NEWSMAKERS AND MARKET MOVERS. THIS IS THE PULSE WITH FRANCINE LACQUA.
WELL, GOOD MORNING, EVERYONE. WELCOME TO "THE PULSE." I'M FRANCINE LACQUA HERE IN LONDON. AFTER MONTHS OF INTERVIEWS AND EXPECTATION, PRESIDENT TRUMP WILL ANNOUNCE THE NOMINEE. KEVIN WARSH WOULD SUCCEED JEROME POWELL WHO HAS BEEN CRITICIZED NOT CUTTING RATES FASTER. PRESIDENT TRUMP HAS BEEN SEARCHING FOR A UNICORN LOYALIST AND IN THE PRESIDENT'S MAGA BASE AND GET PAST THE SENATE CONFIRMIZATION. DOES KEVIN WARSH TICK ALL THOSE BOXES?
YES, HE PROBABLY DOES. SO I THINK THE FIRST THING TO SAY IS HE'S ACTUALLY A VERY ORTHODOX CHOICE. HE SERVED ON THE BOARD OF GOVERNORS, HE'S A TRAINED LAWYER AND HAS BEEN AROUND FINANCE MOST OF HIS LIFE. KEVIN WARSH, IF NOMINATED WILL FACE QUESTIONS OF HIS READINESS TO DEFEND THE CENTRAL BANK WHICH HAS BEEN UNDER ASSAULT FROM THE TRUMP ADMINISTRATION. AND SHOULD PRESIDENT TRUMP NOMINATE KEVIN WARSH, THAT WOULD GO NO FURTHER THAN THE BANKING COMMITTEE THAN AN OPENING INVESTIGATION FROM THE D.O.J., INTERIM JEROME POWELL IS SOLVED BECAUSE SENATORS ON THE BANKING COMMITTEE, THOM TILLIS SAID HE'LL BLOCK IT UNTIL THAT INVESTIGATION IS PUT TO THE SIDE.
THANK YOU. THIS WITHOUT A DOUBT IS THE STORY OF THE DAY BUT APPLE ALSO HAS DELIVERED RECORD QUARTERLY PROFIT AND BETTER THAN EXPECTED FORECAST DRIVEN BY STRONG DEMAND FOR THE IPHONE 17 BUT WARNED RISING COSTS COULD EAT INTO MARGINS. LET'S BRING IN OUR SENIOR STRATEGIST. NEIL, THANKS FOR JOINING US. IPHONE SALES A HIGHLIGHT FOR APPLE BUT ALSO THERE WERE WEAK SPOTS.
TAKE A STEP BACK AND LOOK AT THE FACTS. RECORD IPHONE QUARTER. THEY ALSO DELIVERED THE FASTEST REVENUE GROWTH QUARTER FOR 16 QUARTERS AND GUIDED THE MARCH QUARTER ON THE TOP LINE GROWTH 13% TO 16%, REPRESENTING THE BEST MARCH SINCE 2021. GROSS MARGINS IN THE QUARTER WERE VERY STELLAR AND WE LOOK AT THE MID POINT GUIDANCE AND THEY HAD HIGHER GROSS MARGINS THE FOLLOWING QUARTER. THE CONCERNS PEOPLE ARE TALKING ABOUT WAS RAISED ON THE CONFERENCE CALL AND THIS RELATES TO MEMORY AND COMPONENT PRICING. NOW, FOR APPLE ITSELF IT PROBABLY HAS THE GREATEST PRICING POWER OF ANYONE ON THIS PLANET AND IT'S HIGHLY THE CONSUMER WILL WEAR THE COST INCREASE WHEN IT COMES THROUGH AS WE'LL SEE THE INCREASE OF THE IPHONES IN FUTURE CYCLES. APPLE ONLY GUIDES ONE QUARTER AT A TIME AND GUIDES TO A ROBUST SET OF RESULTS. THE PRICE ACTION AFTER HOURS IS ACTUALLY IN LINE WITH WITH A WE'VE SEEN HISTORICALLY. APPLE ACTUALLY ONLY MOVES ON AVERAGE BY 3% THE DAY AFTER EARNINGS. IT ISN'T TYPICALLY A VOLATILE PRINT IN CONTRAST TO WHAT WE'VE SEEN OF THE OTHER MAG 7 STOCKS YESTERDAY BEING A CASE IN POINT. BUT IS THE MEMORY FUNCTION ONE THAT PEOPLE --
WE'RE ALSO HEARING THROUGH OUR OWN REPORTING THAT ELON MUSK MAY BE TRYING TO CONSOLIDATE HIS TECH EMPIRE. WHAT OPTIONS DOES HE HAVE?
