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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg Day Baker podcast. Good morning, It's Thursday,

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Speaker 2: the twenty sixth of February. I'm Caroline hepkea in London.

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Speaker 3: And I'm Stephen Carolin Brussels. Coming up today. When great

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Speaker 3: Isn't good enough? Investors give a tepid reaction to ai

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Speaker 3: Chip giant in Vidia's latest upbeat earnings.

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Speaker 2: Cuban forces kill four people who opened far from an

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Speaker 2: American registered.

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Speaker 3: Speedboat, plus satellite images revealed why any US strike on

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Speaker 3: Iran could face serious hurdles. As officials prepare for another

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Speaker 3: round of talks.

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Speaker 4: Let's start with a roundup of our top stories.

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Speaker 3: Investors have been left unimpressed by the latest blowout earnings

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Speaker 3: forecast from Nvidio, The dominant maker of ai chip, says

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Speaker 3: its revenue in the current quarter will be about seventy

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Speaker 3: eight billion dollars, well ahead of the almost seventy three

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Speaker 3: billion that analyst had expected. However, that wasn't enough to

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Speaker 3: excite markets, with shares a little changed in postmarket trading.

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Speaker 3: Daniel Newman is the CEO of technology research firm The

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Speaker 3: Futureum Group.

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Speaker 5: I think the market has been in this bit of

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Speaker 5: an uncertain space, almost in between whether AI.

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Speaker 6: Is a bubble or AI is so valuable that.

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Speaker 5: It is going to disrupt and basically eliminate entire industries.

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Speaker 5: But nvideo sits in this really good position where it's

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Speaker 5: providing the quote unquote arms for this revolution.

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Speaker 3: Human's assessment came as Salesforce delivered a lukewarm sales outlook

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Speaker 3: that also failed to impress investors. The software giant has

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Speaker 3: become a poster child for what's been dubbed the AI

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Speaker 3: scare trade. Salesforce shares have dropped about thirty seven percent

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Speaker 3: in the past year as investors fear AI will make

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Speaker 3: it easier to build competing products.

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Speaker 2: The European Union sees the latest US tariffs hitting four

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Speaker 2: point two billion euros worth of exports, with levees above

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Speaker 2: what was agreed in the trade deal with the White

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Speaker 2: House boombig under sid the Block sees chemicals and agricultural

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Speaker 2: products as a key area of concern. US trade representative

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Speaker 2: Jamison Grier told Bloomberg America will meet its side of

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Speaker 2: the trade deal.

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Speaker 1: The way to think about this is every country has

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Speaker 1: domestic procedures that they need to go through to come

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Speaker 1: into compliance with a deal. With Brussels, we gave them

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Speaker 1: a good rate on cars that stays the same. With

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Speaker 1: the UK. We gave them a quota on cars. We

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Speaker 1: gave them a quota of beef to import duty free

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Speaker 1: that stays the same. So a lot of these parts

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Speaker 1: stay the same. But just like Brussels hasn't fully implemented

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Speaker 1: its deal or the UK hasn't fully implemented its deal,

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Speaker 1: we also need a couple months now to have some

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Speaker 1: domestic procedures because the Supreme Court struck down all of this.

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Speaker 2: Greer added that President Trump will sign a directive in

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Speaker 2: the coming days raising his new global tariff to fifteen percent.

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Speaker 2: The International Monetary Fund says the tariff uncertainty risks under

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Speaker 2: cutting an otherwise buoyant US economy.

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Speaker 3: Fredrick Mertz has made the case for a building stronger

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Speaker 3: ties with Beijing. In a change of tone for Germany's

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Speaker 3: chancellor while on a trip to China, the German leader

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Speaker 3: signals that he wants to deepen the German Chinese relationship,

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Speaker 3: saying the superpower is now a major players.

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Speaker 7: Both the Chinese and the Germans are aware that our

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Speaker 7: economic exchange contributes significantly to the prosperity of both countries.

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Speaker 7: The fact that two of the world's three largest economies

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Speaker 7: are engaged in trade with each other generates great momentum

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Speaker 7: both for US and beyond. The potential that still exists

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Speaker 7: here is also evident from this trip.

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Speaker 3: Before becoming Germany's chancellor, Mertz made his name as a

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Speaker 3: pro American politician who was hawkish on China. The German

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Speaker 3: economy has been shedding ten thousand manufacturing jobs a month,

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Speaker 3: experience what some experiencing what some economists call the second

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Speaker 3: China Shock, but the country is also heavily dependent on

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Speaker 3: critical minerals from China for its manufacturing base.

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Speaker 2: Blueberger's land that the UK's top banks are resisting a

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Speaker 2: plan to boost lending by lowering their capital level.

