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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along

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Speaker 1: with my co host of Bonnie Quinn. Every business day

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Speaker 1: we bring you interviews from CEOs, market pros, and Bloomberg experts,

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Speaker 1: along with essential market moving news. Kind the Bloomberg Markets

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Speaker 1: Podcast on Apple podcast or wherever you listen to podcasts,

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Speaker 1: and on Bloomberg dot com. So it's been an interesting morning.

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Speaker 1: We've been talking a lot about various deals out there,

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Speaker 1: from the Verizon deal to the TikTok deal slash arrangement.

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Speaker 1: For somebody who you know can tell us a lot

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Speaker 1: more about it. Now, let's go to Los Angewitz, London,

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Speaker 1: Howard You, who is lego Professor of Management and Innovation

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Speaker 1: at I m d Business School. So the story is

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Speaker 1: that Oracle edged out Microsoft in negotiating for the US

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Speaker 1: operations of China owned TikTok, which is the subsidiary of

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Speaker 1: by Dance. But Professor You explain to us exactly what

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Speaker 1: kind of a quote unquote deal this is. Well, it

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Speaker 1: remained slightly unclear how that technical partnership is gonna be

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Speaker 1: with Urticle and TikTok. What has been clear right now

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Speaker 1: is Microsoft historically or over the past few days, we're

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Speaker 1: thinking about acquiring tech talk and make it safe for

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Speaker 1: US user, and possibly they need to open the algal

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Speaker 1: or the software code and make it much more transparent

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Speaker 1: going forward. And in the end it's bike Dance. The

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Speaker 1: owner of TikTok said no to Microsoft, and in a

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Speaker 1: way that the technical partnership is probably keeping whatever algal

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Speaker 1: behind will stay intact and trying to appease to government

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Speaker 1: at the same time. So, professor, what was the political

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Speaker 1: overhang of this deal or the political influence of this

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Speaker 1: deal from your perspective, I mean, this is a big

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Speaker 1: major development in the sense that for the first time

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Speaker 1: government are really adding on acting on an ad hot basis.

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Speaker 1: So starting from the Trum administration, all of these executive orders,

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Speaker 1: there is no industry saltation, there is no independent inquiry

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Speaker 1: per se. And then after all the Chinese government at

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Speaker 1: the same time we're basically saying, you know, by Dance,

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Speaker 1: you cannot export any software code in the name of

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Speaker 1: you know, national security. On the ramification is the following

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Speaker 1: that business is find it really really difficult going forward

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Speaker 1: to plan ahead, whether it's long term R and D

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Speaker 1: or product sales and marketing. Given all of these becomes

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Speaker 1: much more of an ad hot basis in your estimation,

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Speaker 1: is Oracle the right kind of company to be doing this?

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Speaker 1: I mean in the ideal world. This is kind of

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Speaker 1: strange because if you think about Oracle is historically it

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Speaker 1: is really a B two B company. They sells database services.

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Speaker 1: It doesn't really have a large B to C market

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Speaker 1: as a result, to know how that they have would

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Speaker 1: be arguably much less than Microsoft, where is running xboxes

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Speaker 1: or this game, And of course the B two C

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Speaker 1: market is huge and sort of the technical ability around

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Speaker 1: AI is also amazing too. However, if you're thinking about

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Speaker 1: tech talk, probably one of the biggest worry is once

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Speaker 1: they've gone through the deal potentially go through, would they

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Speaker 1: completely lose their independence. From that angle than Oracle potentially

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Speaker 1: becomes much more attractive. That's smaller than know How around

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Speaker 1: B two SEA market is much less, and quite frankly,

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Speaker 1: they are not very strong in building our goal. So

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Speaker 1: from that angle, it's not too surprising that techtok would

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Speaker 1: actually prefer a weaker partner in this case Oracle. So

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Speaker 1: do you think this deal this arrangement? I guess it's

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Speaker 1: probably the better way to term it. Do you think

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Speaker 1: this will actually work, Will it go through and we'll

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Speaker 1: actually do what it's supposed to do? You think, I

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Speaker 1: mean over the long run, um is probably simply a

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Speaker 1: cosmetic touch. Um. I mean both administration where it's Beijing

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Speaker 1: and and and the US government is most worry oh,

