Nvidia, Stocks Tumble; Netanyahu Won't Budge on War Despite Protests | Bloomberg The Pulse 09/04/24

The Pulse with Francine Lacqua AND THE INSIGHTS YOU NEED LET’S GET STARTED. ♪ FRANCINE: GOOD MORNING, EVERYONE. WELCOME TO "THE PULSE." I’M FRANCINE LACQUA IN LONDON. LET’S START WITH NVIDIA. A RECORD SINGLE DAY ROUT. $280 BILLION WIPE OFF ITS MARKET VALUE DURING YESTERDAY’S TRADING SESSION. THE BIGGEST ONE-DAY LOSS IN U.S. STOCK MARKET HISTORY AND TWHIERS AI BOOM HAS BEEN OVERDONE. INVESTORS IN EUROPE UNSETTLED AS WELL WITH ALL OF THEIR MAIN MARKETS IN THE RED THIS MORNING. Patrick Armstrong, Plurimi Wealth CIO TOM, THANK YOU FOR JOINING US. PATRICK, WE CALLED YOU AS SOON AS WE SAW THE SELLOFF. WHAT HAPPENED HERE EXACTLY? >> THAT IS A VERY GOOD QUESTION. WITH A VERY CLEAR ANSWER. IT IS LIKE A FLOCK OF BIRDS. THEY ARE ALL FLYING OFF. THE P.M.I. NUMBER WAS WEAKER THAN EXPECTED. PRICES IN THE P.M.I. SURVEY WERE HIGHER THAN EXPECTED. I DO THINK IT IS PROFIT TAKING AND A LITTLE BIT OF INVESTORS CREATING SOME SELLING MOMENTUM THAT IS SELF-FULFILLING. I DON’T THINK THERE IS ANYTHING FUNDAMENTAL BEHIND THE SELLOFF OTHER THAN TECHNICAL FACTORS. FRANCINE: KIND OF GOT SPARKED BY THIS ANTITRUST CONCERN. WHAT IS THAT? >> A COUPLE OF THINGS COMING INTO PLAY. THE MARKET SEEMS TO BE PRIMED FOR A BIT OF PROFIT TAKING AND THEN ANALYSTS COMING OUT BEFORE WE GET ANALYSTS COMING OUT INCLUDING FROM JPMORGAN AND BLACKROCK WARNING ABOUT THE RETURN ON INVESTMENT LIKE NVIDIA SAYING IF YOU’RE GETTING THESE HYPER SCALE ERSZ LIKE MICROSOFT AND AMAZON SPENDING SO HEAVILY ON CAPEX YOU NEED TO SEE THE SERVICES END. BUSINESSES OUTSIDE THE WORLD OF TECH STARTING TO SHOW THR THERE ARE SOME PAYOFFS. SO FAR THAT IS NOT HAPPENING. BLACKROCK SAYING THERE IS GOING TO BE PATIENCE. IT IS NOT GOING TO BE MONTHS BUT YEARS. AND THEN THIS DOJ PROBE, THEY HAVE GONE FROM ASKING QUESTIONNAIRES AND FORMAL QUESTIONNAIRES TO GET MORE INFORMATION TO OFFICIAL REQUEST, LEGALLY BINDING REQUESTS AND NVIDIA WILL HAVE TO PUT OUT THAT INFORMATION BECAUSE ANTITRUST REGULATORS ARE CONCERNED ABOUT THE ROLE NVIDIA HAS WITHIN THIS JEN AI SPACE AND WHETHER THEY ARE SQUEEZING OUT OTHER COMPETITORS AND DON’T HAVE THE ABILITY TO LOOK AT OTHER COMPETITORS. FRANCINE: PROBABLY DOESN’T JUSTIFY $290 BILLION WIPED OFF IN A SINGLE DAY. >> IT DOES BUT STILL UP YEAR TO DATE. FRANCINE: IS THIS IN A BULL? ONE OF THE THINGS WE WERE TALKING WITH TOM, WHEN YOU LOOK AT THE EARNINGS FROM NVIDIA. THEY DID VERY WELL YET PEOPLE WERE DISAPPOINTED WITH THE MARGINS. >> I DON’T KNOW HOW YOU CAN BE DISAPPOINTED WITH THOSE MARGINS. THEY ARE UNSUSTAINABLE. EVENTUALLY THERE WILL BE COMPETITION THAT WILL PUSH THE MARGINS DOWN. THEIR COMPETITIVE ADVANTAGE AND SQUEEZING OUTCOME PET OR THES, IT IS NOT DOING ANYTHING ILLEGAL. IT IS JUST PRODUCING A BETTER PROJECT. THAT IS WHAT IS DRIVING ITS REVENUE. FRANCINE: ARE WE EXPECTING ANYTHING FROM NVIDIA TODAY? DO THEY COME OUT WITH STATEMENTS? OR DOES IT HAVE TO RUN ITS COURSE? >> THE REASON THEY HAVE THIS MARKET SHARE, ABOUT 90% WHEN IT COMES TO AI ASSISTED CHIPS, IT IS BECAUSE OUR PRODUCTS ARE JUST THAT MUCH BETTER. OUR CUSTOMERS ARE VERY PLEASED WITH OUR PRODUCTS AND SERVICES ISES. TO PATRICK’S POINT, THE DOJ PROBE, A REMINDER, THE INFORMATION DISBAFERG A REMINDER THIS IS NOT A COMPANY THAT PRODUCES THE CHIPS. IT HAS THAT WHOLE ECOSYSTEM. IT HAS THE SERVICE AND SOFT SWEAR R WARE AS WELL AS THOSE GPU’S. THAT IS VERY COMPELLING TO ITS SUMMERS. AGAIN, THESE PROBES, IF GET TO A POINT WHERE THIS IS AN OFFICIAL PROBE RATHER THAN JUST INFORMATION GATHERING FROM THE DOJ, HISTORY KNOWS THIS TAKES A LONG TIME TO PLAY OUT. FRANCINE: THERE WAS A SUBPOENA AND T AND THE D.O.J. >> THE PARKING LOT MARKET IS PREDICATED ON AN ECONOMY THAT DOESN’T FALL INTO RECESSION AND THE FED THAT IS CUTTING INTO THAT STRENGTH. ANY INDICATORS THAT SHOW A RECESSION