WEBVTT - Markets Wrap: Gilts, Gold and AI’s Price Tag

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News. Welcome to the Merrin

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<v Speaker 1>Drugs Money Market Wrap. What we talk about the biggest

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<v Speaker 1>moves in the market this week and what is driving them.

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<v Speaker 1>I'm Merrin sum Zip Web UK Money editor at Large

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<v Speaker 1>and whilst John is still out of the office on

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<v Speaker 1>a beach somewhere, I am joined by Sam and Stead.

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<v Speaker 1>Sam is editor of Bloomberg's Markets Today blog. I'm worried

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<v Speaker 1>about UK stocks, economics, central banks and global markets. Busy time. Sam,

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<v Speaker 1>thanks for joining me, Thanks for having me. If you

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<v Speaker 1>ordered the things to talk about them.

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<v Speaker 2>Yes, indeed, yes, yeah, I mean you take your pick.

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<v Speaker 1>I'll tell you what. Why don't we start with UK gilts?

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<v Speaker 1>Why don't we start with what's going on there? There's

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<v Speaker 1>a lot of political change. We are in chaos again.

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<v Speaker 1>We talked about this some link in our podcast earlier

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<v Speaker 1>in the week, but it is still ongoing. It's going

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<v Speaker 1>to be ongoing for weeks and weeks and weeks. I'm

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<v Speaker 1>going to say we have no idea what's going to happen.

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<v Speaker 1>We have a pretty good idea of what's going to happen,

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<v Speaker 1>and suddenly, from an investors point of view, you might

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<v Speaker 1>say well, nothing good.

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<v Speaker 2>That's exactly how I would frame it, that we are

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<v Speaker 2>in yet another period of political chaos, turmoil, pick whatever

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<v Speaker 2>word you like for it in the UK. But guilts

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<v Speaker 2>are actually having a pretty good week. Ten year yields

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<v Speaker 2>down when I got up from my desk about sixteen

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<v Speaker 2>seventeen basis points over the course of the week. That

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<v Speaker 2>is almost entirely driven by oil, you know, Oild prices

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<v Speaker 2>have been coming down very significantly. Takes away some of

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<v Speaker 2>the inflationary risk. Bets on what the Bank of England

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<v Speaker 2>are going to do and how much they're going to

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<v Speaker 2>hike over the year have been pulled back as well.

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<v Speaker 2>But I find it a little bit curious because so

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<v Speaker 2>if we go back a couple of months so to

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<v Speaker 2>around the local elections and when they were these first

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<v Speaker 2>kind of really substantial speculation about kit Starmer's position. We

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<v Speaker 2>had a lot of strategists then come out and say

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<v Speaker 2>very clearly the most negative outcome for gilt markets would

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<v Speaker 2>be Andy Burnham becoming the prime minister. Right, so that

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<v Speaker 2>was very much baked into what to everyone's thinking. Now

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<v Speaker 2>we've reached that reality. So Kis Starmer has resigned on Monday,

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<v Speaker 2>We've effectively, as you kind of alluded to, moved on

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<v Speaker 2>to the idea that Andy Burnham will be the next premise.

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<v Speaker 2>That's what a lot of MPs keep coming out and saying,

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<v Speaker 2>there is a chance somebody challenges him. I think it's

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<v Speaker 2>will be so much fun fun, Isn't it a good

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<v Speaker 2>way to put it? Yeah, but it would be that

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<v Speaker 2>could well happen, but I think it looks increasingly unlikely, disappointing.

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<v Speaker 2>So you would expect, oh, I would expect, as someone

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<v Speaker 2>who's covered the Gill market for a while, that there

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<v Speaker 2>would be a bit more risk stign to come in,

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<v Speaker 2>at least a bit of uncertainty because at the moment

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<v Speaker 2>you really don't have any great idea at all about

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<v Speaker 2>what he would do, and because we have actually got

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<v Speaker 2>a pretty clear idea of who's going to be in

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<v Speaker 2>charge next, that question should be at the front of

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<v Speaker 2>minds and it is. People are asking that question, but

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<v Speaker 2>they're not asking you very forcefully. It's kind of just

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<v Speaker 2>they're just kind of waiting now to just see what happens,

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<v Speaker 2>which is not how the gil market has acted for

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<v Speaker 2>the last kind of two years or so.