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Speaker 1: using this as a excuse of threatening national security. So

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Speaker 1: what the business executive right now is trying to come

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Speaker 1: up with a mixed shift solution to a piece on

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Speaker 1: both sides. But I think going forward, what really have

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Speaker 1: highlight is organization can no longer pick side despite the

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Speaker 1: tou politics between China and US. If you're any multinational

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Speaker 1: particular here in Europe, when I'm talking to executives, they

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Speaker 1: really cannot afford to pick side and ignore one market

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Speaker 1: versus the other. Um. So that would cause tremendous termoil

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Speaker 1: in the business community as all eyes are watching how

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Speaker 1: TikTok is trying to find for itself. Yeah, it's really interesting.

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Speaker 1: Can you put a value on the USA sets of TikTok, professor? Right?

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Speaker 1: I mean right now they're talking about fifty billion dollar right.

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Speaker 1: It really comes down to depending on how the US

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Speaker 1: acquirer can really leverage both of the user base on

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Speaker 1: what is remaining as you can back engineers and our goal.

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Speaker 1: So you know, at first I thought Walmart and Microsoft

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Speaker 1: bid is interesting because it potentially TikTok can be a

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Speaker 1: very interesting e commerce platform to rejuvenate Walmart e commerce.

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Speaker 1: So that's a direct symergy that you could put the

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Speaker 1: tag price on and fifty billion dollars kind of okay.

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Speaker 1: Now for you know Oracle, then I'm not too certain

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Speaker 1: what kind of price they would eventually agree a point

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Speaker 1: because again without the software algorithm being sold potentially, and

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Speaker 1: if Oracles simply a technical partner for distribution itself, then

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Speaker 1: the payback becomes much less tenuous in a way. But

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Speaker 1: maybe they are motivated by other factors as well. Maybe

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Speaker 1: they want to tell a new story to Wall Street,

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Speaker 1: or who knows, maybe there's political motivation in stepping in

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Speaker 1: and making sure that it goes through UM. But from

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Speaker 1: a commercial aspect, fifty billion dollar without some directs in

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Speaker 1: g on e commerce for instance, will sound a little crazy.

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Speaker 1: So Professor, just thirty seconds left, get your thoughts on

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Speaker 1: what some people are talking about is a technology cold

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Speaker 1: war between China and I mean, the Internet is totally

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Speaker 1: fractured these days. I think what business executive around the

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Speaker 1: world we have to understand right now, we're stepping into

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Speaker 1: a bipolar world. Right. You have the U S system,

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Speaker 1: the China system, the European zone as well, and in

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Speaker 1: terms of GDP size, all three are important, and yet

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Speaker 1: they conform very different norm very different regulation. So the

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Speaker 1: idea you can be one product and spread around the

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Speaker 1: world and conquer the world is totally over going forward.

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Speaker 1: Decentralization's priority. Conforming to local regulation is second, and the

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Speaker 1: third is the customer insight would be very different as

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Speaker 1: the Internet world continued to fracture. So I think this

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Speaker 1: is one of the key dynamics that executive must prepared

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Speaker 1: themselves going forward. How are you? Thank you so much

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Speaker 1: for joining us. How would you as the LEGO Professor

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Speaker 1: of Management and Innovation I am the business school based

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Speaker 1: in Switzerland. And Vonnie, it just seems that there is

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Speaker 1: a growing kind of cold war when it comes to

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Speaker 1: technology out there. Well, I imagine it's the type of

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Speaker 1: thing that we'll see the they'll drawn back upon within

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Speaker 1: the next few months. I mean, we already know the

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Speaker 1: Steve Milution is going to come to some kind of

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Speaker 1: a decision this week on this particular affair of the

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Speaker 1: Oragle TikTok affair. And you know, we just don't know

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Speaker 1: enough details yet. Yeah, exactly right. Not sure the structure here.

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Speaker 1: This is Bloomberg Markets with Paul Sweeney and Bonny Quinn

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Speaker 1: on Bloomberg Radio. Merger Monday is back. And it's not

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Speaker 1: just TikTok. We also have another big tech deal chip

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Speaker 1: giant in video forty billion dollar deal for SoftBank's ARM unit.

