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

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Speaker 1: Daymake You podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Tuesday, the nineteenth of March. Here

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Speaker 1: in London, I'm Caroline Hepka. Coming up today. Japan raises

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Speaker 1: interest rates for the first time since two thousand and

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Speaker 1: seven and scraps yield curve control YOLO options. Traders bet

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Speaker 1: that the value of Nvidia could more than double by Friday,

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Speaker 1: Yes Friday, as the AI Darling unveils its latest chip plus.

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Speaker 1: Elon Musk insists that his ketamine prescription is in the

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Speaker 1: best interest of Tesla shareholders, but is it the right

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Speaker 1: medicine for investors. Let's start with a roundup of our

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Speaker 1: top stories. The Bank of Japan has ended the most

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Speaker 1: aggressive monetary stimulus program in modern history. The boj raised

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Speaker 1: rates for the first time in seventeen years, scrapped its

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Speaker 1: yield curve control program, while also pledging to keep buying

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Speaker 1: long term government bonds as needed. Kasuo MoMA was the

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Speaker 1: former Bank of Japan Assistant governor.

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Speaker 2: Right now, interust rate is around zero and infrastrate is

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Speaker 2: more than two percent. Fish wish that we still give

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Speaker 2: in negative territory in terms of real indust rates. So

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Speaker 2: even though with some of the interest rate hikes, still

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Speaker 2: we could be said in accommodated policy.

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Speaker 3: But I think the quote quote from the VIDEOJA.

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Speaker 2: From that kind of pressures that we are not rushing

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Speaker 2: in terms of nomor matter porsy for the time being.

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Speaker 1: So that was Kazuo MoMA. His view of one and

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Speaker 1: done is shared by many BOJ watchers who believe this

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Speaker 1: isn't the beginning of an aggressive tightening cycle of the

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Speaker 1: sort that we've seen in the US and Europe recently.

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Speaker 1: That stance appeared to disappoint some market players looking for

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Speaker 1: a more aggressive rate outlook for Japan. In Nvidia has

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Speaker 1: unveiled a's successor to its famed AI process. The tech

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Speaker 1: giant shared designs for a new process are called Blackwell,

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Speaker 1: multiple times faster than its predecessor. This was at the

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Speaker 1: GtC conference in California. CEO Jensen Wong said that Blackwell

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Speaker 1: is a more efficient version of the previous Hopper design.

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Speaker 4: Form fit function compatible to Hopper, and so you slight

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Speaker 4: on Hopper and you push in Blackwell. That's the reason

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Speaker 4: why one of the challenges of ramping is going to

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Speaker 4: be so efficient, same design, the power, the electricity, the thermals,

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Speaker 4: the software, identical.

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Speaker 1: CEO and co founder Jensen Wong speaking there now. According

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Speaker 1: to Nvidia, the Blackwell chips will be the basis of

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Speaker 1: new computers and other products being developed by the world's

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Speaker 1: largest data center operators and available later this year now

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Speaker 1: to All News, GUNVS CEO Torbion Talkvist has estimated that

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Speaker 1: about six hundred thousand barrels of Russia's daily oil refining

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Speaker 1: capacity has been wiped out by Ukrainian drone strikes. He

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Speaker 1: was speaking at the Sarah Week Energy conference in Houston,

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Speaker 1: recent attacks that hit multiple plants in Russia, sending diesel

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Speaker 1: and gasoline futures higher. JP Morganwin meanwhile believes that it

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Speaker 1: could be several weeks, if not months, before Russia's oil

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Speaker 1: refining capacity is restored. Chinese regulators say that the developer

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Speaker 1: Evergrand falsely inflated revenue by more than seventy eight billion

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Speaker 1: dollars in the two years leading to its failure. Bluebigs

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Speaker 1: Brian Curtis has more on that story now.

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Speaker 5: From Hong Kong, the CSRC said Evergrand's main unit, Hungda

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Speaker 5: real Estate boosted its twenty nineteen income by about thirty

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Speaker 5: billion dollars. It said Hungda falsified another forty four billion

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Speaker 5: in twenty twenty. The regulator said Evergrand founder Huai kai

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Speaker 5: Yan told personnel to falsely inflate the numbers. The CSRC

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Speaker 5: said that he used egregious means. The regulator finday about

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Speaker 5: six point five million dollars and banned him from capital

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Speaker 5: market activities for life. Hung Dar was fined five hundred

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Speaker 5: and eighty million dollars in Hong Kong. Brian Curtis Bloomberg Radio.

