Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with earnings from one of the Magnificent seven.
Speaker 3: N Video, the world's most valuable company, gave a tippet
Speaker 3: revenue forecast for the current period. It's a signal that
Speaker 3: growth is decelerating after a staggering two year boom in
Speaker 3: artificial intelligence spending. The chip maker says it expects sales
Speaker 3: to be roughly fifty four billion dollars in the third quarter.
Speaker 3: That was in line with the average Wall Street estimate,
Speaker 3: but some analysts were projecting more than sixty billion. Matt
Speaker 3: Bryson is managing director of equity research at Whitebush Securities.
Speaker 4: That's something I think about here is that Nvidia almost
Speaker 4: always leaves her. Over the last few years, they've left
Speaker 4: something on the table, and that that's something has consistently been,
Speaker 4: you know, two three billion. So when the guye to
Speaker 4: fifty four billion, well, what it seems like they've been
Speaker 4: telling the street is more like they can do fifty
Speaker 4: six to fifty seven billion. I don't think anyone's going
Speaker 4: to be disappointed if at the end of Q three
Speaker 4: they're coming in at those type of numbers.
Speaker 3: Matt Bryce in a Webbush Securities has a two hundred
Speaker 3: and ten dollars price target on in Video. Right now,
Speaker 3: the stock is trading at one hundred and seventy eight.
Speaker 2: Dollars Nathan and Vidia says that Trump Administration's planned a
Speaker 2: charge a fifteen percent commission on its AI ships sales
Speaker 2: to China has not progressed beyond the early stages and
Speaker 2: could pose legal risks. The company said it excluded as
Speaker 2: much as five billion dollars in possible China sales from
Speaker 2: its projection because it can't be sure whether geopolitical tensions
Speaker 2: will allow it to fill orders and while in Video,
Speaker 2: CEO Jensen Wong says they're still pushing to bring their
Speaker 2: most advanced AI chips to the Chinese market.
Speaker 5: So I think, you know, the opportunity for us to
Speaker 5: bring Blackwell to the China market is a real possibility,
Speaker 5: and so we just have to keep advocating the the
Speaker 5: sensibility of and the importance of American tech companies to
Speaker 5: be able to lead and win the AI race.
Speaker 2: Nvidia CEO Jensen Wong ended his conference call by saying, quote,
Speaker 2: opportunity ahead is immense, and a new industrial revolution has
Speaker 2: started and the AI race is on well.
Speaker 3: Turning to the broader market now, Karen. Despite the Nvidia
Speaker 3: pullback and uncertainty over the future of Federal Reserve Governor
Speaker 3: Lisa Cook, stocks are trading near record.
Speaker 6: Highs this morning.
Speaker 3: Amanda Agatti of pn C Bank explains why markets have
Speaker 3: been discounting the Trump Cook saga.
Speaker 7: I think the equity market is really largely ignoring it.
Speaker 7: One because it's starting to get conditioned to a lot
Speaker 7: of this purple haze policy uncertainty, but two because I
Speaker 7: think the bottom line is rate cuts are more likely
Speaker 7: than not regardless of what ultimately happens with Cook, and
Speaker 7: I think that is the most important thing for the
Speaker 7: equity markets path forward.
Speaker 6: P and C Banks.
Speaker 3: Amanda Gotti says expectations for rate cut could get murky
Speaker 3: if inflation surprises to the upside. The Fed's preferred read
Speaker 3: on price pressures, the Core PCE index, comes out tomorrow.
Speaker 2: Nathan, US companies are plenty of buy back shares at
Speaker 2: a historic pace, and we bring in Bloombergy's John Tucker
Speaker 2: for the very latest.
Speaker 6: John, Good morning, and good morning, Karen.
Speaker 8: It's a sign of corporate America's confidence in the economy.
Speaker 8: Announced buybacks surpassed a trillion dollars last week. That's a
Speaker 8: record over the last few months. Corporate heavyweights, in particular
Speaker 8: the financials and technology, they have given the greenlight to
Speaker 8: large share repurchasing programs. Back in May, you'll recall Apple
Speaker 8: announced to a buy back one hundred billion dollars in stock. Alphabet, JP, Morgan, Chase,
Speaker 8: goldmund Sacks, Wells Fargo, and Bank of America have also
Speaker 8: announced buybacks of at least forty billion dollars. And the
Speaker 8: Lenni is just last night with the Nvidia announcing a
Speaker 8: sixty billion dollar buy back. Berni associate says, earnings are good,
Speaker 8: they have enough money for capital expenditures and this is
Speaker 8: a nice way to reward investors.
