Closing Bell Overtime: Paul vs. Tyson Promoter On What’s At Stake; FICO CEO On Consumer Health 11/15/24
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That's another regulation energy bringing the closing bell in new york stock exchange safe rise and doing the honnor banana c stocks seeing another broad pullback and adding to losses on the week drag down by big tech. The as that shutting where the two percent of yellow on the rise, that is the score car and wallstreet. But the action is just getting started.

Welcome the closing bell over time. I am gan ran john coming up our that and rbc Lorry kalvoda john's talk about today's market pull back. And if the post election rally is overall just taking .

a bus plus netflix PS into the ring, A J. P. Morgan said tonight streaming fight between jack mike tyson could be the most watched boxing match of all time.

We will talk to the fights promoter about how IT came together and the big money that's at stake. Meantime, lets go straight to the market action. Allen setina of Morgan stanly wealth management joins us now. Allen.

welcome you. Gonna with you. Uh.

there's a love for us to dig through here in terms of what has helped to move the markets, especially we do see another dow week for all the major averages. We've had more hawkish commentary from power and other feed A I IOS. This week, you see the market continuing to pass out this so called trump trade and economic data that, that largely has looked pretty resilient. Where do you think we go from here and what do you think drives the narrative?

So from from here, I think as we further digest exactly what can a second term under present trump deliver and win will be important because IT seemed clear that the market immediately was pricing in that uh trump deliver all of the proceed good things about his plans uh and none of the bad things and taking uh IT almost for granted that anything promised on the campaign trail around immigration, around trade would not be delivered upon.

And so what you do this and set yourself up for downside rise as you start to pass out what is the timing of these different things, right? You get a lot of the negatives if you are are going to uh send twelve million plus people back across the border um if you're going to put blanket terrorists on rest of world, right? You get the negatives from those up front and then you get positive from, say, more favorable tax cuts later on in twenty twenty six. So I just seemed like there is a little bit of jumping the gun here and a little bit of possibly hiding our heads in the sand about what he actually could deliver.

I think that's a very key point, especially when ipad conversations with folks that are close to president luck trump or who worked with him in the first administration and said you should take his campaign promises very, very seriously, especially if you're trying to game out what future policy could look like. So what does that mean in terms of what we're seeing in the bond market and how investors should think about the volatility this could inject more broadly across asset classes?

yes. I think for the bond market in particular, um there are two things that that IT has to digest and has to digest. Um you are there any different assumptions we need to make about expansion of the deficit, whether IT was a democratic sweep, republican sweep, mixed congress with a democrat or republican president, we were going to get a larger deficit.

Borrowing needs are going to rise if not only for the fact that the structural deficit because of the interest uh expense on the debt is going to continue to rise IT doesn't matter if the fed drops rates two other basis points tomorrow, average interest on the dead is that rate is continuing to rise. So bond market needs to react to uh the the the sort of what's perceived as possibly effect that under a republican sweep, you would get further tax cuts. Um the understanding that terrorists do not replace uh uh s revenues from tax cuts period and that that doesn't mean a larger deficit um and so that's going to impact longer run a rates in the bond market.

The other thing is, as you mentioned, we have gotten more positive data on the economy. Chair pal has been more guarded in terms of maybe we cut further in december, maybe we don't um I do think that they deliver another cut in december, but I think there after, we have to understand that they may slow th Epace o f c uts i n t wenty t wenty f ive. So the market digested that as well.

So I want at what point do you think does the equity market start to really think about trump policies as an economic factor all to themselves affecting inflation, uh, affecting corporate growth prospects? Is that not until we see the amount of money that's being spent on the immigration policies, for example, or the amount of money that's being spent on extending tax cuts?

yeah. So I think it's a great question in the timing. Is inauguration day to sell on the news? I inauguration day comes and goes, but you still don't have the the exact time of timing of wind policies play out.

But he has a nominated or put fourth names for hard liners on trade, on immigration. So we have to take those policies seriously. And again, those are going to chAllenge the economy first before you get benefits from lower tax cut s.

