0:00
So, first off, to unpack some of the
0:02
major market movements, we have the
0:04
human Bloomberg terminal, that is Simon
0:06
Hunt back in the studio. Welcome, Simon.
0:09
>> Great to have you back as ever. So, this
0:11
week kicked off in some pretty dramatic
0:13
style with a major fall in the Asian
0:16
markets with the South Korean Kospi
0:18
index experiencing a pretty giant 8%
0:21
plunge. That was one of the worst on
0:22
record for the index. It's a stock
0:25
market which is particularly exposed to
0:28
I believe that Samsung is like the top
0:30
of that. Uh that index, um but Nvidia's
0:33
chief executive, Jensen Huang, has been
0:34
quick to say, "Actually, we shouldn't
0:36
worry. AI is at the very beginning of
0:38
its journey and uh this is a good buying
0:41
Is this a good buying opportunity, or is
0:43
actually this a very worrying sign for
0:47
>> Yeah, well, I mean, that is the the
0:49
trillion-dollar question. Um yeah, it
0:51
was a it was a huge move. I mean, bear
0:53
in mind, most most days, most stock
0:55
markets will move up or down 1 or 2%.
0:57
So, an 8% move in in a single day is
1:00
absolutely huge. Uh and in fact, the
1:02
stock market had to be suspended for
1:03
several minutes. Uh such was the scale
1:05
of the of the move, which is a sort of
1:07
emergency mechanism to stop it cratering
1:09
to zero. So, at least that didn't
1:12
>> Is that sent class as a crash?
1:14
>> I think we are in that territory, yeah,
1:16
because as I say, I mean, you you really
1:17
do not expect experience moves anywhere
1:20
like as big as this. This is one of the
1:22
biggest single-day moves on record for
1:26
>> Why has this happened?
1:27
>> So, I mean, I mean, we've seen the past
1:30
few years, um AI or AI-adjacent stocks
1:34
like on a sort of never-ending rally.
1:37
And without wishing to simplify it down
1:40
to what goes up must come down, uh there
1:42
are questions on every on every
1:44
investor's minds about when will the
1:46
peak of the market be.
1:48
Um and this has coincided with news of
1:51
the uh massive uh you know,
1:54
trillion-dollar IPOs of OpenAI,
1:57
Anthropic, and SpaceX Uh all happening,
2:00
you know, conceivably
2:04
all been announced, you know, within a
2:06
few days of each other.
2:08
Maybe there's a sort of feeling in the
2:11
these companies would only
2:13
seek to do these floats to raise as much
2:17
money as possible. And so in effect,
2:19
they've sort of called the top of the
2:20
market because why else would they
2:21
choose to float now if they didn't think
2:23
this was the absolute top? Ergo,
2:26
the next few months, things will fall.
2:29
That maybe that's maybe part of the
2:31
>> And these are high-wire IPOs. I feel
2:32
like maybe maybe the market is more
2:34
bullish on Anthropic, but the SpaceX
2:37
one, it's been I mean it's it's two
2:38
aspects of Musk's business that's been
2:41
sort of smashed together into a bit of a
2:42
Frankenstein mega IPO. There's also been
2:44
quite a lot of speculation. I know we've
2:45
written about it in our pages about
2:47
OpenAI being pretty heavily leveraged at
2:50
this point and looking like there are
2:52
serious questions about where it's going
2:55
If you were a betting man,
2:57
how how well do you think these IPOs are
2:59
>> I mean might it's it's so hard to to to
3:03
to commentate on because usually IPOs
3:05
are not this big. You know, there are
3:06
companies that are more valuable than
3:09
>> Actually, you very rarely get a
3:11
>> No, no. I mean, you know, you look at
3:13
Google and Microsoft and Apple and they
3:14
they started on the market much smaller.
3:17
So to to start with such huge valuations
3:20
is kind of unprecedented. And so
3:23
you know, it wouldn't be surprising if
3:25
you get a lot of choppiness at the start
3:27
as people try and figure out what these
3:29
companies are really worth.