IT'S VERY INTERESTING, BLOOMBERG REPORTED THE OF TENSION OF THE I.P.O. OF SPACE X AND NOW WE'RE SEEING STORIES OF END OF LIFE CYCLE WITH TESLA PRODUCTS HISTORICALLY WHICH THE VERY OLD NOW MODEL S, IT'S BEEN 12 YEARS IN PRODUCTION. AND IF YOU THINK ABOUT IT, YOU KNOW, WE'RE TALKING ABOUT POTENTIALLY A SPACE X VALUATION OF $1.5 TRILLION. IF THAT WAS FOLDED INTO TESLA, YOU'D BE LOOKING AT A MARKET CAP OF AROUND ABOUT BASICALLY DOUBLING THE SIZE OF TESLA $3 TRILLION AND OBVIOUSLY WOULD PUT IT RIGHT UP THERE IN THE TOP FIVE OR SIX COMPANIES IN TERMS OF THE U.S. MARKET CAP WITHIN THE S&P 500 AND IF YOU FOLD IN XAI AS WELL WHICH IS MUCH MORE DIFFICULT TO GET FINANCIALS AROUND THAT PARTICULAR BUSINESS BUT THE IDEA OF TESLA MORPHING INTO A MORE COMPLETE TECH COMPANY INSTEAD OF PURELY BASED ON THE E.V. CYCLE MAKES STRATEGIC SENSE AND I TALKED TO UP INVESTORS AND SAID WOULD BE A WELCOMED DEVELOPMENT FOR THE MUSK EMPIRE.
BLOOMBERG STRATEGIST. AND KEVIN WARSH WILL BE THE PICK TO REPLACE CHAIR POWELL. THANK YOU BOTH. A LOT GOING ON WITH GOLD. OVERALL, KEVIN WARH IS PRIORITIZING THE MARKETS IS IT BECAUSE THEY WERE TOO EXUBERANT EXPECTING CUTS.
KEVIN WARSH, IS A INTELLECTUAL HEAVYWEIGHT AND IS A UNPREDICTABLE CHOICE AND HE HAS ORTHODOX HISTORY AND WAS AT THE FED 2006-2011 AND HAD A HAWKISH FELT AND HE LEFT THE FED AFTER HE DISSENTED AFTER THEY BELIEVED THEY HAD DONE QE-2 AND COMES FROM A ORTHODOX HISTORY AND SUBSCRIBING ACTIVELY TO MORTON FRIEDMAN. HE HAS IN MORE RECENT DAYS ACTUALLY ARGUED QUITE FORCIBLY FOR LOWER INTEREST RATES BECAUSE HE'S TAKEN THE LINE GOVERN MIRREN HAS IS THAT THE ECONOMY IS UNDERGOING A PROFOUND A.I. TRANSITION AND INFLATION IS GOING TO BE MUCH LOWER. IT'S QUITE UNCLEAR, ACTUALLY, WHAT HE WILL DO IF ELECTED FED CHAIR.
IS THERE A SENSE HE ALIGNS WITH WHAT PRESIDENT TRUMP WANTS?
