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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: Day Bake You podcast, available every morning on Apple, Spotify

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Speaker 1: or wherever you listen. It's Thursday, the twenty first of

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Speaker 1: November in London. I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carroll. Coming up today when Great still isn't

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Speaker 2: good enough and Vidia exceeds sales forecasts but warns rising

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Speaker 2: costs will eat into margins.

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Speaker 1: US prosecutors accuse Gautum A Donnie if being involved in

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Speaker 1: an alleged two hundred and fifty million dollar bribe plot.

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Speaker 2: Plus, we take a look inside the charm offensive to

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Speaker 2: lower Britain's super rich overseas.

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Speaker 1: Let's start with a round up of top stories.

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Speaker 2: Nvidia has delivered a revenue forecast that failed to meet

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Speaker 2: the highest expectations. The world's most valuable company is predicting

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Speaker 2: fourth quarter sales of about thirty seven and a half

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Speaker 2: billion dollars. That's slightly above the average analysts estimate, but

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Speaker 2: below the most up domestic ones of forty one billion dollars.

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Speaker 2: CEO Jensen Wang says demand still exceeds supply.

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Speaker 3: Blackwell production is enful steam. In fact, we will deliver

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Speaker 3: this quarter more blackwells than we had previously estimated, and

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Speaker 3: so the supply chain team is doing an incredible job

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Speaker 3: working with our supply partners to increase blackwell.

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Speaker 2: Despite Jensen Huang's bullish comments, the firm also warned that

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Speaker 2: production and engineering costs will weigh on profit margins going forward.

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Speaker 2: The news has met with a tepid reaction from investors,

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Speaker 2: who have bid up in Nvidia shares almost two hundred

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Speaker 2: percent this year. Shares felt two and a half percent

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Speaker 2: in after hours trading.

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Speaker 1: India's Gautum Adani has been charged by US prosecutors over

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Speaker 1: an alleged bribery scheme. Federal prosecutors say that the tycoon

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Speaker 1: and other defendants promised to pay more than two hundred

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Speaker 1: and fifty million dollars in bribes to Indian government officials

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Speaker 1: to win solar energy contracts billions of dollars. The Eastern

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Speaker 1: District of New York, which brought the case, says that

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Speaker 1: defendants then concealed the plan as they sought to raise

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Speaker 1: money from US investors. Phone calls an email so a

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Speaker 1: Danni Group's US officers a requesting comment weren't immediately returned.

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Speaker 1: The indictment has caused a Danni Group stocks to tumble,

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Speaker 1: while units of the conglomerate also say that they have

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Speaker 1: now scrapped a six hundred million dollar bond offering.

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Speaker 2: The founder of our Kiegask Capital Management, Bill Wang, has

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Speaker 2: been sentenced to eighteen years in prison. In July, a

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Speaker 2: jury found Hwang guilty of misleading banks into providing our

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Speaker 2: Kieg Gass with billions of dollars in trading capacity. Bloomberg's

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Speaker 2: Shaquilo Mai says the former financier expressed regrets during the

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Speaker 2: proceedings at a court in New York.

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Speaker 4: Wang was remorseful, telling the judge he felt deep pain

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Speaker 4: for what happened to Arkae goals Now prosecutors they wanted

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Speaker 4: a twenty one year sentence because they said that Wang

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Speaker 4: was a repeat offender in all of this, because back

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Speaker 4: in twenty two he pled guilty to inside a trading

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Speaker 4: with another company, Tiger Capital Now. On the other hand,

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Speaker 4: in his defense, they wanted no jail time, but the

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Speaker 4: judge says that was uterly ridiculous.

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Speaker 2: Our reporter Shakila Mara there from outside the courtroom. Our

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Speaker 2: Kae Gas fell into a spiral after its March twenty

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Speaker 2: twenty one selloff and Viacom shares prompted billions of dollars

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Speaker 2: in margin calls, leading to the collapse of Huang's thirty

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Speaker 2: six billion dollar family office. The fallout included the demise

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Speaker 2: of Credit Suisse and significant losses at Morgan Stanley, Ubs,

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Speaker 2: Nomora Holdings, and other banks.

