Nvidia, Apple Fall Amid Tech Selloff | Bloomberg The Pulse 08/05/24
FOR THE CONVERSATIONS THAT MATTER, THE MARKETS AND THE INSIGHTS YOU NEED, LET'S GET STARTED. FIRST GOOD MORNING, EVERYONE AND WELCOME TO THE POLLS. THIS GLOBAL SELLOFF IS INTENSIFYING AS THERE ARE CONCERNS THE FED IS BEHIND THE CURVE WITH SUPPORT FOR SLOWING U.S. ECONOMY.
THE TOPICS IN THE NIKKEI IN FALLING 12.5%. THANK YOU BOTH FOR JOINING US. LET'S START WITH YOU. SEEMS LIKE A BIG RAM BECAUSE THEY'RE WORRIED ABOUT AI. MARK IS A WORRIED THE FED IS THEY TO THE CURVE BUT THERE ARE ALSO GEOPOLITICS AND EARNINGS HAVE NOT BEEN SO GOOD.
WHAT DO YOU WORRY ABOUT THE MOST? QUESTION THINK AT THE MOMENT, THE MARKET IS REASSESSING ITS EXPECTATIONS. IT WAS AN ALL IS WELL TITLE VII FOR THE LAST SIX MONTHS. I THINK FOR NOW WE ARE QUIET COMFORTABLE TO TICK TO STRATEGIC INVESTMENTS TREASURE. IT MEANS NO UNDERWAY OR OVERWEIGHT OF EQUITIES OVERALL BUT THERE'S ALREADY SLEEK SHAKE OFF RIGHT NOW WHICH IS FAVORING MORE DEFENSIVE SECTORS AND INVESTMENT TEAMS. AND ESPYS FIXED INCOME IS CONCERNED, I
THINK RIGHT NOW WE HAVE GONE ALSO FROM PRICING. FEW INTEREST RATE CUTS BUT THE FED TO WITHIN 100 BASIS POINTS RIGHT NOW BY THE END OF THE YEAR AND IT SEEMS A LITTLE BIT EXAGGERATED AFTER JUST 100 -- ONE LABOR MARKET REPORT THAT WAS BELOW EXPECTATIONS. QUICK THANK YOU FOR THAT. IT FEELS MORE THAN JUST A LABOR REPORT. I THINK THE PACKET WEREN'T BUFFETT EXLEY CUT HIS INVESTMENTS TO AI AND APPALACHIA MUCH IS MAKING PEOPLE VERY NERVOUS WHEN IT COMES TO TECH.
>> I THINK THE SELLOFF WAS EXACERBATED BY HOW STRETCHED THE OPPOSITE SIDE OF THE TRADE WAS. FOR A LONG TIME EVERYONE WAS PRETTY CONFIDENT ABOUT THE SOFT LANDING SO PEOPLE WERE GOING LONG TECH. THEY WERE PUTTING ALL THESE CARRY TRADE'S, THEY WERE SELLING VOLATILITY AND I THINK IT JUST SHOWS HOW QUICKLY THESE NARRATIVES CAN BE UPENDED AND ETIQUETTE KIND IT BEGAN WITH THE U.S. JOBS REPORT LAST WEEK AND BECAUSE OF HOW STRETCHED THESE TRAITS ALREADY WERE. ON THIS ARE THE UNWINDING. IT JUST KEPT SNOWBALLING AND
THAT IS WHAT WE GET SUCH A BIG SELLOFF. >> WHAT ARE YOU SPENDING AFTER THESE JAPANESE BONGOS? IT IS HURTING BANKS. WHAT ARE YOU INSPECTING FOR THESE TO LEVEL OFF OR STABILIZE QUESTION MARK >> I THINK WE HAVE NOW A FEW WEEKS UNTIL THE NEXT LABOR MARKET REPORT AND INDEED THE SEPTEMBER FED MEETING WITH THE MARKET GOING TO BE NERVOUS. LET'S NOT FORGET THERE IS A VERY COMPLICATED CUBICLE SITUATION AS WELL AND THE VIX HAS SOARED AFTER A LONG TIME. A VERY SUB TO FIX LEVEL.
I THINK WE ARE IN A RISK OFF MODE PROBABLY FOR A FEW MORE WEEKS UNTIL THE MARKET GETS ECONOMIC DATA AGAIN. I DON'T THINK THE U.S. IS REALLY POISED FOR A RECESSION. MANUFACTURING HAS BEEN VERY
WEAK IN THE U.S.. NOT ONLY LAST MONTH. IT HAS BEEN FOR A STRETCH OF TIME. AND FOR THESE FEW WEEKS I EXPECT ALL ABILITY IN THE MARKETS FOR SURE. >> A WEEK SPENDING MORE INVESTORS TO CASH? QUESTION A I THINK THAT IS WHAT A LOT OF THEM WILL DO BUT THE ONE THING BUT THE SELLOFF IS THESE BONDS ARE DOING WHAT THEY'RE MEANT TO DO. BONGOS ARE FALLING ACROSS THE
BOARD SO AT LEAST YOU HAVE THAT HEDGING YOUR PORTFOLIO. PART OF THAT IS THE COURT FIGHT -- TIME TO FINISH SPECTATORS. AT LEAST THE FED HAS SOME PASTA CUT FROM BRIGHT NOW.
YOU'RE STARTING TO SEE MARKETS PRICING AND, WE'VE EVEN OF RATE CUT BEFORE THE NEXT MEETING IS PRECISE ONE IN THE SEPTEMBER MEETING. >> ON TECH STOCKS, AND WE WILL DELVE A LOT DEEPER INTO IT BUT IS THIS A DUE CORRECTION WORK DO YOU THINK THIS IS A PANIC SELLOFF? QUESTION ETIQUETTE WAS A LOT THAT IS RELATED TO SENTIMENT. I THINK AS YOU MENTION, HE WAS VERY WELL FOLLOWED BY ALL OF THEM, EVEN IN MARKETS OUTSIDE OF EQUITIES YOU MENTIONED THE BITCOIN ROUTE AS WELL. I THINK FOR SURE THAT ON THE TECH SIDE, THERE IS GOING TO BE OPPORTUNITIES AS WELL. THE ARTIFICIAL INTELLIGENCE SPREAD OUT OF ITS APPLICATION TO SOMETHING SECTORS IS ONLY AT THE BEGINNING AND I DO EXPECT THAT WHEN SOME OF THE NEGATIVE FACTORS OF INFLUENCE FOR THE MARKET IN GEOPOLITICS, AND THE U.S.
