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Speaker 1: Let's get to Brett McGonagall. He has chairman and CEO

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Speaker 1: at Capital Link. We're looking at market spread joints. Is

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Speaker 1: from here in New York. Boy, I'm telling you what

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Speaker 1: the shivers that the crypto meltdown sent through a lot

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Speaker 1: of risk assets today. How much do you think has

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Speaker 1: to do with the notion of forced liquidation, which is

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Speaker 1: to say, if you need to raise money in some

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Speaker 1: strange way because of a bet that has gone sour,

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Speaker 1: that you sell equities. Is that a part of this

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Speaker 1: narrative in any way, Brett? I mean, I guess it

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Speaker 1: certainly could be, you know, the old adage to sell

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Speaker 1: what you can and not what you must. But UM,

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Speaker 1: thinking about it in a much broader sense, I'm not

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Speaker 1: so sure that it had that big of an impact

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Speaker 1: on the equity markets today, UM as as it relates

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Speaker 1: to UM having to sell assets. But I do think

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Speaker 1: that there's a sentiment, a negative sentiment that that goes

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Speaker 1: along with it, which is that you know, once things

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Speaker 1: start to seem to be back to normal, you know,

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Speaker 1: the elections are behind us, and we're looking to to

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Speaker 1: to the trends that you normally get in in the

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Speaker 1: year following a mid term election, all of a sudden,

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Speaker 1: you have this new negative headline around UM. So I

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Speaker 1: think it may have been more of a sentiment drive

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Speaker 1: than that forced liquidation. Um, what is the future of

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Speaker 1: the crypto sick to now? We had Jim Channels telling

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Speaker 1: Bloinberg earlier there's going to be a judicial outcry his words,

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Speaker 1: regulation is coming or what do you anticipate? Yeah, So,

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Speaker 1: I mean, look, I've I've not been a supporter of

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Speaker 1: the movement. I've been very critical of it, not because

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Speaker 1: I don't want it to succeed, but more because I

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Speaker 1: just don't understand, um, the need for it right now.

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Speaker 1: But let's let's take a broader look at it and

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Speaker 1: say that this is the number to exchange in the world,

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Speaker 1: next to finance, and nobody had any idea of what

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Speaker 1: was under the hood. So, UM, I think that there's

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Speaker 1: call for a huge amount of regulation. And I've always

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Speaker 1: thought that the US regulators, especially that SEC, would have

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Speaker 1: to get involved when it starts to impact the retail

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Speaker 1: investor in the United States. And it seems like it's

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Speaker 1: it's pretty close to home now. So if you look

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Speaker 1: at things like capital requirements a lot more, you know,

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Speaker 1: a top down pressure to get your house in order.

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Speaker 1: Could we see a lot of consolidation in this industry,

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Speaker 1: I mean fewer players, larger size. Yeah, I mean I

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Speaker 1: think that that's the logical next step, but I don't

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Speaker 1: really know what that does where they are today. And

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Speaker 1: the reason I say that is that, I mean, these

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Speaker 1: are the two biggest exchanges in the world, and uh,

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Speaker 1: you know, I don't know how big. I think coin

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Speaker 1: based maybe three, and then you know, onto the next

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Speaker 1: ones after that, but I think the next ones after

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Speaker 1: that all combined don't add up too much. So, um,

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Speaker 1: you know this this this also could have been, you know,

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Speaker 1: a master game of Chicken played by cz which is,

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Speaker 1: once you put the blood in the water, you've you know,

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Speaker 1: the fate is already kind of sealed. And that's the

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Speaker 1: scary part, right. I mean, look, there are rumors that

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Speaker 1: circulate in the equity markets, and they do have they

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Speaker 1: do tend to move stocks, but very seldom that we

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Speaker 1: see stocks bankrupted overnight. And Britta, I just want to

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Speaker 1: get your thoughts on inflation and the fits next move.

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Speaker 1: We do have those inflation numbers coming out in the

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Speaker 1: US tomorrow American time. What do you anticipate and I

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Speaker 1: know that you think maybe we're gonna see some easing

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Speaker 1: next year. Yes, I do so. I think I think

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Speaker 1: the number maybe um in the bull camp tomorrow. I

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Speaker 1: think we probably get below seven point nine. I think

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Speaker 1: anything with the seven handle has some sort of sentimental

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Speaker 1: value to the market. But I think, um, we've probably

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Speaker 1: reached peak inflation at this point. Um. So I think

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Speaker 1: you'll get you know, some sense of maybe some some

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Speaker 1: of the the the the hawkish tone may come down

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Speaker 1: a little bit. Um as we look into um, the

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Speaker 1: the the rate rise, the frenzy of seventy five, or

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Speaker 1: even the you know, the ideas of a hundred that