IT'S HARD TO KNOW BECAUSE IS HE A INTELLECTUAL HEAVYWEIGHT AND HAS MEMBERS OF THE F1C AND HE HAS DISRUPTIVE VIEWS AND IS TAKES A POSITION ON A.I. AND USING SOME SORT OF FUNDAMENTAL, BUT YET I HAVE TO SAY THE STRUCTURE OF INTEREST RATES SHOULD BE LOWER BECAUSE OF WHAT WE'RE UNDERGOING AND THE CHALLENGE WILL BE NOTE ONLY CUTTING INTEREST RATES BUT IF HE CAN LEAD THE REST OF THE BOARD AND CAN HE GARNER AND BRING THE REST OF THEM WITH HIM BECAUSE HE WILL NEED TO DO THAT.
WE'LL GET TO THE FED IN A SECOND BUT THE BIG STORY WHAT WE'VE SEEN IN COPPER AND GOLD HAS BEEN EXTRAORDINARY BECAUSE OF THE SHEER AMOUNT OF VOLUME TRADING. IS THAT AWAY FROM DOLLAR, IS IT AWAY FROM AND ASETTE, WHAT KIND OF PLAY ARE THESE?
IT'S A COMBINATION OF THING AND IF WE TAKE GOLD IT'S DRIVEN BY PEOPLE'S DESIRE TO DIVERSIFY AWAY FROM DOLLAR ASSETS AND DRIVEN BY CENTRAL BANK BUYING. WE'VE SEEN SIGNIFICANT BUYING OF BANKS INCLUDING THE POLISH CENTRAL BANK AND BRAZIL AND CHINA ESPECIALLY AND IN THIS UNCERTAIN WORLD, THE GEOPOLITICAL UNCERTAINTY WE HAVE, I THINK A LOT OF CENTRAL BANKS TAKE THE VIEW THEY WANT TO BE LESS CONCENTRATED ON THE DOLLAR SO THAT CERTAINLY IS A MACROTREND AND IT'S BEING SUPPORTED BY A LOT OF RETAIL INTEREST IN GOLD AND FROM CHINA, AS THERE HAS BEEN A LOT OF INTEREST IN METALS INVESTMENTS IN CHINA WHICH AGAIN IS DRIVEN BY SOME OF THE SAME CONCERNS AND TRENDS AND YOU PUT THOSE THINGS TOGETHER AND THERE HAS BEEN THIS HUGE MOVE IN THE GOLD PRICE AND EVEN AFTER THE CORRECTION TODAY, UP 18% THIS YEAR AND 81% THE PAST 1 MONTHS AND IS EXTRAORDINARY MOVES IN THE METALS MARKET.
A MOVE AWAY FROM RISK AND THE ULTIMATE SAFE HAVEN, WHAT RISKS ARE YOU SEEING OUT THERE?
I WOULD SAY STRIPPING EVERYTHING BACK, WHAT WE HAVE TODAY THE BIGGEST RISK IS THE UNSUSTAINABLE FISCAL TRAJECTORY FOR THE WORLD ECONOMY.
NO ONE IS PAYING ATTENTION TO.
NO ONE CARES ABOUT, ACTUALLY. GOLD IS REFLECTING THE FACT THERE IS NO GOVERNMENT HERE TRYING TO ACTUALLY BALANCE THE WEEKS FOR THE LONG TERM AND GOLD IS BASICALLY SAYING WE'LL REALLY REALIZE INFLATION OVER THE NEXT DECADE OR TWO AND BE MUCH HIGHER AND PEOPLE DON'T SEEM TO REALLY CARE FOR THAT SO I WOULD SAY WE HAVE POPULIST PRESSURE TO INCREASE SPENDING AND POOP LIST PRESSURE TO CUT TAXES AND GOVERNMENT SPENDING IS NOT CONSTRAIN AND BEYOND THE GEOPOLITICAL RISKS AND FRAGMENTATION OF THE WORLD ECONOMY, GOLD QUESTIONS FIAT CURRENCIES.