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Speaker 1: Now, Ukraine has fired British cruise missiles at military targets

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Speaker 1: in Russia for the first time source tel Bloomberg. The

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Speaker 1: UK proved the use of storm Shadow missiles in response

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Speaker 1: to Russia deploying North Korean troops in its war against Ukraine.

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Speaker 1: The strike comes a day after Ukraine deployed US made

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Speaker 1: attackers for the first time to hit a military facility

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Speaker 1: in the western Bryansk re Ukrainian MP yev Yayina Klavchuk

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Speaker 1: says that Russia's actions led to the developments.

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Speaker 5: Kremlin understands that they need to put this pressure so

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Speaker 5: the Western allies and Ukraine would blink first, and you know,

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Speaker 5: sort of fell into this emotional drain and portion on

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Speaker 5: the battlefield.

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Speaker 1: Ukrainian MP yeav yea Yuni Klavchuk, speaking there, the country's

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Speaker 1: leader of Vladomi Zelenski has a long called for Western

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Speaker 1: governments to bolster their military support. Yesterday, the Kremlin said

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Speaker 1: that it's prepared to discuss a potential ceasepar if Ukraine

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Speaker 1: in Ukraine with Presidents elect Donald Trump when he assumes

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Speaker 1: office in January.

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Speaker 2: Car sales across Europe are stagnating, pushing carmakers to make

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Speaker 2: severe redundancy plans. New car registrations inched up just zero

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Speaker 2: point one percent in October compared to a year ago,

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Speaker 2: to one point zero four million units. Bloomberg's Global Autos

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Speaker 2: editor Craig Trudell says he's seeing profit warnings across Europe.

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Speaker 6: You're talking about Volkswagen or Stilantis or BMW Mercedes. It's

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Speaker 6: really been across the board that a lot of manufacturers

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Speaker 6: are having trouble with the increase in competition at a

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Speaker 6: time when we're not seeing demand growth, and so you

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Speaker 6: know that that leads to some real need to take

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Speaker 6: a look at how many people you're employing, plants you've

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Speaker 6: got running, and whether you need to take shifts out

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Speaker 6: or even go so far as to potentially take plants down.

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Speaker 2: Trudell adds a key factor has been governments pulling support

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Speaker 2: and subsidies for electric vehicles. Ford is looking to cut

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Speaker 2: four thousand jobs, or fourteen percent of its European workers,

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Speaker 2: after already cutting a similar number last year, and your

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Speaker 2: biggest automaker, Volkswagen, faces widespread strikes as it looks to

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Speaker 2: cut seventeen billion euros in costs.

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Speaker 4: Now.

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Speaker 1: Britain's parents have doubled the amount that they give to

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Speaker 1: their children, largely to help them buy a home. Research

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Speaker 1: by the Resolution Foundation is found that parents gave twenty

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Speaker 1: nine billion pounds over two years into twenty now. That

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Speaker 1: is up from thirteen billion pounds in twenty ten. Bloomberg's

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Speaker 1: James Walcock has more.

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Speaker 7: In twenty ten, the average house price was one hundred

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Speaker 7: and sixty eight thousand pounds, ten years later two hundred

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Speaker 7: and forty seven thousand, two thirds higher. That spiraling cost

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Speaker 7: helps explain why the Resolution Foundation say it takes the

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Speaker 7: typical young family more than fourteen years to save up

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Speaker 7: a deposit. Now increasingly their elders are stepping in where

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Speaker 7: they can, passing on cash to get their kids out

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Speaker 7: of the expensive rental market. The findings highlight the scale

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Speaker 7: of the UK's housing crisis, with the think tank warning

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Speaker 7: the economy could be harmed by a trapped generation of

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Speaker 7: young people in London. James Wilcock, Bloomberg Radio.

