DEBORAH MARCHINI, CNN ANCHOR: We're going to turn to markets, and for that, we are joined by our featured guest for today, Robert Bloom, president of Friends, Ivory & Sime. You know, almost to a one, the earnings reports released after the bell yesterday were dismal. What we know about the second quarter isn't good. What we're hearing, in some cases, about the third quarter isn't any better. Where is the earnings recovery?</s>ROBERT BLOOM, FRIENDS, IVORY & SIME: Well, if we're right, it will be in the third quarter; that at least should be the trough. We originally thought it would a one or two quarter phenomenon. Obviously, it's a lot worse than that. I think what's going on is we're having a traditional recession in the old economy. We're pretty well through that; the inventory correction is pretty much behind us. But superimposed on that, we're having something going on in the New Economy, and by definition, we're not sure how that's going to play out. That is we've had 10 years where investment spending grew at twice the rate of GDP, and in the process went from 15 percent of capex to over 50. And that's fine as long as it's going up, but the day it stops, or to quote Carli Fuirino (ph), the day they the turn the lights out, then it works in reverse. So I think we're going through both of those things simultaneously, and it's very uncertain.</s>MARCHINI: We're going to look at some of the losers and maybe a few winners in this when we come back to you in a few minutes time.</s>BLOOM: Sure.</s>MARCHINI: Thank you.
Robert Bloom of Friends, Ivory & Sime: Investors Cannot Be Sure of New Economy Recovery