5: first thing that comes to mind is is meta with

308
00:16:13,240 --> 00:16:15,440
Speaker 5: their soare into the metaverse about a year and a

309
00:16:15,440 --> 00:16:19,440
Speaker 5: half ago, posting huge capital expenditure numbers, and the market

310
00:16:19,440 --> 00:16:24,720
Speaker 5: really reacted negatively, So yes, I do think that huge

311
00:16:24,760 --> 00:16:29,720
Speaker 5: capex into AI could pose a negative threat with some

312
00:16:29,760 --> 00:16:30,640
Speaker 5: of these big names.

313
00:16:30,760 --> 00:16:32,800
Speaker 2: It's kind of interesting because then you get the news

314
00:16:32,800 --> 00:16:35,400
Speaker 2: from IBM after the bell and the company reported a

315
00:16:35,400 --> 00:16:39,760
Speaker 2: big jump in bookings for its artificial intelligence business. Do

316
00:16:39,840 --> 00:16:42,760
Speaker 2: we have to treat this more case by case than

317
00:16:42,920 --> 00:16:46,440
Speaker 2: kind of broad theme of let's say, artificial intelligence when

318
00:16:46,440 --> 00:16:51,080
Speaker 2: we're trying to track the trajectory of where this technology

319
00:16:51,120 --> 00:16:51,760
Speaker 2: may take us.

320
00:16:52,800 --> 00:16:55,440
Speaker 5: I think that's a valid point. You know, you look

321
00:16:55,480 --> 00:16:59,800
Speaker 5: at the largest names in AI, specifically in the chip space,

322
00:17:00,160 --> 00:17:03,080
Speaker 5: you think you're in the video, is your TSMCS, so

323
00:17:03,120 --> 00:17:05,360
Speaker 5: on and so forth. I mean, they had the real

324
00:17:05,400 --> 00:17:08,879
Speaker 5: precipitous gains through the start of the year, while some

325
00:17:08,960 --> 00:17:12,920
Speaker 5: of the domestic manufacturers, you know, it's some what I

326
00:17:12,960 --> 00:17:16,239
Speaker 5: would call legacy manufacturers like your IBMS.

327
00:17:16,720 --> 00:17:18,320
Speaker 1: Really lagged a little bit.

328
00:17:18,800 --> 00:17:22,280
Speaker 5: So I think you're seeing some catch up that's taking

329
00:17:22,320 --> 00:17:27,560
Speaker 5: place with the names like IBM and starting to not

330
00:17:27,640 --> 00:17:31,240
Speaker 5: close the gap, but gain some of the benefits of

331
00:17:32,160 --> 00:17:33,280
Speaker 5: their chip manufacturing.

332
00:17:34,359 --> 00:17:36,680
Speaker 3: So better bread than the market would be a great thing,

333
00:17:36,760 --> 00:17:39,240
Speaker 3: I think, And you know, but we had a lot

334
00:17:39,240 --> 00:17:43,000
Speaker 3: of factors really contributing today. It was not only that,

335
00:17:43,080 --> 00:17:46,240
Speaker 3: it's not only what we talked about with the overcrowded,

336
00:17:46,280 --> 00:17:51,840
Speaker 3: overbought AI megacap tech sector, but also seasonality of valuations.

337
00:17:52,040 --> 00:17:54,240
Speaker 3: A big part of it. And what I want to

338
00:17:54,240 --> 00:17:57,639
Speaker 3: ask you about now is the beginnings of a growth

339
00:17:57,680 --> 00:18:00,399
Speaker 3: scare creeping in. You had those Dudley con Man, so

340
00:18:00,480 --> 00:18:03,360
Speaker 3: we had some other key economists saying the FED has

341
00:18:03,400 --> 00:18:06,399
Speaker 3: got to get movie here soon. This has changed pretty quickly.

342
00:18:06,440 --> 00:18:08,920
Speaker 3: But do you buy the growth scare? Personally? I don't

343
00:18:08,960 --> 00:18:09,440
Speaker 3: that much.

344
00:18:10,520 --> 00:18:15,560
Speaker 5: Yeah, you know, it's really hard to cast a straight

345
00:18:15,560 --> 00:18:18,400
Speaker 5: and narrow thought process behind it. I think we do

346
00:18:18,440 --> 00:18:21,879
Speaker 5: start to see a macroeconomic environment that is starting to

347
00:18:21,880 --> 00:18:24,600
Speaker 5: show some cracks. I think you specifically see it within

348
00:18:24,640 --> 00:18:27,800
Speaker 5: the labor market. You're seeing unemployment start to tick upward

349
00:18:28,359 --> 00:18:32,680
Speaker 5: and job growth is occurring in some of the lower

350
00:18:32,760 --> 00:18:37,440
Speaker 5: skill and part time jobs. That's leading to some potential issues.

