1 00:00:00,120 --> 00:00:06,800 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:09,800 --> 00:00:13,600 Speaker 2: This is the Bloomberg Daybreak Asia podcast. I'm Brian Curtis 3 00:00:13,600 --> 00:00:16,319 Speaker 2: along with Doug Krisner. Join us each day for the 4 00:00:16,360 --> 00:00:19,760 Speaker 2: stories making news and moving markets in the Asia Pacific. 5 00:00:19,960 --> 00:00:22,400 Speaker 2: You can subscribe to the show anywhere you get your 6 00:00:22,400 --> 00:00:26,360 Speaker 2: podcasts and always on Bloomberg Radio, the Bloomberg Terminal and 7 00:00:26,400 --> 00:00:29,080 Speaker 2: the Bloomberg Business app and Video. 8 00:00:29,280 --> 00:00:32,520 Speaker 3: Was already the world's most valuable semiconductor firm. Well now 9 00:00:32,680 --> 00:00:36,320 Speaker 3: the company has become the first ever chip maker to 10 00:00:36,400 --> 00:00:40,479 Speaker 3: hit the three trillion dollar market cap level. We had 11 00:00:40,520 --> 00:00:43,240 Speaker 3: a rally and in Vidia today of five percent, a 12 00:00:43,400 --> 00:00:46,800 Speaker 3: record high, overtaking Apple in the process in terms of 13 00:00:46,920 --> 00:00:51,199 Speaker 3: market cap. Despite fears of an AI bubble, Bloomberg's Caroline 14 00:00:51,240 --> 00:00:54,200 Speaker 3: Hyde tells us in Vidia's gains are justified. 15 00:00:54,560 --> 00:00:58,000 Speaker 4: The valuation in many ways is phenomenal from a three 16 00:00:58,040 --> 00:01:01,760 Speaker 4: trillion dollar perspective. For the pe ratios, they ain't that 17 00:01:01,880 --> 00:01:05,119 Speaker 4: crazy because why revenue is growing at such a pace. 18 00:01:05,200 --> 00:01:07,680 Speaker 4: Just take their previous quarter numbers. When you've got revenue 19 00:01:07,680 --> 00:01:11,280 Speaker 4: climbing at two hundred percent, no wonder the share price 20 00:01:11,319 --> 00:01:14,560 Speaker 4: is already climbing two hundred percent we're meant to be 21 00:01:14,600 --> 00:01:16,440 Speaker 4: anticipating these sorts of games. It's meant to be a 22 00:01:16,440 --> 00:01:18,319 Speaker 4: future indication of value. 23 00:01:18,360 --> 00:01:22,000 Speaker 3: She is Caroline Hyde, the co host of Bloomberg Technology 24 00:01:22,040 --> 00:01:24,480 Speaker 3: in Video shares, by the way, are up one hundred 25 00:01:24,480 --> 00:01:27,640 Speaker 3: and forty seven percent so far this year, with the 26 00:01:27,800 --> 00:01:31,320 Speaker 3: entire chip sectors showing no sign of slowing down. 27 00:01:31,400 --> 00:01:35,040 Speaker 2: Brian, Well, let's bring in Caroline's co host ed Ludlow. 28 00:01:35,440 --> 00:01:37,720 Speaker 2: These two, boy, they really know this company and they 29 00:01:37,760 --> 00:01:42,240 Speaker 2: know the technology sphere. Ed, thanks very much for joining us. Well, 30 00:01:42,640 --> 00:01:46,240 Speaker 2: that said, even what Caroline mentioned there, the forward pe 31 00:01:46,319 --> 00:01:47,760 Speaker 2: now is over forty two. 32 00:01:48,640 --> 00:01:48,880 Speaker 5: Now. 33 00:01:48,960 --> 00:01:51,960 Speaker 2: You could buy Nvidia at nine hundred and fifty dollars 34 00:01:51,960 --> 00:01:54,080 Speaker 2: the day of its earnings. What was that ten days ago? 35 00:01:54,120 --> 00:01:58,120 Speaker 2: It's now at twelve hundred twenty four. The average target 36 00:01:58,200 --> 00:02:01,600 Speaker 2: price on the street is twelve OZHOI I'm curious what 37 00:02:01,680 --> 00:02:05,400 Speaker 2: you're hearing from both investors and also end users. 38 00:02:06,720 --> 00:02:09,320 Speaker 5: Yeah, I think that when you think about Nvideo and 39 00:02:09,360 --> 00:02:12,520 Speaker 5: its ability to make money from AI, that's that's kind 40 00:02:12,600 --> 00:02:15,800 Speaker 5: of where most people's head is at. We know the 41 00:02:15,880 --> 00:02:18,560 Speaker 5: story that all of the large language models that are 42 00:02:18,600 --> 00:02:22,280 Speaker 5: being trained around the world, or AI models are largely 43 00:02:22,400 --> 00:02:25,959 Speaker 5: using eight one hundred GPUs that go into big data centers. 44 00:02:26,560 --> 00:02:29,600 Speaker 5: You know, if there is a big AI company out there, 45 00:02:30,120 --> 00:02:34,280 Speaker 5: it's ninety nine point nine percent certain that they're using 46 00:02:34,320 --> 00:02:37,040 Speaker 5: in video to do so. But here's the thing we're talking. 47 00:02:37,120 --> 00:02:39,560 Speaker 5: We're excited. I heard it in your voice, guys about 48 00:02:39,600 --> 00:02:42,400 Speaker 5: a three trillion dollar market cap. The other headline is 49 00:02:42,440 --> 00:02:45,400 Speaker 5: that they surpassed Apple in marketcap, right, and so I 50 00:02:45,400 --> 00:02:47,440 Speaker 5: would ask you, guys, do a side by side net 51 00:02:47,440 --> 00:02:51,200 Speaker 5: margin comparison. In Video's net margin is about fifty five percent. 52 00:02:51,320 --> 00:02:54,560 Speaker 5: Apple's net margin is twenty five percent. You know that 53 00:02:54,560 --> 00:02:57,200 Speaker 5: that's the reality of what we're talking about. In in 54 00:02:57,280 --> 00:03:01,080 Speaker 5: Video is incredibly good at making a lot of money 55 00:03:01,880 --> 00:03:09,000 Speaker 5: and making the world's best GPUs incredibly efficiently and incredibly profitably. 56 00:03:09,040 --> 00:03:11,400 Speaker 5: In their relationship with TSMC is a big part of that. 57 00:03:11,720 --> 00:03:15,160 Speaker 3: Ed Our week began with comments from Jensen Huang speaking 58 00:03:15,200 --> 00:03:18,240 Speaker 3: at a conference right before a conference in Taiwan, and 59 00:03:18,280 --> 00:03:21,040 Speaker 3: he was talking about the fact that in Vidia's planning 60 00:03:21,040 --> 00:03:26,680 Speaker 3: to upgrade these AI accelerators every year. How expensive a proposition. 