WEBVTT - BoJ Policy Decision, Fox Corp. Chair Steps Down

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<v Speaker 1>Good morning. I'm Brian Curtis.

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<v Speaker 2>And I'm Doug Krisner. Here are the stories we're following today.

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<v Speaker 3>US equities posting the biggest drop in six months. The

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<v Speaker 3>market is adjusting here to a world where rates will

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<v Speaker 3>be higher for longer. Here's Shanaide Colton Grant, Global head

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<v Speaker 3>of Investors Solutions at bny MELON Wealth Management.

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<v Speaker 4>Investors are working through very unusual inflation environments, much tighter

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<v Speaker 4>central bank policy, and we're reacting to new information. So

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<v Speaker 4>I would say earlier in the year there was actually

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<v Speaker 4>probably too much optimism about potential FED rate cuts that

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<v Speaker 4>then got priced out of markets. We've now consolidated, We've

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<v Speaker 4>built a better base to move forward.

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<v Speaker 1>Bn Y Melon's Shinade Colton Grant.

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<v Speaker 2>So we heard today from the former head of the

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<v Speaker 2>Saint Louis FED, Jim Bullard. He was saying the Fed

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<v Speaker 2>may need to raise rates even further as a way

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<v Speaker 2>of avoiding a reacceleration in inflation. Here is Bullard speaking

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<v Speaker 2>earlier to Bloomberg.

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<v Speaker 5>Earlier this year, there was White's prediction that there would

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<v Speaker 5>be a recession, and in the second half of twenty

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<v Speaker 5>twenty three that recession isn't materializing. So to the extent

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<v Speaker 5>you thought that a recession would produce extra downward pressure

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<v Speaker 5>on inflation that had to be taken back out. So

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<v Speaker 5>you've got you ended up with a higher for longer

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<v Speaker 5>message here. I think that makes a lot of sense.

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<v Speaker 2>Former Saint Louis Fedbank President Jim Bullard. Now, yesterday we

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<v Speaker 2>were talking about the Fed holding rates steady at that

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<v Speaker 2>twenty two year high for the FED funds in a

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<v Speaker 2>range now between five and a quarter to five and

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<v Speaker 2>a half percent. Most policymakers at the Fed also signaled

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<v Speaker 2>they would favor one more rate hike this year, and

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<v Speaker 2>in new production of predictions, officials trimmed estimates for the

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<v Speaker 2>number of rate cuts next year from one hundred basis

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<v Speaker 2>points all the way down to fifty basis points.

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<v Speaker 3>Brian well Doug a changing of the guard at Fox

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<v Speaker 3>and his parent company, At least on paper, we had

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<v Speaker 3>the story from Bloomberg Steve Roppaport.

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<v Speaker 6>Rupert Murdoch is stepping down as chairman of Fox's parent

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<v Speaker 6>company and his news Court media holes, but the ninety

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<v Speaker 6>two year old will maintain a presence as chairman emeritus

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<v Speaker 6>of both companies. Fox says Murdoch's son Lachlan Murdock will

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<v Speaker 6>ascend to chairman of News Corp and retain his role

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<v Speaker 6>as Fox Corps CEO. Lachlan, in a statement, expressed gratitude

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<v Speaker 6>that his father will stay on to provide counsel for

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<v Speaker 6>both companies. Rupert Murdoch got his start with a small

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<v Speaker 6>newspaper in Australia and worked his way up to a

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<v Speaker 6>global media empire with a vast portfolio that includes the

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<v Speaker 6>Fox News Network, the Wall Street Journal, and television properties

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<v Speaker 6>in the US and the UK. Steve Rappaport Bloomberg Radio.

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<v Speaker 1>Big Tech tild deal.

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<v Speaker 2>Today, Cisco Systems has agreed to buy the software developers Splunk.

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<v Speaker 2>It's a twenty eight billion dollar transaction and it is

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<v Speaker 2>Cisco's biggest acquisition to date. This move really highlights Cisco's

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<v Speaker 2>massive push into software and AI powered data analysis. Here's

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<v Speaker 2>Bloomberg's Ed Ludlow.

