Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Amy Morris. Here
Speaker 2: are the stories we're following today.
Speaker 1: We begin with the highly anticipated earnings report that Wall
Speaker 1: Street has been waiting for from Nvidia because of its
Speaker 1: leadership and AI training chips, and Vidia's market capitalization has
Speaker 1: ballooned to around one point seven trillion dollars. Amy Wou
Speaker 1: Silverman of RBC Capital Market says the report after today's
Speaker 1: close could be critical for the markets.
Speaker 3: Those results are what we saw kind of similar to
Speaker 3: last year. It still has a while to run. However,
Speaker 3: as let's say the results are quite disappointing, you can
Speaker 3: see that call skew stuffed out of the market pretty quickly.
Speaker 3: And then the question there becomes, you know, if this
Speaker 3: is disappoint to two investors, what happens next? Do you
Speaker 3: actually see a pickup in the downside. Do you see
Speaker 3: a pickup and hedging that's a major inflection for the market,
Speaker 3: or do you see people still say, you know, we
Speaker 3: like these stocks.
Speaker 1: RBC's Amy Wou Silverman now, according to options positioning, in
Speaker 1: Vidia investors may have almost two hundred billion dollars riding
Speaker 1: on today's results, prices for short term calls and puts
Speaker 1: imply a more than ten percent move in the chip
Speaker 1: maker's shares after the report.
Speaker 2: Nvidia is, of course part of the Magnificent Seven which
Speaker 2: have propelled equity markets to record hives, but now it
Speaker 2: appears investors are cutting back. Goldman Sachs analyzed more than
Speaker 2: seven hundred hedge funds with two point six trillion dollars
Speaker 2: of gross equity positions. Six of the mags seven stocks
Speaker 2: saw a decrease in exposure. The only one that saw
Speaker 2: on increase was Amazon.
Speaker 1: And speaking of Amazon, Amy, those shares are up one
Speaker 1: percent this morning. The e commerce giant is about to
Speaker 1: be added to the Dow Jones Industrial Average, and we
Speaker 1: get the story from Bloomberg's Kimberly Adams.
Speaker 4: Amazon will replace Walgreens Boots Alliance in the Dow on Monday.
Speaker 4: The inclusion in the index is another milestone in the
Speaker 4: retailer's rapid expansion. The company was found that in nineteen
Speaker 4: ninety four as an online bookseller. It now sells goods
Speaker 4: of all types and runs the world's largest cloud computing business.
Speaker 4: In fact, Amazon is the second largest private sector employer
Speaker 4: in the US behind Walmart. The absence of Amazon in
Speaker 4: a slew of big tech firms from the Dow spurred
Speaker 4: the blue Chip index to underperform peers. Last year, the
Speaker 4: tech heavy Nasdaq one hundred climb more than fifty percent,
Speaker 4: while the Dow rose thirteen percent. Kimberly Adams Bloomberg.
Speaker 2: Radio Thanks Kim. While Amazon takes its place in the
Speaker 2: blue Chip index, founder Jeff Bezos is selling more of
Speaker 2: his stake in the company. The billionaire unloaded another fourteen
Speaker 2: million shares worth about two and a half billion dollars.
Speaker 2: That brings his total cash out to eight and a
Speaker 2: half billion. Bezos announced a plan to sell up to
Speaker 2: fifty million shares of Amazon earlier this month. He finished
Speaker 2: the transaction in just nine trading days.
Speaker 1: Keeping things in the c suite Amy City Group has
Speaker 1: boosted the pay of CEO Jane Fraser by about six
Speaker 1: percent to a total of twenty six million dollars. The
Speaker 1: increase comes after Fraser initiated what's built as the largest
Speaker 1: reworking of City Group in decades. The moves are designed
Speaker 1: to propel the firm from a banking underdog to competitive
Speaker 1: with its more profitable peers.
