Okay, welcome to episode 47 of the market maker with Amplify Me, myself and head of trading co-founder, Piers Curran, and what's going to be the last episode of the year. And don't worry, if something really does go down in markets between now and the end of the year, I'll endeavor to jump on and I'll do a kind of breaking developing story if there is one. Hopefully that won't be the case for everyone to have a world as a rest I'm sure over Christmas but in terms of the episode for today really wanted to focus on three different areas, those three areas being Boris Johnson. He's got a bit of a rebellion on his hands at the moment after announcing Plan B amid discontent. I'm sure everyone has read by now over his handling of Christmas parties apparently from last year, while we were all in lockdown, of course. And we'll talk a little bit about that in three sections, the kind of Omicron update that then led to this Plan B strategy being deployed, the political stuff that he's facing at the moment, and then ultimately for markets. What does this mean for the Bank of England and interest rate expectation timing. Then we'll pivot and we'll talk about inflation, probably the biggest event of the week has just come out at the time we're recording this on Friday afternoon, London time. And that was US CPI just came in at its highest level in 40 years stocks, bonds rally, dollar drops. So go figure, but yeah we'll explain the reason why you've got a really counterintuitive move to what you would think if you're not following markets day by day. Then the final thing is, we're going to talk a little bit about what question I put out to the YouTube community, if you just search amplify me on YouTube you'll find our channel. And on Thursday I was talking about Apple, which is on the pursuit of becoming the first $3 trillion company. What I asked our community was, if you had just a X number of cash, but you had to invest it in one company for a 10 year hold, and it's out of the tech titans. So I'm talking about your apples your Amazon's alphabet, Tesla, so on, which one would you choose. Now, the audience said, resoundingly, Tesla, whether the people listening now agree or not. I don't know. But what we're going to do is after we've talked UK plan B after we've taught us CPI peers and I, we're going to pitch you a stock. What we think is the best one for a 10 year hold. Not going to tell you who they are now. We've both chosen a different one. And we've both not chosen Tesla. Well I think yeah I think I was going to say I think it's pretty obvious that mine is not going to be Tesla based on what we've been discussing on the podcast in previous episodes. Yeah, but we'll we won't give away any more than that yet you'll have to stay tuned and we'll get around to that as the final segment so kicking things off then let's talk about what's been going on in the UK because the British pound against the dollar actually hit its lowest level in a year earlier today, not actually on the announcement, but when the rumors were circulating on the morning of that evening when he announced it midweek, and what it broadly covers this plan B is masks are now mandatory in certain settings, working from home is advice again, vaccine passports needed for big events like clubs so I know you're a big club of tears, you have to get your vaccine passport out now. So why is all of this happened so so promptly was a couple of things let's just talk about Omicron first and then we'll talk about the kind of optics for Boris and what his strategy likely is. We never know for sure of course, but sages emergency meeting happened early in the week before this announcement came out and they warned ministers that Omicron hospital admissions admissions could breach a thousand a day by the end of the year, unless they adopted some form of tighter restrictions. And this comes as this new variant Omicron is now behind around 8.5% of all of the UK's current virus cases, and that was compared to around 4% at the beginning of the week. And what the UK government was saying their press conference, when Boris delivered this was that it's around two to three, so every two and a half days, the numbers double, double up. And as far as how transmissible that is, it's far more transmissible than what we've seen with the most dominant current strain which makes up most cases which is the delta one still. So a couple of things then from a health perspective, one of the things that I saw out of a good friend of ours Jim Reid at Deutsche was saying, and this is one of the things I was commenting on that in a briefing. This is what Jim Reid said, he said, ultimately, the issue from a health perspective is that even if Omicron does prove to be less severe, which the initial indication so far pointed to a rising transmissibility could offset that. That could mean that more people are in hospital, even if a lower proportion of them are severely affected. The idea being here is that case rates in Britain at the moment around 50 K a day. This is about the same as the double top peak that we've had in the last kind of six months period. But Omicron hasn't really taken shape yet. And it's going to get a lot worse before I guess I'll better and that's probably going to happen over the coming weeks into New Year. So it's a proportionate amount of people. Yes, it's less severe, but if that number is great enough, obviously it's going to put more pressure on infrastructure, the NHS, and so on. And there comes then the rationale behind the government kind of pulling the trigger. So then we move on to say the politics because Boris has had a tough week. I think he's, has he just had another baby as well. Is this the ninth or the 10th? I lose count. I know it's number two with his current wife. Are they married or not? I think they're married now.  