Good morning. It's Thursday, the twenty fourth of August in London. This is the Bloomberg Daybreak Euroate podcast. I'm Stephen Carroll coming up today. Russia says the Wagner Mercenary chief you of Genny Progosian has died in a plane crash. Nvidia's stock soars as insatiable AI demand fuels a blowout forecast, and Nigel Farage fumes as nat West debates clawing back Alison Rose's two point four million pound notice period pay. Let's start with a und up of our top stories,
our top stories. You've Guenny Progosian, the man who led a mutiny against Putin's regime just two months ago, is now presumed dead. Russia's aviation authorities say he was on board a plane which crashed on a journey from Moscow to Saint Petersburg, killing all passengers. Former US Ambassador to Poland, Daniel Freed says no one would be shocked if Putin had a hand in this.
Putin has a habit of killing his opponent, and many of us who watched the mutiny were surprised that progosion Is left let off so easily or appeared to be, but it seems that Putin wanted to take stock of Progosions network find out where Progotions links were and as the old mafia saying goes, revenge is a disc best eaten cold.
Freed wasn't the only one to say that. President Joe Biden telling reporters he wasn't surprised by the reports. The Kremlin has repeatedly been accused of targeting its opponents and allegation officials there deny shares and the chip maker and Vidia have soared after the firm announced yet another blowout quarterly revenue forecast. The current darling of the tech industry projects that sales will hit sixteen billion dollars in the
next quarter. The massive beat on analyst expectations is being driven by surging global demand for the text giants' AI processors. Boomberg Technologies. Ed Ludlow breaks down the outlook.
The way that executives on the call described it is they have visibility on AI demand going into the next fiscal year. CFO collect Cress called it quote tremendous and broad based AI demand in the supply side of the equation in video, does expect supply to increase in each quarter for the next year, and they said that suppliers, namely TSMC contract manufacturers, have really stepped up to meet the demand in videos.
Postmarked US gain adds to a more than threefold increase for the stock this year. Private US funds have been hit with a raft of new rules from the Securities and Exchange Commission. The SEC says private equity firms and hedge funds must now detail quarterly fees and expenses to investors. Firms are also being prohibited from allowing some favored clients to cash out more easily than others. It's the latest move by the US regulator to tighten oversight of the
fast growing, multi trillion dollar industry. UBS is poised to keep Credit Sweez's domestic bank while dropping the brand name the Trouble Swiss Lenders. The Trouble Lenders Swiss operation has long been its best performing unit. The two banks combined will make up over a third of deposits and a quarter of mortgage lending in the country. The plan will likely result in thousands of job cuts for credit suite
staff in Switzerland. NatWest says it hasn't decided whether or not to clawback compensation totaling two point four million pounds from Alison Rose as she works a twelve month notice period. The former CEO was forced to step down last month after giving inaccurate details to journalists about the closure of Nigel Farage's bank accounts. Responding to news of Roses pay for as described it as a quote sick joke.
This is the corrupt British establishment looking out for its own. It's the corrupt British establishment at its very very worst. Any employee of NatWest that had done what she'd done would have been out the door and would not have even received their month's.
Matt West says Alison Rose will continue to be compensated as their investigation into the Nigel Farage dbanking case continues. Donald Trump skipped to the Republican debate stages of the other presidential candidates, vowed to reverse Joe Biden's economic plan. Instead, he used a pre recorded interview with former Fox News host Tucker Carlson to attack his opponents.
I have never seen spirit like it is right now, and the reason is because Crooked Joe Biden is so bad. He's the worst president in the history of our country.
Trump added in the interview that he sees Fox News as unfriendly to him. The front runner is hoping a lead in the polls will allow him to avoid confrontations with contenders like former Vice President Mike Pence and Florida's Governor Randa Santis. And India has become the first country
to land a spacecraft near the Moon's south pole. A rover will now analyze the chemical makeup of the Moon's surface and search for water over the course of one lunar day, which short, but it's actually the equivalent of to fourteen days on Earth. Here's the reaction in the control room when the rocket achieved a soft landing.
Geeha half of please.
Green predicted the head gehabout langdon margin.