Speaker 2: And staying in the banking sector. Shares of HSBC are
Speaker 2: down more than seven percent in Europe. The bank reported
Speaker 2: fourth quarter profit that plunged eighty percent. HSBC took a
Speaker 2: three billion dollar impairment in the fourth quarter on its
Speaker 2: holding in China's Bank of Communications. CEO Noel Quinn says
Speaker 2: the payment will have minimal consequences.
Speaker 5: I just want to make clear that has no impact
Speaker 5: on our capital position of any significance. It does not
Speaker 5: prohibit distribution because it's non capital impactful. It is a
Speaker 5: technical accounting issue, and I also want to reiterate we
Speaker 5: have strong confidence in the China economy. We believe there
Speaker 5: are huge opportunities ahead, and we believe that our partnership
Speaker 5: with BOCOM has been a good partnership for twenty years
Speaker 5: and that status has not changed.
Speaker 2: HSBC CEO Noel Quinn all so announced a two billion
Speaker 2: dollars share buyback.
Speaker 1: On the economic front, today, Amy, we may get more
Speaker 1: clues on the future of US interest rates This afternoon.
Speaker 1: The Federal Reserve releases minutes from its last meeting. We
Speaker 1: get a preview from Bloomberg's Michael McKee.
Speaker 6: January's FED meeting began a concentrated, if not coordinated effort
Speaker 6: by Fed officials to push back against market pricing of
Speaker 6: an early rate cut. The minutes of the meeting may
Speaker 6: offer hints at why what did the policymakers see in
Speaker 6: the economy then too much strength building inflation pressures, a
Speaker 6: too tight labor market, or was it just an abundance
Speaker 6: of caution? Caution that has proved out as January retail
Speaker 6: sales came in week and consumer prices rose. The minutes
Speaker 6: are always a bit outdated, since the Fed Policy meeting
Speaker 6: took place three weeks ago, but in this case, clues
Speaker 6: to the Fed officials thinking may help investors anticipate when
Speaker 6: and under what conditions they will finally cut. Michael McKee, Bloomberg.
Speaker 2: Radio, all right, thank you, Mike, and deal News this morning,
Speaker 2: Bloomberg News has learned that buyout from Thomas Bravo is
Speaker 2: weighing a sale of JD Power for about eight billion dollars.
Speaker 2: JD Power uses data and analytics to produce rankings and
Speaker 2: reviews across industries including automotive, financial services, and healthcare.
Speaker 1: And a tie up between two supermarket giants could be
Speaker 1: in trouble, sources tell Bloomberg News. The Federal Trade Commission
Speaker 1: and a group of states are preparing to sue to
Speaker 1: block the combination of Kroger and Albertsonz. We get the
Speaker 1: details from Bloomberg's Charlie Pellett.
Speaker 7: The suit is expected before February twenty eighth, when an
Speaker 7: agreement not to close the deal between the companies and
Speaker 7: the FDC expires. The sources say several states are expected
Speaker 7: to join the suit, alongside the federal antitrust enforcers. A
Speaker 7: Kroger spokeswoman says the company remains at ongoing discussions with
Speaker 7: the FDC and state regulators, and that the merger will
Speaker 7: lead to lower prices, more union jobs, and broader choices
Speaker 7: for consumers in New York. Charlie Pellett Bloomberg Radio.
Speaker 2: Thank you, Charlie. Turning to politics now, more financial trouble
Speaker 2: could be on the way for Donald Trump. New York
Speaker 2: Attorney General Laditia James says she is prepared to seize
Speaker 2: the former president's assets. Bloomberg's Ed Baxter with that story.
Speaker 8: James says she'll follow the money if he does not
Speaker 8: come up with a three hundred and fifty million dollar
Speaker 8: plus fine ordered by the judge. She says a decade
Speaker 8: of crime.
Speaker 9: Financial frauds are not victimless crimes. He engaged in this
Speaker 9: massive amount of fraud, and it wasn't just a simple mistake,
Speaker 9: a slight oversight. The variations were wildly exaggerated and the
Speaker 9: extent of the fraud was staggering.
