WEBVTT - Single Best Idea with Tom Keene: Ben Laidler & Charles Kantor

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, single best Idea.

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<v Speaker 2>What an interesting Monday. Thank you to all of our team,

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<v Speaker 2>Eric and Laura Nemaeis for putting together a good conversation

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<v Speaker 2>with Andrew Cromo as he runs for mayor of New York.

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<v Speaker 2>Had a real national feel to it with all that's

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<v Speaker 2>going on. But we also covered the markets first. We

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<v Speaker 2>began and the equity markets with Ben Laidler of Bridesco.

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<v Speaker 2>Ben Laidler here with his natural bullish tone, but he shifts.

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<v Speaker 2>He looks from America abroad.

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<v Speaker 3>The rest of the world, I think is where you

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<v Speaker 3>get the risk reward growth is fermi up. Interest rates

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<v Speaker 3>are being cut, you're getting some fiscal stimulus, and again

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<v Speaker 3>you're pushing on an open door because currency is a

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<v Speaker 3>cheap and valuations are chair and you're getting again, you

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<v Speaker 3>don't need a lot of money coming out of the

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<v Speaker 3>US because the US has just got so supersized. These

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<v Speaker 3>other markets have got so small, you know, a little

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<v Speaker 3>bit of faery dust, and I think that's the driver

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<v Speaker 3>of this sum of this rest of the world aut performance.

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<v Speaker 3>And again I only need to be half right there.

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<v Speaker 3>I'm not betting against the US I'm just arguing it's

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<v Speaker 3>a more average ten percent environment.

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<v Speaker 2>Important distinction there. He did not say sell the US.

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<v Speaker 2>He just said, all of a sudden, there's a value proposition.

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<v Speaker 2>I was stunned by his comments on Brazil. He said, look,

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<v Speaker 2>Brazil is incredibly inexpensive. He showed some enthusiasm for that

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<v Speaker 2>is perhaps you'd expect from the Latin American firm Bridesco

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<v Speaker 2>as well. Charles Canter is just fascinating. He's wonderful with

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<v Speaker 2>Newburger Berman. Charles Canter came by to talk about his

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<v Speaker 2>continued enthusiasm. So we looked at Yes, Meg seven the

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<v Speaker 2>view forward with artificial intelligence.

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<v Speaker 4>I think what gets lost a little bit on the

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<v Speaker 4>Magnificent seven is is this good reasons why men of them,

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<v Speaker 4>you know, are magnificent. And one thing I'd like to

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<v Speaker 4>point out is when you look at both their R

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<v Speaker 4>and D spend and their CAPEX spend on an annual basis,

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<v Speaker 4>these seven companies spend north of nine percent of their

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<v Speaker 4>revenues on R and D, which is north of two

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<v Speaker 4>hundred and fifty billion dollars. To contextualize that amount, that's

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<v Speaker 4>more than the entire healthcare and biotech sectors. Combined. Why

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<v Speaker 4>do we pick those sectors because those sectors have to

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<v Speaker 4>invest in R and D to replenish their pipelines. And

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<v Speaker 4>then on the balance sheet side of the Ledger especially

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<v Speaker 4>pronounced over the last couple of years as that built

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<v Speaker 4>out their AI investments. Last year was the first time

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<v Speaker 4>that they spend more than the entire materials, mining, and

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<v Speaker 4>industrial sectors combined. Why don't we pick those sectors because

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<v Speaker 4>those are typically the most capal intensive sectors. So at

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<v Speaker 4>the end of the day, lump together these seven companies

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<v Speaker 4>have incredible optionality on the future.

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<v Speaker 2>Charles Canter, I'm Newburger Berman, beginning to an eventful week

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<v Speaker 2>with a key inflation report on Wednesday. Across the nation

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<v Speaker 2>in your Commute and Serious XM Channel one twenty one,

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<v Speaker 2>Apple CarPlay, Android Auto Good Morning, ninety ninety one FM

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<v Speaker 2>in Washington, ninety two nine FM in Boston, and on

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<v Speaker 2>the podcast and particularly on YouTube podcasts. This is a

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<v Speaker 2>single best idea