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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the latest reaction to the earnings

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Speaker 3: report investors around the world we're bracing for. It has

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Speaker 3: been volatile, but shares of nvidiam have turned higher. They

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Speaker 3: are now three quarters of one percent in early trading.

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Speaker 3: The chip maker at the center of the AI spending boom,

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Speaker 3: delivered good, but not great quarterly numbers. It's drawing a

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Speaker 3: muted response from investors who have been accustomed to blow

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Speaker 3: out results. We get more from Bloomberg's Tom mackenzie.

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Speaker 4: It's about expectations, and it's all about whether or not

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Speaker 4: this is a company that, by the way, in the

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Speaker 4: last five years has only missed quarterly result was once

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Speaker 4: and this time was not a miss again. It was

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Speaker 4: a modest beat. The question mark is to what extent

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Speaker 4: the huge revenue growth that we've seen from Nvidia in

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Speaker 4: the last two years is starting potentially to peak. How

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Speaker 4: much further can they go in supplying these chips and

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Speaker 4: continuing to generate the frankly eyewatering growth, almost unprecedented growth

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Speaker 4: that we've seen from one individual company in the months

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Speaker 4: and quarters ahead, and that question has not yet been resolved,

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Speaker 4: and it hasn't been put to bed by the results

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Speaker 4: that we've.

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Speaker 3: Had out Bloomberg. Sam mackenzie says in video is putting

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Speaker 3: its quarterly sales at about forty three billion dollars. That

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Speaker 3: is slightly above the average analysts essiment Well Nathan.

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Speaker 2: Many analysts pointed to a disappointment within Vidia's gross profit margins.

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Speaker 2: Here's Angelo Zino, vice president of equity research at CFRA.

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Speaker 5: The gross margin number was probably the one black eye

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Speaker 5: as far as where we kind of were looking at

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Speaker 5: the guidance side of things. It was definitely a disappointment.

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Speaker 5: I think when you kind of especially look at the

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Speaker 5: trajectory of gross margins over the last couple of quarters,

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Speaker 5: it kind of hit a peak run rate of about

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Speaker 5: seventy eight percent in the first half of calendar twenty

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Speaker 5: twenty four. So the margins continue to compress here going

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Speaker 5: into the April quarter. The good news is we do

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Speaker 5: expect that to essentially be the trough of the cycle

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Speaker 5: here in the April.

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Speaker 4: Quarter, cfirays.

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Speaker 2: Angelo Zeno also says Chinese start up Deep Sea Cas

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Speaker 2: spark fears that chatbots can be developed more cheaply, potentially

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Speaker 2: reducing the need for Nvidia's powerful chips for AI.

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Speaker 3: In the meantime, Karen, we have some sad news to

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Speaker 3: report this morning, the death of a Hollywood legend. Oscar

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Speaker 3: winning actor Gene Hackman and his wife were found dead

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Speaker 3: in their New Mexico home. Their dog died as well.

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Speaker 3: Authorities did not release any details of the circumstances of

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Speaker 3: their deaths, but they do say foul play is not suspected.

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Speaker 3: Gene Hackman appeared in more than eighty films, including The

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Speaker 3: French Connection, Unforgiven, and Hoosiers. He was ninety five years old.

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Speaker 2: Well, Nathan, let's turn out to some breaking developments on

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Speaker 2: the Trump administration's push to freeze foreign aid payments. We

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Speaker 2: get the latest with Bloomberg's John Tucker. John Good Morning, ed.

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Speaker 6: Morning, Karen. Chief Justice John Roberts has handed President Trump

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Speaker 6: of victory, at least for now. He temporarily blocked up

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Speaker 6: to two billion dollars in foreign aid. Roberts paused a

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Speaker 6: lower court's order that had lifted the administration's freeze on

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Speaker 6: foreign assistance. Humanitarian groups say this freeze is having a

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Speaker 6: devastating impact, offending hundreds of projects, forcing USA partner groups

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Speaker 6: to lay off or furlough thousands of US workers, and

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Speaker 6: putting people who depend on the assistance at risk of

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Speaker 6: disease and even death. The group say the money includes

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Speaker 6: payments for work already completed. The humanitarian groups challenging the

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Speaker 6: freeze now have until Friday afternoon to respond. I'm John Tucker,

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Speaker 6: Bloomberg Radio.