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Speaker 1: That's a UK based business. Let's get some color on

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Speaker 1: that huge deal. We can do that with On and

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Speaker 1: Triny Vaston, senior semiconductor and hardware analysts for Bloomberg Intelligence,

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Speaker 1: so on, And first of all, give us to your

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Speaker 1: foot view of this deal for video. Yeah, hey, Paul,

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Speaker 1: good morning money. This is a fantastic deal for video. Right,

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Speaker 1: So you're expanding your ecosystem from being a graphics provider

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Speaker 1: for um PC, video gamers and m AI engines if

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Speaker 1: you made for the data center, and you're expanding it

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Speaker 1: to an ecosystem that powers all of um the world's smartphones,

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Speaker 1: all of the world's tablets, all of the world's network devices.

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Speaker 1: So dramatic expansion of the ecosystem. Um difference between in

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Speaker 1: video and ARM is that in video predominantly monetizes directly

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Speaker 1: through chips it makes UM, and AR monetizes predominantly through

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Speaker 1: intellectual basic building blocks that it makes UM, which are

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Speaker 1: used by multiple chip makers, some of whom are in

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Speaker 1: video competitors, and and so it creates a little bit

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Speaker 1: of a sticky wicket from a regulatory perspective. But financially

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Speaker 1: it's great for in video and greatful ARM as well

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Speaker 1: because they get a R and D boost UM as

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Speaker 1: a result of the deal. What does it mean for

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Speaker 1: soft Bank? Was this telegraphed in anyway? Yeah? For soft Bank,

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Speaker 1: I would imagine that this raises cash, although the cash

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Speaker 1: component of it is much smaller than we had initially

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Speaker 1: estimated UM. So it helps them sort of going private

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Speaker 1: ambitions are amplified a little bit UM when the deal closes.

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Speaker 1: They'll get more in video stock, they'll get more cash,

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Speaker 1: they can buy back more of their own stock, etcetera.

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Speaker 1: And it further is their ambitions. They've held in video

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Speaker 1: stock before, so it's not like the Vidio asset is

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Speaker 1: an unknown quantity for softmak alright on it. So your

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Speaker 1: technical analysis of the regulatory is a sticky wicked. I

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Speaker 1: bet if I spoke to January, who does it for

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Speaker 1: a living antitrust animals for Bloomberg Intelligence, would she tell

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Speaker 1: me they have a very steep antitrust curve to climb. Yeah,

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Speaker 1: I mean you can see that by the fact that

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Speaker 1: you need regulatory clearance US, UK, Europe and China, and

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Speaker 1: even without the um so the US China friction that

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Speaker 1: is currently ongoing, this would dramatically expand the market. You

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Speaker 1: have a sort of a neutral player being acquired by

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Speaker 1: a customer slash competitor. How will they keep the entity separate?

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Speaker 1: Um They would obviously have to promise their process in

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Speaker 1: writing that in video will not interfere with ARMS licensing model.

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Speaker 1: But the fact that ARMS intellectual property will be first

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Speaker 1: known to Invidio, the roadmaps will be first um uh,

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Speaker 1: Invidia will have first access to it. That sort of

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Speaker 1: creates an advantage for Nvidia that potentially none of its

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Speaker 1: others peers, customers, competitors, etcetera. Have. So Jen is probably

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Speaker 1: going to tell you the same thing that it is

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Speaker 1: a sticky wicket. Yeah, I mean, ARMS customers are Apple

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Speaker 1: and Intel. You know, they're the hugest customers in the world.

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Speaker 1: ARM will become a US firm if this all goes through,

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Speaker 1: how would that impact our relationship with China, given the

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Speaker 1: China still controls ARMED China. Yeah, so that's a very

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Speaker 1: good question, Monnie. And it was asked on the on

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Speaker 1: the recent merger call that Nvidia and ARM had. The

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Speaker 1: claim is that the intellectual property origination is still based

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Speaker 1: out of Cambridge and are in Video intends to keep

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Speaker 1: that asset as is and the intellectual property tomasow as is.

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Speaker 1: So technically it's even though ARM becomes owned by an

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Speaker 1: American company, the intellectual property origination is out of the UK.

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Speaker 1: So technically, according to them anyway, it doesn't come under

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Speaker 1: the purvey of the regulators in a more stringent manner.