ECONOMY AND IN EXPECTATIONS GET CLEARER, THE MARKET HAS POTENTIAL TO RECOVER INCLUDING IN TECHNOLOGY STOCKS AS WELL. WHAT IS YOUR TAKE ON WHEN YOU LOOK AT THE VARIOUS REGIONS, IT LOOKS LIKE A MASSIVE GLOBAL SELLOFF. JAPAN IS PARTICULARLY HURT BECAUSE THEY ARE ALSO IN THIS VERY DELICATE SITUATION. JUST THE POLICY THEY JUST ANNOUNCED. THAT TAKE LONGER TO STABILIZE OTHER PARTS OF THE WORLD? >> ETIQUETTE IS A GREAT QUESTION.
ESPECIALLY SINCE A LOT OF REGIONS ARE ESPECIALLY EXPOSED TO THE CYCLICALITY OF THE ECONOMICS AND I THINK YOU SEEING THAT RIGHT NOW. IN THE CASE OF JAPAN ETHIC A LOT OF THAT WAS ALSO EXACERBATED BY THIS SELF FILLING PROPHECY. YOU'VE BEEN HAD A LOT OF RETAIL SELLING, YOU HAD A LOT OF MARGIN POSITIONS BEING THREATENS. THAT CARRY TRADE WITH THE YEN AND THAT IS UNWINDING.
THE BONGOS ARE PLUNGING. THAT IS THREATENING THE PROFITS OF THE BANKS. IN JAPAN YOU HAVE AN ESPECIALLY DELICATE PICTURE HERE. THE RELATIVE LOT. I THINK A LOT OF PLACES WILL END UP BEING EVEN MORE EXPOSED TO POTENTIAL U.S. DOWNTURN. A LOT OF BIG U.S.
TAX -- TECH STOCKS I THINK. LAGGING REGIONS OR SECTORS COULD PLAY CATCH UP. IS THAT NOW DOWN FOR DELAY OR IS THAT EXHILARATED BECAUSE PRESSURE IS ELSEWHERE? >> I THINK IT REALLY GETS EXHILARATED RIGHT NOW BECAUSE SOME OF THESE LAGGARDS TEND TO ALSO BE IN THE DEFENSIVE SECTORS AND REGIONS. AMONG REGIONS WE HAVE BEEN WAY POSITIVE ON FOR EXAMPLE, THE U.K.
HAS BEEN A LAGGARD AND IS ONE OF THESE WERE DEFENSIVE, LESS VOLATILE REGIONAL MARKETS. ALSO HAVING SOME SECTORS WILL RESENTED ENERGY THAT TEND TO BE HIGH DIVIDEND PAYING. AT THE MOMENT, THESE LAGGARDS THAT OFFER DEFENSIVE MARKET QUALITIES AND OFFER SOME ATTRACTIVE DIVIDENDS ARE LIKELY TO BE A PERFORMING AT THIS MOMENT OF JUST SIMPLY RESETTING THE BASE AND EQUITY MARKETS. QUICK SCAN I ALSO ASK ABOUT
GEOPOLITICS? I WAS JUST AT THE PRESS CONFERENCE FROM -- FOR THE BANK OF ENGLAND GOVERNOR ON THURSDAY AND HE SEEMED TO SUGGEST THAT TAILWIND FROM HIGHER OIL PRICES FROM GEOPOLITICS THERE WERE VERY UNCERTAIN HAS BEEN TAKING OFF. IS THIS NOW BACK WITH A VENGEANCE? IS IT PART OF THE NARRATIVE THAT WE ARE SEEING A GLOBAL MARKET WRAPPED? PEOPLE ALSO FOCUS ON GEOPOLITICS. >> A THINK IT IS ONE OF THESE PEOPLE SUMMER STORMS WHERE EVERYTHING IS GATHERING AT THE SAME TIME FOR THE MOMENT. CERTAINLY GIBLET RISKS ARE LIKELY TO GET OIL PRICES RATHER SUPPORTED ESPECIALLY BECAUSE RIGHT NOW IT IS THE MIDDLE EAST THAT IS IN THE EYE OF THE STORM. I WOULD EXPECT SOME OF THESE
TAILWINDS TO COME UP AGAIN AS YOU SAY, THEY ARE LIKELY TO BE BACK WITH A VENGEANCE HERE. AND GIVING SUPPORT TO THE SECTOR AS WELL AS TO REGIONS EXPOSED TO THEM. >> IF YOU LOOK AT CRYPTO, WE'RE LOOKING AT NASDAQ 100 FUTURES TUMBLING AS WELL. TECH SELLOFF SEEMS TO DEEPEN BUT WHAT IS THE ROLE HERE IN CRYPTO'S? >> IT IS KINDA FUNNY. I THINK TODAY IS A REMINDER THAT CRICKET CRYPTO UNIT FOR NOW IS STILL PRETTY TETHERED TO GLOBAL RISK SENTIMENT. YOU SEE GOLD RAILING TODAY.
I THINK IT KIND OF SPEAKS TO THIS RELATIONSHIP THAT WE HAVE SEEN IN THE PAST YEAR WHERE IT IS PRETTY RELATED TO THE RISKIEST ASSET. I THINK IT IS A REMINDER OF THAT. QUICK THANK YOU SO MUCH. COMING, BERKSHIRE HATHAWAY/IS IT STICK AN APPLE AS TECH STOCKS TAKE A BEATING. WILL HAVE THAT NEXT. THIS IS BLOOMBERG. >> PRESSURE HATHAWAY HAS SLASHED ITS TAKEN APPLE BY ALMOST HALF. IT COMES AS PART OF A NEST OF SECOND QUARTER WARREN BUFFETT'S CASHED OUT TO A RECORD $277 BILLION.