Speaker 8: James, refuting the Trump claimed that there were no victims,
Speaker 8: She says financial markets, banks and the citizens were ed.
Speaker 8: Baxter Bloomberg Radio.
Speaker 1: Time Now to take a look at some of the
Speaker 1: other stories making news in New York and around the world,
Speaker 1: and for that were joined by Bloomberg's Michael Bark.
Speaker 10: Good morning, Michael, Good morning, Nathan. The FBI is joining
Speaker 10: the investigation into how many violent crimes iams nationwide are
Speaker 10: linked to a suspected multi state serial attacker taken into
Speaker 10: custody in Arizona. The twenty six year old man may
Speaker 10: have targeted sex workers. He allegedly told police about his
Speaker 10: involvement in a string of assaults on women in the
Speaker 10: Phoenix area, Florida, and as well as a deadly attack
Speaker 10: in New York in MYPD Chief of Detectives Joe Kinney
Speaker 10: says the victim killed in Manhattan was found inside a
Speaker 10: hotel room earlier this month.
Speaker 6: He informs them that he is wanted for homicide in
Speaker 6: New York City and tells the cops that they should
Speaker 6: google Solho fifty four hotel.
Speaker 10: The suspect, rod Almunsouri is believed to have arrived in
Speaker 10: New York City in late January. Later credit card use
Speaker 10: syndicates the purchase of a plane ticket to Arizona, where
Speaker 10: he allegedly committed at least two more crimes. Two men
Speaker 10: have been charged with murder in last week's shooting after
Speaker 10: the Kansas City Chiefs Super Bowl parade. According to court documents,
Speaker 10: the men were strangers who pulled out guns and began
Speaker 10: firing within seconds of starting an argument. One person was
Speaker 10: killed and about two dozen others were injured. New York
Speaker 10: City police are doubling down on stopping more pedestrians in
Speaker 10: twenty twenty three than the year prior. Pedestrian stops fell
Speaker 10: out of favor in New York City after a federal
Speaker 10: courts in twenty thirteen ruled that the NYPD stop in
Speaker 10: frisk practices were unconstitutional, but that trend appears to be
Speaker 10: reversing under Mayor Eric Adams, who took office in twenty
Speaker 10: twenty two. President Joe Biden's administration announced that more than
Speaker 10: one hundred and fifty thousand borrowers will receive one point
Speaker 10: two billion dollars in student loan forgiveness under a program
Speaker 10: unveiled in January seeking to provide relief for Americans who
Speaker 10: had been making payments for at least a decade. The
Speaker 10: move wipes out loans for those who borrowed less than
Speaker 10: twelve thousand dollars for their higher education. A new study
Speaker 10: finds one in four people who attended college earned legs
Speaker 10: less than high school graduates ten years later. Michael Isskwitz
Speaker 10: is president of the HA Group, which conducted the survey.
Speaker 11: Out of the about four thousand institutions in the study,
Speaker 11: eight hundred and fifty two of them, or about twenty
Speaker 11: two percent of colleges, so the majority of students earning
Speaker 11: below a fifteen dollars minimum wage.
Speaker 10: Michael Isskowitz with AHA says most of the people who
Speaker 10: earn less than high school grads went to for profit colleges,
Speaker 10: but about fourteen percent attended public colleges. Global News twenty
Speaker 10: four hours a day and whenever you want it with
Speaker 10: Bloomberg News Now, I'm Michael Barr. This is Bloomberg Nah.
Speaker 1: Thanks Michael. Time now for the Bloomberg Sports Update, brought
Speaker 1: to you by Tri State OUTI. Here's John stashawanks Nathan U.
Speaker 10: Kohn.
Speaker 12: Husky's dominant in winning last year's NCAA tournament. They've been
Speaker 12: dominant this season. They went to Omaha running a fourteen
Speaker 12: game winn Is break. Most recently, they won by twenty
Speaker 12: eight over Marquette, who was ranked fourth in the country.