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<v Speaker 1>Interesting, wasn't it, Where it is something of a holding pattern.

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<v Speaker 1>I mean, there has been backtracking on the whole we

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<v Speaker 1>shouldn't be inho to the bond's market nonsense. He has

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<v Speaker 1>someone's explained how the bond market works to him, which

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<v Speaker 1>is great because it means we'll have a prime minister.

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<v Speaker 1>It's a tiny little idea of how it all works.

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<v Speaker 1>It's good news. And he does say that he will

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<v Speaker 1>stick to the fiscal rules, and again we talked about

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<v Speaker 1>that in the podcast earlier this week, and that he

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<v Speaker 1>isn't going to stick to the fiscal rules because that's

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<v Speaker 1>not really possible. Rates or reason was never going to stick

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<v Speaker 1>to the fiscal rules because they all depended on you know,

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<v Speaker 1>spending being really crunched towards the end of this decade,

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<v Speaker 1>which was never going to happen, and it's still never

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<v Speaker 1>going to happen. So we can talk about the physical rules,

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<v Speaker 1>but they'll be new fiscal rules at some point. Having

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<v Speaker 1>the fiscal rules are a statistical nonsense anyway. But nonetheless

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<v Speaker 1>he's talking the correct game.

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<v Speaker 2>He's talking the correct game. Where the uncertainty I think

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<v Speaker 2>I would expect a little bit more insight to be

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<v Speaker 2>coming in is because they are talking already about flexibility

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<v Speaker 2>in those fiscal rules, and I didn't really know what

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<v Speaker 2>that means. That's going to well, we'll see what it

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<v Speaker 2>actually looks like when we when we eventually get there,

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<v Speaker 2>that uncertainty doesn't seem to be a price, you know.

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<v Speaker 2>But then there is actually a sort of counter argument

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<v Speaker 2>to that, which is that you know, already the UK

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<v Speaker 2>pays much higher premium to borrow money anyway, so there

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<v Speaker 2>may well be a feeling that that's already priced in

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<v Speaker 2>extent now, you know. So as far as we're aware,

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<v Speaker 2>this is all already in there, and as you're kind

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<v Speaker 2>of mentioning there, the fact is, once he actually gets there,

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<v Speaker 2>a lot of these kind of initial questions, or these

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<v Speaker 2>initial policies, or these maybe slightly more popular policies that

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<v Speaker 2>are coming out now, he probably won't be able to

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<v Speaker 2>do because everyone is constrained by the same fiscal rules.

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<v Speaker 2>And as you kind of mentioned, it's all well and

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<v Speaker 2>good to kind of not want to be in hot

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<v Speaker 2>to bond markets. If you're not in hock to bond market.

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<v Speaker 1>We are in hoe market exactly. The only way out

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<v Speaker 1>of that is to dramatically slash spending and slash borrowing,

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<v Speaker 1>and then you wouldn't be in hop of the bond

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<v Speaker 1>market exactly, and it's not going to happen.

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<v Speaker 2>So I think so far, you know, he's surrounded himself,

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<v Speaker 2>particularly on the economic side, with a lot of kind

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<v Speaker 2>of big you know, one key figures if you like,

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<v Speaker 2>you know, these kind of like big names within within economics.

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<v Speaker 2>I think where there's still a lot of question. We

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<v Speaker 2>had a nice piece on Bloomberger about this over this

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<v Speaker 2>week foreign Policy know anything there, and I was just

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<v Speaker 2>mentioning the moving guilt. Marcus has been almost entirely down

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<v Speaker 2>to geopolitics over the course of the last week, so

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<v Speaker 2>that also needs to be kind of fleshed out as well.