But he's been busy in many ways. Boris Johnson then he's had a few different things. So he's had this big debacle over what's coming out. And you know, he keeps coming out of the woodworks now that I'm super interested to see what he says. Dominic Cummings. You know, that guy has, has all the WhatsApp messages. He's got some inside photos. You know, he's going to drop those right over Christmas. If I was Dominic, I would leave it. I'd wait until Christmas Eve, and then I'd be like, oh, drop it into the Daily Mail, the sun, and then just say, look what, look what Boris was doing. He'll be Boris on top of everyone's shoulders at number 10 with his Sambarro on. But that, that was, that's obviously been a big one in the papers. And this unrest comes at a particularly problematic time politically because there's a by-election. Not sure how many people are aware of this, but North Shropshire are having a by-election. Okay, now why are they having a by-election? Well, the conservative MPs have already been aggrieved by the way the Prime Minister's dealt with a sleaze scandal that culminated in a guy called Owen Patterson, and he had to quit. And he was the Tory MP for North Shropshire. So last time they had this by-election was in 2019. So it's had to be held now. And actually the Lib Dems, who came third in 2019, a tip to take it. They've got to overturn a 23,000 Tory majority, right? So not that North Shropshire's particularly important in a sense of itself, but the way that politics typically works is that if you start to see big shifts on the ground, it gives you early kind of litmus test in the end of the sentiment more broadly changing. And one of the things that came out overnight was the latest YouGov poll. And that now shows Labour with a four-point lead at this present point in time in terms of Westminster voting intentions. I wouldn't get too carried away with this as yet. I don't think Boris Johnson's at risk, but certainly there's just a lot happening at the moment that he's having to contend with. And yeah, the next thing then is like, what does this mean going forward? We've discussed Omicron, we've discussed the politics. A lot of people have asked me about, well, what's Plan C? Because, you know, we weren't expecting to go to Plan B so quickly. And I read even people like Rishi Sunak and others were pretty surprised when he pulled the trigger on Plan B so soon. But this is what's called in politics the dead cat strategy. If you imagine the sight of a dead cat being flattened in the road is quite a shocking thing, right? So you make enough noise over here to deflect the optics and attention to over there. And so, yeah, a lot of that partly playing in, you would say, I'd say, though, that Plan B was inevitable. Plan C might well be inevitable. It's just timing, I guess, and how stringent that is. And Plan C, all we know at this point is sources at number 10, say it's very likely care home residents will be banned from seeing more than three visitors over Christmas. Probably the most problematic one, vaccine passports, they could all be extended to basically a more broad amount of venues.  The other very controversial and divisive one is face masks. You'll then need to start wearing those in all indoor spaces again. So it's not, you know, this whole idea of lockdown, we're not in kind of lockdown, Parse. These are just the steps that are happening at this point in time. So yeah, that's the summary of it. But any any feelings or thoughts for you, Piers, and just what's being going on this week in the UK?  I mean, for sure, the trigger has been pulled on Plan B way sooner than Boris would have done it normally, if it hadn't been for this massive sort of uproar about Christmas parties at number 10.  I mean, I get the argument about this whole parties in Christmas parties in number 10, did they happen, did they not happen either day, right? But personally, I just couldn't care less. I just don't care what happened in number 10 in December 2020. All right, I entirely get the point about that you can't set rules for everyone and then break them yourself. I get that that's just just there's so much more important stuff to be dealing with. I'd rather have the government focusing on what is still a monster health crisis, and trying to deal with that, instead of a lot of their capacity, having to go towards fighting fires about something that happened 12 months ago. I'm not defending the government I'm not saying they're right and they should have had parties of course not but. So hang about you're you're saying that they should be serving the public and not their own agendas. Is that what I'm hearing. And the other the other the other one of the other things that I really hate I don't hate many things but one that really riles me is Keir Starmer on TV, crying about something that Boris has done and something that cut that guy. I mean, you were saying the Lib Dems are on to win North Shropshire and by the way, don't belittle North Shropshire. That's where that's where I'm from. Just on the border at least. That's not to my mouth North Shropshire massive. But the fact that the Lib Dems are maybe coming from third place and overturning a 23,000 majority, if they do, we'll have to have to wait and see is actually just because the Labour opposition, they might as well not be there. It's so bad. And I think anyway, it's kind of a reflection of the leadership kind of candidates in this country in America in loads of places I think there's a kind of big failing on that kind of quality of candidate when it comes to leadership these days. So human sex JP Morgan, their economists have all been out revised their Bank of England call the BOE meeting the final one of the year is on Thursday, next week. And if you were to have looked at market pricing a couple of weeks back, hike in December. So we pushed out till February, the rationale February is when the next monetary policy report comes out and they issue their projections for things like updated growth, inflation, obviously inflation as well will probably be a little bit more closer towards that peak with they've already forward guided towards hitting around I think March, April time, and you had one of the biggest Hawks this week, Michael Saunders came out, and he was basically saying, Oh, Omicron. I'm not so sure now, and he's one of the outstanding Hawks. So, December off the table now. Yeah, definitely 1000% off