351
00:18:38,160 --> 00:18:41,360
Speaker 5: I don't necessarily think that we're going to fall off

352
00:18:41,400 --> 00:18:44,000
Speaker 5: of a cliff per se, and I think that's some

353
00:18:44,080 --> 00:18:48,480
Speaker 5: of the concerns when you see market participants begging for

354
00:18:49,000 --> 00:18:52,320
Speaker 5: a rate cut. I think market expectations right now PEG

355
00:18:52,680 --> 00:18:55,359
Speaker 5: the first rate cut to take place in September. So

356
00:18:55,960 --> 00:18:59,520
Speaker 5: I don't necessarily see us falling off of a cliff,

357
00:18:59,560 --> 00:19:05,200
Speaker 5: but I think we're starting to see an economic market

358
00:19:05,240 --> 00:19:06,879
Speaker 5: that's showing cracks.

359
00:19:07,520 --> 00:19:09,280
Speaker 2: And one of the reasons perhaps that we saw that

360
00:19:09,280 --> 00:19:11,200
Speaker 2: big drop and yield at the shorter end of the curve.

361
00:19:11,240 --> 00:19:13,280
Speaker 2: I think the two year was down six basis points

362
00:19:13,280 --> 00:19:17,359
Speaker 2: in New York, were down another one plus basis point

363
00:19:17,560 --> 00:19:21,320
Speaker 2: in the Tokyo session. Here is it still your expectations

364
00:19:21,320 --> 00:19:24,159
Speaker 2: that the Fed does two twenty five basis point rate

365
00:19:24,240 --> 00:19:25,560
Speaker 2: cuts and nothing more this year.

366
00:19:26,600 --> 00:19:30,600
Speaker 5: So we've seen that the market's really pegging that activity

367
00:19:30,720 --> 00:19:32,680
Speaker 5: kind of at two cuts by the end of the

368
00:19:32,720 --> 00:19:37,080
Speaker 5: year and then a coin flip in the December meeting.

369
00:19:37,720 --> 00:19:40,080
Speaker 5: I think if we had to make a bet, it

370
00:19:40,080 --> 00:19:42,560
Speaker 5: would be on the under side there. I just don't

371
00:19:42,600 --> 00:19:49,840
Speaker 5: see unemployment ticking drastically upward for us to justify seventy

372
00:19:49,840 --> 00:19:54,439
Speaker 5: five basis points. So I think, yes, I think a

373
00:19:54,480 --> 00:19:59,560
Speaker 5: fifty basis point rise is kind of a fair yeah cut. Rather,

374
00:20:01,280 --> 00:20:04,080
Speaker 5: I think that's probably more of a fair assessment of

375
00:20:04,440 --> 00:20:05,000
Speaker 5: the market.

376
00:20:05,640 --> 00:20:08,760
Speaker 3: If we do see some cracks in growth, do you

377
00:20:08,760 --> 00:20:12,119
Speaker 3: think that will manifest pretty heavily in some areas of

378
00:20:12,160 --> 00:20:14,680
Speaker 3: real estate and even commercial real estate.

379
00:20:15,840 --> 00:20:18,199
Speaker 5: Yeah, and I think we've started to see some of

380
00:20:18,240 --> 00:20:21,800
Speaker 5: the cracks take place within commercial real estate. Yesterday we

381
00:20:21,840 --> 00:20:26,240
Speaker 5: had the Blackstone Mortgage Trust. They're huge public reate, it's

382
00:20:26,240 --> 00:20:30,240
Speaker 5: a global public reate, had some significant charge off issues,

383
00:20:30,920 --> 00:20:35,480
Speaker 5: taking specific reserves on specific properties, and announced a dividend cut,

384
00:20:36,240 --> 00:20:39,520
Speaker 5: which the dividend cut was nearly a cut of thirty

385
00:20:39,560 --> 00:20:43,800
Speaker 5: three percent, which led to the read itself falling ten percent.

386
00:20:43,960 --> 00:20:47,520
Speaker 5: So I do see some potential cracks that can take

387
00:20:47,520 --> 00:20:51,000
Speaker 5: place within the commercial real estate market. Now that said,

388
00:20:51,040 --> 00:20:54,360
Speaker 5: there are pockets where there are value. I think every

389
00:20:54,359 --> 00:20:57,280
Speaker 5: time I've come on here, we've talked data centers. They

390
00:20:57,320 --> 00:21:00,880
Speaker 5: continue to post strength, but we start to see AI

391
00:21:02,000 --> 00:21:03,920
Speaker 5: maybe taking a slower track.

