Bloomberg Audio Studios, Podcasts, radio News. A single best idea. It was a terrific Monday. Monday in July. You know, you're really not focused like you got to get you got to get the Tuesday, to get the week started. Our team put together a great set of conversations to get you to your Tuesday so you can get your week started. Real high point. Elaine Ray joined us. She's a giant in European economics. Was a really good and thoughtful discussion on what she thinks Europe needs to do
to get their act together. It was very academic, very highbrow, but that was wonderful. And then we had the lowbrow as well. Isabelle Lee of Bloomberg News with a breaking story the Compendium of Crypto at one hundred and eighteen thousand bitcoin rather at one hundred and eighteen thousand and whither from here. Wrapped around that was equities, bonds, currencies and commodities and special guests in from Hong Kong. I love saying this. With the Hong Kong and Shanghai Banking
Corporation HSBC, is there giant on semiconductor analysis. Here is Frank Lee of HSBC.
I think it is an issue that people talk about, but we haven't really seen that really materialize yet. I do think the infrastructure build will continue. I think everybody recognizes the importance of AI right now and why it's so important to invest it in. You know, for example, if you look at sovereign AI right now in the announcements earlier in the year about you know, Saudi Arabia
canna invest this huge amount of desness. But there's also the question are they ready yet, right because they need to build the infrastructure in terms of the energy. But I think it will eventually. I think we'll go hand in hand.
Really really interesting and particularly Frank then the Pacific rim on Taiwan and then over to mainland China as well. Just absolutely fascinating. And again we protect the copyright of our guests. His reports are jaw dropping in their complexity. I threaten to actually read one and try to get through it. On AI and almost on the physics and computation wrapped around artificial intelligence, there's no physics with Lori Calvsina.
It's about studying the mood of the equity market with RBC Capital Markets.
Lori Calvisina, Well, what I'll tell you I'm seeing in my Decktom and Tom, you and I've known each other a long time. I am sort of like anti theme, anti fad, like I am never, you know, sort of
drinking the kool aid on the next hot thing. But I've been calmed down a little bit on this AI theme because when I look at the top ten megacap names in the S and P five hundred, which are largely AI plays, and I do a median pe of those companies, and I compare it to the long term growth expectations, and I take those two things right, and I look at MAG seven versus rest of the S and P rel pe line is the same line as the relative long term earnings growth line, So they're getting
different multiples, but it's based on the differing perceptions of what the long term earnings growth rates are. And that's been very similar to what we tend to see over time. I think there was a breakdown in that relationship around the GFC briefly, but this is even how stocks behaved
back in the nineties and early two thousands. So I think you've really got to tackle those long term earnings growth expectations, and you've either got to just like Bang down the mag seven trade and say their numbers are way too optimistic, or you've got to look at the rest of the market and say it's way too pessimistic and move those up. And we're just not seeing any change in that relative gap. So they're kind of each getting the relative pe they deserve.
Bottle it, Laurie Kelvisen. There are the wonderful discussion of piecing together your conviction about what the growth rate is, however you measure that with a company and with an industry as well. It really gets back to the basics of security analysis. We're back to the basics here in mid July onward to that July thirty FED meeting, and of course all the geopolitics of the domestic Washington as well. We're out on Apple Music, on Spotify as well as
where you find the podcast and on YouTube podcasts. It's a single best idea