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Speaker 2: Those are your top stories on the markets Yesterday, the

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Speaker 2: SMP five hundred climbed back to close flat after following

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Speaker 2: one percent on Russia Ukraine tensions. The US dollar strengthened

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Speaker 2: another zero point four percent in yesterday's session, with euro

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Speaker 2: dollar coming close to breaching one oh five gold climb

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Speaker 2: by zero point seven percent. It's rising further today in Asia.

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Speaker 2: Bitcoin has jumped almost three percent to just over ninety

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Speaker 2: seven thousand dollars, and the Hangsang Tech Index as weak

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Speaker 2: are in Asia one point two percent as investors digest

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Speaker 2: those soft and Nvidia earnings.

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Speaker 1: Those are the markets in a moment, will bring you

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Speaker 1: more on those in Nvidia results, and also are reporting

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Speaker 1: on how countries are trying to tempt Britain super rich

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Speaker 1: to move overseas.

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Speaker 2: But first, bananas. There's an artwork that's gone on sale.

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Speaker 2: Could you believe that if you duct tape a banana

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Speaker 2: to a wall that would sell for six point two

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Speaker 2: million dollars?

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Speaker 7: Oh?

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Speaker 2: Wow?

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Speaker 1: Six I think this is extraordinary. So this is a

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Speaker 1: twenty nineteen artwork. It doesn't deconsist of a banana and

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Speaker 1: a piece of duct tape and it goes on a wall.

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Speaker 1: And it was sold at Southereby's in New York for

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Speaker 1: three times more than three times the pre sale estimates

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Speaker 1: in six minutes, apparently a furious bidding. And it was

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Speaker 1: bought this sculpture by the artist Marizio Catilan by a

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Speaker 1: crypto entrepreneur, Justin Son, who actually spoke to Willimberg.

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Speaker 2: Look this is you know he talked about that. You know,

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Speaker 2: he's bought a lot of art. He's bought purses of

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Speaker 2: Picasso and Warhol as well. Was particularly captured over this,

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Speaker 2: and he's not alone. This has gotten quite a lot

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Speaker 2: of critical acclaim. I mean, I kind of make fun

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Speaker 2: because it is a banana's altope to a wall, but

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Speaker 2: it is has also been considered to be quite an

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Speaker 2: elevated piece of art. It's been shown at the Art

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Speaker 2: Basil in Miami Beach first of all as well. It's

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Speaker 2: been drawn huge crowds too. But I think the most

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Speaker 2: bizarre part about it is that it's not like you

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Speaker 2: get the piece already installed on a wall. You just

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Speaker 2: get a banana.

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Speaker 1: Apparently of big instruction about how to hang it and

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Speaker 1: where to place it and so on. But I like

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Speaker 1: the quote from that the crypto entrepreneur. He said that

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Speaker 1: it echoes with our idea of decentralization in the crypto world.

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Speaker 1: Because this is a conceptual artwork. It's impossible for you

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Speaker 1: to destroy the artwork itself, which I thought it was

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Speaker 1: quite valiant.

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Speaker 2: I don know I've ever heard a banana at the

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Speaker 2: bottom of my rockxack. I think it different arguments about that. Anyway,

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Speaker 2: enough on that for the moment. Let's bring you more

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Speaker 2: on our charp story this morning and those results from

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Speaker 2: Nvidia beating revenue estimates in most product categories, but still

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Speaker 2: falling short of some analysts lofty expectations. Let's bring in

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Speaker 2: Bloomberg Intelligence senior analyst Robert Lee for more. Robert, how

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Speaker 2: strong then were these earnings from Nvidio in the third quarter.

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Speaker 8: I guess it's a bit of a repeat as we've

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Speaker 8: seen in many previous quarters. Within video, there were strong numbers,

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Speaker 8: but that was largely expected and built into the share price.

