00:00Talk about how you, I guess, view the volatility that we continue to see in these AI names,
00:05in the chipmaker names. Is the good news story of Micron's revenue projections enough to sustain
00:12a longer leg of the next rally or should we continue to see a lot of back and forth given
00:18some of the more existential questions over the sector? Good morning, Heidi. Well, I think the
00:24market is obviously very sensitive to the fact you've had a strong run in a lot of these segments
00:28of the sort of up end of the AI supply chain around semiconductors and memory and also very
00:34conscious of the earnings outlooks being very strong as we head into the U.S. earnings season
00:38as well as the ones we got overnight. So the president obviously thinking about the movement
00:43higher in the market is predicated on this earnings strength coming through and so sensitive to the
00:48disappointment that could come on the back of that. You know, our view is that we're still fairly early,
00:53I think, in the AI sort of systematic cycle. I'm thinking about it as more of a secular theme
00:58overall and so it's natural to have some of these bumps along the way. I think it's also a function
01:03of seeing a little bit more repositioning given that we have, you know, some upside coming in on
01:08the economic backdrop with those lower oil prices, a better global growth story and a little bit of
01:14repositioning into some sort of non-AI parts of the market to take advantage of either valuations
01:18or just building in a bit more diversification. So I think it's a relatively healthy move. It does
01:24add that volatility that can be a little bit unnerving but broadly we still see it being
01:29entrained to be a main driver of the markets over the coming six months.
01:35If you take a look at what we're seeing with SK Hynix at the moment at the open jumping 11
01:40% on that U.S.
01:41listing plan, the micron earnings of course, there's almost sort of a very strong correlation there.
01:48What do you make of this potential $29 billion U.S. listing plan? Because there is a situation where
01:54we're seeing potentially some struggles for the domestic market in Korea to be able to
02:00handle the enormity of the demand for companies and tech like SK Hynix.
02:07Yes, certainly companies go to the U.S. because they're looking for that
02:10depth in the capital market that they have there. It's not unusual for companies to list in the U.S.
02:15relative to the domestic market and I think that is just taking advantage of the demand we're seeing
02:19in this part of the market and given that it is going to be a longer term theme we see
02:24playing
02:24through. So obviously there's been lots of concerns around the issuance of equities this year, the rise
02:29in that and also the issuance of investment grade credit. The market has had the ability to absorb
02:34that and we don't see this as being relatively any different to that. There's a lot of money that's
02:38still there still being allocated through pension funds etc which will absorb a lot of this issuance.
02:44So we think it's again just a way of of seeing these companies continue to expand to attract that
02:48capital to allow them to grow and to meet some of this increased in demand for what they actually produce.
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