So there's going to a lot across currency or hitting the market. You're gonna have probably more forgiving reilly ory policy under uh uh A A second president trump. And so that's going to impact some sectors more favorably than others. Obviously, immigration is going to be a chAllenge for a construction for food processing areas that relied very heavily on immigration labor. And so there's going to a lot of cross carts there with clear winners and losers.

Okay, Allen setina from organ standing wealth management. Thanks for being with us. Now let's turn to singing markets commentator maxim toli for a broader look at this pull back today and this week for stocks.

My yeah john, in the S A P. Five hundred of particular, the pull back brought us to a pretty interesting spot I was pointing out as we entered the week that the S A P was a little bit getting a little bit extended above its fifty day average.

And maybe wouldn't be surprising for settle backwell, where is stopped at this level of fifty eight， seventy, it's basically equivalent to the highway had seen before the election actually set are an october eighteen or mid october there abts. And you see this is not that unusual when you have a hide that goes back and gets tested before you have another leg is matter fact that happened right there to sort of written the early october area. So IT doesn't mean that this is all we get, but it's suggested so far this is pretty orderly and not necessarily extraordinary.

Are based on the the angle of that pop that we got in to take look at that, that one hundred, obviously the leader of the first half of this year is really given back more and is looking like it's in a bit more of a struggle. This goes back to sort of early july levels that we first reach at this point. Now still in a year of the basis, doing fine overall trend is okay.

But back then, they had sort of a monopoly on earnings growth and investor interest. And that's now as the earnings picture has brought in out and more signals have gotten in investors, site theyve taken a back, at least at this point, that looks like that. Now take a look to the ten year treasury.

There's another chart with pointing. I was at a really interesting spot just last week, which was right at the point where that downturn line was broken. So we have broken IT.

Now question is how much more upside might we have here and happening for the right reasons? This is the whole debate. IT seems like it's going along with Better than expected the economic data and of course, minimizing or at least reducing what we think we're going to out of the fed.

The episode level, not extraordinary, but th Epace c ouldn't a c hAllenge i f I T r eally c ontinues f rom h ere. Final point, consumer cycles. The equal waited consumer directionally etf over two years has still been outperforming in the average stock in the market. So this has been one of those touchstones you want to return to and says the markets message, okay or not on a year to day basis, it's about even but still participating. And also point out that banks are up from mid october even though the S M P is back down to the same level.

Do we noted by comparing contrasting last week to this week, when you look at volume, when you look at assets that LED and leg, what does that tell you about the nature of that surge and nana pullback?

I think the surge last week was really feeding off of not just what was expected to come out of policy, but the quickness and decisiveness of the election result and the attendant cunt in volatility, or at least people had just got to hedged up. So that big released men, you went to some of the riskiest st corners of the market at the biggest benefit, heavily shorted stocks.

Obviously, crypto has maintained its bid, but a lot of these other following stocks of lower quality had a big pop along with cycles this week. I think it's again been pretty rotational in terms of how it's acted. Banks have been fine today. It's it's been tech that was already for sale that has pulled back back. I don't I don't necessarily feel as if this week on does the up the conclusions or the bets layed last week, but IT definitely sort of brings them back into line and is wiped the way and maybe just a little bit of the froth that was building up.

Okay, mike santa will see a little bit later this hour. Check out the move lower in some big defense names this week, falling more than the broad market investors, possibly king, and on the department of a government efficiency doge push from the trump transition team where defense spending could be in cross herring from training is now is Jeffery's equity analyst chalky u. SHE is great to have yon x organ .

airspace and defenses.

one of the worst performing industry groups in the sp. Five hundred this weekend. I I IT does seem like that was in large part due to this focus on cost cutting and what elon musan, the bec rm a swami are gonna mean for government budgets. Uh, is IT overdone here or are the reasons for investors to be concerned?

Yeah sure. I I think um in addition to the primes, the services names like booze and lies and I say as he got hit significantly as well. So we did downgrade whose pre election sort of or warning this and then A B A B earlier this week um in terms of what doors could actually do, I think that'll be the hardest st part.

This name does not forget on ten percent Operating. And in fact, they had massive losses. Those included rocky rapid ond on big Price programs north of as well.

so. I don't think this is the best place to go after government efficiency. If you do IT, you'll go after for heavy equipment, not so much for services names. But interestingly enough, the shorter cycle services names got hit, uh, a lot harder, almost doubled times this week.