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Speaker 1: Two K News and now Richie Sunak is facing the

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Speaker 1: biggest challenge to his authority since he took off as

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Speaker 1: as Prime Minister seventeen months ago. Bloomberg has learned even

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Speaker 1: some cabinet ministers are privately talking about whether he should

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Speaker 1: lead the Conservative Party into the next election.

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Speaker 6: Bloombergs. James Wilcock has more.

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Speaker 7: There has always been another reset, the hope that a

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Speaker 7: speech on extremism, or a budget or a plane to

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Speaker 7: Rwanda will bridge the twenty point polling gap between Labor

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Speaker 7: and the Conservatives. But the polls haven't budged, and that

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Speaker 7: sets off feverish plotting in Tory ranks, with some saying

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Speaker 7: they need a new leader like Business Secretary Kemmy Baidenock.

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Speaker 7: She's having none of it.

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Speaker 8: I don't look at polls or speculation. I make sure

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Speaker 8: that I'm doing my job. I don't think the the

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Speaker 8: government should be in a position where it's responding to

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Speaker 8: every single bit of disagreement that's reported in the news.

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Speaker 8: We should be looking at the record which we have

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Speaker 8: over the last fourteen years.

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Speaker 7: But regardless of her public denials, Westminster fields increasingly fractious,

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Speaker 7: and many points to local elections on May second as

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Speaker 7: a moment of political danger for Sunak. In London, James

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Speaker 7: Orcock Bloomberg Radio.

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Speaker 1: Elon Musk says that his use of ketamine is in investors'

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Speaker 1: best interest. The TESTA CEO discussed his prescription for the

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Speaker 1: drug with the former CNN anchor Don Lemon, who asked

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Speaker 1: if Wall Street should be worried. Otelzla it's worth a

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Speaker 1: as much as the rest of the car industry combined

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Speaker 1: from nothing, so.

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Speaker 3: I know that's pretty good.

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Speaker 6: As I mentioned, we had the best Ela car on

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Speaker 6: Earth last year, so versus sopwoard.

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Speaker 3: If there is something I'm taking, I should keep taking it.

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Speaker 1: Ask has said that he takes ketamine as medication for

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Speaker 1: depression like symptoms. The CEO canceled a deal to carry

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Speaker 1: Don Lemon's new program on his ex platform after this interview,

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Speaker 1: and Wall Street has been ringing the alarm bell about

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Speaker 1: Tesla's future after disappointing numbers in China and in Europe.

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Speaker 1: Just lastly, Selena Gomes is looking to sell her two

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Speaker 1: billion dollar cosmetic brand, A Rare Beauty. Bloomberg understands that

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Speaker 1: the actress and singer has hired financial advisors to field

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Speaker 1: interest from potential investors and buyers. The Business of Fashion,

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Speaker 1: a website that follows the industry, closely named Rare Beauty

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Speaker 1: as one of the most sought after M and A

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Speaker 1: targets for twenty twenty four. Gomez and her team launched

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Speaker 1: the brand in twenty twenty, with Liquid Blusher becoming a

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Speaker 1: viral TikTok hit the following year. And those are a

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Speaker 1: few of our top stories for you this morning. Now

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Speaker 1: on the market, it's the MSCI Asia Pacific Index curtly

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Speaker 1: four tenths of one percent, Yuu stocks fifty futures also

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Speaker 1: dropping about a quarter of one percent this morning tenny

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Speaker 1: US treasury yields trading at four point three one percent,

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Speaker 1: so fairly steady. Two year yields at four seventy two,

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Speaker 1: down about a basis point. So those are the market's

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Speaker 1: this hour. Now, in a moment, we're going to talk

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Speaker 1: a bit more about the Bank of Japan rates decision.

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Speaker 1: It was widely expected, but the market still saw quite

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Speaker 1: a big reaction to it. Plus in Video's new chip,

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Speaker 1: the major announcement out of California really does feel like

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Speaker 1: in Nvidia's taken over from Apple in terms of the

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Speaker 1: kind of unveiling Razmataz, the glitz and the attention that

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Speaker 1: they are getting given the popularity of AI and the

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Speaker 1: impact that it's had. But look, before we get to

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Speaker 1: those stories, this caught my eye this morning.

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Speaker 6: If as as I am, you are fascinated by.

