00:00The markets, the hyperscalers were priced to perfection when we were in most of last year
00:05thinking this AI rollout is going to be successful and quick. And I think it's the quick part that
00:15is looking very sticky because we're getting these significant bottlenecks in the cost of
00:20production without, I would argue, the improvement in the quality of the product. So you see it as
00:25a positive development, the capex restraint is now being rewarded by investors. That's
00:30exactly what we were just hearing from the LSEG boss, David Trimmer.
00:33Yeah, I think investors are absolutely right to be picking into this story and the price
00:38to perfection. How easy is this going to be? You know, we know from former technological
00:45excitements that the question of who buys this product, whether it's enterprises or
00:52consumers, because consumers don't pay. Enterprises pay for products. How much they're willing
00:58to pay and the cost of production that the where the market was priced this time last year
01:04was too optimistic on all counts. So I think, yes, the markets are asking for the hyperscalers
01:10to show a little bit more proof in the pudding. Last year it was, oh, wow, you've raised your
01:15capex numbers. You're convinced. I must be convinced. Now investors are saying, hmm, I need to see
01:21the ROI on this capex before I want you to do more. So given your skepticism about mega cap
01:27tech, how much further does the rotation away from U.S. stocks have to go? You know, as I
01:32say, fundamentally, the answer to the question of is this going to change the world? Is there
01:36going to be the ROI? None of us know, no matter if you're spending all of your days. So it's
01:40not
01:41that I'm deeply pessimistic about this. To me, it's just there are so many unknowns.
01:46So I think the allocation that I don't want 30 percent of my U.S. allocation in a part of
01:54the
01:54market where there are enormous questions. So I think the rotation still has a lot further to go.
02:00I think that rotation is within the U.S. market. It is comforting to at least see there are some
02:06other options in the U.S. market. I think the U.S. economy will stay strong, which gives that
02:10rotation legs. But I'm still more optimistic about Europe here. You know, Europe is not priced for
02:17perfection. When I was talking about European outperformance last year, I was laughed out of
02:22the room. Now at least people will listen. But there's still a heck of a lot of skepticism. There
02:28is still a belief that Europe is structurally incapable of growth, of growing corporate earnings.
02:34And I think that's wrong. I think for the last 10 years, you know, we did ourself a disservice,
02:39an act of self-harm in fiscal policy and regulatory policy. And the tide has changed in Europe.
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