1
00:00:02,400 --> 00:00:11,080
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

2
00:00:11,160 --> 00:00:14,200
Speaker 1: dayba Q podcast, available every morning on Apple, Spotify or

3
00:00:14,240 --> 00:00:17,040
Speaker 1: wherever you listen. It's Thursday, the twenty third of May

4
00:00:17,079 --> 00:00:18,799
Speaker 1: in London. I'm Caroline Hepki.

5
00:00:18,680 --> 00:00:21,800
Speaker 2: And I'm Stephen Carroll. Coming up today, Rishi Sinac gambles

6
00:00:21,800 --> 00:00:24,360
Speaker 2: it all on a summer election. As inflation in the

7
00:00:24,440 --> 00:00:26,759
Speaker 2: UK cools and growth picks up.

8
00:00:26,800 --> 00:00:30,040
Speaker 1: UK ministers question the decision to call a vote amid

9
00:00:30,080 --> 00:00:32,360
Speaker 1: a huge polling gap with labor.

10
00:00:32,760 --> 00:00:36,400
Speaker 2: And leveling up, and Vidia delivers on the AI hype

11
00:00:36,400 --> 00:00:39,040
Speaker 2: with yet another blowout sales forecast.

12
00:00:39,240 --> 00:00:41,320
Speaker 1: Let's start with a roundup of our top stories.

13
00:00:41,960 --> 00:00:44,519
Speaker 2: The Prime Minister, Rishi Scenac, has named the date of

14
00:00:44,560 --> 00:00:47,600
Speaker 2: the next UK election as the fourth of July. Voters

15
00:00:47,600 --> 00:00:49,760
Speaker 2: will head to the polls, months before many in his

16
00:00:49,880 --> 00:00:54,160
Speaker 2: Conservative Party expected. In a statement outside Number ten, Downing Street,

17
00:00:54,160 --> 00:00:56,040
Speaker 2: he said the country needs clear leadership.

18
00:00:56,480 --> 00:00:59,840
Speaker 3: These uncertain times call for a clear, plant and bold

19
00:01:00,560 --> 00:01:03,360
Speaker 3: to chart a course to a secure future. You must

20
00:01:03,440 --> 00:01:06,600
Speaker 3: choose in this election who has that plan, Who is

21
00:01:06,640 --> 00:01:09,840
Speaker 3: prepared to take the bald action necessary to secure a

22
00:01:09,880 --> 00:01:12,479
Speaker 3: better future for our country and our.

23
00:01:12,440 --> 00:01:16,000
Speaker 2: Children Richi's Scenac speaking there in the rain as this

24
00:01:16,040 --> 00:01:20,240
Speaker 2: announcement was partly drowned out by protesters playing Labour's nineteen

25
00:01:20,319 --> 00:01:24,039
Speaker 2: ninety seven victory anthem things can only get better. Labor

26
00:01:24,120 --> 00:01:27,039
Speaker 2: leader Kiir Starmer kicked off his own campaign, saying his

27
00:01:27,160 --> 00:01:30,240
Speaker 2: party can put an end to recent turmoil.

28
00:01:31,680 --> 00:01:34,120
Speaker 4: On the fourth of July. You have the choice and

29
00:01:34,200 --> 00:01:38,080
Speaker 4: together we can stop the chaos. We can turn the page.

30
00:01:38,360 --> 00:01:43,360
Speaker 4: We can start to rebuild Britain and change our country well.

31
00:01:43,400 --> 00:01:47,760
Speaker 1: The election announcement shocked Westminster, with Bloomberg learning even to

32
00:01:47,920 --> 00:01:51,760
Speaker 1: Nak's own chancellor was blindsided by the decision. Many had

33
00:01:51,840 --> 00:01:55,320
Speaker 1: expected a wait until November in the hope that improving

34
00:01:55,360 --> 00:01:59,760
Speaker 1: economic data would boost public sentiment. Bloomberg's James Wilcock has

35
00:01:59,840 --> 00:02:00,280
Speaker 1: more now.

36
00:02:01,320 --> 00:02:04,800
Speaker 5: Rushie Sunac has long said any election would come in

37
00:02:04,840 --> 00:02:08,120
Speaker 5: the second half of the year, but even his own

38
00:02:08,280 --> 00:02:11,080
Speaker 5: cabinet was stunned to find out that meant the fourth

39
00:02:11,160 --> 00:02:15,040
Speaker 5: of July. Woman Sir Tod Bloomberg the timing was terrible,

40
00:02:15,280 --> 00:02:18,560
Speaker 5: with another suggesting Sunak had given up. The move has

41
00:02:18,600 --> 00:02:21,280
Speaker 5: wiped out any prospect of the current government giving an

42
00:02:21,320 --> 00:02:24,680
Speaker 5: autumn fiscal statement or tax cuts, which many in the

43
00:02:24,720 --> 00:02:28,080
Speaker 5: party had hoped for. A host of other legislation is

44
00:02:28,200 --> 00:02:32,640
Speaker 5: also left unfinished, including Sunak's smoking ban, something he lifted

45
00:02:32,760 --> 00:02:35,840
Speaker 5: as one of his key achievements in his speech yesterday

46
00:02:36,120 --> 00:02:38,400
Speaker 5: in London James Wilcock Bloomberg Radio.

