00:00So, Rowena, this sell-off that we've seen all week, it just was like a vicious cycle.
00:05Once we saw some selling, we saw even more selling. Was it mainly the retail trade that was getting out?
00:10And should we expect some kind of risk-on move again now that we're seeing futures positive?
00:16Well, we really are seeing a rebound in futures this morning and also in Bitcoin and some of those commodities as well.
00:24So the tide does really seem to have turned. Whether that can be stained, you know,
00:29there's some dip buying going on, a sense that perhaps the pile-in to sell went too far.
00:38Maybe there's still some value there. And a lot of this really speaks to the paradox around the AI trade at the moment.
00:44You know, we've seen the sell-off in some of those software developers this week because of concerns about AI disruption.
00:50That's sort of taken a chunk out of the AI trade in general.
00:55There's also concerns about companies spending too much.
00:58We've just seen Amazon's announcement this morning, which is weighing on its shares in the pre-market.
01:03But at the same time, dip buyers are feeling, well, maybe this is actually a bit of an overreaction.
01:08There is still a lot of growth potential there.
01:11And so we're seeing that sort of starting to flip back again.
01:14And then that also feeds into the sort of risk appetite as well.
01:19It's interesting we're seeing the commodities splitting there.
01:21We're seeing precious metals pick up a bit after their slump, whereas copper's futures are still pointing lower.
01:29That benefits a lot from the AI trade too.
01:32So I think really the sort of sense of whether things have gone too far or not far enough is really what the tension is there this morning.
01:38Yeah. I mean, Mormona, why are the enormous CapEx plans sending markets into a tailspin?
01:42And typically spending in an economy should be good for the economy, right?
01:46It's creating innovation. It should be creating jobs.
01:49Better productivity potentially.
01:52Well, I think it's really a case of, you know, CapEx is good if it actually provides growth.
02:00And if it also matches the profit potential, I think there's some concern that perhaps companies are spending more than, you know, the revenue would merit.
02:11And that does lend them, you know, up to margin pressure.
02:15And it also, to the other side of the industry, you know, this AI growth is also bad for some other stocks.
02:23There is that disruption, particularly with those innovations we've seen coming out of Anthropic this week.
02:28So I think that there's just a concern and perhaps that these valuations have got overinflated as well.
02:34You know, the amount that people are spending, does it really match the potential that's there?
02:38So it's really a case of a reassessment as to what's merited and what is hype.
02:44Yeah, it's really messy out there at the moment.
02:46At some point, I guess clarity will prevail.
02:49This crisis of confidence in Bitcoin, though, does it preclude it now from ever being a good hedge again or, you know, a store of value or a haven?
02:59Well, I think certainly that narrative has been disrupted.
03:03You know, we've had reports out about the losses, actually, that those investments have sustained over the last year.
03:09We have had really quite substantial slumps, you know, the most since back in 2022, where this trade sort of unwound.
03:17So I don't think it's ever going to be seen necessarily as that sort of pure opportunity again.
03:23But it is a very valuable, you know, part of the market.
03:27It does attract a lot of interest, particularly when risk activity is up.
03:32There was that political charge that we saw when the Trump administration came in.
03:37And perhaps that's being lost now.
03:39So it's difficult to say, obviously, where it will be seen from here.
03:42But certainly there has been a lot of volatility and it is trading very much as a risk sort of asset market.
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