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Speaker 1: I mean, that's going to be a hard, um hard

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Speaker 1: piece of thing to convince the US regulators that some

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Speaker 1: how they should not be involved in in that piece

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Speaker 1: of the pipe because in Video is now the owner

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Speaker 1: of that asset. So I think that adds to the

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Speaker 1: complexity of this. And then we haven't talked about it,

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Speaker 1: but China um Is has used M and a um

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Speaker 1: sort of extended out the M and a um um

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Speaker 1: a deal regulation for for extend periods of time they

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Speaker 1: scuttle the Quacom n XP deal, if you remember, so

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Speaker 1: they could use this as a as an example showcase

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Speaker 1: to show, Okay, this is how you mess with me,

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Speaker 1: this is how I repay you. UM. So that could

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Speaker 1: be one part of it. The second part of it

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Speaker 1: is also a lot of arms They could squeeze out

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Speaker 1: arm licensing deals UM in the in China as a

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Speaker 1: result of this, make sure that they have access to

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Speaker 1: ARM I P because they're trying to build up their

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Speaker 1: semiconductor industry. So a lot of complexity is involved. I think, UM,

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Speaker 1: the eighteen months is definitely needed, UM and the regulatory

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Speaker 1: part is definitely the stickiest wicket here on a Triny Boston,

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Speaker 1: thank you so much. We appreciate that. A big, big

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Speaker 1: deal in the space here. The question is when we

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Speaker 1: see some more deals of ANNIE. But very interesting on

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Speaker 1: a Triny Boston, senior tech analysts for Bloomberg Intelligence giving

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Speaker 1: us the breakdown on this NVIDEO deal for armed forty

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Speaker 1: billion dollars short of face some repertory uh roadblocks I

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Speaker 1: think on many countries ANNIE, that's for sure. But I'll

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Speaker 1: tell you something. Investors are obviously very hopeful about this

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Speaker 1: because in Video's talk is of seven percent, which is

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Speaker 1: quite the move upwards, and it's holding onto those gains

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Speaker 1: where we saw Oracle, for example, earlier on make huge

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Speaker 1: gains and not hold onto them. Meantime, Jeffries has boosted

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Speaker 1: the price targets to six d and eighty dollars from

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Speaker 1: five hundred and seventy. And don't forget, we're at five

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Speaker 1: twenty now, so that's a full one sixty dollars higher

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Speaker 1: than we are now for Nvideo. Based on this extraordinary

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Speaker 1: deal flow coming out of the market today, well as

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Speaker 1: we saw the number of deals announced today this morning

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Speaker 1: over the weekend. Technology remains at the forefront of investors

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Speaker 1: perspective that includes such new and exploding technologies as blockchain.

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Speaker 1: Get more color on that. We are welcome. We welcome

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Speaker 1: Doug Barthwick, chief marketing officer and head of business development

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Speaker 1: for a company I n X based in New York City. Doug,

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Speaker 1: thanks so much for joining us here. Let's start off

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Speaker 1: with just you telling us, give us a good sense

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Speaker 1: of what I n X is, what you guys are doing. Sure, so,

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Speaker 1: I n X is a company that we set up

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Speaker 1: a couple of years ago and it's got two different areas.

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Speaker 1: One is for a platform for the trading of cryptocurrency

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Speaker 1: and the other one is a platform for the trading

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Speaker 1: of security tokens. Now you may not be familiar with

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Speaker 1: security tokens, but if you think about something like Nike

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Speaker 1: stock trading twenty four hours a day in a digital environment,

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Speaker 1: that's what a security token is. And it's our belief

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Speaker 1: that in the near future all equities will end up

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Speaker 1: going on the blockchain and going digital because of the efficiency.

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Speaker 1: So you can find with that. And so we created

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Speaker 1: an exchange for trading of digital securities and at the

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Speaker 1: same time created a digital security that for the first

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Speaker 1: time as an F one registered with the SEC And

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Speaker 1: I encourage your listeners to go look at it because

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Speaker 1: I'm going to talk about some things and that F

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Speaker 1: one is the first one that's ever been done. It's

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Speaker 1: on the blockchain. But also this is the first I

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Speaker 1: p O and the U S history that accepts at

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Speaker 1: the I p O Bitcoin, Ether and U s dc

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Speaker 1: or or are stable coins, so first time you can

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Speaker 1: accept cryptocurrencies, and the I p O is currently ongoing.