47
00:02:39,040 --> 00:02:42,760
Speaker 2: As the political parties begin their campaigns, pulling aggregator Britain

48
00:02:42,840 --> 00:02:46,320
Speaker 2: Elects puts the Labor Party more than twenty points ahead

49
00:02:46,400 --> 00:02:50,359
Speaker 2: of the Conservatives in polling. However, one glimmer for sunac

50
00:02:50,480 --> 00:02:54,079
Speaker 2: came in the BBC's projected national vote share after their

51
00:02:54,160 --> 00:02:56,960
Speaker 2: recent after the recent local elections that put Labor on

52
00:02:57,080 --> 00:02:59,880
Speaker 2: thirty four percent in a general election and the Tories

53
00:03:00,200 --> 00:03:03,840
Speaker 2: twenty five percent. Well, that's still a nine point deficit,

54
00:03:03,880 --> 00:03:07,240
Speaker 2: it significantly lower than other polls. Meanwhile, Britain and acxis

55
00:03:07,280 --> 00:03:10,079
Speaker 2: aggregated poles for the other political parties that puts Reform

56
00:03:10,200 --> 00:03:13,240
Speaker 2: at almost twelve percent, the Liberal Democrats at ten percent,

57
00:03:13,520 --> 00:03:16,880
Speaker 2: and the Greens at six percent, so that in.

58
00:03:16,840 --> 00:03:19,520
Speaker 1: The UK, let's move on though and talk about results.

59
00:03:19,520 --> 00:03:23,080
Speaker 1: In Vidia has delivered a bullish sales forecast for the

60
00:03:23,080 --> 00:03:25,640
Speaker 1: coming months, driving shares up as much as seven point

61
00:03:25,680 --> 00:03:29,160
Speaker 1: eight percent in extended trading. The chip maker at the

62
00:03:29,200 --> 00:03:33,320
Speaker 1: center of the artificial intelligence boom now expect second quarter

63
00:03:33,440 --> 00:03:37,400
Speaker 1: revenue of around twenty eight billion dollars, and CEO Jensen

64
00:03:37,440 --> 00:03:41,400
Speaker 1: Wong isn't pushing back on the lofty expectations, calling it

65
00:03:41,440 --> 00:03:42,800
Speaker 1: the dawning of a new era.

66
00:03:43,680 --> 00:03:48,560
Speaker 6: The next industrial revolution has begun. Companies and countries are

67
00:03:48,560 --> 00:03:52,560
Speaker 6: partnering with Nvidia to shift the trillion dollar installed base

68
00:03:52,640 --> 00:03:56,920
Speaker 6: of traditional data centers to accelerated computing and build a

69
00:03:57,000 --> 00:04:00,400
Speaker 6: new type of data center AI factories to produce a

70
00:04:00,560 --> 00:04:03,080
Speaker 6: new commodity, artificial intelligence.

71
00:04:04,000 --> 00:04:07,720
Speaker 1: The upbeat outlook from Jensen Wong's company reinforces in Vidia's

72
00:04:07,720 --> 00:04:11,600
Speaker 1: status as the biggest beneficiary of the AI boom. The

73
00:04:11,600 --> 00:04:15,240
Speaker 1: firm's market cap now tops two point three trillion dollars

74
00:04:15,600 --> 00:04:18,760
Speaker 1: as the likes of Amazon and Microsoft use in Vidia's

75
00:04:18,800 --> 00:04:23,159
Speaker 1: AI accelerated chips that help data centers develop things like

76
00:04:23,320 --> 00:04:26,200
Speaker 1: chatbots and other cutting edge tools.

77
00:04:27,120 --> 00:04:30,600
Speaker 2: Minutes from May's Federal Reserve meeting show a willingness amongst

78
00:04:30,600 --> 00:04:35,000
Speaker 2: policymakers to hold interest rates higher for longer. Whilst officials

79
00:04:35,040 --> 00:04:38,360
Speaker 2: agreed that policy was well positioned, some mentioned that they

80
00:04:38,360 --> 00:04:42,000
Speaker 2: were open to tightening further if needed. Bloomberg's Mike McKee

81
00:04:42,000 --> 00:04:46,640
Speaker 2: says some participants also questions the efficacy of elevated borrowing costs.