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Speaker 8: Share price it's been flirting with all time highs over

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Speaker 8: the last couple of weeks, and you know it's trading

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Speaker 8: on a lofty valuation. I think most would agree. The

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Speaker 8: only minor bit of disappointment was whilst the guidance for

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Speaker 8: the next quarter did actually technically beat expectations, there was

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Speaker 8: a bit of a so called whisper number out there

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Speaker 8: and the guidance didn't quite top that. And you know,

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Speaker 8: it's inevitable you're going to get a bit of profit

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Speaker 8: taking on the back of that. But I don't think

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Speaker 8: the results raised any great fundamental concern demand. He needs

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Speaker 8: to outstrip supply. It's you know, superlatives all the way.

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Speaker 1: Yeah, so that where you put the bar, and you

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Speaker 1: know how well the company's leapt over it or not.

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Speaker 1: In terms of the role out though, of the highly

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Speaker 1: anticipated black Well chip, that has been one of the issues,

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Speaker 1: and indeed we heard a bit from Jensen Wong on

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Speaker 1: that topic earlier.

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Speaker 8: No, no, absolutely, this is their next generation chip which

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Speaker 8: is sort of being sampled to customers in a moment.

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Speaker 8: I think they said they sampled to around thirteen thousand

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Speaker 8: customers during the quarter. There were some earlier production delays,

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Speaker 8: but they seem to have got through that in the

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Speaker 8: near term. However, this is a large and highly complex

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Speaker 8: chip and driving it through to volume production, which is

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Speaker 8: what's going to happen over the next two to three quarters,

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Speaker 8: is a really hard thing to do. It's a non

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Speaker 8: trivial task, and you know, you're operating at the cutting

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Speaker 8: edge of semiconductor technology. So I'm not in any way

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Speaker 8: flagging that there will be disruption, but there is definitely

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Speaker 8: scope for it when you're dealing with such a highly

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Speaker 8: technologically advanced chip. So I think there is still residual

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Speaker 8: execution risk for them and their main foundry partner, TSMC.

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Speaker 8: So I think, you know, investors definitely need to keep

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Speaker 8: that in mind, and we want to see a nice

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Speaker 8: smooth roll out and actually just one very brief thing

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Speaker 8: because the production yields and therefore the margin on this

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Speaker 8: new chip won't be particularly high in the near term

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Speaker 8: and now, and again that's as expected. That will actually

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Speaker 8: depress their gross margin a little bit. So we're going

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Speaker 8: to see the margin come off for the next few

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Speaker 8: quarters and then hopefully see a rebound into the second

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Speaker 8: half of next year. But again, you know, where's the

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Speaker 8: near term catalysts for this, where's the near term positive surprise.

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Speaker 8: It's sort of hard to see at the moment, so

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Speaker 8: I wouldn't be surprised if we see more profit taking

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Speaker 8: in the near term.

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Speaker 2: Okay, Robert ly Bloomberg Taligan Senior Analyst, thank you very

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Speaker 2: much for joining.

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Speaker 1: Us now to one of our deep dives this morning.

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Speaker 1: The UK is super rich are facing a charm offensive

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Speaker 1: to lure them to other global wealth hubs offering low attacks.

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Speaker 1: Its place is like do buy Greece and Singapore. Journy

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Speaker 1: is started to discuss this is Boomberg's Ben's suples. Ben,

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Speaker 1: very good to have you on the program. What are

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Speaker 1: they being offered? How's it being done exactly?

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Speaker 9: Morning, Carolyn, thank you for having me on. Fundamentally, the

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Speaker 9: UK's octor rich are being offered lower tax lower tax breaks,

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Speaker 9: lower tax rates, more specifically to be able to live overseas,

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Speaker 9: sometimes not even live in the location. So that is

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Speaker 9: a fundamental offering. Why because the UK has curved is

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Speaker 9: curbing as of the early next year, tax rates for

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Speaker 9: its non non population arranges from multiplionaires, the City of London, bankers.