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<v Speaker 1>Well, let's come back to geopolitics, but actually let's just

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<v Speaker 1>come back to oil. I mean, price is now basically

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<v Speaker 1>down to where it was before the war started. There's

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<v Speaker 1>assumption and none of this really happened. None of this

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<v Speaker 1>really happened. Here we are back square one. So that's

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<v Speaker 1>good in that that inflationary impulse of higher all prices

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<v Speaker 1>is going to come through in the numbers. But we

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<v Speaker 1>could now genuinely we could say that was transitory, and

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<v Speaker 1>for the first time in quite a long time that

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<v Speaker 1>would be true. It genuinely would be transit reinflation. But

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<v Speaker 1>there are other things feeding in which we need to

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<v Speaker 1>talk about. And there is this thing that had happened

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<v Speaker 1>just a few hours ago of Apple saying they're putting

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<v Speaker 1>up their prices fairly substantially because the chip price is

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<v Speaker 1>going up. And we've been talking for a while on

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<v Speaker 1>the podcast about how when people talk about AI, they

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<v Speaker 1>talk about, you know, cost down, and they talk about productivity,

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<v Speaker 1>but in fact, of course the hard ware it's very,

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<v Speaker 1>very expensive, and that is a new inflation room impulse.

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<v Speaker 2>Yeah, I mean, I mean, there are a couple of

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<v Speaker 2>inflationary impulses to think about with AI. So, as you mentioned,

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<v Speaker 2>with memory chip prices, so you had a really neat

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<v Speaker 2>thing happened today where we had Micron Technology, which is

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<v Speaker 2>the biggest memory chip maker in the world, with incredibly

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<v Speaker 2>good results, I mean, way way ahead of expectations, your

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<v Speaker 2>huge demand, revenue, profit, everything that could be.

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<v Speaker 1>I can't get there's one numb and there I can't

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<v Speaker 1>get out of my head with an eighty six percent margin.

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<v Speaker 2>Yeah, it's astonishingly high. Right, So that's on. That's one

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<v Speaker 2>side of the AI story. And so all the chip

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<v Speaker 2>makers and the memory companies are all going up with

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<v Speaker 2>them today and by a lot. And micro remember is

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<v Speaker 2>a big company. I mean, they're already worth nearly two

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<v Speaker 2>trillion dollars, so there's a huge move. But on the

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<v Speaker 2>complete other side of that, you get this other question

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<v Speaker 2>about the sort of the reason that they're making this

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<v Speaker 2>huge margin, which is the memory prices have gone through

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<v Speaker 2>the roof because everything is being directed to AI, so

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<v Speaker 2>the consumer stuff, so everything that's you know, and this

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<v Speaker 2>is we're talking memory chips that go into basically anything

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<v Speaker 2>electronic that exists in the world, from phones, you know

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<v Speaker 2>with Apple, with you know, iPads and mac works. You're

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<v Speaker 2>talking from there to you know, fridges, cars, like basically

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<v Speaker 2>anything anyone buys has any electronics in it will have

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<v Speaker 2>a memory chip in it. So you're getting an inflationary

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<v Speaker 2>impost coming from that because as Apple and Apple being

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<v Speaker 2>kind of the biggest electronics company in the world, they're

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<v Speaker 2>pushing through prices. So if they're a if they're not

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<v Speaker 2>able to sustain those margins and they're having to do it,

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<v Speaker 2>that's not a good sign for everywhere else. And then

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<v Speaker 2>the other side of it is, you know, there's another

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<v Speaker 2>side who gets a triangle is that is the is

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<v Speaker 2>data centers, you know, so spending huge amounts of money

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<v Speaker 2>on data centers, this huge AI capex boom that's going on,

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<v Speaker 2>but that requires lots of electricity, and people are going

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<v Speaker 2>to have to pay for that somewhere down the line, exactly,

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<v Speaker 2>And so eventually that is going to feed into people's

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<v Speaker 2>electricity prices. And so that may that may not be

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<v Speaker 2>because it does take quite a long time to build

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<v Speaker 2>a data center, but even so that will start to

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<v Speaker 2>happen as well, and the cost of building up the grid.