GLOBAL SUPPLY CHAIN RISK IS ON THE TABLE AND WE FORGOT ABOUT IT AND WAS MID 2025 AND ARE YOU WORRIED 2026 THEY COME BACK WITH A VENGEANCE AND IT HAS WORRIED FOR INFLATION AND FISCAL?
YES. I WOULD SAY THE WHOLE SORT OF GEOPOLITICAL RISK WE'RE EXPERIENCING, MARK CARNIE'S SPEECH LAID THAT BEAR IN TERMS OF SAYING IT HAS CHANGED AND IT WILL FRAGMENT AND BE LOCALIZED FOR SECURITY REASONS AND LEAD TO HIGH INFLATION AND IT'S NOT CLEAR IT WILL IN 2026 BUT BY 2030 WE ARE LIKELY TO SEE HIGHER LEVELS OF INFLATION COMING FROM SUPPLY CHAINS AND INFLATION VOLATILITY.
DO YOU SEE THAT PLAYING OUT ON THE COMMODITIES OR WILL WE SEE SUPPLY CHAINS TESTED?
LET'S TALK ABOUT COPPER, IN KEY INDUSTRIES AND CHINA TAKES HALF THE WORLD'S COPPER SO IT'S INCREDIBLY KEY TO THEIR ECONOMY AND YOU KNOW, IT'S A RECORD IT HIT MORE THAN 14,000 AND MANY PEOPLE HAVE BEEN HIT HIGHER BUT OBVIOUSLY THE WEAKER DOLLAR IS SUPPORTIVE OF COMMODITIES BUT THIS IS REALLY DRIVEN BY FUNDAMENTAL SUPPLY AND DEMAND, THE FACT COPPER SUPPLY IS NOT AS STRONG AS IT HAS BEEN AND THAT DEMAND IS BEING DRIVEN BY MANY OF THE INDUSTRIAL TRENDS WE'VE SEEN, WHETHER THAT'S THE ELECTRIFICATION OF THE POWER GRID AND MOVE TO E.V.'S AND THE CONSTRUCTION OF DATA CENTERS WHICH ARE SUPPORTIVE OF COPPER AND MANY THINK PRICES WILL CONTINUE TO STAY ELEVATED AND OF COURSE THAT WILL HAVE AN INFLATIONARY IMPACT.
YOUR POINT ABOUT FISCAL, ARE YOU EXPECTING A BIG MARKET EVENT OR SOMETHING GOING WRONG OR DO COUNTRIES REALIZE BEFORE SOMETHING UGLY HAPPENS?
I THINK WE HAVE THE SITUATION GRADUALLY AND NO ONE CARES AND ONE DAY WE'LL WAKE UP AND THINK ABOUT IT. WE HAVE A WORLD ECONOMY GROWING FAIRLY ROBUSTLY AND FISCAL STIMULUS COMING IN THE U.S. AND JAPAN AND IN THE U.K. BECAUSE WE HAVE THE STRAIN LATER ON IN THE FUTURE YEAR. WE HAVE A FISCAL STIMULUS ACROSS THE DEVELOPED WORLD AT A TIME THE WORLD IS GROWING FAIRLY ROBUSTLY. I WOULD SAY IT CONTINUES TO TICK UP, FISCAL RISKS TICK UP AND AT ONE DAY I WOULD SAY AT SOME POINT IN THE FUTURE WHEN DEBT TO G.D.P. RATIO, IT'S TOUGH TO PREDICT WHEN WE ALL START TO CARE.
GERMANY SPENDING IS LINKED TO DEFENSE AND SHOULD WE LOOK AT THE WAR ECONOMY OR DOES IT GO BACK TO COVID?
