Speaker 1: Good morning.
Speaker 2: I'm John Tucker and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: Karen, this may be the most anticipated earnings report of
Speaker 3: the season. Later today, we're going to find out how
Speaker 3: Nvidia fared in as second quarter. Mustock has been the
Speaker 3: poster child for excitement or artificial intelligence. It's at more
Speaker 3: than two hundred percent so far this year, and let's
Speaker 3: get more from Bloomberg Intelligence senior technology analyst Man Deep Sing.
Speaker 4: They've built a business that could generate almost fifty billion
Speaker 4: dollars in revenue by twenty twenty five. This is huge,
Speaker 4: I mean in terms of creating a new category and
Speaker 4: you know, getting that kind of lift. The bigger question
Speaker 4: to me is it was a monster beat last quarter.
Speaker 4: The expectations have gone up a lot since then, and
Speaker 4: right now we're talking about a fifty billion dollars run
Speaker 4: rate for data center by twenty twenty five.
Speaker 5: What can they do more?
Speaker 4: Because when you're training at this rich valuation, the expectation
Speaker 4: is if you're in line, that's.
Speaker 3: Not enough, Man Deep Singloomberg Intelligence is nearly ninety percent
Speaker 3: of analyst tracked by Bloomberg recommend buying in Vidia.
Speaker 2: Well Well, Wall Street Awaits and Vidia Earnings. John Banks
Speaker 2: are also in focus. This time, mid sized lenders are
Speaker 2: under the microscope. The FDIC is set to propose new
Speaker 2: regulations for those banks, and we get the details from
Speaker 2: Bloomberg's Doug Krosner.
Speaker 6: The plan will be unveiled next week and would require
Speaker 6: banks with as little as one hundred billion dollars in
Speaker 6: assets to issue enough long term debt to cover capital
Speaker 6: losses if those lenders ever failed. The FDIC will also
Speaker 6: unveil a plan to make those same banks fortify their
Speaker 6: hypothetical wind down plans. It's the latest response to the
Speaker 6: collapse of three regional banks back in March. The issue
Speaker 6: of who should shoulder cost for bank failures became contentious
Speaker 6: when the FDIC had to cover all deposits of Silicon
Speaker 6: Valley Bank and Signature Bank, including those that were unsecured
Speaker 6: in New York. I'm Doug Prisner, Bloomberg Daybreak.
Speaker 3: Thanks Doug. There's also news this morning on the post
Speaker 3: to get workers back to the office Now Goldwyn SA
Speaker 3: dialing up pressure to get employees back five days a week.
Speaker 3: That story from Bloomberg's Charlie Pellett.
Speaker 1: The Wall Street Giant is embarking on a fresh effort
Speaker 1: to enforce its policy of working from the office five
Speaker 1: days a week. Though revenue producing employees have mostly returned
Speaker 1: full time, senior managers have grown frustrated by the reluctance
Speaker 1: of staff in other groups, constituting a significant chunk of
Speaker 1: its workforce. Goldman has been one of Wall Street's most
Speaker 1: ardent return to office champions in New York. Charlie Pellette,
Speaker 1: Bloomberg Day Break.
Speaker 2: All right, Charlie, thank you, what we have some news
Speaker 2: on the labor front this morning. Ups employees have a
Speaker 2: new contract. Union workers ratified a new five year labor agreement.
Speaker 2: It delivers substantial wage increases and the intense period of
Speaker 2: negotiating that threaten to strike and.
Speaker 3: Shears of Nike phil another one point three percent yesterday,
Speaker 3: So that brings the stocks losing streak to nine days,
Speaker 3: the longest since the company's initial public offering back in
Speaker 3: nineteen eighty. Nike shares have dropped seven percent in that period.
Speaker 3: The latest slump appears tied to weak earnings from Dick's
Speaker 3: Sporting Goods is also concerned about softening demand in China.
Speaker 7: Well.
Speaker 2: Speaking of China, John It looks like a global Investors
Speaker 2: have been shedding blue chip stocks in the country, accounting
Speaker 2: for the longest stretch of outflows on record. Overseas funds
Speaker 2: have been fleeing China's mainline market, off floating the equivalent
Speaker 2: of ten point seven billion dollars in a thirteen day
Speaker 2: run of withdrawals. That's the longest since Bloomberg began shracking
Speaker 2: the data in twenty sixteen.
Speaker 3: And turning to politics now, Karen Tonight, he's the first
Speaker 3: US Republican presidential debate. The GOP front runner Donald Trump
Speaker 3: will be notably absent from the event. Let's get more
Speaker 3: from Bloomberg political contruder Jeanie Sheen Zino.
