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Speaker 1: Good morning.

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Speaker 2: I'm John Tucker and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: Karen, this may be the most anticipated earnings report of

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Speaker 3: the season. Later today, we're going to find out how

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Speaker 3: Nvidia fared in as second quarter. Mustock has been the

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Speaker 3: poster child for excitement or artificial intelligence. It's at more

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Speaker 3: than two hundred percent so far this year, and let's

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Speaker 3: get more from Bloomberg Intelligence senior technology analyst Man Deep Sing.

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Speaker 4: They've built a business that could generate almost fifty billion

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Speaker 4: dollars in revenue by twenty twenty five. This is huge,

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Speaker 4: I mean in terms of creating a new category and

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Speaker 4: you know, getting that kind of lift. The bigger question

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Speaker 4: to me is it was a monster beat last quarter.

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Speaker 4: The expectations have gone up a lot since then, and

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Speaker 4: right now we're talking about a fifty billion dollars run

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Speaker 4: rate for data center by twenty twenty five.

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Speaker 5: What can they do more?

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Speaker 4: Because when you're training at this rich valuation, the expectation

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Speaker 4: is if you're in line, that's.

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Speaker 3: Not enough, Man Deep Singloomberg Intelligence is nearly ninety percent

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Speaker 3: of analyst tracked by Bloomberg recommend buying in Vidia.

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Speaker 2: Well Well, Wall Street Awaits and Vidia Earnings. John Banks

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Speaker 2: are also in focus. This time, mid sized lenders are

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Speaker 2: under the microscope. The FDIC is set to propose new

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Speaker 2: regulations for those banks, and we get the details from

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Speaker 2: Bloomberg's Doug Krosner.

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Speaker 6: The plan will be unveiled next week and would require

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Speaker 6: banks with as little as one hundred billion dollars in

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Speaker 6: assets to issue enough long term debt to cover capital

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Speaker 6: losses if those lenders ever failed. The FDIC will also

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Speaker 6: unveil a plan to make those same banks fortify their

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Speaker 6: hypothetical wind down plans. It's the latest response to the

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Speaker 6: collapse of three regional banks back in March. The issue

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Speaker 6: of who should shoulder cost for bank failures became contentious

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Speaker 6: when the FDIC had to cover all deposits of Silicon

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Speaker 6: Valley Bank and Signature Bank, including those that were unsecured

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Speaker 6: in New York. I'm Doug Prisner, Bloomberg Daybreak.

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Speaker 3: Thanks Doug. There's also news this morning on the post

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Speaker 3: to get workers back to the office Now Goldwyn SA

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Speaker 3: dialing up pressure to get employees back five days a week.

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Speaker 3: That story from Bloomberg's Charlie Pellett.

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Speaker 1: The Wall Street Giant is embarking on a fresh effort

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Speaker 1: to enforce its policy of working from the office five

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Speaker 1: days a week. Though revenue producing employees have mostly returned

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Speaker 1: full time, senior managers have grown frustrated by the reluctance

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Speaker 1: of staff in other groups, constituting a significant chunk of

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Speaker 1: its workforce. Goldman has been one of Wall Street's most

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Speaker 1: ardent return to office champions in New York. Charlie Pellette,

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Speaker 1: Bloomberg Day Break.

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Speaker 2: All right, Charlie, thank you, what we have some news

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Speaker 2: on the labor front this morning. Ups employees have a

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Speaker 2: new contract. Union workers ratified a new five year labor agreement.

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Speaker 2: It delivers substantial wage increases and the intense period of

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Speaker 2: negotiating that threaten to strike and.

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Speaker 3: Shears of Nike phil another one point three percent yesterday,

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Speaker 3: So that brings the stocks losing streak to nine days,

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Speaker 3: the longest since the company's initial public offering back in

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Speaker 3: nineteen eighty. Nike shares have dropped seven percent in that period.