the table and actually, if you want. I think I might have mentioned this a few weeks back I'm going to say again, if you want accurate Bank of England, monetary policy predictions. Don't listen to Goldman Sachs. Don't listen to JP Morgan. Listen to Mr Anthony Chung. I did call this didn't I about five episodes ago called it and you've called it several times now. And you've been well we'll see you're going to be right. Yeah, I mean there's no way they're going to pull the trigger now, absolutely not especially when plan B is in but now everyone's going what about plan C. I mean whether whether whether Boris has got another kind of crisis that he's going to have to pull plan C out of the bag just to deflect attention from we'll have to wait and see but yeah I mean, obviously sterling has been incredibly weak. And, you know as we've gone through this kind of realization over the last couple of months we've kind of come from above the 138 handle just now down one well almost down to the 132 handle right and that's just pivoting because obviously what only has the expectations on the Bank of England side become more dovish. It's happening at the same time that expectations on the Federal Reserve side has become more hawkish. So you get this monetary policy expectation divergence. And that's when you really see exchange rates shifting because you've got a weak currency and a strong currency at the same time. And so yeah I mean cable. That's literally just this month in the month of November. It's gone from 137 to 132. If you take the November high right the start of the month. I mean that's 500 hand pips. That's that's that's a very very big move. And look there's more to go.  Let's just say quarter four last year so it's only 12 month lows. You know I can see it's getting down to 130 or lower there's a good there's a good level I'm looking at this is 127 on cable which is actually the September low from last year. So, you know there's certainly, and I guess what puts that view at risk is Omicron in the US. We're not quite sure I mean it hasn't quite, hasn't quite got there yet in the same way that it's here in Europe and you know really starting to cause concern so I guess we'll have. I mean you've got to assume it's going to be a similar thing in the US in terms of Omicron starting to kind of take over so it'll be interesting to see how we know what the policy moves are, you know, to deal with that. And I was talking to one of our colleagues, safe about this actually about how he was he was explaining about how on a broader global concept you have developed and underdeveloped economies and the vaccination rates are wildly different. South Africa has a vaccination take up of say 30%. And so obviously you're going to see much higher hospitalizations at the moment, because one of the things that the vaccine although you might catch COVID, because things like Pfizer by index efficacy rates have been diminished by this new mutation as variant. The idea is we don't go to hospital because we don't get that severe symptom. Whereas if in there and, you know, other underlying issues in that area Southern African nations account for half of the world's HIV cases and things like that. Those numbers are going to look quite bad but there's a big divergence between the vaccination rollouts is the point. What he was saying about in America. America is like this one nation where there's high vaccination areas like the East and West Coast, and then there's spots in America where there's very low vaccination take up. And it's almost like that's a quite a can imagine quite a tricky proposition to handle because when you're talking about the flow mobility of people within a single nation not even outbound coming into within your borders. Although, yes, there's perhaps then degrees of travel might be limited between states and different federal setups but it'll be interesting to see how the US can cope because there's some areas that could be highly susceptible to omicron cases going forward. And yeah for sure I mean the US rates are still like 60 ish percent. In mainland Europe, a lot of countries are up in the 90s as comparison. So one thing that has happened I read this week those the booster shot take up in America has actually picked up. Now the Omicron's hit the news is incentivized people to get the booster shot, and they were doing about a million a day they're on, they're on pace at the moment which is the fastest has ever been since boosts been introduced. So, yeah, there's a lot, lots of play still on that that sort of things but I guess is good hook you were talking about policy divergence and a big trigger point of course for the setting of policy in America at the moment as much as Omicron's an emerging risk is the labor market and inflation. And we've just had US CPI come in for November at 6.8%. So you thought last month was high 31 year high. It's now 40 year high. And so the core reading you're in year 4.9%. The number is extremely high, but the market rallied equities and bonds, the dollar fell and gold moved higher. So peers perhaps you could just talk us through the rationale for this type of activity and what otherwise is a contradictory move. Yeah, I mean it's about expectations and how reality matches up with expectations. That's how markets behave. So we go into an event with a certain thing, so traders will, will head into an economic data release, certainly the big significant ones like US CPI and they'll have an expectation of how this is going to play out in their head. Okay, and that expectation it depends is based on. It can be a huge sort of range of factors and it very much depends perhaps where you are where you sit in terms of your job or who you work for me it goes from let's just say a big kind of hedge fund or a big asset management firm or a big bank. Okay, that those expectations are coming from a huge team of people, analysts who are crunching all the numbers and come using models and coming out with a predicted number, right. That's on the one extreme on the other extreme you're going to have, you know, individual traders who are perhaps a