WEBVTT - Single Best Idea with Tom Keene: Alicia Levine & David Seif

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, single best idea on

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<v Speaker 1>a really interesting day. I thought it would be much

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<v Speaker 1>more FED driven. Thank you Sarah House at Wells Fargo

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<v Speaker 1>for a good FED briefing. Michael McKee from Washington. He

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<v Speaker 1>will be in the press conference all and most importantly

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<v Speaker 1>Michael McKee suggesting we are far from a snooze fest

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<v Speaker 1>and this will be truly one of the most interesting

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<v Speaker 1>FED meetings, statements and press conferences in years. Alicia Levine

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<v Speaker 1>with US with BNY continued optimism on the market. She's

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<v Speaker 1>been absolutely dead on about you got to be in

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<v Speaker 1>the market, you got to play to be in the market.

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<v Speaker 1>She looked at the valuation of the MAG five, the

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<v Speaker 1>MAG six, the.

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<v Speaker 2>MAG seven on a relative basis, the tech stocks are

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<v Speaker 2>cheaper than they were twenty five years ago. On a

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<v Speaker 2>cash flow basis, they are just batting it out of

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<v Speaker 2>the park on free cash flow margins. And on the

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<v Speaker 2>operator you can.

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<v Speaker 1>Say, like Aaron Judge, you won't insult it.

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<v Speaker 2>So, I mean, these are different companies, but you know,

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<v Speaker 2>keep the main point, the main point, which is that

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<v Speaker 2>the FED is cutting into an increased earnings cycle. Okay,

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<v Speaker 2>S and B earnings estimates are moving higher. The FED

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<v Speaker 2>is cutting into it. Banks that are all at are

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<v Speaker 2>at all time highs, hence the melt up. But I

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<v Speaker 2>think global managers are under allocated because the flee America

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<v Speaker 2>conversation was everywhere. I actually wrote a piece about how

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<v Speaker 2>ridiculous to the flee America trade is because where you

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<v Speaker 2>where else are you're going for innovation and global and

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<v Speaker 2>growth and margins and earnings power.

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<v Speaker 1>Alicia Levine with bn Y and I really have to

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<v Speaker 1>say that one of the interesting correlations before the FED

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<v Speaker 1>meeting today was dollar dynamics. This morning, for example, the

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<v Speaker 1>euro at a one eighteen level, is that the strongest

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<v Speaker 1>euro since September of twenty twenty one. That's really an

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<v Speaker 1>important benchmark. That's one I wouldn't normally watch euro dollar

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<v Speaker 1>off of a FED meeting, but over the next coming

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<v Speaker 1>days that will be fascinating to watch. Certainly we could

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<v Speaker 1>say on a Tuesday, the dollar gives way. He is

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<v Speaker 1>at no Murrah. David Sieff is really really quite good

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<v Speaker 1>with all of his work, his academics at MIT and

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<v Speaker 1>at Harvard. At Harvard a few years behind it was

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<v Speaker 1>a Mirran doctor Mirron and David Sief of course with

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<v Speaker 1>real graduate level experience with a new Fed governor. Here's

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<v Speaker 1>David Sief this morning.

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<v Speaker 3>We clearly have more of a debt problem than we

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<v Speaker 3>did twenty years ago when Steve and I met, I

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<v Speaker 3>would point out that that this this has emerged from

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<v Speaker 3>president to president, from party to party, and so clear

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<v Speaker 3>deficit reduction has become more of a priority over time.

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<v Speaker 3>The OBBBA didn't really cut the deficit compared to what

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<v Speaker 3>it could have potentially done. But at the same time,

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<v Speaker 3>the tariffs, love them or hate them, look like they're

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<v Speaker 3>going to collect on the order of four hundred billion

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<v Speaker 3>dollars per.

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<v Speaker 1>Year addicted to that, aren't we.

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<v Speaker 3>That's that's really the great word to use. The tariffs

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<v Speaker 3>are something where it would take a generation to get

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<v Speaker 3>rid of them, because where are we going to get

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<v Speaker 3>the money to replace them?

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<v Speaker 1>Unbelievable comment so soon after the advent of the Trump terrorists.

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<v Speaker 1>David sef is with no more on our podcast Nationwind Special.

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<v Speaker 1>Good morning, the Philippines. Wonderful to have Isabelle Lee with

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<v Speaker 1>us with their leadership and Bloomberg Equities this morning on

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<v Speaker 1>Apple podcasts, on Spotify and on YouTube podcasts. It's single

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<v Speaker 1>best idea

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<v Speaker 2>Remain with them.