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<v Speaker 7>This is so in line with Chuck Robbins right, a

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<v Speaker 7>networking gear seller like Cisco adding the software services in

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<v Speaker 7>complement to that. Splunk is a data indexing business. Basically,

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<v Speaker 7>you can monitor network users in real time. It has

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<v Speaker 7>a cyber security element. For those investors or Cisco and

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<v Speaker 7>Splunk investors out there. This deal will not impact Cisco's

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<v Speaker 7>previously an out shared by back program.

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<v Speaker 2>Bloomberg zed Ludlow. There By the way, Cisco will be

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<v Speaker 2>paying one hundred and fifty seven dollars a share cash

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<v Speaker 2>that represents a thirty one percent premium to Splunk's closing

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<v Speaker 2>price on Wednesday. By the way, the cost of the

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<v Speaker 2>transaction represents roughly ten percent of Cisco's market value.

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<v Speaker 1>Brian, and here is something you alluded to earlier, Doug.

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<v Speaker 3>The Bank of Japan expected to keep monetary stimulus unchanged

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<v Speaker 3>at its meeting today. Investors will be focusing on any

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<v Speaker 3>remarks by Governor Kazu Ueita on negative rates or the

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<v Speaker 3>yen that says the end trades near a ten month low,

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<v Speaker 3>although we did get a pop today. As Doug mentioned,

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<v Speaker 3>at the moment dollar yen one forty seven fifty five

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<v Speaker 3>traders are on alert for possible intervention, with one fifty

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<v Speaker 3>per dollars seen as the trigger level. Investors will be

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<v Speaker 3>looking for clarification on Nueita's remark to the Yomiuri newspaper

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<v Speaker 3>this month. Uaita said that the chances are not zero

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<v Speaker 3>that authorities might be able to confirm a virtuous wage

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<v Speaker 3>inflation cycle by year end, and that could be a prerequisite.

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<v Speaker 1>For a rate hype.

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<v Speaker 3>Ryan Curtis and Doug Critisner Rashad Saloma will join us

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<v Speaker 3>in a few moments. Doug, as journalists were naturally cynical.

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<v Speaker 1>I can give you example.

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<v Speaker 3>We were waiting for a hawkish pause from the Fed,

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<v Speaker 3>and we got it. But the thing is, we were

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<v Speaker 3>waiting for a douvish hawkish pause, and we got a

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<v Speaker 3>hawkish hawkish pause, So go sell. That's kind of the

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<v Speaker 3>way the market reacted. And I see that as just

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<v Speaker 3>the skiddest nature to all of this.

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<v Speaker 2>Could be right about that. And let's talk about a

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<v Speaker 2>case of bad timing now, because the latest data from

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<v Speaker 2>ep FR Global shows that investors plowed in about twenty

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<v Speaker 2>six point four billion dollars into US equities in the

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<v Speaker 2>most recent week, that was last week. That level is

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<v Speaker 2>the most that we've seen since March twenty twenty two.

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<v Speaker 2>And if you look at what was put into tech alone,

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<v Speaker 2>about one point three billion. So timing maybe not the best.

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<v Speaker 2>And I think it's fair to say this retreat that

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<v Speaker 2>we have seen not just in the equity market, but

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<v Speaker 2>in the bond market as well, has been very painful

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<v Speaker 2>for that sixty forty portfolio. So far in the month

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<v Speaker 2>of September, the sixty to forty model is down nearly

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<v Speaker 2>two percent.

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<v Speaker 3>So what's troubling, And this goes to the first part

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<v Speaker 3>of your comment is it doesn't look like now investors

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<v Speaker 3>are quite prepared to buy the dip on megacap tech,

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<v Speaker 3>at least at the moment.

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<v Speaker 1>We don't know, but that's the signal that we saw today.

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<v Speaker 3>But also what could be troubling to others is that

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<v Speaker 3>you had a pullback in everything, particularly in cyclical consumer

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<v Speaker 3>cyclical areas. The only thing that reasonably performed well was healthcare,

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<v Speaker 3>particularly managed care. That might be a standout going forward.