Speaker 12: Yucon's number one. The vote this week was unanimous, but
Speaker 12: the Creighton Blue Jays ranked fifteenth themselves. They've won twenty games,
Speaker 12: and they crushed Yukon eighty five sixty six. They stormed
Speaker 12: the court after the school's first ever win over the
Speaker 12: team rank number one. The Yukon coaches Dan Hurley, you.
Speaker 13: Haven't lost him two plus months, and this doesn't happen
Speaker 13: to us very often. So yeah, I mean, we were,
Speaker 13: you know, we were definitely stunned. This wasn't the good
Speaker 13: game we expected. We knew this was a dangerous game
Speaker 13: and their quality opponent and one of the better teams
Speaker 13: in the country, but we didn't expect this to happen.
Speaker 12: Next up for Creighton is a game Sunday at Saint John's,
Speaker 12: the Red Storm of lost eight of ten, their players,
Speaker 12: recently severely criticized by their coach Rick Patino. Saint John's
Speaker 12: play tonight at Georgetown at the Garden. Rangers scored once
Speaker 12: in each period, got forty one saves from Igor Sisterkin.
Speaker 12: Won there eighth in a row, three to one over Dallas.
Speaker 12: It's the Rangers' longest winning streets in twenty sixteen two
Speaker 12: more wins. They tied the club record of ten. That's
Speaker 12: happened twice nineteen seventy three and in nineteen forty when
Speaker 12: they won this Stanley Cup. Has any new interrot fan
Speaker 12: knows They've only won it once since They played tomorrow
Speaker 12: at New Jersey. The Devils were in Washington, the Capitals
Speaker 12: one sixty two. Alex Lovechkin scored twice Islanders of five
Speaker 12: to four overtime win. At Pittsburgh. Matthew Slater has retired.
Speaker 12: Special teams stand out for the Patriots, went to ten
Speaker 12: Pro Bowls, who was a Pats captain thirteen of his
Speaker 12: sixteen seasons. The one time met shortstop Ahmedrasario assigned with
Speaker 12: Tampa Bay at Yankee spring training. All eyes on Aaron
Speaker 12: Judges Big Tow heard it last June at Dodger Stadium.
Speaker 12: Never had surgery, and Judge said yesterday that to avoid
Speaker 12: flare ups, he'll need constant maintenance on the tow.
Speaker 10: For the rest of his career.
Speaker 12: John Stashaward, Bloomberg.
Speaker 1: Sports Steaven All right, John, thank you. Now let's turn
Speaker 1: back to markets and our focus on earnings. This morning,
Speaker 1: we're watching shares of HSBC. They are lower by more
Speaker 1: than seven percent in London, and that move comes after
Speaker 1: the lender reported earnings showing a fourth quarter profit falling
Speaker 1: eighty percent after unexpected charges on its holdings in China's
Speaker 1: Bank of Communications Bowcom. HSBC also announced a two billion
Speaker 1: dollars share buy back, but the bank CEO, Noel Quinn
Speaker 1: says the Bowcom charge was a technical accounting issue and
Speaker 1: won't impact capital. Noel Quinn spoke with Bloomberg's Francine Lockwhile
Speaker 1: let's listen in to part of that conversation.
Speaker 5: Now, Well, I'm very pleased with the fact that we've
Speaker 5: been able to report thirty billion of PBT, which is
Speaker 5: obviously a record, but also I'm very pleased with the
Speaker 5: return on tangible equity we've been working hard for the
Speaker 5: past four years to make sure we deliver mid teen's returns,
Speaker 5: and we did that last year. You know, before material
Speaker 5: notable items, we had a return on tangible equitcy of
Speaker 5: fifteen point six percent. I'm also really pleased with the dividends.
Speaker 5: We've been owned sixty one cents, which is the highest
Speaker 5: dividend for the full year since two thousand and eight.
