Speaker 1: Good morning. It's Thursday, the twenty fourth of August in London.
Speaker 1: This is the Bloomberg Daybreak Euroate podcast. I'm Stephen Carroll
Speaker 1: coming up today. Russia says the Wagner Mercenary chief you
Speaker 1: of Genny Progosian has died in a plane crash. Nvidia's
Speaker 1: stock soars as insatiable AI demand fuels a blowout forecast,
Speaker 1: and Nigel Farage fumes as nat West debates clawing back
Speaker 1: Alison Rose's two point four million pound notice period pay.
Speaker 1: Let's start with a und up of our top stories,
Speaker 1: our top stories. You've Guenny Progosian, the man who led
Speaker 1: a mutiny against Putin's regime just two months ago, is
Speaker 1: now presumed dead. Russia's aviation authorities say he was on
Speaker 1: board a plane which crashed on a journey from Moscow
Speaker 1: to Saint Petersburg, killing all passengers. Former US Ambassador to Poland,
Speaker 1: Daniel Freed says no one would be shocked if Putin
Speaker 1: had a hand in this.
Speaker 2: Putin has a habit of killing his opponent, and many
Speaker 2: of us who watched the mutiny were surprised that progosion
Speaker 2: Is left let off so easily or appeared to be,
Speaker 2: but it seems that Putin wanted to take stock of
Speaker 2: Progosions network find out where Progotions links were and as
Speaker 2: the old mafia saying goes, revenge is a disc best
Speaker 2: eaten cold.
Speaker 1: Freed wasn't the only one to say that. President Joe
Speaker 1: Biden telling reporters he wasn't surprised by the reports. The
Speaker 1: Kremlin has repeatedly been accused of targeting its opponents and
Speaker 1: allegation officials there deny shares and the chip maker and
Speaker 1: Vidia have soared after the firm announced yet another blowout
Speaker 1: quarterly revenue forecast. The current darling of the tech industry
Speaker 1: projects that sales will hit sixteen billion dollars in the
Speaker 1: next quarter. The massive beat on analyst expectations is being
Speaker 1: driven by surging global demand for the text giants' AI processors.
Speaker 1: Boomberg Technologies. Ed Ludlow breaks down the outlook.
Speaker 3: The way that executives on the call described it is
Speaker 3: they have visibility on AI demand going into the next
Speaker 3: fiscal year. CFO collect Cress called it quote tremendous and
Speaker 3: broad based AI demand in the supply side of the
Speaker 3: equation in video, does expect supply to increase in each
Speaker 3: quarter for the next year, and they said that suppliers,
Speaker 3: namely TSMC contract manufacturers, have really stepped up to meet
Speaker 3: the demand in videos.
Speaker 1: Postmarked US gain adds to a more than threefold increase
Speaker 1: for the stock this year. Private US funds have been
Speaker 1: hit with a raft of new rules from the Securities
Speaker 1: and Exchange Commission. The SEC says private equity firms and
Speaker 1: hedge funds must now detail quarterly fees and expenses to investors.
Speaker 1: Firms are also being prohibited from allowing some favored clients
Speaker 1: to cash out more easily than others. It's the latest
Speaker 1: move by the US regulator to tighten oversight of the
Speaker 1: fast growing, multi trillion dollar industry. UBS is poised to
Speaker 1: keep Credit Sweez's domestic bank while dropping the brand name
Speaker 1: the Trouble Swiss Lenders. The Trouble Lenders Swiss operation has
Speaker 1: long been its best performing unit. The two banks combined
Speaker 1: will make up over a third of deposits and a
Speaker 1: quarter of mortgage lending in the country. The plan will
Speaker 1: likely result in thousands of job cuts for credit suite
Speaker 1: staff in Switzerland. NatWest says it hasn't decided whether or
Speaker 1: not to clawback compensation totaling two point four million pounds
Speaker 1: from Alison Rose as she works a twelve month notice period.
Speaker 1: The former CEO was forced to step down last month
Speaker 1: after giving inaccurate details to journalists about the closure of
Speaker 1: Nigel Farage's bank accounts. Responding to news of Roses pay
Speaker 1: for as described it as a quote sick joke.
Speaker 4: This is the corrupt British establishment looking out for its own.
Speaker 4: It's the corrupt British establishment at its very very worst.
Speaker 4: Any employee of NatWest that had done what she'd done
Speaker 4: would have been out the door and would not have
Speaker 4: even received their month's.
Speaker 1: Matt West says Alison Rose will continue to be compensated
Speaker 1: as their investigation into the Nigel Farage dbanking case continues.
