WEBVTT - Nvidia Sparks Tech Rally; Haley Endorses Trump

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News. Good morning, I'm Nathan

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today.

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<v Speaker 2>Get another blowout order from Nvidia, the chip maker at

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<v Speaker 2>the center of the artificial intelligence boom, not only beat

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<v Speaker 2>earnings estimates, it also gave a bullish sales forecast, showing

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<v Speaker 2>AI computing spending remains strong. Chief Executive Officer Jensen Wang

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<v Speaker 2>stoked excitement with talk of the dawning of a new era.

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<v Speaker 3>The next Industrial Revolution has begun. Companies and countries are

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<v Speaker 3>partnering with Nvidia to shift the trillion dollar installed base

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<v Speaker 3>of traditional data centers to accelerated computing and build a

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<v Speaker 3>new type of data center AI factories to produce a

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<v Speaker 3>new commodity, artificial intelligence.

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<v Speaker 2>Nvidia CEO Jensen Wang also announced a ten for one.

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<v Speaker 1>Split, and Nathan that news is being cheered by investors,

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<v Speaker 1>and Vidia shares are among the most actively traded this morning.

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<v Speaker 1>Right now, they're trading above the thousand dollars level, up

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<v Speaker 1>six and a half percent. Dan Morgan is an analyst

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<v Speaker 1>with Sonovas Trust.

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<v Speaker 4>The ten for one stocksport is absolutely huge because like

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<v Speaker 4>Amazon and Google, and they both did twenty four one

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<v Speaker 4>stock sports. It really allows the retail investor to participate

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<v Speaker 4>more in terms of buying more shares, and it's a

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<v Speaker 4>psychological thing, but it does boost the.

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<v Speaker 5>Stock Sonova's trust.

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<v Speaker 1>Dan Morgan also notes that in Vidia boosted its quarterly

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<v Speaker 1>dividend by one hundred and fifty percent ten cents a share.

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<v Speaker 2>And Karen the Nvidia rallies helping lift other companies associated

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<v Speaker 2>with AI. Shares of super micro computer up about four percent,

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<v Speaker 2>Dell is hired by about five percent, Advanced micro Devices

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<v Speaker 2>with a gain of nearly three percent.

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<v Speaker 1>Well, we turned to the economy now, Nathan, and the

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<v Speaker 1>mantra higher for Longer has been reinforced.

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<v Speaker 5>By FED officials.

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<v Speaker 1>We get the very latest from Bloomberg's John Tucker John Karen.

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<v Speaker 6>Minutes from the last FED meeting show the participants not

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<v Speaker 6>only rallying around higher for Longer, but many question whether

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<v Speaker 6>policy was restrictive enough. Various officials mentioned a willingness to

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<v Speaker 6>tighten policy further if warranted. The FED policy makers pointed

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<v Speaker 6>to the possibility of high indust rates having a smaller

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<v Speaker 6>impact on the economy than in the past. They also

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<v Speaker 6>said the long run neutral rate that's the level of

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<v Speaker 6>rates that neither slows nor stimulates demand may be higher

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<v Speaker 6>than previously thought. Since the Fed's last meeting, consumer price

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<v Speaker 6>data has shown modest cooling, and while price growth remains

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<v Speaker 6>above the Fed's goal, the latest figures alleviate some concern

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<v Speaker 6>inflation is reaccelerating. John Tucker, Bloomberg Radio.

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<v Speaker 2>All right, John, thank you know. The Biden administration is

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<v Speaker 2>touting its independence from the FED. In a blog post,

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<v Speaker 2>White House economist cited research and historical data to make

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<v Speaker 2>the case that central bank's independence bolsters their credibility with

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<v Speaker 2>the public. The move comes amid heightened speculation over how

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<v Speaker 2>Donald Trump could ramp up pressure on the FED if

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<v Speaker 2>he wins another term in the White House.

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<v Speaker 1>Well, sticking with the Washington Nathan, we could see another

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<v Speaker 1>vote on immigration policy in the Senate today. Bloomberg's Ed

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<v Speaker 1>Baxter has the story.

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<v Speaker 7>Son of Majority Leader Chuck Schumer says he'll bring the

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<v Speaker 7>one House Speaker Mike Johnson refused to bring to the floor.

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<v Speaker 8>Will both sides come together to advance a bipartisan border

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<v Speaker 8>security bill?

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<v Speaker 5>All partisanship getting the way once again.

