Bloomberg Surveillance TV: July 10th, 2026

Summary

Podcast Summary: Bloomberg Surveillance TV – July 10th, 2026

Main Theme:
This episode of Bloomberg Surveillance centers on the latest trends and dynamics in global financial markets, with a strong focus on equities, fixed income, monetary policy shifts, and the continued role of technology and AI in market fundamentals. The hosts engage several market strategists and analysts to explore rangebound trading, bond market volatility (or lack thereof), the cyclical nature of semiconductors, and sectoral rotations underpinning current market performance.

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Market Overview: Rangebound Trading and Capital Raising

[02:48 – 04:39]

• Opening Insights:

  • Markets are rangebound, with 10-year yields oscillating between 4.2–4.5% and tech stocks rebounding to repeated all-time highs.
  • Host John notes, "We've seen that quite a few times. But there is an aggressive push from both corporate America and the tech trade worldwide to raise capital in this market."
  • Guest: George (mbfg) observes: "It's Groundhog Day. Every other week we have a bond market that always goes to 4.5 in the 10 year or 5% on the 30 year...we’re kind of stuck in nowhere's land.” [03:04]

• Credit Market Nuances:

  • George explains how investment-grade (IG) credit remains very homogeneous, with little distinction, unlike the more varied leveraged loan and high-yield sectors.
  • “IG is way too tight and there should be some sort of a concession given all the capital has raised.” [03:38]

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Debt vs. Equity: Investor Appetite and Risk

[04:05 – 05:46]

• Spread Dynamics:

  • Lisa Abramowicz probes whether new bond issue spread widening indicates a shift favoring bond investors or growing wariness.
  • George replies: "Now you have to kind of pay to play. I think that aspect is going to be with us…if there’s a lot more capital raising...yields and spreads are going to have to widen to facilitate." [04:22]

• Limits and Market Constraints:

  • Lisa questions whether rising spreads might soon constrain big tech’s financing and ambitions.
  • George downplays current moves: “If you pay an extra 10 basis points, that’s really not going to move the needle. It really starts to matter when you have bigger moves...that’s where you get nervous around the fall.” [04:58]

• Volatility Context:

  • Annmarie Hordern notes, "Bond market volatility is absolutely nowhere. So when people start saying, well, it could get more volatile, it's not getting volatile in any way, shape or form." [05:30]
  • This underscores the historically low high-yield spreads and a snoozy summer tape.

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Central Banks: Communication, Hawkishness, and Policy Outlook

[05:46 – 08:11]

• Fed’s Shift in Communication:

  • John and George discuss the Fed’s reluctance to provide forward guidance, welcoming a slower, more measured communication strategy.
  • George: “Perhaps we've had over communication in some angles...markets...are a sophisticated group of individuals, we can discount things too. We don’t have to be handholding.” [05:52]

• Hawkish Rhetoric:

  • Lisa points out increasing hawkishness among Fed presidents, citing NY Fed President John Williams’ recent comments, especially on the inflationary impact of AI.
  • “Inflationary problem is not necessarily just tied to oil prices, but AI is his bigger inflationary concern.” [06:35]

• Is the Fed Out of Doves?

  • George downplays the narrative of an entirely hawkish Fed: "I'm not sure if it's no doves left....we want to reduce forward guidance is now becoming a theme amongst central bankers...maybe they're just kind of letting us figure things out on our own." [06:49]

• Rate Path Projections:

  • John references the market’s pricing for only one hike followed by cuts: "It will be difficult for this Fed to out hawk market expectations." [07:17]
  • George’s base case: “The Fed’s on hold...coming back to square one which is that neutral still is somewhere close to 3%.” [07:57]

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Global Flows: Japanese Repatriation & Risks for Europe and EM

[08:11 – 09:44]

• Japan’s Repatriation Trade:

  • Lisa notes potential for “bazooka” policy interventions encouraging Japanese institutions to return capital home.
  • George: "It's very difficult to see like a wholesale kind of repatriation...but on the margin, that prices are set." [08:37]

• Who’s Vulnerable?

  • John asks, "If less money is leaving Japan, that means less money is available to buy into some of the issuance in places like Europe...what do you think is vulnerable?"
  • George answers: "US Bond market left its own devices will be fine...I'm more worried about the smaller markets. Even emerging markets...that's probably would be more at risk." [09:44]

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Semiconductor Sector: Spending, Cycles, & Market Psychology

[10:01 – 14:57]

• Tech Spending and Chip Cycles:

  • Jay Goldberg (Seaport) joins to assess spending from the Big 7 tech companies, noting no near-term deceleration: “What I'm seeing...there’s no SL insight [slowdown]...there’s a huge ramp starting next year...” [10:31]
  • The share prices already reflect much of this future growth, making the trading environment especially tricky.