little bit more emotionally driven. So when Biden earlier in the week comes out and starts talking about inflation unless going to be really high and then all of a sudden you're like oh my God it's going to be hang on if he's coming out and talking about it or hang on this is going to be, this is going to be a really high number. And so on that end of the spectrum it's a bit more emotional and what tends to happen is people. They worry right as human beings we we worry you know what's the worst case scenario, and the worst case scenario for these inflation numbers is that inflation is much higher than expected so you kind of go into the event thinking what happens if it's what happens if it's really high what happens if it's much higher than expected. And what happened today is it wasn't higher than expected wasn't lower than expected either was bang in line with the official forecast. It's kind of emotional reaction it's relief. Oh God thank God it's not, you know massively higher than expected okay it's only in line. Okay fine. Let's now react.  It's a bit of a relief because inflation hasn't come out much higher than expected that some people were fearing so yeah stocks have gone up, the dollars weakened, etc. Yeah and Biden coming out, I mean his exact phrase yesterday so of course very timely, he said Friday will not reflect the recent decline in some prices, and that includes energy prices. The oil's had a big move lower after this specific period of which this inflation report measures. So, yeah, this is this is quite a tactical approach is deployed not only by politicians but by corporations as well, where if you know there's going to be potentially harming news. Psychology kind of management in a sense of you're better to come clean quick.  Yeah and on that energy point you said oil had its big sell off on the 26th of November. So the point being right at the end of that month and so you know and it sold off from 78 bucks and we bottomed out 62 I'm looking at WTI crude 62 by the by the 2nd of December right so basically on average in November. The average price of WTI crude in November was probably up around $80 whereas so far for December. I'm only a third way through the month but the average is more like $70 if not maybe a touch lower on average so that's a big step down but yeah so that that big drop. You won't see that until we get the December inflation figures which won't be reported until mid January. So that's kind of what Biden was saying so people are off the back of this number today it's like okay relief okay it's in line and actually we may get a drop next month when this you know factoring in this energy price decline. So either way it remains high does drop reflecting a bit of a pullback in energy. The Fed are going to just go ahead and accelerate taper in Jan. Would that be a fair assumption with with the risk factor being the development between now and I guess well the problem that the Fed have is the meeting is Wednesday. Yeah, so if you're the Fed, Omicron your right hasn't really started to materialize in the US yet. The Fed can't wait the meeting is Wednesday. Yeah, the conditions are ripe to do it. Yeah, they definitely go ahead next week. They definitely go ahead with acceleration of tapering. And you know it's that end of quarter meeting so we talked about this where it comes with their updated dot plot and their updated forecasts and projections so they can use those figures to better justify and explain their action. So it's all lined up for next week for sure. Obviously, as you said that Omicron thing. And I think I think the Fed that they have to take action now and adjust things later as they're going along if warranted, and it might not be that it's warranted in which case fine great carry on with that accelerated tapering timeline. Right, so this is just like your understanding of Fed language. There will be one of those where they roll out that kind of will continue to review incoming information of the variant as it develops and make a decision accordingly. Yeah, one of those types. Absolutely. Yeah, I agree. Okay, cool. Well, let's move on to the final segment, which as I said, came around because a lot of people were talking about Apple this week. And the reason why is it's only about 6% away from becoming a $3 trillion market cap company the first ever. And a couple of things. I mean, Apple, one thing I had read there's been an increasing amount of options interest in Apple, particularly in the retail market, and usually those retail crowd have been more focused on companies that they can turn around.  I mean, GameStop, we were talking about is it was actually beginning of this year feels like a few years ago. Yeah, it was it February, wasn't it? Yeah, it feels like, yeah, it feels like a long time ago. But that was when we were talking about, you know, 1600%. Now, Apple, you're not going to get that type of spicy return on an Apple investment. But the idea is, is that people have been getting quite quite into it from a more broader perspective. And one thing this early this week was Morgan Stanley, they came out they up their price target I think it was to 200 from about 164. They came out the idea that a lot of the things that Apple have not yet brought to market. One of these being their kind of move into virtual reality space, and the other being self driving vehicles, electronic vehicles and so that not being baited into the share price was the view and they still remain quite bullish. And one thing that's happened is, although markets, the volatility has died down when we're going through that volatility bout last week. Apple, it was like Apple is the flight to quality play. It's, it's gold, it's treasury is Apple shares. So I rewriting the textbooks a little bit, because it's such a monster. Now, it's impenetrable by like negative developments it seems, but at least that's the perception it would appear but I know on the latter point of autonomous vehicles and things like that you wanted to mention so Yeah, what have you got for me. Well, yeah, I mean this, this guy Morgan Stanley, you know, thinks that Apple's