IS BECOMING MORE LIKELY OR PLAUSIBLE IS GOING TO SPOOK THE MARKETS. IT WAS A VERY MINOR MISS. OUR BASE CASE IS THE ECONOMY CONTINUES. DOES AVOID THAT RECESSION. FRANCINE: ONE OF MY FAVORITE WRITERS, HIS STORY WAKE ME UP WHEN SEPTEMBER ENDS. IS IT GOING TO BE BUMPY THE ENTIRE MONTH? >> THAT IS QUITE OFTEN THE PATH. THE JOBS NUMBER WILL BE IMPORTANT. THAT WILL GUIDE US WHETHER RECESSION IS GOING TO BECOME A BASE CASE. YOU HAVE NEVER SEEN A BUTCH UP IN EMPLOYMENT LIKE WE HAVE HAD WITHOUT A INVESTIGATION. THAT’S WHY I’M CONSTRUCTIVE ON THE ECONOMY. RECESSION IS POSSIBLE. DON’T THINK IT SHOULD BE THE BASE CASE. A CUTTING FED, YOU WANT TO BE IN THAT MARKET THAT IS GOING HIGHER. FRANCINE: THE ASIAN MARKETS, THE REGIONS, SEMICONDUCTORS, SUPPLY CHAIN COMPANIES WERE DOWN. NOT AS MUCH AS THEY COULD HAVE BEEN. >> ONE OF THE BIGGEST LOSERS IS ASML. TECH TAKING THE LARGEST HIT AS WELL DOWN ABOUT 2%. THERE IS A SMALLER MIX OF THEY SEE BIG TECH NAMES WITHIN THE EUROPEAN SPACE. WHAT HAPPENED IN ASIA, THE TRIGGER FOR THE SELLOFF IN JAPAN AND TAIWAN. SAW PRESSURE AS A RESULT OF THE CONCERNS THAT FILTER THROUGH AROUND NVIDIA YESTERDAY. IT HAS RAMIFICATIONS. WE’RE SEEING THAT. TO YOUR POINT,LESS EXTREME HERE IN EUROPE. LESS POTENT WHEN IT COMES TO THESE TECH NAMES. FRANCINE: THANK YOU SO MUCH. TOM MCCH MCCBS NEWSY. COMING UP, UNDER ANALYSIS ON THE GLOBAL SELLOFF. WE’LL BE JOINED BY AN ASSET MANAGER. THIS IS BLOOMBERG. ♪ FRANCINE: WELCOME BACK, EVERYONE. A BIG MARKETS DAY. WE’RE BACK WITH PATRICK ARMSTRONG. THANK YOU FOR STICKING AROUND OR JOINING US. WHAT A DAY. WE HAVE SEEN A HUGE SELLOFF. Yuko Takano, Pictet Asset Management THE UNDERLYING REASON IS NOT OBVIOUS. IS IT A BUYING OPPORTUNITY OR ARE YOU STAYING AWAY? >> I DO THINK THIS -- WE V HAD THIS WEAKNESS END OF JULY EARLY AUGUST. I THINK IT IS BACK AGAIN. MARKETS ARE NERVOUS BECAUSE WE’RE CAUGHT IN THIS RUT OF IF THE ECONOMY IS WEAK, THAT IS REALLY BAD FOR MARKETS BUT THE MARKETS WANT SOME KIND OF A RATE CUT. INVESTORS CAN’T HAVE THEIR CAKE AND EAT IT. THEY ARE IN THE STATE OF CONFUSION. FRANCINE: DO EQUITIES LOOK MORE ATTRACTSIVE? ARE WE GOING TO SEE THIS VOLATILITY WHEN INVESTORS PANIC? >> I THINK WE’LL CONTINUE TO SEE THIS UNCERTAINTY IN THE MARKET FOR A WHILE. I CAN’T SAY EXACTLY HOW LONG. IT COULD LEAD TO VOLATILITY. AS LONG-TERM INVESTORS, WE INVEST ON A THREE-YEAR TO FIVE-YEAR HORIZON. WE’RE NOT BOTHERED BY THIS VOLATILITY. WE REDO OUR EVALUATIONS. WE HAVE DIVERSE PORTFOLIOS. THESE MARKETS CREATE GOOD OPPORTUNITIES. FRANCINE: ARE YOU LOOKING AT ANYTHING SPECIFIC AT THE MOMENT OR DOES IT HAVE TO PLAY OUT IN THE NEXT COUPLE OF MONTHS? >> WE WANT TO SEE HOW IT DOES PLAY OUT BUT HAVING SAID THAT, IF YOU KNOW, A STOCK, A PARTICULAR STOCK LOOKS REALLY ATTRACTIVE THEN WE WILL GO IN. IT IS REALLY ABOUT THAT GAP BETWEEN WHAT HE PERCEIVE AS THEIR TRUE VALUE AND THEIR INTRIPS INTRINSIC VALUE. >> THE MARKETS ARE EXPENSIVE BUT THERE ARE OPPORTUNITIES. WE SOLD NOVO NORDIS. IT HAS THE OBESITY DRUG. WITH THE FED CUTTING RATES WE THINK HOUSEBUILDING WILL GET A TAIL WIND IN THE U.S. THAT IS A CHEAP COMPANY. WE THINK MILITARY SPENDING WILL CONTINUE. THAT IS A SECULAR TAIL WIND. I DO THINK THE MARKET IS EXPENSIVE BUT IF YOU ARE PICKING UP THINGS HAVE HAVE GLOBAL -- FRANCINE: WE ARE INVESTING IN THE IMPACT THE CHINA MANUFACTURING AT THE HAS. I CAN’T SEE ANYTHING THAT YOU THINK THIS IS GOING TO GO RIGHT. EVERYTHING IS TILTED ON THE NEGATIVE SIDE. >> CHINA IS SOMETHING I’M WORRIED ABOUT. WE MOVED INTO WAL-MART LAST MONTH. I THINK THE U.S. CONSUMER IS STRONG. THE LUXURY NIGH CHINA IS GOING TO CONTINUE TO BE AT RISK. ALL THE COMPANIES I MENTIONED, I’M OPTIMISTIC ON THE OUTLOOKS OF THOSE COMPANIES. BULLISH SCENARIOS ON AN ECONOMY THAT IS GROWING. ABOUT HAVING YOUR CAKE AND EATING IT TOO, I THINK THE FED RATE IS SO HIGH YOU CAN GET CUTS WITH ECONOMIC GROWTH. THE