• Correction and Market Realism:

  • Jay: “Sentiment got a little ahead of fundamentals...there are stocks...which could double or triple from here...they could all trade down 50, 60% before we get there...it’s a difficult trading environment.” [11:02]

• Bearishness vs. Opportunity:

  • On having a sell rating on Nvidia and Qualcomm:
    “I'm not universally bearish...I have buys on AMD and Intel...Intel is fundamentally rerating...Nvidia...is the worst performing stock in the stocks index this year to date...people have been looking towards other...less appreciated corners of the industry.” [12:17]

• Memory Market Cyclicality:

  • With new capacity coming from Micron, Hynix, Samsung, Jay reminds: “Every bubble somebody says this time is different...memory makers are expanding very heavily...there’s a lot of capacity that’s going to be coming online in 28, 29...we’ll see what memory looks like then.” [14:14]

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Earnings “Bubble,” Rotations, and Small Cap Themes

[14:57 – 21:50]

• The Earnings vs. Price Bubble Debate:

  • Listen (Charles Schwab) points out: “This time the bubble might be in the earnings and not the price...the buy side [whisper numbers] can set the bar much higher than the sell-side...one of the things I'm paying close attention to during earnings season is whether that…has a very widespread.” [15:41]

• Churn Beneath the Surface:

  • The spread between a subdued VIX and large stock dispersion highlights sectoral churn and rapid-fire rotations:
    “The Nasdaq’s up 13% year to date. The average member’s maximum drawdown...is minus 40%...that’s the poster child for that type of activity.” [17:43]

• Diversification is Key:

  • Listen’s counsel for investors: “There’s so much short attention span money in the market...I think the diversification story is more powerful than it’s ever been...consider portfolio or volatility-based rebalancing.” [19:07]

• Small Cap Outperformance:

  • Factors cited include cyclical Fed policy and a pivot toward profitable, higher-quality names:
    “Small caps...the Russell 2000 is pretty handily outperforming the S&P500...the impetus was easier monetary policy...now it’s about opportunity...I would lean into the profitable side, higher quality, high interest coverage, and strong cash flows.” [20:22]

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Notable Quotes

• George: "It's Groundhog Day. Every other week we have a bond market...we’re kind of stuck in nowhere’s land." [03:04]
• Lisa Abramowicz: "Inflationary problem is not necessarily just tied to oil prices, but AI is his bigger inflationary concern." [06:35]
• Jay Goldberg: "Every bubble somebody says this time is different...memory makers are expanding very heavily...there’s a lot of capacity that’s going to be coming online in 28, 29." [14:14]
• Listen (Schwab): "The Nasdaq’s up 13% YTD. The average member’s maximum drawdown is minus 40%. That’s...the poster child for that type of activity." [17:43]
• Listen (Schwab): "I think the diversification story is more powerful than it’s ever been...move away from that calendar-based rebalancing and take advantage of these rapid-fire rotations." [19:07]

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Key Takeaways

• Market Sentiment: Rangebound, risk-on in pockets, volatility subdued; investors are seeing healthy but sometimes confusing rotations.
• Credit Markets: Spreads remain tight, but there's a sense that widening is inevitable if capital raising persists.
• Monetary Policy: Fed is reducing guidance, playing its cards closer to the chest; the shift is perceived as hawkish mainly due to the new communication style.
• Japan: Potential repatriation of capital may impact European and emerging markets more than the US.
• Semiconductors: Strong capex and revenue outlooks, but cyclicality and overcapacity risk ahead. Market momentum diverts to less favored chipmakers like Intel and AMD.
• Earnings Bubble and Rotations: Caution emphasized around expectations vs. reality. Investors urged to focus on diversification and responsive, volatility-based rebalancing.
• Small Caps: Outperformance driven by policy cycles and a shift to profitable, higher-quality companies.

This episode provides a nuanced, multifaceted look at market cross-currents and the hidden churn beneath headline indices—a must listen for investors monitoring global money flows and sectoral leadership.

