Single Best Idea with Tom Keene: Dan Ives & Matt King
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The feeling is MassMutual. Learn more at massmutual.com slash wealthmanagement. Time is precious, and so are our pets. So time with our pets is extra precious. That's why we started Dutch. Dutch provides 24-7 access to licensed vets with unlimited virtual visits and follow-ups for up to five pets. You can message a vet at any time and schedule a video visit the same day. Our vets can even prescribe medication for many ailments, and shipping is always free.

With Dutch, you'll get more time with your pets and year-round peace of mind when it comes to their vet care. Bloomberg Audio Studios. Podcasts. Radio. News. A single best idea and an extraordinary Wednesday. Just to paint the picture for you, Asian markets open at 7 p.m. 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. And there's a little bit of tension out there. And you get a couple hours sleep and you see what gold's doing and tension overnight. And then somewhere in the vicinity of 3 a.m., 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 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 write-down. It was a good time to catch up with Daniel Ives. He's at Wedbush. He's been an Uber bull on Apple. He's been correct.

And we wanted to get a relook at Apple and also the underlying force of free cash flow for the Mag 7. Even, you know, when you...

scenario and sort of put pressure on the model and stress test that cash flow comes down 5%, maybe 7%. The reality is, is that a lot of that on Apple, I think starts to now get factor in. It comes down to with China numbers, unless these tariffs in their current state stick for 90 days and longer,

then to me, Apple right here, I mean, is a name you own. Dan Ives, he's just brilliant, particularly the relationship of Apple and Mr. 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 those is Matt King. He's from England.

out of Cambridge, and there was a period where he was absolutely definitive at J.P. Morgan, and particularly at Citigroup, in providing strategy. It's inaccurate to say he predicted Lehman, but he was one of the people way, way out front.

on the 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. People have been excited about the unwinded basis trades and some of the moves in swap spreads and pointing to hedge funds. And yes, there has been this big pickup in leverage and repo activity, especially for multi-strat 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 has poured in over the last decade or so. And for me, there is this scary thing that I 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 U.S. government,

But it's not the financial leverage 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. Matt King of Satori really can't say enough about that. I know Paul Sweeney's really focused on private credit is a new shiny thing.

We'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. 99.1 FM in Washington, 92.9 in Boston, and Bloomberg 1130 in New York, and all the other ways you listen each morning. Out on YouTube podcasts, this is Single Best. I do.

Time is precious, and so are our pets. So time with our pets is extra precious. That's why we started Dutch. Dutch provides 24-7 access to licensed vets with unlimited virtual visits and follow-ups for up to five pets. You can message a vet at any time and schedule a video visit the same day. Our vets can even prescribe medication for many ailments, and shipping is always free. With Dutch, you'll get more time with your pets and year-round peace of mind when it comes to their vet care.