FidelityConnects: Diversify with U.S. small and mid caps

[00:03:49] Pamela Ritchie: Hello, and welcome to Fidelity Connects. I'm Pamela Ritchie. Interest rates are falling, tariffs are evolving, and the AI market continues to hold steam. Today we're breaking down how those shifts are playing out in portfolios, supply chains, across the consumer landscape, and particularly in smaller names. How does the breadth of Fidelity's research help connect the dots across all of these things that we're speaking about? Happy to say joining us here today to discuss is Director of Research and portfolio manager, Steve MacMillan, and equity research associates, Connor McGrath and Christian Ghezzi. This conversation features live French audio interpretation so our conversation can be heard in either official language. Welcome to each of you. Thanks for being here today. Do send your questions in, we'll take those over the course of the next half hour. I'll ask you, Steve, to begin a little bit with the landscape for small and mid-caps. As we say, interest rates are down, this should be the opening of the doors. It kind of has been. Tell us where we are.

[00:04:49] Steve MacMillan: Thanks. I'm excited to be here to talk about small-caps. I'm more excited to listen to these two talk about the small-caps, I think it will be very insightful. Small-caps have been wandering through the desert for about seven years now and are just starting to see an oasis. We're finally starting to see some outperformance. They're benefiting from the expectation of lower interest rates currently and in the future which generally benefits smaller companies. They tend to have a bit more debt on their balance sheet, be less equity financed, more debt financed. Some interesting things going on, though, in the small-cap landscape outside of just the broad macro. We have some winners, we have some losers. If you look at the broad indices you would look at a market off the bottom in early April that has been up very significantly. But within that it's been very uneven. I think that Christian can talk about some of those winners. Unfortunately, Connor can talk about some of those losers.

[00:05:53] Pamela Ritchie: Consumer, more tech, AI. Okay, we're going there.

[00:05:56] Steve MacMillan: It's been a very uneven trade. One of the things that I find fascinating right now is while the broader indices are making new highs, and it's by all accounts a bull market, you have these quiet bear markets that are going on underneath in some of these consumer stocks. It's very clear that the lower end consumer is in a recession already. At the same time, if I think back through my 25-year career at the number of different bubbles that I've seen come and go there's areas that look very bubble-ish right now that kind of filter down, starting at the high level AI trade that come down to some of the areas like quantum computing, come down to areas like power demand for AI, part suppliers for data centres. There's a lot going on under the surface.

[00:06:54] Pamela Ritchie: There's just money being thrown in those areas and it looks a little frothy, a little whatever term you want to use.

[00:07:02] Steve MacMillan: Right now I think about Nvidia and the hyperscalers as being the giants. Then I look at the tech hardware companies that Christian might be looking at as looking for the crumbs of giants which still can be quite big. there's a lot of excitement in the market around some of those stocks that are picking up those crumbs.

[00:07:23] Pamela Ritchie: Fantastic. That's so interesting. Let's actually begin with the health of the consumer. Connor, I'll ask you a little bit about this. The tariff story seems to be the theme. I mean, there are other themes to pick up on but it is how companies have adjusted, and they have adjusted. Why don't you take us there initially, just how companies have marched through this period of time.

[00:07:42] Connor McGrath: I think it's emblematic of what we're seeing in the consumer around bifurcation around low income versus high income consumers. We're also seeing that in terms of how companies respond to tariffs, where there are winners and there are clear losers, companies that have responded better, companies that haven't responded as well. As you mentioned, there's been a lot of volatility. It seems like the tariff policies change every month or every few weeks. We, obviously, had a lot of news thrown at us in April with Liberation Day but then since then, though, you've had multiple tariff policy changes and whatnot. Collectively, I think you've seen a broad response by companies to shift their supply chains. Maybe it's within Southeast Asia, maybe away from China into neighbouring countries like Vietnam or Indonesia or whatnot. Other companies are maybe trying to onshore certain parts or certain components or things like that back to the U.S. to help mitigate some of those impacts.

[00:08:34] Across my coverage, Steve and I, we meet with a lot of companies and we see a lot of bifurcation in this in terms of companies that are handling it quite well. There's an appliance company that I cover called Shark Ninja, they've done some interesting things just around shifting their supply chain pretty substantially away from China into other countries, tweaking the components that they have on their products and whatnot to help mitigate some of that tariff impact so that they don't have to pass on as much of the impact to the end consumer.