LET'S GET MORE FROM BLOOMBERG DAYBREAK EUROPE ANCHOR TOM MCKENZIE. IF YOU PERCENT IS A VICTIM. THEY WERE BETTING DOWN THE HATCHES, TRYING TO BE SURE INVESTORS. WHAT IS THAT SIGNAL? QUESTION IS A BIG DEAL. THEY SO HAVE A STAKE OF AROUND $84 BILLION.
THEY HAD A STAKE OF AROUND 140. IT IS STILL BURGER HATHAWAY'S BIGGEST SINGLE STOCK HOLDING. ALL THE PEOPLE ARE LOOKING FEARED JUST AROUND WHAT THE MARKETS ARE DOING. FOR SOME, THIS WILL BE HE IS SEEING CONCERN AROUND THE U.S. ECONOMY.
OTHER PEOPLE WOULD SAY THIS IS ABOUT RISK MANAGEMENT GIVEN THE SIZE OF THIS WHOLE THING IN THE BURGER HATHAWAY PORTFOLIO. THIS IS JUST A SENSIBLE READJUSTMENT OR IT IS NOT TO DO WITH TAX. HE HAS PREVIOUS IS SPOKEN VERY HIGHLY OF THIS CAN BECOME A LOOKING FOR THEM TO COME THROUGH WITH THIS UPGRADE. WE HAVE SEEN THAT WITH THE EARNINGS CALL.
THINK THERE WILL BE AN IPHONE UPGRADE ON THE BACK OF THIS. IT HAS LEFT PEOPLE GUESSING AND IT FIT INTO THE FEAR. QUESTION FEEL LIKE THE PERFECT STORM. TIMING IS EVERYTHING SO YOU HAVE THE FAN, YOU HAVE CONCERNS ABOUT A RECESSION, YOU HAVE GEOPOLITICS.
AND THEN WE LIKELY TO HEAR FROM WARREN BUFFETT? THE TIMING IS ABSOLUTELY CRUCIAL. IT COULDN'T HAVE LANDED ON WORST POSSIBLE TIME. WE ARE SEEING WHAT IS HAPPENING NOW.
WE ARE CLOSER TO THAT CIRCUIT BREAKER. APPLE WAS DOWN ABOUT 6%. NVIDIA IS TAKING A BIG HIT AS WELL. WILL WE HEAR FROM WARREN BUFFETT? HE DOESN'T USUALLY TALK ABOUT THESE PARTICULAR POSITIONS UNTIL IT COMES TO THEIR CALL, THEIR MEETINGS. IT SEEMS UNLIKELY. THE STOCK IS UP 900%. FOR SOME, IF YOU COMBINE IT
WITH THE MOVES TO PRODUCE THE POSITION AROUND BACK OF AMERICA LAST WEEK, NOW THEY HAVE A SIZABLE CUT IN APPLE AS IT HAS FIT INTO THIS. QUICK THINK YOU SO MUCH. TOM MACKENZIE THERE ON BLOOMBERG DAYBREAK EUROPE. THE NEXT, WHEN YOU LOOK AT THE TECH STOCKS, I DON'T KNOW HOW YOU PLAY THEM GIVEN THE HUGE THING WE HAVE SEEN IS THIS A GOOD ENTRY POINT? DO YOU JUST WAIT AND SEE? >> WE ARE NOT IN A RUSH TO GET IN THERE BUT THE GENERAL STORY ABOUT THE TECHNOLOGICAL PROGRESS WE ARE SEEING -- I REALLY MEAN THE DIFFERENT WAVES WE HAVE SEEN AFTER TECHNOLOGY, AFTER DIGITALIZATION AND THEN LEARNING MODELS AND NOW THE APPLICATION OF ARTIFICIAL INTELLIGENCE TO SO MANY SECTORS. ESPECIALLY IN SERVICES. I THINK OVERALL PEOPLE WILL LOOK BACK TO THAT EPISODE AS AN INTERESTING WANT TO GET IN BUT IN NO RUSH TO TAKE ACTION HERE AND NOW BECAUSE OF THE BROADER CONTEXT. WE CAN STILL HAVE A COUPLE MORE
WEEKS OF VOLATILITY HERE WHERE THE TECHNOLOGY SECTOR AND OTHER CYCLICAL SECTORS JUST SIMPLY GET REPRICED AS PEOPLE ARE TRYING TO GAUGE THE RISKS OF RECESSION. THE NEXT MOVES ON THE GEOPOLITICAL SCENE AS WELL. NO RUSH HERE. BUT IN GENERAL, STILL A CONVICTION THAT TECHNOLOGY IS PART OF OUR FUTURE AND VERY BROTHER APPLIED IN SO MANY SECTORS. >> THERE IS THIS PRETTIEST WERE NEVER STORY THAT IS DOING QUICK WELL ON THE BLOOMBERG, SAYING THAT TRADERS ARE PRICING IN A 60% CHANCE OF A 25 BASIS POINT FED RATE CUT A WEEK. THIS WOULD HAVE BEEN AN EMERGENCY RAKE APPEARED IS THAT LIKELY WHAT WOULD SIGNAL SET MARKET? WHAT THINK THAT WOULD SEND A BAD SIGNAL FOR MARKETS. IF THE FEDERAL RESERVE WAS TO DO AND INTO MEETING RATE CUT, IT WOULD SIGNAL A SENSE OF URGENCY THAT WOULD CONTINUE TO JUST FEED THAT NEGATIVE SENTIMENT IN THE WALL OF WORRIES. I THINK RIGHT NOW IT MAY BE
MORE PLAUSIBLE TO EXPECT THAT AT THE SEPTEMBER MEETING THERE WOULD BE A LARGER THAN PREVIOUSLY EXPECTED RATE CUT, 50 BASIS POINTS. FOR EXAMPLE. THAT IS PROBABLY WHERE WE WOULD BE LEANING RATHER THAN TOWARD AN INTERMEDIATE ONE. QUICK WHAT HAPPENS IF THERE ARE A 50 BASIS POINT CUT IN SEPTEMBER? WHAT HAPPENS AFTER THAT? WE ALSO HAVE JACKSON HOLE.
