1 00:00:02,520 --> 00:00:15,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, single best idea on 2 00:00:15,800 --> 00:00:18,280 Speaker 1: a really interesting day. I thought it would be much 3 00:00:18,320 --> 00:00:21,200 Speaker 1: more FED driven. Thank you Sarah House at Wells Fargo 4 00:00:21,680 --> 00:00:24,279 Speaker 1: for a good FED briefing. Michael McKee from Washington. He 5 00:00:24,320 --> 00:00:27,600 Speaker 1: will be in the press conference all and most importantly 6 00:00:27,640 --> 00:00:32,520 Speaker 1: Michael McKee suggesting we are far from a snooze fest 7 00:00:32,520 --> 00:00:35,200 Speaker 1: and this will be truly one of the most interesting 8 00:00:35,320 --> 00:00:41,960 Speaker 1: FED meetings, statements and press conferences in years. Alicia Levine 9 00:00:42,159 --> 00:00:46,160 Speaker 1: with US with BNY continued optimism on the market. She's 10 00:00:46,200 --> 00:00:49,320 Speaker 1: been absolutely dead on about you got to be in 11 00:00:49,400 --> 00:00:52,080 Speaker 1: the market, you got to play to be in the market. 12 00:00:52,360 --> 00:00:55,120 Speaker 1: She looked at the valuation of the MAG five, the 13 00:00:55,160 --> 00:00:56,200 Speaker 1: MAG six, the. 14 00:00:56,160 --> 00:00:59,240 Speaker 2: MAG seven on a relative basis, the tech stocks are 15 00:00:59,320 --> 00:01:02,560 Speaker 2: cheaper than they were twenty five years ago. On a 16 00:01:02,680 --> 00:01:06,039 Speaker 2: cash flow basis, they are just batting it out of 17 00:01:06,040 --> 00:01:09,120 Speaker 2: the park on free cash flow margins. And on the 18 00:01:09,160 --> 00:01:10,080 Speaker 2: operator you can. 19 00:01:10,040 --> 00:01:11,920 Speaker 1: Say, like Aaron Judge, you won't insult it. 20 00:01:13,000 --> 00:01:15,720 Speaker 2: So, I mean, these are different companies, but you know, 21 00:01:15,959 --> 00:01:18,120 Speaker 2: keep the main point, the main point, which is that 22 00:01:18,160 --> 00:01:22,800 Speaker 2: the FED is cutting into an increased earnings cycle. Okay, 23 00:01:23,040 --> 00:01:25,560 Speaker 2: S and B earnings estimates are moving higher. The FED 24 00:01:25,640 --> 00:01:28,759 Speaker 2: is cutting into it. Banks that are all at are 25 00:01:28,800 --> 00:01:31,920 Speaker 2: at all time highs, hence the melt up. But I 26 00:01:31,920 --> 00:01:35,360 Speaker 2: think global managers are under allocated because the flee America 27 00:01:35,520 --> 00:01:39,160 Speaker 2: conversation was everywhere. I actually wrote a piece about how 28 00:01:39,240 --> 00:01:42,000 Speaker 2: ridiculous to the flee America trade is because where you 29 00:01:42,080 --> 00:01:44,160 Speaker 2: where else are you're going for innovation and global and 30 00:01:44,240 --> 00:01:46,639 Speaker 2: growth and margins and earnings power. 31 00:01:47,240 --> 00:01:49,520 Speaker 1: Alicia Levine with bn Y and I really have to 32 00:01:49,560 --> 00:01:52,960 Speaker 1: say that one of the interesting correlations before the FED 33 00:01:53,040 --> 00:01:57,920 Speaker 1: meeting today was dollar dynamics. This morning, for example, the 34 00:01:58,040 --> 00:02:02,600 Speaker 1: euro at a one eighteen level, is that the strongest 35 00:02:02,640 --> 00:02:07,360 Speaker 1: euro since September of twenty twenty one. That's really an 36 00:02:07,400 --> 00:02:11,800 Speaker 1: important benchmark. That's one I wouldn't normally watch euro dollar 37 00:02:11,960 --> 00:02:14,600 Speaker 1: off of a FED meeting, but over the next coming 38 00:02:14,680 --> 00:02:17,679 Speaker 1: days that will be fascinating to watch. Certainly we could 39 00:02:17,680 --> 00:02:21,800 Speaker 1: say on a Tuesday, the dollar gives way. He is 40 00:02:21,800 --> 00:02:25,280 Speaker 1: at no Murrah. David Sieff is really really quite good 41 00:02:25,760 --> 00:02:28,720 Speaker 1: with all of his work, his academics at MIT and 42 00:02:28,760 --> 00:02:32,680 Speaker 1: at Harvard. At Harvard a few years behind it was 43 00:02:33,000 --> 00:02:36,880 Speaker 1: a Mirran doctor Mirron and David Sief of course with 44 00:02:37,120 --> 00:02:42,640 Speaker 1: real graduate level experience with a new Fed governor. Here's 45 00:02:42,720 --> 00:02:44,239 Speaker 1: David Sief this morning. 46 00:02:44,720 --> 00:02:46,840 Speaker 3: We clearly have more of a debt problem than we 47 00:02:46,880 --> 00:02:50,919 Speaker 3: did twenty years ago when Steve and I met, I 48 00:02:50,960 --> 00:02:55,600 Speaker 3: would point out that that this this has emerged from 49 00:02:55,639 --> 00:02:59,840 Speaker 3: president to president, from party to party, and so clear 50 00:03:00,240 --> 00:03:03,520 Speaker 3: deficit reduction has become more of a priority over time. 51 00:03:04,400 --> 00:03:09,679 Speaker 3: The OBBBA didn't really cut the deficit compared to what 52 00:03:10,280 --> 00:03:12,480 Speaker 3: it could have potentially done. But at the same time, 53 00:03:13,000 --> 00:03:15,600 Speaker 3: the tariffs, love them or hate them, look like they're 54 00:03:15,639 --> 00:03:17,640 Speaker 3: going to collect on the order of four hundred billion 55 00:03:17,680 --> 00:03:18,200 Speaker 3: dollars per. 56 00:03:18,240 --> 00:03:19,560 Speaker 1: Year addicted to that, aren't we. 57 00:03:19,919 --> 00:03:24,560 Speaker 3: That's that's really the great word to use. The tariffs 58 00:03:24,560 --> 00:03:27,000 Speaker 3: are something where it would take a generation to get 59 00:03:27,080 --> 00:03:29,320 Speaker 3: rid of them, because where are we going to get 60 00:03:29,320 --> 00:03:30,680 Speaker 3: the money to replace them? 61 00:03:30,800 --> 00:03:36,480 Speaker 1: Unbelievable comment so soon after the advent of the Trump terrorists. 62 00:03:36,520 --> 00:03:40,800 Speaker 1: David sef is with no more on our podcast Nationwind Special. 63 00:03:40,840 --> 00:03:43,520 Speaker 1: Good morning, the Philippines. Wonderful to have Isabelle Lee with 64 00:03:43,640 --> 00:03:48,400 Speaker 1: us with their leadership and Bloomberg Equities this morning on 65 00:03:48,480 --> 00:03:53,040 Speaker 1: Apple podcasts, on Spotify and on YouTube podcasts. It's single 66 00:03:53,120 --> 00:03:53,960 Speaker 1: best idea 67 00:04:01,600 --> 00:04:02,440 Speaker 2: Remain with them.