Transcript

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[Jonathan Ferro]

This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferro along with Lisa Abramowicz and Annmarie Horton. Join us each day for insight from the best in markets, economics and geopolitics. From our global headquarters in New York City, we are live on Bloomberg Television weekday mornings from 6 to 9am Eastern. Subscribe to the podcast on Apple, Spotify or anywhere else you listen. And as always, on the Bloomberg Terminal and The Bloomberg business app.

[John]

We begin this out with stocks inching lower following a chip led rally. Josh can call this of mbfg writing the inconsistencies in various market metrics will be ironed out, helping bring back convictions into the fall. George joins us now for more. George, good morning.

[George]

Good morning.

[John]

What do you have convictions about this Friday morning?

[George]

I have convictions that it's Groundhog Day. Every other week we have a bond market that always goes to 4.5 in the 10 year or 5% on the 30 year. You get tech stocks kind of rebounding and you get all time highs but we're kind of just kind of stuck in nowhere. Nowhere's land.

[John]

Yeah, It's a rangebound 4.2%, 4.1% on two to the front end of the curve. We've seen that quite a few times. But there is an aggressive push from both corporate America and the tech trade worldwide to raise capital in this market. We start the show by talking about the distinction in the equity market, the debt market right now. What do you see?

[George]

Yeah, look, I think it's interesting if you actually take from an upside down pyramid perspective. There is some, there's, there has been dispersion within leveraged loans, there's been dispersion within high yield. But IG has been very homogeneous, it's been very, very tightly knit. Almost every spread kind of tracks the overall index. You know, if there's going to be more kind of discerning nature coming from the credit investor world, we should start seeing it in ig. IG is way too t and there should be some sort of a concession given all the capital has raised.

[Lisa Abramowicz]

So do you think there's any takeaway in some of the spread widening at least in the new issues in the bond market versus the robust demand for some of the equity offerings? Do you think the pendulum is shifting more to the bond investors? Do you think bond investors are getting a little bit more wary about a high yields environment more broadly? What's your take on that?

[George]

No, I think your opening remarks were spot on in the sense that yeah, now you have to kind of pay to play. And so I think that that aspect is going to be with us. But it's been an amazing year so far. A lot of issuance. But in the second half of the year, if there's a lot more capital raising that's needed, I think the yields and spreads are going to have to

[Lisa Abramowicz]

widen to facilitate when is spread widening the window closing. And this is the distinction that we're having trouble understanding because at one point it was investors pushing back could potentially curtail some of the spending ambitions of big tech. At this point, it's just, it's going to cost them a little bit more. Is there a tipping point where suddenly it becomes a constraining factor?

[George]

I mean, given the sort of EST markets for sort of revenue potential, if you pay an extra 10 basis points, that's really not going to move the needle. I think it really starts to matter when you have bigger, bigger moves. And it's going to be a function of both bond market volatility as well as spread, widening. That's going to really maybe not necessarily curtail credit availability, but might kind of close down markets. And that's, that's where you get nervous around the fall.

[John]

We should know we're picking up on small signals here. Getting deeper into the summer. It's still quite snoozy to 60 on high yield spreads, which historically, as you know, Lisa, better than most. Incredibly tight.

[Annmarie Horton]

It's incredibly tight. When you take a look at bond market volatility, it is absolutely nowhere. So when people start saying, well, it could get more volatile, it's not getting volatile in any way, shape or form, either in bond or overall stock index level, types of metrics. So again, not necessarily screaming warning bells,

[John]

step up, Kevin Walsh. Does Kevin Walsh make things more volatile? The reluctance to communicate, to provide forward guidance?

[George]

Well, I do think that, you know, it's kind of refreshing that we're taking the opportunity to kind of slow things down a little bit. I mean, perhaps we've had over communication in some angles. Right. And so I think it's good to see kind of a rethink about the communication strategy. I mean, the five task force are now fully in motion. I think it's an opportunity to kind of rethink what is the appropriate policy, like how to communicate with markets and markets, you know, the bond markets. A sophisticated group of individuals, we can discount things too. We don't have to be kind of

[Lisa Abramowicz]

handholding at the same time, to the degree that we are hearing anything, it is increasingly hawkish. Even New York Fed President John Williams yesterday came out and he has been

[Annmarie Horton]

actually pretty dovish for the past couple of meetings. And he came out sounding really hawkish,

[Lisa Abramowicz]

saying that the inflationary problem is not necessarily just tied to oil prices, but AI is his bigger inflationary concern. Are you starting to change your perception of the reaction function at a Fed that has no doves left?