POLICY IS RESTRICTIVE INFLATION HAS COME DOWN. THE FED CAN BE CUTING WITH ECONOMIC GROWTH IN OUR OPINION. FRANCINE: THE FED IS THE BIG ONE. THE ONE THAT CHANGES EPG. THE BUYING OPPORTUNITY THE CHINA MACRO. THE MARKETS EXPECTING SOME KIND OF BAZOOKA THAT WE NEVER HAD FROM POLICY MAKERS. >> EVEN WITH THE STIMULUS, THAT IS A MANUFACTURED GROWTH. WHAT WE’RE REALLY LOOKING FOR IN CHINA ALTHOUGH WE’RE NOT EXPOSED TO CHINA AT ALL, IS THAT KIND OF MORE FUNDAMENTAL STRENGTH IN THE ECONOMY. I THINK WITH CHINA’S P.M.I. BEING REALLY WEAK AND THE CONSUMER NOT BEING VERY CONFIDENT, THIS AWED LEADS UP TO THE ISSUES THEY ARE HAVING IN THE REAL ESTATE SECTOR. UNTIL THOSE ISSUES ARE FUNDAMENTALLY RESOLVED OR THERE IS A GLIMMER OF HOPE, THEN WE’RE JUST GOING TO SIT BACK AND WAIT. FRANCINE: A LOT RESIDES ON THE JBS NUMBER FRIDAY. ARE WE EXPECTING TOO MUCH FROM IT? >> THE MARKET IS GOING TO BE FIXATED ON IT. MAY BE THE THING THAT REALLY MATTERS. IF YOU SEE UNEMPLOYMENT GO UP TO 4 1/2 MAYBE I WILL CHANGE MY VIEW AND THINK A RECESSION IS BECOMING A MORE LIKELY SCENARIO. IT IS AN IMPORTANT JOBS NUMBER BECAUSE IT IS LEADING INTO THE FED. IT WILL BE SOMETHING THE FED WILL BE LOOKING AT AS WELL. FRANCINE: THERE IS LIKE A BEFORE JOBS DATA AND AFTER JOBS DATA POSITIONING? >> SURE, SURE. WITHIN OUR PORTFOLIO WE’RE DEFENSIVELY POSITIONED. WE’RE LONG ON CONSUMER STAPLES AND UTILITIES AND THAT’S HELPED US THROUGHOUT THIS WHOLE MARKET TURMOIL AND THEN IN TERMS OF THE POCKETS OF GROWTH, WE THINK WITHIN TECH THERE HAVE BEEN COMPANIES WHERE MULTIPLES HAVE COME OFF QUITE A BIT AND YOU KNOW, WE WANT TO SEE IF THERE Japanese Yen gained on hawkish Ueda, haven rush IS ANY OTHER OPPORTUNITIES IN THAT SPACE. FRANCINE: WE’RE 16 MINUTES INTO THE SHOW AND HAVE NOT EVEN MENTIONED YEN. HOW MUCH IS GOING ON. HOW MUCH OF THE UNWINDING STILL HAS TO HAPPEN ON THE CARRY TRADE? >> IT IS VERY DIFFICULT TO SAY THE ANSWER TO THAT. THAT WAS THE DRIVER OF THE EARLY AUGUST SELL I CAN’T HAVE. PLAYED OFF A LITTLE BIT YESTERDAY AS WELL. I THINK THE INVESTORS YOU HAD POSITIONSES ON ARE CLOSED. I DON’T THINK THAT IS GOING TO BE A DRIVER OF VOLATILITY THE WAY IT WAS. FRANCINE: YOU’RE EXPECTING I GUESS AFTERSHOCKS? >> YEAH. I THINK THERE WILL BE AFTERSHOCKS BE WHETHER THAT IS DUE TO THE CARRY TRADE IS UNCERTAIN. WE’RE REALLY NOT SURE TO THE EXTENT. FRANCINE: SOME OF THE MOVES, NVIDIA, WE SPOAB SPOKE AT LENGTH ABOUT THEM. OIL HAS DROPPED TO THE LOW OF THE YEAR WROO. HOW MUCH IS TECHNICALS AND MECHANICS AND HOW MUCH IS GEO PLEKS? >> OIL HAD A GEO-POLITICAL RISK BUILT INTO IT. WEAKER P.M.I.’S. PRICING IN A WEAKER ECONOMIC BACKDROP CREATES A SELLOFF IN OIL. I WOULD NOT WANT TO BE SHORT OIL. THERE IS A BIG SHORT IN OIL. THAT GEO-POLITICAL SHOT COMES, SO MANY THINGS COULD TRIG THEY ARE A. THAT WOULD NOT BE A SHORT I WOULD WANT TO HAVE ON NOW. FRANCINE: DOES THAT FEED INTO YOUR TRANSITION PLAY? >> IN SOME WAYS YES. BUT I THINK WHAT WE’RE FOCUSED IN TERMS OF OUR TRANSITION FUND IS REALLY ON THE LONG-TERM AND THE TRANSITION AWAY FROM OIL. SO SHORT-TERM OIL PRICE MOVEMENTS DON’T IMPACT OUR PERFORMANCE THAT MUCH. WE THINK THAT, YOU KNOW, WE SAY WE’RE LOOKING FOR TRANSITION. IT IS NOT LIKE, YOU KNOW, FROM DAY-TO-DAY IT IS ALL OF A SUDDEN GOING TO CHANGE FROM 100% OIL TO NO OIL. THAT IS A MORE GRADUAL LONG-TERM TRANSITION THAT WE’RE INVESTED IN. FRANCINE: WE HAVE PAYING U.S. ELECTION COMING UP. GOLDMAN SACHS HAS SOME MODELING WHAT THE ELECTION MEANS FOR G.N.P. THE POLLS ARE PRETTY NARROW. >> IT IS VERY CLOSE CLOSE TO A COIN FLIP STILL AT THIS POINT. YOU HAVE VERY DIFFERENT POLICIES. TRUMP WITH DEREGULATION BUT WITH TARIFFS AND HARRIS IF SHE GET IN WITH MORE REGULATION, MORE SPENDING, BOTH OF THEM WILL HAVE MASSIVE DEFICITS. I THINK THAT IS SOMETHING THAT IS REALLY GOING TO BE A 2025 STORY, THE U.S. DEFICITS AND DEBT AND LESS POPULISM GETS YOU ELECTED BUT