Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with Video CEO Jensen Wang has announced
Speaker 3: a range of new chips, software and services as the
Speaker 3: company looks to maintain its lead in artificial intelligence. Jensen
Speaker 3: Wong spoke to a packed arena at the opening of
Speaker 3: the Consumer Electronics Show in Las Vegas.
Speaker 1: And so when you.
Speaker 4: See application after applications that are AI driven AI native
Speaker 4: at the core of it, this fundamental concept is there.
Speaker 4: Machine learning has changed how every application is going to
Speaker 4: be built, how computing will be done, and the possibilities beyond.
Speaker 3: And you can hear more from Nvidia CEO Jensen Wang
Speaker 3: later this morning. We're going to speak live with the
Speaker 3: CEO in Las Vegas, and you can catch that conversation
Speaker 3: at eleven thirty this morning, Wall Street Time on Bloomberg
Speaker 3: Radio and Television.
Speaker 2: Well, Nathan Wongs and Vidia begins the day at an
Speaker 2: all time high. The stocks surged almost three and a
Speaker 2: half percent yesterday. Lorie Calvasina, the head of US equity
Speaker 2: strategy at RBC Capital Market, says it is a key
Speaker 2: for the markets for other stocks to participate in the rally.
Speaker 5: Look, I think a lot of people want this market
Speaker 5: to broaden out. You can count myself in that camp.
Speaker 5: That being said, I think we have to understand why
Speaker 5: we have had so many head fakes so far, and
Speaker 5: it is simply because the value part of the market,
Speaker 5: the rest of the SMP, whatever you want to call it,
Speaker 5: has just not put up superior earnings growth.
Speaker 2: RBC's Lori Calvasina notes a gauge of the Magnificent seven
Speaker 2: mega caps outperform the broader markets, climbing two percent.
Speaker 3: Well, another major market story we're following this morning, Karen
Speaker 3: involves geo politics. The US is targeting the world's biggest
Speaker 3: gaming publisher and the top electric vehicle battery maker. In
Speaker 3: a surprise move of weeks before Donald Trump takes office,
Speaker 3: The Pentagon has blacklisted ten Cent Holdings Contemporary Amprex Technology,
Speaker 3: or CATL for alleged links to the Chinese military. We
Speaker 3: get more from Bloomberg's Rebekka Chung Wilkins in Hong Kong.
Speaker 6: It's this Pentagon list of companies with these alleged links
Speaker 6: to the Chinese military doesn't actually necessitate any kind of
Speaker 6: actual sanctions or immediate restrictions on these companies. But it
Speaker 6: is essentially a form of sort of discouragement to US
Speaker 6: entities and to US companies from dealing business or trading
Speaker 6: these names. So you know, we'll really wait to see
Speaker 6: whether the long term consequences followed through. Important to note
Speaker 6: that Tencent, among those other names, have pushed back quite
Speaker 6: firmly on this allegation. They say that their inclusion on
Speaker 6: this list is a mistake.
Speaker 3: Bloomberg's Rebecca Chung Wilkins says China's Foreign ministry is vowing
Speaker 3: to defend its company's rights.
Speaker 2: Meanwhile, Nathan Treasury Secretary Janet Yellen Hares raised serious concern
Speaker 2: about malicious cyber activity, which China's Vice Premier Hali Fog
Speaker 2: the Treasury Department serves the t leaders meant virtually yesterday,
Speaker 2: and Yellen Warren of consequences for Chinese companies that support
Speaker 2: Russia's war in Ukraine, as well as Chinese industrial over
Speaker 2: capacity that she says is harming US business. The exchange
Speaker 2: comes a week after the US said Chinese state sponsored
Speaker 2: hackers had reached about.
Speaker 7: One hundred Treasury Department computers.
Speaker 2: It's likely to be Yellen's final direct contact with the
Speaker 2: Chinese government and Karen.
Speaker 3: We continue to follow the political turmoil in Canada. Hours
Speaker 3: after Justin Trudeau announced his plans to resign as Prime Minister,
Speaker 3: Mark Karney, former Governor of the Bank of England and
Speaker 3: Bank of Canada, said he's considering entering the race to
Speaker 3: be Canada's new leader. Carney is currently chair of Bloomberg's.