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<v Speaker 2>So you've got all sorts of extra inflationary impulses coming

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<v Speaker 2>from from it.

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<v Speaker 1>It's difficult to tell whether you know, the end effective

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<v Speaker 1>areas should be deflationary, as with all wonderful new technologies,

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<v Speaker 1>but the creation of it did very inflationary. We can't

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<v Speaker 1>quite see where we're going to end up.

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<v Speaker 2>Yeah, that's exactly right, you know. And so as you're mentioning,

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<v Speaker 2>so oil prices have come all the way down when

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<v Speaker 2>you look in the options market for Oilso what people

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<v Speaker 2>are betting on what's going to happen in this sort

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<v Speaker 2>of six months time, it's gone very bearish, Like everyone

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<v Speaker 2>thinks of you know, maybe sort of flat over the

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<v Speaker 2>course of the next sent I.

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<v Speaker 1>Thing I was wondering about on that this is a

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<v Speaker 1>random thought and we should probably els go on to

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<v Speaker 1>oil expect tell us about that you're expending everythings. I'm

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<v Speaker 1>going to ask you. One of the reasons why the

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<v Speaker 1>oild person never went up to one hundred and fifty

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<v Speaker 1>dollars two hundred dollars, like some of the more excitable

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<v Speaker 1>people were suggesting at the beginning of the war, was

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<v Speaker 1>because of the drawdown from everyone's reserves, right, yeah, reserves,

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<v Speaker 1>and in particular from Chinese reserves. Massive drawdowns there because

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<v Speaker 1>you know, we never saw any any demand destruction in China,

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<v Speaker 1>so we know that huge amount of oil being useduff

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<v Speaker 1>they have to be refilled. Yes, so that's a huge

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<v Speaker 1>source of demand over the next couple of years. Yeah, yeah,

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<v Speaker 1>So surely that would suggest that oil prices aren't going

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<v Speaker 1>to fall below the use levels and may actually rise

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<v Speaker 1>from here.

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<v Speaker 2>Yeah, there's certainly a risk that, I mean, I would

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<v Speaker 2>suggest it's more likely that they will stay kind of

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<v Speaker 2>where they are now, so not you know, may marginally

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<v Speaker 2>elevated from where they were before the war, but with

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<v Speaker 2>a lot of a lot of volatility and a lot

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<v Speaker 2>of wobbliness over the course of the rest of the

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<v Speaker 2>year for exactly the reason you're mentioning. So part of

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<v Speaker 2>it will require and this is this is why there's

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<v Speaker 2>such a huge focus on this all the time. That

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<v Speaker 2>the oil starts flowing through the straightforwar mirrors really sustainably

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<v Speaker 2>for an extended period of time now with no breaks

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<v Speaker 2>in it, with no issues, that's a big ask, like so,

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<v Speaker 2>so that has to happen, and during that happening, then

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<v Speaker 2>the reserves can start to be full. So you need

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<v Speaker 2>these two things to kind of happen in concert with

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<v Speaker 2>each other. But while they're happening in concert with each other,

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<v Speaker 2>the likely old presses don't go much further down from

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<v Speaker 2>where they are now, and those inflationary kind of impulses

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<v Speaker 2>that have happened with all going up for a few

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<v Speaker 2>months will still be flowing through during that during that time.

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<v Speaker 1>The last thing I want to ask you about is

0:10:24.240 --> 0:10:27.600
<v Speaker 1>again all connected to your politics, connected to inflation, connected

0:10:27.840 --> 0:10:31.360
<v Speaker 1>for everything, and it's the gold price. Because this is disappointing,

0:10:31.440 --> 0:10:33.719
<v Speaker 1>isn't it for gold bugs, This is disappointing.