DOES IT WORK TO DRIVE GROWTH? FRANCINE: THANK YOU BOTH FOR JOINING US. COMING UP, OIL EXTENDS LOSSES AFTER A DROP OF ALMOST 5% YESTERDAY. WE TAKE A LOOK AT WHAT’S BEHIND THAT SLIDE FROM THE MIDDLE EAST. THAT IS NEXT. THIS IS BLOOMBERG. >> THERE’S AN ORDERLY UNWIND AND A DISORDERLY UNWIND. THE FED CUT IS EXPECTED. IF IT WERE TO BE MUCH GREATER, IT IS PROBABLY GOING TO BE A VERY ORDERLY PROCESS AS WE MOVE BACK TO LOWER OR RISK-FREE RATES TO RETURN, TALK ABOUT THE CAPACITY, OIL, THE PHYSICAL, IT IS BEGINNING TO UNWIND. FRANCINE: THAT WAS THE CHIEF STRATEGY Brent crude erases 2024 gains OFFICER JEFF CURRY. OIL IS EXTENDING DECLINES AFTER A LOSS OF ALMOST 5% YESTERDAY. THE POSSIBILITY OF POLITICAL UNREST IN LIBYA IS SHIFTING FOCUS BACK TO BOOST PRODUCTION BY OPEC PLUS. THANK YOU FOR JOINING US. WHAT EXACTLY IS BEHIND THE OIL MELTDOWN? >> WE SAW THAT START YESTERDAY AFTER WE SPOKE WITH THE LIBYAN CENTRAL BANK GOVERNOR, THE ONE WHO HAD BEEN DEPOSED AND HAS LEFT THE COUNTRY AND IS NOW IN TURKEY. HE SAID THIS OUTAGE COULD REACH A CLOSE. THEY ARE WORKING ON A SOLUTION TO THE POLITICAL CRISIS AROUND CONTROL OF THE CENTRAL BANK THAT HAS LED ONE OF THE TWO GOVERNMENTS IN LIBYA TO CUT PRODUCTION, TAKING HALF A BILLION BARRELS A DAY OFF THE MARKET. THAT IS GIVING SOME SUPPORT TO THE MARKET BUT COMMENTS CAME OUT YESTERDAY THERE COULD BE A RESOLUTION TO THAT PROBLEM. THAT GAVE AN INITIAL SPARK TO BRING US LOWER MORE QUICKLY ON OIL YESTERDAY. ADD ON TO THAT, CONCERNS ABOUT DEMAND IN CHINA AND A POTENTIAL LOWER MANUFACTURING RESULTS FROM THE UNITED STATES AND THAT ADDS SOME CONCERN ABOUT DEMAND THERE TOO. THOSE DEMAND ISSUES ON TOP OF THIS ADDITIONAL SUPPLY COMING BACK IF LIBYA AS WELL AS OPEC’S PLAN TO INCREASE IN OCTOBER IS HAVING THAT SNOWBALL EFFECT, FRANCINE. FRANCINE: SO ANTHONY, WE STARTED FROM A LOT OF OIL FORECASTS FROM PROTECTING A REALLY A QUAI TO $90 A BARREL OR BEYOND THIS YEAR. A LOT OF THEM HAVING TO CHANGE THEIR PRICE FORECASTS? >> YEAH, A LOT OF THE MOTIVATIONS IN THE OIL MARKET CHANGES. WE HAVE SEEN PERSISTENT GEO-POLITICAL RISK THAT HAS FAILED TO BRING THROUGH CONSISTENTLY HIGHER PRICES. WE HAVE SEEN THOSE KNEE-JERK REACTIONS. WE HAVE NOT SEEN OIL TAKE THOSE LEGS HIGHER. WE HAVE SEEN THE TRAL ISSUES RATHER THAN HAVING ACTUAL ISSUES AROUND SUPPLY FROM THIS REGION, WE HAVE SEEN ACTUAL ISSUES AROUND DEMAND IN CHINA ASKING FOR MORE OIL, CONCERN ALSO AROUND THE U.S. BUT WE HAVE SEEN ADDITIONAL SUPPLY COME OUT OF THE UNITED STATES AS WELL AS OTHER COUNTRIES IN THE AMERICAS. SO THAT SUPPLY PICTURE IS LOOKING TO KIND OF OVERWHELM THAT DEMAND. SO A LOT OF THOSE INVESTMENT BANKS THAT YOU MENTION REASONABLE DOUBT LOOKING ATSUR PLUSES TOWARD THE ON THE OTHER HAND THIS YEAR INTO NEXT YEAR. >> THANKS SO MUCH. THE VERY LATEST ON OIL. GLOBAL FLIGHT FROM RISK ASSET IS CONTINUING TODAY. UP NEXT, AN EXCLUSIVE CONVERSATION WITH THE FONDER OF HOMESERVE. THAT IS NEXT. Headlines FRANCINE: GOOD MORNING, EVERYONE. WELCOME TO "THE PULSE." I’M FRANCINE LACQUA IN LONDON. THESE ARE YOUR TOP STORIES. GROWTH WORRIES FUEL A FLIGHT FROM RISK. NVIDIA, WORRIES OVER AI WIPE $279 BILLION FROM THE CHIP MAKER’S VALUE, THE BIGGEST ONE-DAY LOSS IN U.S. STOCK MARKET HISTORY. ANTITRUST CONCERNS LINGER. AND BLOOMBERG LEARNED CATHAY PACIFIC MAY NOT BE ABLE TO PUT ALL OF THEIR AIRBUSES IN USE AS QUICK AS THEY THOUGHT. $16.1 BILLION AND DEBT INCLUDING CAPITAL EXPENDITURE UNDER PROJECTS. THIS IS BLACKSTONE, THE NEW YORK BASED ASSET MANAGER DOING IT WITH THE CANADIAN BASED PENSION PLAN. THIS IS ACCORDING TO SOMETHING THAT ACTUALLY CAME OUT A LITTLE BIT EARLIER ON. PRIVATE EQUITY GIANT BROOKFIELD CLOSED A 4.1 BILLION POUND DEAL FOR A U.K. HOME REPAIR SERVICE HOMESERVE. HOMESERVE’S FOUNDER RICHARD HARPIN AND HIS FAMILY MADE $5 BILLION FROM THE BUYOUT HE IS EXCLUSIVE: Richard David Harpin, Homeserve, Founder & Chairman INVESTING