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Speaker 1: were floating around in the summer. You know, those things

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Speaker 1: start to get walked back. I think we get back

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Speaker 1: to more conventional talk about it. Now. Doesn't the walking

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Speaker 1: back run the risk of reinflating assets if you buy

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Speaker 1: this idea that part of the tightening of fidential conditions

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Speaker 1: includes lower stock prices, Doesn't they the FED really have

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Speaker 1: to thread the needle here in the language? I think

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Speaker 1: they do. H Look, they've we've been looking for them

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Speaker 1: to thread the needle for years. Um that it hasn't

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Speaker 1: been an accomplishment that they could post in my opinion

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Speaker 1: on there on the scoreboard, So I you know, I

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Speaker 1: wouldn't look for something to be uh you know that exact.

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Speaker 1: What I do think though, is that um, you know,

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Speaker 1: they've used both you know, the the the actual mechanism

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Speaker 1: of of of great Raiss and the and the tone

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Speaker 1: of their voice and and speak to be uh you know,

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Speaker 1: a very very hawkish and you know, very loud tone.

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Speaker 1: I don't necessarily think that uh you know, markets you know,

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Speaker 1: re rate overnight on any on any walk back, but

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Speaker 1: I do think it breathes a freath of fresh of

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Speaker 1: breath there and allows people to reassume some sort of

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Speaker 1: advantage point that um you know, gives them a more

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Speaker 1: positive outlook for the next few months. Where are you

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Speaker 1: putting money to work right now? Do you look at

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Speaker 1: US markets? Are you even lying off off shore opportunities? Yeah?

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Speaker 1: So look, I you know, I I don't enjoy being,

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Speaker 1: uh you know, just having a one track mind of

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Speaker 1: you know, buying the US and and buying megacap. But

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Speaker 1: I think at this point in time, if you look

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Speaker 1: around the globe, um, and you look at the prospects,

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Speaker 1: I think that you've got to start where uh, you

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Speaker 1: know where the rubber beats the road with the with

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Speaker 1: monetary policy, and that certainly is the FED right now.

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Speaker 1: I think if you look at some of the mega

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Speaker 1: cap stocks and what's happened to them, you know, they've

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Speaker 1: really been washed stout um, And whether we like it

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Speaker 1: or not, there are a huge impact on the actual

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Speaker 1: indexes that everyone reads on a daily basis, which you

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Speaker 1: know obviously is the driver sentiment. So I think that

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Speaker 1: you'll see the negat caps move first. Um, they'll have

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Speaker 1: it an outsized impact I think on the on the

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Speaker 1: mind of the investor because they'll move. The index is

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Speaker 1: quicker because there's such a large component. So I think

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Speaker 1: that's where the rally starts here. Um. And you know

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Speaker 1: I've I've you know, as all the people Bloomberg. No,

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Speaker 1: I've been a long term China bull. I'm very cautious

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Speaker 1: right now to jump back into that market. I think

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Speaker 1: there's so much there's too much uncertainty right now, So

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Speaker 1: I think you have to keep the trade in the

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Speaker 1: US right now until you see some other pockets outside

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Speaker 1: of it outperforming that I would take a look at those,

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Speaker 1: but I wouldn't. I don't think that that's going to

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Speaker 1: be the first move. I think the US moves first,

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Speaker 1: um and then you get spilled over. But I'm wondering,

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Speaker 1: I mean, if we can agree that there is still

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Speaker 1: gonna be um less liquidity, that the FED is going

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Speaker 1: to continue in that mission and it doesn't that run

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Speaker 1: the risk of of maybe creating further downside and some

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Speaker 1: of these big cap, these mega tech names, uh you know.

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Speaker 1: I I think that convenral wisdom would say, you know,

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Speaker 1: lack of you know, drawing down liquidity and pullet back

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Speaker 1: liquidity would have effect across the board. My gut says

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Speaker 1: that the effect is more in the growth names. I

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Speaker 1: think that's where the cheap cash was flowing and you know,

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Speaker 1: helicopter money or whatever you wanna call it, was chasing

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Speaker 1: those names. I think you know that the no revenue

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Speaker 1: growth story is done for good. UM. So I think

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Speaker 1: that that that's probably the space that gets hurt if

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Speaker 1: people have to choose between growth or mega cap. And

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Speaker 1: I just think the mega caps are household names. They're

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Speaker 1: they're easy there in every end that you know, they're

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Speaker 1: they're very they're very easy to get your hands around

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Speaker 1: and your head around. And I think that is where

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Speaker 1: the reflation goes all right. Brit McGonagall, Chairman and CEO

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Speaker 1: at Capital Link, Thanks so much for joining us on

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Speaker 1: bloom Big Daybreak Asia