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Speaker 1: So Doug explained to us how this is different from competition.

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Speaker 1: I believe the wink of as Twins did something like

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Speaker 1: this before. Am I right? I could be wrong? Well,

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Speaker 1: you are correct, and the wink of as Twins have

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Speaker 1: one exchange and Gemini. I think that's the one you're discussing,

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Speaker 1: and certainly you know you can trade current cryptocurrencies on that,

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Speaker 1: but in terms of security tokens, that's not something that

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Speaker 1: they offer right now. And security tokens come under a

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Speaker 1: very different regulator than does let's say, cryptocurrency cryptocurrencies come

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Speaker 1: under States MT licenses or money transmitter licenses, whereas security

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Speaker 1: tokens come under the SEC. And so you know, it's

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Speaker 1: a very big step for essentially it's not debt, it's

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Speaker 1: not equity, it's a security token or a digital assets

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Speaker 1: and that's what we've one come up with, and then

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Speaker 1: two we're creating the exchange to trade it. So do

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Speaker 1: you have exchanges up and running now trading securities or

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Speaker 1: trading assets right now? We do not know. And so this,

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Speaker 1: this this raise that we're doing right now is to

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Speaker 1: get them on board in terms of getting to market.

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Speaker 1: Now we've built them, they're ready to go, but we

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Speaker 1: need to raise capital in order to go out and

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Speaker 1: get some of the licenses that we're looking for. So

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Speaker 1: today we could trade with the US, but we're not

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Speaker 1: turning it on yet until we've finished with the I

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Speaker 1: p O. Dog. Who are the typical investors in an

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Speaker 1: IPO like this, Well, the typical investors are are twofold one.

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Speaker 1: You've got the folks that are already understand the crypto environment.

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Speaker 1: So that's you know, the folks that are holding bitcoin

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Speaker 1: theoryum that that go on and on about it, and

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Speaker 1: that's probably about point two percent of the population. Now

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Speaker 1: they see what we do as being putting handcuffs on

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Speaker 1: securities because our security for the first time has k

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Speaker 1: y C and a m L built into it do

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Speaker 1: what's called a smart contract. That means you can't tell

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Speaker 1: take an I n X token and sell it to

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Speaker 1: someone else unless they've already gone through KYC. So this

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Speaker 1: is like, you know, a huge, big change now for

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Speaker 1: securities markets. So that's of the population they're very interested

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Speaker 1: in because this is a giant leap forward for securities markets.

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Speaker 1: Not only you know, can you do an I P O,

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Speaker 1: but you can also do it you can accept different

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Speaker 1: crypts of currencies, but you can also do it whereby

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Speaker 1: you could list in many many countries at once with

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Speaker 1: the security token just through a couple of lines of code,

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Speaker 1: as opposed to tens of millions of dollars of legal fees.

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Speaker 1: And so you know, we're really making a big change.

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Speaker 1: But also think about this. You know Nike trading twenty

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Speaker 1: four hours a day, that would be fantastic. And millennials today,

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Speaker 1: of their top five holdings, one of them is g

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Speaker 1: BTC or Gray Scale Bitcoin Trust and that means that

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Speaker 1: you know that the millennial generation has a great interest

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Speaker 1: in digital and yet they don't understand why their dads

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Speaker 1: or their moms look at news at four o'clock on

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Speaker 1: a Friday, a bad news on an equity and they say,

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Speaker 1: don't worry, we'll get out of it at nine thirty

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Speaker 1: in the morning on the Monday. That just doesn't make

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Speaker 1: any sense to them. And this is the Amazon generation

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Speaker 1: that wants to be able to do things right now,

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Speaker 1: and so we've created a product for folks to trade

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Speaker 1: equities immediately, twenty four hours a day. What's the regulatory framework?

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Speaker 1: What's the SEC saying? For example, Well, the SEC is

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Speaker 1: who have we've been talking to for two and a

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Speaker 1: half years. We've spent over nine hundred and fifty days

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Speaker 1: creating the F one that can be found on the

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Speaker 1: Edgar database, and then then then there it's shows transparency

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Speaker 1: into a field that traditionally no one's ever had transparency.