THAT WILL CEMENT THEIR IDEAS IN THEIR THINKING ON THIS MARKET ROUTE. QUESTION WAS SPEAKING, I THINK THE FED CONTINUES TO BE DATA-DRIVEN AND THE RENT -- THE LABOR MARKET REPORT THIS MONTH HAS BEEN SUBJECT TO NOISE. WE KNOW THEY ARE SEEING WILL PATTERNS BUT THERE HAVE ALSO BEEN WEATHER-RELATED INFLUENCE ON THE LIVER MARKET REPORTS SO I COULD VERY WELL ENVISAGE THAT THE NEXT LABOR MARKET REPORT AXLEY TAKES AWAY SOME OF THAT NOISE AND HELPS CLARIFY THE PICTURE. I THINK IT WOULD PROBABLY POINT TOWARD MORE RATE CUTS TO COME EVEN IF THE FED WAS TO DELIVER A 50 BASIS POINT CUT INSTEAD OF THE PREVIOUSLY ANTICIPATED 25 IN SEPTEMBER. THERE IS ANOTHER WANT TO
INSPECT IN DECEMBER AND POTENTIALLY MORE IN 2025. FOR BONDS I THINK THE GENERAL SENSE IS THAT SHORT-TERM INTEREST RATES CONTINUE TO FALL AND CONTINUE TO FEED THE NORMALIZATION OF YIELD CURVES IN THE U.S.. QUICK THINKING SO MUCH FOR JOINING US. COMING UP, WE WILL TALK GEOPOLITICS AS WELL. BRACING FOR RETALIATORY ATTACKS ON THE ASSASSINATION OF HAS BLOOD AND HAMAS LEADERS. WE'LL HAVE THE LATEST. THIS IS BLOOMBERG.
>> ISRAEL IS BRACING FOR AN ATTACK FOR ASSESSING HEZBOLLAH AND HAMAS LEADERS AS THE U.S. PERSON FOR A CEASE-FIRE DEAL. IF YOU LOOK AT THE DEVELOPMENTS OVER THE WEEKEND, THEY HAVE DEFINITELY ESCALATED. QUICKLY ATTACKS DON'T SEEM TO BE EMINENT. HE TOLD HIM THAT THEY WERE EXPECTING IRAN AND PROXIES TO WASH A DIRECT ATTACK ON ISRAEL WITHIN THE NEXT ONE TO FOUR HOURS. THIS AS THE U.S. CONTINUES TO DEPLOY. LOOKING TO SHORT MORE REGIONAL AND INTERNATIONAL SUPPORT.
SIMILAR TO WHAT HAPPENED BACK ON APRIL THE 15TH. THIS IS FROM IRAN'S PART. THAT AIR DEFENSE SYSTEM IN PLACE. THEY'RE LOOKING TO REPLICATE SUMP IS SIMILAR.
I RAN IS NOT LOOKING TO ESCALATE TENSIONS IN THE REGION. THE PERSON TO QUESTION HERE IS IRAN. INCLUDING THE LIKES OF U.K., U.S., AUSTRALIA, CANADA, SAUDI ARABIA, TURKEY AS WELL. MANY AIRLINES HAVE ALSO SUSPENDED FLIGHTS INTO AN OUTSIDE OF BEER IN TEL AVIV.
THAT IS COMING UP NEXT AND THIS IS BLOOMBERG. >> LOOKING TO THE POST. THESE ARE YOUR TOP STORIES. THE GLOBAL MARKET SOFTY PINS INTO EUROPEAN TRADING AFTER JAPAN'S NIKKEI CRASHES MORE THAN 12%. TRADERS INCREASING BEST ON THE EFFECT, MAKING EMERGENCY RATE CUTS. THE NASDAQ FUTURES TUMBLED AS
INVESTORS PULL FURTHER WAY FROM THE AI RALLY. THEY ALSO CUT A STAKE IN APPLE BIOMES 50% OF THE SECOND QUARTER AND ISRAEL IS ON HIGH ALERT. COVER IS BRACING FOR RETALIATION FROM HEZBOLLAH AND IRAN. THE ATTACK TO COME WITHIN
HOURS. LET'S HAVE A LOOK AT WHAT SOME OF THE BIG TECH COMPANIES ARE DOING. THIS IS ONE OF THE BIGGEST STORIES OF THE DAY. JUST PUT A LITTLE CONTEST INTO ALL OF THIS. THAT SENT A BIT OF PANIC.
THEN THIS WAS EXACERBATED. PULLING AWAY BY 50% FROM HIS APPLE INVESTMENT. WHAT THAT MEANS IS THEY ARE ALSO CONCERNED ABOUT AI VALUATIONS AND SOME OF THESE BIG TAX. THIS GLOBAL STOCK SELLOFF. MARCUS AND TO MESS THE CENTRAL BANK WILL CUT RATES. YOU CAN SEE THAT IS PUTTING A REALLY BIG PRESSURE ON MICROSOFT. THIS IS FREE MARKETS, DOWN
3.5%, MEDICAMENT TESLA DOWN 4.8 AND 5%. IF YOU LOOK AT NVIDIA, THAT IS PREMARKET, DONE AS MUCH AS 6%. THAT IS GEOPOLITICS. WE ARE WORRIED ABOUT
RETALIATION. IT IS WHAT WE ARE SEEING IN AI STOCKS. EARNINGS IN GENERAL, WE WERE LOOKING AT SOME DATA WITH THE TEAM. COMPANY'S HAVE REPORTED THEY'RE JUST UNABLE TO COMES TO REVENUE. LET'S GET MORE ON ALL OF THIS WITH MARKET REP. SO HAPPY TO HAVE YOU ON THE SHOW. THIS IS LOOKING LIKE GLOBAL
STOCK MARKET SELLOFF. I GUESS THERE IS A REACTION FUNCTION WITH BONDS BEHAVING. ONE MARKET POSITIVE ON A DATE LIKE TODAY. THAT IS THE BIG CHANGE FROM A YEAR AGO.
