Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu - Anurag Rana, Senior Technology Analyst for Bloomberg Intelligence, joins to discuss the latest tech headlines. Accenture Plc said it’s expecting to reel in less revenue in the coming months, as artificial intelligence upends the consulting services industry and clients paused business due to the conflict in the Middle East. The company reported a 2% drop in new bookings for the quarter ended May 31, according to a statement Thursday. Accenture shares tumbled 20% in early trading in New York, marking their worst one-day drop on record. - Wayne Sanders, Senior Defense Analyst for Bloomberg Intelligence, examines the next steps in US-Iran relations as an interim peace deal is starting to take effect, with focus shifting to the resumption of shipping through the Strait of Hormuz and a complex 60-day negotiating period over Tehran’s nuclear program. - Ira Jersey, Chief US Interest Rate Strategist for Bloomberg Intelligence, discusses what Wednesday’s FOMC meeting and remarks from Chair Kevin Warsh signal about the Fed’s policy path ahead. Traders piled into betting on interest-rate hikes as soon as next month after Warsh used his debut press conference as Federal Reserve chairman to make clear the central bank won’t tolerate high inflation. - Ann Miletti, Head of Equity Investments &amp; Chief Diversity Officer at Allspring Global Investments, assess the importance of portfolio diversification and earnings fundamentals as the next phase of AI implementation spurs record capex spending. See omnystudio.com/listener for privacy information.

Accenture Forecast Sends Stock Tumbling a Record 20%

Bloomberg Intelligence

# Full Transcript

**Podcast:** Bloomberg Intelligence

## Participants

- **Paul Sweeney** (Bloomberg)
- **Scarlet Fu** (Bloomberg)
- **Anurag Rana** (Bloomberg Intelligence)
- **Wayne Sanders** (Bloomberg Intelligence)
- **Ira Jersey** (Bloomberg Intelligence)
- **Ann Miletti** (Allspring Global Investments)

## Transcript

The Big Take podcast from Bloomberg News keeps you on top of the biggest stories of the day. My fellow Americans, this is Liberation Day. Stories that move markets. Chair Powell opened the door to this first interest rate cut. Impact politics. Change businesses. This is a really stunning development for the AI world and how you think about your bottom line. Listen to The Big Take from Bloomberg News every weekday afternoon on the iHeartRadio app,

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I'm going to say a year, maybe two years ago, some tech analysts came in here and said, you know, all these companies across industries are spending a lot on AI. It's got to come from someplace, that money. And he highlighted one area that it's going to be hitting, which is some of these consultants out there. Let's pull back on some of the money we're spending on consulting because we have to invest in AI. So it's not so much that they don't need their services. It's that we're investing in AI so we can hold off on paying these guys. Absolutely. And that analyst was Anurag Rana, senior tech analyst for Bloomberg Intelligence.

Anurag, we saw Accenture today give some guidance that really disappointed the street. The stock is down 15% year to date. It's down 50. 50% on a year to date basis down 15% today. What did you hear from Accenture? I mean, to be honest, look at the carnage. And what they said was, you know, maybe 100, 150 basis points, less growth for them. I mean, this is really shocking because they talked about Iran. They talked about projects being pushed out into next year and so forth.

And this goes into the, you know, thesis that you just repeated. Because at the end of the day, if you're going to spend money, if an enterprise or a corporation is going to spend money on AI, where is that money going to come from? You don't have budgets that are going to go up 50, 100%. You're going to take it out from the software bucket. You're going to take it out from consulting bucket. You may not upgrade your PC. It has to come from somewhere. And that's what we are seeing right now. It has to come from somewhere. And if it's coming from software, it's coming from consulting.

Does that mean that the companies realize that they can get by just fine without these consultants and they'll never need to go back to them? Or do they do the consult...

Accenture Forecast Sends Stock Tumbling a Record 20%

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
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Accenture Forecast Sends Stock Tumbling a Record 20%

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.