COVID, GOVERNMENTS HAD REASON TO SPEND AND BECAME COMFORTABLE EXPANDING THE FOOTPRINT OF THE ECONOMY AND I THINK THAT'S THE LESSON WE'VE GOT AND YOU KNOW, THAT'S NOW BEEN AMPLIFIED WITH MORE POPULIST ECONOMIES IN JAPAN WE'RE GETTING A E.A.V. CUT CUT AND JAPANESE INFLATION HAS BEEN INCREDIBLY HIGH AND LAST YEAR THE NOMINAL G.D.P. WAS THE HIGHEST OF THE WORLD. IT'S NOT QUITE RATIONAL AND SOMEONE LIKE KEVIN WARSH SAYS FISCAL SPENDING HAS CONSEQUENCES FOR INFLATION. THE REAL QUESTION FOR KEVIN WARSH, AND IF PRESIDENT TRUMP GIVES THE $2,000 CHECKS TO AMERICAN HOUSEHOLDS WILL HE GO BACK TO HIS ORTHODOX ROUTE AND SAY THAT'S A PHYSICAL EXPANSION AND WE NEED TO RAISE INTEREST RATES AND WHAT THE KEVIN WARSH OF 2024 WOULD HAVE GONE AND NOT QUITE SURE HIS RECENT COMMENTS JUST ARE A LITTLE BIT MORE NUANCED, SHALL WE SAY.
IT'S VERY DIPLOMATIC. WHAT WE KNOW ABOUT CHINA AND HOW THEY'RE BUYING UP COMMODITIES, AGAIN, I DON'T KNOW IF THERE'S A FLARE-UP BETWEEN THE U.S. AND CHINA BECAUSE OF WHAT'S HAPPENING IN THE OIL MARKET OR THE TWO COUNTRIES HAVE FOUND A WAY FORWARD?
LET'S PUT IT IN THE CONTEXT OF OIL. OIL HAS BEEN MUCH STRONGER THAN PEOPLE EXPECTED AND I THINK THAT REFLECTS A YOU FOR A -- A FEW THINGS. THE GLOBAL ECONOMY IS GROWING QUITE WELL AND SUPPORTIVE OF OIL DEMAND AND OIL PRICES AND DOES OBVIOUSLY REFLECT SOME OF THE GEOPOLITICAL RISKS IN THE WORLD AND HAD A BIG BOUNCE IN OIL PRICES BECAUSE OF THE POTENTIAL FOR U.S. MILITARY ACTION AGAINST IRAN BUT IT MAY ALSO REFLECT CHINA HAS BEEN TAKING ADVANTAGE OF THIS WEAK OIL MARKET TO AUGMENT ITS OIL RESERVES AND MAKE SURE IT HAS THE SCALE IT NEEDS TO AFFECT THIS ECONOMY IN THESE MORE UNCERTAIN GEOPOLITICAL TIMES AND THINK IT'S AN INTERESTING INSIGHT TO HOW CHINESE THINKING IS PLAYING INTO A MAJOR ECONOMY.
YOUR TAKE ON CHINA? IS IT DEFLATIONARY STORY BECAUSE WE'RE IMPORTING DEFLATION OR FOCUS ON A.I. AND HAVING THESE DEFLATIONARY INPUTS BECAUSE OF A.I.
IT'S IMPORTANT FOR SUPPLYING THE COMPONENT ALSO OF THE A.I. BUILDOUT AND ITS EXPORTS ARE GROWING, IN EXCESS OF $1 TRILLION. ULTIMATELY CHINA IS A INCREDIBLY DEFLATIONARY IN-HOUSE FOR THOSE THAT HAVEN'T PUT TARIFFS ON. AND IF YOU THINK OF P.P.I., THAT'S FALLEN CONSIDERABLY THE PAST FEW YEARS AND IN EUROPE P.P.I. HAS GONE UP AND EUROPE LOST TRAUMATIC OPTIONS. AND IT'S GAINING COMPETITIVENESS AND IN EMERGING MARKETS ASIA ACTS AS A LARGELY DISINFLATIONARY CHOICE AND WHAT DOES EUROPE DO WITH THESE OPEN MARKETS.
