WEBVTT - Nvidia Drops as Markets Look Past Forecast; CDC Firing Uproar

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we begin with earnings from one of the Magnificent seven.

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<v Speaker 3>N Video, the world's most valuable company, gave a tippet

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<v Speaker 3>revenue forecast for the current period. It's a signal that

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<v Speaker 3>growth is decelerating after a staggering two year boom in

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<v Speaker 3>artificial intelligence spending. The chip maker says it expects sales

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<v Speaker 3>to be roughly fifty four billion dollars in the third quarter.

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<v Speaker 3>That was in line with the average Wall Street estimate,

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<v Speaker 3>but some analysts were projecting more than sixty billion. Matt

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<v Speaker 3>Bryson is managing director of equity research at Whitebush Securities.

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<v Speaker 4>That's something I think about here is that Nvidia almost

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<v Speaker 4>always leaves her. Over the last few years, they've left

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<v Speaker 4>something on the table, and that that's something has consistently been,

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<v Speaker 4>you know, two three billion. So when the guye to

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<v Speaker 4>fifty four billion, well, what it seems like they've been

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<v Speaker 4>telling the street is more like they can do fifty

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<v Speaker 4>six to fifty seven billion. I don't think anyone's going

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<v Speaker 4>to be disappointed if at the end of Q three

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<v Speaker 4>they're coming in at those type of numbers.

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<v Speaker 3>Matt Bryce in a Webbush Securities has a two hundred

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<v Speaker 3>and ten dollars price target on in Video. Right now,

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<v Speaker 3>the stock is trading at one hundred and seventy eight.

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<v Speaker 2>Dollars Nathan and Vidia says that Trump Administration's planned a

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<v Speaker 2>charge a fifteen percent commission on its AI ships sales

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<v Speaker 2>to China has not progressed beyond the early stages and

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<v Speaker 2>could pose legal risks. The company said it excluded as

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<v Speaker 2>much as five billion dollars in possible China sales from

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<v Speaker 2>its projection because it can't be sure whether geopolitical tensions

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<v Speaker 2>will allow it to fill orders and while in Video,

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<v Speaker 2>CEO Jensen Wong says they're still pushing to bring their

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<v Speaker 2>most advanced AI chips to the Chinese market.

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<v Speaker 5>So I think, you know, the opportunity for us to

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<v Speaker 5>bring Blackwell to the China market is a real possibility,

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<v Speaker 5>and so we just have to keep advocating the the

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<v Speaker 5>sensibility of and the importance of American tech companies to

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<v Speaker 5>be able to lead and win the AI race.

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<v Speaker 2>Nvidia CEO Jensen Wong ended his conference call by saying, quote,

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<v Speaker 2>opportunity ahead is immense, and a new industrial revolution has

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<v Speaker 2>started and the AI race is on well.

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<v Speaker 3>Turning to the broader market now, Karen. Despite the Nvidia

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<v Speaker 3>pullback and uncertainty over the future of Federal Reserve Governor

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<v Speaker 3>Lisa Cook, stocks are trading near record.

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<v Speaker 6>Highs this morning.

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<v Speaker 3>Amanda Agatti of pn C Bank explains why markets have

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<v Speaker 3>been discounting the Trump Cook saga.

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<v Speaker 7>I think the equity market is really largely ignoring it.

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<v Speaker 7>One because it's starting to get conditioned to a lot

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<v Speaker 7>of this purple haze policy uncertainty, but two because I

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<v Speaker 7>think the bottom line is rate cuts are more likely

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<v Speaker 7>than not regardless of what ultimately happens with Cook, and

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<v Speaker 7>I think that is the most important thing for the

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<v Speaker 7>equity markets path forward.

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<v Speaker 6>P and C Banks.

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<v Speaker 3>Amanda Gotti says expectations for rate cut could get murky

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<v Speaker 3>if inflation surprises to the upside. The Fed's preferred read

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<v Speaker 3>on price pressures, the Core PCE index, comes out tomorrow.

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<v Speaker 2>Nathan, US companies are plenty of buy back shares at

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<v Speaker 2>a historic pace, and we bring in Bloombergy's John Tucker

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<v Speaker 2>for the very latest.

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<v Speaker 6>John, Good morning, and good morning, Karen.

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<v Speaker 8>It's a sign of corporate America's confidence in the economy.

