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Speaker 1: Good morning.

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Speaker 2: I'm Richard Salama and I'm Derek Krisner. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: Let's get back to Videos, which is saying after the

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Speaker 3: shares up around about seven percent of the company, came

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Speaker 3: out with revenues for the current quarter as a projection,

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Speaker 3: at least saying that the current quarter will have revenues

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Speaker 3: of sixteen billion dollars.

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Speaker 1: In looking at analysts, they'd.

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Speaker 3: Really been doing the calculation of about twelve and a

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Speaker 3: half billion. These strong forecast, of course, fueled by surging

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Speaker 3: demand for in videos, artificial intelligence processes in data centers.

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Speaker 3: We had from Spear invest founder and CEO Ivana de Levska.

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Speaker 4: People were expecting that the cloud vendors will have their

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Speaker 4: own solution by now, but just because of the way

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Speaker 4: the generative AI wave came pretty strong, there is really

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Speaker 4: no time for the cloud vendors to be coming up

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Speaker 4: with their own solutions, so you're seeing everybody basically standardizing

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Speaker 4: on the Nvidia hardware.

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Speaker 3: Separately approved an additional twenty five billion dollars worth of

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Speaker 3: stock buybacks and videos with second quarter revenue the double

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Speaker 3: to thirteen and a half billion dollars. With the predictions

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Speaker 3: from analysts of about eleven billion. As I said, media

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Speaker 3: shares up in video shares up oh, I think just

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Speaker 3: about seven percent, a little bit more than seven percent.

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Speaker 1: Of late trade.

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Speaker 2: Now onto one of our top stories of the day.

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Speaker 2: The founder of the Wagner Mercenary Group, Yevgeny Progosion, was

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Speaker 2: one of the passengers on a private jet. It crashed

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Speaker 2: today and Russian aviation authorities are saying everyone on board

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Speaker 2: was killed. This aircraft, by the way, was on its

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Speaker 2: way from Moscow to Saint Petersburg. There was no immediate

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Speaker 2: comment from the Kremlin on this crash. However, US officials

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Speaker 2: were quick to suggest Progosion may have faced Russian President

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Speaker 2: Vladimir Putin's retribution. The crash did occur exactly two months

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Speaker 2: after Progosion attempted a military coup on the Kremlin. Here

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Speaker 2: is Terry Haynes of Pangea policy.

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Speaker 5: Both the previous episode with the Wagner Group and this

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Speaker 5: episode show that Russian government and Russian intentions are increasingly uncertain,

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Speaker 5: and that's a very bad thing for markets, among others.

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Speaker 2: That is Terry Haynes with Pangae policy. He went on

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Speaker 2: to say the incident might be felt by both the

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Speaker 2: oil and grain markets where supplies could be impacted.

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Speaker 3: Rashan Right, Let's move away from the geopolitics and have

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Speaker 3: a look at this symposium coming up, because traders are

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Speaker 3: eyeing what top economic leaders have to say when they

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Speaker 3: gather tomorrow at that Kansas City FED Annual Economic to

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Speaker 3: Meet in Jacksonville, Wyoming.

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Speaker 1: Here's Michael McKee.

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Speaker 6: They will hear from FED Chair J Powell, ECB President

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Speaker 6: Christine Legard, Bank of England Deputy Governor Ben Broadbent, Bank

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Speaker 6: of Japan Governor Kazuo Yueeda is also on the agenda.

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Speaker 6: The focus of the conference itself is on structural changes

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Speaker 6: to the global economy. What happens when the COVID induced

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Speaker 6: economic disruptions are behind us? Do we return to the

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Speaker 6: low inflation, low interest rate world before the pandemic, or

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Speaker 6: do growth rates, inflation rates, and interest rates remain higher.

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Speaker 6: The event begins with a dinner Thursday night, continuing through

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Speaker 6: Saturday Monday. Global Wall Street can try to figure out

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Speaker 6: if there were any answers here. Michael McKee, Bloomberg, Jackson Hall, Wyoming.

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Speaker 2: Well Hedge funds and private equity firms are now facing

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Speaker 2: some new rules on disclosure the story from Bloomberg's and Kates.

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Speaker 7: The Securities and Exchange Commission has adopted new policies requiring

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Speaker 7: private funds to provide details about quarterly fees and expenses

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Speaker 7: to investors. Plus they are barred from charging fees to

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Speaker 7: cover regulatory investigations and compliance costs unless investors agree. It

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Speaker 7: is the latest effort by the SEC to tighten its

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Speaker 7: grip on the fast growing multi trillion dollar industry, which

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Speaker 7: is said the agency is overstepping its authority in Washington

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Speaker 7: and Kates Bloomberg Daybreak Asia.