THANK YOU FOR JOINING US. COMING UP, MORE ON THE FED, DOLLAR, AND GOLD WITH PATRICK GEORGE, GLOBAL HEAD OF MARKET AND SERVICE SECURITIES AT HSBC. THAT'S NEXT AND THIS IS BLOOMBERG. ♪
IT'S BEEN ANOTHER WEEK OF MARKET MOVING HEADLINES FROM COLOSSAL SPENDING TO THE E.U.-INDIA TRADE DEAL AND PRESIDENT TRUMP WILL ANNOUNCE HIS FED PICK IN THE NEXT COMING HOURS AND TRIGGERED ANOTHER WEEK OF GOLD AND COMMODITY MARKETS. PATRICK GOLD HEAD OF SECURITY SERVICES AT HSBC JOINS US TO PUT THINGS IN PERFECTIVE AND DISCUSS WHAT HE'S HEARING FROM CLIENTS. GREAT TO SPEAK TO YOU. THANKS FOR COMING ON. TELL ME HOW THE CLIENTS ARE MOVING THROUGH THIS VOLATILITY? IT'S NOT THAT THE PRICES ARE GOING HIGHER, IT'S JUST THAT THERE'S MORE TRADING. ARE PEOPLE NERVOUS AND TRYING TO FIGURE OUT WHAT'S HAPPENING OR JUST OPPORTUNITIES?
FOR SURE. IT'S BEEN A TURBULENT COUPLE YEARS. AND WHAT ARE THE RISKS KEEPING EVERYONE WORRIED, I WOULD HAVE TOLD YOU GEOPOLITICS, GEOPOLITICS BUT BEGINNING IN 2026 WE ADD TO THIS ANOTHER LAYER OF LOCAL POLITICS. EVERYTHING IS THERE, ALL THE INGREDIENTS ARE THERE TO MAKE THE MARKET MORE ONE WAY OR THE OTHER AND WE'VE SEEN IT ACROSS ALL ASSET CLASSES. YES, WE'VE SEEN THE RISE OF COMMODITIES AND EQUITIES AND IGNORING ALL THE RISKS AT THE MOMENT AND VOLATILITY IN THE BOND MARKET AND VERY TIGHT SPREAD IN THE CREDIT MARKET. AGAIN, THAT MADE IT SO FAR A VERY STRONG MARKET FOR INVESTORS BUT YES, THE MARKETS ARE NERVOUS AND VOLATILE AND INVESTORS AT THE MOMENT HAVE BEEN IGNORING THE EMERGING RISKS.
WHAT DO YOU SEE AS THE MAIN EMERGING RISKS?
THE MAIN RISK IS THE UNCERTAINTY ON ECONOMIC DATA AND CONTINUES WITH GEOPOLITICAL TENSION, TENSION BETWEEN THE CHINA AND THE UNITED STATES AND TENSION BETWEEN THE WEST AND THE REGION OF CONFLICTS AND HOW THE ONE IN IRAN COULD FOLD AND THE NEXT PICK OF THE FED, THE INDEPENDENCE OF THE FED, ALL THOSE WILL BE QUESTIONS THE INVESTORS ARE ASKING AT THE MOMENT.
YOU LOOK AT THE MARKETS, IS THIS THE NEW NORMAL WE'LL HAVE MORE STRESS OR RISKS OUT THERE OR DO YOU SEE A PERIOD OF INSTABILITY AS WE TRY AND FIGURE THINGS OUT AND LEVELING OFF?