Speaker 7: Donald Trump is running like an incumbent president. You know,
Speaker 7: he is somebody who never said that he lost the
Speaker 7: twenty twenty election. In his mind, he is president, and
Speaker 7: president's incumbent. Presidents running for reelection don't participate in these
Speaker 7: kinds of things. You know, he is playing it like that,
Speaker 7: and you know, I think it's interesting. We keep talking
Speaker 7: about how he's not going to be there physically, and
Speaker 7: he will not, but he will be overarching this entire
Speaker 7: debate and it's going to be really hard for these
Speaker 7: other eight people to get out from under his shadow.
Speaker 3: The Bloomberg contributor Jeanie Sheanzano says the debate could be
Speaker 3: overshadowed by Trump tomorrow, when the former president then heads
Speaker 3: to Georgia to be booked on criminal charges.
Speaker 2: Well, now to the latest, John and those devastating wildfires
Speaker 2: in Hawaii. Officials on Maui are saying there are an
Speaker 2: estimated eight hundred people that are still missing, and now
Speaker 2: the search methods in the area are shifting. Bloomberg's Ed
Speaker 2: Baxter has that story.
Speaker 8: Governor Josh Green says, now the pains taking task of
Speaker 8: going through some of the half standing buildings. Those buildings
Speaker 8: are very fragile and they have to use some additional
Speaker 8: equipment to.
Speaker 9: Peel back some of the the levels of floors.
Speaker 8: That collapsed and warrens of many more tragic fines.
Speaker 10: We do expect to see a lot more loss of life.
Speaker 11: It's going to be tragic. I want to brace everyone for.
Speaker 1: That, he says.
Speaker 8: The president has granted his monetary requests. I'm at Baxter Bloomberg.
Speaker 2: Daybreak, all right, Ed, thank you, and coming up on
Speaker 2: Bloomberg Daybreak, we'll have more global headlines, plus a check
Speaker 2: of sports, and this is Bloomberg.
Speaker 3: All right, Thanks Karen, and it tuned out for a
Speaker 3: look at some of the other stories making news in
Speaker 3: New York and around the world. For that, we're joined
Speaker 3: by Bloomberg's Amy Morris.
Speaker 12: Amy, good morning, Good morning, John, and you had mentioned
Speaker 12: that former President Trump is to be booked as early
Speaker 12: as tomorrow in Georgia. Well, defendants are slowly showing up
Speaker 12: at the Fulton County Jail to be processed in the
Speaker 12: Georgia election fraud case all this week. Bloomberg's at Nancy
Speaker 12: Lyons has that update.
Speaker 13: There are nineteen defendants, including former President Trump, and they
Speaker 13: have until midday Friday to surrender. Attorney John Eastman was
Speaker 13: one of the first to show up for processing.
Speaker 6: I am confident and the law is faithfully applied in
Speaker 6: this proceeding all of my co defendants, and I will
Speaker 6: be fully vindicated.
Speaker 13: Former President Trump has said he'll surrender to authorities Thursday,
Speaker 13: but his former chief of staff Mark Meadows is asking
Speaker 13: a federal judge to block state authorities from arresting him
Speaker 13: if he does not surrender. Nancy Lyons Bloomberg Daybreak, and.
Speaker 12: Now we're getting reports, Former Trump attorney and former New
Speaker 12: York City Mayor Rudy Giuliani will surrender today. ABC News
Speaker 12: is reporting Giuliani will head to Atlanta with former New
Speaker 12: York City Police Commissioner Bernard Carrick, who will help him
Speaker 12: through that process. Juliani's lawyers are reportedly working with the
Speaker 12: DA on a blond package. And we've been telling you
Speaker 12: about the GOP presidential primary set for tonight. Some candidates
Speaker 12: are crying foul after they didn't qualify for tonight's debate.
Speaker 12: Former Congressman Will Hurd tells ABC he has no intention
Speaker 12: of dropping out.
Speaker 10: I've always said my goal is not to peak on
Speaker 10: August twenty three. My goal is not to peak next week.
Speaker 10: The goal is to peak later in the winter, before
Speaker 10: the first election, before voting begins.
Speaker 12: Eight candidates are expected to be on the stage tonight
Speaker 12: in Milwaukee. Several who did not make the cut accuse
Speaker 12: the Republican National Committee of cherry picking the polls we've
Speaker 12: told you. Dick's Sporting Goods has seen a whopping twenty
Speaker 12: three percent drop in profits. The retailer, blaming what it
Speaker 12: describes as an increasingly serious theft problem, tells the Advisory
Speaker 12: Group Senior managing Director Joe Feldman says Dix is on
Speaker 12: a growing list of companies, including Target and Home Depot,
Speaker 12: sounding that alarm.
Speaker 5: A lot of the.
Speaker 6: Stolen merchandise just ends up being resold on the third
Speaker 6: party marketplace online.