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Speaker 3: The latest slump appears tied to weak earnings from Dick's

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Speaker 3: Sporting Goods is also concerned about softening demand in China.

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Speaker 7: Well.

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Speaker 2: Speaking of China, John It looks like a global Investors

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Speaker 2: have been shedding blue chip stocks in the country, accounting

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Speaker 2: for the longest stretch of outflows on record. Overseas funds

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Speaker 2: have been fleeing China's mainline market, off floating the equivalent

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Speaker 2: of ten point seven billion dollars in a thirteen day

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Speaker 2: run of withdrawals. That's the longest since Bloomberg began shracking

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Speaker 2: the data in twenty sixteen.

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Speaker 3: And turning to politics now, Karen Tonight, he's the first

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Speaker 3: US Republican presidential debate. The GOP front runner Donald Trump

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Speaker 3: will be notably absent from the event. Let's get more

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Speaker 3: from Bloomberg political contruder Jeanie Sheen Zino.

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Speaker 7: Donald Trump is running like an incumbent president. You know,

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Speaker 7: he is somebody who never said that he lost the

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Speaker 7: twenty twenty election. In his mind, he is president, and

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Speaker 7: president's incumbent. Presidents running for reelection don't participate in these

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Speaker 7: kinds of things. You know, he is playing it like that,

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Speaker 7: and you know, I think it's interesting. We keep talking

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Speaker 7: about how he's not going to be there physically, and

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Speaker 7: he will not, but he will be overarching this entire

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Speaker 7: debate and it's going to be really hard for these

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Speaker 7: other eight people to get out from under his shadow.

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Speaker 3: The Bloomberg contributor Jeanie Sheanzano says the debate could be

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Speaker 3: overshadowed by Trump tomorrow, when the former president then heads

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Speaker 3: to Georgia to be booked on criminal charges.

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Speaker 2: Well, now to the latest, John and those devastating wildfires

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Speaker 2: in Hawaii. Officials on Maui are saying there are an

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Speaker 2: estimated eight hundred people that are still missing, and now

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Speaker 2: the search methods in the area are shifting. Bloomberg's Ed

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Speaker 2: Baxter has that story.

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Speaker 8: Governor Josh Green says, now the pains taking task of

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Speaker 8: going through some of the half standing buildings. Those buildings

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Speaker 8: are very fragile and they have to use some additional

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Speaker 8: equipment to.

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Speaker 9: Peel back some of the the levels of floors.

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Speaker 8: That collapsed and warrens of many more tragic fines.

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Speaker 10: We do expect to see a lot more loss of life.

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Speaker 11: It's going to be tragic. I want to brace everyone for.

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Speaker 1: That, he says.

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Speaker 8: The president has granted his monetary requests. I'm at Baxter Bloomberg.

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Speaker 2: Daybreak, all right, Ed, thank you, and coming up on

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Speaker 2: Bloomberg Daybreak, we'll have more global headlines, plus a check

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Speaker 2: of sports, and this is Bloomberg.

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Speaker 3: All right, Thanks Karen, and it tuned out for a

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Speaker 3: look at some of the other stories making news in

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Speaker 3: New York and around the world. For that, we're joined

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Speaker 3: by Bloomberg's Amy Morris.

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Speaker 12: Amy, good morning, Good morning, John, and you had mentioned

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Speaker 12: that former President Trump is to be booked as early

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Speaker 12: as tomorrow in Georgia. Well, defendants are slowly showing up

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Speaker 12: at the Fulton County Jail to be processed in the

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Speaker 12: Georgia election fraud case all this week. Bloomberg's at Nancy

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Speaker 12: Lyons has that update.

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Speaker 13: There are nineteen defendants, including former President Trump, and they

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Speaker 13: have until midday Friday to surrender. Attorney John Eastman was

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Speaker 13: one of the first to show up for processing.

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Speaker 6: I am confident and the law is faithfully applied in

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Speaker 6: this proceeding all of my co defendants, and I will

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Speaker 6: be fully vindicated.