82
00:04:47,040 --> 00:04:52,640
Speaker 7: Many participants commented on their uncertainty about the degree of restrictiveness.

83
00:04:52,920 --> 00:04:56,080
Speaker 7: High rates they felt might be having smaller effects than

84
00:04:56,200 --> 00:04:59,880
Speaker 7: in the past. The neutral rate or bar star might

85
00:05:00,160 --> 00:05:03,800
Speaker 7: be higher than previously thought, or potential growth might be

86
00:05:03,920 --> 00:05:07,479
Speaker 7: slower than they had estimated. For now, the decision was

87
00:05:07,520 --> 00:05:11,760
Speaker 7: to maintain the current policy path for longer should inflation

88
00:05:12,040 --> 00:05:13,159
Speaker 7: not resume falling.

89
00:05:14,240 --> 00:05:16,920
Speaker 2: That's member correspondent Mike McKee. There the minutes offer a

90
00:05:16,960 --> 00:05:19,720
Speaker 2: more nuanced picture than FED Charge your own pals May

91
00:05:19,800 --> 00:05:23,240
Speaker 2: the first press conference, where he shared an expectation that

92
00:05:23,400 --> 00:05:26,800
Speaker 2: current rates would bring inflation down to the central banks

93
00:05:26,839 --> 00:05:30,240
Speaker 2: two percent target. Investors are betting on one to two

94
00:05:30,320 --> 00:05:33,560
Speaker 2: rate cuts this year, according to Futures Markets.

95
00:05:33,960 --> 00:05:37,680
Speaker 1: PHP has secured an extra week to convince Anglo American

96
00:05:37,720 --> 00:05:41,000
Speaker 1: of its takeover plan. The mining giants agreed to hold

97
00:05:41,000 --> 00:05:45,080
Speaker 1: talks after Anglo rejected a third proposal worth about forty

98
00:05:45,160 --> 00:05:48,640
Speaker 1: nine billion dollars. Bloomberg's Alex Steele says that getting a

99
00:05:48,680 --> 00:05:51,520
Speaker 1: tie up across the line is exceptionally challenging.

100
00:05:51,960 --> 00:05:55,040
Speaker 8: The issue is that the deal is complicated. They want

101
00:05:55,080 --> 00:05:57,880
Speaker 8: Anglo American to spin off all at South African assets

102
00:05:58,000 --> 00:06:01,000
Speaker 8: first and then agree to the takeover. Now, Anglo American

103
00:06:01,000 --> 00:06:02,160
Speaker 8: does not like that idea.

104
00:06:02,320 --> 00:06:03,080
Speaker 2: I think it's too.

105
00:06:02,920 --> 00:06:07,160
Speaker 8: Complicated and obviously undervalues the company. And Anglo is proposing

106
00:06:07,160 --> 00:06:10,320
Speaker 8: its own restructuring as well, and that is also guess what,

107
00:06:10,480 --> 00:06:13,640
Speaker 8: spinning off some other South African assets like the.

108
00:06:13,600 --> 00:06:18,000
Speaker 1: Beers Bloomberg's Alex Steele. The news came just hours before

109
00:06:18,040 --> 00:06:21,680
Speaker 1: and a regulatory cutoff for BHP to either commit to

110
00:06:21,720 --> 00:06:24,640
Speaker 1: an offer or walk away for six months. Under UK

111
00:06:24,760 --> 00:06:28,039
Speaker 1: takeover rules, the two sides now have until the twenty

112
00:06:28,160 --> 00:06:30,960
Speaker 1: ninth of May to come up with an agreement. Now,

113
00:06:31,000 --> 00:06:33,680
Speaker 1: in a moment, we'll bring you details of NVIDIAs really

114
00:06:33,720 --> 00:06:36,520
Speaker 1: staggering earnings report and the share price bump that we

115
00:06:36,560 --> 00:06:40,040
Speaker 1: saw afterwards. But there's really only one place to start today,

116
00:06:40,080 --> 00:06:43,040
Speaker 1: and that's with the surprise announcement that the UK would

117
00:06:43,040 --> 00:06:45,560
Speaker 1: go to the polls for a general election on the

118
00:06:45,600 --> 00:06:48,320
Speaker 1: fourth of July. There were so many rumors, and there

119
00:06:48,320 --> 00:06:50,280
Speaker 1: had been a few weekends where there had been sort

120
00:06:50,279 --> 00:06:52,880
Speaker 1: of florries of rumors, but then that really took hold

121
00:06:53,000 --> 00:06:57,720
Speaker 1: yesterday because of the inflation data. This economy has been

122
00:06:57,800 --> 00:07:01,000
Speaker 1: so difficult for the Conservatives. When the reflation figure yesterday

123
00:07:01,080 --> 00:07:04,120
Speaker 1: dropped to two point three percent, there was really then

124
00:07:04,400 --> 00:07:07,599
Speaker 1: much more speculation about, you know, when the next election

125
00:07:07,680 --> 00:07:08,000
Speaker 1: would be.