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Speaker 3: Okay, John, thank you. President Trump is warning federal workers

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Speaker 3: who haven't responded to Elon Musk's email asking what they

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Speaker 3: did last week, they could be out of a job.

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Speaker 7: And I think it's a good idea because you know

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Speaker 7: those people, as I said before, they run the bubble.

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Speaker 7: You get a lot of people that have not responded.

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Speaker 7: So we're trying to figure out do they exist, who

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Speaker 7: are they? That is possible that a lot of those

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Speaker 7: people will be actually fired.

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Speaker 3: In cabinet meeting remarks heard on Bloomberg Radio, President Trump

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Speaker 3: spoke after the White House told federal agencies to submit

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Speaker 3: large scale workforce reduction plans by March thirteenth. The President

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Speaker 3: says the Environmental Protection Agencies looking into cutting up to

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Speaker 3: sixty five percent of its staff. One agency. The National

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Speaker 3: Oceanic and Atmospheric Administration is putting together a list of

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Speaker 3: workers who have yet to respond to Musk's email.

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Speaker 2: Now, Nathan, the latest on Trump's trade war. The President

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Speaker 2: says tariffs on products from the European Union will be

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Speaker 2: twenty five percent. In his first cabinet meeting, he used

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Speaker 2: strong language to attack the EU.

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Speaker 7: It was formed in order to screw the United States.

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Speaker 7: I mean, look, let's be honest. The European Union was

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Speaker 7: formed in order to screw the United States. That's the

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Speaker 7: purpose of it, and they've done a good job of it.

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Speaker 7: But now I'm President.

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Speaker 2: Well, Trump's proposal for a twenty five percent tariff on

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Speaker 2: the EU is new. Officials later clarify that all options

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Speaker 2: are being considered on whether those would affect all exports

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Speaker 2: from the block or only certain products or sectors.

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Speaker 3: We have breaking trade news crossing the Bloomberg terminal Karen.

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Speaker 3: Officials in India are exploring ways to lower tariffs on

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Speaker 3: a wide range of imports, including cars and chemicals, in

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Speaker 3: a bid to evade President Trump's threatened reciprocal levies, sources

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Speaker 3: tell Bloomberg News. Officials in New Delhi are discussing reducing

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Speaker 3: duties on automobiles, agricultural products, chemicals and critical pharmaceuticals.

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Speaker 2: Well Nathan. Trump's announcement on EU tariff's come as UK

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Speaker 2: Prime Minister Keir Starmer heads to the White House to

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Speaker 2: meet with the President. We got to London with Bloomberg's

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Speaker 2: James Wilcock.

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Speaker 8: Good morning James, Good morning Karen and Nathan. Since the

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Speaker 8: Second World War, the UK has framed itself as having

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Speaker 8: a so called special relationship with America. So with Europe's

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Speaker 8: leaders scrambling to change Ukraine's fate, Prime Minister Kiss Starmer's

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Speaker 8: visit to the White House today is a test how

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Speaker 8: strong is that alliance and will Starmer be able to

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Speaker 8: sway a US president who has been willing to upend

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Speaker 8: transatlantic relations. After watching France's leader Emmanuel Macron's trip this week,

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Speaker 8: Starmer's aids told Bloomberg they would be delighted if they

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Speaker 8: can get through the week without any public disagreement with

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Speaker 8: Donald Trump in London. James Wilcock, Bloomberg Radio, All right.

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Speaker 2: James, thank you on Bloomberg. Will bring you live coverage

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Speaker 2: to the news conference with President Trump and Keir Starmers

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Speaker 2: schedule to begin at two pm Wall Street Time, here

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Speaker 2: at on Bloomberg Radio and on the Bloomberg podcast page

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Speaker 2: on YouTube, Karen.

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Speaker 3: Secretary of State Marco Rubio is laying out a strategy

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Speaker 3: for managing Russia's relationship with China. He says he wants

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Speaker 3: to dilute ties between the nuclear powers, but not have

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Speaker 3: them at each other's throats.