BONDS ARE DOING WITH A MENTOR. THEY ALSO UNDERWATER. BUT YES, AND THESE BONDS AND STOCKS ARE FAR. THAT CERTAIN HELPS LOWER THE VOLATILITY. >> IS THIS A HOW COMMISSION OR AT LEAST A CORRECTION? IT IS LIKE A PERFECT STORM BECAUSE WARREN BUFFETT SOLD OFF ESTATE? THERE ARE WORRIES ABOUT THE U.S. ECONOMY, THERE ARE WORRIES ABOUT GEOPOLITICS AND EARNINGS HAVEN'T BEEN THAT RATE.
>> ANYONE WHO IS TRADING IN A STOCK MARKET TODAY DOES NOT THINK THIS IS HEALTHY. IT COULD TURN OUT TO BE CALLED HEALTHY. WE HAVE JUST SEEN THE MOST VIOLENT JAPANESE STOCK MARKET SELLOFF EVER IF YOU PUT ON THE PLACE OF LOSSES OVER THREE DAYS.
I WAS TRADING AT LEHMAN BROTHERS INTO THE FINANCIAL CRISIS. I BELIEVE THAT IS JAPAN'S BIGGEST EQUITY BROKER DURING THE TSUNAMI. I'VE NEVER SEEN JAPANESE STOCK MARKET LIKE I HAVE TODAY. SO THIS IS NOT HEALTHY AT ALL. THE MOVES WE ARE SEEING WITH THEIR OVER THE STRAWBERRY. THEY'RE CAUSING A LOT OF PAIN.
IT IS ONE OF THOSE VERY RARE DAYS WHERE I AM ABSOLUTELY DELIGHTED THAT I HAVE NO ABILITY TO TRADE ANYMORE OR HAVE ANY RISK BECAUSE THIS IS A VERY PAINFUL MARKET. EVEN IF YOU ARE ON THE RIGHT SIDE OF IT, IT IS EXTREMELY STRESSFUL IN TERMS OF PORT FOR THE MANAGEMENT, ENERGY STOCKS, MAKING SURE THE WINNERS YOU DO HAVE DON'T TURN INTO LOSSES AND THAT COMBINATION. THEY ARE WORKING IN DIFFERENT FROM ENTOM'S, DIFFERENT PACE, DIFFERENT SPEEDS AND HOW YOU MANAGE THOSE LOSERS? IT IS EXTREMELY STRESSFUL. ANY NEW STRAIGHTER TODAY DOES NOT FIND THIS HEALTHY. WESLEY LOOK AT THAT
EXPECTATIONS, I'M PAST, THERE IS A 60% CHANCE OF IT BEING QUESTIONED BY TRADERS. THE FED CUSTODY FIVE BASIS POINTS. THIS WOULD BE AN EMERGENCY RATE CUT. WITH THAT SO EVEN MORE PANIC MARK >> IT PROBABLY WOULD.
BUT I THINK WE ARE SEEING PANIC ALREADY SO I THINK I'M GOING TO CHANGE MY ANSWER. WE HAVE THE PANIC. THIS WOULD BE THE FED REACTED TO THE PANIC. THE FEDS ALWAYS GOT HER BACK, LET'S POP UP STOCKS AGAIN.
LET'S BUY OVER THE COME WAS BY THE DIP. I THINK WE WILL GET TOO MUCH OF AN EXTRA PANIC IN THE FED JUST CUT. I DON'T SEE THE FINE COMING THIS WEEK BECAUSE THE ECONOMY IN THE U.S. IS SLOWING DOWN. THERE HAVE BEEN GIVEN A RECENTLY. IT DIDN'T LOOK LIKE IT DID IS POINTED TO AN IMMINENT RECESSION OR AN IMMINENT HARD LANDING. THERE WAS CERTAINLY A SLOWDOWN BUT A SLOWDOWN FROM PRETTY GOOD LEVELS. THERE IS A RISK THAT THE
FINANCIAL MARKETS BECOME A KEY FOR THE MUSCLES OF THE ECONOMY AND OUR COLLEAGUES HAVE BEEN SEEING AN EXCELLENT SCOPE ON THIS. TO STOCK MARKET BECOMING A REAL DRAG ON THE ECONOMY BUT THAT IS NOT QUIT OTHELLO JUST YET. THE RECORDS APPENDIX SUSTAINING FOR A LITTLE BIT LONGER. MANY PARTS OF THE ECONOMY TO WANT TO MARKET AT EVERY BASIS.
WE ARE RIGHT IN THE MIDDLE OF IT SO WE SEE EVERYTHING A MOVE AND HE SEEMS REALLY PANICKY EVERY MOMENT BUT FOR LASTS OF PEOPLE WE WILL NOT SEE HOW BAD THE LOSSES ARE. THAT IS ME STRESSING THE REAL ECONOMIC IMPACT. >> TAKE SO MUCH MARK. THERE WAS A LIE PHYSICALLY BETTER THERE. MARK IS NOT HIDING UNDER HIS DESPERATE HE IS LEADING A BIG TEAM, TRY TO FIGURE OUT WHAT'S GOING ON IN THE MARKETS. AGAINST ALL THE VOLATILITY, THE
MOST VIABLE COMPANY HAS SET ITS SIGHTS ON INVESTING BIG IN THE TRANSITION. THEY HAVE A CONTROLLING STAKE. THEY MEASURED THE ASSETS OF THE FOUNDATION OR THE WELLS LARGEST PHILANTHROPIC ENTERPRISE. THE CUP HE HAD ALMOST 150 BILLION EUROS OF ASSETS UNDER MANAGEMENT.
QUICK THANK YOU SO MUCH FOR JOINING US. QUICK WHAT A DAY TO BE OFF. >> FOR WHAT SOME TYPE YOUR AWAY FROM THE MARKET VOLATILITY, THERE'S ALSO A COUPLE OF THINGS WHEN COMES TO U.S.