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<v Speaker 7>But a Republican Tom Tillo says Schumer may have miscalculated

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<v Speaker 7>the situation.

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<v Speaker 9>There were already no votes in his conference, So I mean,

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<v Speaker 9>it's just going to demonstrate that there was no path.

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<v Speaker 9>He knows that it's not going to go anywhere in

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<v Speaker 9>the House.

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<v Speaker 7>In any case, it is scheduled for today, Ed Baxter,

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<v Speaker 7>Bloomberg Radio.

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<v Speaker 2>All right, Ed, thank you. We have another big political

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<v Speaker 2>story already developing. Former President Trump's last remaining rival in

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<v Speaker 2>the Republican presidential race is now his latest supporter, Nicki Haley,

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<v Speaker 2>says she will vote for Trump in November. Bloomberg Zamy

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<v Speaker 2>Morris reports from Washington.

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<v Speaker 10>Haley, who challenged Donald Trump for the Republican nomination, is

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<v Speaker 10>the latest critic of the former president to back his

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<v Speaker 10>White House bid. As she told a gathering at the

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<v Speaker 10>Hudson Institute in Washington.

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<v Speaker 11>Trump has not been perfect on these policies. I've made

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<v Speaker 11>that clear many many times. But Biden has been a catastrophe.

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<v Speaker 11>So I will be voting for Trump.

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<v Speaker 10>Haley's endorsement of Trump is the latest sign of his

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<v Speaker 10>near total grip over the Republican Party. President Biden has

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<v Speaker 10>openly courted Haley's supporters to back his campaign in Washington.

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<v Speaker 10>Amy Morris Bloomberg radio.

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<v Speaker 1>All right, Amy, thanks, We'll be turned to politics overseas

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<v Speaker 1>now and there'll be a national election in the UK.

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<v Speaker 1>On July fourth, Prime Minister rishi's Sunat called for one

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<v Speaker 1>as his Conservative party faces the biggest challenge to its

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<v Speaker 1>fourteen year rule. In a statement outside Number ten Downing Street,

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<v Speaker 1>Sunak said the country needs clear leadership these uncertain times.

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<v Speaker 12>Cool for a clear plant. I'm bold action to chant

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<v Speaker 12>a cause to a secure future. You must choose in

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<v Speaker 12>this who has that plan, who is prepared to take

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<v Speaker 12>the bald action necessary to secure a better future for

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<v Speaker 12>our country and our children.

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<v Speaker 1>Rishi Sunak has seen support for his center right party

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<v Speaker 1>dwindle steadily. Meanwhile, Labor leader Kir Starmer kicked off his

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<v Speaker 1>own campaign, saying his party can put an end to

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<v Speaker 1>recent turmoil.

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<v Speaker 5>On the fourth of July.

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<v Speaker 2>You have the choice and together we can start the chaos.

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<v Speaker 9>We can turn the page.

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<v Speaker 12>We can start to rebuild Britain and change our country.

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<v Speaker 1>Kier Starmer's shadow Chancellor, says the Labor Party will campaign

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<v Speaker 1>and the economy, arguing that recent high inflation and lackluster

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<v Speaker 1>growth are the product of a conservative government.

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<v Speaker 2>Well back here in the US, Karen the next anti

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<v Speaker 2>trust fight could be coming at the will call window.

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<v Speaker 2>Bloomberg News has learned the Justice Department is joining with

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<v Speaker 2>a group of states to sue Live Nation Entertainment. More

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<v Speaker 2>from Bloomberg's Doug Krisner.

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<v Speaker 9>The violations are related to Ticketmaster's unrivaled control of concert

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<v Speaker 9>ticket sales. We are told to suit will seek remedies,

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<v Speaker 9>including breaking up Live Nation. Live Nation is the largest

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<v Speaker 9>US concert promoter. It merged with Ticketmaster back in twenty ten.

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<v Speaker 9>At that time, the DOJ allowed the deal to move

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<v Speaker 9>forward when Live Nation promised not to retaliate against concert

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<v Speaker 9>venues that opted against using Ticketmaster. Years later, the DOJ

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<v Speaker 9>found Live Nation had repeatedly violated that promise, so the

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<v Speaker 9>DOJ imposed an external monitor to investigate further allegations. In

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<v Speaker 9>New York, I'm Doug Prisner, Bloomberg.

