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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with earnings from one of the Magnificent seven. N Video, the world's most valuable company, gave a tippet revenue forecast for the current period. It's a signal that growth is decelerating after a staggering two year boom in artificial intelligence spending. The chip maker says it expects sales to be roughly fifty four billion dollars in the third quarter. That was in line with the average Wall Street estimate,
but some analysts were projecting more than sixty billion. Matt Bryson is managing director of equity research at Whitebush Securities.
That's something I think about here is that Nvidia almost always leaves her. Over the last few years, they've left something on the table, and that that's something has consistently been, you know, two three billion. So when the guye to fifty four billion, well, what it seems like they've been telling the street is more like they can do fifty six to fifty seven billion. I don't think anyone's going to be disappointed if at the end of Q three they're coming in at those type of numbers.
Matt Bryce in a Webbush Securities has a two hundred and ten dollars price target on in Video. Right now, the stock is trading at one hundred and seventy eight.
Dollars Nathan and Vidia says that Trump Administration's planned a charge a fifteen percent commission on its AI ships sales to China has not progressed beyond the early stages and
could pose legal risks. The company said it excluded as much as five billion dollars in possible China sales from its projection because it can't be sure whether geopolitical tensions will allow it to fill orders and while in Video, CEO Jensen Wong says they're still pushing to bring their most advanced AI chips to the Chinese market.
So I think, you know, the opportunity for us to bring Blackwell to the China market is a real possibility, and so we just have to keep advocating the the sensibility of and the importance of American tech companies to be able to lead and win the AI race.
Nvidia CEO Jensen Wong ended his conference call by saying, quote, opportunity ahead is immense, and a new industrial revolution has started and the AI race is on well.
Turning to the broader market now, Karen. Despite the Nvidia pullback and uncertainty over the future of Federal Reserve Governor Lisa Cook, stocks are trading near record.
Highs this morning.
Amanda Agatti of pn C Bank explains why markets have been discounting the Trump Cook saga.
I think the equity market is really largely ignoring it. One because it's starting to get conditioned to a lot of this purple haze policy uncertainty, but two because I think the bottom line is rate cuts are more likely than not regardless of what ultimately happens with Cook, and I think that is the most important thing for the equity markets path forward.
P and C Banks.
Amanda Gotti says expectations for rate cut could get murky if inflation surprises to the upside. The Fed's preferred read on price pressures, the Core PCE index, comes out tomorrow.
Nathan, US companies are plenty of buy back shares at a historic pace, and we bring in Bloombergy's John Tucker for the very latest.
John, Good morning, and good morning, Karen.
It's a sign of corporate America's confidence in the economy. Announced buybacks surpassed a trillion dollars last week. That's a record over the last few months. Corporate heavyweights, in particular the financials and technology, they have given the greenlight to large share repurchasing programs. Back in May, you'll recall Apple announced to a buy back one hundred billion dollars in stock. Alphabet, JP, Morgan, Chase, goldmund Sacks, Wells Fargo, and Bank of America have also
announced buybacks of at least forty billion dollars. And the Lenni is just last night with the Nvidia announcing a sixty billion dollar buy back. Berni associate says, earnings are good, they have enough money for capital expenditures and this is a nice way to reward investors.
You know.
Yr comes John Tucker, Bloomberg Radio.
All right, John, Thanks, It's head to Europe now, where French spiritsmaker Pronel Ricard's been updating sales in the week of US tariffs. Bloomberg's Ewan Pots joins us from London with the very latest Jewan.
Nathan and Karen Perno Ricards shares one of the biggest gainers in Europe. This morning, the company behind Absolute Vodka and Jamison Irish Whisky has topped earnings expectations a forecast i pick up in demand in the second half of the year. On US tariffs, including the ten percent levy on UK exports, Perno says the total impact on a fullier basis will be thirty five million euros. The company says it will partly mitigate the tariffs by some price
increases in selected markets. In London, I'm youwing pots, Bloomberg Radio.
Are you in thanks to Japan's top trade negotiator is visiting the US suppress for lower tariffs, and Bloomberg Amy Morris has more from Washington.