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Speaker 2: And we're also hearing firms will be prohibited from allowing

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Speaker 2: some favored investors to cash out more easily than others

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Speaker 2: unless those deals are offered to all fund investors.

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Speaker 1: Rashad all Right.

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Speaker 3: Chinese presidents called on the Bricks Block of Emerging Markets

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Speaker 3: to fast track plan to expand its membership. Let's get

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Speaker 3: details now from bloombigs Joanne Wall.

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Speaker 8: She told a summit in South Africa that he's glad

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Speaker 8: to see growing enthusiasm from developing countries about participating in BRIGGS.

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Speaker 8: The Chinese President's comments also come after Indian Prime Minister

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Speaker 8: Narendra Modi said he fully supported expanding the block. We

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Speaker 8: hear BRICKS Leader will make a more detailed announcement on

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Speaker 8: clearing the path for more members that will occur before

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Speaker 8: the conclusion of their annual summit in Johannesburg, which ends

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Speaker 8: on Thursday. The five nation Bricks group currently includes Russia, India,

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Speaker 8: and Brazil, as well as the summers host South Africa.

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Speaker 8: Some twenty nations have formerly applied to join the grouping,

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Speaker 8: and we hear they include Saudi Arabia, Indonesia, and Egypt.

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Speaker 8: In Hong Kong, I'm joined Wang Bloomberg Day Bregaisia.

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Speaker 2: We were talking a moment ago about the rally in

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Speaker 2: the US equity market. Today the Nasdaq composite jumping one

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Speaker 2: point six percent. Now, equity market players appear to be

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Speaker 2: more optimistic. The Trader sentiment survey from Charles Schwab found

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Speaker 2: forty four percent are now bullish. That's up from thirty

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Speaker 2: two percent in the second quarter, and at the same time,

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Speaker 2: fewer clients think a recession here in the States is likely.

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Speaker 2: Sixty nine percent of Schwab's trader clients still think the

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Speaker 2: economy will officially enter recession, but that's down from eighty

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Speaker 2: six percent in the prior quarter. Let's get to Global

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Speaker 2: News next here on Daybreak Asia. And as as we've

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Speaker 2: been reporting, Russian aviation authorities are saying that Wagner Mercenary

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Speaker 2: Group leader, if Guany Progosion, has been killed in a

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Speaker 2: private plane crash in Russia. Let's get to Ed Baxter

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Speaker 2: for more.

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Speaker 9: Eddie, all right, thank you, Doug, you're right provotion. Of course,

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Speaker 9: the man who had threatened a coup two months ago

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Speaker 9: in Russia Bloomberg's Kaylee Lions.

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Speaker 10: Here pass The Russian state media is reporting that, indeed,

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Speaker 10: it is confirmed that Progosion was on this plane. Of course,

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Speaker 10: it had already been reported in Russian state media that

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Speaker 10: he was on the passenger list, but they are saying

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Speaker 10: that he was on board this aircraft, this jet, that craft,

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Speaker 10: leaving no survivors among the three pilots or seven passengers.

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Speaker 9: Now, US President Joe Biden has been briefed.

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Speaker 10: He spoke to reporters after being briefed on the plane

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Speaker 10: crash by those close to him, and he said he

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Speaker 10: does not know for a fact what happened, but he

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Speaker 10: is not surprised. The exact quote, I'm not surprised. And

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Speaker 10: when he was asked if Putin was behind it. He said,

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Speaker 10: there's not much that happens in Russia that Putin is

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Speaker 10: not behind, but I don't know enough to know the answer.

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Speaker 9: Yeah, he says, this is a way that Russia works.

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Speaker 9: Dueling Republican Party events tonight GOP Debate and Donald Trump

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Speaker 9: with Tucker Carlson Bloomberg's Jordan Fabian.

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Speaker 11: Here, the path to winning the nomination is taking on Trump,

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Speaker 11: but the political market is not incentivizing them to do

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Speaker 11: it on the Republican side, So it's really a tough

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Speaker 11: conundrum for all of these candidates, including Rod DeSantis on

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Speaker 11: the stage about how to break through and get after

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Speaker 11: Donald Trump.

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Speaker 9: Yeah, and then the Trump Carlson.