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Speaker 9: The big story of the twenty first century is going

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Speaker 9: to be US Chinese relations and if China and if

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Speaker 9: Russia becomes a permanent junior partner to China in the

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Speaker 9: long term. Well, now you talk about two nuclear powers

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Speaker 9: aligned against the United States.

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Speaker 3: Secretary of State Marco Rubio tells the conservative outlet Breitbart News,

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Speaker 3: Russia wouldn't be able to improve relations with the US

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Speaker 3: even if it wanted to, if it became completely dependent

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Speaker 3: on China.

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Speaker 2: Well, Nathan, Russia is using ties with North Korea at

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Speaker 2: a boost it's war effort in Ukraine. According to South

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Speaker 2: Korea's Yon Have News, North Korea has sent more than

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Speaker 2: one thousand more troops to Russia this year. That's on

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Speaker 2: top of the thousands deployed last year.

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Speaker 3: I'm back in Washington, Karen. The Trump administry making a

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Speaker 3: move that could affect the next flu season. It's canceled

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Speaker 3: a meeting of the Food and Drug Administration's Vaccine Advisory

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Speaker 3: Committee that had been tentatively set for March thirteenth. The

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Speaker 3: committee was planning to discuss how to make next season's

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Speaker 3: flu shot. It's usually a routine step to ensure that

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Speaker 3: manufacturers have enough time to produce the proper houses and.

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Speaker 2: Nathan Bloomberg News has learned US health officials are reevaluating

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Speaker 2: a five hundred and ninety million dollar contract for bird

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Speaker 2: flu shaw So the Biden Administration awarded to Maderna. The

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Speaker 2: review is part of a government push to examine spending

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Speaker 2: on Messenger RNA based vaccines and shares a Maderna, they're

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Speaker 2: down more than four percent. Time now for a look

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Speaker 2: at some of the other stories making news in New

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Speaker 2: York and around the world. And for that we're joined

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Speaker 2: by Bloomberg's Michael Barr Michael, Good Morning.

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Speaker 10: Good Morning. Karen Kama says it is ready to negotiate

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Speaker 10: the next phase of the ceasefire in the Gaza Strip

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Speaker 10: after handing over the remains of four hostages in exchange

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Speaker 10: for the release of hundreds of Palestinian prisoners held by Israel.

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Speaker 10: The truce is set to end this weekend. Former US

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Speaker 10: Deputy Assistant Secretary of Defense for the Middle East Mick mulroy, since.

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Speaker 11: They haven't agreed to enter into the second phase, that

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Speaker 11: means the cessation on hostilities could be over and fighting

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Speaker 11: could resume. And we've seen steps taken by the idea

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Speaker 11: of both mobilizing units in calling up reservist that indicate

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Speaker 11: that might actually happen.

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Speaker 10: A school age child in Texas has died of measles,

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Speaker 10: and outbreak in the state has grown more than one

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Speaker 10: hundred and twenty cases. Almost all the cases are in

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Speaker 10: unvaccinated patients. Epidemiologist doctor John Brownstein.

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Speaker 6: It's not just a rash. It can cause pneumonia, brain swelling,

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Speaker 6: even death.

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Speaker 5: We're seeing that now in Texas.

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Speaker 3: It's a safe, effective vaccine and that's the way you

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Speaker 3: keep your kids safe and really the communities around you safe.

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Speaker 12: It's really that simple.

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Speaker 10: Allies a former New York Governor Andrew Cuomo have formed

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Speaker 10: a super pack. It comes just days before Cuomo is

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Speaker 10: expected to enter the New York mayoral race and again

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Speaker 10: recapping Academy Award Winnergyan Ackman and his wife were found

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Speaker 10: dead at their new Mexico home, along with their dog.

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Speaker 10: Police do not believe foul play was the factor. Hackman

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Speaker 10: was ninety five Global News twenty four hours a day

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Speaker 10: and whenever you want it with Bloomberg News Now Michael Barrn,

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Speaker 10: This is Bloomberg.

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Speaker 2: Karen, all right, Michael Barry, thank you time now fild Bloomberg.