IN COMPANIES WEIGHED TOWARD THE CONSUMER SECTOR. WE ARE JOINED BY RICHARD HARPIN. CONGRATULATIONS ON THE MAJOR WINDFALL YOU RECEIVED IN THE HOMESERVE DEAL. I WAS ASKING YOU WHETHER YOUR LIFE CHANGED. DO YOU FEEL DIFFERENT? >> NOT AT ALL. I THINK IT IS EVOLUTION RATHER THAN REVOLUTION. ONE OF MY EIGHT SECRETS. I HAVE REMAINEDDED A CHAIRMAN OF HOMESERVE BUT FREED UP SOME TIME TO FOCUS ON GROWTH PARTNER, MY FAMILY INVESTMENT FIRM AND IT MEANS I FREED UP A LOT OF CAPITAL, HUNDREDS OF MILLIONS OF POUNDS TO BACK ENTREPRENEURS IN EARLY STAGES OF THEIR JOURNEY. FRANCINE: I WANT TO COME ON TO YOUR EIGHT SECRETS, WHAT YOU LEARNED OVER YOUR JOURNEY AS AN ENTREPRENEUR WITH THIS SUCCESSFUL SALE. WHAT MAKES YOU WANT TO CONTINUE INVESTING? IS IT THE THRILL OF FINDING THE N.E.C. BIG COMPANY OR TO GIVE BACK? >> I HAVE A REAL PASSION FOR BUSINESS. I WENT TO HARVARD FOR FOUR DAYS A FEW YEARS AGO TO WORK OUT WHAT MY CAREER OBJECTIVE SHOULD BE. I CAME UP WITH TWO WORDS. INSPIRE BREAKTHROUGH. I HOPE IF YOU WENT TO ANY OF THE GUYS ON HOMESERVE THAT MADE THE BUSINESS HAPPEN WOULD SAY I CHALLENGED THEM AND INSPIRED THEM AND WE ACHIEVED MORE THAN WE THOUGHT WAS POSSIBLE. I WANTED TO USE THAT SKILL AND TAKE LARGE MINORITY INVESTMENTS AND HELP INSPIRE BREAKTHROUGH IN THEM AND THESE ARE TYPICALLY BUSINESSES THAT ARE MAKING BETWEEN 1 MILL BEYOND 5 MILLION POUNDS IN INVESTMENT. TO ACQUIRE A LARGE MINORITY AND HELP THEM ACHIEVE THE BREEK BREAKTHROUGH GROWTH. FRANCINE: THIS FEELS LIKE MONEY MENTORING. WHAT ARE THE KEY SECRETS YOU LEARNED, THE EIGHT THINGS THAT WOULD HAVE TRANSFORMED YOUR BUSINESS QUICKER HAD YOU KNOWN IT 30 YEARS AGO? >> I THINK THE BIGGEST MISTAKE IN EARLY STAGE BUSINESSES IS DON’T GO BIG UNTIL YOU PROVED THE MODEL. I WAS LUCKY IN COPYING SOMEONE ELSE, THAT PLUMBING INSURANCE MODEL. AND MORE GROWTH TO COME. DON’T GO BIG UNTIL YOU HAVE COPIED, PIVOTED, FOUND THE RIGHT MODEL. I THINK THE MOST DIFFICULT OF THE EIGHT SECRETS FOR OTHER ENTREPRENEURS IS HIRE YOUR REPLACEMENT. I DID IT AFTER EIGHT YEARS. I WORKED OUT, I WAS GOOD AT VISION AND OPENING DOORS AND GROWTH BUT NOT VERY GOOD AT RUNNING THE DAY-TO-DAY BUSINESS. ONE OF THE MESSAGES I CONVEY TO THE OTHER ENTREPRENEURS IS HIRE SOMEBODY TO RUN THE DAY-TO-DAY SO YOU CAN THEN WORK ON THE BUSINESS RATHER THAN IN THE BUSINESS. FRANCINE: THAT IS WHAT, FROM THE START? THE JOURNEY YI AN ENTREPRENEUR CHANGES. >> NOT FROM THE START BECAUSE YOU NEED THAT ENTREPRENEUR IDEAS PIVOTING, COPYING, FINDING THE RIGHT IDEA. IT TOOK ME AGENCY YEARS BEFORE I HIRED MY CHIEF EXEC. I RECOMMENDED DOING IT BUT AFTER BETWEEN THREE AND FIVE YEARS. FRANCINE: WHEN YOU MEET SOME FOUNDERS, EARLY STAGE, CAN YOU TELL WHO IS GOING TO BE SUCCESSFUL OR NOT? >> I THINK SO. NUMBER ONE, BACKING THE INDIVIDUAL. I DIDN’T MEAN COLLINS WOULD CALL LEVEL FIVE LEADERS. LOW EGO EO THAT WANT TO LEARN. THEY ARE PASSIONATE ABOUT THE BUSINESS HIRING GREAT PEOPLE THAT ARE BETTER THAN THEM. THEY ARE PASSIONATE ABOUT THE BUSINESS RATHER THAN THEIR OWN CAREER. IT IS THOSE SORTS OF PEOPLE THAT PERSISTED, THAT ARE COURAGEOUS AND ARE GOING TO COME FROM THE BRUTAL FACTS. FRANCINE: HOW DO YOU KNOW THEY CAN WORK UNDER PRESSURE? >> THERE WILL ALWAYS BE PRESSURE. A GREAT LEADER, GREAT ENTREPRENEUR WILL SAY I’LL ACHIEVE GROWTH REGARDLESS OF THE COST OF LIVING CRISES, BREXIT, COVID, THEY WILL STILL MAKE THEIR BUS BUSINESS GROW. FRANCINE: WHAT ARE YOU INVESTING IN NOW? I THINK YOU FOUND SOMETHING. >> ANNOUNCING TODAY OUR FIRST TRAVEL INVESTMENT WHICH IS -- WE’RE BACKING DALE SMITH. GREAT ENTREPRENEUR. PUTTING 10.5 MILLION POUNDES INTO HIS BUSINESS. HE STARTED A FEW YEARS AGO MANAGING A DOZEN PROPERTIES AND NOW UP TO 1,000. IN PARALLEL WITH MY INVESTMENT THROUGH GROWTH PARTNER HE HAS DONE TWO BUY AND BUILD ACQUISITIONS. A PORTFOLIO IN NORFOLK AND ANOTHER ONE IN BRIGHTON. FRANCINE: THIS IS NOT -- IT IS AN