Speaker 1: Donald Trump skipped to the Republican debate stages of the
Speaker 1: other presidential candidates, vowed to reverse Joe Biden's economic plan. Instead,
Speaker 1: he used a pre recorded interview with former Fox News
Speaker 1: host Tucker Carlson to attack his opponents.
Speaker 2: I have never seen spirit like it is right now,
Speaker 2: and the reason is because Crooked Joe Biden is so bad.
Speaker 2: He's the worst president in the history of our country.
Speaker 1: Trump added in the interview that he sees Fox News
Speaker 1: as unfriendly to him. The front runner is hoping a
Speaker 1: lead in the polls will allow him to avoid confrontations
Speaker 1: with contenders like former Vice President Mike Pence and Florida's
Speaker 1: Governor Randa Santis. And India has become the first country
Speaker 1: to land a spacecraft near the Moon's south pole. A
Speaker 1: rover will now analyze the chemical makeup of the Moon's
Speaker 1: surface and search for water over the course of one
Speaker 1: lunar day, which short, but it's actually the equivalent of
Speaker 1: to fourteen days on Earth. Here's the reaction in the
Speaker 1: control room when the rocket achieved a soft landing.
Speaker 5: Geeha half of please.
Speaker 6: Green predicted the head gehabout langdon margin.
Speaker 1: The success comes just days after Russia's attempt at a
Speaker 1: lunar touchdown in the same area ended in failure. Those
Speaker 1: are your top stories on the markets. The MSCIS specific
Speaker 1: index is trading one point two percent higher now, Your
Speaker 1: stocks fifty futures are eight tenths of one percent higher,
Speaker 1: and the tenure treasury yield is one and a half
Speaker 1: basis points higher at four point two one percent. Another
Speaker 1: story that comer this morning is are from our opinion
Speaker 1: columnist to Marcus Ashworth writing about rents in London a
Speaker 1: subject of much debate as we see the pressure on
Speaker 1: the mortgage market feeding through into the rental market here
Speaker 1: in London. Marcus looking at some of the particular pressures
Speaker 1: being faced in London as the chronic lack of properties
Speaker 1: is driving rents up even higher. About twenty seven percent
Speaker 1: of properties in London are rented, so much higher than
Speaker 1: the national proportion. Here the Royal Institute charges of ayr's
Speaker 1: latest report showing that agents expectations for future rent increases
Speaker 1: at its highest reading ever, forty three percent of renters
Speaker 1: surveyed by the ons saying they're having difficulties affording higher payments.
Speaker 1: This is further pressure being driven up on the market here,
Speaker 1: and Marcus points to the lack of supply being the
Speaker 1: crucial issue, quoting figures from the Center for Cities think
Speaker 1: tank about an undersupply of some four million dwellings in
Speaker 1: the UK that it would take fourteen years of construction
Speaker 1: according to Capital Economics to remedy the shortage of housing. Here,
Speaker 1: Marcus saying that of course this is an issue that
Speaker 1: could be of major debate in the next election, as
Speaker 1: those people who are struggling to pay their rent may
Speaker 1: let the policies outlined by the parties determine their vote.
Speaker 1: So a great read if you're looking to understand they
Speaker 1: pressure on the rental markets in London. From Bloomberg Opinions
Speaker 1: Marcus Ashworth this morning, that's starting to get more. Now
Speaker 1: on the results in the chip maker in video, the
Speaker 1: company reporting a third straight sales forecast that's a past
Speaker 1: Wall Street estimates, fueled by surging demand for its AI processors.
Speaker 1: Boomberg Anco Tomackenzie joins us now for more on this.
Speaker 1: Great to have you with us, Tom. Another impressive beat
Speaker 1: for the last quarter and in the forecast. Any signs
Speaker 1: in these results of the AI boom peaking.
Speaker 6: It is remarkable in just the context in terms of
Speaker 6: how the markets have been looking at this. I mean
Speaker 6: literally there has been a debate this week as to
Speaker 6: what's more important the speech by the Fed chair Jpowel
Speaker 6: on Friday in Jackson holl All the results from in video.
Speaker 6: We do have those results, as you say, a massive
Speaker 6: beat and the answer to your question is no, it
Speaker 6: doesn't look like the demand for these AI chips is
Speaker 6: slowing anytime soon. This is the third straight sales forecast
Speaker 6: that beat estimates. They're looking now in Video at sales
Speaker 6: of about sixteen billion US dollars in the three months
Speaker 6: that end in October of this year. That compares the
Speaker 6: estimates of twelve fezo point five billion from the analysts
Speaker 6: for the context to Care, that target is nearly as
Speaker 6: high as the company's total annual sales in twenty twenty one.