THAT'S BEEN THE THE NEW NORMAL THE PAST THREE YEARS AND WE'VE SEEN A PERIOD OF TENSION BUT OVERALL THE ONSLAUGHT OF EVENTS AND NEWS HAS BEEN THERE AND FOR 2026 WILL BE AN EVENTFUL YEAR AND WHAT DOES IT MEAN FOR WHAT YOUR CLIENTS WANT, WHAT DO THEY ASK? THEY ASK FOR TOP IDEAS AND WHAT ARE OUR VIEWS ON THE MARKET AND I THINK THE CLIENTS HAVE BEEN ENJOYING THE VOLATILITY AND THE CLIENTS, WE'VE SEEN A DRAMATIC ASSET SHIFT IN 2025, I THINK WE ARE POISED FOR MORE ASSET AND ALLOCATION CHANGES IN 2026 AND AT THE MOMENT THE CLIENTS HAVE BEEN RIDING THE MARKET AND IGNORING THE NEWS. THEY'VE BEEN IGNORING THE FISCAL IMBALANCES WE'VE SEEN IN THE MARKET AS THE PREVIOUS HOST SAID AND WE NEED TO WATCH CAREFULLY THE NEXT PHASE.
DOES THE DOLLAR WEAKEN FROM HERE AND DO YOU DIVERSIFY YOUR PORTFOLIOS?
THE WEAKNESS OF THE DOLLAR HAS BEEN A TREND THE PAST 12 MONTHS AND DRIVEN BY GEOPOLITICAL UNCERTAINTY, THE UNCERTAINTY ABOUT TARIFFS, THE -- IT'S BEEN DRIVEN BY DIVERSIFICATION IN FOREIGN EXCHANGE RESERVE SO THE DOLLAR TREND, WE MIGHT SEE A CORRECTION BECAUSE IT'S BEEN VERY SHARP THE PAST FEW MONTHS AND THE TREND OVERALL IS THERE FOR A DOLLAR WEAKNESS IN 2026.
HOW DO YOU BALANCE THE VALUE OF THE DOLLAR BUT GIVING YOURSELF THE MEANS AS THE U.S. TO SERVICE A LONG TERM DEBT?
LOOK, THE FISCAL IMBALANCE HAS BEEN THERE AND IT'S A BIG QUESTION ON EVERYONE'S ASK AND NOT ABOUT U.S. BUT ALSO EUROPE AND THEY'RE EMBARKING ON A MASSIVE TRANSFORMATION FROM A STRUCTURAL TRANSFORMATION, MILITARY SPENDING AND THERE'S A LOT OF MARK OP FISCAL IMBALANCES AND IN THE U.K. AND FRANCE FRANCE AND GENERALLY SPEAKING IT'S BEEN REFLECTED IN THE PRICE OF GOLD WHICH THE CORRECTION IS PROBABLY WARRANTED. BUT THE UNCERTAINTY OF DEFINITELY WAITING ON THE BOND MARKET. I DO BELIEVE WE'LL BE FLIRTING WITH THE DANGER ZONE OF 5% WHEN WE GO ABOVE THE 20 AND 30 YEARS AND WE SHOULD BE WATCHING VERY CAREFULLY THE TREASURY MARKET.
THERE'S BEEN A LOT IN TRADE DEALS THAT HAVE BEEN YEARS IN THE WORKING BUT WE FOUND OUT ABOUT THEM THE PAST COUPLE WEEKS AND IT'S INDIA AND DO YOU EXPECT TO GROW IN SOME OF THESE MARKETS?