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Speaker 1: I think when you think about crypto and you think

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Speaker 1: about exchanges, you know they're all privately owned, most of

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Speaker 1: them are held off shore. There certainly isn't transparency. What

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Speaker 1: we're trying to do is raise money through a community

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Speaker 1: and build a community. When someone comes in and buys

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Speaker 1: the token, we see that as being a potential user

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Speaker 1: of our platform as well. So I mean I think

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Speaker 1: that's a good run up. Yeah, it's so interesting. I mean,

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Speaker 1: if you know nothing about the blockchain and you know

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Speaker 1: nothing about cryptocurrencies, would you still advise somebody like that

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Speaker 1: to put, you know, give this a go. Well, I

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Speaker 1: wouldn't advise anyone to give it a go. I think

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Speaker 1: that they should look at the F one that the

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Speaker 1: ad your database. But if you do believe that everything,

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Speaker 1: whether it's equities, whether it's fixed income, whether it's commodities,

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Speaker 1: are going to move onto the blockchain, and we already

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Speaker 1: know that China's and talks to do that with their

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Speaker 1: currency that europs and talks to do that that the

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Speaker 1: US is discussing a digital dollar. So if currencies are

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Speaker 1: going to move on the blockchain, and given that regulators

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Speaker 1: of love K y C and they like to know

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Speaker 1: who owns what where, and they like to be able

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Speaker 1: to make sure that bad actors don't own things, then

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Speaker 1: I think you can be pretty sure that equities are

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Speaker 1: going to move onto the blockchain as well. And we're

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Speaker 1: the first. Well dog, thank you for coming on and

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Speaker 1: giving us the the explanation about all of this, and

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Speaker 1: I do hope you come back and explain to us

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Speaker 1: more what's going on as we progress. It seems like

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Speaker 1: the blockchain and come to currencies have been around a while,

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Speaker 1: but I'm certainly no more educated than I was before.

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Speaker 1: I have to re educate myself every couple of years

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Speaker 1: on all of this because the change is so fast

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Speaker 1: and it does seem to be a bit of a

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Speaker 1: land crab as well. So really interesting to follow Dug

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Speaker 1: Boarth with because chief marketing officer and head of business

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Speaker 1: development at i n X well a good start to

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Speaker 1: the week from the equity market's perspective, lead in large

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Speaker 1: part by sixty nine billion dollars worth of M and

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Speaker 1: A announced bringing Merger Monday back to the markets, back

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Speaker 1: to the four to get a sense of kind of

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Speaker 1: how we think about all this M and A in

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Speaker 1: the context of where we are with the markets. We

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Speaker 1: welcome Peter Kenny, father of Kenny's Commentary and Strategic Board Solutions. Uh, Peter,

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Speaker 1: thanks so much for joining us here. Well, Merger Monday

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Speaker 1: is back with a vengeance that pushes the pandemic at

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Speaker 1: least a little bit off the front page, at least

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Speaker 1: for a moment here. What do you make of this

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Speaker 1: spade of deals that we're seeing today? What does it

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Speaker 1: mean for the market from your perspective? Well, thanks for

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Speaker 1: having me um. First of all, the timing couldn't be

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Speaker 1: better because if you look at the Nastack, SMP and

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Speaker 1: the Dow all closed last week at or close to

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Speaker 1: their fifty day moving averages, which which means basically there

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Speaker 1: was effectively a retest of that low that was established

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Speaker 1: on Monday of last week. So this is really really

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Speaker 1: up Tuesday of West week. This is really welcome news.

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Speaker 1: It's great. I love the fact that it's big names

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Speaker 1: like Oracles, saft Bank, the vaccine stories and really really important,

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Speaker 1: and that's lifting the market. It really is coming at

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Speaker 1: a great time because in the note that I wrote

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Speaker 1: and put out the street this morning, um my concern

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Speaker 1: was that with all the indexities industries really resting on

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Speaker 1: a fifty day and without any news out there that

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Speaker 1: I could you know, shake a stick at, it seems

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Speaker 1: to me or it seemed to me as though there

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Speaker 1: was going to be continued weakness and potentially a drop

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Speaker 1: all of the fifty day for all three Well, does

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Speaker 1: the Oracle news signals that the China standoff might get

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Speaker 1: sort of eased if you like, because it's it's a

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Speaker 1: major deal. This was one of the ways that the

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Speaker 1: Trump administration was going after China in a very practical manner. Yes, absolutely, Bonny,

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Speaker 1: this was actually a very significant deal on several fronts.