Speaker 6: Where is this demand coming from is coming from businesses
Speaker 6: that are starting to incorporate those chat GPT style services
Speaker 6: and platforms and abilities into their businesses. That's putting huge
Speaker 6: demand on data centers, and those data centers need those
Speaker 6: very powerful GPU chips that in Video specializes in to
Speaker 6: power that and to allow those models, those large language
Speaker 6: models to be laired on top of those data centers.
Speaker 6: And that's where the demand comings from. And in Vidia
Speaker 6: ces no letterup.
Speaker 1: There had been concerns about supply constraints in this area
Speaker 1: as well. Any signs of that arecpearing in these results.
Speaker 6: You're absolutely right. This is one of the key areas
Speaker 6: that ANAS has been looking for in terms of potential weakness.
Speaker 6: The expectation was, yes, there was going to be very
Speaker 6: strong demand, but would they be able in video to
Speaker 6: be able to match that demand with supply. They don't
Speaker 6: manufacture their own chips. They rely on Samsung TSMC over
Speaker 6: in Taiwan to actually build and produce and churn out
Speaker 6: the chips for them. But the CFO on the call said, no,
Speaker 6: they're not seeing any signs of constraints in terms of supply.
Speaker 6: The supply chains are looking pretty smooth. They are able
Speaker 6: to match the demand at this point. And that's really
Speaker 6: really significant in terms of the different parts of this business.
Speaker 6: They supply chips to the auto's industry, to gaming. That
Speaker 6: used to be the key part of this business. They've
Speaker 6: shifted from gaming. Now it's the data centers. It is
Speaker 6: the biggest revenue stream. And another headline that came out
Speaker 6: of these earnings is this twenty five billion dollar buy back.
Speaker 1: Yeah, and this is a fascinating element of the story
Speaker 1: as well. It's nice typically a time you'd see companies
Speaker 1: buying back shares given that their share price is so high.
Speaker 6: Yes, and if there is a potential weakness, then maybe
Speaker 6: it's the buy back, because what does it flag. According
Speaker 6: to some analysts, it suggests, look, if you're handing this
Speaker 6: much cash back to shareholders at this potential and at
Speaker 6: this point, maybe it suggests that there's not that much
Speaker 6: more market share to carve out. Why aren't you using
Speaker 6: that money to build out more facilities, to spend more
Speaker 6: on R and D to develop new products. That is
Speaker 6: potentially a concern on the geopolitics. It's really worth noting
Speaker 6: as well. In Vidia isn't able to sell the full
Speaker 6: suite of its products to China. It has to get
Speaker 6: licenses for the very high end chips that it may
Speaker 6: want to sell into that economy. So just think about that,
Speaker 6: the second largest economy is essentially a write off for
Speaker 6: in Video when it comes to the most sophisticated part
Speaker 6: of its chips portfolio. And despite that, it's still seeing
Speaker 6: this incredible demand. Maybe the buyback signals that the market
Speaker 6: share is starting to shrink for this business. It's a
Speaker 6: potential fly in the ointment, but top line, this is
Speaker 6: a very very solid outlook from this company.
Speaker 1: Tamaccanzie Blue Riganko, thanks so much for joining us with
Speaker 1: the details of a up next MP freebies and India's
Speaker 1: moon landing.
Speaker 3: Now the paper review on blue Bird day Break Europe.
Speaker 6: The news you need to know from today's papers.
Speaker 1: Ale Ane gerins is with us with the details of
Speaker 1: those stories as well. Morning to you Leanne. Let's start
Speaker 1: with a story in the Financial Times Cammy Badenox seeks
Speaker 1: cash for a UK advanced manufacturing plan.
Speaker 5: Yes, indeed, Stephen, good morning to you too, and the
Speaker 5: Financial Times has his story on the Business Secretary urging
Speaker 5: the Treasury to provide financial firepower for a new advanced
Speaker 5: manufacturing plan. Now, this will set out how Britain intends
Speaker 5: to compete in the cut throat global fight that we
Speaker 5: are seeing over investment in green technology. Now, government insiders
Speaker 5: say Kemy Beijannock and the Treasury are working on a
Speaker 5: plan ahead of the Chancellor Jeremy Hunt's autumn statement. This
Speaker 5: is according to the ft The advanced Manufacturing Plan is
Speaker 5: focused on car and aerospace industries and it's also a
Speaker 5: response to that huge billion dollar pack of clean energy
Speaker 5: subsidies offered by Joe Biden's Inflation Reduction Act, which we've
Speaker 5: been speaking a lot about Richie Soon Act. Stephen was
Speaker 5: actually the Chancellor back in twenty twenty one when the
Speaker 5: government's industrial strategy was completely act. However, elements of it
Speaker 5: are trying to be revived and being brought back because
Speaker 5: this is following criticism from business. Those back in Kenny
Speaker 5: Badenox say new money would be required on top of
Speaker 5: existing government schemes such as the eight hundred and fifty
Speaker 5: million pound Car Transformation Fund, which helped to support the
Speaker 5: Tata factory. But Jeremy Hunt's allies say discussions about additional
Speaker 5: money and the precise form of advanced manufacturing plan would
Speaker 5: not happen until after the summertime. Appears to be a
Speaker 5: rifted there because Kemmy Badenac really wanting more financial firepower
Speaker 5: to compete with the likes of the European Union and
Speaker 5: the USA.
