00:00My concern is mostly on the ancillary things happening on AI.
00:03I think there is a very strong, and it's a renaissance-like moment for the economy.
00:08AI is really going to change the service economy.
00:10But I see things that are weird.
00:13First, of course, the debt expansion loop that is creating these monetized CapEx type of moments.
00:18We see actors that are very, you know, some of them, Apple, Microsoft, not doing much,
00:22and others doing too much.
00:24We see a lot of psychology around this AI.
00:26You know, we don't really know what is going to be the adoption and the impact on the real economy,
00:30but the market is already being very optimistic, especially on productivity gains,
00:33when it's going to be a bit of a hybrid situation.
00:35So for me, that's where I see the signs that there is a bit of exuberance.
00:39The good news, I would say, is that markets are seeing that.
00:42When you look at the corporate spreads in this sector, especially the hyperscalers,
00:45they tend to be a bit more cautious than before, and I think that's a good news.
00:48Will it be enough? We will see, because I still see the CapEx in the U.S. skyrocketing.
00:54So you don't see complacency in the markets when it comes to the AI trade then, Ludovic?
01:01I don't see complacency on the debt market, on the equity market.
01:05I think it's really strong.
01:06I, for example, think that the emerging market equity stocks are looking much better
01:10because of the semiconductor, you know, important chain, you know, link in the supply chain.
01:16But in the U.S., I think the markets have been extremely strong.
01:19I don't know if it's a bubble territory.
01:21It's not enough to call it a bubble.
01:23It's really about the many factors.
01:25The investigation is more about what comes around that looks a bit strange,
01:30especially on data centers, for example,
01:31when you look at the risk of obsolescence of some of these data centers,
01:34when you look, indeed, into this monetizing of the CapEx type of move.
01:37If you issue debt to pay your shareholders, that doesn't look very good to me.
01:42So that's the type of signs we're looking at.
01:44So on the bond side, I think there is still a lot of vigilantes.
01:47On the equity side, I still think it's, you know, it seems like the sky is the limit.
01:50And, of course, that is something that is not the case.
01:54Is this a better moment for European equities?
02:00I think European equities clearly can do slightly better.
02:03I think they have stronger fundamentals, especially when it comes to the debt side,
02:08when it comes also to now the energy crisis being behind.
02:12The problem, as we know, is that everything is about the AI dividend.
02:15And so the European companies are left with adoption.
02:18I think what happened with AI, you know, our AI, your problem,
02:21not to quote Jim Connolly in a bad way, you know, our dollar, your problem.
02:25I think it was good news that Fable 5 and Mythos were now available again.
02:28Will it be enough?
02:29Can Europe really be the strongest adopter and differentiate itself?
02:33I doubt it.
02:34I think it's going to be a bit of a fragile, I would say, way for the equity markets in
02:39Europe
02:39and for companies, obviously, in Europe to benefit from the AI dividend.
02:43But it's certainly going to be a tailwind.
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