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Speaker 11: It's important to remember that this interview is pre taped,

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Speaker 11: so I wouldn't expect any live reaction to what's going

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Speaker 11: on on the stage with him in Tucker, but I

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Speaker 11: think you would expect Donald Trump to hit Ronda Santis

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Speaker 11: as he has done for months now and also really

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Speaker 11: exhibited general election strategies.

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Speaker 9: Yeah. Because it's pre recorded, one wonders whether it's been

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Speaker 9: edited as well. Former Trump attorney Rudy Giuliani, meanwhile, is

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Speaker 9: surrendered in Georgia today agreed to a one hundred and

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Speaker 9: fifty thousand dollars bond. Spoke with reporters on his way out, saying,

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Speaker 9: Da Fanie Willis will go down in history as having

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Speaker 9: conducted the worst investigation under the US Constitution.

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Speaker 12: People's first Amendment right to advocate the government, to petition

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Speaker 12: the government grievances like an election they believe was poorly

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Speaker 12: conducted or falsely conducted.

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Speaker 1: People have a right to believe that in America now.

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Speaker 9: Earlier, in talking with the reporters when he was on

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Speaker 9: his way to Georgia, he said, whether you like Trump

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Speaker 9: or not, they will come after you too. And he's

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Speaker 9: had his mugshot taken.

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Speaker 1: I'm a big boy.

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Speaker 12: I can take it. I fought battles much worse than

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Speaker 12: it against people much tougher than them.

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Speaker 9: So he is at least hanging publicly with Trump. By

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Speaker 9: the way, as I say, the mugshot has been released

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Speaker 9: to the media if you're interested in taking a gander.

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Speaker 9: Biden administration is in talks with Venezuela to explore a

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Speaker 9: temporary lifting of crippling sanctions in exchange for allowing fair

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Speaker 9: elections next year. The story here from Bloomberg's Charlie Pellette.

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Speaker 13: Sources say the preliminary discussions involved senior officials from both nations,

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Speaker 13: including Venezuela's Head of Congress, Or Hey Rodriguez Washington, who's

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Speaker 13: floated the idea of sanctions relief to persuade the regime

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Speaker 13: of President Nicholas Maduro to hold a competitive presidential vote

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Speaker 13: in twenty twenty four and free political prisoners. Sanctions have

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Speaker 13: aggravated Venezuela's economic and humanitarian crisis by hindering oil sales,

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Speaker 13: though they failed in their original objective of ousting Maduro.

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Speaker 13: In New York, Charlie Pellett Bloomberg Radio.

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Speaker 9: All right, thank you very much, Charlie. Global News power

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Speaker 9: by more than twenty seven hundred journalists and analysts in

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Speaker 9: over one hundred and twenty countries. In San Francisco, I'm

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Speaker 9: at Baxter and this is Bloomberg.

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Speaker 2: Let's get to our guest. Eric Sterner is with us.

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Speaker 2: He is the chief investment officer at a Pollen Wealth Management.

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Speaker 2: He joins us from Martinsville, New Jersey, right outside New York. Eric,

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Speaker 2: thanks for being with us. First, your reaction to the

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Speaker 2: numbers that we had after the bell from in video

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Speaker 2: seems like another stunner.

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Speaker 14: Yeah, well thanks for having me, and yeah, no, it's amazing.

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Speaker 14: The video has been at the center of this AI

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Speaker 14: frenzy and that's what's really driven the market this year.

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Speaker 14: And they continue to just exceed expectations, and they gave

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Speaker 14: the markets and the bulls or shot another shot of

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Speaker 14: optimism as the market was starting to pull back over

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Speaker 14: the last few weeks.

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Speaker 1: Eric, I mean, you.

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Speaker 3: Know, you look at what people you know, look, anything

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Speaker 3: which has got AI is just getting a rocket put

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Speaker 3: underneath it in recent months.

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Speaker 1: You know, what are they actually price singing?

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Speaker 13: Is it?

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Speaker 1: You know all the jam coming tomorrow.

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Speaker 14: In ef fact, Well, yeah, I mean that that's with

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Speaker 14: all new technology or that that could revolutionize sectors. You know,

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Speaker 14: there's always this bubble that that builds up, and I

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Speaker 14: think we're still at the very early stages of a bubble.