126
00:07:08,240 --> 00:07:10,000
Speaker 2: Yeah, indeed, I mean look at the interesting thing was

127
00:07:10,000 --> 00:07:12,320
Speaker 2: as we were looking at the inflation data yesterday and saying, oh,

128
00:07:12,320 --> 00:07:13,840
Speaker 2: this is not as bad. It is not as good

129
00:07:13,840 --> 00:07:15,400
Speaker 2: as we thought it was going to be. It wasn't

130
00:07:15,400 --> 00:07:16,960
Speaker 2: as low as we thought it was going to be

131
00:07:17,000 --> 00:07:20,640
Speaker 2: in that reading. But apparently the powers that be in

132
00:07:20,720 --> 00:07:23,080
Speaker 2: Downing Street decided that that was going to be enough

133
00:07:23,120 --> 00:07:26,440
Speaker 2: for them to launch their election campaign on the back

134
00:07:26,480 --> 00:07:29,480
Speaker 2: of it. And what a start to polling it was.

135
00:07:29,840 --> 00:07:31,640
Speaker 2: She in the pouring range.

136
00:07:31,680 --> 00:07:34,080
Speaker 1: Yeah, I think it was a real surprise. We'd had

137
00:07:34,120 --> 00:07:36,560
Speaker 1: beautiful sunshine the day before, but the day of this

138
00:07:36,720 --> 00:07:41,160
Speaker 1: announcement he was absolutely drenched and that was quite and

139
00:07:41,240 --> 00:07:43,480
Speaker 1: also drowned out by the music of the kind of

140
00:07:43,520 --> 00:07:45,960
Speaker 1: labor anthem things can only get better.

141
00:07:45,880 --> 00:07:49,880
Speaker 2: Yeah, which the protester Steve Bray, who was playing it

142
00:07:49,920 --> 00:07:52,480
Speaker 2: so he didn't do it for Labor because it was

143
00:07:52,520 --> 00:07:55,280
Speaker 2: the top trolling song for the Conservatives, just in case

144
00:07:55,320 --> 00:07:56,000
Speaker 2: you were wondering.

145
00:07:56,080 --> 00:07:59,840
Speaker 1: Absolutely, Okay, well let's get a bit more detail then.

146
00:08:00,080 --> 00:08:02,680
Speaker 1: The general election set for the fourth of July. With

147
00:08:02,720 --> 00:08:06,960
Speaker 1: our UK government correspondent and reported Joe Mays, who's with

148
00:08:07,040 --> 00:08:10,600
Speaker 1: us to set up really what the next six weeks

149
00:08:10,600 --> 00:08:13,480
Speaker 1: of campaigning will look like? Joe, very good morning to

150
00:08:13,600 --> 00:08:16,280
Speaker 1: The Prime Minister and the leader of the opposition projected

151
00:08:16,600 --> 00:08:20,640
Speaker 1: very different images in their speeches yesterday, the pouring reign

152
00:08:20,760 --> 00:08:24,240
Speaker 1: of Downing Street, the other in a wood paneled room

153
00:08:24,360 --> 00:08:27,720
Speaker 1: surrounded by UNI and Jack flags. Does this set the

154
00:08:27,880 --> 00:08:29,320
Speaker 1: tone for the campaign?

155
00:08:31,040 --> 00:08:33,320
Speaker 9: Good morning? A danger that it does.

156
00:08:33,640 --> 00:08:35,720
Speaker 10: These are kind of things that probably shouldn't matter, but

157
00:08:35,760 --> 00:08:38,400
Speaker 10: they often do. In that if voters often have a

158
00:08:38,440 --> 00:08:41,360
Speaker 10: limited engagement with politics and I they like yesterday, what

159
00:08:41,400 --> 00:08:43,679
Speaker 10: they might have seen was yes that pictures who Night

160
00:08:43,760 --> 00:08:46,360
Speaker 10: drenched in Downing Street and then a glimpse of Starmer

161
00:08:46,400 --> 00:08:48,040
Speaker 10: looking quite premnisteral that.

162
00:08:48,040 --> 00:08:48,720
Speaker 9: In that room.