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<v Speaker 8>Announced buybacks surpassed a trillion dollars last week. That's a

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<v Speaker 8>record over the last few months. Corporate heavyweights, in particular

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<v Speaker 8>the financials and technology, they have given the greenlight to

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<v Speaker 8>large share repurchasing programs. Back in May, you'll recall Apple

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<v Speaker 8>announced to a buy back one hundred billion dollars in stock. Alphabet, JP, Morgan, Chase,

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<v Speaker 8>goldmund Sacks, Wells Fargo, and Bank of America have also

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<v Speaker 8>announced buybacks of at least forty billion dollars. And the

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<v Speaker 8>Lenni is just last night with the Nvidia announcing a

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<v Speaker 8>sixty billion dollar buy back. Berni associate says, earnings are good,

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<v Speaker 8>they have enough money for capital expenditures and this is

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<v Speaker 8>a nice way to reward investors.

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<v Speaker 2>You know.

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<v Speaker 8>Yr comes John Tucker, Bloomberg Radio.

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<v Speaker 3>All right, John, Thanks, It's head to Europe now, where

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<v Speaker 3>French spiritsmaker Pronel Ricard's been updating sales in the week

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<v Speaker 3>of US tariffs. Bloomberg's Ewan Pots joins us from London

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<v Speaker 3>with the very latest Jewan.

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<v Speaker 9>Nathan and Karen Perno Ricards shares one of the biggest

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<v Speaker 9>gainers in Europe. This morning, the company behind Absolute Vodka

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<v Speaker 9>and Jamison Irish Whisky has topped earnings expectations a forecast

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<v Speaker 9>i pick up in demand in the second half of

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<v Speaker 9>the year. On US tariffs, including the ten percent levy

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<v Speaker 9>on UK exports, Perno says the total impact on a

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<v Speaker 9>fullier basis will be thirty five million euros. The company

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<v Speaker 9>says it will partly mitigate the tariffs by some price

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<v Speaker 9>increases in selected markets. In London, I'm youwing pots, Bloomberg Radio.

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<v Speaker 2>Are you in thanks to Japan's top trade negotiator is

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<v Speaker 2>visiting the US suppress for lower tariffs, and Bloomberg Amy

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<v Speaker 2>Morris has more from Washington.

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<v Speaker 10>Japan's top trade negotiator, Riosi Agazzawa, will push for the

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<v Speaker 10>tariffs agreed to in July, including lower duties on cars

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<v Speaker 10>and auto parts. Japan wants those duties cut to fifteen

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<v Speaker 10>percent and to end the stacking of previous duties on

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<v Speaker 10>fifteen percent universal tariffs. Look for Akizawa to urge the

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<v Speaker 10>Trump administration to implement these changes as soon as possible,

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<v Speaker 10>but the US wants to see a promised five hundred

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<v Speaker 10>and fifty billion dollar investment mechanism up and running. Details

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<v Speaker 10>of how that fund will operate are still not known.

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<v Speaker 10>In Washington, Amy Moore as Bloomberg Radio, na me thank you.

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<v Speaker 3>In speaking of Japan, Warren Buffett's increasing his bet on

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<v Speaker 3>the country. His Berkshire Hathaways raised its stakes in Japanese

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<v Speaker 3>trading houses Mitsubishi and Mitsui. Buffett first revealed stakes in

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<v Speaker 3>the trading houses in twenty twenty. Berkshire has holdings in

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<v Speaker 3>Japan's five biggest trading firms.

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<v Speaker 2>Nathan the White House is ramping up pressure on India

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<v Speaker 2>over its purchases of Russian oil and a conversation with

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<v Speaker 2>Joe Matthew on Bloomberg's Balance of Power. White House trade

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<v Speaker 2>advisor Peter Navarro called Russia's conflict with Ukraine Mody's war.

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<v Speaker 11>The road the piece runs at least partly right through

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<v Speaker 11>Newdella's were I mean Modi's war is because the road

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<v Speaker 11>to peace runs in part through New Delhi.

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<v Speaker 6>I mean that's a lot of money.

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<v Speaker 2>Right, I was. Trade advisor Peter Navarro spoke after the

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<v Speaker 2>US doubled tariffs on India's exports to fifty percent is

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<v Speaker 2>punishment for its Russian oil purchases. China remains the world's

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<v Speaker 2>largest Russian crewed buyer, but the White House has extended

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<v Speaker 2>a ninety day trade truce with Beijing.