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Speaker 2: Sports Update brought to you by Tria State OUTI. Here's

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Speaker 2: John Stanshawer, John, good morning, Good morning.

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Speaker 13: Karen Nixon. Sixers at the Garden. The two teams at

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Speaker 13: a memorable playoffs series last year, but this season's been

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Speaker 13: a nightmare in Philly, especially lately. They came in having

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Speaker 13: lost eight in a row. We're on their way to

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Speaker 13: another lop side and lost. When they rallied, Sixers went

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Speaker 13: from down nineteen to up four, but Jalen Brunton, a

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Speaker 13: big three, made a bunch of free throws. He was

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Speaker 13: fifteen of sixteen from the line. Brunson finished with thirty

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Speaker 13: four points. Nicks pulled it out one ten, one oh

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Speaker 13: five at Barkleys looked like an upset and Nets led

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Speaker 13: West lead in Oklahoma City by fifteen and a half

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Speaker 13: back came the thunder to win one, twenty nine, one

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Speaker 13: twenty one, the Celtics six game wins streak ended in

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Speaker 13: Detroit to much improved Pistons, won by twenty Colorado Avalanche

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Speaker 13: four goals in the third period to beat the Devil's

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Speaker 13: five to one. In college basketball, the madness is usually

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Speaker 13: in March. We're not quite there yet, but a mad finish.

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Speaker 13: As Michigan State and Maryland were tied.

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Speaker 3: Go and speak for three years. Coloman looks the clock.

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Speaker 8: My goodness.

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Speaker 13: They attend network to call the Trey Holloman half court

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Speaker 13: shot for the Spartan Saint John's got twenty four points

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Speaker 13: of R. J. Lewis and one at Butler's seventy six

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Speaker 13: to seventy. The Red Storm had clinched at least a

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Speaker 13: tie for the Big East regular season title and win

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Speaker 13: Saturday at the Garden over Seaton Hall, and they went

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Speaker 13: it outright. The NFL Players Association had their rank and

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Speaker 13: file to a survey of their employers. The Dolphins got

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Speaker 13: the highest grades, the Cardinals the worst. When it came

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Speaker 13: to team ownership, the only owner that got a grade

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Speaker 13: of an F was the Jets. Woody Johnson, John Stashiawer

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Speaker 13: Bloomberg Sports Karen Eathan.

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Speaker 1: Coast to Coast on Bloomberg Radio nationwide on Serious Exam

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Speaker 3: Good morning, I'm Nathan Hager. The morning after and Nvidia

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Speaker 3: earnings Day, the most hotly anticipated earnings report arguably of

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Speaker 3: the week, if not the month. This morning, it seems

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Speaker 3: investors are still trying to figure out how to react

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Speaker 3: to it. The AI chip giant came out with a

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Speaker 3: sales forecast that beat the average Wall Street estimate, but

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Speaker 3: not the blowout result that a lot of investors have

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Speaker 3: gotten used to over the last couple of years with

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Speaker 3: this company. For more reaction, let's bring in Dan Ives,

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Speaker 3: Global head of Tech research at Webbush Securities. Dan always

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Speaker 3: great to talk with you, particularly about AI. Your reaction

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Speaker 3: to these results from Nvidia.

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Speaker 12: Good morning, it's bullsh I mean, if you look at

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Speaker 12: Blackwell the next gen chip eleven billion, that's basically three

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Speaker 12: to four billion, then I think most in the street

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Speaker 12: we're expecting, even the bulls, the deep seek fears you're

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Speaker 12: not seeing it. It's smoked no fire, and I think

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Speaker 12: this is one is the street digestics, and this stock's

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Speaker 12: green today.

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Speaker 3: The forecast for forty three billion dollars in sales this quarter,

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Speaker 3: as I mentioned, just above the average estimate, but there

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Speaker 3: were some analysts who are calling for something like forty

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Speaker 3: eight billion or more. Does Nvidia need to continue to

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Speaker 3: produce the kinds of blowout results that investors had been

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Speaker 3: getting used.

