UK & Europe Avoid Worst of Stock Rout
Channel: Bloomberg Television
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Read a transcript preview of “UK & Europe Avoid Worst of Stock Rout” from Bloomberg Television, uploaded on 2026-11-06.
Transcript preview
Language: English (creator captions)
[0:15] >> NEWSMAKERS AND MARKET MOVERS. THIS IS "THE PULSE WITH FRANCINE
[0:22] LACQUA." FRANCINE: GOOD MORNING AND
[0:27] WELCOME. I'M FRANCINE LACQUA.
[0:32] EUROPEAN STOCKS HAVE JOINED A GLOBAL SELLOFF.
[0:35] IT COMES AMID GROWING CONCERN IN THE U.S. WILL TIGHTEN REGULATION
[0:38] ON THE AI A DATA CENTER INDUSTRY.
[0:40] LET'S BRING IN PAUL DOBSON. IT HAS BEEN QUITE A RIDE.
[0:48] HOW AND WHY HAS THE STOCKS SELLOFF SNOWBALLED SINCE
[0:49] YESTERDAY? PAUL: GOOD MORNING.
[0:57] IT CERTAINLY HAS FADED -- HAS. WE MOVED FROM THIS KIND OF
[1:02] ROTATION TRADE INTO A FULL ONE ALMOST SELL EVERYTHING MENTALITY
[1:06] , THAT INDISCRIMINATE SELLING WHICH REALLY HIT US ACROSS
[1:11] ALMOST THE WHOLE ASIA REGION TODAY.
[1:14] WHAT STARTED OFF WAS THE MIDTERM ELECTIONS.
[1:17] THE CONCERN THAT DEMOCRATS COMING INTO POWER, GOVERNORS OF
[1:23] STATES, AS WELL AS AND SENATE AND CONGRESS WOULD SCRUTINIZE
[1:25] THE BUILDUP OF AI DATA CENTERS. BY BLOOMBERG CALCULATIONS, MORE
[1:31] AS A RESULT. THAT SENT PEOPLE WORRIED ABOUT
[1:36] THE AI ALREADY FALLING QUITE HEAVILY.
[1:40] I THINK WHAT HAPPENED IS WHILE WE WERE LOOKING AT THE ROTATION
[1:43] TRADE, THE PROBLEM IS A LOT OF THE FAVORITE LONGS IN THE
[1:50] RALLYING. THAT CAUSED THE DOUBLE SQUEEZE
[1:55] POSITION THAT SEEM TO HAVE HURT A LOT OF THE STREET AND THE LAST
[2:00] 24 HOURS, WE'VE HAD REPORTS OF A NUMBER OF HEDGE FUNDS WINDING
[2:03] DOWN POSITIONS, GIVING THAT CASH TO INVESTORS.
[2:05] IT SEEMS TO HAVE TRANSFORMED ALMOST FROM A FUNDAMENTAL
[2:10] SELLOFF BASED ON THE NEWS AROUND THE DATA CENTERS TO MORE OF A
[2:12] POSITIONING FLUSH OUT. THERE HAS BEEN A HARM THROUGH
[2:17] CROWDED POSITIONS IN SOME PARTS OF THE MARKETS.
[2:22] FRANCI