Speaker 5: And we completed seven billion dollars a buyback, and we
Speaker 5: announced another two billion dollar up to two billion dollar
Speaker 5: buy back this year. So I'm really pleased with the
Speaker 5: strong capital generation and I believe with the cet one
Speaker 5: ratio of fourteen zo point eight percent, we've got strong
Speaker 5: potential future capital distribution as well. In the fourth quarter,
Speaker 5: we did have some noise in the numbers. We had
Speaker 5: three principle items that pulled down the profit. The first
Speaker 5: one was we rebooked the loss on sale of our
Speaker 5: French operation that we completed that transaction. It's neutral for
Speaker 5: the year because we took a credit on that in
Speaker 5: Q one and we've taken a charge in Q four,
Speaker 5: so that nets each other out and neutral. There was
Speaker 5: an adjustment for hyperinflation in Argentina driven by the devaluation
Speaker 5: that took place. That's really a technical issue. And then
Speaker 5: the third issue technical issue was Bocon. We have had
Speaker 5: had an investment in Bocon for twenty years. Every quarter
Speaker 5: we have to do a valuation in use test. We
Speaker 5: did that again this quarter, updated the model and it
Speaker 5: compares the value in use to the carrying value, and
Speaker 5: value in use dropped below and that would resulting in
Speaker 5: a three billion charger. I just want to make clear
Speaker 5: that has no impact on our capital position of any significance.
Speaker 5: It does not prohibit distribution because it's non capital impactful.
Speaker 5: It is a technical accounting issue. And I also want
Speaker 5: to reiterate we have strong confidence in the China economy.
Speaker 5: We believe there are huge opportunities ahead, and we believe
Speaker 5: that our partnership with BOCOM has been a good partnership
Speaker 5: for twenty years and that status has not changed.
Speaker 14: No, given what you've just explained, are are there any
Speaker 14: large asset sales ahead? Is there anything else that you're
Speaker 14: thinking either that you need to sell off or actually
Speaker 14: that there could be some kind of accounting concern.
Speaker 5: Well, I think we've got the final lego of our
Speaker 5: disposal of Canada to come at the end of Q
Speaker 5: one that will be a big sale completion. We're on
Speaker 5: track for that at the end of Q one. That
Speaker 5: will allow us to as we've already announced first use
Speaker 5: of proceeds, we would like to use the first use
Speaker 5: proceeds as a special dividend of twenty one sense. We
Speaker 5: continue to look at the portfolio to make sure the
Speaker 5: portfolio is strategically correctly positioned and no businesses are underperforming.
Speaker 5: But I think we've done the material transactions, but we
Speaker 5: will continue to adapt and change if we feel as
Speaker 5: though part of the portfolio is not strategic or is underperforming.
Speaker 5: I also want to recap on Q four if you revert,
Speaker 5: if you take the profit, the underlying before material notables,
Speaker 5: Q four reports would have been a seven point three
Speaker 5: billion PBT, which is well up on the prior quarter
Speaker 5: in twenty twenty two.
Speaker 14: No, just going back to some of your potential significant sales.
Speaker 14: Are you also close to identifying any potential new bolt
Speaker 14: on acquisitions?
Speaker 5: We keep looking at boltons and we've done quite a few.
Speaker 5: I was really pleased that we were with announced the
Speaker 5: acquisition of Citybank's wealth business in China. That follows two
Speaker 5: other investments we put into China recently, taking our shareholding
Speaker 5: in our insurance joint venture from fifty percent to one
Speaker 5: hundred percent and the securities joint venture from fifty percent
Speaker 5: to ninety percent. So you can see our confidence in
Speaker 5: China is still strong and we're invested in and we've
Speaker 5: done three boltons there. We'll continue to look for boltons,
Speaker 5: particularly in our wealth management business. We believe buying additional
Speaker 5: product capability, specialism or distribution capability would be interesting, but
Speaker 5: we'll only announce anything on that as and when we
Speaker 5: got a transaction to complete.
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