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<v Speaker 3>I wanted to mention one other story that we will

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<v Speaker 3>be looking at a little bit later. China is loosening

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<v Speaker 3>capital control measures, and this is to make it easier

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<v Speaker 3>for foreigners in Beijing to move their wages and their investments,

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<v Speaker 3>their investment gains and such out of the country. So

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<v Speaker 3>that's part of the effort to woo foreign investors. Will

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<v Speaker 3>it work, well, we have to wait. They've become pretty disillusioned.

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<v Speaker 2>Bill Gros said today that bond markets are headed for

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<v Speaker 2>an unprecedented third year of losses because of sticking inflation

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<v Speaker 2>and widening government deficits.

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<v Speaker 1>And wouldn't that be amazing. I can't even remember the

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<v Speaker 1>last year. Last time we had three years of losses.

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<v Speaker 1>We should we should look that up. Now it's time

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<v Speaker 1>for Global News.

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<v Speaker 3>US House Speaking, Kevin McCarthy has sent members home for

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<v Speaker 3>the weekend after his funding proposal was blocked at Baxter's.

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<v Speaker 3>On top of that, has Global News from the nine

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<v Speaker 3>to sixty news room in San Francisco.

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<v Speaker 8>Ed, Yeah, that's right. Brian McCarthy's efforts to get a

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<v Speaker 8>government funding bill have blown up, at least for now,

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<v Speaker 8>as he got ambushed by two ultra Conservatives who voted

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<v Speaker 8>even against bringing the bill up for a vote, dissidents

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<v Speaker 8>Eli Crane and once loyal supporter Marjorie Taylor Green.

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<v Speaker 9>We should be passed in appropriation bills right now, and

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<v Speaker 9>I've been very clear about take the Ukraine money out

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<v Speaker 9>of the defense bill and put it in a separate

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<v Speaker 9>funding bill so that members.

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<v Speaker 8>Like me can vote know and others can vote yes

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<v Speaker 8>if they want. Now, McCarthy has sent members home until Tuesday,

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<v Speaker 8>shortening the working time frame, and still saying there is

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<v Speaker 8>time though.

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<v Speaker 10>No it's not pretty, but this country's too great to

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<v Speaker 10>quit on. And so what we are going to do.

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<v Speaker 10>And remember what this is, it's not a cr it's

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<v Speaker 10>the funding of government for the next thirty days to

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<v Speaker 10>get our work done.

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<v Speaker 8>But the reality is he can't get any work done

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<v Speaker 8>within his own party. Democratic House Leader Hakim Jeffrey's other

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<v Speaker 8>side of the aisle is scolding the mega Republicans and

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<v Speaker 8>Republicans in general for that matter.

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<v Speaker 11>Need the extreme mega Republicans to get their act together

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<v Speaker 11>in the civil war that's happening on the Republican side

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<v Speaker 11>of the isle, that's paralyzing Congress. Get your act together

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<v Speaker 11>so we can handle the business of the American people

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<v Speaker 11>and solve problems on their behalf.

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<v Speaker 8>The deadline is September thirtieth, as you probably know, let's

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<v Speaker 8>see Tuesday when they come back is the twenty sixth WOW.

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<v Speaker 8>And Bloomberg's Laura David this says almost an impossible job

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<v Speaker 8>right now.

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<v Speaker 12>Kevin McCarthy is still thinking at how can I keep

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<v Speaker 12>my job? How can I keep my right flank happy?

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<v Speaker 12>So they're trying all sorts of different things. They voted

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<v Speaker 12>on this defense bill earlier in the day. It failed

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<v Speaker 12>for the second time this week, a surprised to McCarthy.

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<v Speaker 12>Now they're looking at okay, can we go one by

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<v Speaker 12>one and pass all these government spending bills. They're going

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<v Speaker 12>to have to do some sort of shut stop gap

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<v Speaker 12>measure to avoid a shutdown in nine days. But this

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<v Speaker 12>is where they're still kind of throwing everything at the

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<v Speaker 12>wall see what they can get. And it's almost certain

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<v Speaker 12>that we're headed to a shutdown now, just given the

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<v Speaker 12>timing and given where everyone is.

