Speaker 1: Bloomberg Audio Studios, podcasts, radio news, a single best.
Speaker 2: Idea, and this is what surveillance is about. When we
Speaker 2: started doing this a zillion years ago, it was about
Speaker 2: the intellectual abilities of these guests and touching upon the
Speaker 2: secret sauce, the pixie dust of why they were at
Speaker 2: a given bank, a given university, a given investment shop
Speaker 2: around the world. And this is part of doing economics, finance, investment,
Speaker 2: and indeed international relations. Major shout out today to Henrietta
Speaker 2: Trees on Short Time Veda Partners on all the news
Speaker 2: out of Washington. I thought, just a great job by
Speaker 2: the Bloomberg team working literally overnight, Stephen Dennis leading our
Speaker 2: coverage on Capitol Hill, with Zach Cohen and Josh Wing
Speaker 2: Grove out at the White House as well many others.
Speaker 2: It's just a huge team response. But we started with
Speaker 2: bonds and equity and what you're going to hear here
Speaker 2: our windows into the way these people really talk when
Speaker 2: they don't dumb it down. For Tom Keene, here's a
Speaker 2: mandolin on Blackrock with the linkage here of accounting, an
Speaker 2: incentive and debt new issuance.
Speaker 3: There are two things to consider. One is a lot
Speaker 3: of these companies are still in a net cash position,
Speaker 3: which is important. So they're adding debt to their capital structure,
Speaker 3: but their leverage is still incredibly low because they have
Speaker 3: all of this cash on their balandcyet. The question is
Speaker 3: why that's left over from the pre twenty seventeen era
Speaker 3: when cash was generated overseas and then it needed to
Speaker 3: be taxed to be repatriated back to the US. So
Speaker 3: there's still some cash over there is the point. The
Speaker 3: second point is that there's a bit of an upper
Speaker 3: bound to how big these capital structures can get. So
Speaker 3: in our note, which you know we outline, we estimate
Speaker 3: that if you look at just like the mag seven
Speaker 3: X Tesla, so removing autos, there's probably an incremental four
Speaker 3: hundred billion plus of incremental debt capacity if you just
Speaker 3: increase the gross leverage by half a turn, really modest,
Speaker 3: that's a really large number. But we don't expect that
Speaker 3: to be utilized because these capital structures, we think cannot
Speaker 3: get that large, and also that deck capacity will just
Speaker 3: be used gradually over time for strategic opportunity.
Speaker 2: Absolutely brilliant, Just to put one idea in here, it's
Speaker 2: like foreign exchange every day, even as smart as you are,
Speaker 2: you have to go. Okay, it's euros as compared to dollars,
Speaker 2: but it's dollars as compared again basic stuff and the
Speaker 2: amandelidum world. What is so interesting is traditional finance, but
Speaker 2: using it applied across these technology juggernauts. It's not the
Speaker 2: same math, it's not the same microeconomics, it's not the
Speaker 2: same Fabosi or is v body up Austin University. It's
Speaker 2: something original going on right now. As we see with
Speaker 2: these billion dollar transactions of thirty year paper that seemed
Speaker 2: to be sold on five phone calls. One of those
Speaker 2: phone calls may go to B and P. Perry by
Speaker 2: other French giant. Greg Boudel has been just wonderful in equities,
Speaker 2: in the derivative dynamics of the equity market. Here Greg
Speaker 2: Boudel with enthusiasm.
Speaker 4: Well, essentially, what we've seen is this kind of pocket
Speaker 4: of turbulence. The last couple of weeks government shutdown has
Speaker 4: been a part of it. We think is kind of
Speaker 4: positioning led that the market got a bit of ahead
Speaker 4: of itself in September with this kind of real reach
Speaker 4: for upside, this exuberant rally. But what we've seen out
Speaker 4: of the last say three or four weeks, is a
Speaker 4: pullback inequities, pick up in volatility at a time when
Speaker 4: the newsflow that we have had, the bottom up newsflow
Speaker 4: has actually been very strong.
Speaker 2: Earnings.
Speaker 3: We've just been through kind of the vast majority of earnings.
Speaker 4: Were they good enough for this market? Were they good
Speaker 4: enough for you and your call on this market?
Speaker 3: Yeah?
Speaker 4: I think they were a really good earning season. I mean,
Speaker 4: you can start with the large cap tech and I
Speaker 4: think one of the best ways to look at the
Speaker 4: lens of earnings and distill the information is what did
Speaker 4: all the analysts do that cover the stocks with next
Speaker 4: year's numbers? And they took all of those numbers higher.
Speaker 4: So they digested that news, from the calls, from the releases,
Speaker 4: and they increased their forecast.
Speaker 2: Good Bottle b MP pery by with a really terse
Speaker 2: optimistic note. On podcasts, We're on an Apple on Spotify,
Speaker 2: on YouTube podcasts. It's single best idea