Speaker 2: You know.
Speaker 8: Yr comes John Tucker, Bloomberg Radio.
Speaker 3: All right, John, Thanks, It's head to Europe now, where
Speaker 3: French spiritsmaker Pronel Ricard's been updating sales in the week
Speaker 3: of US tariffs. Bloomberg's Ewan Pots joins us from London
Speaker 3: with the very latest Jewan.
Speaker 9: Nathan and Karen Perno Ricards shares one of the biggest
Speaker 9: gainers in Europe. This morning, the company behind Absolute Vodka
Speaker 9: and Jamison Irish Whisky has topped earnings expectations a forecast
Speaker 9: i pick up in demand in the second half of
Speaker 9: the year. On US tariffs, including the ten percent levy
Speaker 9: on UK exports, Perno says the total impact on a
Speaker 9: fullier basis will be thirty five million euros. The company
Speaker 9: says it will partly mitigate the tariffs by some price
Speaker 9: increases in selected markets. In London, I'm youwing pots, Bloomberg Radio.
Speaker 2: Are you in thanks to Japan's top trade negotiator is
Speaker 2: visiting the US suppress for lower tariffs, and Bloomberg Amy
Speaker 2: Morris has more from Washington.
Speaker 10: Japan's top trade negotiator, Riosi Agazzawa, will push for the
Speaker 10: tariffs agreed to in July, including lower duties on cars
Speaker 10: and auto parts. Japan wants those duties cut to fifteen
Speaker 10: percent and to end the stacking of previous duties on
Speaker 10: fifteen percent universal tariffs. Look for Akizawa to urge the
Speaker 10: Trump administration to implement these changes as soon as possible,
Speaker 10: but the US wants to see a promised five hundred
Speaker 10: and fifty billion dollar investment mechanism up and running. Details
Speaker 10: of how that fund will operate are still not known.
Speaker 10: In Washington, Amy Moore as Bloomberg Radio, na me thank you.
Speaker 3: In speaking of Japan, Warren Buffett's increasing his bet on
Speaker 3: the country. His Berkshire Hathaways raised its stakes in Japanese
Speaker 3: trading houses Mitsubishi and Mitsui. Buffett first revealed stakes in
Speaker 3: the trading houses in twenty twenty. Berkshire has holdings in
Speaker 3: Japan's five biggest trading firms.
Speaker 2: Nathan the White House is ramping up pressure on India
Speaker 2: over its purchases of Russian oil and a conversation with
Speaker 2: Joe Matthew on Bloomberg's Balance of Power. White House trade
Speaker 2: advisor Peter Navarro called Russia's conflict with Ukraine Mody's war.
Speaker 11: The road the piece runs at least partly right through
Speaker 11: Newdella's were I mean Modi's war is because the road
Speaker 11: to peace runs in part through New Delhi.
Speaker 6: I mean that's a lot of money.
Speaker 2: Right, I was. Trade advisor Peter Navarro spoke after the
Speaker 2: US doubled tariffs on India's exports to fifty percent is
Speaker 2: punishment for its Russian oil purchases. China remains the world's
Speaker 2: largest Russian crewed buyer, but the White House has extended
Speaker 2: a ninety day trade truce with Beijing.
Speaker 3: And Karen, there has been another major shakeup within the
Speaker 3: Trump administration. The White House has fired Centers for Disease
Speaker 3: Control Director Susan Monterez just weeks into her tenure. Her
Speaker 3: attorneys say Health Secretary Robert F. Kennedy Junior is targeting
Speaker 3: her because she refused to quote rubber Stamp unscientific reckless directives,
Speaker 3: and now at least three senior CDC leaders say they
Speaker 3: are resigning in protest. All this comes weeks after the
Speaker 3: CDC was targeted in a shooting that killed a police officer.
Speaker 3: Current and former Health and Human Services employees wrote an
Speaker 3: open letter after that attack blaming Kennedy for spreading vaccine misinformation.
Speaker 2: Time now for a look at some of the other
Speaker 2: stories making news in New York and around the world,
Speaker 2: and for that we're joined by Bloombery's Michael Barr.
Speaker 6: Michael, Good Morning, Good morning, Karen.