61 00:03:26,120 --> 00:03:30,160 Speaker 5: Is that, Well, if you look at just sort of revenue, 62 00:03:30,639 --> 00:03:35,720 Speaker 5: operating income, net income, R and D is a very 63 00:03:35,760 --> 00:03:39,960 Speaker 5: small part of the cash flow equation each year from Video. 64 00:03:40,080 --> 00:03:42,000 Speaker 5: I think I'm right and sayings about four billion dollars. 65 00:03:43,440 --> 00:03:47,200 Speaker 5: There is a concern that in Video is pumping out 66 00:03:47,360 --> 00:03:52,320 Speaker 5: new generations of AI accelerator so quickly that what will 67 00:03:52,320 --> 00:03:54,400 Speaker 5: happen is that they will have all these customers that 68 00:03:54,600 --> 00:03:57,240 Speaker 5: waited in line to get H one hundred, the current 69 00:03:57,320 --> 00:04:00,520 Speaker 5: volume generation, who then turn around and say, h hold on, 70 00:04:01,240 --> 00:04:03,680 Speaker 5: I just spent billions of dollars on H one hundreds, 71 00:04:03,680 --> 00:04:05,839 Speaker 5: and now you already have a new version that makes 72 00:04:05,840 --> 00:04:09,160 Speaker 5: it obsolete. The retort or push back that in Vidia 73 00:04:09,200 --> 00:04:12,640 Speaker 5: has is that this is the early innings or a 74 00:04:12,720 --> 00:04:15,880 Speaker 5: nascent industry, right, and the addressable market is very large. 75 00:04:16,240 --> 00:04:19,599 Speaker 5: But yeah, they're proving that they're ramping H two hundred 76 00:04:19,680 --> 00:04:23,400 Speaker 5: their next gen A accelerator. Blackwell ships by the end 77 00:04:23,400 --> 00:04:26,000 Speaker 5: of this year, and Rubin starts shipping next year, and 78 00:04:26,040 --> 00:04:29,720 Speaker 5: based on their performance and past president, we take them 79 00:04:29,760 --> 00:04:31,599 Speaker 5: at face value and believe them that they'll have a 80 00:04:31,640 --> 00:04:35,080 Speaker 5: new AI accelerator at that cadence every twelve months. 81 00:04:35,680 --> 00:04:39,520 Speaker 2: Yeah, so something has happened this week. Doug mentioned computext 82 00:04:39,520 --> 00:04:41,320 Speaker 2: and you've just laid it out that We've got some 83 00:04:41,400 --> 00:04:43,840 Speaker 2: new information there for sure. But if you look at 84 00:04:43,839 --> 00:04:46,400 Speaker 2: just in the last day, ASML up nine and a 85 00:04:46,480 --> 00:04:50,560 Speaker 2: half percent, TSMC up another six point nine percent, AMD 86 00:04:51,480 --> 00:04:55,520 Speaker 2: like the little brother, second cousin whatever of Nvidia of 87 00:04:55,680 --> 00:04:58,560 Speaker 2: three point nine percent in this last day, and in 88 00:04:58,680 --> 00:05:02,000 Speaker 2: Vidia up more than five percent. So I guess I 89 00:05:02,080 --> 00:05:04,360 Speaker 2: want to just put it to you again, why this week? 90 00:05:04,520 --> 00:05:05,600 Speaker 2: What happened this week? 91 00:05:06,520 --> 00:05:10,600 Speaker 5: I think it's the idea that these names can bring 92 00:05:10,920 --> 00:05:14,120 Speaker 5: products to market. I'm not saying how quickly, but that 93 00:05:14,160 --> 00:05:16,919 Speaker 5: they actually have sales channels to do it. What you 94 00:05:16,960 --> 00:05:20,400 Speaker 5: see in computechs is not just all of the chip makers. 95 00:05:20,440 --> 00:05:24,000 Speaker 5: So AMD and VideA both make AI accelerators, but you 96 00:05:24,080 --> 00:05:26,960 Speaker 5: see all the OEMs or like hardware makers, they're people 97 00:05:27,040 --> 00:05:30,640 Speaker 5: that make servers HPE talked about earlier in your segment, Dell. 98 00:05:31,200 --> 00:05:33,600 Speaker 5: And what those enterprise companies are so good at is 99 00:05:33,640 --> 00:05:38,200 Speaker 5: actually convincing everyday businesses around the world that the latest 100 00:05:38,320 --> 00:05:40,680 Speaker 5: in Vidia tech is something they actually need. And the 101 00:05:40,720 --> 00:05:43,080 Speaker 5: market's really starting to realize that what they keep doing 102 00:05:43,120 --> 00:05:45,920 Speaker 5: is going on stage together and saying, oh, you guys 103 00:05:45,920 --> 00:05:48,000 Speaker 5: want to do AI. This is what it looks like 104 00:05:48,040 --> 00:05:50,440 Speaker 5: when we sell you a server that's capable of doing that, 105 00:05:51,240 --> 00:05:53,400 Speaker 5: and the reason that the stocks are going the way 106 00:05:53,440 --> 00:05:56,920 Speaker 5: they are. When we come around to earnings, it materializes 107 00:05:56,960 --> 00:05:59,520 Speaker 5: as top bread line growth, which is what Caroline was saying. 108 00:06:00,080 --> 00:06:01,880 Speaker 5: Vesss love that they love to see the proof in 109 00:06:01,920 --> 00:06:02,320 Speaker 5: the pudding. 110 00:06:02,400 --> 00:06:06,360 Speaker 3: Well, I'm glad you mentioned a HPE Hewlett Packard enterprise. 111 00:06:06,560 --> 00:06:09,159 Speaker 3: The stock today rally did the company was able to 112 00:06:09,279 --> 00:06:12,200 Speaker 3: report a big increase in revenue. A lot of this 113 00:06:12,240 --> 00:06:15,599 Speaker 3: is driven by, obviously, the servers build for AI. Was 114 00:06:15,640 --> 00:06:18,360 Speaker 3: this a big surprise for the folks in Silicon Valley 115 00:06:18,360 --> 00:06:21,360 Speaker 3: that HPE kind of came out of nowhere it would 116 00:06:21,360 --> 00:06:23,440 Speaker 3: appear and deliver these type of results. 117 00:06:24,400 --> 00:06:28,040 Speaker 5: Actually, no, it's not a big surprise if you understand 118 00:06:28,080 --> 00:06:30,279 Speaker 5: how AI works in the real world. And I'm really 119 00:06:30,279 --> 00:06:32,719 Speaker 5: glad you guys are talking about this on the program. 120 00:06:32,839 --> 00:06:34,800 Speaker 5: If you're training a large language model, you don't just 121 00:06:34,839 --> 00:06:37,280 Speaker 5: phone gentsen one and say can I have ten thousand 122 00:06:37,320 --> 00:06:39,599 Speaker 5: GPUs please? He doesn't pop them in a bag and 123 00:06:39,680 --> 00:06:43,920 Speaker 5: mail them to you. The GPUs get combined with memory 124 00:06:43,960 --> 00:06:47,240 Speaker 5: chips and CPUs and they ship in server racks. Just 125 00:06:47,279 --> 00:06:50,840 Speaker 5: imagine rows and rows of servers. Who builds those servers? 