0:10:33.920 --> 0:10:36.280
<v Speaker 2>Yeah, yeah, yeah, I mean I would say you know,

0:10:36.840 --> 0:10:38.839
<v Speaker 2>just calm everyone. You know, it's still only just a

0:10:38.880 --> 0:10:41.280
<v Speaker 2>little bit below four thousand dollars nouns, but that was

0:10:41.280 --> 0:10:42.320
<v Speaker 2>a really key level.

0:10:42.360 --> 0:10:44.960
<v Speaker 1>Below four thousand dollars. I mean, remember the excitement when

0:10:45.040 --> 0:10:47.680
<v Speaker 1>over five thousand, John and I could barely contain ourselves.

0:10:47.800 --> 0:10:50.240
<v Speaker 2>Yeah, and we are back. And actually, you know, as

0:10:50.240 --> 0:10:52.320
<v Speaker 2>we go as it comes back through that level again,

0:10:52.600 --> 0:10:55.080
<v Speaker 2>you know, that's the level that it went through as

0:10:55.320 --> 0:10:58.720
<v Speaker 2>gold stopped acting like gold, you know, it started to

0:10:58.720 --> 0:11:01.680
<v Speaker 2>become a kind of momentum trade. So the likelihood is

0:11:01.720 --> 0:11:03.719
<v Speaker 2>you will have had a lot of investors, probably a

0:11:03.720 --> 0:11:06.280
<v Speaker 2>lot of retail traders as well, coming in there as

0:11:06.320 --> 0:11:08.360
<v Speaker 2>it was going above four thousand dollars. So it may

0:11:08.400 --> 0:11:10.560
<v Speaker 2>well be that people are sitting on some some hefty

0:11:10.600 --> 0:11:11.680
<v Speaker 2>losses from gold as well.

0:11:12.120 --> 0:11:13.640
<v Speaker 1>Okay, I thought you were going to say that clever

0:11:13.679 --> 0:11:15.760
<v Speaker 1>retail trades had ridden it all the way up and

0:11:15.920 --> 0:11:17.280
<v Speaker 1>sold it all the way down, and.

0:11:17.200 --> 0:11:19.480
<v Speaker 2>If they hold on then it may well, you know,

0:11:19.679 --> 0:11:20.319
<v Speaker 2>and they've.

0:11:20.040 --> 0:11:22.960
<v Speaker 1>Taken money out to pop into the SpaceX holdings, for example,

0:11:23.120 --> 0:11:23.840
<v Speaker 1>down again today.

0:11:23.880 --> 0:11:26.640
<v Speaker 2>Right, Well, that's that's possible as well. SpaceX. Well, when

0:11:26.640 --> 0:11:28.800
<v Speaker 2>I got up from my desk every almost everything was

0:11:28.840 --> 0:11:30.360
<v Speaker 2>going up for a bit and then it was going

0:11:30.400 --> 0:11:32.480
<v Speaker 2>back down for a bit. And so whether what it's

0:11:32.520 --> 0:11:34.800
<v Speaker 2>doing right at this moment, I can't tell you, but

0:11:35.160 --> 0:11:38.240
<v Speaker 2>you know, yes, so gold, you know, we've had just

0:11:38.280 --> 0:11:41.480
<v Speaker 2>a long period of time when gold hasn't has not

0:11:41.520 --> 0:11:43.640
<v Speaker 2>been acting in the way that gold tradition acts, right,

0:11:44.200 --> 0:11:47.200
<v Speaker 2>and even now as doing what it's doing now, it's

0:11:47.200 --> 0:11:49.839
<v Speaker 2>still not quite doing that. It's not quite the gold,

0:11:49.920 --> 0:11:53.120
<v Speaker 2>you know. And I think there's still a lot of

0:11:53.160 --> 0:11:55.360
<v Speaker 2>air in that market, so it will have that might well,

0:11:55.400 --> 0:11:57.480
<v Speaker 2>you may well see a bit more volatility come through,

0:11:57.679 --> 0:11:59.839
<v Speaker 2>but you know, historically it does remain, you know, you

0:12:00.120 --> 0:12:00.800
<v Speaker 2>pretty elevated.