POLITICS, WHEN IT COMES TO ELECTIONS. HOW DO YOU THINK THAT CHANGES THE LANDSCAPE FOR HEALTH CARE? >> I THINK THAT THE SECULAR TAILWINDS FOR HEALTH CARE SHOULD HOLD US IN GOOD STEAD IN THE MOST POWERFUL FORCES OF INNOVATION PLAY INTO THE SECTOR NOW. YOU HAVE HEARD ME SAY THIS BEFORE, WE ARE IN A HOLDING YEAR OF INNOVATION. THERE WOULD BE IN THE MIDDLE OF 22 BUT WE SAID THE I YET I MARKETS WILL REOPEN. THE COVERS WILL BE ABLE TO GO
PUBLIC AGAIN. THIS IS WHAT HAPPENED. AT THE END OF THE DAY, THE INNOVATION IS SO POWERFUL AND WE ARE SEEING MEDICAL NEEDS IN A WAY THEY HAVEN'T HISTORIC THE. THAT HAS WILL HE PUT A FLOOR ON VALUATION AND WHAT WE'VE SEEN OVER THE LAST SIX MONTHS IS MANAGEMENT TEAMS AND COMPANIES WITH LATE STAGE QUALITY DATA ARE GOING PUBLIC, THEY ARE RAISING FUNDS SO ACTUALLY, YES OF COURSE, POLITICS HAS AN IMPACT ON PRICING BUT AT THE END OF THE DAY, THE FUNDAMENTALS, AGING POPULATION, GROWING MIDDLE CLASSES IN EMERGING MARKETS, UNPARALLELED LEVELS OF INNOVATION SHOULD HOLD THE SECTOR IN GOOD STEAD. QUICK WHAT HE WAS EXCITED ABOUT?
WEST BEEN A LOT OF TALK ABOUT PENSION. >> PROVISION IS GOOGLE. THERE IS ALMOST AN ECONOMIC AND A MORAL ARGUMENT FOR PREVENTION. THE ECONOMIC IS IT JUST COSTS MUCH LESS TO PREVENT AND THE OTHER ONE IS IF YOU CAN TREAT PEOPLE EARLIER THAT YOU AVOID THE ACUTE ISSUES THAT ARISE AND INDEED YOU SAVE LIVES. THE IMPERATIVE IS HIGHER THAN EVER THEM BEFORE BECAUSE WHAT IS AVAILABLE TO US.
IF YOU WERE DIAGNOSTICS ARE FOR TODAY, HE LOOK AT THE THERAPEUTIC DIMENSIONS AND OPTIONS WE DID NOT HAVE 10 YEARS AGO. IT MEANS THAT MOVING AND HAVING A PARADIGM SHIFT FROM A SYSTEM THAT IS GEARED TOWARD TREATMENT FOR PREVENTION IS GOING TO BE IMPORTANT AND FRANKLY I DON'T KNOW HOW WE ARE GOING TO SUSTAIN THE HEALTH CARE BUDGETS WE HAVE A MORE PREVENTABLE WAY. QUICK THE FACT THAT IT IS UP FRONT QUICK COSTLY. IS THERE A COMPANY THAT WILL LEAD THE WAY IS SHOWING THE RIGHT MODEL FOR IT? WHAT IS OURS FRIENDLY STRETCHED BECAUSE OF THE DEAF.
CUSTOMERS INTERESTING EXAMPLES I'VE OF SINA PREVENTION ARE IN THE SMALL ADVANCED COUNTRIES. SINGAPORE IS DONE A FANTASTIC JOB AND THE IMRIS WERE THERE NOT LONG AGO. FASCINATED BY THE AMOUNT OF INVESTMENT THEY ARE PUTTING UPFRONT IN ORDER TO DIAGNOSE AND TREAT EARLIER AND THEREFORE AVOID ALL OF THE COSTS BOTH FINANCIAL THEY COME FROM IGNORING PREVENTION. WHAT HAPPENS ON YOUR TAKE FROM THE U.K. AGAIN? I THINK WE'RE COMING UP TO EXACTLY THE ONE MONTH ANNIVERSARY.
HOW DO THEY RECALIBRATE? WHAT'S AT THINK FIRST OF ALL, BROTHER SPEAKING, THIS GOVERNMENT -- THE CURRENT GOVERNMENT IS VERY FOCUSED ON THE LIFE SCIENCES WHICH IS TERRIFIC. THEY HAVE A VERY STRONG GROWTH AGENDA AS YOU WILL NOW AND YOU'RE NOT GOING TO GROW THE U.K. ECONOMY TO ITS FULL POTENTIAL WITHOUT GROWING LIFE-SCIENCES.
THE SECOND LARGEST INDUSTRY IN THE COUNTRY. THERE HAS TO BE A VERY STRONG RECOGNITION BUT YOUR ABSOLUTE RIGHT. THE INDUSTRY AND THE NHS ARE INTERTWINED. IF YOU DON'T DEAL WITH ALL OF THE ISSUES, THE U.K. WILL LOSE SOME OF ITS LEADERSHIP POSITIONS. I WILL GIVE YOU ONE KEY EXAMPLE OF THE U.K. IS ONE OF THE LEADING
DESTINATIONS FOR PARTICLE TRIALS. WE WANT TO DO CLINICAL TRIALS AS PART OF A FORMER COMPANY. U.K. IS CONSISTENT BEEN A LEADER IN EUROPE. IT IS STILL A LEADER. BUT THAT LEADERSHIP POSITION HAS ERODED. WHY? BECAUSE THE NHS IS IN A SITUATION -- AN INABILITY TO WORK WITHIN AN INDUSTRY. ABSENTLY DEALING WITH THE NHS,
PARTICULARLY THE WAITING LIST, FIRST AND FOREMOST. TO GET TO THAT RESET. AND THEN TAKING FROM THERE SO I AM HOPEFUL THEY HAVE BEEN VERY CLEAR ABOUT THE NEED TO REFORM AND THE NEED TO DEAL WITH ALL THIS. EASIER SAID THAN DONE. THE ISSUES ARE ENORMOUS.