The success comes just days after Russia's attempt at a lunar touchdown in the same area ended in failure. Those are your top stories on the markets. The MSCIS specific index is trading one point two percent higher now, Your stocks fifty futures are eight tenths of one percent higher, and the tenure treasury yield is one and a half
basis points higher at four point two one percent. Another story that comer this morning is are from our opinion columnist to Marcus Ashworth writing about rents in London a subject of much debate as we see the pressure on the mortgage market feeding through into the rental market here in London. Marcus looking at some of the particular pressures being faced in London as the chronic lack of properties
is driving rents up even higher. About twenty seven percent of properties in London are rented, so much higher than the national proportion. Here the Royal Institute charges of ayr's latest report showing that agents expectations for future rent increases at its highest reading ever, forty three percent of renters surveyed by the ons saying they're having difficulties affording higher payments.
This is further pressure being driven up on the market here, and Marcus points to the lack of supply being the crucial issue, quoting figures from the Center for Cities think tank about an undersupply of some four million dwellings in the UK that it would take fourteen years of construction
according to Capital Economics to remedy the shortage of housing. Here, Marcus saying that of course this is an issue that could be of major debate in the next election, as those people who are struggling to pay their rent may let the policies outlined by the parties determine their vote. So a great read if you're looking to understand they pressure on the rental markets in London. From Bloomberg Opinions
Marcus Ashworth this morning, that's starting to get more. Now on the results in the chip maker in video, the company reporting a third straight sales forecast that's a past Wall Street estimates, fueled by surging demand for its AI processors. Boomberg Anco Tomackenzie joins us now for more on this. Great to have you with us, Tom. Another impressive beat for the last quarter and in the forecast. Any signs in these results of the AI boom peaking.
It is remarkable in just the context in terms of how the markets have been looking at this. I mean literally there has been a debate this week as to what's more important the speech by the Fed chair Jpowel on Friday in Jackson holl All the results from in video. We do have those results, as you say, a massive beat and the answer to your question is no, it doesn't look like the demand for these AI chips is slowing anytime soon. This is the third straight sales forecast
that beat estimates. They're looking now in Video at sales of about sixteen billion US dollars in the three months that end in October of this year. That compares the estimates of twelve fezo point five billion from the analysts for the context to Care, that target is nearly as high as the company's total annual sales in twenty twenty one. Where is this demand coming from is coming from businesses that are starting to incorporate those chat GPT style services
and platforms and abilities into their businesses. That's putting huge demand on data centers, and those data centers need those very powerful GPU chips that in Video specializes in to power that and to allow those models, those large language models to be laired on top of those data centers. And that's where the demand comings from. And in Vidia ces no letterup.
There had been concerns about supply constraints in this area as well. Any signs of that arecpearing in these results.
You're absolutely right. This is one of the key areas that ANAS has been looking for in terms of potential weakness. The expectation was, yes, there was going to be very strong demand, but would they be able in video to be able to match that demand with supply. They don't manufacture their own chips. They rely on Samsung TSMC over in Taiwan to actually build and produce and churn out
the chips for them. But the CFO on the call said, no, they're not seeing any signs of constraints in terms of supply. The supply chains are looking pretty smooth. They are able to match the demand at this point. And that's really really significant in terms of the different parts of this business. They supply chips to the auto's industry, to gaming. That used to be the key part of this business. They've shifted from gaming. Now it's the data centers. It is
the biggest revenue stream. And another headline that came out of these earnings is this twenty five billion dollar buy back.
Yeah, and this is a fascinating element of the story as well. It's nice typically a time you'd see companies buying back shares given that their share price is so high.
Yes, and if there is a potential weakness, then maybe it's the buy back, because what does it flag. According to some analysts, it suggests, look, if you're handing this much cash back to shareholders at this potential and at this point, maybe it suggests that there's not that much more market share to carve out. Why aren't you using that money to build out more facilities, to spend more on R and D to develop new products. That is
potentially a concern on the geopolitics. It's really worth noting as well. In Vidia isn't able to sell the full suite of its products to China. It has to get licenses for the very high end chips that it may want to sell into that economy. So just think about that, the second largest economy is essentially a write off for in Video when it comes to the most sophisticated part of its chips portfolio. And despite that, it's still seeing
this incredible demand. Maybe the buyback signals that the market share is starting to shrink for this business. It's a potential fly in the ointment, but top line, this is a very very solid outlook from this company.
Tamaccanzie Blue Riganko, thanks so much for joining us with the details of a up next MP freebies and India's moon landing.
Now the paper review on blue Bird day Break Europe.
The news you need to know from today's papers.