[00:09:03] Pamela Ritchie: It's really interesting and innovative, as you say. Christian, take us to the AI discussion of smaller companies. We spent a lot of time on seven big companies, sometimes nine, some of the few more biggies, but this is really a discussion of, I guess, the crumbs as Steve was mentioning. Tell us most recently what you're noticing as themes across this? I mean, it's all systems go.

[00:09:26] Christian Ghezzi: For sure. I think bifurcation is the name of this episode. You're seeing clear eye winners take off. This would be like the company Steve just mentioned, the picks and shovel plays, the ones where you build a data centre and they generate revenue from that today. You're also seeing the market bucket pretty aggressively AI losers, or at least perceived losers, and these would be businesses that either aren't directly exposed to this and so you're kind of having this hardware build suck the air out of the room for demand for what they sell, or even maybe less obviously but more kind of aggressively from the market is just this view that if AI is to commoditize a lot of knowledge work in what we do and kind of developing applications then it should erode the competitive advantages of a lot of software companies I cover.

[00:10:15] You're seeing a lot of those companies be bucketed as losers. I think part of the research process here is that we can be closer to a lot of these smaller cap companies just because of our breadth of research and you know we can understand what actually made these businesses good. In a lot of cases it's actually not the fact that they had developers that can code a lot. These aren't just code factories. Oftentimes the reason they were able to succeed is because they're close to the customer and they know what the customer wants and because of that they have a very directed R&D motion that gives them the continued right to win customers.

[00:10:49] Pamela Ritchie: You mentioned perceived losers which is interesting because do you feel the market can shift around that, that's still at play to an extent?

[00:10:58] Christian Ghezzi: Absolutely, and that's an ongoing debate. Things move fast and they move even faster in tech. Today with AI you're arguably seeing the fastest pace of adoption we've ever seen for disruptive tech like that. You're actually seeing consumers adopt AI faster than the internet. That can change a lot and there are examples of that changing. An example, a stock that we looked at here, a database company, MongoDB, they were a perceived AI loser. There was a competitor that appeared to be kind of taking share within new AI use cases and it was proven that that wasn't actually the case. Numbers were fine and the narrative went from an AI loser to an AI winner overnight. That can happen quickly. Again, that's why it's important to kind of have eyes on these small companies because there's a big opportunity to generate market outperformance if you can identify a perceived loser going to winner, or vice versa.

[00:11:55] Pamela Ritchie: That's fascinating. Take it back to the consumer just for a second, Connor. A big piece of the story seems to just be inventory as well. Some of it seems to be a COVID hangover and we're still seeing rails grappling with that. How much of that is the inventory story in the companies that you cover? Some of them did a big pull forward.

[00:12:16] Connor McGrath: There was a big pull forward. You saw that in the earlier parts of the year. What you're kind of seeing right now is a lot of the inventory that's been sold, let's say in Q2 or maybe even Q3 is still not the tariffed inventory, kind of quote unquote. The end consumer maybe hasn't fully seen a lot the tariffed inventory start to hit the shelves, let's say, in a retailer like a Walmart or something like that where you maybe have a higher price point attached to it because the companies are still working through a lot that excess inventory that's been pulled forward. Then as you sort of shift, let's say, into the holiday season or even into early next year that's sort of when you start to get into some of that inventory that now has a 15% tariff on it or some form of tariff applied to it.

[00:12:57] Pamela Ritchie: What are the companies going to do with that?

[00:12:58] Connor McGrath: It depends on the company and the industry. I mean, a lot of companies, I think, have obviously tried to not pass on as much to the consumer as possible. There may be some public or political blowback from that. Other ones maybe have a bit more of an elastic product and so they do pass on some price. There's maybe a bit of a demand destruction element to it. I think a lot of companies are either trying to reconfigure their supply chains, trying to take internal actions to mitigate any of those impacts. Other companies are trying to leverage their good relationships with suppliers to say maybe we can share some of the burden of this tariff where it's not just us it's also you doing it. It really does depend on the company and the industry but the key takeaway, though, is that we haven't really seen a lot of those tariff impacts hit the end consumer quite yet.

[00:13:45] Pamela Ritchie: There's more to come on that front. Steve, I might ask you, just the breadth of research, we talk about it a lot, some of it is in the form of going to do visits, trips, going to see these companies that are not just five that you need to tick off but I mean, hundreds of companies, right? I mean how many companies are you meeting? I asked Connor, I asked Christian, they're like 90, 40, I mean, how many company are you meeting?