126 00:06:50,880 --> 00:06:53,520 Speaker 5: Guys Hpe does, and they've done it for a really 127 00:06:53,560 --> 00:06:56,880 Speaker 5: long time, and they're really exceptionally good at it, so 128 00:06:58,160 --> 00:07:00,840 Speaker 5: you know, it's not a surprise. I did that interview 129 00:07:00,880 --> 00:07:02,920 Speaker 5: that you guys played out a moment ago this morning, 130 00:07:03,120 --> 00:07:04,719 Speaker 5: and that's what I asked him, like, are you finally 131 00:07:04,720 --> 00:07:06,920 Speaker 5: getting credit for something you've been doing for a long time? 132 00:07:08,440 --> 00:07:10,760 Speaker 2: Well, I want to go back to in Vidia, since 133 00:07:10,800 --> 00:07:13,560 Speaker 2: that's kind of at the heart of this. Is there 134 00:07:13,600 --> 00:07:15,840 Speaker 2: some key man risk there with Jensen One? 135 00:07:17,760 --> 00:07:20,840 Speaker 5: He is the rock star of the moment, right like 136 00:07:21,360 --> 00:07:25,000 Speaker 5: it was Elon Muskin, now it's Jensen and he is 137 00:07:25,040 --> 00:07:30,960 Speaker 5: a very engineering driven CEO. He is in high demand. 138 00:07:31,600 --> 00:07:33,680 Speaker 5: But I can tell you that the bench of talent 139 00:07:33,880 --> 00:07:37,640 Speaker 5: in Video is absolutely insane. Their comp bill is something 140 00:07:37,680 --> 00:07:41,480 Speaker 5: worth looking at going forward, their stock based compensation because 141 00:07:41,520 --> 00:07:43,480 Speaker 5: they are having to pay overn those to keep a 142 00:07:43,480 --> 00:07:45,200 Speaker 5: lot of very smart people at that company. 143 00:07:45,280 --> 00:07:47,840 Speaker 3: I think he's worth more than ninety billion of himself. 144 00:07:48,480 --> 00:07:51,200 Speaker 3: Should this company in any way be looking over at 145 00:07:51,240 --> 00:07:54,920 Speaker 3: shoulder when you consider an Intel or an AMD or 146 00:07:54,960 --> 00:07:57,880 Speaker 3: are we so far down the road now that in 147 00:07:58,000 --> 00:08:00,200 Speaker 3: Vidia is essentially a care free. 148 00:08:01,240 --> 00:08:05,640 Speaker 5: They're the only maker of AI accelerators so far producing 149 00:08:05,720 --> 00:08:09,160 Speaker 5: at volume. TSMC makes them as the contract manufacturer. But 150 00:08:09,400 --> 00:08:11,640 Speaker 5: simply these are the numbers in video. Will do one 151 00:08:11,680 --> 00:08:15,120 Speaker 5: hundred billion dollars of AI accelerator sales this year. AMD 152 00:08:15,480 --> 00:08:18,120 Speaker 5: might do four billion, which is pretty good based on 153 00:08:18,120 --> 00:08:21,800 Speaker 5: what they guided recently, and Intel five hundred million, Intel, 154 00:08:21,800 --> 00:08:25,240 Speaker 5: an AMD and negligible players at this point, you. 155 00:08:25,200 --> 00:08:28,800 Speaker 2: Know, there might even be another leg up from Broadcom's 156 00:08:28,840 --> 00:08:31,160 Speaker 2: earnings coming on June twelfth, because that's been kind of 157 00:08:31,160 --> 00:08:33,800 Speaker 2: sleepy there, and that's also a company that has benefited 158 00:08:33,840 --> 00:08:36,920 Speaker 2: a lot. Ed thank you as usual for sharing your 159 00:08:36,960 --> 00:08:40,760 Speaker 2: insights and educating us on this. That is Ed Ludlow 160 00:08:40,920 --> 00:08:44,360 Speaker 2: from Bloomberg Technology and the co host of Key program 161 00:08:44,360 --> 00:08:54,880 Speaker 2: there with Caroline High joining us. Noud is Anastasia Amoroso, 162 00:08:55,040 --> 00:08:59,240 Speaker 2: chief investment strategist at I Capital. Anastasia just give you 163 00:08:59,280 --> 00:09:00,800 Speaker 2: this wide platform. 164 00:09:00,920 --> 00:09:02,000 Speaker 1: What do you like at the moment? 165 00:09:02,679 --> 00:09:04,760 Speaker 6: Well, there's a lot to like, I would say, across 166 00:09:04,800 --> 00:09:08,000 Speaker 6: the spectrum, and you know, I like, for example, the 167 00:09:08,080 --> 00:09:11,720 Speaker 6: semiconductor trade that is just unstoppable. I think that is ongoing. 168 00:09:11,840 --> 00:09:15,240 Speaker 6: But at the same time, the broader manufactory momentum around 169 00:09:15,280 --> 00:09:17,880 Speaker 6: the world is really picking up right now, and this 170 00:09:17,920 --> 00:09:20,240 Speaker 6: is a story that we started talking about earlier this year. 171 00:09:20,320 --> 00:09:22,240 Speaker 6: But it's not just a one month trade. This is 172 00:09:22,320 --> 00:09:26,720 Speaker 6: really a nine month average upswinging manufacturing. So I really 173 00:09:26,840 --> 00:09:29,080 Speaker 6: like that. And then of course to kind of circle 174 00:09:29,080 --> 00:09:32,440 Speaker 6: the world and go over to Europe. The ECB is 175 00:09:32,480 --> 00:09:37,360 Speaker 6: poised to begin its rate cutting campaign, and I'm actually 176 00:09:37,480 --> 00:09:40,640 Speaker 6: quite bullish on European equities, not necessarily because of that, 177 00:09:41,080 --> 00:09:43,680 Speaker 6: but because of the economic momentum that I see there 178 00:09:43,679 --> 00:09:47,200 Speaker 6: in services and manufacturing. So lots to pick up on. 179 00:09:47,440 --> 00:09:50,760 Speaker 3: What about geopolitics, how is that entering your thinking. We've 180 00:09:50,800 --> 00:09:54,760 Speaker 3: had the elections in Mexico and in India. Brian and 181 00:09:54,760 --> 00:09:58,000 Speaker 3: I were talking about k shaped recoveries yesterday and both 182 00:09:58,040 --> 00:10:01,800 Speaker 3: of those jurisdictions. How are you factoring in geopolitics right now? 183 00:10:01,840 --> 00:10:05,760 Speaker 6: And you're thinking, right, well, geopolitics is a constant in 184 00:10:05,800 --> 00:10:09,000 Speaker 6: the markets, if you will. There's always an election cycle somewhere. 