Japan's top trade negotiator, Riosi Agazzawa, will push for the tariffs agreed to in July, including lower duties on cars and auto parts. Japan wants those duties cut to fifteen percent and to end the stacking of previous duties on fifteen percent universal tariffs. Look for Akizawa to urge the Trump administration to implement these changes as soon as possible, but the US wants to see a promised five hundred
and fifty billion dollar investment mechanism up and running. Details of how that fund will operate are still not known. In Washington, Amy Moore as Bloomberg Radio, na me thank you.
In speaking of Japan, Warren Buffett's increasing his bet on the country. His Berkshire Hathaways raised its stakes in Japanese trading houses Mitsubishi and Mitsui. Buffett first revealed stakes in the trading houses in twenty twenty. Berkshire has holdings in Japan's five biggest trading firms.
Nathan the White House is ramping up pressure on India over its purchases of Russian oil and a conversation with Joe Matthew on Bloomberg's Balance of Power. White House trade advisor Peter Navarro called Russia's conflict with Ukraine Mody's war.
The road the piece runs at least partly right through Newdella's were I mean Modi's war is because the road to peace runs in part through New Delhi.
I mean that's a lot of money.
Right, I was. Trade advisor Peter Navarro spoke after the US doubled tariffs on India's exports to fifty percent is punishment for its Russian oil purchases. China remains the world's largest Russian crewed buyer, but the White House has extended a ninety day trade truce with Beijing.
And Karen, there has been another major shakeup within the Trump administration. The White House has fired Centers for Disease Control Director Susan Monterez just weeks into her tenure. Her attorneys say Health Secretary Robert F. Kennedy Junior is targeting her because she refused to quote rubber Stamp unscientific reckless directives, and now at least three senior CDC leaders say they
are resigning in protest. All this comes weeks after the CDC was targeted in a shooting that killed a police officer. Current and former Health and Human Services employees wrote an open letter after that attack blaming Kennedy for spreading vaccine misinformation.
Time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloombery's Michael Barr.
Michael, Good Morning, Good morning, Karen.
Vigials held last night for the victims of yesterday's horrific mass shooting at a Minneapolis Catholic school, A shooter opened fire during mass at the Annunciation Catholic School, killing two children and injuring seventeen other people before dying by suicide. Speaking at Glenhurst Park, Minneapolis Mayor Jacob Frey deplete it with the people in attendance to speak up and call for gun control.
While thoughts and prayers are great, they are not adequate.
These children were literally praying at this moment.
Mayor Fry. The dead include an eight year old and a ten year old child. Minnesota Governor Tim Walls, we.
Often come to these and say these unspeakable tragedies or there's no words for this. There shouldn't be words for these types of instances because they should not happen.
Minneapolis Chief of Police Brian O'Hara spoke about the shooter.
The coward that shot these victims took his own life in the rear of the church. That coward has been identified as twenty three year old Robin Westman, no prior criminal history.
Minneapolis Police Chief Brian O'Hara says while they are searching for a motive, the shooter is said to be a former student. The injured children are between the ages of six to fifteen. There were also three adult parishioners, all in their eighties attending the mass that were also shot, although the wounded are expected to survive. Authorities say a mass Russian drone and missile attack on Ukraine's capital has
killed at least ten people and wounded forty eight. The attack early today on Kiev was the first major Russian combine combined attack on Kiev in weeks. The Immigration detention center President Trump called Alligator Alcatraz will be closing up shop, according to new details. Last week, a federal judge in Miami ordered the center to wind down operations. Alligator Alcatraz, located in the heart of the Florida Everglades, was rapidly built,
capable of holding up to three thousand detainees. The facility has drawn public backlash over its location and living conditions. Global News twenty four hours a day and whenever you want it with Bloomberg News Now, Michael Barne, this is Bloomberg.
Hevin Hey, Smichael time now for our Bloomberg Sports up dating, Brown he Bringhi, John Staff.