163
00:08:48,760 --> 00:08:51,680
Speaker 10: So yeah, this can set a tone. I mean, especially

164
00:08:51,720 --> 00:08:53,920
Speaker 10: when the narrative going into this moment is that the

165
00:08:53,920 --> 00:08:56,959
Speaker 10: Conservative Party is accused by Labor of being you know,

166
00:08:57,200 --> 00:08:59,679
Speaker 10: fourteen years of failure. They should be on the way out,

167
00:09:00,040 --> 00:09:02,160
Speaker 10: run out of ideas they kind of a washed out party.

168
00:09:02,320 --> 00:09:04,440
Speaker 10: You know, that kind of visual image isn't great when

169
00:09:04,440 --> 00:09:06,280
Speaker 10: it kind of can be into that narrative.

170
00:09:06,640 --> 00:09:08,959
Speaker 9: You remember back to twenty seventeen there reason.

171
00:09:08,679 --> 00:09:11,520
Speaker 10: May giving her party confidence speech when the set fell

172
00:09:11,520 --> 00:09:13,360
Speaker 10: apart behind her and it seemed to kind of chime

173
00:09:13,440 --> 00:09:16,000
Speaker 10: with the decline of her leadership. You know, will this

174
00:09:16,080 --> 00:09:18,000
Speaker 10: go down as the image that we remember, you know,

175
00:09:18,040 --> 00:09:20,680
Speaker 10: when the Concerted Party twenty points behind the Poles calling

176
00:09:20,640 --> 00:09:21,959
Speaker 10: an election that they went on to looke too.

177
00:09:21,960 --> 00:09:24,640
Speaker 9: Knows what we'll see. It's been very interesting six weeks ahead.

178
00:09:25,120 --> 00:09:27,000
Speaker 2: It certainly is now you've been reporting that even the

179
00:09:27,080 --> 00:09:30,640
Speaker 2: Chancellor was caught by surprise by this announcement. Why do

180
00:09:30,720 --> 00:09:32,240
Speaker 2: you think Sinach chose to go now?

181
00:09:33,640 --> 00:09:34,840
Speaker 9: I think there are lots of reasons.

182
00:09:34,880 --> 00:09:37,720
Speaker 10: I think one is that there's a chance he can

183
00:09:37,840 --> 00:09:41,560
Speaker 10: tie this selection with progress on the Ruanda deportation. So

184
00:09:41,559 --> 00:09:43,520
Speaker 10: if he can get a flight away in the next

185
00:09:43,600 --> 00:09:46,600
Speaker 10: kind of weeks there, then that will be a helpful

186
00:09:46,600 --> 00:09:49,080
Speaker 10: thing to help him frame the campaign around migration. And

187
00:09:49,120 --> 00:09:51,480
Speaker 10: they see migration as an area where they have been

188
00:09:51,800 --> 00:09:53,360
Speaker 10: a hand against labor, so there's that.

189
00:09:53,640 --> 00:09:55,680
Speaker 9: I think there's also a realization that the.

190
00:09:55,559 --> 00:09:58,720
Speaker 10: Economy picture might be at its best at this point

191
00:09:58,760 --> 00:10:00,920
Speaker 10: in time and wouldn't have got any for them. I

192
00:10:00,920 --> 00:10:03,200
Speaker 10: think that with those inflation numbers, as you say, coming

193
00:10:03,200 --> 00:10:03,720
Speaker 10: down to two and.

194
00:10:03,760 --> 00:10:05,439
Speaker 9: Three percent, he could declare that victory.

195
00:10:05,600 --> 00:10:08,360
Speaker 11: But also there was really a realization within number ten

196
00:10:08,400 --> 00:10:10,520
Speaker 11: the Treasury in recent weeks that they just weren't going

197
00:10:10,559 --> 00:10:12,320
Speaker 11: to have the money to do any kind of more

198
00:10:12,400 --> 00:10:16,920
Speaker 11: tax cut in the autumn before an autumn election.

199
00:10:17,200 --> 00:10:18,839
Speaker 9: So given that you can't do that, well, why not

200
00:10:18,960 --> 00:10:19,480
Speaker 9: just do the election?

201
00:10:19,760 --> 00:10:20,200
Speaker 12: Now? You know?

202
00:10:20,200 --> 00:10:21,320
Speaker 9: Why? Wait? Give it.

203
00:10:21,400 --> 00:10:23,280
Speaker 10: You can't pull that trigger on that kind of pre

204
00:10:23,280 --> 00:10:26,120
Speaker 10: election weapon of the tax cut. So yeah, two, an

205
00:10:26,160 --> 00:10:28,320
Speaker 10: economic reason there, and I think a migration reason as well.