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<v Speaker 8>Nine days and they're gone for three. Meanwhile, McCarthy has

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<v Speaker 8>met with Ukrainian President of Vladimir Zelensky. He says some

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<v Speaker 8>of his questions were answered, but all of the presidents

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<v Speaker 8>wishes could not be met.

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<v Speaker 4>So let's get.

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<v Speaker 10>Asked for a joint session.

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<v Speaker 13>We just didn't have time.

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<v Speaker 1>He's already given joint session.

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<v Speaker 10>So what we're doing for for Zelenski is exactly the

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<v Speaker 10>same thing that we did for the Prime Minister of

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<v Speaker 10>the UK the Prime Minister of Italy. We're putting the

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<v Speaker 10>bipartisan group of members together to meet with him.

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<v Speaker 8>So continued aid from Congress continues to be a question

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<v Speaker 8>for Zelenski. Chinese President Shi chiampiing well meet with Sirius

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<v Speaker 8>Bashara Salud Assad, I should say on the sidelines of

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<v Speaker 8>the Asian Games this week, as Assad makes his first

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<v Speaker 8>trip to China in nearly twenty years, and the Indian

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<v Speaker 8>Parliament has approved a bill a reserve a third of

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<v Speaker 8>lawmaker seats for women. Prime Minister Noarendra Motives says, a

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<v Speaker 8>defining moment in the nation's democratic journey. Global News powered

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<v Speaker 8>by more than twenty seven hundred journalists and analysts in

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<v Speaker 8>over one hundred twenty countries. In San Francisco, I'm Ed Baxter,

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<v Speaker 8>and this is Bloomberg.

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<v Speaker 3>This is Bloomberg Daybreak Asia. I'm Brian Curtis here in

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<v Speaker 3>Hong Kong. My colleague Rishad Saloma is here in the

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<v Speaker 3>studio with me, and our guest is Kim Forrest, founder

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<v Speaker 3>in io of Book Capital Partners. So just a few

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<v Speaker 3>moments ago, Kim, we were musing over what was causing

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<v Speaker 3>some of this nervousness in risk assets, like to get

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<v Speaker 3>your take on it.

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<v Speaker 14>Sure, well, I agree with your view, both of your views,

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<v Speaker 14>that it's a lot of things, and I also think

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<v Speaker 14>the third quarter is always kind of tricky and I

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<v Speaker 14>have to see it through my old cell site analyst goggles,

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<v Speaker 14>which says, oh, the third quarter is where a lot

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<v Speaker 14>of companies are unsure of whether or not they've made

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<v Speaker 14>their quarter because of vacations throughout the northern hemisphere. Everybody's

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<v Speaker 14>on vacation and it's just hard to get big deals done.

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<v Speaker 14>So that just adds a layer of uncertainty to this

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<v Speaker 14>quarter that many other quarters don't have. So it's everybody's nervous.

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<v Speaker 14>It's the third quarter, and part of me scratches my

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<v Speaker 14>head and goes, well, what are you playing this game for? Like,

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<v Speaker 14>what's your timeline? And if it's to outperform for this year,

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<v Speaker 14>maybe you're going to have a tough time. But how

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<v Speaker 14>about we do this. How about we own good companies

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<v Speaker 14>and we look for the next three to five years.

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<v Speaker 3>Yeah, I think that makes a lot of sense. It

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<v Speaker 3>depends on your time horizon, and the short term looks

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<v Speaker 3>like choppy waters. I wonder whether some investors are fearful

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<v Speaker 3>here that this is more than just seasonal weakness and

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<v Speaker 3>that it could morph into a little bit more of

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<v Speaker 3>a selloff on the idea that you have this inversion

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<v Speaker 3>of the yield curve that's telling us that something is

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<v Speaker 3>out there that is likely at least to happen at

0:11:36.920 --> 0:11:39.880
<v Speaker 3>a time when the FED is pretty firmly committed here

0:11:39.920 --> 0:11:41.200
<v Speaker 3>to higher for longer.