0:12:00.880 --> 0:12:03.120
<v Speaker 1>Yeah, and I suppose if we've mentioned gold, we're going

0:12:03.160 --> 0:12:05.040
<v Speaker 1>to have to mention Bitcoin, which is now below sixt

0:12:05.040 --> 0:12:09.640
<v Speaker 1>two thousand and again, so we're back to September twenty four. Yes, yes,

0:12:09.960 --> 0:12:11.000
<v Speaker 1>that's quite a big ship.

0:12:11.080 --> 0:12:14.360
<v Speaker 2>Yes, yes, and actually that one so you're just asking

0:12:14.400 --> 0:12:16.760
<v Speaker 2>about SpaceX. That was something we actually really did see

0:12:16.800 --> 0:12:20.640
<v Speaker 2>evidence of, was retail traders getting rid of their Bitcoin

0:12:20.679 --> 0:12:24.120
<v Speaker 2>holdings in order to buy SpaceX. And that was happening

0:12:24.160 --> 0:12:26.280
<v Speaker 2>actually across all sorts of spaces. It was happening with

0:12:26.640 --> 0:12:29.000
<v Speaker 2>some of the high flying kind of chip stocks as well.

0:12:29.640 --> 0:12:32.200
<v Speaker 1>It cost to holding bitcoin forever. I thought that was

0:12:32.440 --> 0:12:35.240
<v Speaker 1>It's not. It wasn't. We've learned as not a currency,

0:12:35.600 --> 0:12:38.280
<v Speaker 1>and the new gig is that it's a long term assage.

0:12:38.320 --> 0:12:40.959
<v Speaker 1>You hold it forever. There's neither of those things.

0:12:41.040 --> 0:12:43.679
<v Speaker 2>That's a great point actually, so so yeah, so last

0:12:43.760 --> 0:12:45.680
<v Speaker 2>year we had this debasement trade, right, This was like

0:12:45.760 --> 0:12:47.760
<v Speaker 2>a for a few months. This was the idea that

0:12:47.920 --> 0:12:50.600
<v Speaker 2>the dollar is no longer king and that people are

0:12:50.600 --> 0:12:55.320
<v Speaker 2>putting their money into gold or bitcoin, and that seems

0:12:55.360 --> 0:12:57.840
<v Speaker 2>to have fritted away over the course of this past year.

0:12:58.000 --> 0:13:00.199
<v Speaker 2>I think a lot of the enthusiasm, you know, cooin

0:13:00.240 --> 0:13:03.840
<v Speaker 2>does rely to an extent on enthusiasm on investors just

0:13:03.880 --> 0:13:07.160
<v Speaker 2>being enthused about getting into gold, pumping their money into

0:13:07.200 --> 0:13:09.319
<v Speaker 2>the ets they've now been launched, you know, these kind

0:13:09.320 --> 0:13:13.160
<v Speaker 2>of institutional funds, all of those companies too. You know,

0:13:13.320 --> 0:13:16.160
<v Speaker 2>when you have this much equity supply, like SpaceX, when

0:13:16.160 --> 0:13:18.760
<v Speaker 2>you have this much excitement about a different corner of

0:13:18.800 --> 0:13:22.559
<v Speaker 2>the marketcoin yes, sorry, yes, about bitcoin, yes, they're so.