Speaker 7: Board of Directors.
Speaker 3: He says he is encouraged by support from Liberal Party
Speaker 3: lawmakers and backers. Yesterday, Trudeau cited his own inability to
Speaker 3: unite the Liberal Party.
Speaker 8: I have always been driven by my love for Canada,
Speaker 8: by my desire to serve Canadians, and by what is
Speaker 8: in the best interests of Canadians, and Canadians deserve a
Speaker 8: real choice in the selection, and it has become obvious
Speaker 8: to me with the internal battles, that I cannot be
Speaker 8: the one to carry the Liberal standard into the next selection.
Speaker 3: Justin Trudeau will remain Canada's Prime Minister until a new
Speaker 3: leader is selected, that will likely be in March.
Speaker 2: Well, Nathan, with less than two weeks until Donald Trump
Speaker 2: returns to the White House, the President elect is making
Speaker 2: a move to keep these special counsels repoored against him
Speaker 2: from becoming public. Trump's lawyers are asking a federal judge
Speaker 2: in Florida at a blog Attorney General Merrick Garland from
Speaker 2: releasing Jack Smith's final report in the classifying documents case.
Speaker 2: They say it accuses the president elect of engaging in
Speaker 2: an unprecedented criminal effort, and there's reason to believe Garland
Speaker 2: plans to release it within the next few days. The
Speaker 2: filing confirmed Smith is close to finalizing and may have
Speaker 2: already finished his report. Smith dropped his case against Trump
Speaker 2: after the election, citing long standing Justice Department policy against
Speaker 2: prosecuting sitting presidents.
Speaker 3: M Karen, a big supporter of Donald Trump, has been
Speaker 3: added to the board at Meta Platforms. It's Dana White,
Speaker 3: the CEO of Ultimate Fighting Championship. White is a friend
Speaker 3: of Meta CEO Mark Zuckerberg. He has expanded UFC into
Speaker 3: one of the world's most popular sports and entertainment businesses.
Speaker 3: Zuckerberg is an avid mixed martial arts fan and recreational fighter.
Speaker 2: Well Nathan, a US doc workers union and their employer
Speaker 2: group will meet today with just over a week to
Speaker 2: hammer out a deal on a new labor contract, and
Speaker 2: let's find out more with the Bloomberg said John Tucker
Speaker 2: and John, here we go again.
Speaker 9: Yeah, potentially, Karen. The International Longshoreman's Association and the US
Speaker 9: Maritime Alliance are meeting in New Jersey. They're going to
Speaker 9: try to negotiate a new labor contract with a deadline
Speaker 9: of January fifteenth, to avoid a strike that could halt
Speaker 9: half the country's container volumes. The main point of contention
Speaker 9: the use of semi automated cranes at port terminals, with
Speaker 9: the USMX seeking to improve productivity. Now you'll recall back
Speaker 9: in early October, the ISLA reached a tentative deal on
Speaker 9: a sixty two percent wage increase over six years that
Speaker 9: suspended a three day strike but left the technology issue unresolved.
Speaker 9: Retailers like Home Depot, Dollar General, and Gap say, with
Speaker 9: just ten days until the deadline for an agreement, they're
Speaker 9: now implementing contingency plans at working to try to keep
Speaker 9: inventory moving and limit the impact of any strike on consumers.
Speaker 9: You know, York, I'm John Tucker, Bloomberg Radio.
Speaker 2: It's time now for a look at some of the
Speaker 2: other stories making news in New York and around the world.
Speaker 2: And for that we're joined by Bloomberg's Michael Barr Michael,
Speaker 2: good Morning.
Speaker 10: Good Morning Karen. In New Orleans, What Peace, President Joe
Speaker 10: Biden attended a prayer service to offer condolences and pledge
Speaker 10: federal support to the families of the victims of the
Speaker 10: New Year's Day attack. Biden was accompanied by the First
Speaker 10: Lady and other officials.