0:11:41.760 --> 0:11:44.640
<v Speaker 14>Sure, but I do think that what we're really missing

0:11:44.679 --> 0:11:48.000
<v Speaker 14>here is that this is a data driven FED, and

0:11:48.360 --> 0:11:51.720
<v Speaker 14>what they saw was data that inflation is persistent and

0:11:51.800 --> 0:11:55.320
<v Speaker 14>higher than they want. So they're saying, the job number

0:11:55.400 --> 0:11:59.880
<v Speaker 14>one is inflation, you know, getting that under control.

0:12:00.080 --> 0:12:00.240
<v Speaker 11>Now.

0:12:00.280 --> 0:12:03.600
<v Speaker 14>Remember America is really kind of unique with respect to

0:12:03.640 --> 0:12:07.160
<v Speaker 14>them mandates of their central bank. They have two of them,

0:12:07.559 --> 0:12:12.400
<v Speaker 14>which is full employment and steady pricing. But just because

0:12:12.400 --> 0:12:14.640
<v Speaker 14>they have two of them doesn't mean they can ignore one,

0:12:14.720 --> 0:12:17.000
<v Speaker 14>but they can wait one more than the other. And

0:12:17.120 --> 0:12:21.040
<v Speaker 14>right now, inflation is what they're trying to conquer. Now,

0:12:21.120 --> 0:12:26.080
<v Speaker 14>if they see, you know, the economic conditions changing, guess

0:12:26.120 --> 0:12:28.640
<v Speaker 14>what they're going to do. They're going to change. But

0:12:28.840 --> 0:12:32.640
<v Speaker 14>right now they were saying, right now, all things being considered,

0:12:32.840 --> 0:12:35.880
<v Speaker 14>we're going to have to leave it higher for longer,

0:12:36.200 --> 0:12:39.000
<v Speaker 14>which you know, that says that there's some strength here

0:12:39.040 --> 0:12:42.160
<v Speaker 14>in the US. Shouldn't be a bad thing. And yet

0:12:42.240 --> 0:12:44.680
<v Speaker 14>people are very very nervous that they're going to blow it.

0:12:44.800 --> 0:12:47.520
<v Speaker 14>And I think they've done relatively well so far, so

0:12:48.080 --> 0:12:49.560
<v Speaker 14>let's see what happens.

0:12:49.880 --> 0:12:53.280
<v Speaker 13>Yeah, see what happens certainly, So you know, are we

0:12:53.360 --> 0:12:55.439
<v Speaker 13>going to be seeing a slow down? I mean I'm

0:12:55.440 --> 0:12:58.920
<v Speaker 13>not talking about styflation, recession or anything quite that drastic,

0:12:59.000 --> 0:13:01.960
<v Speaker 13>but actually a meaningful slow down in the pipeline. And

0:13:02.000 --> 0:13:04.800
<v Speaker 13>will that, as you've been alluding to, be evidenced in

0:13:05.440 --> 0:13:07.480
<v Speaker 13>the data we get out of what you say, the

0:13:07.520 --> 0:13:09.960
<v Speaker 13>earnings reports that we get. And where does that leave

0:13:10.000 --> 0:13:11.160
<v Speaker 13>you with your portfolio?

0:13:11.679 --> 0:13:14.280
<v Speaker 14>Well, I think we may see that. I think that

0:13:14.440 --> 0:13:18.720
<v Speaker 14>is a very likely thing that probably in the next year,

0:13:18.880 --> 0:13:22.400
<v Speaker 14>some that the economy of the US is going to slow.

0:13:22.720 --> 0:13:25.199
<v Speaker 14>I don't think it's going to stall. I don't think stackflation.

0:13:25.760 --> 0:13:29.280
<v Speaker 14>But again, this could give you the ability to pick

0:13:29.360 --> 0:13:31.920
<v Speaker 14>up a good stock at a reasonable price, or maybe

0:13:31.960 --> 0:13:36.080
<v Speaker 14>even an extra reasonable price. I keep coming on your

0:13:36.080 --> 0:13:38.959
<v Speaker 14>show and saying, bad things happen, for sure, and you

0:13:39.000 --> 0:13:42.480
<v Speaker 14>should know what they could be. But good things happen too.