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Speaker 13: Former President Trump has said he'll surrender to authorities Thursday,

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Speaker 13: but his former chief of staff Mark Meadows is asking

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Speaker 13: a federal judge to block state authorities from arresting him

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Speaker 13: if he does not surrender. Nancy Lyons Bloomberg Daybreak, and.

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Speaker 12: Now we're getting reports, Former Trump attorney and former New

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Speaker 12: York City Mayor Rudy Giuliani will surrender today. ABC News

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Speaker 12: is reporting Giuliani will head to Atlanta with former New

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Speaker 12: York City Police Commissioner Bernard Carrick, who will help him

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Speaker 12: through that process. Juliani's lawyers are reportedly working with the

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Speaker 12: DA on a blond package. And we've been telling you

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Speaker 12: about the GOP presidential primary set for tonight. Some candidates

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Speaker 12: are crying foul after they didn't qualify for tonight's debate.

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Speaker 12: Former Congressman Will Hurd tells ABC he has no intention

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Speaker 12: of dropping out.

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Speaker 10: I've always said my goal is not to peak on

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Speaker 10: August twenty three. My goal is not to peak next week.

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Speaker 10: The goal is to peak later in the winter, before

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Speaker 10: the first election, before voting begins.

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Speaker 12: Eight candidates are expected to be on the stage tonight

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Speaker 12: in Milwaukee. Several who did not make the cut accuse

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Speaker 12: the Republican National Committee of cherry picking the polls we've

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Speaker 12: told you. Dick's Sporting Goods has seen a whopping twenty

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Speaker 12: three percent drop in profits. The retailer, blaming what it

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Speaker 12: describes as an increasingly serious theft problem, tells the Advisory

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Speaker 12: Group Senior managing Director Joe Feldman says Dix is on

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Speaker 12: a growing list of companies, including Target and Home Depot,

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Speaker 12: sounding that alarm.

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Speaker 5: A lot of the.

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Speaker 6: Stolen merchandise just ends up being resold on the third

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Speaker 6: party marketplace online.

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Speaker 12: The National Retail Federation organized retail crime accounted for more

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Speaker 12: than ninety four billion dollars in losses in twenty twenty one.

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Speaker 12: Global News twenty four hours a day, powered by more

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Speaker 12: than twenty seven hundred journalists and analysts in more than

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Speaker 12: one hundred twenty countries. I'm Amy Morris, and this is Bloomberg.

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Speaker 3: John H Right, Davy. Thank you very much, and that

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Speaker 3: brings us to five to ten on dwell Street. That's

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Speaker 3: time for our Bloomberg Sports Update, and for that, let's

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Speaker 3: bring in Bloomberg's Dan Schwartzman.

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Speaker 5: Good morning, John. Let's start out in Major League Baseball,

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Speaker 5: where the Mariners remain red hot.

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Speaker 14: I drive right field, give me up, bad go Josh

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Speaker 14: Rojas two.

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Speaker 5: Room, homer, four one Mariners. That's courtesy of MLB Network.

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Speaker 5: The Mariners are now winners of eighth trade in, just

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Speaker 5: one game out of first place in their division after

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Speaker 5: knocking off the White Sox in Chicago six to three. Elsewhere,

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Speaker 5: the Athletics sneaking past the Royals five to four, Raves

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Speaker 5: getting past the Mets in Atlanta three to two, Red

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Speaker 5: Sox falling to the Astros on the road in Houston

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Speaker 5: seven to three. The Yankees are now losers of nine straight.

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Speaker 5: They fall at home to the Nationals two to one.

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Speaker 5: It's their longest losing streak since nineteen eighty two, while

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Speaker 5: in ten innings, the Blue Jays lose at the Oriel

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Speaker 5: six to three and the Giants fall to the Phillies

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Speaker 5: in Philadelphia four to three. Major League Baseball has placed

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Speaker 5: Tampa Bay Ray shortstop one Franco on an administrative leave

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Speaker 5: amid multiple investigations into possible relationships in the Dominican Republic

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Speaker 5: with underage girls. The twenty two year old has not

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Speaker 5: played the past week after Tampa placed him on the

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Speaker 5: restricted list. The All Star is in the second year

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Speaker 5: of an eleven year, one hundred and eighty two million

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Speaker 5: dollars contract in the NFL. The Tampa Bay Buccaneers naming

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Speaker 5: Baker Mayfield as your starting quarterback over twenty twenty one

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Speaker 5: second round draft pick Kyle Trask. Mayfield was the first

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Speaker 5: overall pick of the Browns back in twenty eighteen, before

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Speaker 5: being traded to the Panthers a year ago. The twenty

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Speaker 5: eight year old was released by Carolina after Week twelve,

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Speaker 5: before finishing up the season with the Rams. That's your

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Speaker 5: Bloomberg Sports update. I'm Dan Schwartzman.

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Speaker 14: From coast to coast, from New York to San Francisco,

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Speaker 14: Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business

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Speaker 14: app in Bloomberg dot Com.

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Speaker 1: This is Bloomberg Daybreak.

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Speaker 3: And good morning. I'm John Tucker.

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Speaker 2: Will.

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Speaker 3: At the heart of this year's hype around artificial intelligence

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Speaker 3: sits in Vidia, the chip maker, opening it's books after

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Speaker 3: the close of regular trading in New York today and

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Speaker 3: with the preview. I'm happy to say we're joined by

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Speaker 3: Bloomberg Technology reporter Alex Webb. Alex, thanks for being here.

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Speaker 3: Appreciate it. If they don't meet their forecasts, Alex, I'm

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Speaker 3: thinking that there's going to be bloody in the streets.

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Speaker 3: Give us a preview.

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Speaker 9: Yeah, it's certainly a company that has been bid up

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Speaker 9: significantly in the past few months. Although interestingly, if you

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Speaker 9: look at the multiple of which it's trading it's currently

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Speaker 9: at forty four times it's forward earnings. Now that is

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Speaker 9: a premium to the Philadelphia stock at Shane Semkinductor Indix,

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Speaker 9: which is trading at twenty four times it's forward earnings.

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Speaker 11: But it has come down quite a lot.

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Speaker 1: Now.

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Speaker 9: Of course, you know that Ford earnings Malta is partly

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Speaker 9: because analyst ratings have been you know, they're anticipating higher

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Speaker 9: revenue for the rest of the year, so any indication

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Speaker 9: of a wobble on that front is likely to be punished.

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Speaker 9: You know, this is the case. There were an any

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Speaker 9: of the big tech companies right now. They're all been

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Speaker 9: trading at very generous multiples and there's a lot of

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Speaker 9: enthusiasm around them, but any hint of a wobble has

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Speaker 9: broad implications potentially for the market itself, given the concentration

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Speaker 9: of growth in those stocks.

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Speaker 3: Okay, so what have they guided at this point and

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Speaker 3: can they meet those expectations or at least you know,

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Speaker 3: in terms of what the analysts are saying.

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Speaker 9: Yeah, so they I mean, the reason for this huge

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Speaker 9: surge is that they predicted this quarter they would do

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Speaker 9: eleven billion dollars in revenue. That would be up from

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Speaker 9: seven billion dollars the previous calendar quarter, and was about

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Speaker 9: fifty percent higher than analysts at that time had been expecting.

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Speaker 9: Now the consensus is very much in line with that

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Speaker 9: fact is ever so slightly high. Eleven point zero four

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Speaker 9: billion is what analysts are anticipating. The focus there will

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Speaker 9: really be on the fiscal third quarter, which ends in

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Speaker 9: at the end of October. Analysts are looking for twelve

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Speaker 9: and a half billion in revenue in that quarter, and

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Speaker 9: so that will be it's likely to be the real

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Speaker 9: decider in how the market reacts.

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Speaker 2: You know.

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Speaker 3: The fascinating thing to me about this is that in

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Speaker 3: Vidia seems to have been able to play both sides

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Speaker 3: of the artificial intelligence story, the hype and the actual

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Speaker 3: business associated with that. I wonder if you have any

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Speaker 3: thoughts on that.

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Speaker 9: Yeah, I think that's probably true. Look, if anything, they have,

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Speaker 9: they've responded to the hype. You know, they weren't saying

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Speaker 9: a year ago we are going to be delivering in

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Speaker 9: this quarter eleven billion dollars of revenue.

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Speaker 11: This came after Chat GPT.

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Speaker 9: Right, the Chat GPT comes along, there's a huge amount

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Speaker 9: of enthusiasm. Then the cloud computing giants, the likes of Google, Amazon,

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Speaker 9: and Microsoft. They recognize that there is huge demand for

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Speaker 9: this AI stuff, or at least expect there to be

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Speaker 9: a huge demand for generative AI. So they start kitting

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Speaker 9: out their data centers. And if you're going to kit

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Speaker 9: out the data centers, well then you need the chips

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Speaker 9: to do it. And that's why they turn to in videos.

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Speaker 9: So in video is very much riding the wave of

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Speaker 9: that rather than necessarily, you know, being a generator of

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Speaker 9: hype and hype alone.

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Speaker 3: Well, let's talk about the competition companies like Microsoft are

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Speaker 3: there Are they frenemies to in VideA.

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Speaker 11: No, I mean, in VideA is very much a supplier

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Speaker 11: for Microsoft.

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Speaker 14: There.

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Speaker 9: Look, what we're starting to see is that some of

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Speaker 9: these big tech companies are generating their own chips to

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Speaker 9: power AI, but they're a little bit behind perhaps where

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Speaker 9: in VideA is right now. And there's also a question

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Speaker 9: of capacity because you know, they need a foundry to

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Speaker 9: make this. A company like TSMC Taiwan Semi Conductor Manufacturing Corporation,

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Speaker 9: they will they make this stuff under license from Nvidia,

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Speaker 9: as they do for the other companies, for Microsoft, for Google,

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Speaker 9: Apple and others. In video is the one that has

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Speaker 9: a huge amount of capacity. Right now they are they

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Speaker 9: have the product, it is available. That might change in

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Speaker 9: the months years ahead, but in the short term in

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Speaker 9: videos in a very good place.

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Speaker 3: Okay, what next from me?

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Speaker 4: In video?

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Speaker 3: What have they done for me lately?

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Speaker 9: It's really interesting seeing their CEO talking at various conferences

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Speaker 9: where you know, he does show off the capabilities of

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Speaker 9: their tech and the applications of their tech. And excuse me,

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Speaker 9: at the moment, we're seeing pretty you know, rudimentary generative

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Speaker 9: AI stuff, largely text based or sometimes image based. In future,

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Speaker 9: we're going to be seeing it used in gaming. For instance,

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Speaker 9: there was a fascinating video that CEO showed in Taiwan

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Speaker 9: a few months ago where.

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Speaker 11: You know, you're playing video game.

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Speaker 9: Often in the example he gave, you go into a

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Speaker 9: bar and you start interacting with the the the animated

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Speaker 9: character there. Now, historically animated character will have three or

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Speaker 9: four program responses. Perhaps in this version you can literally

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Speaker 9: talk to them through your headset and they will react

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Speaker 9: and give you completely new responses. They generation you time,

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Speaker 9: but with a goal in mind to send you on

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Speaker 9: to the next phase of the game. That is really

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Speaker 9: the next sort of thing We're going to be seeing

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Speaker 9: more sophisticated, more advanced stuff, but those games are being

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Speaker 9: developed sort of right now and won't come to market

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Speaker 9: for the law yet.

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