Shower, Thanks, Daron ywed Wider Cup down, and Keegan Bradley filled out his roster for the upcoming Ryder Cup. At Bethpage on Long Island. Did not pick himself to play pick Justin Thomas, Colin, Morri Kama, Ben Griffin, Patrick Cantley, Sam Burns, and Cam Young. Tommy Devido, the quarterback released by the Giants the other day, has been claimed on waivers by the Patriots. The Mets with a six stopping shut out of Afhillies. The rookie Nolan MacLean pitched eight Indians.
He's the first Met pitcher to win its first three starts. That's air Bloomberg Sports Update.
Stay with us. More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
Well, wasn't the blowout quarter many investors have come to expect from the world's most valuable company. Nvidia delivered a more muted revenue forecast for the current quarter, raising some concern perhaps that the breakneck growth we've seen in AI spending maybe tapping the breaks. But in Vidio CEO Jensen Wong is thinking longer term.
Over the next five years, we're going to scale into with Blackwell, with Rubin and follow ons to scale into effectively a scree to four trillion dollar AI infrastructure opportunity.
That was in Vidia CEO Jensen Wong at the conference call last night. Joining us this morning, Dan Ives, Global head of Technology Research at web Bush Securities.
Dan, Good morning.
I know we've talked before about expectations for AI spending in the longer term, but when we hear three to four trillion dollars in the next decade, is.
Jensen Wong continuing to set the bar too high? Good morning? Yeah.
I mean, look, I think it's these are jaw dropping numbers, and the reality is there's no one that has a better view of what's happened when it comes to AI revolution than the godfather of AI, Jensen himself. And I think this is just not just a bullish forecast. I think it shows we are just early days in terms of just what's really going to be a fourth Industrial Revolution.
Now in terms of the current forecast, fifty four billion dollars in sales in this quarter.
That was in line with estimates.
A lot of investors have been expecting that in Vidia will continue to go above those inline estimates. Is fifty four billion enough to keep the momentum going for this company?
Yeah?
Look, I think you have to also look at China because this excludes any China revenue. When you think about age twenty, that could be two to five billion, and then you look at what could be really fifty percent growth over the next year. I think that's really the call here is that at first, yeah, you could say it's conservative, but these are jaw dropping numbers when you look at the growth and now China getting added back
to that. Given the green light that we're seeing from the White House, Look, there's one chip in the world. If you in the AI revolution, it's in Vidia.
Is it really a green light? Though?
I mean, we got the you know, the fifteen percent revenue sharing agreement that the White House says it's imposed on in Vidia. The company itself sort of raised some questions about that. How green is that light for China penetration?
Look to essentially pay for play model, right, and like, obviously there is going to continue to sort of be some noise around the situation, but the reality is that China market is going to be reopened for in video and in video wants, you know, not just a factor into China, but they don't want to give on a silver platter. Huawei twenty billion thirty billion a year and I think the White House you've seen now the path
is there. So I think when you start the factor in with China revenues combined with what the company's seeing, massive demand that's really off the charts, and there's this doctor is going to be green.
Does China want in video?
There's been a lot of uh motivation in the from the Chinese government to grow its own AI accelerators and concern raised about you know, they say that there could be trackers on in video chips as well.
Does China want in Nvidia?
Look, there's going to be a back and forth, right, this is a political you know, I obviously continued game of chess being played between DC and Beijing. But the reality is in Vidio chips are years ahead of any other chip. So when you go to Chinese big tech companies, that's chip they want. So it comes down that there
could be some political grand standing. But in Nvidia continues to be the chip that Chinese players want, and I think that look as is all plays out, it's just going to continue to show that there's one chip fuel in the AI revolution, whether in US or China, and it's in video.
Just got thirty seconds left, Dan, your colleague at Wedbush, Matt Bryson's got a two hundred and ten dollars price target on in Vidia. It's not there yet. Are you making any changes to your price target after these earnings?
No, Bryson av dark you ten. But we ultimately believe this is a five trillion dollar markup as we go into early twenty twenty six. I think you know it's only second inning of a nine inning game in terms of AI.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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