Speaker 12: Vigials held last night for the victims of yesterday's horrific
Speaker 12: mass shooting at a Minneapolis Catholic school, A shooter opened
Speaker 12: fire during mass at the Annunciation Catholic School, killing two
Speaker 12: children and injuring seventeen other people before dying by suicide.
Speaker 12: Speaking at Glenhurst Park, Minneapolis Mayor Jacob Frey deplete it
Speaker 12: with the people in attendance to speak up and call
Speaker 12: for gun control.
Speaker 13: While thoughts and prayers are great, they are not adequate.
Speaker 7: These children were literally praying at this moment.
Speaker 12: Mayor Fry. The dead include an eight year old and
Speaker 12: a ten year old child. Minnesota Governor Tim Walls, we.
Speaker 14: Often come to these and say these unspeakable tragedies or
Speaker 14: there's no words for this. There shouldn't be words for
Speaker 14: these types of instances because they should not happen.
Speaker 12: Minneapolis Chief of Police Brian O'Hara spoke about the shooter.
Speaker 15: The coward that shot these victims took his own life
Speaker 15: in the rear of the church. That coward has been
Speaker 15: identified as twenty three year old Robin Westman, no prior
Speaker 15: criminal history.
Speaker 12: Minneapolis Police Chief Brian O'Hara says while they are searching
Speaker 12: for a motive, the shooter is said to be a
Speaker 12: former student. The injured children are between the ages of
Speaker 12: six to fifteen. There were also three adult parishioners, all
Speaker 12: in their eighties attending the mass that were also shot,
Speaker 12: although the wounded are expected to survive. Authorities say a
Speaker 12: mass Russian drone and missile attack on Ukraine's capital has
Speaker 12: killed at least ten people and wounded forty eight. The
Speaker 12: attack early today on Kiev was the first major Russian
Speaker 12: combine combined attack on Kiev in weeks. The Immigration detention
Speaker 12: center President Trump called Alligator Alcatraz will be closing up shop,
Speaker 12: according to new details. Last week, a federal judge in
Speaker 12: Miami ordered the center to wind down operations. Alligator Alcatraz,
Speaker 12: located in the heart of the Florida Everglades, was rapidly built,
Speaker 12: capable of holding up to three thousand detainees. The facility
Speaker 12: has drawn public backlash over its location and living conditions.
Speaker 12: Global News twenty four hours a day and whenever you
Speaker 12: want it with Bloomberg News Now, Michael Barne, this is Bloomberg.
Speaker 2: Hevin Hey, Smichael time now for our Bloomberg Sports up dating,
Speaker 2: Brown he Bringhi, John Staff.
Speaker 14: Shower, Thanks, Daron ywed Wider Cup down, and Keegan Bradley
Speaker 14: filled out his roster for the upcoming Ryder Cup. At
Speaker 14: Bethpage on Long Island. Did not pick himself to play
Speaker 14: pick Justin Thomas, Colin, Morri Kama, Ben Griffin, Patrick Cantley,
Speaker 14: Sam Burns, and Cam Young. Tommy Devido, the quarterback released
Speaker 14: by the Giants the other day, has been claimed on
Speaker 14: waivers by the Patriots. The Mets with a six stopping
Speaker 14: shut out of Afhillies. The rookie Nolan MacLean pitched eight Indians.
Speaker 14: He's the first Met pitcher to win its first three starts.
Speaker 14: That's air Bloomberg Sports Update.
Speaker 2: Stay with us. More from Bloomberg day Break coming up
Speaker 2: after this.
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Speaker 6: Good morning, I'm Nathan Hager.
Speaker 3: Well, wasn't the blowout quarter many investors have come to
Speaker 3: expect from the world's most valuable company. Nvidia delivered a
Speaker 3: more muted revenue forecast for the current quarter, raising some
Speaker 3: concern perhaps that the breakneck growth we've seen in AI
Speaker 3: spending maybe tapping the breaks. But in Vidio CEO Jensen
Speaker 3: Wong is thinking longer term.
Speaker 13: Over the next five years, we're going to scale into
Speaker 13: with Blackwell, with Rubin and follow ons to scale into
Speaker 13: effectively a scree to four trillion dollar AI infrastructure opportunity.
Speaker 3: That was in Vidia CEO Jensen Wong at the conference
Speaker 3: call last night. Joining us this morning, Dan Ives, Global
Speaker 3: head of Technology Research at web Bush Securities.