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Speaker 1: First of all, you know, of course, there's a political

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Speaker 1: basis for a lot of what's going on here, and

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Speaker 1: there's a nationalist security concern. But this is a way

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Speaker 1: out that I don't think anybody was really looking at,

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Speaker 1: and frankly, I don't think anybody was really talking about Oracle,

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Speaker 1: So um, it is a way forward that saves space

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Speaker 1: and allows for a constructive exit from where we currently stand,

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Speaker 1: which was very, very I think it was tense. Frankly,

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Speaker 1: it was tense, so Peter. Typically, when a CEO and

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Speaker 1: a board decided to go forth with a large acquisition,

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Speaker 1: it signals their confidence in not only their business model

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Speaker 1: and the acquired business model, but also the economy, geopolitics,

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Speaker 1: all those things are confident to put that kind of

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Speaker 1: capital to work. I'm not sure I see that confidence

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Speaker 1: out there is I look at some of the economic

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Speaker 1: indicators and the still uncertain nature of the path of

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Speaker 1: this pandemic. Oh I, I could not agree with you

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Speaker 1: more wholeheartedly, Paul. I mean, well, you have an awful

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Speaker 1: lot on our plate here. This was a one off,

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Speaker 1: this deal with Oracle and TikTok, this is a one off.

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Speaker 1: This is not speaking to a broader picture other than

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Speaker 1: what Vonnie really intimated. That is that this is a

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Speaker 1: graceful exit out of something that could have been a

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Speaker 1: significantly larger conflict. So the deal is important and it's welcome,

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Speaker 1: but it's a one off. The broader landscape in terms

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Speaker 1: of trade, global growth, domestic our, domestic economy, there's an

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Speaker 1: awful lot on the table that is that's going to

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Speaker 1: be an act as a headwind from here on to

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Speaker 1: the end of the year, and of course throwing presidential politics,

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Speaker 1: I mean, the biggest variable of all time. Right, what

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Speaker 1: are you telling your clients about the election, Peter um,

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00:24:02,680 --> 00:24:08,640
Speaker 1: head your bets, Um, just manage risk. Polls are very

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00:24:08,720 --> 00:24:13,880
Speaker 1: very close. Um. I think that it's regardless of who

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00:24:14,000 --> 00:24:17,600
Speaker 1: is elected, the aftermaths of the election is going to

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00:24:17,720 --> 00:24:22,200
Speaker 1: test the nerves of the average American because I think

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00:24:22,240 --> 00:24:28,840
Speaker 1: it's going to be an awfully um difficult um social

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00:24:29,440 --> 00:24:31,840
Speaker 1: economic scene on the streets. I mean, if if what

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00:24:31,880 --> 00:24:34,320
Speaker 1: we've been living through over the last month as any indication,

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00:24:35,200 --> 00:24:36,960
Speaker 1: I'm afraid it's not going to get a whole lot

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00:24:37,280 --> 00:24:40,560
Speaker 1: better even with the resolution of the presidential elections. How

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00:24:40,560 --> 00:24:44,080
Speaker 1: would you suggest hedging that kind of uncertainty, which is

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00:24:44,280 --> 00:24:47,040
Speaker 1: we haven't really seen that much in our past history.

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00:24:47,840 --> 00:24:50,760
Speaker 1: So if you're in high growth names, if you're in

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00:24:51,040 --> 00:24:54,000
Speaker 1: names that have really driven this rally and your today

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00:24:54,080 --> 00:24:57,840
Speaker 1: performance by the NANATAK which is far outstripped the SMP

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00:24:57,920 --> 00:25:01,000
Speaker 1: and the Dad Johns industrial level act on those names

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00:25:02,160 --> 00:25:06,360
Speaker 1: looking to be in names that have not really provided

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00:25:06,440 --> 00:25:11,800
Speaker 1: much of the growth story impetus, but have provided consistent dividends. Um,

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00:25:11,840 --> 00:25:14,719
Speaker 1: you know, batting down the hatches, reduce your risk exposure.