>> I HAVE A COUPLE OF ISSUES. MAYBE WE START WITH AI COMES IS THAT CHANGE CLINICAL TRIALS? THE WAY WE DEVELOP AND TREAT AND PAY AT THE END OF THE DAY THIS QUESTION MARK >> TO HOUSE HAS A BIG ROLE TO PLAY IN HEALTH CARE IN MULTIPLE WAYS. IT IS ALL VERY INTERESTING SPACE. THERE WILL BE EFFICIENCIES FROM AI. MUCH OF THE HEALTH-CARE
INDUSTRY -- IT IS ANALOG, IT IS STAGGERING. FORGET AI, ANY BASIC TECHNOLOGY ADOPTION. WHAT'S IT IS TRULY ANALOG. IT IS JUST SUCH A LONG WAY TO
GO. AI WOULD BE ICING ON THE CAKE. WHERE AI IS ALSO INTERESTING IS NOT JUST MAKING OUR SYSTEMS -- SYSTEMS MORE PRODUCTIVE BUT THEY HAVE A PROFOUND IMPACT ON DISCOVERY AND INDEED DIAGNOSIS. WE ARE TALKING ABOUT BUDGETS AND STAFF SHORTAGES ITS ERA, THE ABILITY TO USE AI TO ENHANCE PHYSICIANS CAPABILITY TO DIAGNOSE ENTRAILS PATIENTS IS GOING TO BE A VERY LARGE TREND. AND SAY COMPANY'S BUT ALSO CHARITIES ARE OF A ABOUT TALKING ABOUT INVESTMENT. WE ARE VERY BULLISH, WE ARE VERY FOCUSED. I WAS READING THE GIC FROM
SINGAPORE. THE REPORT THERE. I READ THE CEOS SHAREHOLDER LETTER AND HE EXPRESSED ARE SENTIMENTS WHICH ARE THE DIRECTION OF TRAVEL IS A QUESTION ABOUT. THERE WILL BE BUMPS ON THE ROAD. THERE WILL BE GIVES AND TAKES
BUT WE'LL KNOW WHERE WE ARE HEADED. IF YOU ARE A LONG-TERM INVESTOR, IT IS A VERY INTERESTING PLACE TO BE. WE ARE ABSENTLY FULL ON. WE WILL TAKE GREEN INVESTING FROM ABOUT 2% OF OUR PORTFOLIO, 10 BY THE END OF THE DECADE.
WE JUST ANNOUNCED FEW WEEKS AGO, A VERY INVESTMENT IN THE U.K.. THEY DO RECYCLING FOR END-OF-LIFE CYCLE TIRES. IF YOU ARE ABLE TO STAY THE COURSE LONG-TERM BUT IMPORTANT, INVEST IN THESE COMPANIES AS THEY SCALE, THAT SCALING IS OFTEN WHAT TAKES A LONG TIME THEN I THINK THE AND REWARDS WILL BE THERE AND WE ARE FIRM BELIEVERS IN THAT.
BOTH ON THE BIO INDUSTRIAL SIDE AND ON THE PLASTIC READ TEXT SIDE. >> SO INTERESTING, THINK YOU SO MUCH FOR JOINING US. THERE WAS THE CHIEF EXECUTIVE OF NOAH HOLDINGS AND MAYBE WE SHOULD CATCH UP TO SEE HOW THAT INVESTMENT IS GOING. >> WITH GREAT PLEASURE. ANYTIME FRANCINE. THANK YOU FOR HAVING ME. QUICKLY YOU KEEP PRIME MINISTER CALLS AN EMERGENCY SECRET MEETING AFTER CLASS ROCK SEVERAL PARTS OF THE U.K.. WE'LL HAVE THE DETAILS NEXT.
THIS IS BLOOMBERG. >> WELCOME BACK EVERYONE. THEY'RE CALLED AN EMERGENCY SECURITY MEETING. VIOLENCE RUPTURED IN CITIES OVER THE WEEKEND IN THE FIRST MAJOR TEST FOR THE NEW LIVER GOVERNMENT.
THIS HAS BEEN FILLED BY AN -- A CAMPAIGN THAT LEFT THREE GIRLS THERE. BY SIGHT OF THE CONDEMNED THE FAR-RIGHT THUGGERY WE'VE SEEN THIS WEEKEND. WE HAD NO DOUBT THOSE THAT HAVE PARTICIPANT IN THIS VIOLENCE WILL FACE THE FULL FORCE OF THE LAW. I GUARANTEE YOU WILL REGRET TAKING PART IN THIS DISORDER WHETHER DIRECTLY OR THOSE WHIPPING OF THIS ACTION ONLINE AND THEN RUNNING AWAY THEMSELVES. CHRYSLER SPRING IN ROSSLYN MADISON. WHAT HAS SPARKED THE VIOLENCE? >> THE FED 20 FACTORS AND NEW FACTORS THAT ARE VIOLENCE BUT BECAUSE BEYOND WHAT WE SAW WE COULD GO WITH THE TERRIBLE DEATHS THOSE CHILDREN HAD THERE. THE U.K.
HAS GRAPPLED WITH ISSUES LIKE THIS FOR MANY YEARS. AND HOW TO MANAGE THOSE IN A SOCIETY THAT IS COMPLEX AND FAST-MOVING. JUST LIKE OTHER COUNTRIES, IS BEEN AN ISSUE HERE. BREXIT WAS BUILT AS AN EFFORT TO PUT THE MIGRATION DEBATE TO BED.
WE'VE ONLY SEEN IT COME IN MORE INTO THE PUBLIC DISCOURSE IN RECENT YEARS. WE HAVE SEEN SOME ATTACKS ON POLITICIANS. WE HAVE THIS AND WE'VE SEEN THAT SORT OF COLLIDING INTO THE EVENTS OF SOUTHPORT. WE'VE SEEN DISINFORMATION BEING PROPAGATED AS YOU SAY. PART OF THAT MIGHT ALSO BE THESE RIGHT-WING GROUPS USING DISINFORMATION TO TRY TO PRESSURE THE NEW GOVERNMENT.