Speaker 6: Dan, Good morning.
Speaker 3: I know we've talked before about expectations for AI spending
Speaker 3: in the longer term, but when we hear three to
Speaker 3: four trillion dollars in the next decade, is.
Speaker 6: Jensen Wong continuing to set the bar too high? Good morning? Yeah.
Speaker 16: I mean, look, I think it's these are jaw dropping numbers,
Speaker 16: and the reality is there's no one that has a
Speaker 16: better view of what's happened when it comes to AI
Speaker 16: revolution than the godfather of AI, Jensen himself. And I
Speaker 16: think this is just not just a bullish forecast. I
Speaker 16: think it shows we are just early days in terms
Speaker 16: of just what's really going to be a fourth Industrial Revolution.
Speaker 3: Now in terms of the current forecast, fifty four billion
Speaker 3: dollars in sales in this quarter.
Speaker 6: That was in line with estimates.
Speaker 3: A lot of investors have been expecting that in Vidia
Speaker 3: will continue to go above those inline estimates. Is fifty
Speaker 3: four billion enough to keep the momentum going for this company?
Speaker 2: Yeah?
Speaker 16: Look, I think you have to also look at China
Speaker 16: because this excludes any China revenue. When you think about
Speaker 16: age twenty, that could be two to five billion, and
Speaker 16: then you look at what could be really fifty percent
Speaker 16: growth over the next year. I think that's really the
Speaker 16: call here is that at first, yeah, you could say
Speaker 16: it's conservative, but these are jaw dropping numbers when you
Speaker 16: look at the growth and now China getting added back
Speaker 16: to that. Given the green light that we're seeing from
Speaker 16: the White House, Look, there's one chip in the world.
Speaker 16: If you in the AI revolution, it's in Vidia.
Speaker 6: Is it really a green light? Though?
Speaker 3: I mean, we got the you know, the fifteen percent
Speaker 3: revenue sharing agreement that the White House says it's imposed
Speaker 3: on in Vidia. The company itself sort of raised some
Speaker 3: questions about that. How green is that light for China penetration?
Speaker 16: Look to essentially pay for play model, right, and like,
Speaker 16: obviously there is going to continue to sort of be
Speaker 16: some noise around the situation, but the reality is that
Speaker 16: China market is going to be reopened for in video
Speaker 16: and in video wants, you know, not just a factor
Speaker 16: into China, but they don't want to give on a
Speaker 16: silver platter. Huawei twenty billion thirty billion a year and
Speaker 16: I think the White House you've seen now the path
Speaker 16: is there. So I think when you start the factor
Speaker 16: in with China revenues combined with what the company's seeing,
Speaker 16: massive demand that's really off the charts, and there's this
Speaker 16: doctor is going to be green.
Speaker 6: Does China want in video?
Speaker 3: There's been a lot of uh motivation in the from
Speaker 3: the Chinese government to grow its own AI accelerators and
Speaker 3: concern raised about you know, they say that there could
Speaker 3: be trackers on in video chips as well.
Speaker 6: Does China want in Nvidia?
Speaker 16: Look, there's going to be a back and forth, right,
Speaker 16: this is a political you know, I obviously continued game
Speaker 16: of chess being played between DC and Beijing. But the
Speaker 16: reality is in Vidio chips are years ahead of any
Speaker 16: other chip. So when you go to Chinese big tech companies,
Speaker 16: that's chip they want. So it comes down that there
Speaker 16: could be some political grand standing. But in Nvidia continues
Speaker 16: to be the chip that Chinese players want, and I
Speaker 16: think that look as is all plays out, it's just
Speaker 16: going to continue to show that there's one chip fuel
Speaker 16: in the AI revolution, whether in US or China, and
Speaker 16: it's in video.
Speaker 3: Just got thirty seconds left, Dan, your colleague at Wedbush,
Speaker 3: Matt Bryson's got a two hundred and ten dollars price target
Speaker 3: on in Vidia. It's not there yet. Are you making
Speaker 3: any changes to your price target after these earnings?
Speaker 16: No, Bryson av dark you ten. But we ultimately believe
Speaker 16: this is a five trillion dollar markup as we go
Speaker 16: into early twenty twenty six. I think you know it's
Speaker 16: only second inning of a nine inning game in terms
Speaker 16: of AI.
Speaker 2: This is Bloomberg day Break, your morning podcast on the
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Speaker 6: And I'm Nathan Hager.
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