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00:25:14,960 --> 00:25:18,879
Speaker 1: There's nothing wrong with metals, there's nothing wrong with alternatives,

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00:25:18,920 --> 00:25:23,600
Speaker 1: but keep your eye on those aspects of your portfolio

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00:25:23,760 --> 00:25:29,080
Speaker 1: that tend to drift drift in parabolic waves. Um. They're

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00:25:29,119 --> 00:25:31,680
Speaker 1: great for traders, but they're not great for the everyday

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00:25:31,720 --> 00:25:35,920
Speaker 1: investor on nine Street. So just batting down the hatches. Yeah,

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00:25:35,960 --> 00:25:38,600
Speaker 1: it's amazing, you know, batten down the hatches. And at

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00:25:38,600 --> 00:25:42,240
Speaker 1: the same time, there's not much you can do, you know,

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00:25:42,600 --> 00:25:45,720
Speaker 1: hedge wise, right, Peter, I mean that's right, it's all.

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00:25:45,800 --> 00:25:50,159
Speaker 1: It's all in equities right now. You the whole story

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00:25:50,240 --> 00:25:52,840
Speaker 1: right now for investors exequities. If you look at bonds,

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00:25:53,040 --> 00:25:55,960
Speaker 1: there's no yield. If you look at the global macro story,

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00:25:56,240 --> 00:25:58,760
Speaker 1: there's very little. I mean you're getting negative yields and

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00:25:58,960 --> 00:26:02,119
Speaker 1: much of Europe. Um, there's really no place to go.

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00:26:02,320 --> 00:26:07,520
Speaker 1: Any argument for just holding onto some cash, Peter, holding

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00:26:07,480 --> 00:26:09,960
Speaker 1: on the cash, hold on their precious metals. Have a

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00:26:10,000 --> 00:26:13,679
Speaker 1: defensive posture and your portfolio, look for dividends, and just

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00:26:13,840 --> 00:26:15,960
Speaker 1: make sure that the exposures that you do have going

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00:26:16,000 --> 00:26:19,000
Speaker 1: into the president this whole election is covered either through

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00:26:19,040 --> 00:26:23,160
Speaker 1: options or by just simply reducing your exposure. Yeah, Peter,

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00:26:23,359 --> 00:26:25,920
Speaker 1: thank you. Always eliminating to speak with you. Peter Kenny

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00:26:26,000 --> 00:26:29,560
Speaker 1: is founder of Strategic Board Solutions and of course also

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00:26:29,760 --> 00:26:34,159
Speaker 1: brings out some excellent commentary daily and weekly on the

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00:26:34,200 --> 00:26:37,280
Speaker 1: Wall Street Beat if you like. And he's been a

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00:26:37,280 --> 00:26:38,600
Speaker 1: member of the New York Stock has changed for the

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00:26:38,640 --> 00:26:42,639
Speaker 1: last twenty years and lots more than that. So, Paul,

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00:26:42,680 --> 00:26:45,040
Speaker 1: if we weren't expecting to come into a tape that

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00:26:45,160 --> 00:26:47,359
Speaker 1: was nicely in the green, but here we have at

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00:26:47,359 --> 00:26:49,760
Speaker 1: the Sea up one and three wards of percent, the

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00:26:49,840 --> 00:26:54,359
Speaker 1: Nastack up two point three percent this Monday morning. Thanks

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00:26:54,400 --> 00:26:57,520
Speaker 1: for listening to the Boomberg Markets podcast. You can subscribe

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00:26:57,560 --> 00:27:00,520
Speaker 1: and listen to interviews at Apple Podcasts or or whatever

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00:27:00,520 --> 00:27:03,639
Speaker 1: a podcast platform you prefer. I'm Bonnie Quinn. I'm on

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00:27:03,680 --> 00:27:06,240
Speaker 1: Twitter at Bonnie Quinn, and I'm Paul Sweeney. I'm on

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00:27:06,240 --> 00:27:09,199
Speaker 1: Twitter at pt Sweeney. Before the podcast, you can always

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00:27:09,200 --> 00:27:11,080
Speaker 1: catch us worldwide at Bloomberg Radio.