Speaker 1: Okay, really interesting to see that latest on that particular story, Leanne.
Speaker 1: Let's go to the Guardian next. What says that more
Speaker 1: than one hundred MPs received freebies worth one hundred and
Speaker 1: eighty thousand pounds this summer.
Speaker 5: Yes, indeed, some of them had a great time. They
Speaker 5: went to concerts, they went to Wimbledon. But let's all
Speaker 5: break it down. More than one hundred MPs have enjoyed
Speaker 5: free hospitality to what I said, concert sporting events worth
Speaker 5: more than one hundred and eighty thousand pounds this summertime.
Speaker 5: The tickets were given away by the likes of banks,
Speaker 5: big oil companies and the gambling industry, and also media firms.
Speaker 5: The Chancellor, Jeremy Hunt, Oliver Dowden and labor leader Kia
Speaker 5: Starmer are among those who have benefited from this new
Speaker 5: sort of craze. Is what the Guardian calls it of
Speaker 5: politicians accepting giveaways. Jeremy Hunt taken to the Chelsea Flower
Speaker 5: Show by Lloyd's Banking Group. It was worth more than
Speaker 5: six hundred pounds. He also apparently accepted theater and opera tickets.
Speaker 5: Paul Scully, as Science and Technology Minister, went to a
Speaker 5: Bully Joel concert after a betting and gambling company gave
Speaker 5: him tickets, but he also enjoyed Wimbledon hospitality Stephen to
Speaker 5: the tune of one thousand, five hundred and sixty pounds.
Speaker 5: Keir Starmer was given Coldplay concert tickets and also the
Speaker 5: Jockey Club gave him a box and hospitality at epsom
Speaker 5: Derby Now that was worth while over three thousand, seven
Speaker 5: hundred and sixteen pounds. Listen accepting hospitalities not against the
Speaker 5: rules for MPs, according to the Guardian, but critics say
Speaker 5: free tickets could leave MPs open to influence from companies
Speaker 5: providing benefits. And it's also not a good look because
Speaker 5: we're literally in the cost of living crisis. So the
Speaker 5: newspaper says, you know, this is not something that MPs
Speaker 5: should be doing in many ways while people are struggling
Speaker 5: to make ends meet.
Speaker 1: Yeah, well, of course, it's going to be very interesting
Speaker 1: to see what political hay is made of the details
Speaker 1: of this. As you say, the fact that they have
Speaker 1: to be declared means that it can be used to
Speaker 1: for criticism against these politicians as well. Lean, let's go
Speaker 1: to the Telegraph next, which has some reporting around the
Speaker 1: Indian moonlanding.
Speaker 5: So yesterday we're all like, oh, is it going to happen?
Speaker 5: Isn't it going to happen? But has happened. India has
Speaker 5: become the first country ever to land a spacecraft on
Speaker 5: the far side of the Moon. And speaking after the
Speaker 5: successful landing yesterday, Narindra Mody, of course, a Prime Minister
Speaker 5: of India, said the sky is not the limit. This
Speaker 5: is a victory cry of New India. But the successful
Speaker 5: mission really stephen. The Telegraph touches on the fact it's
Speaker 5: reopened questions over who has the rights to exploit our
Speaker 5: lunar neighborhood, and it's water because they're thinking of using
Speaker 5: the Moon's resources when it comes to mining. Not right now,
Speaker 5: it's a couple of hundred years away, but it could
Speaker 5: still happen. So now who owns that land? Because India's
Speaker 5: obviously run won the race there and the landing follows
Speaker 5: Russia's dramatic failure to make it their first earlier this
Speaker 5: week as it's Luna twenty five probe did crash land
Speaker 5: on Sunday. India actually spends significantly less on its space
Speaker 5: program than the US and China, but it's been successful
Speaker 5: in its landing. But the big question who is going
Speaker 5: to own those resources? Now?
Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the
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Speaker 2: Europe HM