Speaker 11: IM wife Jill, and I here to stand with you,
Speaker 11: agree with you, to pray with you. Let you know
Speaker 11: you are not alone. The rest of the nations looking
Speaker 11: at you as well.
Speaker 10: Biden promised to make every resource available to complete the
Speaker 10: investigation and provide additional security for upcoming events in the city.
Speaker 10: The attack along Bourbon Street, which killed fourteen people and
Speaker 10: injured over thirty, is believed to have been carried out
Speaker 10: by a lone individual inspired by ISIS, who was killed
Speaker 10: in a shootout with police. A strong earthquake has shaken
Speaker 10: a mountainous region in western China near Nepal, killing at
Speaker 10: least fifty three people. More than sixty others were hurt.
Speaker 10: China says the earthquake registered to magnitude six point eight.
Speaker 10: The epicenter was about fifty miles northeast of Mount Everest,
Speaker 10: which straddles the border. Today is catch up day for
Speaker 10: US airlines, as this week's winter weather has led to
Speaker 10: thousands of flight cancelations and delays. Kathleen Bangs is with
Speaker 10: flight tracking company flight Aware.
Speaker 12: What we saw, We're over four thos thousand flights canceled
Speaker 12: Sunday and Monday, and delayed flights almost up to twenty thousand.
Speaker 12: That sounds like a lot. We've had winter storms, however,
Speaker 12: where they were far worse, but this is definitely the
Speaker 12: most impactful that we've seen so far this winter season.
Speaker 10: Flying Aware, as Kathleen bang says, today winds are going
Speaker 10: to be gusting potentially up to forty five or fifty
Speaker 10: miles an hour, slowing down ground operations. Meanwhile, bitter cold
Speaker 10: will hit the southern US today. Finally, Donald Trump is
Speaker 10: nominated to state court judge from Long Island to be
Speaker 10: US Attorney for the Eastern District of New York. Trump
Speaker 10: says Joseph Nocella Junior served as a district judge in
Speaker 10: Nassau County. If confirmed, he would replace Breon Peace, a
Speaker 10: Brooklyn native, who was appointed by US Attorney and then
Speaker 10: President Joe Biden in twenty twenty one. Global news twenty
Speaker 10: four hours a day and whatever you want it with
Speaker 10: Bloomberg News Now. I'm Michael Barr.
Speaker 7: This is Bloomberg Karen Orry, Malchael Barr. Thank you.
Speaker 2: Time now for the Bloomberg Sports Update, brought to you
Speaker 2: by Try State Outy. Here's John Stanshawer, John, good morning.
Speaker 10: Good morning.
Speaker 13: Carry. Three NFL teams, the Jets, Bears, and Saints, fired
Speaker 13: their coach during the season. Two others, the Patriots and Jaguars,
Speaker 13: have let their coach go since the season ended, but
Speaker 13: the Giants are sticking with Brian day Ball Angela manager
Speaker 13: Joe Shane, despite a three and fourteen nightmare season, most
Speaker 13: losses in the one hundred year history of the team.
Speaker 13: Owner John Mara cited that it was only two years
Speaker 13: ago the day Ball was coach of the Year, said
Speaker 13: he liked Shane's most recent draft class. He admitted his
Speaker 13: decision would not be popular in what he called Giants Land.
Speaker 13: There had been two straight home games where a plane
Speaker 13: was rented carrying a sign imploring Marat to clean house.
Speaker 14: I didn't need planes flying over me to tell me
Speaker 14: how upset the fans are. I hear from them every day,
Speaker 14: so that really did not have much of an effect.
Speaker 14: I get how upset they are. I try to respond
Speaker 14: to them. Nobody was more upset than I am about
Speaker 14: how we performed in recent years. And yeah, I have
Speaker 14: to stand up here and take the heat for that.
Speaker 13: Marri admit of the Giants need to find a quarterback
Speaker 13: Sead It's up to Sane and Davil to do that.
