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.

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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

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