Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, single best Idea.
Speaker 2: What an interesting Monday. Thank you to all of our team,
Speaker 2: Eric and Laura Nemaeis for putting together a good conversation
Speaker 2: with Andrew Cromo as he runs for mayor of New York.
Speaker 2: Had a real national feel to it with all that's
Speaker 2: going on. But we also covered the markets first. We
Speaker 2: began and the equity markets with Ben Laidler of Bridesco.
Speaker 2: Ben Laidler here with his natural bullish tone, but he shifts.
Speaker 2: He looks from America abroad.
Speaker 3: The rest of the world, I think is where you
Speaker 3: get the risk reward growth is fermi up. Interest rates
Speaker 3: are being cut, you're getting some fiscal stimulus, and again
Speaker 3: you're pushing on an open door because currency is a
Speaker 3: cheap and valuations are chair and you're getting again, you
Speaker 3: don't need a lot of money coming out of the
Speaker 3: US because the US has just got so supersized. These
Speaker 3: other markets have got so small, you know, a little
Speaker 3: bit of faery dust, and I think that's the driver
Speaker 3: of this sum of this rest of the world aut performance.
Speaker 3: And again I only need to be half right there.
Speaker 3: I'm not betting against the US I'm just arguing it's
Speaker 3: a more average ten percent environment.
Speaker 2: Important distinction there. He did not say sell the US.
Speaker 2: He just said, all of a sudden, there's a value proposition.
Speaker 2: I was stunned by his comments on Brazil. He said, look,
Speaker 2: Brazil is incredibly inexpensive. He showed some enthusiasm for that
Speaker 2: is perhaps you'd expect from the Latin American firm Bridesco
Speaker 2: as well. Charles Canter is just fascinating. He's wonderful with
Speaker 2: Newburger Berman. Charles Canter came by to talk about his
Speaker 2: continued enthusiasm. So we looked at Yes, Meg seven the
Speaker 2: view forward with artificial intelligence.
Speaker 4: I think what gets lost a little bit on the
Speaker 4: Magnificent seven is is this good reasons why men of them,
Speaker 4: you know, are magnificent. And one thing I'd like to
Speaker 4: point out is when you look at both their R
Speaker 4: and D spend and their CAPEX spend on an annual basis,
Speaker 4: these seven companies spend north of nine percent of their
Speaker 4: revenues on R and D, which is north of two
Speaker 4: hundred and fifty billion dollars. To contextualize that amount, that's
Speaker 4: more than the entire healthcare and biotech sectors. Combined. Why
Speaker 4: do we pick those sectors because those sectors have to
Speaker 4: invest in R and D to replenish their pipelines. And
Speaker 4: then on the balance sheet side of the Ledger especially
Speaker 4: pronounced over the last couple of years as that built
Speaker 4: out their AI investments. Last year was the first time
Speaker 4: that they spend more than the entire materials, mining, and
Speaker 4: industrial sectors combined. Why don't we pick those sectors because
Speaker 4: those are typically the most capal intensive sectors. So at
Speaker 4: the end of the day, lump together these seven companies
Speaker 4: have incredible optionality on the future.
Speaker 2: Charles Canter, I'm Newburger Berman, beginning to an eventful week
Speaker 2: with a key inflation report on Wednesday. Across the nation
Speaker 2: in your Commute and Serious XM Channel one twenty one,
Speaker 2: Apple CarPlay, Android Auto Good Morning, ninety ninety one FM
Speaker 2: in Washington, ninety two nine FM in Boston, and on
Speaker 2: the podcast and particularly on YouTube podcasts. This is a
Speaker 2: single best idea