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Speaker 4: U and POTS has more.

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Speaker 8: The UK's big banks have had almost three months to

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Speaker 8: digest the impact of the Bank of England's push to

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Speaker 8: reduce their capital buffers by one percentage point, but senior

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Speaker 8: execs several top lenders have told Bloomberg they aren't keen

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Speaker 8: to reduce the hedroom that they maintain above the regulatory minimum.

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Speaker 8: Ratings agency Fitch has already warned the risks to ratings

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Speaker 8: if banks materially reduce capital ratios, so lenders are alive

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Speaker 8: to the dangers of an increase in the cost of

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Speaker 8: their debt. In London, I'm ewing pots Bloomberg Radio.

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Speaker 3: Cuban forces say they have killed a number of people

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Speaker 3: who opened fire from a speedboat carrying Florida tags. The

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Speaker 3: country's Interior minister said the vessel, which had ten people

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Speaker 3: on board, approach the Cuban coast. Four were killed in

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Speaker 3: the confrontation, while six others were injured and are now

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Speaker 3: understood to be in custody. Cuban authorities claimed the occupants

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Speaker 3: were armed and intended to enter the country to fight

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Speaker 3: against the government. US Secretary of State Marco Rubio said

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Speaker 3: officials are looking into the incident, not even.

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Speaker 9: Going to speculat as to what it could have been.

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Speaker 9: It's a wide range of things. I suffice it to say,

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Speaker 9: it is highly unusual to see shootouts and open sea

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Speaker 9: like that. It's not something that happens every day. It's something, frankly,

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Speaker 9: that hasn't happened with Cuba in a very long time.

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Speaker 9: But we're going to find out. We're not going to

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Speaker 9: base our conclusions on what they've told.

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Speaker 3: US Marco Rubio, speaking there, as the episode threatens to

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Speaker 3: escalation already tens standoff between the United States and Cuba.

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Speaker 2: US and Iranian officials will meet in Geneva today with

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Speaker 2: the latest round of ongoing nuclear talks expected to take place.

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Speaker 2: The discussions come as the US government imposed sanctions on

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Speaker 2: more than thirty entities that support Iranian oil and weapons sales.

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Speaker 2: Republican Senator Steve Davies says that Iran's leadership presents a threat.

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Speaker 6: I don't trust this regime. There's one thing this regime

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Speaker 6: does understand and respect, and that strength, and that's force.

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Speaker 6: So I know there's a lot of variables, a lot

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Speaker 6: of consideration the president has to take into account, but

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Speaker 6: I do not trust the current regime.

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Speaker 2: Republican Steve Davies, speaking to Bloomberg yesterday. According to the

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Speaker 2: US Office of Foreign Assets Control, individuals and entities across

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Speaker 2: the Middle East that helped Tehran develop advanced weapons have

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Speaker 2: been blacklisted. In his State of the Union address on Tuesday,

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Speaker 2: President Trump claimed that Iran was working to reconstitute its

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Speaker 2: nuclear program even as it negotiates with Washington.

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Speaker 3: Ukraine's President Vladimozelenski says he and President Trump have discussed

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Speaker 3: the next steps for peace talks about the conflict with Russia.

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Speaker 3: In a post on x the Ukrainian president said the

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Speaker 3: leaders discussed talks between negotiators due to take place in

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Speaker 3: Geneva today, as well as further meetings involving Russia. The

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Speaker 3: news comes as Russia's government wigs a substantial downgrade to

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Speaker 3: its growth forecast for this year, has tougher sanctions over

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Speaker 3: the war in Ukraine hit oil revenue. Speaking to Fox

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Speaker 3: News yesterday, for US Vice President jd Vance acknowledged that

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Speaker 3: efforts to end the fighting have been much more difficult

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Speaker 3: that expected.

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Speaker 2: And those are our top stories for you this morning.

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Speaker 2: Looking at the markets, so stop, futures for the US

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Speaker 2: are in the red and now's that futures down by

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Speaker 2: almost three tenths of one percent, despite and Video's outlook

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Speaker 2: that look very strong, but was not received so positively

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Speaker 2: by markets. The costp is also rallying up, but more

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Speaker 2: than three percent, almost three and a half percent in fact,

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Speaker 2: for the cospy this morning, the dollar right now is

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Speaker 2: down two tenths of one percent. The Japanese yen strengthening

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Speaker 2: two tenths after the Bank of Japan's ewader signals the

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Speaker 2: intention to continue a tightening policy. There, BN crewde futures

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Speaker 2: fairly steady this morning at seventy one dollars, up by

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Speaker 2: two tenths of one percent.

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Speaker 4: Those are the markets in a moment.