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Speaker 3: And how are they doing this?

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Speaker 9: Well, there are road show events, for example, where you

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Speaker 9: can imagine that's trying to book a holiday. That's sort

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Speaker 9: of what's going on here. You know, there's sort of

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Speaker 9: different options being offered, so it's sort of showcase events

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Speaker 9: being offered in five star hotels and some of London's

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Speaker 9: best places that you can imagine in Knightsbridge, for example,

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Speaker 9: there was one last week, and the other side you've

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Speaker 9: got territories trying to cultivate relationships with of London firms.

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Speaker 9: Lawyers are being lobbied in the city of London right now, left,

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Speaker 9: right and center about their relationships with the world super

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Speaker 9: rich in London and just testing the waters of how

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Speaker 9: much does your client really like living in London?

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Speaker 2: Well, why now, I suppose is this about the tax changes?

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Speaker 2: What's driving this demand for these sorts of road shows.

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Speaker 9: That's exactly right. The timing, the territories that are sort

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Speaker 9: of landing in London right now. Abu Dhabi, for example,

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Speaker 9: they had an event last month in the five star

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Speaker 9: Jamiroor hotel and Knightsbridge. They do these events all over

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Speaker 9: the world, so they do it in Hong Kong elsewhere,

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Speaker 9: so they would say, oh, we always do this, but

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Speaker 9: the timing is just right now and the audience are

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Speaker 9: maybe a little bit more receptive because last month, as

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Speaker 9: we may all remember, Rachel Reeves, among many other policies

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Speaker 9: brought in sweeping changes for the UK's non regime, so

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Speaker 9: she scrapped it. She brought in a regime that's four

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Speaker 9: years for a new regime that is similar to what

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Speaker 9: we currently have, but four years versus the current term

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Speaker 9: of fifteen years. Now, if you're a non dom and

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Speaker 9: suddenly you've gone from I can claim tax breaks in

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Speaker 9: the UK fifteen years currently and then in the future

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Speaker 9: if I'm only having four, well, suddenly the game has

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Speaker 9: changed quite a lot, and that's making other countries go.

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Speaker 9: Hang on a second. I thought London was off the

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Speaker 9: cards for luring other other residents, but actually now London

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Speaker 9: is far less but attractive if you are prioritizing your

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Speaker 9: tax as a reason why you're living in this city.

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Speaker 1: Yeah, and London would argue, you know that it's more

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Speaker 1: than just that, But of course what does it mean

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Speaker 1: for the u K. And it's interesting, isn't it that

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Speaker 1: you're reporting shows that others have taken notes so much.

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Speaker 9: It really is, It really is, And I think that's

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Speaker 9: a really fair point to make about the London lifestyle

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Speaker 9: is still really attractive reason and the reason to be here.

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Speaker 9: And I think what Rachel reeves has done actually is

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Speaker 9: call the bluff of the super rich who are saying

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Speaker 9: we might go. I think what she said it okay,

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Speaker 9: if you're going to go go. You have we ringing

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Speaker 9: in a four year regime, which is quite competitive with

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Speaker 9: some other European nations. Spain has a similar regime, for example,

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Speaker 9: but Italy and Greece they have fifteen year regimes. Cyprus

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Speaker 9: has a seventeen year regime and has an event next

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Speaker 9: month in the London Stock Exchange specifically targeting non doms.

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Speaker 9: But what folks say is London has for a long

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Speaker 9: time had a very bloated millionaire population, one of the

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Speaker 9: world's highest per capita. So some folks are there saying, well,

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Speaker 9: this is maybe just a if you imagine London as

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Speaker 9: a stock maybe this is just a natural collection in

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Speaker 9: the market that's going on right now.

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Speaker 2: This is Bloomberg Daybreak Europe. You're morning brief on the

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Speaker 2: stories making news from London to Wall Streets and beyond.

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