got a lot of potential upside, because of the fact they could win the race on this kind of driverless vehicle. That's the situation. I just, I can't, I can't understand what he's looking at. I don't know I don't know what information he's got, but all the information I look at. They are losing the race. In fact they've probably already lost it. So basically in 2015. This is what Tim Cook said. And this was part of a Wall Street Journal conference right, and he said, we want to, we want to deliver an iPhone experience in a car. And really the first moment where Apple hinted that right we're going to start making a car, and it's going to be a driverless vehicle. Ever since then, it's been super secretive. They've, they've kept it very, very, very much under wraps their project is called it's rumored to be projects Titan, right. So I had a load of expert people along the way to come in and head up this kind of section, and they just kind of just dropping like flies so Doug Field is the latest one that has just stepped down so he was the former Tesla executive and he came in to Apple's car project. And so he's just kind of left and actually he's the fourth head of the project to depart in the last seven years. And then on top of that you've had three other very senior executives leaving in the last few months. It looks like the wheels are coming off. Apple's kind of project Titan. See what I did there. Yeah, I like it. Here are a couple of stuff what will actually like who's in this race anyway right so in terms of the tech giants. Google, they've got this thing called Waymo. Okay, this is their robo taxis. Amazon, they're in all in there and amongst this as well obviously there's is called zoops, Z double O X. Apple project Titan IBM are quite interesting IBM snuffled up an Israeli company called mobile I back in in 2017. What's interesting about mobile I is slightly different to the others, all the others they're like right, let's try and build a driverless vehicle, let's try and build that mobile I is actually they develop advanced driver assistance systems. So it's actually an add on to they're not trying to build a car. We're not car experts we're good at AI and that kind of stuff so let's just stick to the system. And their actual plan is to then, you know, license that system to the giant automakers. So actually in terms of the rest of the industry, the automotive industry. So it's very incentive for them to kind of go with mobile I right you know and therefore not get trampled by someone who manages to hit the jackpot with their driverless vehicle and they take over the world so mobilize a slightly kind of interesting one on a tangent side but but there are other automotive giants are all over this as well obviously it's a big threat so you've got GM and Honda, they've teamed up they've got projects they're calling Ford and Volkswagen, they've teamed up, there's is called Argo, Hyundai, there's is Motional. But look, I guess the point I want to make about driverless vehicles is, where are they. Because I don't know about you but for years and years and years and years and years it's like, they're coming with where we're there it's going to happen and it's like well. Hold on, let me just go and ask my Tesla humanoid. Okay. Sorry. No, it doesn't exist. Yeah, exactly. Well, here's another good stat on that front to prove, make a very good point that Google. So that while they're considered to be the market leader I'm going to talk about Google in a minute. But they're way more robo taxes considered to be the market leader when it comes to trying to try to win this race but even then right in 2018, they ordered 82,000 vehicles for their robo taxi driverless units and it's like 82,000. Wow. Okay. They've done it. But here we are now three and a half years later, and they still they're still only running a couple of hundred cars. What's going on here because it never quite seems like we, they, anyone, any of these lot deliver on their, their aims and there is one thought and that is, you know, why is it not working and it's around actually the way AI works. It kind of, it kind of went down a tangent in the early noughties in terms of the direction that AI was developing in, and that tangent's been the path that's been followed and it's like actually was that right tangent because basically, it's all about data right so there are people who incorrectly think, well, hang on, in my opinion, incorrectly think Tesla, I've got a huge advantage here, because of all the data that they can harvest from all of their vehicles right. But actually all this data is fine, but it's quite basically the way AI works in a vehicle at the moment is it's basically whatever the vehicle can see in terms of its cameras and its radars and stuff it can then account for right so it can see white lines it can, you know, recognize signs like for example so machine learning is part of this AI process so if you want to, if you want to program a car to be able to recognize hang on there's a stop sign coming.  They're writing code to say look, a stop sign can look a bit like this, here's a million pictures of stop signs. You go away machine and have a look at all these pictures and find out the common elements and then when you see something that has the common elements bang that's a stop sign right and hit breaks. Okay, what AI can't do at the moment is they can't, they can't operate like a human in so much as there's this thing in human beings it's called object permanence. Now you learn this Anthony Chan, you learn, you learn objects permanence by the time you were seven months old. Here's an example, you get a toy when you're seven. Okay, and your, your dad is waving at a back are you're really excited smiling smiling, and then you put the toy under the blanket.  