185 00:10:09,080 --> 00:10:12,560 Speaker 6: There's unfortunately, always a disturbance somewhere. But what we do 186 00:10:12,679 --> 00:10:16,520 Speaker 6: know historically is a volatility surrounding some of these geopolitical 187 00:10:16,520 --> 00:10:20,040 Speaker 6: events tends to come and go, and it really smooths 188 00:10:20,080 --> 00:10:24,000 Speaker 6: out with the passage of time. And so obviously in 189 00:10:24,000 --> 00:10:27,319 Speaker 6: the United States, there's a big election coming up in November, 190 00:10:27,400 --> 00:10:30,559 Speaker 6: but maybe it's and by the way we see the 191 00:10:30,640 --> 00:10:35,760 Speaker 6: volatility surface imply some concern around the event. But at 192 00:10:35,760 --> 00:10:38,920 Speaker 6: the same time, we've seen this before, We've been through 193 00:10:38,960 --> 00:10:42,200 Speaker 6: the two candidates before, and so I think there's a 194 00:10:42,200 --> 00:10:45,280 Speaker 6: certain expectations of what the policy may look like. But 195 00:10:45,360 --> 00:10:48,199 Speaker 6: the markets right now, I think are really focused on 196 00:10:48,360 --> 00:10:52,440 Speaker 6: the fundamental economic momentum and it's hard to even for 197 00:10:52,520 --> 00:10:54,000 Speaker 6: geopolitics to disrupt that. 198 00:10:55,440 --> 00:10:59,280 Speaker 2: You mentioned that manufacturing was on the upswing, and I 199 00:10:59,320 --> 00:11:01,719 Speaker 2: think that's a positive. I think another positive is that 200 00:11:02,000 --> 00:11:06,800 Speaker 2: earnings revisions, earnings estimates are higher than both GDP growth 201 00:11:06,880 --> 00:11:10,080 Speaker 2: and inflation levels and the Fed funds rate. Is that 202 00:11:10,200 --> 00:11:12,920 Speaker 2: something that would cause you to look at the US 203 00:11:12,920 --> 00:11:17,240 Speaker 2: market and to think about broadening the exposure well beyond tech. 204 00:11:18,200 --> 00:11:21,480 Speaker 6: Yes, that's a really really good point. You know, time 205 00:11:21,520 --> 00:11:23,840 Speaker 6: and time again over the last few quarters, we have 206 00:11:24,000 --> 00:11:28,520 Speaker 6: seen GDP growth outperform the consensus expectations that continue to 207 00:11:28,600 --> 00:11:32,760 Speaker 6: expect essentially zero percent growth, and so we've seen, for example, 208 00:11:32,800 --> 00:11:36,240 Speaker 6: in the United States, a very significant earnings beat for 209 00:11:36,400 --> 00:11:40,240 Speaker 6: the first quarter, and it's not just in tech, it's 210 00:11:40,280 --> 00:11:42,960 Speaker 6: across the board. And also, Brian, you know, yes, it's 211 00:11:43,000 --> 00:11:44,920 Speaker 6: about Nvidia this quarter and then now it's been for 212 00:11:44,960 --> 00:11:48,360 Speaker 6: a while, but you know, as we progress through to 213 00:11:48,400 --> 00:11:51,080 Speaker 6: the end of the year, we do see, for example, 214 00:11:51,160 --> 00:11:54,720 Speaker 6: the Big five, the you know, the top five US names, 215 00:11:54,760 --> 00:11:57,599 Speaker 6: deliver about seventeen percent earnings growth by the end of 216 00:11:57,679 --> 00:12:00,360 Speaker 6: Q four. But that's also true for thet of the 217 00:12:00,400 --> 00:12:03,400 Speaker 6: four hundred and ninety five companies in the SMP that 218 00:12:03,440 --> 00:12:06,800 Speaker 6: are also supposed to match that seventeen percent earnings growth 219 00:12:06,840 --> 00:12:10,200 Speaker 6: by Q four. So that's a really positive story of 220 00:12:10,240 --> 00:12:13,800 Speaker 6: broadening out in the US. But also again to go 221 00:12:13,920 --> 00:12:17,160 Speaker 6: back to Europe, I'm actually really encouraged by the degree 222 00:12:17,360 --> 00:12:21,920 Speaker 6: of positive economic surprises there. You know, again, we've seen 223 00:12:21,960 --> 00:12:24,720 Speaker 6: that on the services side, we've seen that on the 224 00:12:24,760 --> 00:12:28,280 Speaker 6: business confidence side, which you know, it's sort of interesting 225 00:12:28,360 --> 00:12:30,560 Speaker 6: to say that about Europe, but business confidence is at 226 00:12:30,559 --> 00:12:35,480 Speaker 6: the twenty six months high in Europe, and GDP growth 227 00:12:35,760 --> 00:12:39,920 Speaker 6: has been surpassing estimates. So as a result, Brian, earnings 228 00:12:40,000 --> 00:12:43,480 Speaker 6: estimates have actually been the best. Earnings revisions have been 229 00:12:43,520 --> 00:12:46,320 Speaker 6: the best in Europe across all the other develop markets. 230 00:12:46,400 --> 00:12:49,040 Speaker 3: So when you look at trade tension between the European 231 00:12:49,120 --> 00:12:52,080 Speaker 3: Union and China, particularly in the EV space, does that 232 00:12:52,160 --> 00:12:54,880 Speaker 3: cause you to get a little concern, particularly when you 233 00:12:54,880 --> 00:12:57,640 Speaker 3: look at a place like Germany that is so reliant 234 00:12:57,679 --> 00:13:00,360 Speaker 3: on exporting some of those cars into the Chinese market. 