[George]

I'm not sure if it's no doves left. I mean, I think people are Kind of falling in line. I mean you heard it even last week, it said sintra and like just the idea that we want to reduce forward guidance is now becoming a theme amongst all central bankers both here and abroad. I'm not sure if it's dovish, it's just that we're used to having too much information so that anything less of than that is going to be viewed as hawkish. Maybe they're just kind of letting us figure things out on our own. Yeah, I'm not thinking that's a signal

[John]

per se to the moment close to 420 that is still a decent gap above where policy rates are right now. Max can of HSBC still quite bullish on equities and overweight risk more generally. And he points out that it will be difficult for this Fed to out hook market expectations. I think that's an important question. How hard will it be for this Fed to out hog what is already in the price?

[George]

Yeah, well the thing is interesting, I mean what does out hook mean? When you look at the WIRP page on Bloomberg you have the market pricing in one hike and then followed by cuts that to me looks like risk management. Doesn't look like a market that's really that hawkish. It's just there's just scared of this unknown then there may be a risk of a hike. I don't buy it.

[John]

You have a base case if you don't buy it.

[George]

What? We think that the Fed's on hold and in fact that they're going to end up coming back to square one which is that neutral still is somewhere close to 3% and at the end of the year this is going to be a big exercise in like just kind of figuring out that we're coming back towards 3%.

[Lisa Abramowicz]

I want to go back to where John began the show when he was talking about Japanese bond yields and the fact that you did see a rally into them and this question around Japan being the big repatriation trade that hasn't happened for about 20 years.

[Annmarie Horton]

This does seem like it is potentially

[Lisa Abramowicz]

a bazooka later in the year. Should there be true policy efforts to support Japanese investment firms bringing back their investment thesis to their home country?

[Annmarie Horton]

Is there any teeth in this?

[George]

I mean look there, look, the Japanese, you know, both investment base banking system is so integrated with the US economy and so many different levels. It's very difficult to see like a wholesale kind of repatriation but we all know that it's on the margin that prices are set and so it's really Comes down to like how much could, you know, how much capital could come back to Japan or is it more a function of there's going to be less capital leaving? I think it's more about the capital will stay at home and look for the higher yields within the Japanese bond market and Japanese banking like regional banks, the pension systems, they can allocate more, their yields are more.

[John]

Do you think markets would achieve that without it being mandated?

[George]

I think, you know, at the right price there's a, you know, people will

[John]

be close to that right price.

[George]

I think we're close to that right price. I mean and that's why we have a pretty decent reaction overnight. Just, you know, just on one headline and you see the Japanese bond market favorably moved over 10 basis points.

[John]

If less money is leaving Japan, that means less money is available to buy into some of the issuance in places like Europe that the Japanese have turned up to buy. What do you think is vulnerable if you do start to see that turn?

[George]

Yeah, that's a great point. I mean I think that the US Bond market left its own devices will be fine and we'll be able to find capital. Yeah, I'm more worried about the smaller markets. Even emerging markets that benefited from carry type trades like that's probably would be more at risk.

[Jonathan Ferro]

Stay with us.

[John]

More Bloomberg surveillance coming up after this. Jay Goldberg of Seaport writing the following. The entire trade is driven by spending from seven companies. So long as they keep spending, semis will see earnings growth. But any hiccup and a stock market gets spooked. Jay joins us now for more. Jay, welcome. Do you sense any deceleration in spending on the horizon?

[Jay Goldberg]

I don't, I don't know. In all fairness, I'm not a hyperscaler analyst so I don't have the contacts at Meta and Google and Amazon that, that some others do. But certainly what I'm seeing from supply chain and from people in, in my community locally in the Bay Area, there's no SL insight.

[Annmarie Horton]

So do you think that j what we've seen in terms of the valuation reset or the sell off in semiconductors is creating an attractive entry point or do you think that ultimately there's something else driving some of this activity?

[Jay Goldberg]

I think your previous guest listened had it right. It's a very confusing time. It's a really difficult trading environment right now. If you look at some of the spending plans that are out there and these are committed contracts, people are data centers that people are going to build, there's a huge huge ramp starting next year late 27, early 28 numbers get really, really big. The problem is a lot of that is already reflected in the share price and timing is always a little uncertain. And I think we have a situation where sentiment got a little ahead of fundamentals and that was sort of the correction we saw, you know, this, this month or last month. I mean the way I sort of think about it, there are stocks in my sector which could double or triple from here. The numbers are that big. The problem is they could all trade down 50, 60% before we get there. So it's a, it's a, it's a difficult trading environment.

