Nvidia Gives Rosy Outlook, Fed Pause Bets Grow

Good morning.

I'm Richard Salama and I'm Derek Krisner. Here are the stories we're following today.

Let's get back to Videos, which is saying after the shares up around about seven percent of the company, came out with revenues for the current quarter as a projection, at least saying that the current quarter will have revenues of sixteen billion dollars.

In looking at analysts, they'd.

Really been doing the calculation of about twelve and a half billion. These strong forecast, of course, fueled by surging demand for in videos, artificial intelligence processes in data centers. We had from Spear invest founder and CEO Ivana de Levska.

People were expecting that the cloud vendors will have their own solution by now, but just because of the way the generative AI wave came pretty strong, there is really no time for the cloud vendors to be coming up with their own solutions, so you're seeing everybody basically standardizing on the Nvidia hardware.

Separately approved an additional twenty five billion dollars worth of stock buybacks and videos with second quarter revenue the double to thirteen and a half billion dollars. With the predictions from analysts of about eleven billion. As I said, media shares up in video shares up oh, I think just about seven percent, a little bit more than seven percent.

Of late trade.

Now onto one of our top stories of the day. The founder of the Wagner Mercenary Group, Yevgeny Progosion, was one of the passengers on a private jet. It crashed today and Russian aviation authorities are saying everyone on board was killed. This aircraft, by the way, was on its way from Moscow to Saint Petersburg. There was no immediate comment from the Kremlin on this crash. However, US officials were quick to suggest Progosion may have faced Russian President

Both the previous episode with the Wagner Group and this episode show that Russian government and Russian intentions are increasingly uncertain, and that's a very bad thing for markets, among others.

That is Terry Haynes with Pangae policy. He went on to say the incident might be felt by both the oil and grain markets where supplies could be impacted.

Rashan Right, Let's move away from the geopolitics and have a look at this symposium coming up, because traders are eyeing what top economic leaders have to say when they gather tomorrow at that Kansas City FED Annual Economic to Meet in Jacksonville, Wyoming.

Here's Michael McKee.

They will hear from FED Chair J Powell, ECB President Christine Legard, Bank of England Deputy Governor Ben Broadbent, Bank of Japan Governor Kazuo Yueeda is also on the agenda. The focus of the conference itself is on structural changes to the global economy. What happens when the COVID induced economic disruptions are behind us? Do we return to the low inflation, low interest rate world before the pandemic, or do growth rates, inflation rates, and interest rates remain higher.

Well Hedge funds and private equity firms are now facing some new rules on disclosure the story from Bloomberg's and Kates.

The Securities and Exchange Commission has adopted new policies requiring private funds to provide details about quarterly fees and expenses to investors. Plus they are barred from charging fees to cover regulatory investigations and compliance costs unless investors agree. It is the latest effort by the SEC to tighten its grip on the fast growing multi trillion dollar industry, which is said the agency is overstepping its authority in Washington and Kates Bloomberg Daybreak Asia.

And we're also hearing firms will be prohibited from allowing some favored investors to cash out more easily than others unless those deals are offered to all fund investors.

Rashad all Right.

Chinese presidents called on the Bricks Block of Emerging Markets to fast track plan to expand its membership. Let's get details now from bloombigs Joanne Wall.

She told a summit in South Africa that he's glad to see growing enthusiasm from developing countries about participating in BRIGGS. The Chinese President's comments also come after Indian Prime Minister Narendra Modi said he fully supported expanding the block. We hear BRICKS Leader will make a more detailed announcement on clearing the path for more members that will occur before the conclusion of their annual summit in Johannesburg, which ends

We were talking a moment ago about the rally in the US equity market. Today the Nasdaq composite jumping one point six percent. Now, equity market players appear to be more optimistic. The Trader sentiment survey from Charles Schwab found forty four percent are now bullish. That's up from thirty two percent in the second quarter, and at the same time, fewer clients think a recession here in the States is likely.

Eddie, all right, thank you, Doug, you're right provotion. Of course, the man who had threatened a coup two months ago in Russia Bloomberg's Kaylee Lions.

Here pass The Russian state media is reporting that, indeed, it is confirmed that Progosion was on this plane. Of course, it had already been reported in Russian state media that he was on the passenger list, but they are saying that he was on board this aircraft, this jet, that craft, leaving no survivors among the three pilots or seven passengers.

Now, US President Joe Biden has been briefed.

He spoke to reporters after being briefed on the plane crash by those close to him, and he said he does not know for a fact what happened, but he is not surprised. The exact quote, I'm not surprised. And when he was asked if Putin was behind it. He said, there's not much that happens in Russia that Putin is not behind, but I don't know enough to know the answer.

Yeah, he says, this is a way that Russia works. Dueling Republican Party events tonight GOP Debate and Donald Trump with Tucker Carlson Bloomberg's Jordan Fabian.

Here, the path to winning the nomination is taking on Trump, but the political market is not incentivizing them to do it on the Republican side, So it's really a tough conundrum for all of these candidates, including Rod DeSantis on the stage about how to break through and get after Donald Trump.

Yeah, and then the Trump Carlson.