INDUSTRY THAT HAS ALREADY BEEN DISRUPTED QUITE A LOT. YOU’RE NOT LOOKING FOR THE DISRUPTOR. YOU’RE LOOKING FOR SOMEONE WITH THE PERFECTION AND EXECUTION. >> YEAH. A SLIGHTLY DIFFERENT MODEL. THE STAY INDICATION MARKET IN --STAYCATION MODEL IS WORTH ABOUT 2 MILLION POUNDS PIVELT WE EMPLOYEE ALL OF OUR OWN CLEARANCE. THAT IS A REALLY IMPORTANT PART OF DELIVERING GREAT CUSTOMER SERVICE STANDARDS. FRANCINE: WHAT IS YOUR TAKE ON THE U.K. NOW? U.K. PLC, WHAT THE NEW GOVERNMENT WILL PUT IN PLACE AND WHAT WEATHER THAT SPURS A LOT OF GROWTH AND ENTREPRENEURS. >> MY PHILOSOPHY IS WHOEVER THE GOVERNMENT IS, IT BELONGS TO THE RESPONSIBILITY, BELONGS TO ENTREPRENEURS AND THE BUSINESS COMMUNITY TO ACHIEVE GROWTH. WE ONLY HAVE SO MANY LARGE COMPANIES IN THE U.K., LIKE HOME SERVER. THEY EMPLOYEE 39% OF THE POPULATION. WE JUST NEED TO DOUBLE THE NUMBER OF LARGE COMPANIES FOR ECONOMIC GROWTH. THAT IS GOING TO COME OUT OF THE MEDIUM. GROWTH PARTNERS IS INVESTING IN THOSE. WE’RE LOOKING FOR CO-INVESTORS. OTHER ENTREPRENEURS THAT HAVE MADE IT BIG THAT HAVE SOME CAPITAL AND REAL EXPERTISE THAT WANT TO COME IN AND SHARE ONE OF OUR INVESTMENTS AND PUT IN CO-INVESTMENT. THAT IS A GREAT PART OF MODEL. FRANCINE: WHAT IS YOUR DREAM FOR SOME OF THESE COMPANIES? BEING A FTSE 100 COMPANY OR RIVALLING SOME OF THE BIG U.S. COMPANIES THAT SEEM TO BE BETTER AT BECOMING BIGGER FASTER AND RICHER. >> I THINK IT IS FOLLOWING MY AGENCY SECRETS. YOU CAN BUILD A BILLION POUND BUSINESS. YOU KNOW HOW MANY BILLION POUND BUSINESSES THERE ARE IN THE U.K. TODAY WITH THE FOUNDER STILL INVOLVED IN SOME WAY THAT WAS A STARTUP TO A BILLION POUND OR MORE? ONLY 56. SO WOULDN’T IT BE GREAT IF WE COULD HAVE MORE OF THOSE AND I PASSIONATELY WANT SOME OF THOSE TO COME OUT OF OUR GROWTH PARTNER INVESTMENTS. WE HAVE GREAT INVESTMENT TEAM WORKING REALLY HARD SUPPORTING THOSE BUSINESSES, FINDING MORE DEALS. THAT IS REALLY EXCITING. FRANCINE: RICHARD, THANK YOU SO MUCH. DON’T BE A STRANGER. YOU HAVE TO COME BACK. RICHARD HARPIN, FOUNDER OF HOMESERVE AND GROWTH PARTNER. CHINA CONSIDERING CUTTING INTEREST RATES ON AS MUCH AS $5.3 TRILLION IN MORTGAGES. LOWERING BORROWING COSTS FOR MILLIONS OF FAMILIES. WE HAVE BEEN WAITING FOR A LONG TIME FOR SOME KIND OF BAZOOKA FROM POLICY MAKEERS IN CHINA TO TRY AND SUPPORT THE ECONOMY AND THE INDUSTRIES INCLUDE REAL ESTATE THAT HAVE BEEN UNDER PRESSURE. THIS IS JUST ANOTHER STEP. DOESN’T FEEL 3/4 BAZOOKA CERTAIN ANALYSTS WERE EXPECTING BUT ANOTHER STEP LIKE WE SAW IN LAST COUPLE OF WEEKS, A MORE STABLE MARKET. NVIDIA, THE BIG STORY TODAY. THERE ARE A NUMBER OF CONCERNS WITH THE SUBPOENA AND THE DOJ. INVESTORS DOWN 2%, 1.8% TO BE PRECISE PREMARKET. LET’S TALK AND SOME OF THE MLIV: Market sell-off MARKET SELLOFF. THANK YOU FOR JOINING US. YOU LOOK AT STOCKS AND VOLATILITY, IT BLEW UP AGAIN. THERE ARE TWO, THREE REASONS WHY BUT NOT AN UNDERLYING SHIFT IN FUNDAMENTALS? >> ABSOLUTELY. THAT PHOENIX IS THE JITTERY MARKET, HOW EVALUATIONS -- SPEAKS TO THE JITTERY MARKET. EVEN WITHOUT A MAJOR THAN THE MARKETS ARE SELLING OFF BIG TIME. IF YOU LOOK AT THE S&P 500, THE EARNINGS 4.3% SOMETHING. YOU LOOK AT NASDAQ, JUST ABOUT 2.4%. IF YOU LOOK AT THOSE IN RELATION TO THE FED FUNDS RATE, THOSE ARE THE LOWEST EARNINGS EVER IN THE HISTORY. SO THOSE EVALUATIONS ARE VERY STRETCHED. IF YOU LOOK AT WHAT SOME OF THE SMART INVESTORS HAVE BEEN DOING LIKE WARREN BUFFETT’S BERKSHIRE HATHAWAY, THEY HAVE BEEN TAKING MONEY OFF THE TABLE OFF SOME OF THE BEST BUSINESSES THEY HOLD, BANK OF AMERICA AND APPLE. THAT SPEAKS TO A MARKET WHERE THERE ARE PLENTY OF SIGNALS SUGGESTING THIS HOUSE -- THIS DECK OF CARDS CAN’T CONTINUE UNSUSTAINED AND THEREFORE INVESTORS NEED TO SIT UP AND TAKE NOTICE. FRANCINE: YOU ALSO ARE LOOKING -- GETTING UP AND TAKING NOTICE. YOU’RE LOOKING AT THE CENTRAL BANK INTEREST RATE, ECONOMIC OUTPUT, INFLATION. WHAT IS ITS TELLING YOU THEN? >> IT SUGGESTS THAT THE FED HAS GOT PLENTY OF ROOM TO CUT RATES. IT THOSE CAN FED CAN -- EIGHT TIMES IN THE ENTIRE CYCLE. SOME OF THE BANKS THAT HAVE THE DEEPEST ROOM TO CUT RATES ARE THE BANK OF ENGLAND SURPRISINGLY AND THE RESERVE BANK OF NEW ZEALAND. 