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Speaker 12: To, Yeah, I actually don't think so. I think we

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Speaker 12: were at that point right in terms of the hypergrowth

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Speaker 12: going from one trillion to three trillion. But now for

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Speaker 12: this stock one seventy five, two hundred, you're not going

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Speaker 12: to need these massive blowouts. It's actually the trajectory is

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Speaker 12: so historic because they are the only game in town

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Speaker 12: when it comes to these next gen chips and there's

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Speaker 12: only one Red phones godfather b Ai Jensen Nvinion. I

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Speaker 12: think you start to have gout six seven dollars earnings

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Speaker 12: next you know, called one two years and there's a

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Speaker 12: stock that I could have a two in front of

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Speaker 12: it as we go into next year.

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Speaker 3: You say that in video is still the only game

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Speaker 3: in town. There had been a lot of questions raised

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Speaker 3: about Deep Seek. It sounds like you're putting Deep Seek

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Speaker 3: on the back burner. Here, But how much of a

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Speaker 3: threat could deep Seek be down the line if it

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Speaker 3: continues to produce an AI model that is potentially a

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Speaker 3: much lower cost than in VideA.

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Speaker 12: Yeah, look, deep Seek's a great model, but so is

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Speaker 12: Chad GBT and so as well. I'm and there'll be

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Speaker 12: other models and they'll get cheaper. But for large scale

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Speaker 12: enterprise deployments, there's only one chip that you're using.

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Speaker 3: It's in video.

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Speaker 12: And I could also argue as the models get cheaper,

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Speaker 12: it's more GP capacity.

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Speaker 3: It's actually bullish for in video.

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Speaker 12: So I don't view it that way. But remember, look

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Speaker 12: right now, everyone's trying to find a crack in the

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Speaker 12: arm or AI bubb well, remember a lot of the

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Speaker 12: bears they've missed, you know, this massive run in tech

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Speaker 12: for the last three years. They're not finding it. I

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Speaker 12: actually think, you know, this is the fuel for really

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Speaker 12: the book is not just in Nvidia, but really the

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Speaker 12: broader AI revolution across the rest of tech, max having others.

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Speaker 3: So do you continue to see the hyperscalers, these big

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Speaker 3: companies continuing to spend on AI the way that they

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Speaker 3: have tens of billions of dollars every quarter. We've seen

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Speaker 3: some companies talking about at least trying to scale back

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Speaker 3: some of that cap bax.

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Speaker 12: Look, it's you have three hundred and twenty five billion

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Speaker 12: of cap backs between you called the top six tech players.

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Speaker 12: That's one hundred billion increased year of a year. Well

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Speaker 12: that moderate going into next year, of course, but it's

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Speaker 12: the start that you're essentially building out a new city,

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Speaker 12: and it starts the vidio, but then it goes to

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Speaker 12: the hyper skills, goes to the rest of software, goes

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Speaker 12: to cybersecurity, consumer data centers, and that's really where this

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Speaker 12: is playing out. Look, are there certain things like Trump

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Speaker 12: in terms of export controls in some other words, of course,

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Speaker 12: but the reality is is that we're talking about once

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Speaker 12: in a forty to fifty year build out.

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Speaker 3: We've got Nvidia in the pre market trading around one

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Speaker 3: hundred and thirty two dollars to share. You adjusting your

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Speaker 3: price target for Nvidia.

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Speaker 12: One seventy five base two hundred bull and I ultimately

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Speaker 12: think this is one where you know, there's a lot

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Speaker 12: of worries going into this. They produce flying calls in

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Speaker 12: terms of coming out with this. Now you digest what

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Speaker 12: this means going forward, China is going to be a player.

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Speaker 12: But ultimately, you know, in Vidia continues to be that

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Speaker 12: only game in town. When it comes to next ten chips.

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Speaker 3: Just thirty seconds left, Dan, how much does Nvidia have

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Speaker 3: to get past Wall Street estimates to get to that

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Speaker 3: two hundred dollars ball case?

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Speaker 12: Look, I think if they continue on this trajectory, especially

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Speaker 12: with Blackwell, I mean, I think you could be there

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Speaker 12: in the next you know called two three quarters. But look,

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Speaker 12: haters hate. That's what happens in video. They've missed every

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Speaker 12: transmission tech dot plast twenty years.

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Speaker 3: The missing video were bors.

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