[00:14:10] Steve MacMillan: I've met thousands of companies and I would say I meet hundreds of companies a year but the team itself of 160 analysts globally, we're casting a very wide net. The great thing is we have some of them dedicated specifically to covering U.S. small-cap stocks, folks like Connor and Christian here. Part of what they do is really going out in the world and finding that information and bringing it back to us. Connor just mentioned Shark Ninja. He and I were down at their headquarters about two weeks ago meeting the CEO.

[00:14:44] Pamela Ritchie: Where's this?

[00:14:46] Steve MacMillan: Outside of Boston. Really interesting facility. They've got, I think, 64 different design labs. They're trying to make fans better, they're trying to make heaters better, they're trying to make blenders better. All these categories that you think are super sleepy and super boring, when you look at the revenue in this company and it's growing double digits and it's taking market share from those less innovative smaller companies that are not putting in the R&D and the effort. That was really fascinating to see firsthand and listen to the enthusiasm of the chief marketing officer and the chief development officer and the CEO. Then we get trips that we do all across the U.S. and across the world where we'll send a team of industrial analysts to the Midwest and they will spend five days on buses going from Milwaukee to Cleveland.

[00:15:33] Pamela Ritchie: The bus tour, yeah.

[00:15:35] Steve MacMillan: Yeah, all these exciting places that they come back from and let us know what's going on. Then you realize it's better to be a tech analyst because you get to go to California.

[00:15:44] Pamela Ritchie: That's where you just were, Christian, right?

[00:15:46] Christian Ghezzi: Yeah, it is.

[00:15:47] Pamela Ritchie: Were you on a bus tour?

[00:15:48] Christian Ghezzi: Yeah. I can talk about that.

[00:15:52] Pamela Ritchie: Tell us a little bit. I just find it was interesting, you know, you're travelling around to see these companies.

[00:15:56] Christian Ghezzi: I think that's a big part of what we do, right, is kind of form a relationship with our companies and having a deep knowledge of what they do. When you get markets like this where you do have kind of exacerbated moves on one side or another of a debate you can quickly determine whether you agree with that view or not and act on it. That's the goal.

[00:16:13] Pamela Ritchie: And pick up the phone to the right person, I guess, yeah.

[00:16:15] Christian Ghezzi: Exactly, or get the company on the line and get comfortable with your thesis or kind of where they sit. As part of kind of our tech coverage every June we go to Silicon Valley. We meet with, I think this year was probably over 20 companies across three and a half full days. We get to see their headquarters, we get to see their do, a lot of tech is pretty esoteric and so it's nice to actually see the software, or in many cases the hardware be built. We do that every year. I'm looking forward to it next year. This year we learned a lot. Steve was talking about the picks and shovels firsthand in his benchmark, we got to meet them and things sounded just as good as the stock price would suggest. It's, obviously, an important part of the process.

[00:17:01] Pamela Ritchie: Connor, let's go through some of the consumer side of things. There have been some winners and losers, they're different companies, though. They're often much more U.S. focused which is why they're often covered under NAFTA and it's okay for now. Maybe just talk about the evolution of some of these companies and where their markets are.

[00:17:22] Connor McGrath: It'll depend on the industry. I cover a lot of companies that, obviously, do have a very U.S. centric business model. Their origins are in the U.S. but now they're starting to maybe branch out into other companies. I cover restaurant chains that are still fast growing in the U.S. but then they also have small and very fast growing international businesses. Maybe the concept resonates really well in Europe or in the Middle East or in Australia or whatnot. I maybe have other companies that are really just tried and true U.S. companies, we don't do anything else, the products we serve or the customers we serve are really just U.S. focused. It does depend on the industry.

[00:18:03] Pamela Ritchie: How are the restaurants doing? Is there a broad statement or again, is it a case of winners and losers? What's making a winner a winner right now?

[00:18:12] Connor McGrath: It's been tough. Steve mentioned earlier kind of these bear markets kind of under the surface in certain sub-sectors. I'd said restaurants falls into that. It's been a bit of tough sledding this year for restaurants. I think what you've seen is that bifurcation between the low and high income consumer really shows up in restaurants. You see a lot of chains where maybe you've taken a bit too much price the last few years, maybe you haven't really kept up on innovation, are really struggling. You're not driving a lot of foot traffic into your restaurants, people just aren't going as frequently, they're maybe pulling back. Those companies you're seeing, you know, McDonald's is talking about reintroducing value items under the menu, or Chipotle or other ones like that. A lot of that I think is being done to spur a bit more engagement and a bit more frequency with the consumer.