250 BASIS POINTS TO CUT RATES. THE ECB ON THE OTHER HAND HAS GOT ROOM TO GO ONLY 130 BASIS POINTS. THE ECB IS NOT GOING TO BE ABLE TO CUT RATES AS MUCH AS THE OTHER CENTRAL BANKS. THAT IS GOING TO BE A POSITIVE FOR THE EURO. FRANCINE: BEN, THANK YOU SO MUCH AS ALWAYS. COMING UP, THE U.S. CHARGES A LEADER OF HAMAS FOR HIS INVOLVEMENT IN THE DEADLY ATTACKS ON ISRAEL LAST YEAR. WE’LL GIVE YOU ALL THE DETAILS NEXT. THIS IS BLOOMBERG. FRANCINE: THE U.S. JUSTICE DEPARTMENT HAS ANNOUNCED CRIMINAL CHARGES AGAINST HAMAS INCLUDING YAHYA SINWAR. LET’S BRING IN OUR GUEST. TELL US charges Hamas leader Sinwar US MORE ABOUT THE CHARGES. >> THAT’S RIGHT. THE DEPARTMENT OF JUSTICE UNSEALED YESTERDAY THAT IT HAD INTRODUCED CRIMINAL CHARGES ON SIX PARTY OFFICIALS FROM HAMAS INCLUDING THE CURRENT LEADER YAHYA SINWAR FOR CONDUCTING THE OCTOBER 7 ATTACK. THIS IS THE FIRST TIME U.S. LAW ENFORCEMENT CALLED OUT THE MASTERMINDS OF THIS ATTACK. THE CHARGES INCLUDED CONSPIRACY TO PROVIDE MATERIAL SUPPORT TO A FOREIGN TERRORIST ORGANIZATION. CONSPIRACY TO MURDER U.S. NATIONALS AND CONSPIRACY TO USE WORLD RESULTING IN -- WEAPONS OF MASS DESTRUCTION RESULTING IN DEATH. CHARGES WERE FILED BACK IN FEBRUARY, ONLY UNSEALED YESTERDAY WHICH RAISES A LOT OF QUESTIONS WHY IT TOOK THEM SO LONG TO UNSEAL THESE ANNOUNCEMENTS. THE OTHER THING THAT IS WORTH NOAGHT IS THAT EVEN THOUGH SIX PARTY OFFICIALS WERE ACCUSED OF THESE CHARGES IT IS ESTIMATED SINCE THEN OVER THE COURSE OF THE TIME PERIOD BETWEEN FEBRUARY AND NOW, THREE OF THEM ARE THOUGHT TO BE DEAD. YAHYA SINWAR HIMSELF IS THOUGHT TO BE HIDING IN TUNNELS IN GAZA. IT MAY HAVE SOMEWHAT OF AN IMPACT. ONE OF THE NAMES IS CURRENTLY RESIZING IN DOHA. WHAT THIS MEANS POTENTIALLY IS IT COULD ALLOW U.S. LAW ENFORCEMENT TO APPLY PRESSURE ON THOSE SEEN TO BE AIDING THE ORGANIZATION AND THEREFORE POTENTIALLY, POTENTIALLY HERE IT COULD OPEN THE DOOR TO THE U.S. APPLYING PRESSURE ON QATAR WHEN IT COMES TO HOUSING ONE OF THESE POLITICAL LEADERS FROM THE HAMAS ORGANIZATION. IN TERMS OF IMPACT ON THE CEASE-FIRE DISCUSSIONS, BLOOMBERG HAS SPOKEN TO OFFICIALS FROM THE U.S. WHO HAVE SIGNALED THIS SHOULDN’T HAVE AN IMPACT ON WHERE THESE DISCUSSIONS ARE GOING BECAUSE OF COURSE IT REMAINS A PRIORITY FOR THE BIDEN ADMINISTRATION TO GET THIS CEASE-FIRE DEAL OVER THE LINE. FRANCINE: THANK YOU SO MUCH. NOW THE UKRAINIAN PRESIDENT ZELENSKYY HAS RESTATED A CALL AFTER MORE THAN 50 PEOPLE WERE KILLED IN ONE OF THE DEADLIEST STRIKES SINCE THE INVASION BEGAN 2 1/2 YEAR AGO. THE COUNTRY’S FOREIGN MINISTER, A RESIGNATION FROM THREE CABINET MEMBERS YESTERDAY. ELON MONK’S STAR LINK HAS REVERSED COURSE AND SAID IT WILL COMPLY WITH A TOP COURT TO BLOCK ACCESS. IZ COMES AFTER HIS BITTER STANDOFF WITH THE COUNTRY AFTER THE SUPREME COURT JUSTICE ASKED FOR IT TO BE BANNED AS PART OF A CAMPAIGN AGAINST DISINFORMATION. CHINA IS ONE OF THE BIGGEST SOURCES FOR FINANCE FOR AFRICAN Forum on China-Africa cooperation NATIONS POURING IN MORE THAN $120 BILLION FOR OVER MORE THAN A DECADE. CHINA’S HEAVY LENDING TO THE CONTINENT HAS BEEN CALLED DEBT TRAPPING BY SOME. WHY IS THIS? >> GOOD MORNING TO YOU. THIS IS BECAUSE THE VOLUME THAT CHINA HAS BEEN LENDING TO THE CONTINENT HAS GROWN OVER THE LAST TWO DECADES FROM 98 MILLION DOLLARS IN 2002 TO 28 BILLION IN 2016 OF COURSE BECAUSE OF THE COVID-19 PANDEMIC. BEGAN PICKING UP LAST YEAR $4.6 BILLION. THERE HAS BEEN BACKING ON INFRASTRUCTURE PROJECT AND CHINESE MONEY DOES NOT COME WITH THE SAME CONDITIONS AS THE WORLD BANK. MANY AFRICAN COUNTRIES ARE IN DEBT DISTRESS. SOME HAVE DEFAULTED LIKE ZAMBI AND GHANA AND ANGOLA. 