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Speaker 14: So I'm not I'm not saying there's gonna be a

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Speaker 14: bubble burst. But we saw that, you know, going back

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Speaker 14: for those of us who are around for the dot

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Speaker 14: com craze, when there was that big bubble that that

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Speaker 14: that came about, and then of course we had that

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Speaker 14: the dot com bust in two thousand and one, So

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Speaker 14: I think you know AI, certainly I'm not. I'm not

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Speaker 14: downgrading or or you know how AI is going to

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Speaker 14: change potentially a lot of industries and increased productivity. But

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Speaker 14: I do think we're starting to see a bubble build

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Speaker 14: out here because we don't know who the winners are

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Speaker 14: going to be. Clearly, Navidia is in the position to

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Speaker 14: own it right now, but a lot can change between

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Speaker 14: now and you know, the next few years.

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Speaker 2: So in the walk up to the in Nvidia earnings,

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Speaker 2: there's been this debate in the marks to whether or

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Speaker 2: not in video was a more important factor than the

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Speaker 2: speech we're going to get at the end of the

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Speaker 2: week from Fed shared J. Powell, how do you weigh

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Speaker 2: in on what's been happening in the bond market today,

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Speaker 2: in particular with yields kind of tumbling right across the curve.

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Speaker 2: We had some week PMI data, not just for the

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Speaker 2: US but Europe. Are yields kind of have they topped out?

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Speaker 2: Let me ask that first.

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Speaker 14: I think they are starting to top out. We've seen

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Speaker 14: the economy continue to grow even with all these rapid

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Speaker 14: series of rate hikes, and even I know the Atlanta

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Speaker 14: Fed predicted GDP to be five point eight percent in

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Speaker 14: the third quarter, which I don't think anyone really believes

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Speaker 14: is going to be that optimistic. But we're seeing many

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Speaker 14: mixed signals with the economy, and I do think, you know,

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Speaker 14: the economy is starting to contract, so I do think

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Speaker 14: yields will start to come down. As far as the

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Speaker 14: news this week coming out of Jackson Hole, I don't

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Speaker 14: expect any big news other then Powell reiterating what he

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Speaker 14: has told us that inflation, yes, we are making progress,

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Speaker 14: but we still have a long ways to go. And

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Speaker 14: I think we're going to stay with restrictive rates over

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Speaker 14: us for probably up until at the best. But I

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Speaker 14: don't think we're on see any cuts until the second

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Speaker 14: half of twenty twenty four. And I'm sure Pal's going

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Speaker 14: to leave the door open for another rate or potentially

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Speaker 14: two more rate hikes in the coming months, depending upon

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Speaker 14: how the data comes in.

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Speaker 12: Yeah.

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Speaker 1: Absolutely.

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Speaker 3: You make a very interesting point here that the in

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Speaker 3: the Fed's history, it's only cut rates six times when

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Speaker 3: unemployment was below four percent.

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Speaker 14: Exactly exactly. I think. I mean, because the economy is

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Speaker 14: doing well, what is just giving more room for the

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Speaker 14: Fed to maintain these restrictive rate levels. So I just

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Speaker 14: don't see the FED seeing any reason to cut rates

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Speaker 14: right now because I think there's high expectations in the

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Speaker 14: markets that were the inflation is going to be a

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Speaker 14: bumpy and we've see increased energy prices, We've seen continue

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Speaker 14: to see high wage growths. Yes, it's slowing down, but

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Speaker 14: still higher than the want to see because of the

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Speaker 14: tight labor market. And of course, with Russia exiting the

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Speaker 14: Black Sea Green initiative, that's going to keep some inflation

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Speaker 14: pressure on food prices. So with all that in mind,

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Speaker 14: I don't see the FED have any as any near

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Speaker 14: term intentions of cutting rates this year, and probably not

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Speaker 14: until the second half of twenty twenty four at best.

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Speaker 2: One of our stories today is how global investors have

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Speaker 2: been shedding the big blue chip names in China during

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Speaker 2: the longest stretch of outflows on record very quickly. Eric,

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Speaker 2: would you be long the Chinese market given that we

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Speaker 2: have seen just stunning punishment of asset prices right now,

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Speaker 2: maybe now is a buying opportunity.

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Speaker 14: Yeah, in the long run, absolutely. I think in the

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Speaker 14: short term, I think we could still see some more

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Speaker 14: downside with China, but we know that's number two global economy.

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Speaker 14: So yes, if you're looking years out when I have

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Speaker 14: a long term play, I think it's a great time

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Speaker 14: to buy. But I do think they have many issues

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Speaker 14: there and the aging demographics, high youth unemployment that they

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Speaker 14: need to straighten out. And they're still trying to transition

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Speaker 14: from a nation that depended upon exports to more consumer

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Speaker 14: spending and that's going to take some time. So I

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Speaker 14: do expect some more short term pain in China over

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Speaker 14: the next year or so.

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