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<v Speaker 1>Radio, all Right, doke thanks. Shares of Live Nation down

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<v Speaker 1>more than seven percent in early trading. On the flip side,

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<v Speaker 1>du Pont shares up more than three percent. DuPont plans

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<v Speaker 1>to split into three publicly traded companies. It joins a

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<v Speaker 1>list of industrial conglomerates seeking to boost returns by breaking

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<v Speaker 1>into smaller, more focused businesses. And it's time now for

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<v Speaker 1>a look at some of the other stories making news

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<v Speaker 1>in New York and around the world. For that, we're

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<v Speaker 1>joined by Bloomberg's Michael bar Michael, good morning.

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<v Speaker 8>Good morning Karon. For the second time this week, Penn

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<v Speaker 8>Station service was suspended because of fallen electrical wires. The

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<v Speaker 8>down overhead power lines brought the evening commute home to

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<v Speaker 8>a halt from many passengers laid yesterday. Both Amtrak and

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<v Speaker 8>New Jersey Transit were operating very limited service out of

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<v Speaker 8>Penn Station. Delays and cancelations could continue through this morning.

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<v Speaker 8>Twenty people remained in intensive care in Bangkok more than

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<v Speaker 8>twenty four hours after deadly turbulence hit a Singapore airline's

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<v Speaker 8>flight and forced the plane into an emergency landing. One

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<v Speaker 8>man was killed and dozens of other people were seriously

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<v Speaker 8>hurt after the flight from London to Singapore suddenly hit turbulence.

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<v Speaker 8>A workplace shooting in Pennsylvania left at least two people dead.

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<v Speaker 8>It happened Wednesday at an industrial linen company just outside Philadelphia,

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<v Speaker 8>when police say the suspect opened fire on co workers

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<v Speaker 8>with a handgun. Frightened employees described the chaotic scene le so.

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<v Speaker 13>You know, I turned around, he pulled a gun out

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<v Speaker 13>of his pocket and point Blake Rays.

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<v Speaker 14>Just like that.

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<v Speaker 8>Inspect fled driving home just miles away, where he was

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<v Speaker 8>pulled over and captured by authorities in front of his neighbors.

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<v Speaker 8>The Biden administration has a quote deep concern about the

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<v Speaker 8>closure of a key entry point for aid flowing into Gaza.

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<v Speaker 8>Israeli forces pushed into the southern city of Rafa earlier

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<v Speaker 8>this month, closing the crossing into Egypt. Secretary of State

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<v Speaker 8>Antity Blincoln.

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<v Speaker 5>Because of.

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<v Speaker 2>Combat activities around near and around the gate, the environment

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<v Speaker 2>for bringing the assistance in is really challenged.

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<v Speaker 8>Secretary Blincoln. Health officials confirm a second person in the

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<v Speaker 8>US has been infected with bird flu. The case was

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<v Speaker 8>confirmed in a Michigan farm worker who had regular exposure

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<v Speaker 8>to livestock infected bird flu. Michigan Health Department Chief Medical

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<v Speaker 8>Executive doctor Natasha Bagdasarian, the.

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<v Speaker 15>Risk to the general public remains low. We know that

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<v Speaker 15>with our current understanding of H five influenza and H

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<v Speaker 15>five influare ones are particularly in livestock, that there is

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<v Speaker 15>the risk for sporadic human cases, and that's what we've

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<v Speaker 15>seen at this time.

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<v Speaker 8>Doctor Bagdasarian says the first case of human bird flew

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<v Speaker 8>this year was confirmed in Texas and also linked to

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<v Speaker 8>Candle Global News twenty four hours a day and whenever

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<v Speaker 8>you wanted with the Bloomberg News. Now, I'm Michael Barr. This

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<v Speaker 8>is Bloomberg Heroon.

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<v Speaker 5>Hooray Michael Barr, thank you.

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<v Speaker 1>It's time now for the Bloomberg Sports Update with John

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<v Speaker 1>stash Hour.

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<v Speaker 5>John, good morning, Good morning, Karon.

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<v Speaker 16>Rangers and Panthers started an Eastern Conference final at the Garden.

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<v Speaker 16>Actually rare in the Stanley Cup playoffs when the top

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<v Speaker 16>two seeds the two division winners get this far. Florida

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<v Speaker 16>got a first period goal for Matthew Kitchuck. The game

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<v Speaker 16>stayed one nothing for the next thirty nine minutes.

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<v Speaker 17>Counted a Rangers territory Sstorking Well out to play this one.