[Annmarie Horton]

Jay it seems like a difficult moment especially considering that a lot of people are increasingly skeptical and yet the market can continue rallying for longer than they can remain skeptical. As someone who does have a sell

[Lisa Abramowicz]

rating on Nvidia and Qualcomm and as

[Annmarie Horton]

someone who has been more bearish in some of the trades, how difficult has it been to remain bearish given sort of the freight train that seems to, to be recycling back in every time anybody sees any kind of dip?

[Jay Goldberg]

It's tricky. I'm not universally bearish, right. I am picking, picking my targets here. I have buys on AMD and Intel. I think both of them have pretty strong prospects next year. Intel is fundamentally rerating. It's a company we'd left for dead two years ago and has, has a new CEO and a new lease on life. And you know, if you look at Nvidia, it was the, it's the lowest performing, the worst performing stock in the stocks index this year to date. So I've been saying all along Nvidia is going to underperform because we have a really good sense of where that company is selling, what their prospects look like. That's the most scrutinized company on the planet right now. I think what we've seen this year is people have been looking towards other sort of less appreciated corners of the industry that are benefiting from this just as much as well South Korea being

[John]

part of that story as well. Jay, just to jump in, they've now got a listing care ideas. How do you think about that in terms of competition for capital in the sector with other names listed here?

[Jay Goldberg]

I think that's a big, it's a, it's a big and growing issue in the industry. 30% of the, of that capex this year was going, is going to go to memory. It's going to be 40 or 50% next year. You know, we're talking about $1 trillion of CapEx and a very large portion of that is going to memory. It's, it's a, it's a phenomenal time to be a memory company right now.

[John]

Would you say it's the peak?

[Jay Goldberg]

I'm. No, I think, I don't think we get into supply, demand equilibrium from memory until 27 or 28. I, you know, calling memory stocks is very, very difficult. They're very, very cyclical. I think there's still a lot of room for the, for the fundamentals, for the earnings to go up. How that gets reflected in the share prices is, is difficult.

[John]

That's the key phrase. J. You said it. You just said it. They're still very, very cyclical. Some people don't believe that. They believe the story's changed. Why do you believe that's still the case?

[Jay Goldberg]

Every bubble somebody says this time is different. Look, there's obviously huge, huge demand for memory. But at the same time the memory makers are expanding very heavily. Right. Micron is building five plants, five fabs right now. Hynix is raising a lot of money at this ipo. They're going to, they're going to plow that back into building more capacity. Samsung announced a massive investment plan a few weeks ago. So this, this is how these cycles work. There's, there is lots of demand they build. They spend a lot on Capex to catch up. I think the only thing is different here is they have a lot of customers paying for it upfront, paying cash upfront. That levels it out a little bit. But there's a lot of capacity that's going to be coming online in 28, 29. Oh, we'll see, we'll see what memory looks like then.

[John]

Stay with us. More Bloomberg surveillance coming up after this. And some of the. Charles Schwab writes the following. Stay in gear with a theme by avoiding crowded direct plays and leaning into less crowded derivative plays. Listen joins us now for more Listen. Welcome. I just want to take you from the start, from the top. And I want to pick up on something I heard you say earlier this week that unlike what we saw more than 25 years ago in the dot com bubble, that this time the bubble might be in the earnings and not the price. Listen, can you flesh that out for us? How different now versus then.

[Listen]

Yeah, and thanks for, thanks for having me. I think maybe not the earnings where we stand right now, but the earnings expectation is, I think where there could be a bubble. And I think we got a little bit of a flavor of that with the recent Samsung report that pretty nicely Beat the sell side estimate. That's the consensus that analysts publish. But there's also a buy side estimate out there and that's not something published. It represents maybe the whisper number or the hyped up number and the higher bar and we saw what happened to the stock. That is one of the things I'm paying close attention to during earnings season is whether that sell side versus buy side estimate has a very widespread. And what's the sensitivity in terms of the market reaction. I think it probably continues to fuel these rapid fire rotations that just have become the name of the game in this kind of market.

[John]

Do you expect that to be a recurring theme across earnings season or just in select industry groups?