392
00:21:04,480 --> 00:21:05,560
Speaker 1: Who knows what can happen there.

393
00:21:05,640 --> 00:21:07,840
Speaker 2: We just heard from President Biden at the top of

394
00:21:07,840 --> 00:21:11,080
Speaker 2: the hour. Obviously the elephant in the room is the election.

395
00:21:11,840 --> 00:21:15,320
Speaker 2: Today former Treasury Secretary Larry Summers was saying Republicans are

396
00:21:15,359 --> 00:21:17,800
Speaker 2: setting the US up for what he termed a Liz

397
00:21:17,880 --> 00:21:22,560
Speaker 2: Trust moment, that basically being that policies of the GOP

398
00:21:22,840 --> 00:21:27,400
Speaker 2: is supporting would widen physical deficits and then weaken the dollar.

399
00:21:27,440 --> 00:21:30,200
Speaker 2: At the same time, I'm curious about what you're hearing

400
00:21:30,480 --> 00:21:33,760
Speaker 2: from clients in regard to the election and where some

401
00:21:33,840 --> 00:21:37,959
Speaker 2: of the divergences in terms of economic policy, tax cuts,

402
00:21:38,840 --> 00:21:42,400
Speaker 2: potential tariffs. I mean, is this of concern to your clients?

403
00:21:43,440 --> 00:21:47,960
Speaker 5: Yeah, I think that, you know, I think that there's

404
00:21:48,000 --> 00:21:52,280
Speaker 5: a portion of the client base that still essentially idolizes

405
00:21:52,320 --> 00:21:57,879
Speaker 5: the Republican viewpoint of you know, lower tax rates and

406
00:21:57,920 --> 00:22:01,439
Speaker 5: that that will bring you know, predomin of growth. But

407
00:22:01,600 --> 00:22:04,679
Speaker 5: there is starting to be a creeping voice within the

408
00:22:04,680 --> 00:22:07,159
Speaker 5: client base that that is a little concerned with what

409
00:22:07,200 --> 00:22:11,280
Speaker 5: can happen come the election November. Now, you know, I

410
00:22:11,320 --> 00:22:15,200
Speaker 5: think that what we've seen take place in the macro

411
00:22:15,359 --> 00:22:19,360
Speaker 5: scene right now is limited. There's less to do with

412
00:22:19,760 --> 00:22:22,240
Speaker 5: you know, who has the keys to the car right now,

413
00:22:22,920 --> 00:22:29,560
Speaker 5: and more of just a natural progression through you know,

414
00:22:29,680 --> 00:22:35,439
Speaker 5: COVID policy and the associated inflationary pressures that came from it.

415
00:22:35,840 --> 00:22:41,960
Speaker 1: So is there concern come November? Sure, but I think.

416
00:22:41,760 --> 00:22:43,560
Speaker 5: That this is more of just the market working its

417
00:22:43,600 --> 00:22:45,200
Speaker 5: way through, working its way through.

418
00:22:45,600 --> 00:22:48,400
Speaker 3: So our show is all about Asia. Let me see

419
00:22:48,400 --> 00:22:51,000
Speaker 3: if I can skillfully find a segue from the politics

420
00:22:51,000 --> 00:22:54,240
Speaker 3: of the election into Asia. Goldb and Sachs said yesterday

421
00:22:54,280 --> 00:22:58,640
Speaker 3: something kind of interesting that China is saving its firepower

422
00:22:59,200 --> 00:23:03,359
Speaker 3: for the economy, waiting for the possibility of President Trump

423
00:23:03,440 --> 00:23:06,880
Speaker 3: winning that it will need that extra muscle. I don't

424
00:23:06,880 --> 00:23:09,000
Speaker 3: know if you've been thinking much about China and what's

425
00:23:09,040 --> 00:23:12,200
Speaker 3: happening there, But what do you make of those comments?

426
00:23:12,600 --> 00:23:15,440
Speaker 5: Yeah, I think that there's been that narrative that that's

427
00:23:15,480 --> 00:23:19,240
Speaker 5: come through about China. I know China's had a convert

428
00:23:19,400 --> 00:23:24,160
Speaker 5: concerted effort to start to take a lot of American

429
00:23:24,240 --> 00:23:30,000
Speaker 5: centric industries and really move them into mainland China and

430
00:23:30,119 --> 00:23:34,119
Speaker 5: almost make a you know, American imports a thing of

431
00:23:34,200 --> 00:23:40,080
Speaker 5: the past. So while I can understand why we would,

432
00:23:40,200 --> 00:23:43,080
Speaker 5: you know, we would expect China to muscle up a

433
00:23:43,080 --> 00:23:48,240
Speaker 5: little bit given the past trade war and some issues there,

434
00:23:50,880 --> 00:23:54,960
Speaker 5: I think that's that's probably a bit far, you know.