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<v Speaker 17>David writes a for Hackey along the farboards for Hackey,

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<v Speaker 17>come fo tip Hooker Reacher, they store Carniver Hagey center.

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<v Speaker 17>It went off for Raacher and the Panthers have a

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<v Speaker 17>tune up lead with three forty eight to play.

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<v Speaker 16>On WQAM and Miami Panthers added empty nt A one,

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<v Speaker 16>three nothing Sergei Babroski twenty three. Saints didn't face a

0:10:09.200 --> 0:10:11.800
<v Speaker 16>single Rangers shot for a fourteen and a half minute

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<v Speaker 16>stretch to the second period. Rangers, after winning their first

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<v Speaker 16>seven playoff games, are one and three since in their

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<v Speaker 16>last two at home, they've been outscored seven to one.

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<v Speaker 16>Game two at MSG tomorrow night. The Devil's hired a

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<v Speaker 16>new coach, Sheldon Keef. He just got fired in Toronto

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<v Speaker 16>NBA West Finals Game one to Dallas. The MAVs got

0:10:29.760 --> 0:10:32.040
<v Speaker 16>thirty three points from Luca don Since he had fifteen

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<v Speaker 16>in the fourth quarter. Kyrie Irving scored thirty the MAVs

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<v Speaker 16>one at Minnesota one O eight, one oh five. It's

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<v Speaker 16>the East Tonight, Celtics Game two with Indiana. Boston won

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<v Speaker 16>the opening. Yankees hosting Seattle after two losses to the

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<v Speaker 16>Mariners Yanks one seven to three. Is won Soto homer

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<v Speaker 16>twice and Aaron's Judge once, and both have now hit

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<v Speaker 16>fourteen homers on the season. Series ends this afternoon. Mets

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<v Speaker 16>are off started ten game homestan tomorrow. They just got

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<v Speaker 16>swept in Cleveland. Met's had a three nothing sixt in league,

0:10:59.400 --> 0:11:02.040
<v Speaker 16>lost six the three mets of six and fourteen in May,

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<v Speaker 16>Phillies have the best fifty game start to any once.

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<v Speaker 13>It's two thousand and one.

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<v Speaker 7>John Stashewer Bloomberg.

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<v Speaker 13>Sports Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

0:11:14.840 --> 0:11:17.760
<v Speaker 13>and around the world on Bloomberg dot Com and the

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<v Speaker 13>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning, I'm Nathan Hager. Nvidia delivered for the fifth

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<v Speaker 2>quarter in a row. The chip maker at the center

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<v Speaker 2>of the artificial intelligence boom came through with an earnings beat,

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<v Speaker 2>a forecast for even further growth, and to top it

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<v Speaker 2>all off, ten for one stock split. So let's get

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<v Speaker 2>more on these results.

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<v Speaker 8>Now.

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<v Speaker 2>We are joined by Matthew Bryson, Senior vice president of

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<v Speaker 2>Equity Research at Webbush Securities. Matthew, good morning. I'm going

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<v Speaker 2>to ask you the cliche question and ask you to

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<v Speaker 2>take it literally. What's not to like about Nvidia's results.

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<v Speaker 14>Honestly, there's nothing not to like. They gave us a

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<v Speaker 14>great guide, they gave us great results. They told us

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<v Speaker 14>that they couldn't meet demand. They told us they likely

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<v Speaker 14>can't meet demand for another until midway through next year

0:12:11.160 --> 0:12:13.360
<v Speaker 14>or beyond that well into next year, I think, is

0:12:13.400 --> 0:12:16.240
<v Speaker 14>what Jensen said, So there's nothing not for leng.

0:12:17.280 --> 0:12:23.120
<v Speaker 2>How much is this growth that the CEO has continued

0:12:23.120 --> 0:12:26.520
<v Speaker 2>to forecast for these last several quarters going to hinge

0:12:26.720 --> 0:12:32.400
<v Speaker 2>on suppliers like Taiwan Semiconductor meeting demand that Wang is

0:12:32.440 --> 0:12:35.880
<v Speaker 2>admitting is going to outstrip supply for quite some time.

