Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Single best idea, really interesting today, great equity market coverage GM.
Speaker 2: Martin Adams was really quite sophisticated about the linkage between
Speaker 2: technical analysis, fundamental and even economics. David Rosenberg joined us
Speaker 2: from Canada. Thank you to his comments on King Charles speech.
Speaker 2: He said the Canadian public really wasn't grabbed by the speech.
Speaker 2: It was much more about the elites and the politicians
Speaker 2: and all that. Katie Kaminski on trend Out at ELF
Speaker 2: Simplex in Boston was really quite good, saying there is
Speaker 2: beginning to be elements of a trend in the equity market.
Speaker 2: We spoke on foreign Exchange with Jordan Rochester of Missouo
Speaker 2: and what's so great about the shop is they have
Speaker 2: dominic constant Steve Shudo and Jordan Rochester. I asked Jordan Rochester,
Speaker 2: how do you piece those three minds together.
Speaker 3: What we think is there's gonna be no Fed cuts
Speaker 3: this year. Steve's got one and a half percent GDP forecast,
Speaker 3: but are three and a half percent inflation, So your
Speaker 3: noomenal's at five and the Fed's going to be looking
Speaker 3: at three and a half inflation. That's not an environment
Speaker 3: where you're cutting rates, you need to have really big
Speaker 3: weakness in the labor market to do so. However, what
Speaker 3: Constant would point out, and what I point out too,
Speaker 3: is that this market is very much inclined to say
Speaker 3: that there's a very high bar to get to get
Speaker 3: this market to think hikes are the next move by
Speaker 3: the Fed. The market will continue to think that cuts
Speaker 3: the next move, but we are of the view it
Speaker 3: won't happen this year. So what that means for trades
Speaker 3: is we like front end flatteners, So price out the
Speaker 3: rate cuts for this year, pricing more cuts for next year,
Speaker 3: because that's how this market is biased. So we have
Speaker 3: a steep We're gonna have a flattening of the curve.
Speaker 3: More cuts, price for twenty twenty six, less for twenty five.
Speaker 2: Jordan Rochester with Missoui there in the summer is as
Speaker 2: he says, no FED rate cuts this year boring. We'll
Speaker 2: off to see on that. But also then he is
Speaker 2: euro out to one twenty stronger euro, not immediately, but
Speaker 2: a stronger euro through two thousand and twenty five. Nancy
Speaker 2: Lazarre was with us with Piper Sandler. She's definitive in
Speaker 2: the business, and she was absolutely blistering about capital spending.
Speaker 1: Here, Nancy Lazzar, First, what's given is nominal GDP. That's
Speaker 1: what's created by both monetary and physical policy. And nominal
Speaker 1: GDP growth has been about five percent next year? Could
Speaker 1: it move up to something a little bit more than that. Yes,
Speaker 1: I've got to make some new stop.
Speaker 2: Are you saying six percent nominal GDP?
Speaker 1: Well, that's historically what the peak growth rate had been
Speaker 1: prior to the GFC. That's not out of the question
Speaker 1: going forward, as you could in place tax reform, as
Speaker 1: you put in place full appreciation on capex, manufacturing structures
Speaker 1: and also manufacturing equipment. Capital spending is just underappreciated as
Speaker 1: the drive of growth. Without businesses and reinvesting in a country,
Speaker 1: you end up with stagnation, which is what happened to
Speaker 1: us after China joined WTO.
Speaker 2: I can't say how unusual that conversation is. If the
Speaker 2: core equation is our nation's output, our GDP, howeve you
Speaker 2: measure it is consumption seventy percent, investment eleven maybe thirteen percent.
Speaker 2: Then you got government spending and all the uproar over
Speaker 2: the debt and the deficit, and you bolt on the
Speaker 2: back end, export, imports and all. How little within financial
Speaker 2: media we speak about the eye investment and that's where
Speaker 2: Nancy Lazar is completely focused. Is the idea, you can't
Speaker 2: create jobs in any nation unless you have capital investment,
Speaker 2: capital spending. Just brilliant Nancy Lazar with Piper Sandler across
Speaker 2: the nation on your commute. Don't forget serious XM Channel
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Speaker 2: best idea MHM.