WE JUST SAW WE WERE COMING AFTER MANY YEARS OF TORY RULES. >> HAS THE GOVERNMENT RESPONDED IN THE U.K.? THIS IS WHERE HE WAS ALSO MANAGING THAT PROCESS.
WITH AUTHORIZED DESPERATE -- SPREAD ACROSS LONDON IN THE SHOOTING OF A BLACK MAN THAT CAN 2011. HE'S USING THAT PLAYBOOK. GET THESE PEOPLE ARE BEEN ARRESTED IN FRONT OF COURSE, TRYING TO CONTAIN IT BY PUTTING ILLEGAL NET AROUND PEOPLE, GETTING MORE POLICE OUT UNDER THE STREETS BECAUSE THESE GROUPS ARE SAYING THEY PLAY MORE INCIDENTS, MORE MOMENTS. THEY ARE TRYING TO KEEP THINGS
GOING BUT HE THAT, EVEN IF YOU GET 300 PEOPLE IN ONE PLACE AND THEY STOPPED COMING OUT, IT IS OBVIOUSLY STILL BUBBLING AWAY IN SOCIETY AND THAT IS MORE COMPLEX THINGS TO TACKLE. HOW DO YOU DEAL WITH THESE THINGS STRUCTURALLY IN SOCIETY? WHAT'S ON THE USI, WHEN WE HAVE, HARRIS PICKING HER VP RUNNING MATE? WHAT'S IMMINENTLY WE HOPE BECAUSE SHE SUPPOSED TO BE ON THE RUN THIS WEEK WITH HER BUYS PRESIDENTIAL PICK CAMPAIGNING AND THEY SAID THEY WANTED THIS KNITTED ALSO BY AUGUST 7. WE KNOW THAT SHE WAS MEETING SOME OF THE MEMBERS OF THE SHORT LIST YESTERDAY. THIS INCLUDES JOSH SHAPIRO FROM PENNSYLVANIA AND MARTELLY FROM ARIZONA. THEY ARE WHITE, THEY ARE MALE AND KIND OF CENTERS IN THE DEMOCRAT CAMP AND THEY SAY IT IS A BALANCE FOR HER BECAUSE SOME OF THE ATTACKS THAT ARE COMING ON HER ALREADY IS THAT THERE SAYING SHE IS THE CALIFORNIA REAL, VERY RADICAL IN THE DEMOCRAT PARTY.
WHETHER THAT IS LEGITIMATE OR NOT. THAT IS THE ATTACK LINE THAT IS COMING. THIS COULD BOUNCE HER OUT. PARTICULARLY IN SWING STATES. SHE HAS TO BE ON THE ROAD WITH THIS VICE PRESIDENTIAL PICK AND THEY HAVE TO DO PROPER CAMPAIGNING AND THAT WILL TESTER A BIT. >> THINK YOU SO MUCH FOR THE UPDATE IN THE U.K. AND THE U.S..
COMING UP, YOUR MOST VIABLE COMPANIES, MAJOR FIRMS REPORTING EARNINGS THIS WEEK. HAVE A FULL ROUND UP OF NOT ONLY THE ROUND BY EARNINGS. THIS IS BLOOMBERG. >> EUROPE'S MOST VIABLE COMPANY HAVE THE REPORTING EARNINGS THIS WEEK. WE HAVE THE DIRECTOR OF RESEARCH ABENBERG INTELLIGENCE JOINING US NOW. THANK YOU FOR JOINING US. WHERE DO EARNINGS PLATES OF
THIS? >> WHILE I THINK THAT THERE IS REASON TO BE LOOKING AHEAD IN -- AND THIS TOO SHALL PASS FOR LOTS OF THINGS, EARNINGS ARE NOT NECESSARILY ONE OF THOSE SUPPORTIVE FACTORS. WE HAVE SEEN BEADS OVER AND OUTPACE BUT GROWTH EXPECTATIONS FOR THE SECOND HALF HAVE COME DOWN A COUPLE OF PERCENTAGE POINTS. WE HAVE SEEN SOME NEGATIVE REVISION SUPPORT NUMBERS AS WE LOOK UP TO 20 15. RINGS. THEY ARE OK BUT THEY'RE NOT GREAT. WITH LUCK YOU TELL US ABOUT THE EARNINGS YOU'RE WATCHING THIS WEEK THEY COULD GIVE US AN INDICATION WHERE THE MARKETS ARE HEADED? WHY SETTING HERE TO HE THINGS LOOK UP YOUR WONDERS YOU MENTIONED EUROPE'S LARGEST COMPANY. YOU ALSO HAVE ELI LILY IN THE
U.S.. IT WILL BE REALLY INTERESTING SEE NOT ONLY WHETHER SALES ARE GOING BUT HOW THEIR SUPPLY CONSTRAINS ARE WHICH HAS BEEN HOLDING THE MARKET BACK VERSE MUCH LARGER DEMAND. THE OTHER AREA TO WATCH IS THE U.S. CONSUMER BECAUSE WE START TO SEE SOME OF THE RETAILERS REPORTING. WE HAVE COSCO. YOU ALSO HAVE DISNEY REPORTS AND THOSE TOUCHSTONES IN TERMS OF U.S. CONSUMER SENTIMENT AND HOW THEY
ARE FEELING AND WITH THE CEOS ARE SAYING I THINK WILL BE A PRETTY STRONG GUIDING LIGHT. COURSES SPECIAL AS THE MARKETS ARE TRADING IN A SISTER PERCENT CHANCE OF EMERGENCY RATE CUTS. FOR THE FIVE BASIS POINTS FROM THE FED. TIM, THANK YOU SO MUCH. THE DIRECTOR OF EQUITY RESEARCH FOR BLOOMBERG INTELLIGENCE. WE'VE SEEN A MASSIVE GLOBAL STOCKS.
YOU CAN SEE POINT IN PERCENT LOWER. UP NEXT, MORE ON THE MARKETS WITH BLOOMBERG BRIEF. THIS IS BLOOMBERG.
2024-08-07 15:30