[00:18:57] Whereas there's other chains where if you are positioned as a value option or the lowest cost operator you are seeing a bit of a benefit. You are seeing that tradedown occur. Again, being the analyst and having resources to be able to focus on a lot of those companies allows us to not just maybe blanket the whole sector as let's just stay away from this. Maybe there are certain interesting opportunities on both sides within that group.

[00:19:21] Pamela Ritchie: It's really interesting to hear sort of the restaurant, the embodiment of how the consumer is doing through restaurants. Picking up on the crumbs that we were talking about earlier, let's go through the data centre buildout to an extent. Christian, you'll chime in here as well. They're being built, this is happening, how much of the buildout is going on, is construction? What's it pulling on from some of the various names that you're covering? Maybe Steve we'll put this to both of you.

[00:19:51] Christian Ghezzi: I think broadly when you think about a data centre probably about one-third of the spend is what we'll call the shell. This is the construction, the cooling, the infrastructure. Then two-thirds is the compute, the Nvidia's of the world.  That's the first principles. As for kind of companies that we have under coverage there's actually a lot that benefit from this. There's a lot of crumbs, so to speak. You have the large-caps like Nvidia but there's a trillion dollars, over a trillion dollars of committed capital to this space and it's not all going to Nvidia. I guess some examples of companies that I cover, there's a company called Element Solutions. They sell kind of chemical processes to make semiconductors. This is an important step in a lot of the fabs like for TSMC. This was a company that kind of flew under the radar just because it was historically a boring, call it no growth exposed to [indecipherable] markets, semiconductors, what not. Rising tide lifts all boats and this was a situation where AI actually ended up being really meaningful to their end markets.

[00:21:02] This kind of goes back to just having eyes on small companies and understanding where things are changing when the market might not. The market tends to overshoot or undershoot on themes in the short term. Just kind of first principles, having eyes on everything, understanding how things are changing. Being able to act when you see those things changing is important.

[00:21:20] Pamela Ritchie: Steve, some of this goes into, obviously, kind of the energy side of things, which may not be exactly what you're looking at, but then the components as Christian was just mentioning will pull on that. Give us a bit more of a sense of what's being put together to plug these things in.

[00:21:36] Steve MacMillan: Sure. I think if you look at companies like Lumentum, they make the lasers that go in the transceivers that go in the semiconductors and kind of bring all these--

[00:21:47] Pamela Ritchie: Sounds like a campfire song here.

[00:21:52] Steve MacMillan: --exactly, that bring it all together. You can look at the larger cap industrial companies that are involved in, basically, making the electricals of this huge box work because of the amount of electricity that's coming through these pipes. Areas that I find that are really fascinating right now, you have companies that are looking at future ways to make electricity, SMRs, so small modular reactors--

[00:22:17] Pamela Ritchie: This is the whole nuclear side of it, yeah.

[00:22:19] Steve MacMillan: --fuel cells. Some of the best performing stocks in the Russell 2000, which is the small-cap index, have actually been some of these energy companies. They've reached valuations that are many billions of dollars. Some of them are pre-revenue, all of them were pre-profits. One of the things that I'm thinking about is whether or not the market is putting too high a probability on success. You need the data centre spend to continue for a long period of time before it impacts demand and electricity and then you need to believe that their technologies, whether it's SMRs, whether it's fuel cells, that they work. You're already starting with very high valuation. Whether it's that, whether its quantum computing, I think there's different areas within the small-cap universe where maybe we're getting a little bit ahead of ourselves. For me, I'm focusing on an area where I think that despite we're at all-time market highs I think there is still some better values in the market.

[00:23:25] Pamela Ritchie: That's really interesting because it speaks to your style a little bit. I mean, a lot of anything to do with AI is going to sort of fit in the bucket of growth, isn't it, and, you know, unprofitable tech, that's where it fits. Take us to your sort of style and approach a bit.

[00:23:37] Steve MacMillan:  I think growth investing is going out to a party on Saturday night and everyone's there with you and you're all having a great time because you're at the same party. You all believe the same thing. You're drinking the same Kool-Aid. Everything's great. It's fun, it's fun to be a growth investor. Value investors, being at home with your parents on a Saturday night. It's like being lonely, no one's called you in a long time.