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Speaker 1: Food, you'll love the story that Tara Patel has written

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Speaker 1: up about the gid Mischler. So of course we've got

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Speaker 1: a thirty new three three star restaurants awarded in France

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Speaker 1: this year, so there are a lot more restaurants, thirty

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Speaker 1: of them in France, eight new two star restaurants. This

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Speaker 1: of course ahead of the Olympic Games that France is

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Speaker 1: hosting this summer, so there's optimism that the new guide

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Speaker 1: that always comes out at this time of year is

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Speaker 1: going to kind of rustle up more business for the

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Speaker 1: restaurant trade. Tara has also been interviewing one of the

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Speaker 1: chefs that was awarded a three star Michelin. That was

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Speaker 1: the thirty five year old chef Fabien Ferre and his

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Speaker 1: three star spot is La Table Duquestdy twenty other twenty

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Speaker 1: eight restaurants. Having said that were downgraded out pretty painful.

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Speaker 1: But as I say, with the Olympics being hosted in Paris,

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Speaker 1: I think lots of optimism that there'll be attention on that,

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Speaker 1: especially because Alan Ducasse one of the most famous French restauranteurs,

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Speaker 1: and I think he's one of the most Michlar stars

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Speaker 1: of anybody anywhere. He's actually going to be putting on

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Speaker 1: a dinner on the twenty fifth of Jai for one

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Speaker 1: hundred visiting heads of state, so showcasing France's food and

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Speaker 1: of course making me a little bit hungry for my breakfast. Anyway,

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Speaker 1: that's Toy on the Bloomberg terminal for you this morning,

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Speaker 1: and let's get to the Bank of Japan now. Governor

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Speaker 1: caswert A Wada has steered the BOJ into a new era,

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Speaker 1: scrapping the world's last negative interest rate. The bank has

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Speaker 1: set a new short term interest rate range of between

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Speaker 1: ninero percent and zero point one percent. Joining me now

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Speaker 1: is Bimberg's FX strash is David Finity. David, good morning.

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Speaker 1: It's not just the interest rate, is the whole system

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Speaker 1: of support that's been changed and acted, buying ETF to example,

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Speaker 1: and real estate investment funds.

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Speaker 6: What has changed at the BOJ.

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Speaker 9: Well, so they've changed quite a lot. They've raised interest rates,

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Speaker 9: they've got rid of your control, and they're still going

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Speaker 9: to be buying back some bonds and they're doing that

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Speaker 9: obviously to limit how much interest rates to write or

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Speaker 9: potentially rise in reaction to this decision, So it doesn't

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Speaker 9: be the major evan of the decisions. Having said that,

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Speaker 9: it was pretty much as expected because there's been so

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Speaker 9: many weeks and just overnight from Nicky saying what was

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Speaker 9: going to happen, and they were pretty much spot on.

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Speaker 9: So the market sort of knew well in advance what's

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Speaker 9: going on. Hence you're not seeing a huge reaction all round.

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Speaker 9: You'll see more reaction in the dollar yen. And that's

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Speaker 9: really because at the end of the day the boj said, yes,

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Speaker 9: we raise rates, but haven't even signaled yet how many more,

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Speaker 9: if any rates to come this year and the market

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Speaker 9: really wants If you're a yen ball, you really want more,

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Speaker 9: right hikes, you don't want side of one and done.

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Speaker 9: Now we'll look for the press conference and I'm sure

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Speaker 9: Governor Away will be pressed on this or quiz on this,

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Speaker 9: like how many more to come? He may kick that

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Speaker 9: can down the road to the outlook report at the

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Speaker 9: April meeting. And if he does that, though, markets will

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Speaker 9: go so all we've been left with is no eight

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Speaker 9: hikes this year, which obviously will be dolly en supportive.

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Speaker 9: Particularly the FED dot plot tomorrow signals two dots two

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Speaker 9: rate cuts this.

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Speaker 1: Year rather than three. Okay, that's interesting. Yeah, And if

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Speaker 1: you're on the Bloomberg terminal this morning, of course you

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Speaker 1: can follow the Tea Live blog. All of our best

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Speaker 1: reporters are putting their two cents worth in their Isabel

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Speaker 1: Reynolds and many others writing on the blog this morning

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Speaker 1: in terms of what has driven this? Is this all

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Speaker 1: about rising wages? Is Japan now in a kind of

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Speaker 1: virtuous circle. The inflation gauge has been above at or

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Speaker 1: above two percent inflation for quite some time now in Japan.

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Speaker 9: Yes, as you said, the inflation measures have been above that.

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Speaker 9: So the move of the change in the policy was

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Speaker 9: not surprised. I mean there was expected sometime this year

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Speaker 9: because said inflation remains elevated. The big debate really in

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Speaker 9: the markets was when was that timing going to be?

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Speaker 9: Eightpril was initially seen as a front runner because of

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Speaker 9: the Outlook reporter calling out report. Some people thought they

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Speaker 9: may even wait till July when there's all more data

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Speaker 9: to make the decision. Obviously, the BOJ said, okay, based

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Speaker 9: off the shuttle wage negotiations that we information already have

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Speaker 9: from them, that's enough for them to say, look, let's

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Speaker 9: do it now. So it's acted. I think the market says,

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Speaker 9: looking forward to seeing bequiz on you know what's coming next?

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Speaker 9: We say from the BOJ in the press conference. And

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Speaker 9: then in that April when the Outlook report is mentioned,

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Speaker 9: how high do they go on the inflation estimates, Because again,

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Speaker 9: if they're going higher, then you could say, well they

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Speaker 9: are sort of indicating that maybe more right hikes.

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Speaker 1: Are to come Okay, good stuff, David, Thank you so

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Speaker 1: much for your time your insights this morning. That is

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Speaker 1: Bloomberg's FX strategist David Finity. So the BOJ decision the

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Speaker 1: first act of a big week of Central Bank announcements. Now,

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Speaker 1: en Vidia's developer event in California has rapidly become a

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Speaker 1: global artificial intelligence conference. The CEO Jensen Wan unveiled a

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Speaker 1: new chip called Blackwell. It's designed to extend the company's

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Speaker 1: dominance of AI computing and of course to maintainers rocketing

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Speaker 1: share price. Imagine joining us now is Bloomberg's tech editor

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Speaker 1: Lad Savov to discuss. Good to have you back with

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Speaker 1: us this morning. Vlad, What did we learn then from

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Speaker 1: Jensen one about the new lineup of chips.

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Speaker 3: Well, in a couple of words, is very powerful.

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Speaker 10: It's actually a little bit shocking the company to come

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Speaker 10: out within just a couple of years from its prior architecture,

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Speaker 10: the Hopper architecture, and to make claims of multiple times

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Speaker 10: better performance when it comes to training AI models on

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Speaker 10: a per chase basis is two and a half times better.

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Speaker 10: But once you get it in a big cluster, Jensen

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Speaker 10: said that it can be as big as four times

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Speaker 10: the performance improvement on its own class leading architecture. And

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Speaker 10: then the big highlight for me actually is the power efficiency.

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Speaker 10: When you get one of these big clusters of the

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Speaker 10: latest and video chips. The company's claiming as much as

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Speaker 10: twenty five percent better power efficiency, which if you're buying

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Speaker 10: up a bunch of them and putting them into your

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Speaker 10: data centers, that's.

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Speaker 3: A big deal.

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Speaker 6: Yeah, okay, so this is much more powerful.

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Speaker 1: The other factor, though, is the increase in Nvidia's share price.

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Speaker 1: I mean, off the back of this, we've seen this

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Speaker 1: incredible year. They've added a trillion dollars in market cap

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Speaker 1: because they've got this cutting edge AI technology, and yet

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Speaker 1: you're also seeing it's almost becoming a bit of a

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Speaker 1: meme stock with you only live once Yolo traders. Why

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Speaker 1: is that that they're really betting on an even bigger

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Speaker 1: increase in Vidia's share price.

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Speaker 3: Well, it kind of is the profile of those sorts

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Speaker 3: of meme stocks, because when you look at the ones

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Speaker 3: that were in the past, is companies like game stock,

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Speaker 3: where a lot of online culture is about gaming, so

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Speaker 3: people can think of it fondly.

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Speaker 10: So whether it goes up or down, at least you're

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Speaker 10: investing with it with some passion other ones with Nokia

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Speaker 10: BlackBerry likewise, and Vina fits into that. It is a

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Speaker 10: gaming company at its roots, and it's built on that

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Speaker 10: technology to effectively power the entire air revolution that we

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Speaker 10: keep talking about on a daily basis. So it makes sense.

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Speaker 10: But also again I want to go back to this point,

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Speaker 10: and Video already has this massive lead and now has

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Speaker 10: given us multiples of performance improvement, efficiency improvement. The total

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Speaker 10: cost of ownership with these new chips is going to

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Speaker 10: be so much lower because they're more power efficient, and

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Speaker 10: you have to compare to its competitors Intel AMD in

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Speaker 10: terms of general processing the chips that they've always led in.

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Speaker 10: They can never make claims nowadays of two and a

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Speaker 10: half times four times performance leaves reed Eish generation.

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