Hegseth gathered rack Cliff walls. Rubio reports that you could see A A revamping of the senior most generals in the pentagon. IT does seem like this is an incoming and administration that is poised to really shake up dod. So I want to get your thoughts in some of disappointments in the reviews they are. Tae.

I think it's hard to tell. I think one thing trump has talked about and what we've seen in the past few days is, is uh you know potential pull out out of the european region and the that may be implementing a impacting some of these aims. But we were thinking about defense budgets is three percent growth, but supplemental at another three percent. So if you have a pola of supplemental funding, obviously that would hurt the higher margin growth business. So that would impact the primes the most um but tram peasant said too much about defense policy just yet outside of cleaning up inefficiencies .

SHE like lawmakers enjoy cutting stuff the other party likes. But it's not clear to me that doge is going to take that kind of thing into consideration and that congress even a republican control congress, is is going to be happy with what uh, e and bec come up with. What what do you .

think I think it's hard to tell. We don't really know what dogs will be able to do. I think that's the hardest st part of our analysis.

So what we're looking at is just brought buckets, and that's really not fair to these names, but that's what we have to do. So we're looking at who s dod exposure safer is the civic exposure and potentially running analysis on that civil exposure. That's about twenty five to forty percent of cells for the fit t names.

And I think that trying saw those means get hit harder. So why is because republicans potentially don't want civil budget gets, but are they really going to go back help care for veterans? I don't think so.

That's not necessarily making amErica great again, but like they could do is due exposure requires uh, classified employees。 And so potentially on the feasible side, you could move that to lower costs locations and move that to commercial consulting firms so they could see some margin impact there. So I think it's .

who who do you think is going to mune .

e most immune um I think persons it's been large topic in the I T services. This uh they have fifty percent of sales to federal government, fifty percent critical infrastructures s on the critical infrastructure side um there the immune and I think within that they have A P E business. A good example of that is to trump up put into the E P, A position has been a big kivas room mediation supporter.

So that's one of our top picks in the defense face as well as L A jacks in general. We've been pushing the commercial at earth face names, particularly at at the aftermarket, which also has not had a great week this week. So across the board, you've seen air space and defend to really get hit massively .

ah and of course, boeing today one of the outperformers in a downer as Kelly or berg hits one hundred days at the home at boeing. So the name will continue to watch as well. See look, I U thank you. thanks. We're going to talk more about air space and defends under the second trump administration and how relates to the moon, mars muk later in the show when we hear from former acid administrator and .

brightens time and after the break tonight networks main event between jack paul and mike tyson could be the most watched boxing match of all time, will talk to the fight promoter about how I came together and how netflix Scott involved and overtimes back into our goal is to empower you to be a Better investing u.

James teachings, I was able to learn and become financially independent in my regional join the club with jim's best deal of the year at C N B C, that com slash club like for day terms and restrictions, supply, walk back to overtime. Netflix looking to establish itself as a heavy weight in the live sports arena as IT streams a much hyped boxing match between youtube, r. Jay paul and fifty eight year old mike tyson tonight, uh, analyst at J.

P. Morgan, writing IT, could be the most watched boxing ever. Given netflix as global subscriber base and the ease of access, since that won't be a paper you event.

Joining us now in the exclusive interview is dynasty equity executive in residence. The kesa bedroom an is also the cofounder with jake paul of most valuable promotions and is promoting tonight's fight. Great to have you hear with us.

And this so so mike tyson has an estimated networks of ten million dollars. Some reports ball park, my test is getting paid twenty million to fight. Jay paul, is that about right? Maybe low.

Well, first of all, thank you for having me. We're excited about this historical event. Mike tyson anji taller, making eight figures each individually. And in addition, what we're most part of is the common event the two women, kd Taylor and a man is sereno, are also making record pays for women's boxing. So really continuing to push quality within within sports and particularly in the boxing field.

So what's the insight here? Business was from how you want not just this baLance, but the whole thing you've done with jake poil together. I remember the tyson holy field fight summer before my senior year in college.

