Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, This morning, Surgeon. The Nasdaq futures follows an earnings blowout from in Video. That stock is up another eight percent this morning. The chip maker's results and outlook beat estimates thanks to a surge in demand for artificial intelligence processors. Bloomberg Zed Ludlow has more from San Francisco.
There is staying power for Nvidia's AI story. The guidance for the fiscal third quarter is sales of sixteen billion plus or minus two percent. That's about twenty nine percent above what analysts were expecting. And 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, ed Ludlow for Bloomberg NESE in San Francisco.
All right, ed, thanks well.
Nvidia stock is now at more than two hundred and twenty five percent on the year despite the game. Dan Morgan at Snovius Trust says the valuation is.
Not that crazy.
I think if you look at the stock as on a forward multiple basis and new factor in the tremendous year over year growth that they're getting right now and the momentum that they're getting on this quarter to quarter basis, the stock to me doesn't seem that excessive, and Dan.
Morgan at Senovius Trust says in Nvidia will give a big boost to the NASDAC. The index was on track for its worst month of the year before yesterday's results.
Now, the earnings blowouts not only making Nvidia investors happy this morning, Karen, it's also boosting the wealth of CEO Jensen Wang. His fortune grew as much as four point two billion dollars, bringing his net worth now to around forty six billion. If that gain is sustained, Wong would end up among the world's twenty five wealthiest people.
While investors react to Nvidia earnings, here's another potential market event going on in Wyoming. Economists are gathering in Jackson Hole in preparation for remarks from FED Chair J Powell and Europeans Central Bank President Christine Leaguard. Bloomberg's Tom Keene is in Wyoming and leads our team coverage.
Karen and Nathan, I think it's going to be interesting on a Thursday, we look to Friday, Yes, Chairman Poull's speech, But far more importantly and underplayed in the American media is Christine Laguard's speech, which follows oftentimes on a Saturday,
but I think because of schedule. A president of the European Central Bank speaking in the early afternoon of wyoming Friday, It's going to be interesting to see what Laguard says with the real difficulties in the European economy, how that redounds over to the United States.
All right, Tom, thanks and tune in for our comprehensive live coverage from Jackson Hall. The main event gets underway tomorrow with a special four hour edition of Bloomberg Surveillance starting at eight am Eastern, and in the afternoon, Tom sits down for an exclusive interview with ECB President Christine Laguard. Catch that conversation at the close of US markets at four PM.
Lots to look forward to. Let's shift to politics now. In the major story today coming out of Milwaukee, eight Republican candidates squared off in the first debate of the presidential race. Former President Donald Trump wasn't at the event, hosted by Fox News, so the remaining contenders trained their fire mostly on President Biden and his policies. Here's South Carolina Senator Tim Scott.
Joe Biden's Biden nomens has led to the loss of ten thousand dollars of spending power for the average family.
Florida Governor Ron DeSantis got some applause when he was asked whether he'd keep supporting Ukraine.
I'm not going to send troops to Ukraine, but I am going to send them to our southern border. When these drug pushers are bringing fentonyl across the border, that's going to be the last thing they do. We're going to use force and we're going to leave them stone cold there.
But entrepreneur Vivek Ramaswami was a frequent target of attacks On stage, he put forward economic policies of his own.
Unlock American energy, drill, frack burn coal, embrace nuclear, put people back to work by no longer paying them more to stay at home. Reform the US FED, stabilize the US dollar, and go to war. The only war that I will declare as US president will be the war on the federal administrative State.
Now, all the candidates were asked whether they would support Trump as the nominee if he were convicted of a felony. Most raised their hands, except former governors Chris Christy and Asa Hutchinson Nathan.
While the debate aired on Fox News, Trump was on social media. The former president took part in a re recorded interview at Tucker Carlson on X and explain why he wasn't at the debate.
If you're leading by fifty sixty I at one point, I'm leading by seventy points, and I'm saying, why am I doing it? And I'm going to have eight people, ten people who haven't made the debate. I don't know how many it is, but I'm going to have all these people screaming at me, shouting questions at me, all of which I love answering, I love doing, but it doesn't make sense to do.
And later today Trump is set to surrender to authorities in Georgia on charges that he schemed to overturn the twenty twenty election.
Yeah, the major story of following comes out of Russia. You have getting Progosian, the man who let a mutiny that posts the biggest start to president Vladimir Putin is presumed dead. We get more from Bloomberg's Maria today out.