206
00:10:28,800 --> 00:10:29,160
Speaker 9: Yeah.

207
00:10:29,240 --> 00:10:32,079
Speaker 1: Okay. What do you see then though? Is the other

208
00:10:32,160 --> 00:10:34,720
Speaker 1: key sort of battleground issues in the campaign.

209
00:10:36,240 --> 00:10:40,280
Speaker 10: So I think that the Conservative Party wants to make

210
00:10:40,320 --> 00:10:43,720
Speaker 10: this big deal about clarity and seventy over what each

211
00:10:43,760 --> 00:10:46,520
Speaker 10: party would do. So Richisunak in front down the street

212
00:10:46,600 --> 00:10:49,439
Speaker 10: yesterday was saying, look, you know, you know what we're about,

213
00:10:49,520 --> 00:10:51,480
Speaker 10: you know what we're doing. You don't know what labor does,

214
00:10:51,520 --> 00:10:53,160
Speaker 10: you don't know what Kis Starmer's going to do. He

215
00:10:53,240 --> 00:10:55,840
Speaker 10: attacks the fact that you know, when Kistald became leader

216
00:10:55,920 --> 00:10:58,680
Speaker 10: Labor Party, he had various pledges which he then dropped, So.

217
00:10:58,720 --> 00:11:00,760
Speaker 9: It's like a trust issue in this election.

218
00:11:01,160 --> 00:11:03,120
Speaker 10: I think that, you know, the voters will have to

219
00:11:03,120 --> 00:11:05,640
Speaker 10: decide do I want to stick with what I know

220
00:11:05,840 --> 00:11:08,000
Speaker 10: and if what I know is perhaps not been the

221
00:11:08,040 --> 00:11:10,679
Speaker 10: best in recent years, but or do I take the

222
00:11:10,720 --> 00:11:13,360
Speaker 10: gamble with the new guys, with the guys who haven't

223
00:11:13,360 --> 00:11:13,520
Speaker 10: been in.

224
00:11:13,520 --> 00:11:16,040
Speaker 9: Power for so long. You know that'll be a key choice.

225
00:11:16,080 --> 00:11:18,040
Speaker 10: But I think also, as I mentioned, the economy will

226
00:11:18,040 --> 00:11:20,480
Speaker 10: obviously be front and center. Labor say they want to

227
00:11:20,480 --> 00:11:22,440
Speaker 10: fight this election on the economy. They're kind of really

228
00:11:22,480 --> 00:11:24,360
Speaker 10: trying to take the fight to the choice on that.

229
00:11:24,520 --> 00:11:26,839
Speaker 10: I'm sure we hear a lot about the Liz Trust

230
00:11:26,920 --> 00:11:30,160
Speaker 10: episode and Labor saying, look, don't forget that, guys, remember

231
00:11:30,160 --> 00:11:31,640
Speaker 10: what the party did.

232
00:11:32,160 --> 00:11:33,560
Speaker 9: And I thought migration rules would be.

233
00:11:33,679 --> 00:11:36,120
Speaker 10: Key and interesting thing to watch today is what will

234
00:11:36,160 --> 00:11:38,920
Speaker 10: happen at Reform because they're promising press conference.

235
00:11:39,000 --> 00:11:41,400
Speaker 9: Nigel Farage could make an appearance. He might have roles

236
00:11:41,400 --> 00:11:45,040
Speaker 9: playing this election, So lots of things to watch out for. Joe.

237
00:11:45,080 --> 00:11:47,600
Speaker 2: What should we be keeping in mind about the fiscal

238
00:11:47,720 --> 00:11:51,640
Speaker 2: situation in the UK right now going into a series

239
00:11:51,679 --> 00:11:53,079
Speaker 2: of weeks or are going to be hearing a lot

240
00:11:53,080 --> 00:11:55,160
Speaker 2: of promises about public spending.

241
00:11:56,520 --> 00:11:58,680
Speaker 10: I think we should remember that the fiscal situation is

242
00:11:58,800 --> 00:12:02,520
Speaker 10: very fragile the UK. A report from the IMF saying

243
00:12:02,520 --> 00:12:06,520
Speaker 10: that thirty billion pounds of savings need to be made

244
00:12:06,520 --> 00:12:09,560
Speaker 10: by the government to stabilize the debt situation, and that's

245
00:12:09,600 --> 00:12:13,120
Speaker 10: the inheritance the next government would face. And that means

246
00:12:13,120 --> 00:12:16,080
Speaker 10: that pretty much inevitably we are entering a phase where

247
00:12:16,160 --> 00:12:18,679
Speaker 10: there will have to be some kind of tax rises