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<v Speaker 3>And Karen, there has been another major shakeup within the

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<v Speaker 3>Trump administration. The White House has fired Centers for Disease

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<v Speaker 3>Control Director Susan Monterez just weeks into her tenure. Her

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<v Speaker 3>attorneys say Health Secretary Robert F. Kennedy Junior is targeting

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<v Speaker 3>her because she refused to quote rubber Stamp unscientific reckless directives,

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<v Speaker 3>and now at least three senior CDC leaders say they

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<v Speaker 3>are resigning in protest. All this comes weeks after the

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<v Speaker 3>CDC was targeted in a shooting that killed a police officer.

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<v Speaker 3>Current and former Health and Human Services employees wrote an

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<v Speaker 3>open letter after that attack blaming Kennedy for spreading vaccine misinformation.

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<v Speaker 2>Time now for a look at some of the other

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<v Speaker 2>stories making news in New York and around the world,

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<v Speaker 2>and for that we're joined by Bloombery's Michael Barr.

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<v Speaker 6>Michael, Good Morning, Good morning, Karen.

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<v Speaker 12>Vigials held last night for the victims of yesterday's horrific

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<v Speaker 12>mass shooting at a Minneapolis Catholic school, A shooter opened

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<v Speaker 12>fire during mass at the Annunciation Catholic School, killing two

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<v Speaker 12>children and injuring seventeen other people before dying by suicide.

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<v Speaker 12>Speaking at Glenhurst Park, Minneapolis Mayor Jacob Frey deplete it

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<v Speaker 12>with the people in attendance to speak up and call

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<v Speaker 12>for gun control.

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<v Speaker 13>While thoughts and prayers are great, they are not adequate.

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<v Speaker 7>These children were literally praying at this moment.

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<v Speaker 12>Mayor Fry. The dead include an eight year old and

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<v Speaker 12>a ten year old child. Minnesota Governor Tim Walls, we.

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<v Speaker 14>Often come to these and say these unspeakable tragedies or

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<v Speaker 14>there's no words for this. There shouldn't be words for

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<v Speaker 14>these types of instances because they should not happen.

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<v Speaker 12>Minneapolis Chief of Police Brian O'Hara spoke about the shooter.

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<v Speaker 15>The coward that shot these victims took his own life

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<v Speaker 15>in the rear of the church. That coward has been

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<v Speaker 15>identified as twenty three year old Robin Westman, no prior

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<v Speaker 15>criminal history.

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<v Speaker 12>Minneapolis Police Chief Brian O'Hara says while they are searching

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<v Speaker 12>for a motive, the shooter is said to be a

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<v Speaker 12>former student. The injured children are between the ages of

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<v Speaker 12>six to fifteen. There were also three adult parishioners, all

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<v Speaker 12>in their eighties attending the mass that were also shot,

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<v Speaker 12>although the wounded are expected to survive. Authorities say a

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<v Speaker 12>mass Russian drone and missile attack on Ukraine's capital has

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<v Speaker 12>killed at least ten people and wounded forty eight. The

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<v Speaker 12>attack early today on Kiev was the first major Russian

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<v Speaker 12>combine combined attack on Kiev in weeks. The Immigration detention

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<v Speaker 12>center President Trump called Alligator Alcatraz will be closing up shop,

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<v Speaker 12>according to new details. Last week, a federal judge in

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<v Speaker 12>Miami ordered the center to wind down operations. Alligator Alcatraz,

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<v Speaker 12>located in the heart of the Florida Everglades, was rapidly built,

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<v Speaker 12>capable of holding up to three thousand detainees. The facility

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<v Speaker 12>has drawn public backlash over its location and living conditions.

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<v Speaker 12>Global News twenty four hours a day and whenever you

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<v Speaker 12>want it with Bloomberg News Now, Michael Barne, this is Bloomberg.

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<v Speaker 2>Hevin Hey, Smichael time now for our Bloomberg Sports up dating,

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<v Speaker 2>Brown he Bringhi, John Staff.