Speaker 12: The National Retail Federation organized retail crime accounted for more
Speaker 12: than ninety four billion dollars in losses in twenty twenty one.
Speaker 12: Global News twenty four hours a day, powered by more
Speaker 12: than twenty seven hundred journalists and analysts in more than
Speaker 12: one hundred twenty countries. I'm Amy Morris, and this is Bloomberg.
Speaker 3: John H Right, Davy. Thank you very much, and that
Speaker 3: brings us to five to ten on dwell Street. That's
Speaker 3: time for our Bloomberg Sports Update, and for that, let's
Speaker 3: bring in Bloomberg's Dan Schwartzman.
Speaker 5: Good morning, John. Let's start out in Major League Baseball,
Speaker 5: where the Mariners remain red hot.
Speaker 14: I drive right field, give me up, bad go Josh
Speaker 14: Rojas two.
Speaker 5: Room, homer, four one Mariners. That's courtesy of MLB Network.
Speaker 5: The Mariners are now winners of eighth trade in, just
Speaker 5: one game out of first place in their division after
Speaker 5: knocking off the White Sox in Chicago six to three. Elsewhere,
Speaker 5: the Athletics sneaking past the Royals five to four, Raves
Speaker 5: getting past the Mets in Atlanta three to two, Red
Speaker 5: Sox falling to the Astros on the road in Houston
Speaker 5: seven to three. The Yankees are now losers of nine straight.
Speaker 5: They fall at home to the Nationals two to one.
Speaker 5: It's their longest losing streak since nineteen eighty two, while
Speaker 5: in ten innings, the Blue Jays lose at the Oriel
Speaker 5: six to three and the Giants fall to the Phillies
Speaker 5: in Philadelphia four to three. Major League Baseball has placed
Speaker 5: Tampa Bay Ray shortstop one Franco on an administrative leave
Speaker 5: amid multiple investigations into possible relationships in the Dominican Republic
Speaker 5: with underage girls. The twenty two year old has not
Speaker 5: played the past week after Tampa placed him on the
Speaker 5: restricted list. The All Star is in the second year
Speaker 5: of an eleven year, one hundred and eighty two million
Speaker 5: dollars contract in the NFL. The Tampa Bay Buccaneers naming
Speaker 5: Baker Mayfield as your starting quarterback over twenty twenty one
Speaker 5: second round draft pick Kyle Trask. Mayfield was the first
Speaker 5: overall pick of the Browns back in twenty eighteen, before
Speaker 5: being traded to the Panthers a year ago. The twenty
Speaker 5: eight year old was released by Carolina after Week twelve,
Speaker 5: before finishing up the season with the Rams. That's your
Speaker 5: Bloomberg Sports update. I'm Dan Schwartzman.
Speaker 14: From coast to coast, from New York to San Francisco,
Speaker 14: Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business
Speaker 14: app in Bloomberg dot Com.
Speaker 1: This is Bloomberg Daybreak.
Speaker 3: And good morning. I'm John Tucker.
Speaker 2: Will.
Speaker 3: At the heart of this year's hype around artificial intelligence
Speaker 3: sits in Vidia, the chip maker, opening it's books after
Speaker 3: the close of regular trading in New York today and
Speaker 3: with the preview. I'm happy to say we're joined by
Speaker 3: Bloomberg Technology reporter Alex Webb. Alex, thanks for being here.
Speaker 3: Appreciate it. If they don't meet their forecasts, Alex, I'm
Speaker 3: thinking that there's going to be bloody in the streets.
Speaker 3: Give us a preview.
Speaker 9: Yeah, it's certainly a company that has been bid up
Speaker 9: significantly in the past few months. Although interestingly, if you
Speaker 9: look at the multiple of which it's trading it's currently
Speaker 9: at forty four times it's forward earnings. Now that is
Speaker 9: a premium to the Philadelphia stock at Shane Semkinductor Indix,
Speaker 9: which is trading at twenty four times it's forward earnings.
Speaker 11: But it has come down quite a lot.
Speaker 1: Now.
Speaker 9: Of course, you know that Ford earnings Malta is partly
Speaker 9: because analyst ratings have been you know, they're anticipating higher
Speaker 9: revenue for the rest of the year, so any indication
Speaker 9: of a wobble on that front is likely to be punished.
Speaker 9: You know, this is the case. There were an any
Speaker 9: of the big tech companies right now. They're all been
Speaker 9: trading at very generous multiples and there's a lot of
Speaker 9: enthusiasm around them, but any hint of a wobble has
Speaker 9: broad implications potentially for the market itself, given the concentration
Speaker 9: of growth in those stocks.