0:13:42.640 --> 0:13:45.560
<v Speaker 14>I don't own Nvidio, but in video is quadrupled this

0:13:45.679 --> 0:13:49.400
<v Speaker 14>year because of its changing fortunes. And that's what you

0:13:49.520 --> 0:13:52.360
<v Speaker 14>as an investor need to be looking for, is not

0:13:52.480 --> 0:13:56.360
<v Speaker 14>just the downside changing fortunes, but being brave stepping out

0:13:56.400 --> 0:13:58.760
<v Speaker 14>and understanding that there might be a trend that you

0:13:58.920 --> 0:14:03.120
<v Speaker 14>should spot and then invest into. So I don't think

0:14:03.160 --> 0:14:06.840
<v Speaker 14>going to cash is ever, ever, ever the answer, but

0:14:07.080 --> 0:14:09.840
<v Speaker 14>always being aware of both the downside but then the

0:14:09.920 --> 0:14:11.280
<v Speaker 14>upside as well.

0:14:11.480 --> 0:14:13.360
<v Speaker 3>Yeah, there's been quite a sell off in some of

0:14:13.400 --> 0:14:16.520
<v Speaker 3>the high flying megacap tech stocks, more than ten percent

0:14:16.920 --> 0:14:19.760
<v Speaker 3>in some cases. In fact, what's interesting about nvidio. Remember

0:14:19.760 --> 0:14:22.440
<v Speaker 3>when it came out with its earnings, the stock pop

0:14:22.480 --> 0:14:25.520
<v Speaker 3>from three hundred to four hundred, and then it went

0:14:25.600 --> 0:14:27.480
<v Speaker 3>further up after that, but now it's back to four

0:14:27.520 --> 0:14:30.120
<v Speaker 3>to ten, So it's given up almost all the gains

0:14:30.200 --> 0:14:34.160
<v Speaker 3>except for that one day repricing following the earnings. So

0:14:34.400 --> 0:14:37.280
<v Speaker 3>you can imagine that some people might be enticed by that.

0:14:37.920 --> 0:14:40.880
<v Speaker 3>But with rates higher for longer, you know, it seems

0:14:40.960 --> 0:14:43.000
<v Speaker 3>like a lot of people are just interpreting this as

0:14:43.120 --> 0:14:43.680
<v Speaker 3>sell tech.

0:14:44.120 --> 0:14:48.200
<v Speaker 14>Yeah, I mean that always is the default answer for

0:14:48.640 --> 0:14:52.200
<v Speaker 14>a lot of investors, and that's because tech and especially

0:14:52.320 --> 0:14:56.600
<v Speaker 14>chips have been tied at the hip to global growth,

0:14:56.680 --> 0:14:59.800
<v Speaker 14>if not a region growth. Right, So if you think

0:14:59.840 --> 0:15:02.960
<v Speaker 14>that the global growth is going to slow even more

0:15:03.000 --> 0:15:07.040
<v Speaker 14>than it has now looking at China and Europe. I

0:15:07.040 --> 0:15:10.360
<v Speaker 14>would say those are slow growing, if not negative growing places.

0:15:10.880 --> 0:15:14.880
<v Speaker 14>But I think too you have to understand this generative

0:15:14.920 --> 0:15:19.040
<v Speaker 14>AI stuff and AI in general, is something that a

0:15:19.040 --> 0:15:21.360
<v Speaker 14>lot of companies are going to be playing around with

0:15:21.760 --> 0:15:25.440
<v Speaker 14>and investing in to see if they can't get more

0:15:25.520 --> 0:15:28.480
<v Speaker 14>productivity out of their workers by using it. And that's

0:15:28.520 --> 0:15:32.160
<v Speaker 14>the key. Look for productive uses of AI, not just

0:15:32.320 --> 0:15:33.920
<v Speaker 14>cool uses of AI.

0:15:35.320 --> 0:15:38.040
<v Speaker 13>I mean, everybody mentions it now, that's the thing. And

0:15:38.120 --> 0:15:40.840
<v Speaker 13>it's so reminiscent of the dot com boom. I mean,

0:15:41.080 --> 0:15:42.960
<v Speaker 13>it does seem as though it's going to be the

0:15:42.960 --> 0:15:45.520
<v Speaker 13>panacea for the all the world's evils. The way it's

0:15:45.560 --> 0:15:48.280
<v Speaker 13>going right now, do you think people have just essentially

0:15:48.640 --> 0:15:50.640
<v Speaker 13>just gone a bit too far as they did in

0:15:50.720 --> 0:15:52.360
<v Speaker 13>the late nineteen nineties.