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<v Speaker 14>Shower, Thanks, Daron ywed Wider Cup down, and Keegan Bradley

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<v Speaker 14>filled out his roster for the upcoming Ryder Cup. At

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<v Speaker 14>Bethpage on Long Island. Did not pick himself to play

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<v Speaker 14>pick Justin Thomas, Colin, Morri Kama, Ben Griffin, Patrick Cantley,

0:09:51.679 --> 0:09:55.080
<v Speaker 14>Sam Burns, and Cam Young. Tommy Devido, the quarterback released

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<v Speaker 14>by the Giants the other day, has been claimed on

0:09:57.080 --> 0:10:00.360
<v Speaker 14>waivers by the Patriots. The Mets with a six stopping

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<v Speaker 14>shut out of Afhillies. The rookie Nolan MacLean pitched eight Indians.

0:10:04.000 --> 0:10:06.439
<v Speaker 14>He's the first Met pitcher to win its first three starts.

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<v Speaker 14>That's air Bloomberg Sports Update.

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<v Speaker 2>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 2>after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 6>Good morning, I'm Nathan Hager.

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<v Speaker 3>Well, wasn't the blowout quarter many investors have come to

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<v Speaker 3>expect from the world's most valuable company. Nvidia delivered a

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<v Speaker 3>more muted revenue forecast for the current quarter, raising some

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<v Speaker 3>concern perhaps that the breakneck growth we've seen in AI

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<v Speaker 3>spending maybe tapping the breaks. But in Vidio CEO Jensen

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<v Speaker 3>Wong is thinking longer term.

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<v Speaker 13>Over the next five years, we're going to scale into

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<v Speaker 13>with Blackwell, with Rubin and follow ons to scale into

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<v Speaker 13>effectively a scree to four trillion dollar AI infrastructure opportunity.

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<v Speaker 3>That was in Vidia CEO Jensen Wong at the conference

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<v Speaker 3>call last night. Joining us this morning, Dan Ives, Global

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<v Speaker 3>head of Technology Research at web Bush Securities.

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<v Speaker 6>Dan, Good morning.

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<v Speaker 3>I know we've talked before about expectations for AI spending

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<v Speaker 3>in the longer term, but when we hear three to

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<v Speaker 3>four trillion dollars in the next decade, is.

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<v Speaker 6>Jensen Wong continuing to set the bar too high? Good morning? Yeah.

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<v Speaker 16>I mean, look, I think it's these are jaw dropping numbers,

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<v Speaker 16>and the reality is there's no one that has a

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<v Speaker 16>better view of what's happened when it comes to AI

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<v Speaker 16>revolution than the godfather of AI, Jensen himself. And I

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<v Speaker 16>think this is just not just a bullish forecast. I

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<v Speaker 16>think it shows we are just early days in terms

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<v Speaker 16>of just what's really going to be a fourth Industrial Revolution.

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<v Speaker 3>Now in terms of the current forecast, fifty four billion

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<v Speaker 3>dollars in sales in this quarter.

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<v Speaker 6>That was in line with estimates.

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<v Speaker 3>A lot of investors have been expecting that in Vidia

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<v Speaker 3>will continue to go above those inline estimates. Is fifty

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<v Speaker 3>four billion enough to keep the momentum going for this company?

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<v Speaker 2>Yeah?

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<v Speaker 16>Look, I think you have to also look at China

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<v Speaker 16>because this excludes any China revenue. When you think about

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<v Speaker 16>age twenty, that could be two to five billion, and

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<v Speaker 16>then you look at what could be really fifty percent

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<v Speaker 16>growth over the next year. I think that's really the

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<v Speaker 16>call here is that at first, yeah, you could say

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<v Speaker 16>it's conservative, but these are jaw dropping numbers when you

0:12:34.360 --> 0:12:37.600
<v Speaker 16>look at the growth and now China getting added back

0:12:37.640 --> 0:12:39.640
<v Speaker 16>to that. Given the green light that we're seeing from

0:12:39.679 --> 0:12:42.160
<v Speaker 16>the White House, Look, there's one chip in the world.

0:12:42.200 --> 0:12:45.080
<v Speaker 16>If you in the AI revolution, it's in Vidia.

0:12:45.240 --> 0:12:47.360
<v Speaker 6>Is it really a green light? Though?

0:12:47.559 --> 0:12:50.200
<v Speaker 3>I mean, we got the you know, the fifteen percent

0:12:50.320 --> 0:12:55.640
<v Speaker 3>revenue sharing agreement that the White House says it's imposed

0:12:55.679 --> 0:12:58.520
<v Speaker 3>on in Vidia. The company itself sort of raised some

0:12:58.600 --> 0:13:02.880
<v Speaker 3>questions about that. How green is that light for China penetration?