I would struggle to name you two big deal heavy weight xing match ups since. And yet here we have this. Where does this fit in the pantheon of what boxing has become? I met jake .

paul four years ago, and immediately I realized that he had a competitive advantage. And that competitive advantage versus traditional boxing and M, A, A. Athletes was that he had audience, the captive, engaged fan base that we could speak to, sell to and build with.

And in over those four years, we built his audience to be three x of what IT was then. And then you fast forward to today we've part with with netlik, who has over two hundred eighty two millions describers, probably over seven hundred million homes globally, and we're able to bring boxing back to the forefront and give the support to do that. I used to have in the days of mom ali that IT had for a period d of time, mike tyson. So we're very excited about the transformational nature of this event, not just for boxing, but for sports. All the key .

great to have you on. There's already there's speculations warning that this is going to be a rigged fight. So how do you wage those concerns, especially when this is going to be a big betting event i'll be at, not in texas where you're not allowed to place the wage?

yes. So the number one, I think every jake poll event, people try to say it's a rig fight and that speaks to the unbelievable progress this Young man has made at the age of twenty seven in disrupting an entire sport and continuing to defy expectations. Secondly, our partners with netflix, the biggest media company in the world.

If this was a rigged fight and there was legal sport spending happening, that would be a federal crime. So netflix most valuable promotions, jay paul and mike tyson, would be committing a federal crime. It's absolutely ridiculous to suggest that this is anything other than a professional about under the rules of the texas athletic commission.

yeah. And certainly lot of people are going to be be tuning into this. I think myself included tonight, the fact that this is the fact that this is going to be happening on netflix, what went into those negotiations and how does IT speak to what is perhaps this new chapter of uh, media entities that that are going to be taking on these live sporting events. Sporting events?

sure. Look, we worked on a documentary with netflix, the untold series the problem child, which was jake story, that primarily in july of twenty twenty three at that point, jack paul five eight D S. Actually here in daleys at american airline es center.

And we add some netflix executives join us to see the breath of the mainstream appeal of what jack and MVP have been doing. On the back of that, we signed a deal november first of last year for most valuable promotions to be the first ever live sporting event on net lix. Next month is the n felt that our company three years old, there's doing IT first.

And look, we look forward to having a continued relationship with them. This is obviously the first four into combat sports. There's a lot of big expectations, but we're pretty confident we're going to deliver on those.

nik. So i'm guessing that might tyin is the most globally well known living boxer. There was a video game that named after him set up. What could you possibly do with jake paul after this to to continue on little one topic.

So look, we strategically partnered with netflix for this flight. All of our distribution strategies are dependent on who the opponent is, what the consumer is and what we wanted achieve with those outcomes in terms of the brand build. So for jaime paul, who's twenty seven, fighting a much more experience but much older fighter.

And mike, we believe that netflix was the right platform for IT wasn't necessarily about maximizing the last dollar even though the gate here is close to eighty million dollars as we here, which is the biggest boxing gate in the history of the united states outside of lost vegas. But we wanted IT to be on netflix exactly of what you said. He is an iconic figure known worldwide.

And you bring in jake, and you connect those generations from the baby rumors to generation alpha. There is interest. Grandmothers are talking to their grandsons, literally, about this event.

As we look forward, there is plenty of opportunities for very big events that would I actually be commercially even more successful from a revenue perspective because we can explore the paper view model. We've thought conversations with neff's around other potential flights on the service. But you we're we're always going to look to maximized what we think is the best position between the brain and the revenue. Max ization.

okay. The case of beta, an thanks for joining us.

Thank you. Appreciate IT.

It's worth noting, john, that with kai Taylor and AManda toronto, this is expected to be the most lucrative women sporting event in history as well. That's a few milestones here tonight. Well, coming up next to see I go. One of the biggest under the radar winners this year. And over the long term, too, I will join us with an inside read on the health of the consumer after encouraging .

data on retail cell, and later R, B, C, law gets set up for next week. Trade tells us if he thinks the post election rally will reignite over time. I will be right back.

Experienced the power of C, N, B, C prose best deal of the year. Track your portfolio from every angle on one out of ice platform. Ms, restrictions apply.