0:13:23.320 --> 0:13:27.640
<v Speaker 2>When you have this much excitement about AI or about

0:13:28.679 --> 0:13:32.360
<v Speaker 2>you know, SpaceX particularly and Big I pos coming later

0:13:32.360 --> 0:13:35.480
<v Speaker 2>in the year for open AI or anthropic. When all

0:13:35.559 --> 0:13:38.160
<v Speaker 2>of that is going on, it seems like the sort

0:13:38.160 --> 0:13:40.400
<v Speaker 2>of traders that are in bitcoin are the ones who

0:13:40.440 --> 0:13:42.160
<v Speaker 2>are then thinking, actually, I'm going to move a little

0:13:42.160 --> 0:13:42.880
<v Speaker 2>bit away from here.

0:13:43.920 --> 0:13:45.959
<v Speaker 1>As all about stories, isn't it. I mean, bitcoin is

0:13:46.040 --> 0:13:47.520
<v Speaker 1>very story driven, and one of the things that we've

0:13:47.559 --> 0:13:49.760
<v Speaker 1>seen since since you first heard about bitcoin is the

0:13:49.800 --> 0:13:52.079
<v Speaker 1>constant renewal of the story. It's not there, we were,

0:13:52.080 --> 0:13:53.559
<v Speaker 1>it's not quite that is this? No, no, it is

0:13:53.600 --> 0:13:55.840
<v Speaker 1>this now, it's this, now, it's this, and when there

0:13:55.840 --> 0:13:57.319
<v Speaker 1>isn't a good story and right now there isn't a

0:13:57.360 --> 0:14:00.400
<v Speaker 1>good news story for bitcoin, but they're amazing stories results.

0:14:00.400 --> 0:14:03.559
<v Speaker 1>Where So if you're a story led investor, yeah, you're

0:14:03.559 --> 0:14:03.920
<v Speaker 1>heading to.

0:14:04.040 --> 0:14:06.280
<v Speaker 2>The narrative is not good enough to bring you in.

0:14:06.360 --> 0:14:09.200
<v Speaker 1>Yeah. Now, of course I'm a SpaceX investor, as all

0:14:09.240 --> 0:14:12.320
<v Speaker 1>listeners to my podcast, no, I have nine SpaceX shares,

0:14:12.679 --> 0:14:14.959
<v Speaker 1>and I had promised the team that I would use

0:14:14.960 --> 0:14:16.640
<v Speaker 1>my winnings to take them out for a drink. So

0:14:16.760 --> 0:14:21.520
<v Speaker 1>you know, sorry, guys, well sorry, not winnings. Not winnings,

0:14:21.560 --> 0:14:23.400
<v Speaker 1>and that's not how we call it. We are capital

0:14:23.440 --> 0:14:25.640
<v Speaker 1>gains capital again We're not gambling.

0:14:25.280 --> 0:14:27.000
<v Speaker 2>Yet, but you know, we will see what happens that

0:14:27.040 --> 0:14:29.520
<v Speaker 2>because I mean it's just very briefly on SpaceX. I mean,

0:14:29.800 --> 0:14:32.320
<v Speaker 2>I mean, I've been a reporter on stocks for fifteen years.

0:14:32.440 --> 0:14:36.040
<v Speaker 2>I've never seen an IPO like that ever. And since then,

0:14:36.080 --> 0:14:38.680
<v Speaker 2>they've then they did an acquisition just two days later

0:14:38.680 --> 0:14:41.960
<v Speaker 2>with sixty billion dollars. They are borrowing a huge amount

0:14:42.000 --> 0:14:44.560
<v Speaker 2>of money in credit markets. They are sort of getting

0:14:44.560 --> 0:14:46.640
<v Speaker 2>into all sorts of corners of the market, and so

0:14:46.720 --> 0:14:50.640
<v Speaker 2>they're becoming already quite a kind of important company in

0:14:50.800 --> 0:14:52.520
<v Speaker 2>all sorts of different sexes of the market. It will

0:14:52.560 --> 0:14:53.680
<v Speaker 2>be really interesting to see.

