Caroline Hyde

Let's talk more about the market moves.

Nancy Curtin's with us.

She's Global Chief Investment Officer at LT Tiedemann Global.

Nancy, you've actually been writing really saying that we are currently in an innovation driven bull market.

But what does this move from meta and sort of the moving around of capital expenditure tell you about where we are in the cycle?

I mean, I think the thing is about innovation driven bull markets.

And we've had, you know, pretty much three of them before this one, which is they tend to be characterized by a couple of different risks.

You know, cap expenditure is quite large.

Companies need to tap the debt markets and they're shifting perceptions of the winners and losers.

So, you know, these bull markets last longer.

They go beyond people expect.

They tend to come with productivity improvements, but you do get some shifting perceptions and shifting priorities.

So let's just bring that back to Meta.

You know, they've got a lot of money that they want to spend on Gen AI.

The market hasn't liked the fact they've tapped into the debt market to do that.

You know, they've got less

in a way, cash flow than some of the other companies making similar levels of capex spend.

So I think this is a good and sane reallocation of resources towards AI, which is the prize.

Yeah, because I think the market's being more discerning now.

It's recognizing that some companies have cash flow that can support this and some companies really need that.