00:00 Speaker a
Let’s now welcome Nanacy Curtain Alti Tedderman, the chief global investment official. It is good to see you, Nancy, in the group.
00:07 Nancy Courtine
It is good to be here.
00:08 Speaker a
So we were only talking about this market, and I want to take this, because it was, Nancy, a wild journey. We had the day of editing, headlines, reports, drama, and blood on the streets. Then a noticeable recovery. While we were talking at the top of the show, it is now the S&P 500 positively a year. What do you do? What do you do, how to explain this to your customers?
00:48 Nancy Courtine
Well, first and foremost, we are in the long run, so we remained in this matter as a whole and told us our customers not to panic. Do not try to sell at the lowest level and return again, thank God because you can never predict when you turn the markets. They turn on ten cents. Now, I haven’t seen this week, uh, just surprisingly, Beth was able to accomplish it, ah, in China now. Uh, it is clear that we have this temporary suspension for 90 days. We are a little careful in the short term. Again, we do nothing. Uh, we are in the long run. We think we are in a good position. We are incredibly varied, oh, so our customers really moved through disorders, uh, fine. So, but I think, as you know, we are careful. The markets have moved a lot here. Uh, commercial deals, let’s think about this. Commercial deals against Lewis, because what he obtained with the UK was a five -page agreement, a letter of intent. What happened with the United Kingdom was a small written agreement of five pages, and more questions than answers. But I think it is a kind of setting some frame. What I mean is, do not expect the tariff to disappear. 10 % basic definitions, we believe will remain a hypothesis. China will be higher, or we will negotiate with other countries. But do not expect the definitions to disappear. Therefore, as you know, the definitions have a negative economic effect. So we see a slowdown in the American economy as a result.
03:03 Speaker
Do you think that there is also, especially as an international investor, UM, do you also think there is a great success for the interest of foreign investors in the United States even if there are these deals forged?
03:24 Nancy Courtine
So Walter said with Wiston once: “The capital flows to where it welcomes and remains where it is well treated.” So I will put that just a small excerpt. But see, uh, foreigners have been allocating huge sums for the past two decades. Why? It was rational. The United States excels through each group of assets, and the dollar is outperforming it. Even today they have very large allocations, about 30 trillion dollars. Foreigners are allocated to the United States. And a lot of this is not concrete. So we believe in the margin, foreigners will allocate less, and they will not sell all their securities. We are still the most liquid market in the world. We still have great companies and all the remainder of them. But on the sidelines, if they allocate a little less or surround them in their exposure, our faith is that we can see a dollar less than we saw and / or the cost of the capital is higher. We have to finance $ 2 trillion deficit. We have 8 trillion dollars in circulating risks. Uh, and now we may have some foreigners who appear in auctions. So this is something. It is one of the reasons that led to weight loss and lack of government bonds as a result.
05:07 Speaker a
Let me ask you, as I mentioned an American economic slowdown, and this means what is for the growth of companies ’profits this year?
05:16 Nancy Courtine
Do you know, I really think that the growth of corporate profits will prove more flexible than people think.
05:22 Speaker a
Why do you say that?
05:23 Nancy Courtine
Well, see, the year started at 12 o’clock. Well? Perhaps we will end six or seven, something like that. So it will slow down, but look at the first quarter. As you know, we are 90 % of the road during the first quarter. Ah, profit growth is 13.4 against seven expectations. To a large extent, uh, as you know, 10, 11 sectors in positive lands, margins are attached there. Now, you can say, well, this is the backward, which is, because all of this happened before, as you know, on April 2. Uh, but we widely believe that there is a lot of shock absorbers in the United States. There is a very good wealth effect. Uh, as you know, consumers represent from mid to 88 % of spending on consumption. The definitions struck low consumer. They are a decline tax. We have it. We have a tax bill, uh, on its way via Congress. We believe this is encouraging. There are a lot of good things there. We have recorded standard reports and a lower dollar, by the way, means better profits. So let’s put some of these things in it. So our point of view is not that it will not slow down for previous expectations, but it may be more flexible than people believe.
