00:00We just heard from Treasury Secretary Scott Besant. Are you full of confidence now?
00:04No, I'm not. But, however, I think historically, you know, the history has demonstrated that it is very difficult to
00:12intervene in the market.
00:14However, market will take as the first step of confidence that they will be, he's got a lot of bullets
00:19and he is, you know, he's well liked, well regarded within the markets.
00:24And then he has a focus of getting it down. So, you know, that does send quite a bit of
00:29confidence into the market.
00:31Now, of course, we're seeing a bit of volatility, giving up all the gains. However, we do think that this
00:35is one of the many steps to come.
00:37And then that should alleviate some of the concern for the time being.
00:40There are a lot of other variables in this picture, though, as well, not the least of which companies such
00:44as Broadcom that we mentioned in the introduction,
00:46seeking 60 billion in financing, following on a lot of other companies in this space as well.
00:51Well, how's that clouding the picture and how is this starting to get difficult for the Fed?
00:55Yeah, look, I think the difficulty here is that we are seeing a lot of companies requiring a lot of
01:01debt.
01:01And the difficulty for the Fed is that, you know, you clearly have upward pressure on the yields.
01:06And, you know, if you're going to borrow money and then to buy back the bond, it's going to become
01:12harder for the short term.
01:13At the same time, you have near term, you know, the shorter term is also pressuring higher as well.
01:19So that is the challenge. Now, I think for investors in this sort of environment, you do want to be
01:25mindful of the companies who's requiring a lot of debt,
01:28because these bond yields will stay high for longer, you know, regardless, might take some time to watch through.
01:33So we do think that avoid the businesses that require a lot of funding.
01:37And unfortunately, that actually does, you know, put a lot of those AI, you know, hyperscalers into this picture,
01:44because many of them will have to tap the market in the next few years, just to give you the
01:48amount of commitment that they have to the investments.
01:52Who earns best from all of the spending, particularly when, you know, you're hearing from some commentary that these hyperscalers
01:59are almost insensitive to price at this point to funding?
02:02That's right. So, look, we do think the winners of this whole investment cycle is the companies that are actually
02:09building the cycle,
02:10the companies that actually the pigs and shovels, if you like. I think we spoke about it for many times.
02:15You know, we do think that the chips businesses, the engineers, the, you know, the data center businesses are going
02:21to be the beneficiary of it.
02:22And we are seeing a lot of contracts being rewarded now.
02:25Meanwhile, though, we are seeing a little bit of community pushback and there's a bit more regulation coming in in
02:31terms of data center.
02:32I think this is something to watch. But at this stage, we do think that the whole supply chain is
02:37very, very.
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