Speaker 13: Another team that may fire its coach is Dallas. Mike
Speaker 13: McCarthy says he wants to stay. His contract expires next
Speaker 13: week so he could become a free agent coach. Chicago
Speaker 13: reportedly wants to interview McCarthy. The Jets talking to several candidates,
Speaker 13: including Rex Ryan. He was the Jets head coach the
Speaker 13: last time they went to the playoffs, back in twenty
Speaker 13: ten at the Garden, bad loss of the Knicks, though
Speaker 13: they were without Karl Anthony Towns to a knee injury,
Speaker 13: Orlando was without its top four scorers, had already lost
Speaker 13: the Knicks three times this season. The Magic one one
Speaker 13: oh three ninety four Knicks made only four of twenty
Speaker 13: two three pointers nets at Barkley's lost to Indiana won
Speaker 13: thirteen ninety nine Devils. The three to two win at
Speaker 13: Seattle Capitol's loss of a shootout at Buffalo Rutgers beaten
Speaker 13: by Wisconsin seventy five sixty three, The Mets announced they
Speaker 13: will retire David Wrights number five. On July nineteen, John
Speaker 13: stash that we're Bloomberg Sports Karen need.
Speaker 1: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 10: Good morning.
Speaker 3: I'm Nathan Hager. The company that has been at the
Speaker 3: forefront of artificial intelligence architecture for a couple of years
Speaker 3: now is looking to cement that position for years to come.
Speaker 3: And Nvidia CEO Jensen Wong unveiled a range of new chips,
Speaker 3: software and services in front of a packed audience last
Speaker 3: night at the CES trade show in Las Vegas, including
Speaker 3: an update to the processor for in Nvidia's traditional customer
Speaker 3: base of gamers.
Speaker 7: The g Force.
Speaker 4: G Force enabled AI to reach the masses, and now
Speaker 4: AI is coming home to g Force.
Speaker 7: And for more.
Speaker 3: And what we heard last night from Nvidia and it's
Speaker 3: CEO Jensen Wang. We're pleased to be joined this morning
Speaker 3: by Bloomberg's Tom Mackenzie, Tom, good morning. G Force was
Speaker 3: really just the tip of the iceberg? Was it a
Speaker 3: Jensen Wong gave a lot for investors to chew on.
Speaker 10: Yeah.
Speaker 15: Look he stood there on the stage and is in
Speaker 15: his sparkly leather jacket and not there to vegas. It
Speaker 15: was a pass packed auditorium as you can imagine the
Speaker 15: keynote speaker and as you say, look he hit on
Speaker 15: a number of different topics and a number of different
Speaker 15: unveils as well for the business. So yes, G Forces,
Speaker 15: as you mentioned as well, a bit of a nod
Speaker 15: back to back to the past the foundations of that
Speaker 15: business of course, and video starting thirty years ago or
Speaker 15: so as a gaming company building chips for gaming, and
Speaker 15: then of course those were repurposed for AI. As we know,
Speaker 15: the G Force is interestingly built on AI infrastructure now,
Speaker 15: the Blackwell infrastructure, so that the proposition is will supercharge gaming.
Speaker 15: So if you're a hardcore gamer, that's good news. They
Speaker 15: get about ten billion eleven billion US dollars in terms
Speaker 15: of revenues from gaming, still so not insignificant, but pales
Speaker 15: and comparison in terms of what they get in terms
Speaker 15: of revenues from the data center of the business with
Speaker 15: those AI accelerators, that's expected to be about one hundred
Speaker 15: billion this year in terms of revenues, but nonetheless still
Speaker 15: a significant component is gaming. There was also the software
Speaker 15: piece as well, and it's a reminder that in Vida
Speaker 15: doesn't just do the hardware, doesn't just do the chips,
Speaker 15: it does the software around as well, with Kuda for example,
Speaker 15: that accompanies those black Well chips. But they also announced
Speaker 15: a foundation model in terms of helping developers to start
Speaker 15: to embed AI into physical property, so robots and cars,
Speaker 15: and that was a big push by Jensen Wang. He's
Speaker 15: obviously looking for other segments to grow the business, and
Speaker 15: he thinks that physical AI is going to be quote
Speaker 15: a multi trillion dollar opportunity for his business and others
Speaker 15: within the space.