235 00:13:01,640 --> 00:13:04,720 Speaker 6: Yeah, it's a concern to be mindful of, for sure. 236 00:13:04,840 --> 00:13:07,960 Speaker 6: And you know, there's a big global competition going on 237 00:13:08,040 --> 00:13:11,040 Speaker 6: right now in terms of evs and in terms of semiconductors, 238 00:13:11,200 --> 00:13:13,760 Speaker 6: and but I don't think that's really going away, and 239 00:13:13,800 --> 00:13:15,880 Speaker 6: I think that's going to be the status quo that 240 00:13:16,520 --> 00:13:20,160 Speaker 6: economies and companies will have to deal with. But I 241 00:13:20,200 --> 00:13:23,360 Speaker 6: think they do adjust. And from the you know, from 242 00:13:23,360 --> 00:13:27,439 Speaker 6: the perspective of the broader markets, you know, a pain 243 00:13:27,559 --> 00:13:31,520 Speaker 6: in one sector is not necessarily representative of the whole, 244 00:13:31,600 --> 00:13:34,680 Speaker 6: but clearly doing the stock selection, you have to be 245 00:13:34,720 --> 00:13:35,360 Speaker 6: mindful of that. 246 00:13:36,679 --> 00:13:38,960 Speaker 2: So I'm wondering whether or not we're getting into a 247 00:13:39,440 --> 00:13:43,000 Speaker 2: potentially dangerous area of a melt up in stocks, because 248 00:13:43,480 --> 00:13:45,600 Speaker 2: you know, you've had these earnings that have been very strong, 249 00:13:45,720 --> 00:13:49,360 Speaker 2: little delayed reaction, but now boom to the upside. You've 250 00:13:49,360 --> 00:13:53,280 Speaker 2: had the economic data getting back to goldilocks and it 251 00:13:53,360 --> 00:13:55,320 Speaker 2: could be a time that a lot of money floods in. 252 00:13:55,400 --> 00:13:57,240 Speaker 2: Do you worry about that? And if so, do you 253 00:13:57,280 --> 00:13:57,880 Speaker 2: sell into it? 254 00:13:58,760 --> 00:14:02,600 Speaker 6: So short term sometimes you worry about that. You know, 255 00:14:03,720 --> 00:14:05,839 Speaker 6: for example, we've seen plenty of times just in the 256 00:14:05,880 --> 00:14:08,680 Speaker 6: last few weeks where you see these rallies, you get 257 00:14:08,720 --> 00:14:12,400 Speaker 6: to near term technically overbought levels. By the way, if 258 00:14:12,400 --> 00:14:16,000 Speaker 6: you look at Nvidia, it's a near term technically quite overbought, 259 00:14:16,400 --> 00:14:19,520 Speaker 6: and then you see these pullbacks. But these pullbacks don't 260 00:14:19,600 --> 00:14:22,880 Speaker 6: end up being all that meaningful because Brian, I think 261 00:14:22,880 --> 00:14:24,960 Speaker 6: there's two things happening. You know, first of all, you 262 00:14:25,080 --> 00:14:29,080 Speaker 6: have well actually the twofold catalyst for equities, which is 263 00:14:29,280 --> 00:14:33,400 Speaker 6: still resilient economic activity and the easing bias from central banks, 264 00:14:33,680 --> 00:14:37,000 Speaker 6: so that's really supporting the stocks fundamentally. And on the 265 00:14:37,080 --> 00:14:40,400 Speaker 6: other side, you have eight trillion dollars or more of 266 00:14:40,600 --> 00:14:46,080 Speaker 6: money markets globally, and you know, I think investors are 267 00:14:46,200 --> 00:14:50,479 Speaker 6: really starting to come around to the central banks eventually 268 00:14:50,560 --> 00:14:53,360 Speaker 6: sooner or later, cutting those interest rates, and in the meantime, 269 00:14:53,840 --> 00:14:55,960 Speaker 6: you know, stocks are rallying quite a bit. So I 270 00:14:56,040 --> 00:14:58,000 Speaker 6: do think that some of that money is going to 271 00:14:58,080 --> 00:15:02,840 Speaker 6: find its way into the equity market, So sometimes you 272 00:15:02,920 --> 00:15:06,080 Speaker 6: get concerned about near term technical levels, but longer term. 273 00:15:06,120 --> 00:15:09,240 Speaker 3: Before we let you go Onastasia, let's get your view 274 00:15:09,280 --> 00:15:11,600 Speaker 3: on China. You're right there. I mean, I'm sure you're 275 00:15:11,640 --> 00:15:13,760 Speaker 3: going to be doing your homework on a number of 276 00:15:13,840 --> 00:15:16,560 Speaker 3: different opportunities in China. Is there anything that you think 277 00:15:16,640 --> 00:15:17,680 Speaker 3: is compelling right now? 278 00:15:18,800 --> 00:15:19,080 Speaker 6: Well? 279 00:15:19,160 --> 00:15:19,560 Speaker 5: I do. 280 00:15:20,440 --> 00:15:23,400 Speaker 6: It's interesting because you know, if you haven't been paying 281 00:15:23,440 --> 00:15:26,160 Speaker 6: attention to the China market, and if you're sitting in 282 00:15:26,200 --> 00:15:28,680 Speaker 6: the US, it's easy to say, well, investors sort of 283 00:15:28,680 --> 00:15:31,480 Speaker 6: given up on China, But being here, you know, first 284 00:15:31,520 --> 00:15:35,080 Speaker 6: of all, that's certainly not the case, and it should 285 00:15:35,200 --> 00:15:37,520 Speaker 6: never be the case. So I think if I look 286 00:15:37,520 --> 00:15:40,880 Speaker 6: at the hedge fund community, for example, they've added to 287 00:15:41,080 --> 00:15:44,480 Speaker 6: the long China trade. They've since pulled back. But what 288 00:15:44,600 --> 00:15:48,560 Speaker 6: I do think is that the global optic inactivity in 289 00:15:48,720 --> 00:15:52,000 Speaker 6: manufacturing is certainly going to benefit China. I think a 290 00:15:52,040 --> 00:15:53,720 Speaker 6: lot of the mega trends that we talk about of 291 00:15:53,800 --> 00:15:57,760 Speaker 6: artificial intelligence and semiconductors and electric vehicles are playing out 292 00:15:57,880 --> 00:16:01,800 Speaker 6: right here in China. And I do think that China 293 00:16:01,800 --> 00:16:04,200 Speaker 6: has room to cut rates just for the support the economy. 294 00:16:04,280 --> 00:16:05,440 Speaker 6: That's a positive It's. 295 00:16:05,400 --> 00:16:07,280 Speaker 2: Nice to have you with us here in our studios. 296 00:16:07,640 --> 00:16:11,840 Speaker 2: Come back to Gay here soon. Anastasia Amoroso, chief investment strategist, said, 297 00:16:12,040 --> 00:16:14,960 Speaker 2: I Capital. You'll remember her from long time ago, Merrill 298 00:16:15,040 --> 00:16:25,600 Speaker 2: Lynch and also JP Morgan. We look at markets for 299 00:16:25,680 --> 00:16:28,760 Speaker 2: you all throughout the day here on Bloomberg Radio, Ryan 300 00:16:28,840 --> 00:16:32,320 Speaker 2: Curtis in the Bloomberg Interactive Brokers studio in Hong Kong. 301 00:16:32,840 --> 00:16:35,960 Speaker 2: Well Asian equities are rallying this morning. Earlier we had 302 00:16:35,960 --> 00:16:39,440 Speaker 2: big US tech companies driving stocks to all time highs. 