The fact that there aren't details yet that has prompted a lot of speculation, frankly on Russian telegram channels, some suggesting that perhaps there is the hand of the Kremlin behind this.
Remember it's almost two months to.
The date that he led this insurrection against Moscow that was a serious threat to the authority of Vladimir Putting. And it's not really shocking either that a lot of the critics and opponents of Ladimir Putin do have a history and a track record of finding themselves in situations where they were either seriously injured or dead.
And Bloomberg's Maria Todao says Progosion is presumed dead at the age of sixty two.
It's five seven on Wall Street.
Time now for a look at some of the other stories making news around the world. Form that We're joined by Bloomberg's Amy Morris Semey.
Good morning, Good morning, Karen.
The House Freedom Caucus continues to raise the risk of an October first government shutdown with demands for spending cuts and conditions on money for Ukraine in exchange for their
support of stop gap spending legislation. Now these demands will likely face strong Democratic opposition and threatened to sink a so called continuing resolution that leaders in both parties have said is necessary to avoid a partial shutdown after the fiscal year end September thirtieth, and House Republicans may be ready to launch an investigation into the federal response into
the Maui wildfires. Speaker Kevin McCarthy says he's concerned about the response and questioned why there were so many deaths. Now there are more questions about what the mayor knew when those fires were spreading. The state Attorney General's office in Hawaii is investigating, telling CBS their quote advising state
actors to refrain from commenting on appending investigation. At the same time, Hawaiian officials are asking the people of Maui who are missing loved ones to come forward and submit some DNA so the remains that have been found can be identified. Julie French is an expert in DNA identification and the senior vice president of Andy Corporation. She says, so far, only one hundred four samples have been submitted.
We need family members to come forward and donate their samples so that we can compare them to these DNA profiles we've already generated from remains.
At least one hundred and fifteen people were killed in the wild buyers. Hundreds of others are still unaccounted for. Wall Street Journal reporter Evan Gershkovich, detained in Russia on espionage charges, will remain in custody at least until November thirtieth. Gershkovich and his employer deny those allegations. In the US government has declared him to be wrongfully detained. Japan has started the release of treated wastewar water rather from the
Fukushima nuclear site into the Pacific Ocean. It's a process that could last about thirty years, and it's triggered an immediate retaliation by China to curb seafood imports. Japan's process has been authorized as safe by the International Atomic Energy Agency, but China and other opponents insist that the release of waste water from a disaster site cannot compare with similar
activities that are commonplace in the global nuclear sector. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries, I'm Amy Morris, and this is Bloomberg.
Karen.
All right, Amy, thank you.
It is five oh nine on Wall Street. Time now for the Bloomberg Sports Update with Dan Schwartzman.
Dan, Good morning, Karen.
Let's start out in Major League Baseball of the Yankees step their nine game losing stream deep seven Thomas Berg stoping.
That's courtesy of the S Network.
Yankees beat the Nationals nine to one as Aaron judged It's three home runs and drives in six runs. Meanwhile, the Mets loser rubber game of their three game set in Atlanta seven to nothing. Red Sox knock off the Ashras in Houston seven to five and ten in Orioles get past a Blue Jay seven to nothing, Giants knocking
off the Phillies in ten innings eight to six. A's getting shut out at home four nothing by the Royals, while the Manners eight game winning streak is snapped as Seattle loses in Chicago five to four and ten innings to the White Sox LA Angels. Two A star showy Otanny will not pitch the rest of the season after being diagnosed with the torn right elbow ligament.
No decision has been made yet regarding surgery.
The front runner for al MVP had Tommy John surgery just five years ago. Indianapolis Colts giving discruntled running back Jonathan Taylor till Tuesday.
To find a trade partner.
Sources say the Colts are looking to get either a first round draft pick for tailor or a package of pick's worth similar value. Sources confirming that the forty nine ers have decided to go with Sam Darnold as a backup quarterback to Brock Purty, putting in doubt the future of former twenty twenty one number three overall draft pick Trey Lance.
The NFL Network is reporting that the Niners are exploring all options for Lance.
Which include keeping the twenty three year old as the third tringer for either releasing or trading the North Dakota State Products Batcher.
Bloomberg's Shorts Update, I'm Dan Schwartzman.
Karen, all right, Dan, thank you all. Coming up on Bloomberg Daybreak, We're going to take a closer look at Nvidia earnings with Dan Ives, the managing director and senior analyst at Wedbush Securities, and we also have the very latest on the GOP debate in Milwaukee. We'll be speaking with Terry Haines, the founder of Pangaea Policy.