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Speaker 3: More and why and videos results weren't enough for investors,

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Speaker 3: Plus how satellite images show any US strike on Iran

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Speaker 3: may not produce the results that President Trump would want.

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Speaker 3: But another story that we've been reading this morning about

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Speaker 3: how the middle aged are the new customers for those jobs.

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Speaker 3: Lina Dizzik has been writing about this trend in the

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Speaker 3: United States of people and their forties and older opting

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Speaker 3: for discrete plastic surgery to counteract the effects of aging. Now,

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Speaker 3: according to industry groups, the number of rhinoplasties are rising,

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Speaker 3: but also the numbers getting nose filler procedures, which are

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Speaker 3: cheaper and require less recovery time. Apparently, part of the

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Speaker 3: increase of demand for this has come from people looking

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Speaker 3: at themselves more on video calls or on their phone cameras. Now,

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Speaker 3: these new treatments come with their own risks, but the

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Speaker 3: fact that they can be done in most cases in

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Speaker 3: a day without significant recovery time that you know, you

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Speaker 3: can go into work and people won't necessarily know, and

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Speaker 3: the cast thousands of dollars less as well. It's part

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Speaker 3: of what's attracting people to it. I'm really not sure

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Speaker 3: about this.

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Speaker 4: Well.

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Speaker 2: I saw the photographs and I hadn't quite understood what

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Speaker 2: this surgery did. But when I saw the pictures in

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Speaker 2: this story, I understood it much more. Look, there are

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Speaker 2: risks in part of the story was all about how

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Speaker 2: you know, maybe if it's kind of high street procedures,

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Speaker 2: you know, with people who aren't doctors, maybe you need

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Speaker 2: to be.

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Speaker 4: High street going to well, look, I.

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Speaker 2: Mean Phyllis and so on in beauty Salon's done high

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Speaker 2: Street and exactly. Look, I just want to throw one

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Speaker 2: number into this conversation. Nearly ninety percent of all plastic

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Speaker 2: surgery around the world, as far as I can make out,

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Speaker 2: is women, and so yeah, I worry about that side

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Speaker 2: of it.

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Speaker 3: Yeah, perhaps another concern to add to several others.

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Speaker 4: That I have about this trend as well.

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Speaker 3: But it's an interesting read and certainly a trend that

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Speaker 3: I wasn't aware of. We'll put a link to Earion

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Speaker 3: his piece on our podcast show notes well, let's dig

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Speaker 3: into the earnings from Nvidio now and what they tell

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Speaker 3: us about investor expectations around artificial intelligence. Our senior market

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Speaker 3: Strattus Neil Campling joins us now from more Neil, Good Morning.

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Speaker 3: In videos expecting seventy eight billion dollars in revenue in

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Speaker 3: this quarter. It's better than have been forecast. Why don't

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Speaker 3: investors them in press?

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Speaker 10: I think the expectations were so high that effectively in

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Speaker 10: video and Jensen Wang needed to have another mic drop

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Speaker 10: moment like they did in May twenty twenty three to

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Speaker 10: really surprise to the upside. So despite a six billion

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Speaker 10: dollar beat in terms of the guidance on revenues, it's

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Speaker 10: just simply that expectations are so high and it's as

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Speaker 10: good as it gets effectively, and that's kind of the problem.

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Speaker 10: Despite the fact that on the call he talked about

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Speaker 10: skyrocketing adoption of the agents and that hyperscalers were fifty

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Speaker 10: percent of data center revenues in the fiscal fourth quarter,

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Speaker 10: plus free cashtow also doubled more than doubled year on

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Speaker 10: year to thirty five billion dollars.

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Speaker 4: But there were some questions.

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Speaker 10: There are some questions around the fact that supply commitments

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Speaker 10: have gone from fifty billion dollars to ninety five billion dollars.

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Speaker 4: Why is that?

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Speaker 10: It's probably to secure memory, given it's in such short

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Speaker 10: supply and prices of skyrocketing. Also, there's the open Ai investment,

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Speaker 10: which is concerning some investors, and the thing is we

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Speaker 10: still haven't got a definitive answer to when that investment

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Speaker 10: is completed. So there are some questions that linger I

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Speaker 10: think in investors' minds.

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Speaker 2: Okay, that's really interesting, And one notable thing was that

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Speaker 2: the share price of Nvidia went down during that call

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Speaker 2: with analysts, so that was part of the story about

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Speaker 2: why people think that investors were disappointed a little bit.

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Speaker 2: What did we learn then about chip supplies and this

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Speaker 2: kind of impact that it's having on the wider tech sector.

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Speaker 4: You sort of mentioned it a little bit.