Speaker 3: Okay, so what have they guided at this point and
Speaker 3: can they meet those expectations or at least you know,
Speaker 3: in terms of what the analysts are saying.
Speaker 9: Yeah, so they I mean, the reason for this huge
Speaker 9: surge is that they predicted this quarter they would do
Speaker 9: eleven billion dollars in revenue. That would be up from
Speaker 9: seven billion dollars the previous calendar quarter, and was about
Speaker 9: fifty percent higher than analysts at that time had been expecting.
Speaker 9: Now the consensus is very much in line with that
Speaker 9: fact is ever so slightly high. Eleven point zero four
Speaker 9: billion is what analysts are anticipating. The focus there will
Speaker 9: really be on the fiscal third quarter, which ends in
Speaker 9: at the end of October. Analysts are looking for twelve
Speaker 9: and a half billion in revenue in that quarter, and
Speaker 9: so that will be it's likely to be the real
Speaker 9: decider in how the market reacts.
Speaker 2: You know.
Speaker 3: The fascinating thing to me about this is that in
Speaker 3: Vidia seems to have been able to play both sides
Speaker 3: of the artificial intelligence story, the hype and the actual
Speaker 3: business associated with that. I wonder if you have any
Speaker 3: thoughts on that.
Speaker 9: Yeah, I think that's probably true. Look, if anything, they have,
Speaker 9: they've responded to the hype. You know, they weren't saying
Speaker 9: a year ago we are going to be delivering in
Speaker 9: this quarter eleven billion dollars of revenue.
Speaker 11: This came after Chat GPT.
Speaker 9: Right, the Chat GPT comes along, there's a huge amount
Speaker 9: of enthusiasm. Then the cloud computing giants, the likes of Google, Amazon,
Speaker 9: and Microsoft. They recognize that there is huge demand for
Speaker 9: this AI stuff, or at least expect there to be
Speaker 9: a huge demand for generative AI. So they start kitting
Speaker 9: out their data centers. And if you're going to kit
Speaker 9: out the data centers, well then you need the chips
Speaker 9: to do it. And that's why they turn to in videos.
Speaker 9: So in video is very much riding the wave of
Speaker 9: that rather than necessarily, you know, being a generator of
Speaker 9: hype and hype alone.
Speaker 3: Well, let's talk about the competition companies like Microsoft are
Speaker 3: there Are they frenemies to in VideA.
Speaker 11: No, I mean, in VideA is very much a supplier
Speaker 11: for Microsoft.
Speaker 14: There.
Speaker 9: Look, what we're starting to see is that some of
Speaker 9: these big tech companies are generating their own chips to
Speaker 9: power AI, but they're a little bit behind perhaps where
Speaker 9: in VideA is right now. And there's also a question
Speaker 9: of capacity because you know, they need a foundry to
Speaker 9: make this. A company like TSMC Taiwan Semi Conductor Manufacturing Corporation,
Speaker 9: they will they make this stuff under license from Nvidia,
Speaker 9: as they do for the other companies, for Microsoft, for Google,
Speaker 9: Apple and others. In video is the one that has
Speaker 9: a huge amount of capacity. Right now they are they
Speaker 9: have the product, it is available. That might change in
Speaker 9: the months years ahead, but in the short term in
Speaker 9: videos in a very good place.
Speaker 3: Okay, what next from me?
Speaker 4: In video?
Speaker 3: What have they done for me lately?
Speaker 9: It's really interesting seeing their CEO talking at various conferences
Speaker 9: where you know, he does show off the capabilities of
Speaker 9: their tech and the applications of their tech. And excuse me,
Speaker 9: at the moment, we're seeing pretty you know, rudimentary generative
Speaker 9: AI stuff, largely text based or sometimes image based. In future,
Speaker 9: we're going to be seeing it used in gaming. For instance,
Speaker 9: there was a fascinating video that CEO showed in Taiwan
Speaker 9: a few months ago where.
Speaker 11: You know, you're playing video game.
Speaker 9: Often in the example he gave, you go into a
Speaker 9: bar and you start interacting with the the the animated
Speaker 9: character there. Now, historically animated character will have three or
Speaker 9: four program responses. Perhaps in this version you can literally
Speaker 9: talk to them through your headset and they will react
Speaker 9: and give you completely new responses. They generation you time,
Speaker 9: but with a goal in mind to send you on
Speaker 9: to the next phase of the game. That is really
Speaker 9: the next sort of thing We're going to be seeing
Speaker 9: more sophisticated, more advanced stuff, but those games are being
Speaker 9: developed sort of right now and won't come to market
Speaker 9: for the law yet.
Speaker 3: You're listening to Bloomberg Daybreak today, your morning brief. The
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Speaker 11: I'm John Tyler and I'm Karen Moscow.
Speaker 2: Join us again tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak