WEBVTT - Nvidia Gives Rosy Outlook, Fed Pause Bets Grow

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Richard Salama and I'm Derek Krisner. Here are the

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

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<v Speaker 3>Let's get back to Videos, which is saying after the

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<v Speaker 3>shares up around about seven percent of the company, came

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<v Speaker 3>out with revenues for the current quarter as a projection,

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<v Speaker 3>at least saying that the current quarter will have revenues

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<v Speaker 3>of sixteen billion dollars.

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<v Speaker 1>In looking at analysts, they'd.

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<v Speaker 3>Really been doing the calculation of about twelve and a

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<v Speaker 3>half billion. These strong forecast, of course, fueled by surging

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<v Speaker 3>demand for in videos, artificial intelligence processes in data centers.

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<v Speaker 3>We had from Spear invest founder and CEO Ivana de Levska.

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<v Speaker 4>People were expecting that the cloud vendors will have their

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<v Speaker 4>own solution by now, but just because of the way

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<v Speaker 4>the generative AI wave came pretty strong, there is really

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<v Speaker 4>no time for the cloud vendors to be coming up

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<v Speaker 4>with their own solutions, so you're seeing everybody basically standardizing

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<v Speaker 4>on the Nvidia hardware.

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<v Speaker 3>Separately approved an additional twenty five billion dollars worth of

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<v Speaker 3>stock buybacks and videos with second quarter revenue the double

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<v Speaker 3>to thirteen and a half billion dollars. With the predictions

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<v Speaker 3>from analysts of about eleven billion. As I said, media

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<v Speaker 3>shares up in video shares up oh, I think just

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<v Speaker 3>about seven percent, a little bit more than seven percent.

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<v Speaker 1>Of late trade.

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<v Speaker 2>Now onto one of our top stories of the day.

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<v Speaker 2>The founder of the Wagner Mercenary Group, Yevgeny Progosion, was

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<v Speaker 2>one of the passengers on a private jet. It crashed

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<v Speaker 2>today and Russian aviation authorities are saying everyone on board

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<v Speaker 2>was killed. This aircraft, by the way, was on its

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<v Speaker 2>way from Moscow to Saint Petersburg. There was no immediate

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<v Speaker 2>comment from the Kremlin on this crash. However, US officials

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<v Speaker 2>were quick to suggest Progosion may have faced Russian President

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<v Speaker 2>Vladimir Putin's retribution. The crash did occur exactly two months

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<v Speaker 2>after Progosion attempted a military coup on the Kremlin. Here

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<v Speaker 2>is Terry Haynes of Pangea policy.

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<v Speaker 5>Both the previous episode with the Wagner Group and this

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<v Speaker 5>episode show that Russian government and Russian intentions are increasingly uncertain,

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

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<v Speaker 2>That is Terry Haynes with Pangae policy. He went on

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<v Speaker 2>to say the incident might be felt by both the

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<v Speaker 2>oil and grain markets where supplies could be impacted.

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<v Speaker 3>Rashan Right, Let's move away from the geopolitics and have

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<v Speaker 3>a look at this symposium coming up, because traders are

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<v Speaker 3>eyeing what top economic leaders have to say when they

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<v Speaker 3>gather tomorrow at that Kansas City FED Annual Economic to

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<v Speaker 3>Meet in Jacksonville, Wyoming.

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<v Speaker 1>Here's Michael McKee.

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<v Speaker 6>They will hear from FED Chair J Powell, ECB President

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<v Speaker 6>Christine Legard, Bank of England Deputy Governor Ben Broadbent, Bank

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<v Speaker 6>of Japan Governor Kazuo Yueeda is also on the agenda.

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<v Speaker 6>The focus of the conference itself is on structural changes

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<v Speaker 6>to the global economy. What happens when the COVID induced

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<v Speaker 6>economic disruptions are behind us? Do we return to the

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<v Speaker 6>low inflation, low interest rate world before the pandemic, or

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<v Speaker 6>do growth rates, inflation rates, and interest rates remain higher.

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<v Speaker 6>The event begins with a dinner Thursday night, continuing through

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<v Speaker 6>Saturday Monday. Global Wall Street can try to figure out

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

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<v Speaker 2>Well Hedge funds and private equity firms are now facing

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

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<v Speaker 7>The Securities and Exchange Commission has adopted new policies requiring

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<v Speaker 7>private funds to provide details about quarterly fees and expenses

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<v Speaker 7>to investors. Plus they are barred from charging fees to

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<v Speaker 7>cover regulatory investigations and compliance costs unless investors agree. It

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<v Speaker 7>is the latest effort by the SEC to tighten its

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<v Speaker 7>grip on the fast growing multi trillion dollar industry, which

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<v Speaker 7>is said the agency is overstepping its authority in Washington

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<v Speaker 7>and Kates Bloomberg Daybreak Asia.

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<v Speaker 2>And we're also hearing firms will be prohibited from allowing

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<v Speaker 2>some favored investors to cash out more easily than others

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<v Speaker 2>unless those deals are offered to all fund investors.

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<v Speaker 1>Rashad all Right.

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<v Speaker 3>Chinese presidents called on the Bricks Block of Emerging Markets

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<v Speaker 3>to fast track plan to expand its membership. Let's get

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<v Speaker 3>details now from bloombigs Joanne Wall.

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<v Speaker 8>She told a summit in South Africa that he's glad

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<v Speaker 8>to see growing enthusiasm from developing countries about participating in BRIGGS.

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<v Speaker 8>The Chinese President's comments also come after Indian Prime Minister

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<v Speaker 8>Narendra Modi said he fully supported expanding the block. We

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<v Speaker 8>hear BRICKS Leader will make a more detailed announcement on

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<v Speaker 8>clearing the path for more members that will occur before

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<v Speaker 8>the conclusion of their annual summit in Johannesburg, which ends

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<v Speaker 8>on Thursday. The five nation Bricks group currently includes Russia, India,

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<v Speaker 8>and Brazil, as well as the summers host South Africa.

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<v Speaker 8>Some twenty nations have formerly applied to join the grouping,

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<v Speaker 8>and we hear they include Saudi Arabia, Indonesia, and Egypt.

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<v Speaker 8>In Hong Kong, I'm joined Wang Bloomberg Day Bregaisia.

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<v Speaker 2>We were talking a moment ago about the rally in

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<v Speaker 2>the US equity market. Today the Nasdaq composite jumping one

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<v Speaker 2>point six percent. Now, equity market players appear to be

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<v Speaker 2>more optimistic. The Trader sentiment survey from Charles Schwab found

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<v Speaker 2>forty four percent are now bullish. That's up from thirty

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<v Speaker 2>two percent in the second quarter, and at the same time,

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<v Speaker 2>fewer clients think a recession here in the States is likely.

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<v Speaker 2>Sixty nine percent of Schwab's trader clients still think the

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<v Speaker 2>economy will officially enter recession, but that's down from eighty

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<v Speaker 2>six percent in the prior quarter. Let's get to Global

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<v Speaker 2>News next here on Daybreak Asia. And as as we've

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<v Speaker 2>been reporting, Russian aviation authorities are saying that Wagner Mercenary

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<v Speaker 2>Group leader, if Guany Progosion, has been killed in a

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<v Speaker 2>private plane crash in Russia. Let's get to Ed Baxter

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<v Speaker 2>for more.

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<v Speaker 9>Eddie, all right, thank you, Doug, you're right provotion. Of course,

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<v Speaker 9>the man who had threatened a coup two months ago

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<v Speaker 9>in Russia Bloomberg's Kaylee Lions.

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<v Speaker 10>Here pass The Russian state media is reporting that, indeed,

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<v Speaker 10>it is confirmed that Progosion was on this plane. Of course,

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<v Speaker 10>it had already been reported in Russian state media that

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<v Speaker 10>he was on the passenger list, but they are saying

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<v Speaker 10>that he was on board this aircraft, this jet, that craft,

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<v Speaker 10>leaving no survivors among the three pilots or seven passengers.

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<v Speaker 9>Now, US President Joe Biden has been briefed.

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<v Speaker 10>He spoke to reporters after being briefed on the plane

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<v Speaker 10>crash by those close to him, and he said he

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<v Speaker 10>does not know for a fact what happened, but he

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<v Speaker 10>is not surprised. The exact quote, I'm not surprised. And

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<v Speaker 10>when he was asked if Putin was behind it. He said,

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<v Speaker 10>there's not much that happens in Russia that Putin is

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

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<v Speaker 9>Yeah, he says, this is a way that Russia works.

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<v Speaker 9>Dueling Republican Party events tonight GOP Debate and Donald Trump

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<v Speaker 9>with Tucker Carlson Bloomberg's Jordan Fabian.

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<v Speaker 11>Here, the path to winning the nomination is taking on Trump,

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<v Speaker 11>but the political market is not incentivizing them to do

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<v Speaker 11>it on the Republican side, So it's really a tough

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<v Speaker 11>conundrum for all of these candidates, including Rod DeSantis on

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<v Speaker 11>the stage about how to break through and get after

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<v Speaker 11>Donald Trump.

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<v Speaker 9>Yeah, and then the Trump Carlson.

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<v Speaker 11>It's important to remember that this interview is pre taped,

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<v Speaker 11>so I wouldn't expect any live reaction to what's going

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<v Speaker 11>on on the stage with him in Tucker, but I

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<v Speaker 11>think you would expect Donald Trump to hit Ronda Santis

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<v Speaker 11>as he has done for months now and also really

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<v Speaker 11>exhibited general election strategies.

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<v Speaker 9>Yeah. Because it's pre recorded, one wonders whether it's been

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<v Speaker 9>edited as well. Former Trump attorney Rudy Giuliani, meanwhile, is

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<v Speaker 9>surrendered in Georgia today agreed to a one hundred and

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

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<v Speaker 9>Da Fanie Willis will go down in history as having

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<v Speaker 9>conducted the worst investigation under the US Constitution.

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<v Speaker 12>People's first Amendment right to advocate the government, to petition

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<v Speaker 12>the government grievances like an election they believe was poorly

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<v Speaker 12>conducted or falsely conducted.

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<v Speaker 1>People have a right to believe that in America now.

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<v Speaker 9>Earlier, in talking with the reporters when he was on

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<v Speaker 9>his way to Georgia, he said, whether you like Trump

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

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<v Speaker 9>had his mugshot taken.

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<v Speaker 1>I'm a big boy.

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<v Speaker 12>I can take it. I fought battles much worse than

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<v Speaker 12>it against people much tougher than them.

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<v Speaker 9>So he is at least hanging publicly with Trump. By

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<v Speaker 9>the way, as I say, the mugshot has been released

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<v Speaker 9>to the media if you're interested in taking a gander.

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<v Speaker 9>Biden administration is in talks with Venezuela to explore a

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<v Speaker 9>temporary lifting of crippling sanctions in exchange for allowing fair

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<v Speaker 9>elections next year. The story here from Bloomberg's Charlie Pellette.

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<v Speaker 13>Sources say the preliminary discussions involved senior officials from both nations,

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<v Speaker 13>including Venezuela's Head of Congress, Or Hey Rodriguez Washington, who's

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<v Speaker 13>floated the idea of sanctions relief to persuade the regime

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<v Speaker 13>of President Nicholas Maduro to hold a competitive presidential vote

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<v Speaker 13>in twenty twenty four and free political prisoners. Sanctions have

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<v Speaker 13>aggravated Venezuela's economic and humanitarian crisis by hindering oil sales,

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<v Speaker 13>though they failed in their original objective of ousting Maduro.

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<v Speaker 13>In New York, Charlie Pellett Bloomberg Radio.

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<v Speaker 9>All right, thank you very much, Charlie. Global News power

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<v Speaker 9>by more than twenty seven hundred journalists and analysts in

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

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<v Speaker 9>at Baxter and this is Bloomberg.

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<v Speaker 2>Let's get to our guest. Eric Sterner is with us.

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<v Speaker 2>He is the chief investment officer at a Pollen Wealth Management.

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<v Speaker 2>He joins us from Martinsville, New Jersey, right outside New York. Eric,

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<v Speaker 2>thanks for being with us. First, your reaction to the

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<v Speaker 2>numbers that we had after the bell from in video

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<v Speaker 2>seems like another stunner.

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

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<v Speaker 14>The video has been at the center of this AI

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<v Speaker 14>frenzy and that's what's really driven the market this year.

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<v Speaker 14>And they continue to just exceed expectations, and they gave

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<v Speaker 14>the markets and the bulls or shot another shot of

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<v Speaker 14>optimism as the market was starting to pull back over

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<v Speaker 14>the last few weeks.

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<v Speaker 1>Eric, I mean, you.

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<v Speaker 3>Know, you look at what people you know, look, anything

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<v Speaker 3>which has got AI is just getting a rocket put

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<v Speaker 3>underneath it in recent months.

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<v Speaker 1>You know, what are they actually price singing?

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<v Speaker 13>Is it?

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<v Speaker 1>You know all the jam coming tomorrow.

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<v Speaker 14>In ef fact, Well, yeah, I mean that that's with

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<v Speaker 14>all new technology or that that could revolutionize sectors. You know,

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<v Speaker 14>there's always this bubble that that builds up, and I

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

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<v Speaker 14>So I'm not I'm not saying there's gonna be a

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<v Speaker 14>bubble burst. But we saw that, you know, going back

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<v Speaker 14>for those of us who are around for the dot

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<v Speaker 14>com craze, when there was that big bubble that that

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<v Speaker 14>that came about, and then of course we had that

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<v Speaker 14>the dot com bust in two thousand and one, So

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<v Speaker 14>I think you know AI, certainly I'm not. I'm not

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<v Speaker 14>downgrading or or you know how AI is going to

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<v Speaker 14>change potentially a lot of industries and increased productivity. But

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<v Speaker 14>I do think we're starting to see a bubble build

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<v Speaker 14>out here because we don't know who the winners are

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<v Speaker 14>going to be. Clearly, Navidia is in the position to

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<v Speaker 14>own it right now, but a lot can change between

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<v Speaker 14>now and you know, the next few years.

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<v Speaker 2>So in the walk up to the in Nvidia earnings,

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<v Speaker 2>there's been this debate in the marks to whether or

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<v Speaker 2>not in video was a more important factor than the

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<v Speaker 2>speech we're going to get at the end of the

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<v Speaker 2>week from Fed shared J. Powell, how do you weigh

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<v Speaker 2>in on what's been happening in the bond market today,

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<v Speaker 2>in particular with yields kind of tumbling right across the curve.

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<v Speaker 2>We had some week PMI data, not just for the

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<v Speaker 2>US but Europe. Are yields kind of have they topped out?

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<v Speaker 2>Let me ask that first.

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<v Speaker 14>I think they are starting to top out. We've seen

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<v Speaker 14>the economy continue to grow even with all these rapid

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<v Speaker 14>series of rate hikes, and even I know the Atlanta

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<v Speaker 14>Fed predicted GDP to be five point eight percent in

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<v Speaker 14>the third quarter, which I don't think anyone really believes

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<v Speaker 14>is going to be that optimistic. But we're seeing many

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<v Speaker 14>mixed signals with the economy, and I do think, you know,

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<v Speaker 14>the economy is starting to contract, so I do think

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<v Speaker 14>yields will start to come down. As far as the

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<v Speaker 14>news this week coming out of Jackson Hole, I don't

0:11:58.520 --> 0:12:01.679
<v Speaker 14>expect any big news other then Powell reiterating what he

0:12:01.760 --> 0:12:05.200
<v Speaker 14>has told us that inflation, yes, we are making progress,

0:12:05.280 --> 0:12:08.040
<v Speaker 14>but we still have a long ways to go. And

0:12:08.080 --> 0:12:11.080
<v Speaker 14>I think we're going to stay with restrictive rates over

0:12:11.160 --> 0:12:15.280
<v Speaker 14>us for probably up until at the best. But I

0:12:15.320 --> 0:12:17.040
<v Speaker 14>don't think we're on see any cuts until the second

0:12:17.080 --> 0:12:19.679
<v Speaker 14>half of twenty twenty four. And I'm sure Pal's going

0:12:19.720 --> 0:12:23.320
<v Speaker 14>to leave the door open for another rate or potentially

0:12:23.360 --> 0:12:26.160
<v Speaker 14>two more rate hikes in the coming months, depending upon

0:12:26.240 --> 0:12:27.280
<v Speaker 14>how the data comes in.

0:12:28.120 --> 0:12:28.320
<v Speaker 12>Yeah.

0:12:28.360 --> 0:12:28.800
<v Speaker 1>Absolutely.

0:12:28.880 --> 0:12:31.440
<v Speaker 3>You make a very interesting point here that the in

0:12:31.440 --> 0:12:34.480
<v Speaker 3>the Fed's history, it's only cut rates six times when

0:12:34.520 --> 0:12:36.559
<v Speaker 3>unemployment was below four percent.

0:12:37.360 --> 0:12:41.000
<v Speaker 14>Exactly exactly. I think. I mean, because the economy is

0:12:41.040 --> 0:12:45.120
<v Speaker 14>doing well, what is just giving more room for the

0:12:45.160 --> 0:12:48.880
<v Speaker 14>Fed to maintain these restrictive rate levels. So I just

0:12:48.920 --> 0:12:52.760
<v Speaker 14>don't see the FED seeing any reason to cut rates

0:12:52.840 --> 0:12:57.640
<v Speaker 14>right now because I think there's high expectations in the

0:12:57.679 --> 0:13:00.240
<v Speaker 14>markets that were the inflation is going to be a

0:13:00.480 --> 0:13:05.000
<v Speaker 14>bumpy and we've see increased energy prices, We've seen continue

0:13:05.040 --> 0:13:08.120
<v Speaker 14>to see high wage growths. Yes, it's slowing down, but

0:13:08.280 --> 0:13:10.520
<v Speaker 14>still higher than the want to see because of the

0:13:10.559 --> 0:13:14.600
<v Speaker 14>tight labor market. And of course, with Russia exiting the

0:13:14.960 --> 0:13:19.640
<v Speaker 14>Black Sea Green initiative, that's going to keep some inflation

0:13:19.679 --> 0:13:22.360
<v Speaker 14>pressure on food prices. So with all that in mind,

0:13:23.000 --> 0:13:25.880
<v Speaker 14>I don't see the FED have any as any near

0:13:25.960 --> 0:13:29.320
<v Speaker 14>term intentions of cutting rates this year, and probably not

0:13:29.440 --> 0:13:32.720
<v Speaker 14>until the second half of twenty twenty four at best.

0:13:32.920 --> 0:13:35.280
<v Speaker 2>One of our stories today is how global investors have

0:13:35.400 --> 0:13:38.760
<v Speaker 2>been shedding the big blue chip names in China during

0:13:38.800 --> 0:13:43.720
<v Speaker 2>the longest stretch of outflows on record very quickly. Eric,

0:13:43.840 --> 0:13:46.680
<v Speaker 2>would you be long the Chinese market given that we

0:13:46.720 --> 0:13:50.040
<v Speaker 2>have seen just stunning punishment of asset prices right now,

0:13:50.080 --> 0:13:51.720
<v Speaker 2>maybe now is a buying opportunity.

0:13:52.880 --> 0:13:56.160
<v Speaker 14>Yeah, in the long run, absolutely. I think in the

0:13:56.160 --> 0:13:59.240
<v Speaker 14>short term, I think we could still see some more

0:13:59.360 --> 0:14:05.120
<v Speaker 14>downside with China, but we know that's number two global economy.

0:14:04.880 --> 0:14:07.760
<v Speaker 14>So yes, if you're looking years out when I have

0:14:07.760 --> 0:14:09.400
<v Speaker 14>a long term play, I think it's a great time

0:14:09.440 --> 0:14:12.880
<v Speaker 14>to buy. But I do think they have many issues

0:14:12.920 --> 0:14:17.160
<v Speaker 14>there and the aging demographics, high youth unemployment that they

0:14:17.200 --> 0:14:20.880
<v Speaker 14>need to straighten out. And they're still trying to transition

0:14:21.040 --> 0:14:25.600
<v Speaker 14>from a nation that depended upon exports to more consumer

0:14:25.640 --> 0:14:27.920
<v Speaker 14>spending and that's going to take some time. So I

0:14:27.960 --> 0:14:31.240
<v Speaker 14>do expect some more short term pain in China over

0:14:31.320 --> 0:14:33.360
<v Speaker 14>the next year or so.

0:14:33.440 --> 0:14:35.880
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