303 00:16:39,760 --> 00:16:42,360 Speaker 2: The Nasdaq one hundred up a little more than two percent, 304 00:16:42,440 --> 00:16:45,240 Speaker 2: the S and P five hundred gaining one point two percent, 305 00:16:45,280 --> 00:16:48,400 Speaker 2: the Dow Jones Industrial Average up just a quarter of 306 00:16:48,520 --> 00:16:51,360 Speaker 2: one percent. Part of the rally came down to what 307 00:16:51,600 --> 00:16:55,280 Speaker 2: was comfortable economic data. We say that because the ADP 308 00:16:55,560 --> 00:16:58,280 Speaker 2: jobs report was solid, but it was a little softer 309 00:16:58,360 --> 00:17:02,040 Speaker 2: than expected, and these service sector PMI expanded by the 310 00:17:02,080 --> 00:17:05,560 Speaker 2: most in nine months, yet its employment component was a 311 00:17:05,640 --> 00:17:09,359 Speaker 2: tad softer than consensus at forty seven point one. The 312 00:17:09,440 --> 00:17:13,960 Speaker 2: takeaway was that growth is okay, and disinflation seems to 313 00:17:14,000 --> 00:17:16,800 Speaker 2: be okay as well. Some of these numbers are pretty 314 00:17:16,800 --> 00:17:19,040 Speaker 2: stark and Nvidia will tell you more about that in 315 00:17:19,080 --> 00:17:22,080 Speaker 2: the moment, up five point two percent. The socks was 316 00:17:22,200 --> 00:17:25,520 Speaker 2: up four and a half percent, companies like Meta gaining 317 00:17:25,560 --> 00:17:29,040 Speaker 2: three point eight percent. So more now on Invidia. That 318 00:17:29,200 --> 00:17:32,520 Speaker 2: rally put it past the three trillion dollar level in 319 00:17:32,600 --> 00:17:37,200 Speaker 2: market cap and also above Apple in size. Apple also rallied, 320 00:17:37,480 --> 00:17:40,800 Speaker 2: ASML said it would ship its latest chip making equipment 321 00:17:40,800 --> 00:17:44,200 Speaker 2: at TSMC this year. It says TSMC and Intel will 322 00:17:44,240 --> 00:17:47,840 Speaker 2: get the high grade extreme ultraviolet machines by the end 323 00:17:47,880 --> 00:17:50,840 Speaker 2: of the year. In fact, Intel already has received one 324 00:17:51,280 --> 00:17:54,960 Speaker 2: TSMC coming up. TSMC has raised some concerns about the price. 325 00:17:55,000 --> 00:17:58,359 Speaker 2: A senior executive said, I like the capabilities, but I 326 00:17:58,400 --> 00:18:01,560 Speaker 2: don't like the sticker price. But the stock did rally. 327 00:18:01,560 --> 00:18:04,159 Speaker 2: TSMC up six point nine percent until up two and 328 00:18:04,200 --> 00:18:08,240 Speaker 2: a half percent, and ASML's eight rs up almost ten percent, 329 00:18:08,760 --> 00:18:11,480 Speaker 2: yields down, yield on the tenure four point two eight percent. 330 00:18:11,520 --> 00:18:13,200 Speaker 2: The dollar down as well, and that is a check 331 00:18:13,200 --> 00:18:16,280 Speaker 2: of markets. Head backs to now with news in San Francisco. 332 00:18:16,480 --> 00:18:19,119 Speaker 7: Ed all right, thank you, Brian. Georgia Court of Appeals 333 00:18:19,160 --> 00:18:22,560 Speaker 7: is halted the Georgia interference case against Donald Trump and others. 334 00:18:22,840 --> 00:18:25,880 Speaker 7: This while it reviews. The lower court judges ruling allowing 335 00:18:26,160 --> 00:18:28,159 Speaker 7: the A Fani Willis to remain on the case, but 336 00:18:28,480 --> 00:18:31,399 Speaker 7: Jack Smith now is pushing to start the January sixth trial. 337 00:18:31,640 --> 00:18:35,719 Speaker 7: Bloomberg's Neomlika Henderson says the Trump camp is concerned. 338 00:18:35,880 --> 00:18:38,520 Speaker 8: I think they are very worried. I mean, you hear 339 00:18:38,560 --> 00:18:41,119 Speaker 8: Republicans trying to sort of spin what came out of 340 00:18:41,160 --> 00:18:41,560 Speaker 8: New York. 341 00:18:41,600 --> 00:18:43,480 Speaker 5: You say, oh, this was a fundraising boom. 342 00:18:43,560 --> 00:18:44,600 Speaker 4: We'll see it at some point. 343 00:18:44,680 --> 00:18:45,800 Speaker 8: Maybe it was, maybe it wasn't. 344 00:18:46,400 --> 00:18:49,960 Speaker 7: January sixth is waiting on a decision on Trump Immunity Center. 345 00:18:49,960 --> 00:18:52,199 Speaker 7: Republicans have blocked a bill to qualify the right to 346 00:18:52,240 --> 00:18:56,560 Speaker 7: access contraception. New York Governor Cathy Hochel abruptly halting the 347 00:18:56,600 --> 00:19:01,320 Speaker 7: Manhattan plan for congestion pricing. This announced really took almost 348 00:19:01,359 --> 00:19:02,680 Speaker 7: everybody by surprise. 349 00:19:02,920 --> 00:19:06,040 Speaker 8: My focus must be on putting more money back in 350 00:19:06,119 --> 00:19:09,840 Speaker 8: people's pockets, and that's why I must stand up for 351 00:19:09,920 --> 00:19:13,840 Speaker 8: them and say no to implementing the congestion pricing toll 352 00:19:14,280 --> 00:19:15,159 Speaker 8: at this time. 353 00:19:15,480 --> 00:19:19,000 Speaker 7: Israel's President Isaac Herzog has issued a warning following another 354 00:19:19,000 --> 00:19:21,880 Speaker 7: attack from Lebanon. He says the world better wake up 355 00:19:22,119 --> 00:19:26,400 Speaker 7: and realize Israel has no choice but to protect its citizens. 356 00:19:26,760 --> 00:19:30,280 Speaker 7: China's effort to recruit retired Western military pilots to train 357 00:19:30,640 --> 00:19:34,240 Speaker 7: its air force continues unabated. The US and four allies 358 00:19:34,640 --> 00:19:39,320 Speaker 7: have put out a joint bulletin suggesting Beijing is undeterred 359 00:19:39,720 --> 00:19:44,479 Speaker 7: and undeterred and despite repeated efforts to clamp down on 360 00:19:44,560 --> 00:19:47,040 Speaker 7: that practice. Global News twenty four hours a day and 361 00:19:47,080 --> 00:19:50,160 Speaker 7: whenever you want it with Bloomberg News Now in San Francisco. 