[00:24:02] Pamela Ritchie: But the money is stable.

[00:24:06] Steve MacMillan:  I look at these areas of the market that no one's joining the party from. I have a lot in my portfolio in financials right now, areas like insurance. No one's gone to that party in a long time.

[00:24:21] Pamela Ritchie: But those premiums.

[00:24:22] Steve MacMillan: Yeah, absolutely. They're economically typically acyclical. Price-to-book values are very attractive. Connor, actually, used to cover a lot of these insurance companies and knows them quite well. I'm, actually, deeply underweight technology right now. I think that we've gotten a little bit too far ahead of ourselves on the valuations. If I think back 25 years ago when I was starting out, similar to Christian here, the internet was going to change the world, and it did. It just took 10 or 20 years longer than people expected.

[00:25:02] I think these technologies are real, they are going to change but I think my concern is that some investors may be taking on more risk than they actually are aware of. I'm focusing on some of these more traditional areas where there's high cash flow, high dividends, recurring businesses. I think the risk is that we could have a rotation in the market similar to what we experienced earlier in the year where some of these higher growth, more exciting areas in the marketplace maybe pull back. I think some of these more defensive cash flow businesses actually could have a strong rally.

[00:25:41] Pamela Ritchie: That's really interesting as a bit of an outlook. Let's go to the consumer and the discussion again of, actually, where the holiday season takes us, and sort of the idea it fits into that inventory discussion of when kind of the rubber meets the road on that. How does it look? Seems like back to school, for instance, I mean, it's not exactly what you're doing, I don't know if people buy air fryers for back to school but it seems like that went quite well, for instance. What about the next big marker?

[00:26:10] Connor McGrath: We've seen various kind of companies and agencies and industry groups kind of put out outlooks maybe around a bit more of a cautious holiday season. You think about certain factors impacting the consumer. Right now you think about student loan repayments starting back up again. Interest rates, we've gotten a cut from the Fed but interest rates haven't really provided a ton of relief. At the same time we've been hearing from companies that retailers are being a bit cautious around their holiday orders that they're putting in in terms of stocking it. Usually that prime holiday shopping period is U.S. Thanksgiving all the way up to Christmas. It seems like, based on when we talk to companies that sell into retailers and the retailers themselves, that that window is getting a bit more compressed and that the holiday shopping is happening a bit later. The usual retailers are stocking a bit more cautiously. It's going to be interesting to see how it plays out. Obviously, we're going to have a much better idea of how it all kind of develops over the next couple of months but it does seem like there was a bit more caution being thrown to the wind a little bit around holiday season, despite the fact that back to school was generally pretty robust.

[00:27:17] Pamela Ritchie: There is a bit of a wait and see on, basically, the tariff situation. You just have to see how those prices first of all go in and second of all what the uptake is.

[00:27:26] Connor McGrath: Yeah, and again, I mean, it's different in different industries but at least the companies that we talk to pretty regularly you haven't really seen that whole flow-through happen quite yet to the end consumer. The burden is still being shared kind of across suppliers, company that sells to a retailer then the retailers themselves but it hasn't quite made it to the very end of that chain yet to the end consumer.

[00:27:47] Pamela Ritchie: So we have to check back in with you sort of in January to see where some of those numbers have gone. Let's go a bit to the software companies themselves, which you mentioned. Things get overdone, there's a debate that you mentioned earlier is still there. What are the software companies doing with the fact that AI is upon us? They are adopting it, they are helping use it in their own sales, how is it being deployed?

[00:28:12] Christian Ghezzi: Good question. This is where it's super valuable to actually go and meet them. You get one debate in the market and then you see them and it turns out AI has actually changed the way they work. Developers are more efficient than they've ever been because you can use AI to help you code. It doesn't replace a developer necessarily but it really increases time to value. That's super valuable for the R&D flywheel that I was talking about earlier where they're close to customers, they put out new products, they earn the right to be a bigger part of the budget. That flywheel actually gets quicker because of AI. You also have agents to support sales reps, make sales reps more efficient. Software companies move fast. They're innovative, they're on the leading edge and so they were among the first to adopt AI. When I went to some conferences back at the end of 2024 my software companies were already telling me that they were hand over fist using AI. That narrative kind of didn't start to evolve until later in 2025. They are fast moving.

[00:29:09] Pamela Ritchie: They're not going to get leapfrogged here.