Ale Ane gerins is with us with the details of those stories as well. Morning to you Leanne. Let's start with a story in the Financial Times Cammy Badenox seeks cash for a UK advanced manufacturing plan.
Yes, indeed, Stephen, good morning to you too, and the Financial Times has his story on the Business Secretary urging the Treasury to provide financial firepower for a new advanced manufacturing plan. Now, this will set out how Britain intends to compete in the cut throat global fight that we are seeing over investment in green technology. Now, government insiders say Kemy Beijannock and the Treasury are working on a
plan ahead of the Chancellor Jeremy Hunt's autumn statement. This is according to the ft The advanced Manufacturing Plan is focused on car and aerospace industries and it's also a response to that huge billion dollar pack of clean energy subsidies offered by Joe Biden's Inflation Reduction Act, which we've been speaking a lot about Richie Soon Act. Stephen was actually the Chancellor back in twenty twenty one when the
government's industrial strategy was completely act. However, elements of it are trying to be revived and being brought back because this is following criticism from business. Those back in Kenny Badenox say new money would be required on top of existing government schemes such as the eight hundred and fifty million pound Car Transformation Fund, which helped to support the
Tata factory. But Jeremy Hunt's allies say discussions about additional money and the precise form of advanced manufacturing plan would not happen until after the summertime. Appears to be a rifted there because Kemmy Badenac really wanting more financial firepower to compete with the likes of the European Union and the USA.
Okay, really interesting to see that latest on that particular story, Leanne. Let's go to the Guardian next. What says that more than one hundred MPs received freebies worth one hundred and eighty thousand pounds this summer.
Yes, indeed, some of them had a great time. They went to concerts, they went to Wimbledon. But let's all break it down. More than one hundred MPs have enjoyed free hospitality to what I said, concert sporting events worth more than one hundred and eighty thousand pounds this summertime. The tickets were given away by the likes of banks, big oil companies and the gambling industry, and also media firms.
The Chancellor, Jeremy Hunt, Oliver Dowden and labor leader Kia Starmer are among those who have benefited from this new sort of craze. Is what the Guardian calls it of politicians accepting giveaways. Jeremy Hunt taken to the Chelsea Flower Show by Lloyd's Banking Group. It was worth more than six hundred pounds. He also apparently accepted theater and opera tickets.
Paul Scully, as Science and Technology Minister, went to a Bully Joel concert after a betting and gambling company gave him tickets, but he also enjoyed Wimbledon hospitality Stephen to the tune of one thousand, five hundred and sixty pounds. Keir Starmer was given Coldplay concert tickets and also the Jockey Club gave him a box and hospitality at epsom Derby Now that was worth while over three thousand, seven
hundred and sixteen pounds. Listen accepting hospitalities not against the rules for MPs, according to the Guardian, but critics say free tickets could leave MPs open to influence from companies providing benefits. And it's also not a good look because we're literally in the cost of living crisis. So the newspaper says, you know, this is not something that MPs should be doing in many ways while people are struggling to make ends meet.
Yeah, well, of course, it's going to be very interesting to see what political hay is made of the details of this. As you say, the fact that they have to be declared means that it can be used to for criticism against these politicians as well. Lean, let's go to the Telegraph next, which has some reporting around the Indian moonlanding.
So yesterday we're all like, oh, is it going to happen? Isn't it going to happen? But has happened. India has become the first country ever to land a spacecraft on the far side of the Moon. And speaking after the successful landing yesterday, Narindra Mody, of course, a Prime Minister of India, said the sky is not the limit. This is a victory cry of New India. But the successful
mission really stephen. The Telegraph touches on the fact it's reopened questions over who has the rights to exploit our lunar neighborhood, and it's water because they're thinking of using the Moon's resources when it comes to mining. Not right now, it's a couple of hundred years away, but it could
still happen. So now who owns that land? Because India's obviously run won the race there and the landing follows Russia's dramatic failure to make it their first earlier this week as it's Luna twenty five probe did crash land on Sunday. India actually spends significantly less on its space program than the US and China, but it's been successful in its landing. But the big question who is going to own those resources? Now?
This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Street and beyond. Look for us on your podcast feed every morning on Apple, Spotify and anywhere you get your podcasts. You can also listen live each morning on London Dab Radio, the Bloomberg Business app, and Bloomberg dot Com. Our flagship New York station, is also available on your Amazon Alexa device. Just say
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