362 00:19:50,280 --> 00:19:52,880 Speaker 7: I'm at Baxter. This is Bloomberg, all right, the long 363 00:19:52,960 --> 00:19:55,600 Speaker 7: toss from San Francisco back to Hong Kong. 364 00:19:55,640 --> 00:19:59,160 Speaker 2: Brian, Yeah, over the shoulder, catch, Thank you very much, 365 00:19:59,359 --> 00:20:01,360 Speaker 2: Ed Well. Joining it's now on the program to look 366 00:20:01,359 --> 00:20:05,520 Speaker 2: at these hot and frothy markets is Mary Nicola, Bloomberg 367 00:20:05,640 --> 00:20:07,840 Speaker 2: m Live Strategist. Mary. I know this must be a 368 00:20:07,880 --> 00:20:10,120 Speaker 2: little bit painful to you. You know, you come from 369 00:20:10,160 --> 00:20:13,400 Speaker 2: the background of managing other people's money. Need to be cautious. 370 00:20:13,880 --> 00:20:16,640 Speaker 2: I don't know about you, but I tell you, it's 371 00:20:16,680 --> 00:20:19,359 Speaker 2: like the stars are getting aligned here. It almost feels 372 00:20:19,400 --> 00:20:23,160 Speaker 2: like a melt up is coming. Do you sell into it? 373 00:20:24,520 --> 00:20:24,760 Speaker 8: Yeah? 374 00:20:24,760 --> 00:20:27,639 Speaker 1: It's an interesting point because it's everyone is waiting for 375 00:20:27,680 --> 00:20:30,000 Speaker 1: the shoot to drop right, and of course you're looking 376 00:20:30,040 --> 00:20:34,000 Speaker 1: at whether of course, nonfarm payroll is where it comes 377 00:20:34,040 --> 00:20:36,720 Speaker 1: down to, and it comes down to, as you said earlier, 378 00:20:37,280 --> 00:20:40,560 Speaker 1: that the data needs to be comfortable enough where you 379 00:20:40,680 --> 00:20:45,119 Speaker 1: show that you know the that's that it's it's it's 380 00:20:45,359 --> 00:20:49,200 Speaker 1: inflation is cooling and the and the economy is holding up, 381 00:20:49,400 --> 00:20:52,639 Speaker 1: and that's your ideal scenario. The bad scenario would be 382 00:20:52,880 --> 00:20:56,880 Speaker 1: just if you see that prices are still rising and 383 00:20:56,920 --> 00:21:00,400 Speaker 1: that you're seeing inflationary pressures, but everything else is slow down, 384 00:21:00,440 --> 00:21:04,399 Speaker 1: and that stagflationary mix is what stocks don't want to see. 385 00:21:04,760 --> 00:21:08,960 Speaker 1: And that's why every data becomes even more important and 386 00:21:09,000 --> 00:21:10,600 Speaker 1: sways the market in one direction. 387 00:21:10,960 --> 00:21:13,600 Speaker 3: Right now, I think the swaps market is continuing to 388 00:21:13,640 --> 00:21:16,560 Speaker 3: price the first FED rate cut in November, assuming that 389 00:21:16,600 --> 00:21:19,480 Speaker 3: would be twenty five basis points, and maybe another in December. 390 00:21:19,840 --> 00:21:21,920 Speaker 3: Do you think it's too much to say that we've 391 00:21:21,960 --> 00:21:23,240 Speaker 3: seen the peak in the dollar. 392 00:21:24,840 --> 00:21:24,919 Speaker 2: No. 393 00:21:25,880 --> 00:21:30,520 Speaker 1: I've long been dollar bullish, and largely because of the 394 00:21:30,520 --> 00:21:32,800 Speaker 1: fact that even if the FED cuts, and let's say 395 00:21:32,800 --> 00:21:35,119 Speaker 1: they cut let's say one or two basis points, you 396 00:21:35,160 --> 00:21:38,080 Speaker 1: still have nominal yields quite attractive for the dollar. And 397 00:21:38,080 --> 00:21:40,760 Speaker 1: that's going to keep up the dollar. So you still 398 00:21:40,840 --> 00:21:44,359 Speaker 1: if let's say the Fed the ECB cuts today, you 399 00:21:44,440 --> 00:21:47,800 Speaker 1: still have a decent differential for the dollar, and that's 400 00:21:47,800 --> 00:21:49,000 Speaker 1: what's going to keep it supported. 401 00:21:50,440 --> 00:21:54,240 Speaker 2: Goldman Sachs said, a wall of money from passive equity 402 00:21:54,280 --> 00:21:58,119 Speaker 2: allocations will pour into the stock market in early July. 403 00:21:59,160 --> 00:22:01,760 Speaker 2: Do you buy that figuraly, not literally? 404 00:22:01,800 --> 00:22:06,040 Speaker 1: Of course, there is a lot of money sitting on 405 00:22:06,080 --> 00:22:09,119 Speaker 1: the sidelines. If you see where money market funds have 406 00:22:09,240 --> 00:22:12,400 Speaker 1: been for a very long time, they've just been rising 407 00:22:12,880 --> 00:22:14,600 Speaker 1: and a lot of it has to do with the 408 00:22:14,600 --> 00:22:16,879 Speaker 1: fact that you know, for example right now, that you 409 00:22:17,000 --> 00:22:19,760 Speaker 1: can get a decent rate from short term yields, and 410 00:22:20,359 --> 00:22:24,360 Speaker 1: that has been keeping the money markets going. So it's 411 00:22:24,400 --> 00:22:28,119 Speaker 1: a matter of especially if they see that rally continue. 412 00:22:28,160 --> 00:22:30,800 Speaker 1: You could see that wall of money going through as 413 00:22:30,880 --> 00:22:33,520 Speaker 1: the melt up does happen, and the melt up continues. 414 00:22:33,640 --> 00:22:36,480 Speaker 3: Speaking of a rally, we had in Vidia shares jumping 415 00:22:36,520 --> 00:22:38,520 Speaker 3: more than five percent today. The company now is a 416 00:22:38,520 --> 00:22:41,400 Speaker 3: market cap above three trillion for the first time ever. 417 00:22:42,080 --> 00:22:45,479 Speaker 3: What does the AI story mean for tech in Asia 418 00:22:45,560 --> 00:22:46,000 Speaker 3: right now? 419 00:22:46,960 --> 00:22:48,880 Speaker 1: Yeah, it's been one of the key drivers, let's say, 420 00:22:48,920 --> 00:22:51,719 Speaker 1: for Taiwan. So Taiwan has been one of the biggest 421 00:22:51,720 --> 00:22:55,080 Speaker 1: beneficiaries and the best beneficiaries from the AI story thanks 422 00:22:55,080 --> 00:22:59,159 Speaker 1: to TSMC, and TSMC has been following through on a 423 00:22:59,240 --> 00:23:02,920 Speaker 1: lot of what they've on that AI boom. Take for example, 424 00:23:02,960 --> 00:23:05,600 Speaker 1: Samsung isn't keeping up as much, so that's holding the 425 00:23:05,640 --> 00:23:09,520 Speaker 1: Cosby back a bit. But for Taiwan, for example, that's 426 00:23:09,560 --> 00:23:12,359 Speaker 1: going to keep going. But you're seeing globally, not only 427 00:23:12,760 --> 00:23:16,959 Speaker 1: from governments, are also filtering money into the AI boom, 428 00:23:17,040 --> 00:23:19,800 Speaker 1: and that's going to continue, That's likely to continue, and 429 00:23:19,840 --> 00:23:22,879 Speaker 1: that's going to set a lot of this growth disparity 430 00:23:22,920 --> 00:23:26,200 Speaker 1: and productivity apart. So it looks like the AI driven 431 00:23:26,240 --> 00:23:28,480 Speaker 1: boom just looks set to continue. 