0:14:53.480 --> 0:14:55.840
<v Speaker 1>How that is interesting. And you know, there is nothing

0:14:55.920 --> 0:14:58.560
<v Speaker 1>average about SpaceX at all in there, I'm so interesting

0:14:58.640 --> 0:15:02.320
<v Speaker 1>in so many many ways. But the average tech ipo

0:15:03.600 --> 0:15:06.640
<v Speaker 1>end its first year down about eighteen percent. And my

0:15:06.760 --> 0:15:09.320
<v Speaker 1>concern is that maybe the one place in which SpaceX

0:15:09.360 --> 0:15:10.520
<v Speaker 1>sends out to be average.

0:15:10.760 --> 0:15:14.040
<v Speaker 2>It's possible, It's possible, you know, but I think, you know,

0:15:14.040 --> 0:15:15.800
<v Speaker 2>when we're talking about bitcoin there and then this kind

0:15:15.800 --> 0:15:18.720
<v Speaker 2>of enthusiasm the AI story, there is obviously a huge

0:15:18.760 --> 0:15:20.720
<v Speaker 2>amount of enthusiasm for the AI story. No U and

0:15:20.800 --> 0:15:24.680
<v Speaker 2>SpaceX goes into that as well. But SpaceX is almost

0:15:24.720 --> 0:15:27.400
<v Speaker 2>like a narrative in and of itself, so yes, it

0:15:27.440 --> 0:15:29.800
<v Speaker 2>has kind of this AI element to it. But he's

0:15:29.840 --> 0:15:31.560
<v Speaker 2>the same kind of people who like a story, who

0:15:31.600 --> 0:15:34.440
<v Speaker 2>like a narrative, and if they can get that narrative going,

0:15:34.480 --> 0:15:35.840
<v Speaker 2>then you know, you never know.

0:15:36.080 --> 0:15:37.880
<v Speaker 1>Of course, is the Skuy the limit or the moon

0:15:37.920 --> 0:15:42.960
<v Speaker 1>the limit? The moon that's fantastic. Beau is absolutely fantastic, Okay, brilliant.

0:15:43.040 --> 0:15:45.320
<v Speaker 1>Is there anything else that we need to tell people today?

0:15:45.840 --> 0:15:49.720
<v Speaker 2>No, I think there is so many things to be

0:15:49.800 --> 0:15:51.800
<v Speaker 2>focused on in markets at the moment that if we

0:15:51.840 --> 0:15:52.840
<v Speaker 2>do that, we may never leave.

0:15:53.200 --> 0:15:55.360
<v Speaker 1>We think we've given them enough for one day. Thank you, Sam,

0:15:55.400 --> 0:16:02.880
<v Speaker 1>Thank you so much. Thanks for listening to this week's

0:16:02.880 --> 0:16:04.920
<v Speaker 1>Marion Talks Money Market Rap. If you like our show,

0:16:05.000 --> 0:16:07.920
<v Speaker 1>rate review and subscribe wherever you listen to podcasts. Also,

0:16:07.960 --> 0:16:09.480
<v Speaker 1>be sure to follow me and John on ex or

0:16:09.520 --> 0:16:13.200
<v Speaker 1>Twitter at marinsw and John Underscore step Exammy on Twitter.

0:16:13.800 --> 0:16:15.240
<v Speaker 2>I'm not very much on Twitter, but you can follow

0:16:15.280 --> 0:16:16.880
<v Speaker 2>me on LinkedIn and you can find the Market Today

0:16:16.880 --> 0:16:19.240
<v Speaker 2>blog on Bloomberg UK every day excellent.

0:16:19.320 --> 0:16:22.200
<v Speaker 1>Thank you. This episode was produced by Summersadi and Moses

0:16:22.200 --> 0:16:24.520
<v Speaker 1>and questions and comments on this show and all our

0:16:24.520 --> 0:16:27.000
<v Speaker 1>shows are always welcome. Our show email is Merrior Money

0:16:27.000 --> 0:16:28.480
<v Speaker 1>at Bloomberg dot net