IT'S A VERY GOOD QUESTION. THE UNCERTAINTY AND GEOPOLITICAL TENSION AND THE UNCERTAINTY BETWEEN CHINA AND THE U.S. AND UNCERTAINTY GENERALLY SPEAKING HAS OPENED NEW OPPORTUNITY. WHAT WE'VE SEEN THE PAST FEW YEARS IS AN EMERGENCE OF A NEW CORRIDOR OF THREAT WHICH LED TO A NEW CORRIDOR OF FINANCE AND TRANSACTION THERE. WHAT WE'VE SEEN THE PAST FEW YEARS IS PRECOVID AND ACCELERATED WITH COVID AND THE TARIFF ON UNCERTAINTIES WE'VE HAD BUT WE'VE DEFINITELY SEEN THE EMERGENCE OF NEW CORRIDOR OF TRADE AND SEEN IT BETWEEN CHINA AND INDIA AND THE WEST. WE'RE GOING TO SEE MORE NUANCE AND THIS IS NEW BUSINESS, IT'S GOOD BUSINESS. WE HAVE EVIDENCE, ALSO. IF I LOOK AT OUR OWN BUSINESS AND SINGAPORE AND TAIWAN OFFICE FIVE OR SIX YEARS AGO WE USED TO TRADE FIVE CURRENCY BUT TODAY WE TRADE 18 CURRENCIES WITH, THIS IS NOT SPECULATIVE BUT AMONG COUNTRIES IN THE REGION.
WHERE DO YOU SEE THE MOST GROWTH IN TERMS OF YOUR UNIT AND DOES THAT MEAN HIRING, HOW DO YOU SEE OPPORTUNITIES?
WITHIN MY UNIT WE SEE OPPORTUNITY DEFINITELY IN EVERYTHING TRANSACTION BANKING DRIVEN AND SEE A LOT OF OPPORTUNITY IN OUR FOREIGN EXCHANGE BUSINESS AS WE SEE THE EMERGENCE OF NEW TRADE, THIS NEW CORRIDOR OF TRADE AND FINANCE AND DEFINITELY SEE EMERGENCE AND GROWTH IN OUR FOREIGN EXCHANGE BUSINESS AND SECURITIES BUSINESS AND IN OUR TRADE FINANCE BUSINESS, OUR PAYMENT BUSINESS. ALL THOSE WOULD BENEFIT TRAUMATICALLY FROM THIS UNIVERSE OF TRADE. THE GEOPOLITICAL RISK COULD BE SEEN AS A BUSINESS OPPORTUNITY AND HOW WE'RE LOOKING AT IT.
THANKS SO MUCH. COMING UP NEXT, EURO SEES THE IMPACT OF STAGGERING MARKETS AND DISCUSS THE OUTLOOK FOR NEW LISTINGS WITH THE CHIEF EXECUTIVE. IT WAS A BIG DAY AND HOPING FOR A QUIET FRIDAY, SOME OF US WERE AND COULD BE AN EPIC FRIDAY, THE TRUMP ADMINISTRATION PREPARING FOR THE NOMINATION OF THE FED AND UNDERSTAND THROUGH OUR SOURCES THE PRESIDENT IS READY TO NOMINATE KEVIN WARSH TO BE THE NEXT FEDERAL RESERVE CHAIR. MORE ON THAT SHORTLY AND THIS IS BLOOMBERG. ♪
GOOD MORNING, EVERYONE. WELCOME TO "THE PULSE," I'M FRANCINE LACQUA IN LONDON AND THESE ARE YOUR TOP STORIES. PRESIDENT TRUMP WILL NAME HIS CHOICE FOR THE NEXT FED CHAIR. BLOOMBERG UNDERSTANDS KEVIN WARSH IS SET TO WIN THE NOMINATION. PAPLE COULD DELIVER RECORD SALES BUT RISING COSTS COULD EAT INTO MARGIN. A ONE HOUR DELAY TO THE START OF TRADING ON THE LONDON METAL EXCHANGE CAUSES CONFUSION AMONG TRADERS CAPPING A WEEK OF INTENSE VOLATILITY. FOR THE FIRST TIME SINCE EURONEXT'S OWN POLITICAL OFFERING COMPANIES RAISED LESS THAN $1 BILLION ACROSS ITS EXCHANGES IN 2025. THE EURO IS OFF TO A CHARGE AFTER ANNOUNCED IN AM SISTER DOWN BY C.X.D., MUNITION MAKER. THANKS FOR JOINING US.