[00:29:11] Christian Ghezzi: If anything, time to value, you can argue, is accelerating for them across the industry just because coding is getting more efficient.

[00:29:18] Pamela Ritchie: That's really interesting. In terms of the benefits to companies, Steve, I mean, this has been a question for, I don't know, however long, whenever ChatGTP broke through, that November back in 2022, I think it was, when ultimately is AI accretive to the companies that you're putting in funds that you want ... they're all moving faster, the productivity is there, it's on the SG&A.

[00:29:42] Steve MacMillan: So far I think most companies are in trial mode.

[00:29:45] Pamela Ritchie: They're still there.

[00:29:46] Steve MacMillan: They're looking to see where they can use it. I think call centres has been an easy and early win. Number of heads in a call centre has gone down. One of the very simple examples is, typically, if you call in and you have an issue, I don't know, with your insurance, at the end the call centre agent types up some notes about what you talked about so if you call back again they have notes. Now an agent, an AI agent is going to type up those notes and have that summary and allows them to go on to the next call. It's a very simple example. I think in some of these lower end jobs you're starting to see some of those benefits, but more broadly, I don't think you're typically seeing it in any bank saying we're taking our costs down by 5% because of this technology. It's one of the areas that is still overhanging broader AI of what are the use cases, what's the ROI. The companies that I can think of have made the most use of it would actually be some of the hyperscalers. Meta being a great example of monetizing traffic, knowing you like cat videos but it's not just cats that you like, you like tabby cats and they serve you all the tabby cat videos they can and then they figure out that you like Meow Mix and next thing you know you're buying some Meow Mix and the algorithm's working.

[00:31:11] Pamela Ritchie: Is the cat involved in this decision at all?

[00:31:14] Steve MacMillan: Probably. They're doing a good job of making sure that the content's more relevant, the advertising is more relevant, and they've seen a growth acceleration in their revenue for that. From a cost perspective it's been more challenging and I think for AI...

[00:31:30] Pamela Ritchie: It's almost additive in a sense, rather than cutting costs at this point.

[00:31:33] Steve MacMillan: Yeah. I think a lot of CEOs feel the need to be able to go to their board, say we are working on AI. We haven't necessarily found those killer apps just yet.

[00:31:43] Pamela Ritchie: Fantastic. Connor and Christian, I'll ask you to do sort of a final thought on the industry and the part of the market that you're following just to leave with investors. Connor, we'll begin with you. What's a final thought?

[00:31:55] Connor McGrath: Just for investors, I think just emphasizing, I guess, the resources that we have dedicated to consumer, and same with Christian as well, dedicated to the software and technology, where these are maybe lesser known parts of the market or parts of the market that maybe don't grab the headlines the same way that AI or big hyperscalers or Mag Seven would command, but there are real companies in these markets. They're all going through their own different cycles right now and it's our job to sort of meet all these companies, find those interesting opportunities. That's what we do every day. We get to show up and do that.

[00:32:27] Pamela Ritchie: Sounds like a fun job.

[00:32:28] Connor McGrath: It is, it's quite exciting.

[00:32:30] Pamela Ritchie: Christian, what would you leave with investors?

[00:32:32] Christian Ghezzi: I would just say things in tech are changing really fast. The market is aggressively grouping businesses into the right or left tail of outcomes here. There are more rocks to turn than maybe there ever have been. Rest assured that we're doing it and it's a really fun time to be looking at software.

[00:32:50] Pamela Ritchie: Fantastic. Steve, Christian and Connor, thank you for joining us here on Fidelity Connects. Look forward to seeing you again. Have a good week. Coming up tomorrow, we will be discussing AI with analyst and portfolio manager, Ben Holton, where innovation is opening new doors and sort of where the AI story is right now from an investment perspective and an outlook for U.S. software.

[00:33:10] Next Monday, Investment Director, live from London, Tom Stevenson joins us for a discussion on the global markets. He discusses the latest headlines in moving markets in the UK and Europe but we'll really dive into opportunities in China that perhaps are having some renewed interest there. That's with Tom Stevenson.

[00:33:25] On Tuesday Fidelity Director of Quantitative Market Strategy, Denise Chisholm, she joins us to discuss her latest sector thesis and her amazing data analysis. Both of those Monday and Tuesday webcasts will be with live French audio interpretation so do make sure you use that if you'd like. Thanks for watching. Have a great day. I'm Pamela Ritchie.