Single Best Idea with Tom Keene: Dan Ives & Matt King

Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature conversations with Dan Ives & Matt King.

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news, a single.

Speaker 2 (00:15):
Best idea and an extraordinary Wednesday. Just to paint the
picture for you, Asian markets open at seven pm. In all,
not just me, everybody within the Bloomberg world. We're glued
to the wonderful Bloomberg terminal app that's on the cell phone.
Trust me, folks, It's changed my life and everybody else's life.

(00:35):
And there's a little bit of tension out there, and
you get a couple hours sleep and you see what
Goal's doing and tension overnight, and then somewhere in the
vicinity of three am, China comes out with headlines boom boom,
boom boom, and things change and they're changing minute by minute,
headline by headline, and simply today we saw a deterioration

(00:58):
in price around that are individual companies struggling, like Nvidia
coming out with some form of write down. AMD during
the show today coming out with some form of right down.
It was a good time to catch up with Daniel Ives.
He's at Wedbush, he's been an Uber bowl and Apple
he's been correct and we wanted to get a relook

(01:19):
at Apple and also the underlying force a free cash
flow for the mag seven.

Speaker 3 (01:26):
Even you know when you scenario and sort of put
pressure on the model and stress test that cash flow
comes down five percent, maybe seven percent. The reality is
is that a lot of that on Apple I think
starts to now get fact and it comes down to
with China numbers unless these TIFFs in their current state

(01:52):
stick for ninety days and longer than to me at
Apple content right here, I mean it is an Emu
Dan ives.

Speaker 2 (02:01):
He's just brilliant, particularly the relationship of Apple and mister
Cook with Beijing. Really really enjoyed having him in today.
There are names from the past which at one time
were hugely important because of their intellect and their courage
to write and execute strategy that are forever One of

(02:21):
those is Matt King. He's from England, out of Cambridge,
and there was a period where he was absolutely definitive
at JP Morgan and particularly at City Group in providing strategy.
It's inaccurate to say he predicted Lehman, but he was
one of the people way way out front on the

(02:41):
stresses of leverage in the trust market. He spends a
lot of time thinking about fixed income and trust. What
a joy to catch up with Matt King of Satori Insight.

Speaker 4 (02:53):
People have been excited about the online the basis trades
and some of the moves and swap spreads and pointing
to hedge funds, And yes, there has been this big
pickup leverage and reproactivity, especially for multi strap funds, but
I don't think that's the problem here. If anything, I
would say that it's almost a diversifying element relative to
all the long only money that is poured in over

(03:14):
the last decade or so. And for me, there is
this scary thing that sort of all my career, I
focus on the thing that's about to blow up, and
each time the crises seem to get bigger and bigger.
The debt that's out there now is across non financial
sectors as a whole, and more than anything with governments,
including the US government. But it's not the financial leverage

(03:34):
in quite the same way as it was previously, and
on the one hand, that makes it slower burning. But
on the other hand, the feedback loop from markets through
to the economy is larger ever than it's been in
the past.

Speaker 2 (03:46):
Matt king f Story really can't say enough about that.
I know Paul Sweeney's really focused on private credit is
a new shiny thing I'll have to see as we
struggle through this crisis. Thank you for your support and
your commute across the nation. Really appreciate the interest in
ninety nine one FM in Washington, ninety two nine in Boston,

(04:07):
and Bloomberg eleventh three OO in New York, and all
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This is single best idea