1/3 OF THE DEBT IS OWED TO CHINA. THIS IS RAISING QUESTIONS ON THE SUSTAINABILITY OF THE DEBT AND THE VOLUMES THAT CHINA IS LENDING TO AFRICA. FRANCINE: SO HOW WAS THAT DEBT ACCRUED AND WHAT IS THE STATE OF THOSE PROJECTS? >> THE MONEY HAS GONE INTO INFRASTRUCTURE PROJECTS, 120 BILLION INTO THE BELT AND ROAD INITIATIVE. SOME HAS BEEN SUCCESSFUL FOR EXAMPLE POWER PLANT PROJECTS IN ZIMBABWE. YOU LOOK AT KENYA AND NIGERIA, THEIR PROJECT DID NOT LIVE UP TO EXPECTATIONS AND $5 BILLION HAS SUNK. CHINA HAS BEEN ABLE TO BUILD INFLUENCE HAS ACCESS TO ENERGY AND CRITICAL MINERALS. THIS IS ALMOST A CATCH 22 SITUATION. CONCERNS ABOUT AFRICA AND THE RELATIONSHIP WITH CHINA. MANY OF THE LEADERS IN CHINA ARE THERE FOR THE FORUM. THAT GOES TO SHOW YOU HOW DEEP THEIR INFLUENCE IN THE CONTINENT RUNS. FRANCINE: THANK YOU SO MUCH. COMING UP, CONTINUED DISTURBANCES FOR CATHAY PACIFIC AS LACK OF ENGINE PARTS KEEPS SOME OF ITS A350 FLEET GROUNDED. THAT IS NEXT. FRANCINE: WELL, BLOOMBERG HAS LEARNED THAT CATHAY PACIFIC MAY NOT BE ABLE TO PULL ALL OF ITS A350 AIRCRAFT BACK INTO SERVICE DUE TO A PARTS SHORTAGE THEY HAVE TAKE SEVERAL OUT OF SERVICE. LET’S BRING IN OUR GLOBAL Engine parts shortage hit Cathay Pacific AVIATION EDITOR. THANK YOU FOR JOINING US. HOW MUCH DISRUPTION HAS THIS CAUSED FOR CATHAY? >> CATHAY IS STILL WORKING THROUGH THE BACKLOG FROM THIS INCIDENT WHICH HAPPENED ON A FLIGHT ON MONDAY. THAT SORT OF LED TO THIS CASCADING INSPECTION. WE HEAR FROM CATHAY THAT ABOUT 90 FLIGHTS HAD TO BE CANCELED THROW WEEKEND. THEY HOPE TO HAVE OPERATIONS BACK ON BY THEN BY THE WEEKEND. MOST OF THESE ARE LOCAL AND REGIONAL FLIGHTS AND A FEW OF THEM, VERY FEW OF THEM ARE LONG DISTANCE FLIGHTS. THAT REDUCES THE DISRUPTION AND THE GOOD NEWS IS IN SOME WAYS THE REPAIRS THEY HAVE HAD TO UNDERTAKE ON THESE AIRCRAFT ARE FAIRLY SHORT. ABOUT 90 MINUTES. OPEN UP THE ENGINE. DON’T HAVE TO TAKE IT OFF. THE PART THAT NEEDS SWITCHING HAS TO DO WITH THE FUEL SUPPLY. IT IS FAIRLY EASILY ACCESSIBLE ALL OF THESE THINGS POINT TO AN ISSUE THAT CAN BE CONTAINED. FRANCINE: HAS THIS CAUSED DISRUPTION FOR OTHER AIRLINES AS WELL? >> OTHER AIRLINES ARE SORT OF LEANING ON CATHAY AND ASKING FOR ADVICE. THAT’S WHAT WE’RE HEARING. SOME OF THEM ARE INSPECTING THEIR FLEETS. SINGAPORE, WHICH IS A THE BIGGEST OPERATOR OF THIS PARTICULAR AIRCRAFT, THEY HAVE UNDERTAKEN CHECKS. THEY HAVE FOUND NOTHING SO FAR AS FAR AS WE KNOW. OTHER BIG OPERATORS ARE LUFTHANSA. QATAR AIR WAYS. YOU THINK THIS IS SOMETHING THAT GOES BEYOND JUST CATHAY’S ISSUES BUT SO FAR NOTHING. IT MIGHT BE THEY HAVE FOUND SOMETHING AND THEY ARE QUIETLY FIXING IT AS PART OF A MAINTENANCE CYCLE THAT PART WE DON’T KNOW BUT SO FAR PUBLICLY NOBODY ELSE HAS COME OUT SO THE DISRUPTIONS ARE REALLY ONLY ON THE CATHAY SIDE. FRANCINE: WHAT IS THE FALLOUT FOR ROLLS-ROYCE AND POTENTIALLY AIRBUS? >> FOR ROLLS-ROYCE YOU SAW THE FALLOUT ON MONDAY. THE STOCK DROPPED DRAMATICALLY ON THAT DAY. THIS IS A STOCK THAT HAS DONE INCREDIBLY WELL FOR INVESTORS THIS YEAR AND LAST YEAR. ANY PIECE OF BAD NEWS DISRUPTS THAT STORY. THE STOCK DOWN MORE THAN 8% MONDAY AT ONE UPON THE. THEY HAVE COME BACK BECAUSE I THINK INVESTORS ARE LOOKING AT THIS AND SAYING OK. THIS IS THIS DOES LOOK LIKE SOMETHING THAT THEY CAN CONTAIN. IT IS A PROBLEM. NOT GREAT BUT IT IS SORT OF A DAY-TO-DAY THING THAT HAPPENS AND SEEMS THEY HAVE A HANDLE ON ITS. FOR AIRBUS, SAME THING. IF THIS WERE A MATERIAL ISSUE FOR THEIR A350 JET, THAT WOULD BE A REAL ISSUE FOR THEM. THAT DOESN’T APPEAR TO BE THE CASE. THE INDUSTRY AT LODGE HAS DODGED A BULLET HERE AND THEY CAN MOVE ON FROM THIS FRANCINE: BENNY, THANK YOU SO MUCH. BLOOMBERG’S GLOBAL AVIATION EDITOR. UP NEXT, "BLOOMBERG BRIEF" WITH DANI BURGER AND MANUS CRANNY. WE HAD FIERCE YESTERDAY ABOUT THE U.S. ECONOMY AND OF COURSE A RETREAT FROM BIG TECH THIS IS BLOOMBERG.