Welcome back to overtime. The commerce department announcing today that retail sales climb to point four percent from september to october, indicating consumer spending is at a healthy level ahead of the holiday season. Now that comes after your new data from the new york fed showed that U.

S. Credit card debt had a record one point one seven trillion dollars in the third quarter. That's up eight point one percent from a year ago, though delinquency rates have improved slightly over the same period. Will joining is now an exclusive interview is figo CEO will landing. Well.

is great to have you back on the show. Nice way here. thanks.

I do want to get your take on the health of the consumer, what you're seeing through a very unique vantage point. But first, just a question about the company because you continue to grow and grow strongly across your different segments and you are one of the best performing fio is one of the best performing stocks in the S M. P. Five hundred this year. What's propelling IT?

Well, you know, we have great prospects and we've had great record with with our two businesses, our scores business and our soft business. It's a great time to be an analytics software, which is what we do. We we play all different kinds of analytics to data and help our customers make decisions and optimize the the way they interact with our consumer customers.

And that's really propelled us. Our software businesses grown double digit. Our scores businesses grown double digit. And and that's what easy the dark Price.

So the last time you join us, but I believe was last year, uh, you talked about the fact that credit scores were at a record high, really spoke to the health and resilience of the consumer at that point in time. But you also cautioned that a credit scores can be a lagging indicator. What are you seeing now, especially as we do see some of these stats that we just talked about, including the fact that americans are taking on record amounts of credit card debt?

Yeah, you just call that one point one seven in uh consumer credit card debt is is a record and um and the utilization credit cards is up thirty five percent, up from thirty three percent a few years ago. So you see a little more pressure there. That said, the vico course holding steady at verage of seven hundred and seventeen, which is a good score. And um we're seeing a little bit more a late payment this payment, but none have to really move the score right now.

Well, how much has the nature of the economic value of the data and analysis that you do? How much is that changed over the past decade? That used to be, I guess, people got a fight.

Es, don't score, you know, looked at that when they were buying a car, buying a house, getting a job. But this is a data driven economy right now. So how has that wide in the total address able market for your services that demand from businesses?

Well, so we started our scores business in like ninety eighties and there was all built on credit girl credit card payment behavior. And it's a short hand is a very efficient metric, fast way to figure out the credit worlington of the consumer and for consumer to figure out and what they're good for or from a Price and and capacity standpoint.

Um our software business takes into account a wide ranger data much more than just the credit of humanity history. And so I say as more data has become available, but our software has been able to make ever more precise ous decisions and and we take image of that. So those are the two ends of our business at the cores end in the software.

And so all the software business, how is artificial intelligence, especially given the sensitive nature of the data that you're talking about play? And what do you end up using IT for? What your customers end up using IT for?

We use we've use artificial intelligence machine learning for a very long time. We were in neural nets twenty five years ago. Um we don't use our artificial intelligence in our scores because the regulators need to have transparency, understand held the decision was made.

They need to understand how the model works and A I is a little bit more of black box. And so the regulators are really comfortable with that for under writing at least. That said, we do use A I in all kinds of ways.

We use a for synthetic data. We have patterns and A I um and we're trying to come up with um with ways to uh on IT and track the way the A I makes its decisions. And so we have we have some patterns around are using block chain to do that. So you know if used in our business, but I think there's a lot of care before you put in a writing.

all right.

balancing CEO of cycle.

Thanks for join us. Thank you.

What time for A C nbc news update with birthday, birthday.

hey on. After announcing him as his pick for interior secretary last night, president elections ald trump said today that north the corner, governor dug burden will all also be the chair of a newly formed national energy council. In a statement, trust said that the council will consist of all departments that deal with the regulation, transportation and production of all forms of energy and america.

Daughters of malcom x are suing the C, I A, the F, V, I and the N Y P D in a one hundred million dollar lawsuit today for their alleged roles in the civil rights leaders ninety sixty five assassination. In the lawsuit, the daughters and the estate of malcom x claim ed, the agencies were involved in the assassination plot and failed to stop. IT and the instruments owned by late rocker jeff back are going up for auction, Christie said. Today, more than one hundred and thirty items from the musician s collection will be up for auction. A lot is worth more than estimated one point three million dollars and includes a nineteen fifty four gives in less, paul, it's expected to sell for up to six hundred and forty thousand dollars would make a nice Christmas catch, right?

That's about hf, the total right there, right? But thank you. Up next, going all in on equities, mixon toli returns with the look at just how exposed investors are to stocks right now and how much more drive powder exists to drive the next leg again.

and check out one big winter in the doubt this week, disney climbing more than sixteen percent in monday's open for its best weekly gain in more than twenty four years at earnings yesterday the, and today, five and a half percent. Stay with us. Welcome back, max.

Anti returns. We have a look at investors exposure to stocks, mike. Yes.

we're going to someone elevated this measures from bank of america, from their own clients within the marlin's wealth management division. About sixty three percent of assets in those accounts is equities. It's about two percent age points below the high for the last, let's say, twenty years, which is about sixty five percent and equivalent to these levels.

It's not to say can co higher mostly is because the market is up. It's not because have been so consistently heavy, but this is a little bit of a push back to the idea that there's tremendous potential for all of this cash to rush into the market from underinvestment. You know, clients out there just doesn't seem to be the case. By the way, the other elections, the last two elections, we were down around there in terms of equity explosion.

More interesting. So a couple of questions here. And the first is, to your point, how much of that six trillion dollars call IT in money market funds? What is he going to take to see that come off the sideline? And perhaps just as importantly, looking at this chart, the other thirty seven percent, what is that date up of?

Well, it's it's bonds and its cash. And in fact, cash holdings in these accounts is below the long term average. okay. A lot of that seven trillion now in money market assets is kind of institutional.

Maybe three trillion of IT is individual in terms of what historically IT is taken to have a wholesale movement of cash out of money markets and into other types of it's a bare market. Okay, when the markets going up, if you're involved at all, you don't necessarily need to to equitius that cash because you have your your allocation. So i've been suspicious of that idea that these discrete dollars of money markets have to comment.

People just don't have to sell us as much they rebaLance into stocks as needed. And IT can be fine. It's just not the mechanism that I would look out for, for the the fuel for going higher.

All right, you always give us a hot take. My actually have a great weekend. Thank you. Up next, former acid administrator jim brighten's time on the future of space exploration and defense under the incoming trump .

s administration and A S T, space mobile shares following the earth after the space, space broadband company reported a wider than expected q three loss and missed sales estimates. And if you love the show, because you love the show and you want even more over time, you can stand that a code on the screen, follow us on linking there. We post exclusive content over time will be .

right back the honorable jm brightness and searched as nasi administrator under the first trump administration, and he establish the artist st programme to send IT americans and allies to the moon, this time to stay, while artists sts has progressed under by and time lines have slipped. But brighton's danford, a congressman from oklahoma now space investor, expects the president elect to accelerate those efforts, which could mean some contracting changes.

So we need to do is as quickly as possible get to the moon and then as quickly as possible transition to mars and or build the on architecture with a thought for mars and because IT is moon to mars, it's both it's, it's, it's, it's using one to achieve the other and we can go faster to mars if we use the moon is as the proving graph and um and in my opinion, we've gotta take advantage of everything that currently exist um and then as we move forward, figure out what is the best solution going forward um so I think yes, there will be a lot of people coming up with different ideas and concepts of how to get to the moon and maybe different architectures and capabilities.

Um but I also think that um the the the starting point should be how do we get there as soon as possible and then how do we build sustainability so that when we do get to the movie, we get to stay and then when we go to mars, how do we go as much of the moon program to make mars possible? Uh that's got to be the the key enabler. So I think there will probably be changes.

Well, brighton stein, who worked with space external, his NASA tenure, also thinks on musk's involvement in the administration. Are we good for the country?

I hear a lot of chatter about how much influence he's going to have those kind of things and true, he'll have certainly a lot of influence of president trump and that's not a bad thing. Um but I also think um there's also a lot of people need to recognize that you know congress is the one that funds all of these things in. Congress has been creating the policies and putting the policies in the law.

And yes, a lot of those policies will be driven by a vision that comes from the executive branch, for sure. Um but but we have a we have a very we we have a ship of state that is also hard to turn. Um and I know elan has done an amazing job uh of of finding ways around that that ship of state. I think that's going to be good for the long term.

And speaking of spaces and the next starship test late is expected to happen as soon as monday evening. We'll be watching for that. As for whether bright and and himself could be a part of the next administration, he is not commenting on that, but he didn't tell me. Quote, it's important to recognized that I want to be helpful to the trust administration in some way and if they call for whatever reason, i'm happy to entertain those phone calls now for the full conversation with a former and acid administrator, which also goes into quite a bit of detail on the national security side of space and commercial space. Go to manifest face, scan that Q R code on your screen, or download wherever you get your podcasts.

All right, well, reality bites. Yes, I am a gene X A up next, the CEO of a biometric online identification company on the fight to sort out the real customers from deep face and check out the bigger decliners for the week on the next to one hundred. Plenty of chip names on the list, including super micro, micro and microchip over time will be right back.

Welcome back with the rise of deep fakes and cyber crime, it's important, more important than ever for company to verify the real identities of customers, employees and partners. Today, john takes time out with a CEO whose company does just that.

Andrew butt is a CEO of eyebrow, is a london based company he started in twenty eleven to solve the problem of online identity verification. These companies has customers including ubs, ig and the department of homeland security. Bud comes from a long line of engineers and entrepreneurs his great grandfather found at the company that made light fittings ings in the eighty nineties. His father and grandfather made high precision counters for car odometer, or even hand counting .

is count as, for example, that flight attended, sometimes used to to click the number of passengers that are on that. That is go a hand telly count that was invented a and manufactured by by his business. I grew up in an environment in which entrepreneurship, in which innovation image engineering was the hike, was the highest possible contribution of value that one could make, in which engineering was a vocation, not just, not just a career keeping .

track of people, has gotten a lot tougher in digitally driven economy, where the most elaborate heist aren't often physical attacks or uses their software scans and hacks. Eyebrow says transactions using its technology surged by more than sixty percent in the last year.

So to prevent impersonation, I prove uses a light colored light from a smart phone or monitor screen to shine on the face of someone trying to sign in, and uses cloud based technology to match those results with footage of the real person. The technology spots AI overlays and physical disguises. IT would even pose a problem for tom cruises eaon hunt. When mission .

impossible was started, you needed a suitcase with a sophisticated print to a millions of dollars of technology. Probably wasn't real anyway um and IT was an incredibly advanced, expensive, sophisticated. The thing in order to produce that mask would you would you put on today using a kits out? There are over hundred kids available in the internet, some of them free, some of them under one hundred dollars, which will enable anyone to do exactly that effortlessly.

So the time now take away reality bites. As in IT will increasingly take compute resources and software to tell reality from fancy flip side of the murder, metaverse dream and digital twins for high and design and testing. It'll be harder to tell who's real and therefore who gets access to buildings or to set up accounts or transfer money will need software for that too.

who IT is a whole new world up next, rbc capital markets, head of us equity strategy Lorry cavasa, on whether investors should buy this weeks's market dip when trading kicks off on monday. And check out the vaccine makers, which getting hit hard in the wake of president elect trump nominating vaccine credit Robert f. Kennedy junior to run the department of health and human services stay with us.

Welcome back to over time, the major average is losing steam after a strong post election rally, with the next act shutting more than three percent this week journey. Now to look ahead to next week's action is Lorry policy, R B, R B C capital markets Lorry a happy friday. So you think the market action has been fully reflected a whole hum earning season and a stretch consumer. So what does that mean for entry points here?

So look, no banks for having me. By the way, I think we've just had a problem in terms of positioning evaluation coming into today. And I know there's a lot of uncertainty swirling, but I do think the market was largely looking through a lackluster earning season.

I think the consumers wales have been well known for quite some time, but there was just sort of a chill that came through an company commentary on the overall maco backdrop that was little bit worse than what we'd been seen coming in. And somehow the market just ignored that, focused on the election. And IT feels like that kind of dour commentaries is finally coming back home to roost in here.

So the biggest tech companies were big part of what brought the major averages to where we are today. Two big things in tech. Next week, we've got microsoft ignite developer type conference and in video earnings, that's AI demand and supply. How important is, is to watch how the market reaction doesn't to those things?

Well, I think it's always important just in terms of the heavy market cap representation. And even if those stocks under perform a little bit, we still need them to behave in general. And I think that we just continue to see schedule investor expectations as earning growth expectations are accelerating.

And Frankly, a lot of the commentary we've been reading about ai, not in terms of these companies but in terms of their end users, has really been kind of hoom or small potatoes in terms of the of outputs that people are getting from AI technologies es so far. So I think there's a lot of skipped ness in here. But again, you're sitting sort of crowded levels. You're sitting at crowded about are extremely expensive valuations in these stocks, and there's just not a lot of room for error in here.

So even the fact that we have seen the markets gin a little bit of a breather Lorry, if that continues due by on the dips.

So I think we have generally been wanting to buy on dips and and most of the pullbacks s that we've seen in recent years, and we're really all of them, Frankly, since the late twenty twenty two period, have in that five to ten percent drawled down. That is within the Normal range of a typical correction. Anything beyond that tends to be associated with a growth scare.

I don't have a growth scare, you know, sort of a recession near missed my horizon right now. So we may need to see the market pull back just a little bit more before we get into that kind of five to ten percent renter. We can really pull some froth out. But generally, we do think the economic backdrop is still very, very strong right now.

So what does that mean for rustle two thousand and for small cabs, which finished down four percent on the week? Now .

look, I think small caps have needed economic tail winds to come back. I think we we sort of put what we were going to put into that market in terms of the ed. You've haven't had sort of peak like valuations in that space, but you have had peak like positioning all the way back to the twenty sixteen hides, basically right back where we were the last time trump's y elected.

The problem is that I think a lot of a lot of the trump move was pretty ded. And so we're sitting here and our darling down fed expectations again. So you know, I think the set up for small caps, as long as we're getting more Scottish on the fed, that's very, very tRicky for this space.

So at the beginning of the show, Allen entner was telling us that he thought investors were focused on all the positives out of trump policy and administration and not the the potential negatives from those policies. How much do you expect will really change or could significantly affect the market between now and, let's say, february, when that administration, we expect will actually start doing things?

So I think we're a little .

bit of a discovery process right now. I'm so president trump s or a present elect trump s still putting through his picks. The market is reacting to those in summer stances, not in others.

We obviously saw health care stocks get hit very, very hard today, but the reality is that we've gotto seat the new congress, get the new administration and get these folks in their offices before they can even start working on legislation. And that, of course, we'll take some time. So IT does feel like we ve got a little bit of an information vacation at .

this point in time. IT is my sense that we could see trades h, tariff s and tax policy materialized in tandem. So raises the question is twenty twenty five look more like twenty sixteen for the stock market or twenty eighteen?

I think there's a fantastic question organ as one that came up in my meetings this week. What's the sequence of events? And if you go back to twenty seventeen or twenty sixteen, rather, there was initially optimism on the broader economic ramifications of a trump presidency.

Then people were focused on tax and then people were focused on types. And now we're kind of doing the bad stuff and the good stuff at the same time right up front. And I think that has the market a little bit confused in here in terms of what to focus on.

But the playbook of twenty eighteen, dramatically different from the playbook of twenty sixteen and twenty sixteen, industrials and materials were hit very, very hard during the china trade war. You're sitting at three standard deviations on my valuation models in that sector. And we've really been cautioning people against focusing too much on tax for the industrial sector and really needing to remember that terrible set them pretty hard.

All right, Lorry colossi from rbc. Thank you. Well, as mentioned on tap next week, my exclusive interview with microsoft chairman and CEO soft nadella is live from the microsoft ignite conference in chicago.

That's tuesday, eleven thirty A M eterna. And you we'll be talking about IT here on overtime as well. I got some more comment from that conference as well.

Oh, cannot wait. And then of course, we get in video names next when they two. We do get some icon data and will have to just to monitor these markets after we had another down week.

I think it's the third for the S M. P. And four.

as lord just mentioned, there are some questions about how much use companies really getting out of A I expect to hear some of that at a microsoft right will be watching.

Uh, in the meantime, have a great weekend, john.

Yeah, have a great fight night, since I know watching that .

doesn't a first heard over time.