248
00:12:18,840 --> 00:12:21,160
Speaker 10: or spending cuts in the absence of some major pickup

249
00:12:21,160 --> 00:12:24,920
Speaker 10: in growth to stabilize the polic finance. So labor are

250
00:12:25,040 --> 00:12:28,200
Speaker 10: cautious in the econic messaging because they recognize this. Raguries

251
00:12:28,240 --> 00:12:32,160
Speaker 10: were saying, effectively this only only yesterday that the economic

252
00:12:32,200 --> 00:12:34,959
Speaker 10: hurtancy is bleak. So I think neither party you can

253
00:12:35,000 --> 00:12:38,320
Speaker 10: really afford to make massive eye catching commitments and spend

254
00:12:38,400 --> 00:12:40,520
Speaker 10: because they'd have a pretty much immediately.

255
00:12:40,200 --> 00:12:43,280
Speaker 9: Go back on them if they want power. So it'll

256
00:12:43,400 --> 00:12:45,760
Speaker 9: it'll be an awkward campaign on the economy in that respect.

257
00:12:46,360 --> 00:12:49,200
Speaker 1: Yeah. Absolutely, Okay, thank you so much for being with

258
00:12:49,280 --> 00:12:52,439
Speaker 1: us this morning. Joe Mays, our UK government reporter, get

259
00:12:52,480 --> 00:12:54,120
Speaker 1: to be very busy of for the next six weeks.

260
00:12:54,600 --> 00:12:56,800
Speaker 2: To another story we're following this morning. And Nvidia, the

261
00:12:56,840 --> 00:13:00,199
Speaker 2: chip maker at the center of the artificial intelligence, booms

262
00:13:00,000 --> 00:13:02,520
Speaker 2: as revenue in the second quarter will be about twenty

263
00:13:02,600 --> 00:13:06,400
Speaker 2: eight billion dollars, even higher than estimates. That's after the

264
00:13:06,400 --> 00:13:10,040
Speaker 2: company reported first quarter results that also beat expectations. As

265
00:13:10,040 --> 00:13:12,160
Speaker 2: of Wednesday's close of training on Wall Street and Videos

266
00:13:12,160 --> 00:13:15,440
Speaker 2: shares have served by ninety two percent this year. Joining

267
00:13:15,480 --> 00:13:18,080
Speaker 2: us now for more, Bloomberg Tech editor of Lad savav

268
00:13:18,160 --> 00:13:20,320
Speaker 2: Lad great to have you with us. Just put this

269
00:13:20,440 --> 00:13:25,280
Speaker 2: in scale for us. How strong were these results?

270
00:13:25,520 --> 00:13:28,679
Speaker 12: I mean, it's remarkable. It's something that only in video

271
00:13:28,760 --> 00:13:32,160
Speaker 12: is capable of doing. It has all seasonality anymore. It's

272
00:13:32,200 --> 00:13:35,440
Speaker 12: just it reported twenty six billion dollars of sales in

273
00:13:35,480 --> 00:13:37,960
Speaker 12: the quarter that just concluded, and it's projecting an out

274
00:13:38,000 --> 00:13:41,480
Speaker 12: of twenty eight billion. And this compares to previous years

275
00:13:41,520 --> 00:13:43,199
Speaker 12: which have had smaller sales.

276
00:13:44,760 --> 00:13:47,840
Speaker 1: So the quarterly sales now bigger than the yearly sales.

277
00:13:47,880 --> 00:13:51,280
Speaker 1: That is staggered for any business in video. Also announced

278
00:13:51,320 --> 00:13:54,800
Speaker 1: though a stock split, and it raised its dividend. How

279
00:13:54,880 --> 00:13:59,360
Speaker 1: much will that please investors and raise expectations.

280
00:14:00,080 --> 00:14:01,560
Speaker 12: One of the things to keep in mind here is

281
00:14:01,600 --> 00:14:05,120
Speaker 12: that the share price search beyond one thousand dollars for

282
00:14:05,160 --> 00:14:08,080
Speaker 12: the first time ever, So the stocksplit is just making

283
00:14:08,120 --> 00:14:11,240
Speaker 12: it more attainable, more affordable to a wider audience. We

284
00:14:11,360 --> 00:14:13,480
Speaker 12: have to keep in mind that and Vidia, until two

285
00:14:13,520 --> 00:14:16,720
Speaker 12: or three years ago, was a gaming company, and actually

286
00:14:16,760 --> 00:14:19,040
Speaker 12: I've been covering it since it has been a gaming company.