From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias exam the Bloomberg Business app in Bloomberg dot Com.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Investors have been waiting all week to hear earnings from Nvidia, and the chip maker behind the most advanced artificial intelligence semiconductors more than delivered, with revenue that doubled to thirteen and a half billion dollars in the latest quarter, an outlook that is twenty eight percent above Wall Street estimates. This is a third straight blowout core for the company that has really been behind much of the fuel of
this year's rally in tech stock. So can and Vidia continue to deliver on these megabullish expectations. Let's bring in a megabull on the tech sector for some analysis of Nvidia's results. Dan Ives is with us now managing director and senior analyst at Wedbush Security. So, Dan, a third straight blowout outlook, How do you rate this upgrade for Nvidia?
I mean, this is the godfather of AI and they delivered in home run fashion. I think this was a quarter and gaden for the ages. This is almost historical and there was What it means for the rest of the tech sector with the world watching, this is unparold demand that we have not seen since the Internet in nineteen ninety five. In my opinion, it speaks to what I believe is now the star of a new tech bowl market.
Now.
We did hear from the CEO, Jensen Wang on the call saying that they can keep production up with that supply. Do you see any potential headwinds for Nvidia being able to maintain the kind of production that it says that it can deliver.
Look I see for Jensen and in video right now they are on the yellow brick roads and success. They're the only game in town at a transformational trend and we haven't seen in thirty years. So when you look at what everyone's focused on, does demand continue to be there? Our use case is growing. You heard from Nvidio and that just speaks to now what we're going to see from Microsoft, Google, Mango, dB, the rest of software and chips that's now coming.
Down the road.
In twenty twenty four, that's of the sheets focused on despite noise that we'll hear out of Jackson Hole from a FED talking tough.
Yeah, I do want to get to the rate picture what that could mean for Nvidia's valuation. I mean, we've seen this stock go up more than two hundred percent this year. How do you see the valuation? Can it continue to trade at these kind of record levels, particularly when we are expecting to see higher for longer rates from the Federal Reserve.
A great question, in my view is transformational growth stories the last twenty years, the Netflix, the Microsoft's, the Apples, the Amazon, you can't just put them in a box pe where they trade that next year in video now when you look out three five years, I believe it's just started in terms of what this trillion dollar growth opportunity incrementally could be, which is why we're bullish in terms of the story. And I think what this means
for the rest of the sector. In what I've used in nineteen ninety five moments star the Internet.
He also mentioned Jensen Wang did the potential of China, the crackdown on artificial intelligence access for China and what that could mean for Nvidia is business. Could that erode some of the outlook that we're hearing from in video.
Look, I think the bark was worse than the bite. I think even when we saw the Biden restrictions a lot less onerous than anyone was, you know, fearing it. And that's important because at the end of the day, right now, this is not the time for the coal tech war to continue in terms of when it comes to AI ratting up. And I think what we're seeing here is that this is not really going to spoil the party. And I think that's the important thing in terms of broader not just in video, but the rest
of the tech sector. And that's the one thing that's so important here. After a tech sell off, it was all focused on video. This was Goiden's heard around the world. And the bulls right now, I mean there are smiles on their faces and the bears are going back into hibernation mode into their caves.
Well, where do you see breadth coming in in the AI space? Obviously in video has been so dominant this year. Where are the other players for you?
Well, I think that's the focus. The second, third, fourth derivative. You look directly, Microsoft, Amazon, Google, the cloud players, Oracle, I think IBM benefits as well. And then you look at the rest of the software Mango, dB, Snowflake, Hou and Tier D three AI, I think Salesforce, dot Com. I mean, this is going to be a three to five year tidal wave of growth that we have not seen really in thirty years. And as software and ships. Then you look at consumer looking names like Meta, look
at you know how they're going to benefit. So I think this is really just unpressdent, a jaw dropper stunner in terms of guidance.
In terms of the growth, Dan, we got about a minute left here. Nvidia also announced a twenty five billion dollars stock buyback. Why do a buyback when there is potential for more growth than AI?
Yeah, I think that's something from the board, and I think should tease capo allocation. And that's a smart move because this company right now is going to start making more cash in some countries they need to make sure they're doing. They could do some M and A down the road, but they find themselves now in just a massive position of strength, and I think they've really now started to become the only game in town. They built the castle, everyone's coming. They need to use that cash accordingly.