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Speaker 10: There, Yeah, absolutely, So they mentioned that they themselves were

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Speaker 10: able to get the supplies that they required, but of

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Speaker 10: course there's only there's only a limited amount of memory

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Speaker 10: to go around, for example, so they're taking supply. Is

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Speaker 10: also the question of who else isn't getting the supply,

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Speaker 10: So that's one concern I think in the wider tech market.

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Speaker 10: Even though on the call, they were saying that their

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Speaker 10: customers were making profits from these investments. There's a bigger

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Speaker 10: concern that given the hyperscalar capex that we are seeing,

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Speaker 10: which for the big hyperscalars in the US, we're now

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Speaker 10: looking at six hundred and fifty billion dollars of investment

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Speaker 10: this year. The question remained, when will we see significant

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Speaker 10: return on investment from that spending, And we haven't yet

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Speaker 10: got the answer to that.

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Speaker 3: Okay, Neil, thanks very much for joining us our senior

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Speaker 3: Marcus Stratus Neil Campbell and joining us there on in Vidia,

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Speaker 3: of course, the question of China very central to that

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Speaker 3: as well, and Vidia's still facing on certainty. They've got

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Speaker 3: the licenses for a small amount of h two hundred processors,

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Speaker 3: but say they don't know if the Chinese government will

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Speaker 3: give their approval. Another strand to that story on in Nvidia.

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Speaker 4: Stay with us.

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Speaker 3: More from Bloomberg Daybreak Europe coming up after this.

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Speaker 8: Now.

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Speaker 2: The US President has claimed that military victory in Iran

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Speaker 2: would be easy, but mberg reporting using data and satellite

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Speaker 2: imagery shows the reality maybe more difficult, with hidden facilities

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Speaker 2: and stockpiles amid rugged terrain. Joining US now as Bloomberg's

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Speaker 2: Jonathan Tyrone, who covers nuclear diplomacy in Vienna. And we

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Speaker 2: know Jonathan that there are discussions and talks between Iran

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Speaker 2: and the US beginning again today. But on this story,

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Speaker 2: what has Iran actually been doing to prepare on the

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Speaker 2: ground in the country maybe for a possible conflict.

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Speaker 11: Well, we wanted to do a little bit of reality

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Speaker 11: check on some of the claimed the ease with which

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Speaker 11: Uran's program could be disrupted, and what we saw is,

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Speaker 11: you know, this is a vast infrastructure that we knew.

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Speaker 11: What we saw in the updated satellite imagery is that

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Speaker 11: Iran has been busy at work not only clearing debris

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Speaker 11: and rebuilding sites that were damaged from the June attacks,

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Speaker 11: but backfilling tunnels and protecting infrastructure against the future attack.

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Speaker 11: And so the idea that a strike would be easy

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Speaker 11: and be able to easily degrade runs remaining nuclear infrastructure

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Speaker 11: and ballistic missile capacities is tenuous at best.

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Speaker 3: Of course, President Trumpet time the US it obliterated nuclear

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Speaker 3: sites after the bombing in June of last year. What

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Speaker 3: is happening at the key nuclear sites the likes of

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Speaker 3: Sfahan that we were hearing so much about well at Sfahan.

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Speaker 11: The majority of the above grounds uranium processing facilities do

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Speaker 11: remain obliterated. To use the White House expression, however, what

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Speaker 11: we see in nearby sites where he runs stockpile of

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Speaker 11: highly enriched uranium that's the near bomb grade material that

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Speaker 11: could be quickly turned into a nuclear weapon. We see

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Speaker 11: Iruni engineers prepar for a strike, protecting the site by

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Speaker 11: filling entrances with debris that would protect it from collaps

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Speaker 11: should and should a new strike take place at Iran's

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Speaker 11: Theton's facility, that's the largest enrichment manufacturing site. Iran has

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Speaker 11: already rebuilt and put a roof onto a new facility

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Speaker 11: that was previously known as the Pilot Fuel Enrichment plant.

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Speaker 11: And perhaps the most concerning is the suspected third enrichment site.

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Speaker 11: It's a site called Pickaxe Mountain. It's just south of

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Speaker 11: the Toons and again Iran is preparing for an attack

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Speaker 11: by reinforcing tunnel entrances. This is another site that's built

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Speaker 11: into the side of a mountain and as natural protections

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Speaker 11: from any attack. And then of course generally you know,

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Speaker 11: it's been more than eight months and international inspectors who

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Speaker 11: had previously been verifying the state of the RUNS enriched

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Speaker 11: uranium on a weekly basis. They haven't had any access,

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Speaker 11: so questions have grown about the state of the RUNS

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Speaker 11: nuclear program. But what we see in the satellite images

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Speaker 11: is that it's certainly not a static.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 4: I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all

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Speaker 3: on Bloomberg day Break Europe.