432 00:23:29,119 --> 00:23:32,000 Speaker 2: Yet I was looking at Baidu's stock chart yesterday. It's 433 00:23:32,000 --> 00:23:35,879 Speaker 2: pretty ugly. Upper left to the bottom right. It seems 434 00:23:35,920 --> 00:23:37,760 Speaker 2: like it can't get out of its own way. We 435 00:23:37,840 --> 00:23:40,120 Speaker 2: know about all of the constraints that have been put 436 00:23:40,160 --> 00:23:43,520 Speaker 2: on Chinese stocks. Although we've had this bounce obviously of late. 437 00:23:44,240 --> 00:23:47,320 Speaker 2: Let's talk for a moment about China. What has to 438 00:23:47,440 --> 00:23:49,639 Speaker 2: happen for these stocks to really work. 439 00:23:50,600 --> 00:23:53,640 Speaker 1: Yeah, it's really going to come down to what happens 440 00:23:53,640 --> 00:23:56,200 Speaker 1: on the implementation. So we've heard a lot of great 441 00:23:56,200 --> 00:23:59,520 Speaker 1: policy announcements from the Chinese government sort of putting a 442 00:23:59,520 --> 00:24:01,480 Speaker 1: floor onto the markets, but now it's going to be 443 00:24:01,480 --> 00:24:05,000 Speaker 1: about implementation because the retail market is still a very 444 00:24:05,000 --> 00:24:08,520 Speaker 1: important part of the China markets and they haven't really 445 00:24:08,520 --> 00:24:12,439 Speaker 1: participated yet. They're still putting money into savings, they're actually 446 00:24:12,440 --> 00:24:17,600 Speaker 1: putting their money into their mortgages. So that's where you're 447 00:24:17,680 --> 00:24:20,440 Speaker 1: seeing a lot of the retail driven money going towards. 448 00:24:20,640 --> 00:24:23,439 Speaker 1: It's not going into the stock market just yet, but 449 00:24:23,680 --> 00:24:25,720 Speaker 1: a lot of it is going to be predicated if 450 00:24:25,720 --> 00:24:29,280 Speaker 1: we see that shift coming through until the implementation of 451 00:24:29,359 --> 00:24:31,879 Speaker 1: a lot of what's announced, and if it actually puts 452 00:24:31,880 --> 00:24:36,240 Speaker 1: a stop into the route in the property market, I. 453 00:24:36,240 --> 00:24:38,600 Speaker 3: Think we can agree. The big event for em this 454 00:24:38,640 --> 00:24:40,760 Speaker 3: week was in India with the election. How are you 455 00:24:40,840 --> 00:24:43,920 Speaker 3: making sense of what the markets are reflecting right now 456 00:24:43,960 --> 00:24:45,639 Speaker 3: and what they seem to be telling us. 457 00:24:46,440 --> 00:24:51,399 Speaker 1: Yeah, it's interesting to see how the outflows on January fourth, 458 00:24:51,480 --> 00:24:54,320 Speaker 1: so it says it was one of the largest outflows 459 00:24:54,359 --> 00:24:57,399 Speaker 1: that the Indian market has seen from foreign investors. A 460 00:24:57,440 --> 00:25:01,080 Speaker 1: lot of that is indicative of how important growth policies 461 00:25:01,119 --> 00:25:05,160 Speaker 1: are and the growth trajectory is so for India that's 462 00:25:05,200 --> 00:25:07,240 Speaker 1: been one of the key things, especially because it's been 463 00:25:07,240 --> 00:25:10,440 Speaker 1: an expensive market if you look at it invaluation perspective. 464 00:25:10,720 --> 00:25:13,040 Speaker 1: So let's say it's more expensive than Taiwan from a 465 00:25:13,080 --> 00:25:17,320 Speaker 1: PE ratio, or even more expensive or very similar not 466 00:25:17,400 --> 00:25:19,800 Speaker 1: too far off the S and P five hundred. So 467 00:25:20,080 --> 00:25:23,880 Speaker 1: if and they have been delivering on growth, both earning's 468 00:25:23,880 --> 00:25:27,960 Speaker 1: growth and nominal growth for GDP. So it's really about 469 00:25:28,000 --> 00:25:32,080 Speaker 1: policy continuity if you're going to keep foreign investors interested 470 00:25:32,640 --> 00:25:36,879 Speaker 1: in in a market that does have expensive valuations. 471 00:25:37,600 --> 00:25:39,960 Speaker 2: Okay, you got fifteen seconds, give me a great call. 472 00:25:40,119 --> 00:25:42,040 Speaker 2: Something you see that others don't. You don't have to 473 00:25:42,040 --> 00:25:43,240 Speaker 2: say why, we'll figure it out. 474 00:25:45,640 --> 00:25:46,000 Speaker 6: Well. 475 00:25:46,240 --> 00:25:49,240 Speaker 1: I think it's all about ECB today and what happens 476 00:25:49,520 --> 00:25:52,400 Speaker 1: could have serious ramifications on the FX markets. 477 00:25:52,760 --> 00:25:55,880 Speaker 2: Yeah, I meant we'll investigate it. Really but Mary, thank 478 00:25:55,960 --> 00:25:58,920 Speaker 2: you so much for joining us. The excellent Mary Niccola 479 00:25:59,000 --> 00:26:02,680 Speaker 2: with us from our bloom m Live team, a strategist there. 480 00:26:02,680 --> 00:26:04,119 Speaker 2: You can find her material on it. 481 00:26:06,200 --> 00:26:09,159 Speaker 3: This has been the Bloomberg Daybreak Asia podcast, bringing you 482 00:26:09,200 --> 00:26:12,320 Speaker 3: the stories making news and moving markets in the Asia Pacific. 483 00:26:12,840 --> 00:26:15,960 Speaker 3: Visit the Bloomberg Podcast channel on YouTube. To get more 484 00:26:16,000 --> 00:26:19,600 Speaker 3: episodes of this and other shows from Bloomberg, subscribe to 485 00:26:19,600 --> 00:26:23,399 Speaker 3: the podcast on Apple, Spotify, or anywhere else you listen 486 00:26:23,520 --> 00:26:26,600 Speaker 3: and always on Bloomberg Radio, the Bloomberg Terminal, and the 487 00:26:26,640 --> 00:26:27,720 Speaker 3: Bloomberg Business app.