0:15:53.440 --> 0:15:56.400
<v Speaker 14>Absolutely, that is a great analogy. But look where we

0:15:56.440 --> 0:15:59.480
<v Speaker 14>are at the time. We thought ordering dog food online

0:15:59.680 --> 0:16:02.200
<v Speaker 14>was the miss thing on earth, and yet you know,

0:16:02.360 --> 0:16:05.960
<v Speaker 14>here we are ordering a whole lot of other dumb

0:16:05.960 --> 0:16:09.440
<v Speaker 14>stuff and depending on it for a lot of you know,

0:16:09.640 --> 0:16:13.920
<v Speaker 14>our daily needs. But it does work its way into

0:16:14.560 --> 0:16:17.040
<v Speaker 14>your life. It just doesn't play out the way you

0:16:17.080 --> 0:16:20.040
<v Speaker 14>think at the beginning of an investing cycle. And I

0:16:20.040 --> 0:16:23.080
<v Speaker 14>think that should be the lesson for us. All Let's

0:16:23.200 --> 0:16:26.480
<v Speaker 14>keep our eyes open and not just guess, oh, it's

0:16:26.520 --> 0:16:29.120
<v Speaker 14>in Nvidia, they're going to win. Let's sell everything out,

0:16:29.600 --> 0:16:30.120
<v Speaker 14>So give.

0:16:30.040 --> 0:16:31.920
<v Speaker 3>Us a theme that you can really bank on, and

0:16:31.920 --> 0:16:35.840
<v Speaker 3>maybe just talk about portfolio construction before we finish.

0:16:36.200 --> 0:16:39.720
<v Speaker 14>Well. I kind of like to not overweight or underweight

0:16:41.120 --> 0:16:44.520
<v Speaker 14>sectors because as we are finding out again this year,

0:16:45.360 --> 0:16:48.720
<v Speaker 14>oil's taking off and if you knew, if you look

0:16:48.760 --> 0:16:50.360
<v Speaker 14>at the beginning of the year, I don't think anybody

0:16:50.400 --> 0:16:54.160
<v Speaker 14>would have thought that, right. So I like maintaining the

0:16:54.280 --> 0:16:58.160
<v Speaker 14>sector weighting of whatever your benchmark is, but then trying

0:16:58.240 --> 0:17:01.560
<v Speaker 14>to find companies that are going to outperform their peers

0:17:01.600 --> 0:17:05.160
<v Speaker 14>within those sectors. So things that we like in tech,

0:17:05.240 --> 0:17:08.439
<v Speaker 14>since we're going to talk about tech are I know,

0:17:08.600 --> 0:17:12.040
<v Speaker 14>AI always has the need for a lot of storage

0:17:12.440 --> 0:17:16.480
<v Speaker 14>and fast computing power, and I think companies like AMD

0:17:17.160 --> 0:17:20.320
<v Speaker 14>and maybe even in TOW might have the ability to

0:17:20.440 --> 0:17:25.280
<v Speaker 14>scale up and at least get some of the crumbs

0:17:25.280 --> 0:17:29.400
<v Speaker 14>that fall off of Nvidia's table. But more importantly, there's

0:17:29.440 --> 0:17:31.600
<v Speaker 14>a lot of data needed for AI. So I like

0:17:31.720 --> 0:17:34.440
<v Speaker 14>anything that has to do with storing data, and that's

0:17:34.560 --> 0:17:36.200
<v Speaker 14>Micron and net app.

0:17:36.480 --> 0:17:38.399
<v Speaker 1>Okay, Kim, really good session.

0:17:38.440 --> 0:17:41.199
<v Speaker 3>Thanks so much for joining us, Kim Forrest, founder and

0:17:41.320 --> 0:17:46.720
<v Speaker 3>CIO of Book Capital Partners. This is Bloomberg Daybreak Asia,

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