Now if you translate that into a driverless vehicle AI system, take a bike. All right, let's say you're driving along there's a lorry. And then there's a bike. Okay, you can see both you can see both but then if the bike goes behind the lorry. Can't see it now, and the AI system can't see it and can't account for it. And I think perhaps one of the reasons why we've always had false dawns on driverless vehicles is because of this kind of shortcoming. But there's a clever dude in Norway that's trying to come up with a system that kind of gets around this where where actually can account for, you know, things that go behind other things and then and they've had, they've had a smaller amount of success for it so I think the whole, the whole kind of driverless vehicle sort of pot at the end of the rainbow thing, if the race is still on. It's just Apple are losing it spectacularly. Do you want to know the number of miles that Apple's car drove last year in testing 19,000 miles. Do you want to know how many Waymo. Google's wanted 630,000 and Apple's 19,000 last year that was less than 2018 they're doing less and less miles. And the others are just, they're way off the pace. Is this just one of those situations where a lot of these companies are doing it because everyone else is doing it and to keep up with the Joneses. You have to do it. And they're not really that vested into this they're just kind of like, let's just do it and keep the keep keep the market content that it's a thing. I think around it like Titan. And I think when you're when you're such a massive company like Apple who've got just cash coming out of every poor in your body and you just not quite sure what to do with any of it, never mind. All of it right so you, and then I guess there's perhaps probably, there's probably shareholder pressure coming in from some of the big shareholders are like come on why aren't you innovating. Right this iPhone is great but you know what's next come on. And so, you know, I think these big tech giants have to be getting that dipping their toe in all of these kind of trendy things, even though for Apple, it's a massive waste of money. Well, I can, I can hear the PR agent of Tom Cruise calling up GM and Honda soon. Let's get back to your pick then back to the original question of yeah out of all of these big stocks at the moment and test as one of those. As I mentioned that's the kind of crowd favorite in our community. But for you, you've talked a lot here you talked a bit of a game for app for alphabet. Yeah, so tell me a little bit more about what you think about alphabet. My money's on Google baby. If you want to invest in one of these things for the next 10 years, excluding all other companies on the planet. It has to be one of these. It's got to be alphabet. Just a couple, can I just give a quick bit of history before we properly dive in. Have we got time. Basically there's always these trends right these cycles let's call it of this whatever you I don't know that the celebrity stocks, the stocks that smash at the park in terms of growth, and there's always a cycle, and it's been the fang cycle. Okay. But this cycle has been going on and on. I got off. It's interesting that. So if you go back to the 1900s, I'm going way back here now like literally the first decade of that century 1900 to 1910. You had the leading stocks then, which is kind of primarily about railroads and stuff. You won't have heard of any of them. So Union Pacific, or maybe you've heard of that one, but Atchinson, Topeka, Santa Fe, Western Union, sugar refinery. These were the fangs 100 years ago. They've got vanished right you're going to hear my point in a minute in the Great Depression end of the in the 20s into the 30s it was container corporation. Did you ever watch Zenith radio ever heard of any of those. No, 1950s. So here they the fangs this is when they started to get cool names. Right, this is, this is an investor thing by the way, it's investors grouping together certain stocks, what like like an amplified blockchain. Absolutely. In the 50s, they were called the nifty 50. Right, and actually the stars of that market were now you will have heard these Xerox McDonald's Coca Cola IBM JC penny Polaroid. Now those lot, I just want to say because there's a probable misconception that fangs can only go up. These things have gone up and up and up. Oh my God, they've gone up again. Oh they've gone up again. Oh wow now they're going to go up definitely right. Well, after the all those companies I've just listed off the nifty 50. They came crashing down in the early 70s. So some of it like Xerox dropped 70% at the start of the 70s Disney dropped 82% at the start of the 70s. I'm just saying these are cycles. There's, there is a down part to a cycle. Right. So, even though these fangs only ever go up it seems they will come down, some of them more a lot more than others but but anyway then we go into the the 40s right. And, and actually I didn't realize this as I was reading up on this. So there's a guy called Jim Kramer, who you obviously have heard of but our listeners may not have done but he's a kind of very sort of famous guy well CNBC but also a kind of journalist bit more broadly financial sector journalist but yeah mainly stars on CNBC so he came up with an acronym at the start of the noughties and he said look Google eBay research in motion, aka blackberry Qualcomm and Yahoo. He said those, those are the ones and he and he gave it a name he called it Gurkwi. Catching. Now, now that bombed because I'd never heard of Gurkwi even though I was trading back then but I can't I can't ever remember that but anyway obviously Google were in that bunch right. They're the first, that's, they were, well I guess Microsoft as well. I mean Microsoft are the oldest fang, even though they're not in the fang by the way, I'm going to give you a new acronym now in a minute. What was interesting though, do you know who came up with fang as an acronym, Jim Kramer, which I didn't know. 2017. And he said, Facebook, Amazon, Netflix, Google. There's a notable absent from that list, Apple, Apple was not in the original fang. It was Facebook, Amazon, Netflix, Google it wasn't until. Oh sorry, now that was in 2015. In 2017, Apple then was added and fang got its AA, right. But Netflix really does not deserve, in my opinion, to be grouped together with those other companies. I'll give you a start on that in a second, but there's a new acronym. If we want to bow down to pressure, we need to put Tesla in there. Obviously Microsoft. Okay. So if you take the N out, that's Netflix, you're gone. Bring in an N and a T. It's like the Christmas quiz or something. I have a T. Hang on. Change the Google to Alphabet, so you've got another A now. And believe it or not, you get Fat Man. You heard it here first. Beers Curran, the Fat Man. Fat Man, that's F-A-T-M-A-N. So it's the Fat Man index. Now, of the Fat Man's, who's going to take it in the next decade? It's Alphabet. And here's why. Firstly, well, in short, YouTube growth, Google Cloud growth, they've got a big advantage on the AI race. And if anybody's going to win the driverless vehicle, currently it looks like Google with their Waymo robo taxi. But as I said, Jory's still out on that whole driverless vehicle thing. But look, here's some figures for you.  