287
00:14:19,280 --> 00:14:21,720
Speaker 12: And when you look at it projection for gaming sales,

288
00:14:21,880 --> 00:14:24,360
Speaker 12: they're right in line two point six billion. But that

289
00:14:24,440 --> 00:14:26,400
Speaker 12: also gives you a sense of the scale of how

290
00:14:26,480 --> 00:14:31,480
Speaker 12: big AI is. It overrides everything else flat.

291
00:14:31,520 --> 00:14:34,400
Speaker 2: Is there any sense of anyone being able to catch

292
00:14:34,480 --> 00:14:36,640
Speaker 2: up to in Vidia in this as well? I mean,

293
00:14:36,760 --> 00:14:40,240
Speaker 2: is it a company that has competitors snapping at its heels.

294
00:14:41,120 --> 00:14:45,600
Speaker 12: Well, everybody's trying. AMD is the nearest competitor both geographically

295
00:14:45,680 --> 00:14:48,960
Speaker 12: and in technology. They're both based in Santa Clara stones

296
00:14:48,960 --> 00:14:51,320
Speaker 12: throw away from each other, and then you have the

297
00:14:51,440 --> 00:14:54,720
Speaker 12: likes of Google, Meta, Amazon. They're all developing their own

298
00:14:54,800 --> 00:14:58,200
Speaker 12: chip technology, their own server chips. They have them in place,

299
00:14:58,280 --> 00:15:01,360
Speaker 12: but they don't have the same sort of AI accelerator capability.

300
00:15:01,840 --> 00:15:04,280
Speaker 12: The interesting stage is going to be when you move

301
00:15:04,360 --> 00:15:08,080
Speaker 12: on to the devices that we use, the end user devices.

302
00:15:08,160 --> 00:15:10,800
Speaker 12: That's what coocom is much more competitive. It just made

303
00:15:10,800 --> 00:15:14,440
Speaker 12: a big announcement with Microsoft around these so called aipcs

304
00:15:14,960 --> 00:15:17,480
Speaker 12: and they all running quocom chips, and Video doesn't have

305
00:15:17,560 --> 00:15:19,600
Speaker 12: something competitive in that sector.

306
00:15:20,120 --> 00:15:23,200
Speaker 1: Okay, that's interesting. Meanwhile, we heard a little snippet of

307
00:15:23,200 --> 00:15:27,240
Speaker 1: the CEO, Jensen Wang, who's gaining in profile, some dubbing

308
00:15:27,280 --> 00:15:29,600
Speaker 1: him the kind of Steve Jobs of AI. He talks

309
00:15:29,640 --> 00:15:32,920
Speaker 1: about this being a new industrial revolution. This really does

310
00:15:32,920 --> 00:15:36,000
Speaker 1: seem to be his moment, doesn't it. Oh?

311
00:15:36,040 --> 00:15:36,600
Speaker 9: Absolutely?

312
00:15:36,680 --> 00:15:39,840
Speaker 12: I mean, in Jensen Huang's eyes, he's always been on

313
00:15:39,880 --> 00:15:42,560
Speaker 12: the rank of Steve Jobs. He is one of those

314
00:15:43,480 --> 00:15:47,320
Speaker 12: initial early co founders of Silicon Valley companies. He's been

315
00:15:47,320 --> 00:15:50,360
Speaker 12: doing this for a very long time. He's been optimistic

316
00:15:50,400 --> 00:15:53,080
Speaker 12: about video and its potential to change the world. It's

317
00:15:53,120 --> 00:15:55,160
Speaker 12: just that everyone seems to be catching up with him

318
00:15:55,360 --> 00:15:56,320
Speaker 12: at this point.

319
00:15:57,880 --> 00:16:00,600
Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

320
00:16:00,680 --> 00:16:03,720
Speaker 2: stories making news from London to Wall Street and beyond.

321
00:16:04,000 --> 00:16:07,200
Speaker 1: Look for us on your podcast feed every morning, on Apple,

322
00:16:07,320 --> 00:16:10,040
Speaker 1: Spotify and anywhere else you get your podcasts.

323
00:16:10,080 --> 00:16:13,120
Speaker 2: You can also listen live each morning on London DAB Radio,

324
00:16:13,160 --> 00:16:15,840
Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

325
00:16:15,880 --> 00:16:18,640
Speaker 1: Our flagship New York station, is also available on your

326
00:16:18,680 --> 00:16:23,400
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

327
00:16:23,640 --> 00:16:24,920
Speaker 1: I'm Caroline Hepka and.

328
00:16:24,880 --> 00:16:27,520
Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all

329
00:16:27,560 --> 00:16:29,960
Speaker 2: the news you need to start your day right here

330
00:16:30,040 --> 00:16:35,120
Speaker 2: on Bloomberg Daybreak Europe