It's important to remember that this interview is pre taped, so I wouldn't expect any live reaction to what's going on on the stage with him in Tucker, but I think you would expect Donald Trump to hit Ronda Santis as he has done for months now and also really exhibited general election strategies.

Yeah. Because it's pre recorded, one wonders whether it's been edited as well. Former Trump attorney Rudy Giuliani, meanwhile, is surrendered in Georgia today agreed to a one hundred and fifty thousand dollars bond. Spoke with reporters on his way out, saying, Da Fanie Willis will go down in history as having conducted the worst investigation under the US Constitution.

People's first Amendment right to advocate the government, to petition the government grievances like an election they believe was poorly conducted or falsely conducted.

People have a right to believe that in America now.

Earlier, in talking with the reporters when he was on his way to Georgia, he said, whether you like Trump or not, they will come after you too. And he's had his mugshot taken.

I'm a big boy.

I can take it. I fought battles much worse than it against people much tougher than them.

So he is at least hanging publicly with Trump. By the way, as I say, the mugshot has been released to the media if you're interested in taking a gander. Biden administration is in talks with Venezuela to explore a temporary lifting of crippling sanctions in exchange for allowing fair elections next year. The story here from Bloomberg's Charlie Pellette.

Sources say the preliminary discussions involved senior officials from both nations, including Venezuela's Head of Congress, Or Hey Rodriguez Washington, who's floated the idea of sanctions relief to persuade the regime of President Nicholas Maduro to hold a competitive presidential vote

All right, thank you very much, Charlie. Global News power by more than twenty seven hundred journalists and analysts in over one hundred and twenty countries. In San Francisco, I'm at Baxter and this is Bloomberg.

Let's get to our guest. Eric Sterner is with us. He is the chief investment officer at a Pollen Wealth Management. He joins us from Martinsville, New Jersey, right outside New York. Eric, thanks for being with us. First, your reaction to the numbers that we had after the bell from in video seems like another stunner.

Yeah, well thanks for having me, and yeah, no, it's amazing. The video has been at the center of this AI frenzy and that's what's really driven the market this year. And they continue to just exceed expectations, and they gave the markets and the bulls or shot another shot of optimism as the market was starting to pull back over the last few weeks.

Eric, I mean, you.

Know, you look at what people you know, look, anything which has got AI is just getting a rocket put underneath it in recent months.

You know, what are they actually price singing?

Is it?

You know all the jam coming tomorrow.

In ef fact, Well, yeah, I mean that that's with all new technology or that that could revolutionize sectors. You know, there's always this bubble that that builds up, and I think we're still at the very early stages of a bubble. So I'm not I'm not saying there's gonna be a

So in the walk up to the in Nvidia earnings, there's been this debate in the marks to whether or not in video was a more important factor than the speech we're going to get at the end of the week from Fed shared J. Powell, how do you weigh in on what's been happening in the bond market today, in particular with yields kind of tumbling right across the curve. We had some week PMI data, not just for the US but Europe. Are yields kind of have they topped out? Let me ask that first.

I think they are starting to top out. We've seen the economy continue to grow even with all these rapid series of rate hikes, and even I know the Atlanta Fed predicted GDP to be five point eight percent in the third quarter, which I don't think anyone really believes is going to be that optimistic. But we're seeing many mixed signals with the economy, and I do think, you know, the economy is starting to contract, so I do think

Yeah.

Absolutely.

You make a very interesting point here that the in the Fed's history, it's only cut rates six times when unemployment was below four percent.

Exactly exactly. I think. I mean, because the economy is doing well, what is just giving more room for the Fed to maintain these restrictive rate levels. So I just don't see the FED seeing any reason to cut rates right now because I think there's high expectations in the markets that were the inflation is going to be a bumpy and we've see increased energy prices, We've seen continue to see high wage growths. Yes, it's slowing down, but still higher than the want to see because of the

One of our stories today is how global investors have been shedding the big blue chip names in China during the longest stretch of outflows on record very quickly. Eric, would you be long the Chinese market given that we have seen just stunning punishment of asset prices right now, maybe now is a buying opportunity.

Yeah, in the long run, absolutely. I think in the short term, I think we could still see some more downside with China, but we know that's number two global economy. So yes, if you're looking years out when I have a long term play, I think it's a great time to buy. But I do think they have many issues there and the aging demographics, high youth unemployment that they need to straighten out. And they're still trying to transition from a nation that depended upon exports to more consumer

This is Bloomberg day Break Asia. You're a morning brief on the stories making news from Hong Kong to Singapore and Wall Street.

Look for us on your podcast feed every day, on Apples, Spotify, and anywhere else you get your podcast.

You can also listen live each day on Bloomberg eleven three to oh in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh six' one in Boston, and Bloomberg nine sixty in San Francisco.

Our flagship New York station is available on you Amazon Alexa devices. Just say Alexa played Bloomberg eleven.

Thirty plus listen coast to coast on the Bloomberg Business app. Sirius XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot Com. I'm Doug Prisner and I'm Richard Salama.

Join us again tomorrow for all the news you need to start your day right here on Bloomberg day Break Asia