They generated $65 billion in revenue in quarter three of this year, right? 65 bill. Now, whilst that's not as big a number as the likes of Amazon, right? But their growth rate is just sensational. So even though they're a behemoth of a company, they grew at 41% year on year. 65 billion in one quarter at a 41% growth rate. Now, off that 65 billion, advertising obviously is their core. 53.1 billion came from advertising. Then there was 4.9 billion from Google Cloud. And then others, right? Making up the rest, which was 6.9 billion, okay? Now, YouTube obviously falls into the advertising part. So how much of the 53 billion was YouTube? But it was actually 7.2 billion, okay? So in one quarter, Google generated 7.2 billion in revenues from YouTube. That puts it on for 2021. We're looking at a 20.2 billion revenue from YouTube compared to 12.9 billion from last year. That's a 57% growth rate. So YouTube advertising is running at a 57% growth rate. Why does Netflix not deserve to be in the fang? Well, basically, Netflix posted 7.5 billion in quarter three, okay? So YouTube 7.2, Netflix 7.5, so pretty much the same, right? But Netflix growth rate, 19%. So YouTube growth rate is 57%. So basically, YouTube is bigger than Netflix and growing three times faster, right? So Netflix, get out. You don't deserve your spot here, right? Let's talk about the cloud. Because here, AWS, and maybe you're going to talk about Azure, I don't know. But with the cloud business, they're only generating 4.9 billion in quarter three, okay? Obviously Amazon and Microsoft have got the lead here. But in terms of worldwide spending on public cloud services, this stats a bit old. In 2019, it was 243 billion, okay? That's a big total for all cloud services, Amazon and Microsoft taking the bigger shares of that. But that whole market is expected to grow from 243 billion to nearly 700 billion by 2025. So it's going to triple. So the point here is who's going to, I guess Google is growing and will win more market share of a market that's going to triple in size. And so I think the potential for their cloud business to grow is definitely particularly interesting. So I think, you know, and overall, if you just strip all of it out, what are the growth rates of these fangs? And if you can compare them, then here's how it stacks up. Microsoft quarter three growth, 23%. Amazon quarter three growth, 15%. Alphabet 41. So Alphabet is growing at nearly double the rate of Microsoft and triple the rate of Amazon. And we'll win the race over the next decade. Case closed. Okay, well look, I'm going to keep Microsoft short. And one of the things that for me is a really a quality that I look for in people, in workforce, in life, in team sports is consistency. Yeah. Right. I know there's guys out there who could drop 50 points a game for playing basketball. And the next night, he drops five. Right. You can bang in a hat trick one day, not score for seven matches in football. Right. I don't want that guy. Right. I want consistency. I want to know that day in, day out, decade after decade in the case of Microsoft, literally clock it up. Look at the biggest way to companies in 10 year segments. It's always there. Yeah. Consistency is boring. Yeah. I'm just going to say that people don't like consistent people. They hate, they hate consistent people because we always win. We just go about our business. And we just, we just thought the Lewis Hamilton, the Lewis Hamilton of stocks. Right.  Right. So. I mean, you've talked about the cloud. You've talked about the percentages, the Euro video growth. I mean, Microsoft, if it's not that alphabet, Microsoft's right up there is number two spot on that front. For sure. The Azure cloud computing, productivity, business process, personal computing. These are all their main kind of key facets of their business. Microsoft's closed the gap between itself and Amazon. They're reporting cloud revenue bigger than that of its rival in all of the recent quarters. Because I was one as a misconception. I just thought AWS was like years ahead. But as you correctly said, a few podcasts ago, it's not the case. As you said, this is an area that's going to boom because it really has to. This is the way that technology is moving and infrastructure is happening. And when you talk about then Microsoft's where they're placed. They have this kind of unique position where kind of the on premises Microsoft environment shifting to now this cloud based approach. That's a structural advantage that they have in terms of the available clients that they have first individuals and corporations and the areas here when you start breaking it down that drive the company's growth. Huge categories of it spend. So it's one called IAS and that's infrastructure as a service. And this is things like cloud cybersecurity, productivity, all these types of things ability to further monetize strong positions they hold in multiple end markets. If you think about Microsoft now they pivoted now subscriptions. And so here you've got enterprise packages, you might have seen you got E3 E5, Microsoft 365 all tailored down to individual unique situations where the individuals or enterprise packages scaling up and so on. And then the financial profile. Durable growth with margin expansion. They've gone from 30% to 42% operating margin over a five year period. So a couple of different things here the thing that that I like overall is Microsoft subscription based software offerings, cloud computing services, durable profile in terms of growth. Additionally investors appreciate I think they're strong free cash flow generation returns to shareholders in the form of dividends share of purchases. And everyone got super excited wet at the whistle for metaverse for meta specifically Zuckerberg forget Zuckerberg. He's a nobody. He's a crook. He needs to go to jail because of what he's doing to young people, Microsoft is going to dominate in the metaverse in the race to get there. And the reason why is they've got just like I think you said Intel with mobile I know one of the systems you mentioned about a bit of a service based human kind of old on so make us better not completely autonomous driving. Like we're talking realism now we're talking. You're going to deploy and deliver rather than have this end game vision that's very hard to achieve. And here's, here's some numbers for you so Microsoft last month outline plans to introduce 250 million users of its teams software to the virtual world I the Meta face of what most people have seen what Zuckerberg kind of showcased Microsoft said in the first half of next year users of teams will be able to start appearing as avatars in online meetings that they're they're going to attend. The fact is that there's 250 million people using teams at least once a month. You know how many paying users are using the same type of systems that Facebook have released that could do the same virtual meeting. Well they've obviously got a few billion users but but obviously it's only a tiny fraction of bones. Well didn't they, didn't they launch a video conferencing. I did. And then they pulled it in there or it just didn't take off or maybe it's still there it just flopped a bit but yeah so I'm going to say I'm going to say 10 million. You're not far off. But you're too optimistic. Wow. Seven million. Right. So when you're talking about audiences who are preset ready to go and you talked about data points driving the car like the Google car doing exponentially more mileage and more data points then coming in to feed the system. They say Apple's Titan is doing similar kind of case here really and so yeah I think I think Microsoft has a much more kind of an easier route in to that emerging space as well. And again, perhaps this old dinosaur becomes more sexy but in a covert way. And that can unleash then the whole new potential for that for that firm. But again, it goes back to the fact that I'm an old school kind of guy. I just like the way the company's performed. And that's why I don't like Tesla because he speaks to the opposite of every senior of my body of what that whole company represents in terms of the way it's run the way that it's traded and invested in. I just can't I just can't get on board with that. No critique at all though about people who do like it because everyone play everyone, you know, takes their own race. I like your angle with Microsoft they have been able to evolve and adapt and innovate and always be there through the decades and decades and decades and all the other things haven't yet been tested on that. As I said this cycle, you know, it's like a 2030 year cycle so Microsoft have been through a few of them already, whereas the others haven't I guess just with with Google it's just like Google do everything. They do everything that all of the other rivals do, but all under kind of one ecosystem, you know they've got the ads like Facebook, let's just say they've got the cloud like AWS they've got hardware you know phones like Apple they've got operating systems like Apple and Microsoft. And then they've got the lead on AI just because they started first. And if anyone's going to win that driverless vehicle race is probably them so. Yeah. Whilst nice pitch. I'm still still. Well, slight little insider secret. When you and I were going. Okay, so which one are you going to pick. I think you both said right show your hand we both went alphabet. So, you know, given given your the senior in the in the partnership, I thought I'll heed to the to you and you take it, but I agree. I think you win. But I think I'm second. Yep. I'll take that I'll take the win. Alright, cool. Well look, we'll wrap it up there. Don't forget then this is the last episode likely then for for this year so huge huge thank you we started this podcast beginning the year thoroughly enjoyed it. It's growing. I'm happy to say at a really great rate not quite alphabet yet but that's for 2022 mission. We asked to help us get over the line on the ratings as well. And we smashed that up to 111 now an apple so thank you again. And yeah I hope you found it useful. We'll have some more other micro series like the career one we did a few months ago will come back in 2022 as well. If anyone's got any other suggestions I'd like to hear. And the police do drop me an email a dot Chung CHE UNG amplify trading dot com and to finish. I've got a little teaser for you for January 2022 in the new year. So, you might have heard of a podcaster called Joe Rogan. I have. He's just the biggest podcast on the planet. We're saying that that we and Joe have in common. So, anyone who follows Joe Rogan might have seen that you can get videos of Joe Rogan's podcast via Spotify. And we are now being approved by Spotify to be a video producer on Spotify's platform. Many people I've seen is us and Joe Rogan. So, I mean, if that's not arriving at the party, I don't know what is so look out for that. We're going to do some you might see some testing happening over the Christmas period, but the likelihood is that hopefully we can start bringing things like my macro briefings things like that might be able to come down the Spotify channel for you as well. I'll get you some, I'll get you some makeup for Christmas. I'm going to need it. All right, that's it then. Pleasure peers as always. Absolutely amazing Christmas everyone and thank you very much. Joy. See you guys.