0:13:04.200 --> 0:13:08.440
<v Speaker 16>Look to essentially pay for play model, right, and like,

0:13:08.640 --> 0:13:10.680
<v Speaker 16>obviously there is going to continue to sort of be

0:13:10.760 --> 0:13:14.680
<v Speaker 16>some noise around the situation, but the reality is that

0:13:14.760 --> 0:13:17.000
<v Speaker 16>China market is going to be reopened for in video

0:13:17.280 --> 0:13:21.360
<v Speaker 16>and in video wants, you know, not just a factor

0:13:21.400 --> 0:13:23.320
<v Speaker 16>into China, but they don't want to give on a

0:13:23.360 --> 0:13:27.200
<v Speaker 16>silver platter. Huawei twenty billion thirty billion a year and

0:13:27.280 --> 0:13:30.200
<v Speaker 16>I think the White House you've seen now the path

0:13:30.360 --> 0:13:33.000
<v Speaker 16>is there. So I think when you start the factor

0:13:33.040 --> 0:13:36.520
<v Speaker 16>in with China revenues combined with what the company's seeing,

0:13:36.720 --> 0:13:41.120
<v Speaker 16>massive demand that's really off the charts, and there's this

0:13:41.200 --> 0:13:42.280
<v Speaker 16>doctor is going to be green.

0:13:43.480 --> 0:13:45.600
<v Speaker 6>Does China want in video?

0:13:45.760 --> 0:13:51.520
<v Speaker 3>There's been a lot of uh motivation in the from

0:13:51.559 --> 0:13:56.120
<v Speaker 3>the Chinese government to grow its own AI accelerators and

0:13:56.360 --> 0:13:59.280
<v Speaker 3>concern raised about you know, they say that there could

0:13:59.320 --> 0:14:01.960
<v Speaker 3>be trackers on in video chips as well.

0:14:02.320 --> 0:14:04.120
<v Speaker 6>Does China want in Nvidia?

0:14:05.640 --> 0:14:08.559
<v Speaker 16>Look, there's going to be a back and forth, right,

0:14:08.600 --> 0:14:12.600
<v Speaker 16>this is a political you know, I obviously continued game

0:14:12.640 --> 0:14:15.640
<v Speaker 16>of chess being played between DC and Beijing. But the

0:14:15.720 --> 0:14:20.680
<v Speaker 16>reality is in Vidio chips are years ahead of any

0:14:20.680 --> 0:14:23.920
<v Speaker 16>other chip. So when you go to Chinese big tech companies,

0:14:24.080 --> 0:14:27.560
<v Speaker 16>that's chip they want. So it comes down that there

0:14:27.560 --> 0:14:31.440
<v Speaker 16>could be some political grand standing. But in Nvidia continues

0:14:31.440 --> 0:14:34.520
<v Speaker 16>to be the chip that Chinese players want, and I

0:14:34.560 --> 0:14:38.120
<v Speaker 16>think that look as is all plays out, it's just

0:14:38.120 --> 0:14:41.720
<v Speaker 16>going to continue to show that there's one chip fuel

0:14:41.720 --> 0:14:44.960
<v Speaker 16>in the AI revolution, whether in US or China, and

0:14:44.960 --> 0:14:45.600
<v Speaker 16>it's in video.

0:14:46.120 --> 0:14:49.440
<v Speaker 3>Just got thirty seconds left, Dan, your colleague at Wedbush,

0:14:49.480 --> 0:14:51.880
<v Speaker 3>Matt Bryson's got a two hundred and ten dollars price target

0:14:51.920 --> 0:14:55.200
<v Speaker 3>on in Vidia. It's not there yet. Are you making

0:14:55.240 --> 0:14:57.800
<v Speaker 3>any changes to your price target after these earnings?

0:14:58.360 --> 0:15:02.000
<v Speaker 16>No, Bryson av dark you ten. But we ultimately believe

0:15:02.080 --> 0:15:04.720
<v Speaker 16>this is a five trillion dollar markup as we go

0:15:04.840 --> 0:15:08.680
<v Speaker 16>into early twenty twenty six. I think you know it's

0:15:08.840 --> 0:15:12.440
<v Speaker 16>only second inning of a nine inning game in terms

0:15:12.480 --> 0:15:12.880
<v Speaker 16>of AI.

0:15:15.160 --> 0:15:18.120
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