AI Masterplan and earnings boosts tech

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NAB Morning Call 11 min 2 speakers 8 chapters transcribed 20 days ago
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What is the proposed AI Master Plan and which major partners are involved?

Phil Dobbie 0:01
The massive infrastructure project we were promised was the AI Master Plan with Softbank, Oracle, and others, although Elon Musk isn't quite so sure about it. But we do have a date for the results of a trade review, April Fool's Day. I'm saying nothing. And New Zealand CPI yesterday paving the way for another 50 basis point cut by the RBNZ. It's Thursday, it's the 23rd of January 2025. It's the morning call from Nab. Good morning. Uh small rise in the US dollar on the DXY, it's up to a hundred and eight point two five in this session, which is a little below the hundred and ten point two, which we've already seen this month, but the Aussie also up slightly. The loss has been in the Canadian dollar, it's down 0.3%, the pound down a quarter percent, the Japanese yen down uh three quarters of one percent.
Phil Dobbie 0:49
Equity is pushing higher, almost to new highs, up one and a half percent for the Nasdaq, not point eight percent for the SP, not point three percent for the Dow. Now in Europe the DAX is up one percent, the Eurostocks fifty up 0.8% at the close, but the FTSE 100 down marginally, and small moves in bond yields. Ten year treasuries are up three basis points to four point six one per cent. UK ten year guilt yields uh are up to four point six three percent. That's four basis points up in this session. Aussie ten-year yields were down sorry, Aussie ten-year yields were up six basis points yesterday, up to four point four. six percent. Now on futures at another five basis points, up over four point five one per cent.
Phil Dobbie 1:26
An oil higher today, reversing the trend of late, which has definitely been downwards, but today WTI and Brent both up about 0.3%.

Why did Brent crude dip just below $80 per barrel today?

Phil Dobbie 1:34
Brent just under eighty a barrel. So Sky Masters joins me today from NAB in Sydney. Look, equity's high, presumably well there's a few things, aren't there? I mean there's hopes of an easier Life for business under Trump. There's this hundred billion uh dollar AI infrastructure project with you know partnership with SoftBank, Oracle and others. That's helped the tech sector and also Netflix has helped the tech sector. Netflix is up ten percent today because they had record earnings yesterday. They added nineteen million subscribers and uh they're pushing their prices up as well and they expect very little pushback pushback. So, you know, good news for investors all around. So it's tech definitely leading the way.
Skye Masters 2:14
Yes, Phil. It it it's you know, y a as you've said, the overnight price action really points to um you know, focus on on on stocks. Good it's a good performance in in equity markets, um, with bond yields sort of very much sort of um on hold or or or sort of of range bound. And so for the for the equity market it's it's you know, a as you as you said, it's you know positive sentiment. Around the initial policy announcements from Trump, obviously being that announcement of the US dollar 100 billion AI infrastructure project. But then, you know, we're also seeing good, good earnings results. So yesterday there was that strong out um result from Netflix. Overnight we've seen good results from Procter and Gamble and Oracle.

How are recent strong earnings from Netflix, P&G, and Oracle boosting equity markets?

Skye Masters 3:00
Um and I think the combination of the earning results that we're currently seeing um, you know, is supporting the the recent hard data pointing to that continued resilience in the US economy. So if you think, you know, we're getting reasonable earnings results, um, and then on the top of that we've got, you know, Trump two point zero uh and his announcements, i it's all pointing to do you know that that that positive positive sentiment for for the US economy and and you seeing that feed through into Interesting.
Phil Dobbie 3:30
Well no one's lost out, have they so far, except for obviously green tech companies. The uh the FT reporting today that there's two hundred and eighty billion dollars worth of loan requests which are under review under the Inflation Reduction Act. They're they're obviously uh not going to happen because this executive order's been ti uh uh released called Unleash American Energy, which basically says yes, getting uh stop the Inflation Reduction Act.

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