Iran Says No Progress in US Talks | The Opening Trade 6/4/2026

Watch on YouTube ↗  |  June 04, 2026 at 09:24  |  1:35:27  |  Bloomberg Markets
Speakers
David Zahn — Head of European Fixed Income, Franklin Templeton
Sophie Huynh — Reporter, The Block
Neil Campling — Tech/TMT Analyst
Mark Cudmore — Executive Editor, Bloomberg Live / Macro Strategist

Summary

The video covers market reactions to Broadcom's AI chip forecast disappointment, the SpaceX IPO roadshow, a US-brokered Israel-Lebanon ceasefire, and oil price dynamics amid the closed Strait of Hormuz. Guests discuss fixed income opportunities, sector rotation, and AI valuation, with bullish views on UK gilts, French underweight, European equities, semiconductors, utilities, biotech, China internet, gold, and NVIDIA.

  • Broadcom shares fell 14% after AI revenue guidance missed high expectations, raising questions about AI trade froth.
  • SpaceX IPO set for June 11-12 with a low float and fast lockup expirations; Mark Cudmore expects a large pop.
  • Israel and Lebanon agreed to a ceasefire contingent on Hezbollah, while Iran talks stalled.
  • Oil prices eased on ceasefire hopes but Brent futures still imply $80-$95 for year-end, reflecting supply tightness.
  • David Zahn recommends buying UK 30-year gilts at 6% and underweighting French OATs ahead of elections.
  • Sophie Huynh stays long semiconductors, utilities, biotech, and sees China internet and gold as attractive.
  • Neil Campling argues NVIDIA is cheap on a PEG basis despite the hype, supporting AI structural growth.
  • Mark Cudmore sees a rotation into European equities as US AI exuberance fades.
Trade Ideas
David Zahn Head of European Fixed Income, Franklin Templeton 27:55
Short French OATs vs Bunds
French OATs are too tight relative to German Bunds at 65-70bp spread and should widen to around 100bp due to poor fiscal dynamics and political risk from upcoming elections. He is heavily underweight French government bonds.
French OAT 10Y HIGH
David Zahn Head of European Fixed Income, Franklin Templeton 28:22
Buy UK 30-year gilt at 6%
UK 30-year gilt yields at 6% offer an attractive long-term real yield of around 3% after accounting for inflation, providing a good entry point for long-term investors despite political uncertainty and volatility. The UK is the highest yielder among major developed markets, and the yield compensates for political risk.
UK Gilt 30Y HIGH
Sophie Huynh Reporter, The Block 53:38
Long semiconductors sector
The semiconductor sector benefits from long-term AI demand and structural growth, making it a core long position in her portfolio despite near-term volatility.
SMH MED
Sophie Huynh Reporter, The Block 53:40
Long utilities sector
Utilities are a defensive, long-term holding that should outperform given stable cash flows and demand for power, especially with AI data center buildout.
UTILITIES MED
Sophie Huynh Reporter, The Block 53:45
Long biotech sector
Biotech is a long-term structural winner with innovation-driven growth, and the sector is not fully pricing in the AI tailwind for drug discovery.
XBI MED
Sophie Huynh Reporter, The Block 53:55
Buy China internet stocks
China internet stocks are laggards with good medium-term fundamentals; they offer uncorrelated exposure to US tech and are pivoting toward AI adoption, making them attractive value plays.
China Internet MED
Sophie Huynh Reporter, The Block 56:48
Gold as portfolio diversifier
Gold has been overlooked as a portfolio diversifier, but if the Strait of Hormuz reopening disappoints or economic slowdown materializes, gold will benefit as a hedge against dollar weakness and uncertainty.
GLD MED
Neil Campling Tech/TMT Analyst 65:32
NVIDIA is cheap on PEG
NVIDIA trades at a 25x forward PE with 70% revenue growth, giving a very low PEG ratio. The valuation is cheap relative to history and the AI growth narrative, making it a compelling buy even after the run-up.
NVDA HIGH
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 90:32
Rotate into European equities
A rotation out of overextended US AI stocks into lagging European equities is starting. Europe has been left behind and will benefit as money flows away from the AI bubble, offering a relative value opportunity.
VGK MED
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This Bloomberg Markets video, published June 04, 2026, features David Zahn, Sophie Huynh, Neil Campling, Mark Cudmore discussing French OAT 10Y, UK Gilt 30Y, SMH, UTILITIES, XBI, China Internet, GLD, NVDA, VGK. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: David Zahn, Sophie Huynh, Neil Campling, Mark Cudmore  · Tickers: French OAT 10Y, UK Gilt 30Y, SMH, UTILITIES, XBI, China Internet, GLD, NVDA, VGK