0:12:37.600 --> 0:12:42.200
<v Speaker 14>I certainly in the near term it's it's an issue,

0:12:42.360 --> 0:12:44.880
<v Speaker 14>right They told you during the call they couldn't get

0:12:44.920 --> 0:12:48.040
<v Speaker 14>as many networking products out as they would have liked

0:12:48.480 --> 0:12:53.559
<v Speaker 14>because of supply constraints. I think with their newer chips

0:12:53.880 --> 0:12:57.439
<v Speaker 14>they need a new generation of high bandwidth memory. High

0:12:57.480 --> 0:13:01.880
<v Speaker 14>bendwith memory has bent tight. That new iteration HBM three

0:13:01.960 --> 0:13:04.760
<v Speaker 14>E is even tighter, so that's going to be a

0:13:04.760 --> 0:13:07.079
<v Speaker 14>constraining factor. So I think at least in the near

0:13:07.160 --> 0:13:11.040
<v Speaker 14>term it's a problem. Longer term, suppliers will figure out

0:13:11.040 --> 0:13:12.240
<v Speaker 14>ways to enable and video.

0:13:13.000 --> 0:13:15.920
<v Speaker 2>And you point out in your note that the video

0:13:16.000 --> 0:13:19.480
<v Speaker 2>broke out networking as a line item for the first time.

0:13:19.480 --> 0:13:22.599
<v Speaker 2>What stands out to you in terms of the networking

0:13:22.760 --> 0:13:24.280
<v Speaker 2>aspect of Nvidia's business.

0:13:25.760 --> 0:13:30.400
<v Speaker 14>So I think what's what's really interesting is they took

0:13:32.120 --> 0:13:38.600
<v Speaker 14>this business from Melanox that was relatively small. Now they've

0:13:38.600 --> 0:13:41.920
<v Speaker 14>grown it to a size where it's comparable, if not

0:13:42.040 --> 0:13:47.360
<v Speaker 14>larger than something like Arista. And they're not a networking company, right,

0:13:47.400 --> 0:13:53.400
<v Speaker 14>they're a GPU company. I think in the near term

0:13:53.880 --> 0:13:57.600
<v Speaker 14>them telling you that networking was constrained in the court

0:13:57.679 --> 0:14:01.520
<v Speaker 14>they just reported, but it's getting better better this quarter.

0:14:01.679 --> 0:14:04.200
<v Speaker 14>I mean, that's just another tailwind for them, right where

0:14:04.280 --> 0:14:07.560
<v Speaker 14>revenue that they weren't able to ship last quarter ships

0:14:07.559 --> 0:14:08.000
<v Speaker 14>this quarter.

0:14:09.400 --> 0:14:11.280
<v Speaker 2>Obviously, there's a lot of attention as well on the

0:14:11.320 --> 0:14:13.719
<v Speaker 2>announcement of the ten for one stock split in the

0:14:13.760 --> 0:14:17.120
<v Speaker 2>pre market right now, we're seeing in Vidia shares trading

0:14:17.240 --> 0:14:20.760
<v Speaker 2>above your price target of one thousand dollars. Where do

0:14:20.800 --> 0:14:23.920
<v Speaker 2>you see the stock going now with a split on

0:14:23.960 --> 0:14:26.440
<v Speaker 2>the way?

0:14:26.880 --> 0:14:28.360
<v Speaker 14>So, I mean it splits on it is a good

0:14:28.400 --> 0:14:32.720
<v Speaker 14>thing in the sense that you have investors that couldn't

0:14:32.840 --> 0:14:37.760
<v Speaker 14>get involved because the stock was simply too pricing. Now

0:14:37.960 --> 0:14:41.320
<v Speaker 14>that enables those investors. I mean to some extent, it's

0:14:41.320 --> 0:14:44.200
<v Speaker 14>a question of supplied demand, right, you have more demand.

0:14:44.240 --> 0:14:45.320
<v Speaker 14>It's a good thing for the stock.

0:14:47.040 --> 0:14:50.280
<v Speaker 2>So do you raise your target? You want to make

0:14:50.280 --> 0:14:51.760
<v Speaker 2>some news this morning.

0:14:53.680 --> 0:14:57.000
<v Speaker 14>I again talk about where my price target goes until

0:14:57.000 --> 0:14:58.960
<v Speaker 14>I put out a note talking about where my price

0:14:59.000 --> 0:15:02.840
<v Speaker 14>target goes. But I mean certainly what they told us.

0:15:03.480 --> 0:15:08.840
<v Speaker 14>It lifts numbers beyond where my current model is, and

0:15:08.920 --> 0:15:12.120
<v Speaker 14>so whenever I come out with a report, my new

0:15:12.160 --> 0:15:14.960
<v Speaker 14>model has to reflect that changes to their guide.

0:15:16.040 --> 0:15:19.080
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