435
00:23:55,000 --> 00:23:58,080
Speaker 5: I think any any leaders is going to try to

436
00:23:58,080 --> 00:24:00,800
Speaker 5: bolster's economy as strong as you can at any time,

437
00:24:01,359 --> 00:24:04,640
Speaker 5: not just if you know, an opponent from a nother nation.

438
00:24:04,880 --> 00:24:07,760
Speaker 2: So with some election, sorry Luke at tough sledding today,

439
00:24:07,880 --> 00:24:10,200
Speaker 2: I don't know whether you're expecting more in the near term.

440
00:24:10,240 --> 00:24:12,960
Speaker 2: I'm curious about how much dry powder you're sitting on

441
00:24:13,080 --> 00:24:16,080
Speaker 2: right now, your cash position right now, and whether the

442
00:24:16,200 --> 00:24:18,560
Speaker 2: house call it went from capital is that maybe we

443
00:24:18,640 --> 00:24:21,320
Speaker 2: get a little bit more selling and that there will

444
00:24:21,359 --> 00:24:24,680
Speaker 2: be opportunities to maybe pick up some of the names

445
00:24:24,680 --> 00:24:26,639
Speaker 2: that you like, but now is not the time. Is

446
00:24:26,680 --> 00:24:27,520
Speaker 2: that a fair statement?

447
00:24:28,480 --> 00:24:30,000
Speaker 1: Yeah, I think that's completely fair.

448
00:24:30,520 --> 00:24:35,160
Speaker 5: We continue to sit on probably anywhere from three to

449
00:24:35,240 --> 00:24:39,600
Speaker 5: eight percent of cash in some of our course strategies,

450
00:24:40,000 --> 00:24:42,560
Speaker 5: and that's exactly the point, is just for us to

451
00:24:43,359 --> 00:24:45,800
Speaker 5: keep a little bit of dry powder and just for

452
00:24:45,920 --> 00:24:46,280
Speaker 5: us to.

453
00:24:46,400 --> 00:24:48,720
Speaker 1: Deploy once we see a significant pullback.

454
00:24:48,760 --> 00:24:52,920
Speaker 5: So three percent on Nasdaq A, it's a pretty big pullback,

455
00:24:53,000 --> 00:24:56,240
Speaker 5: but I think we would wait till we see a

456
00:24:56,280 --> 00:24:57,000
Speaker 5: larger pullback.

457
00:24:57,480 --> 00:24:59,960
Speaker 3: Yeah, And it's kind of interesting is happening all at once.

458
00:25:00,600 --> 00:25:03,440
Speaker 3: Maybe that's better than if it was this long, gradual

459
00:25:03,520 --> 00:25:07,359
Speaker 3: slide to the downside. We've got Nvidia on August twenty eighth.

460
00:25:07,400 --> 00:25:08,960
Speaker 3: Do they knock it out of the park? Give you

461
00:25:08,960 --> 00:25:09,920
Speaker 3: twenty seconds.

462
00:25:11,760 --> 00:25:15,200
Speaker 1: I think that I think they'll probably fall in line.

463
00:25:15,760 --> 00:25:19,040
Speaker 5: I think that there's just so many headwinds right now

464
00:25:19,560 --> 00:25:22,920
Speaker 5: from you know, just from a growth trajectory standpoint, there's

465
00:25:23,440 --> 00:25:25,159
Speaker 5: it's going to be hard for them to hit the

466
00:25:25,200 --> 00:25:26,880
Speaker 5: goals that they've currently set.

467
00:25:28,040 --> 00:25:30,520
Speaker 3: All right, Luke, thanks very much for joining us. Appreciate it.

468
00:25:30,600 --> 00:25:33,800
Speaker 3: Luke Stone, portfolio manager at Winthrop Capital Management.

469
00:25:36,119 --> 00:25:39,080
Speaker 2: This has been the Bloomberg Daybreak Asia podcast, bringing you

470
00:25:39,119 --> 00:25:42,240
Speaker 2: the stories making news and moving markets in the Asia Pacific.

471
00:25:42,760 --> 00:25:45,880
Speaker 2: Visit the Bloomberg Podcast channel on YouTube to get more

472
00:25:45,880 --> 00:25:49,520
Speaker 2: episodes of this and other shows from Bloomberg. Subscribe to

473
00:25:49,520 --> 00:25:53,320
Speaker 2: the podcast on Apple, Spotify, or anywhere else you listen

474
00:25:53,400 --> 00:25:56,520
Speaker 2: and always on Bloomberg Radio, the Bloomberg Terminal, and the

475
00:25:56,520 --> 00:25:57,640
Speaker 2: Bloomberg Business app