Always great to get your thoughts. As always, Dan, thanks so much for being with us. That's Dan Ives, Managing Director, Senior analyst at Webbush Securities on the blowout earnings that we heard from Nvidia after the close of trading yesterday. We want to turn now from big tech to big politics. We did have the first debate of the twenty twenty four presidential campaign last night, hosted by Fox News in Milwaukee.
It was a battle for second place. Of course, the runaway front runner in this race, Donald Trump, sat it out. So did this first debate change the trade as we get closer to the first primaries and Caucasus in the twenty twenty four campaign. Let's bring in Terry Haynes for some analysis of this first debate. Terry is the founder
of Pangaeopolicy. Terry, I think with a lot of expectation going in was there was going to be a focus on Florida Governor Ron DeSantis to try to cement the campaign reset after the sort of faltering start that he's had here. Did he do himself any favors last night?
You know, I had I have DeSantis as kind of one of my meth candidates frankly as a scientific term. As everyone knows, I can tell, I think, yeah, I think the Santis didn't hurt himself, but he got stronger as the night went on. You know, there's a lot of candidates on the stage made it hard for him to break out. But I think I think he did get better ultimately. You know, he he probably arrested the bleeding. There's no there's no reason for somebody who supports the
Santas now to leave him. There's not a lot of a call for you know, rushing to destatus either. But I thought he did all right.
Did anyone have a breakout moment for you?
I had the best to me, I thought, though. The winner in the debate really was Nicky Haley, if she differentiated herself on a lot of different issues. Interestingly, and you know, kind of a breakout rhetorical move, she called out Republicans, including some of them on the stage, for contributing and enabling runaway US debt and fiscal spending. And that's a bit of a novel gamb at criticizing your
own side as contributing to the problem. But you know, it's it has the added advantage of being true as Henry Kissinger once said, and uh and is a real good way to for Haley to set herself apart from the pack. She was in every debate and landed a lot of punches.
I thought a lot of the spin following the debate was the attention that seemed to be focused on vivig Ramaswami, the newcomer of course in this race, and he seemed to hold his own in terms of keeping really tight sound bites and pretty forceful answers to a lot of the questions. What did you think of Ramaswami's performance?
Uh, you know, I thought, I think he came perilously close to jumping the shark Nathan the It was fascinating to watch because the it seemed like all the all the other professional politicians came in with with one thought that this amateur is doing better than we think he should be, So, you know, let's take him down a notch. I think they did to some extent. Uh And I
think he helped a little bit. He was a little overamped, and he got tagged by the field as I think one candidate called him the childish amateur on the stage, and I think that's that's likely to stick to some extent. Uh, you know, he makes some points, but he's also an outlier on a lot of different issues, including Ukraine AID, where everybody else was very supportive of Ukraine AID. And
I think that's an important takeaway from this field. But fundamentally, I thought he was a little abrasive in an introductory in an introductory debate where demeanor is very important, I thought he came off too hot.
Now, last minute here, Terry. You've noted in the past that there's a sizable majority of Republican voters who are I guess anti Trump in some respects that Trump, not all of the polls, has a majority of support from Republican voters. Did this debate do enough to coalesce some of that non Trump support around one candidate.
It did not, But I think it earned a lot of candidates a second look. And when you're looking at say Iowa early on, where Trump has you know, around four out of ten likely primary voters, that already means that six out of ten are looking at or for someone else. And this debate without Trump, where the candidates had a chance to debate and elbow each other and shine a little bit, gave I think a lot of them, the opportunity for a second look from voters, and just quickly.
Of course, the other big story is the presumed death of Yevgeny Pregosion in that plane crash in Russia. What impact does that potentially have on Russian President Putin?
Well, you know, they'll take it two ways quickly. One is for markets. I think there's obviously an increase in geopolitical risk with a likely impact on oil price. Isn't a likely impact on grain prices as well? For Putin, you know, everybody thought that he was starting to look weak, so so this patching pregotion makes, you know, maybe make him look stronger. But what you've got in Russia is kind of worse than the stronger the week. What it is is, frankly, you don't know. You don't know exactly
who's in control. You don't know exactly what fashions are battling successfully, you don't know exactly how Putin's going to be around, and that's really a big problem geopolitically.
This is Bloomberg day Break Today, your morning brief on the story's making news from Wall Street to Washington and beyond.
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I'm Karen Moscow.
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