Speaker 3: Yeah, the aspect of that was really interesting, particularly with
Speaker 3: this partnership that Jensen Wang announced last night with Toyota
Speaker 3: on self driving cars, particularly when we're hearing from a
Speaker 3: number of analysts now saying that Tesla is a pure
Speaker 3: AI play. This could put in Vidio into even further
Speaker 3: direct competition in the self driving vehicle space.
Speaker 15: Absolutely, and you just see every time Jensen Wong mentions
Speaker 15: a partner company. You see the move in the stopples.
Speaker 15: You saw that Media Tech. You saw that with Toyota.
Speaker 15: As you said that rallied on the back of this news.
Speaker 15: So they're going to be partnering. We're Toyota. Autonomous Vehicles
Speaker 15: is going to be part of the person you can
Speaker 15: see your future where your interactions with your car are
Speaker 15: going to be much more seamless. They're going to be,
Speaker 15: for example, doing things like facial recognition make sure you're
Speaker 15: not falling asleep, but the wheel giving you more updated
Speaker 15: data in terms of driving conditions, the road surface, all
Speaker 15: that kind of thing as part of that autonomous driving
Speaker 15: package as well. Obviously you won't be driving, it will
Speaker 15: be autonomous, but you'll be sitting. They're making sure that
Speaker 15: things stay stay on track. In terms of what else
Speaker 15: happens with the embed of AI generitive AI into some
Speaker 15: of these physical attributes. Bank of America you nodded to
Speaker 15: some of the concerns, maybe some of the cautionary notes
Speaker 15: coming through from an as Bank of America saying, look,
Speaker 15: you've got they've got to make sure that they are
Speaker 15: cheap enough. These propositions that the components they're building around
Speaker 15: embedding AI into robotics and autonomous cars. They're going to
Speaker 15: be cheap enough, pervasiveness and efficient enough to really be
Speaker 15: a new business proposition for in video. So maybe that's
Speaker 15: still a question mark for them, but clearly this is
Speaker 15: a CEO and a team that's determined to push beyond
Speaker 15: data centers to continue that growth.
Speaker 3: Last minute time, with this vision laid out last night,
Speaker 3: how important was it for Jensen Wang to overperform in
Speaker 3: terms of what the market's looking for, particularly after that
Speaker 3: last earnings report that seemed to underwhelm investors.
Speaker 15: There's always a mismatch. Always there has been a mismatch,
Speaker 15: hasn't there in terms of the concern has been There's
Speaker 15: going to be a mismatch in terms of the expectations
Speaker 15: from the markets versus what has delivered. And of course,
Speaker 15: in historic recent quarters, bar that one the most recent quarter,
Speaker 15: Nvidia managed to outperform those expectations. Now the expectations are
Speaker 15: just so so high for many analysts, they're saying that
Speaker 15: is the concern. How does Nvidia continue to meet those
Speaker 15: meet those expectations. Microsoft delayed some of those fears, of course,
Speaker 15: a couple of days ago when it announced it was
Speaker 15: going to be spending about eighty billion US dollars on
Speaker 15: data centers just this year alone, and of course Nvidia
Speaker 15: will be a key part of that build out and
Speaker 15: that spend and SATI in the Della speaking in India
Speaker 15: earlier today, talked about the partnership between Microsoft and Nvidia,
Speaker 15: but also the partnership between Microsoft and AMD, and that's
Speaker 15: where the competitive question comes into play. For Nvidia, AMD
Speaker 15: still only has a marginal slice and fraction of the
Speaker 15: market share when it comes to AI accelerators, but they
Speaker 15: are obviously determined to kind of close that gap, and
Speaker 15: obviously a number of their customers and videous customers the
Speaker 15: hyperscale is already spending on R and D develop their
Speaker 15: own chips, and that underscores gentle One's distermination to go
Speaker 15: beyond data centers into sovereign AI and now increasingly into
Speaker 15: quote unquote physical AI.
Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories
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Speaker 7: I'm Karen Moscow and I'm Nathan Hager.
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