[Listen]

I think probably select industry groups. I think in those higher beta segments like tech and comm services, anything air related, I think you have that wider spread between the sell side and the buy side. But we're seeing just a huge increase in dispersion. I think Kevin shared a chart with you guys this morning that shows a record spread between a relatively subdued VIX and that dispersion. You're seeing it in terms of the retail trading cohort. The turnover has never been higher. They're a little less active in individual stocks and and more on the thematic side of things as well as ETFs. But the dynamics of how the market is trading, who the players are and the way they're attacking this has also shifted quite a bit. And it's just a different backdrop than what might be defined as a nor normal sort of earnings season backdrop.

[Annmarie Horton]

Is it healthy? I think that that's what a lot of people are wondering. Or does it signal, Liz, and that potentially you could see some sort of crack if there is this incredible churn under the surface and specific name volatility.

[Listen]

You know, the churn is not necessarily detrimental because it can lend support when you get some of the leadership names pulling back. You know, when we saw the. The big, you know, bout in many cases ongoing bout of underperformance by a cohort like the Mag 7 you saw a l other segments of the market in industrials, in health care at times and enough underlying strength amid this rotation, not to mention the intra sector, intra industry rotation. So I think the base case is probably a continuation of this type of a backdrop where you don't see an aggregate wash down on the part of the indexes but a lot of churn under the surface. An example is the NASDAQ's up 13% year to date. The average member maximum drawdown within the NASDAQ year to date is minus 40%. So that's a, that's a sort of the poster child for that type of activity.

[Annmarie Horton]

Perhaps the bigger question for a lot of people is whether this signals an exhaustion in some of the tech names and potentially that rotation that we saw try to assert itself before the reignition of the conflict over in the Middle East. How much do you see that as a path of travel in the last six months of this year? The idea that people will go into other names expecting them to benefit from efficiency, efficiencies and other types of growth and maybe fade what we're seeing in some of the tech names?

[Listen]

Yeah, first of all, I do think it's a tricky trading environment and at least our message that we impart to our $13 trillion worth of individual investors is to not necessarily think that the only way to perform well in a market like this is to try to get ahead of these really short term rotations. There's so much short attention span money in the market and maybe it's a little more boring to talk about or to think about, but I think the diversification story is more powerful than it's ever been, particularly within asset classes and even within sectors. But then consider portfolio or volatility based rebalancing. A lot of rebalancing gets done based on the calendar. Might be quarterly, it might be annually. Move away from that calendar based rebalancing and take advantage of these rapid fire rotations by adding low and trimming high a bit more frequently and stay in gear that way. Way as opposed to trying to get ahead of some of these short term trade.

[John]

Listen, I want to pick up on something that you've noted. We often talk about these short term tactical rotations, these shifts in the market and we point to small caps. Small caps will have its moment. To your point, small caps has been having its moment for quite some time now. What's been driving those gains?

[Listen]

So you know there's been different forces driving small caps. And you're right, John, you know, it's been the trailing two year period that, that Russell 2000 is pretty handily outperforming the S and P.S. and P500. So this is not some new story. A couple of years ago. I think the impetus for the initiation of that outperformance was a move by the Fed toward easier monetary policy. Of course we've had fits and starts with that. Almost two years ago, the Fed embarked on an easing campaign. After three cuts that included a 50, they had to pull back because the economy accelerated again. Same thing happened last year when the Fed embarked, but then you had the much more sticky inflation problem driving that. And I think now the story is one about opportunity in that let me look beyond just the mega cap AI plays and look for opportunity you're finding in other areas like health care and like biotech and smaller names. But what I would say about the small cap space is last year was a year where the non profitable components of the Russell 2000 had double the performance of the profitable components. It was up 20% versus up 10%. That is starting to shift this year and you're seeing this convergence where you're, you know, have a little better performance on the part of the profitable. So that's the way I'd look at the small caps. I would sort of lean into the profitable side, the higher quality, the high interest coverage and strong cash flows and feed the non profitable lower quality segment

[Jonathan Ferro]

this is the Bloomberg Surveillance Podcast bringing you the best in markets, economics and geopolitics. You can watch the show live on Bloomberg TV weekday mornings from 6am to 9am Eastern. Subscribe to the podcast on Apple, Spotify or anywhere else you listen and as always on the Bloomberg Terminal and the Bloomberg Business App.

[The Hartford Representative]

When you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering and claims experience. Learn [e-mail] riskmitigation policies provided by Hartford Fire Insurance Company and its property and

[Lyft Advertiser]

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[Kia Advertiser]

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