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Speaker 1: Bloomberg Audio Studios, podcasts, radio news, a single best.

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Speaker 2: Idea, and this is what surveillance is about. When we

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Speaker 2: started doing this a zillion years ago, it was about

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Speaker 2: the intellectual abilities of these guests and touching upon the

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Speaker 2: secret sauce, the pixie dust of why they were at

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Speaker 2: a given bank, a given university, a given investment shop

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Speaker 2: around the world. And this is part of doing economics, finance, investment,

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Speaker 2: and indeed international relations. Major shout out today to Henrietta

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Speaker 2: Trees on Short Time Veda Partners on all the news

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Speaker 2: out of Washington. I thought, just a great job by

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Speaker 2: the Bloomberg team working literally overnight, Stephen Dennis leading our

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Speaker 2: coverage on Capitol Hill, with Zach Cohen and Josh Wing

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Speaker 2: Grove out at the White House as well many others.

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Speaker 2: It's just a huge team response. But we started with

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Speaker 2: bonds and equity and what you're going to hear here

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Speaker 2: our windows into the way these people really talk when

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Speaker 2: they don't dumb it down. For Tom Keene, here's a

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Speaker 2: mandolin on Blackrock with the linkage here of accounting, an

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Speaker 2: incentive and debt new issuance.

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Speaker 3: There are two things to consider. One is a lot

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Speaker 3: of these companies are still in a net cash position,

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Speaker 3: which is important. So they're adding debt to their capital structure,

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Speaker 3: but their leverage is still incredibly low because they have

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Speaker 3: all of this cash on their balandcyet. The question is

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Speaker 3: why that's left over from the pre twenty seventeen era

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Speaker 3: when cash was generated overseas and then it needed to

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Speaker 3: be taxed to be repatriated back to the US. So

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Speaker 3: there's still some cash over there is the point. The

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Speaker 3: second point is that there's a bit of an upper

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Speaker 3: bound to how big these capital structures can get. So

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Speaker 3: in our note, which you know we outline, we estimate

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Speaker 3: that if you look at just like the mag seven

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Speaker 3: X Tesla, so removing autos, there's probably an incremental four

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Speaker 3: hundred billion plus of incremental debt capacity if you just

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Speaker 3: increase the gross leverage by half a turn, really modest,

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Speaker 3: that's a really large number. But we don't expect that

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Speaker 3: to be utilized because these capital structures, we think cannot

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Speaker 3: get that large, and also that deck capacity will just

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Speaker 3: be used gradually over time for strategic opportunity.

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Speaker 2: Absolutely brilliant, Just to put one idea in here, it's

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Speaker 2: like foreign exchange every day, even as smart as you are,

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Speaker 2: you have to go. Okay, it's euros as compared to dollars,

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Speaker 2: but it's dollars as compared again basic stuff and the

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Speaker 2: amandelidum world. What is so interesting is traditional finance, but

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Speaker 2: using it applied across these technology juggernauts. It's not the

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Speaker 2: same math, it's not the same microeconomics, it's not the

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Speaker 2: same Fabosi or is v body up Austin University. It's

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Speaker 2: something original going on right now. As we see with

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Speaker 2: these billion dollar transactions of thirty year paper that seemed

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Speaker 2: to be sold on five phone calls. One of those

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Speaker 2: phone calls may go to B and P. Perry by

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Speaker 2: other French giant. Greg Boudel has been just wonderful in equities,

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Speaker 2: in the derivative dynamics of the equity market. Here Greg

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Speaker 2: Boudel with enthusiasm.

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Speaker 4: Well, essentially, what we've seen is this kind of pocket

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Speaker 4: of turbulence. The last couple of weeks government shutdown has

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Speaker 4: been a part of it. We think is kind of

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Speaker 4: positioning led that the market got a bit of ahead

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Speaker 4: of itself in September with this kind of real reach

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Speaker 4: for upside, this exuberant rally. But what we've seen out

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Speaker 4: of the last say three or four weeks, is a

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Speaker 4: pullback inequities, pick up in volatility at a time when

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Speaker 4: the newsflow that we have had, the bottom up newsflow

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Speaker 4: has actually been very strong.

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Speaker 2: Earnings.

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Speaker 3: We've just been through kind of the vast majority of earnings.

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Speaker 4: Were they good enough for this market? Were they good

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Speaker 4: enough for you and your call on this market?

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Speaker 3: Yeah?

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Speaker 4: I think they were a really good earning season. I mean,

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Speaker 4: you can start with the large cap tech and I

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Speaker 4: think one of the best ways to look at the

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Speaker 4: lens of earnings and distill the information is what did

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Speaker 4: all the analysts do that cover the stocks with next

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Speaker 4: year's numbers? And they took all of those numbers higher.

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Speaker 4: So they digested that news, from the calls, from the releases,

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Speaker 4: and they increased their forecast.

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Speaker 2: Good Bottle b MP pery by with a really terse

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Speaker 2: optimistic note. On podcasts, We're on an Apple on Spotify,

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Speaker 2: on YouTube podcasts. It's single best idea