1
00:00:02,520 --> 00:00:15,120
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, single best Idea.

2
00:00:15,440 --> 00:00:19,079
Speaker 2: What an interesting Monday. Thank you to all of our team,

3
00:00:19,320 --> 00:00:24,400
Speaker 2: Eric and Laura Nemaeis for putting together a good conversation

4
00:00:24,480 --> 00:00:27,600
Speaker 2: with Andrew Cromo as he runs for mayor of New York.

5
00:00:27,640 --> 00:00:30,319
Speaker 2: Had a real national feel to it with all that's

6
00:00:30,360 --> 00:00:33,239
Speaker 2: going on. But we also covered the markets first. We

7
00:00:33,320 --> 00:00:37,960
Speaker 2: began and the equity markets with Ben Laidler of Bridesco.

8
00:00:38,720 --> 00:00:43,159
Speaker 2: Ben Laidler here with his natural bullish tone, but he shifts.

9
00:00:43,479 --> 00:00:45,400
Speaker 2: He looks from America abroad.

10
00:00:45,600 --> 00:00:46,879
Speaker 3: The rest of the world, I think is where you

11
00:00:46,880 --> 00:00:50,360
Speaker 3: get the risk reward growth is fermi up. Interest rates

12
00:00:50,400 --> 00:00:53,760
Speaker 3: are being cut, you're getting some fiscal stimulus, and again

13
00:00:53,760 --> 00:00:55,800
Speaker 3: you're pushing on an open door because currency is a

14
00:00:55,880 --> 00:00:58,520
Speaker 3: cheap and valuations are chair and you're getting again, you

15
00:00:58,560 --> 00:01:00,160
Speaker 3: don't need a lot of money coming out of the

16
00:01:00,240 --> 00:01:03,320
Speaker 3: US because the US has just got so supersized. These

17
00:01:03,320 --> 00:01:05,080
Speaker 3: other markets have got so small, you know, a little

18
00:01:05,080 --> 00:01:07,560
Speaker 3: bit of faery dust, and I think that's the driver

19
00:01:07,640 --> 00:01:10,440
Speaker 3: of this sum of this rest of the world aut performance.

20
00:01:10,480 --> 00:01:12,479
Speaker 3: And again I only need to be half right there.

21
00:01:12,760 --> 00:01:15,240
Speaker 3: I'm not betting against the US I'm just arguing it's

22
00:01:15,280 --> 00:01:17,399
Speaker 3: a more average ten percent environment.

23
00:01:17,240 --> 00:01:20,080
Speaker 2: Important distinction there. He did not say sell the US.

24
00:01:20,080 --> 00:01:23,120
Speaker 2: He just said, all of a sudden, there's a value proposition.

25
00:01:23,840 --> 00:01:26,440
Speaker 2: I was stunned by his comments on Brazil. He said, look,

26
00:01:26,480 --> 00:01:31,320
Speaker 2: Brazil is incredibly inexpensive. He showed some enthusiasm for that

27
00:01:31,880 --> 00:01:36,600
Speaker 2: is perhaps you'd expect from the Latin American firm Bridesco

28
00:01:36,880 --> 00:01:41,840
Speaker 2: as well. Charles Canter is just fascinating. He's wonderful with

29
00:01:42,680 --> 00:01:46,640
Speaker 2: Newburger Berman. Charles Canter came by to talk about his

30
00:01:46,760 --> 00:01:51,680
Speaker 2: continued enthusiasm. So we looked at Yes, Meg seven the

31
00:01:51,760 --> 00:01:55,040
Speaker 2: view forward with artificial intelligence.

32
00:01:55,240 --> 00:01:57,040
Speaker 4: I think what gets lost a little bit on the

33
00:01:57,120 --> 00:02:01,520
Speaker 4: Magnificent seven is is this good reasons why men of them,

34
00:02:01,720 --> 00:02:04,880
Speaker 4: you know, are magnificent. And one thing I'd like to

35
00:02:04,920 --> 00:02:07,960
Speaker 4: point out is when you look at both their R

36
00:02:07,960 --> 00:02:12,200
Speaker 4: and D spend and their CAPEX spend on an annual basis,

37
00:02:12,360 --> 00:02:16,840
Speaker 4: these seven companies spend north of nine percent of their

38
00:02:16,840 --> 00:02:18,920
Speaker 4: revenues on R and D, which is north of two

39
00:02:19,040 --> 00:02:23,120
Speaker 4: hundred and fifty billion dollars. To contextualize that amount, that's

40
00:02:23,160 --> 00:02:27,799
Speaker 4: more than the entire healthcare and biotech sectors. Combined. Why

41
00:02:27,880 --> 00:02:30,000
Speaker 4: do we pick those sectors because those sectors have to

42
00:02:30,040 --> 00:02:33,160
Speaker 4: invest in R and D to replenish their pipelines. And

43
00:02:33,200 --> 00:02:35,960
Speaker 4: then on the balance sheet side of the Ledger especially

44
00:02:36,000 --> 00:02:38,919
Speaker 4: pronounced over the last couple of years as that built

45
00:02:38,960 --> 00:02:43,400
Speaker 4: out their AI investments. Last year was the first time

46
00:02:43,480 --> 00:02:46,920
Speaker 4: that they spend more than the entire materials, mining, and

47
00:02:47,080 --> 00:02:51,080
Speaker 4: industrial sectors combined. Why don't we pick those sectors because

48
00:02:51,080 --> 00:02:53,880
Speaker 4: those are typically the most capal intensive sectors. So at

49
00:02:53,880 --> 00:02:57,640
Speaker 4: the end of the day, lump together these seven companies

50
00:02:57,800 --> 00:03:00,960
Speaker 4: have incredible optionality on the future.

51
00:03:01,400 --> 00:03:05,679
Speaker 2: Charles Canter, I'm Newburger Berman, beginning to an eventful week

52
00:03:05,720 --> 00:03:10,040
Speaker 2: with a key inflation report on Wednesday. Across the nation

53
00:03:10,120 --> 00:03:12,680
Speaker 2: in your Commute and Serious XM Channel one twenty one,

54
00:03:13,080 --> 00:03:16,720
Speaker 2: Apple CarPlay, Android Auto Good Morning, ninety ninety one FM

55
00:03:16,720 --> 00:03:20,760
Speaker 2: in Washington, ninety two nine FM in Boston, and on

56
00:03:20,840 --> 00:03:24,520
Speaker 2: the podcast and particularly on YouTube podcasts. This is a

57
00:03:24,560 --> 00:03:39,840
Speaker 2: single best idea