Ukraine Says Russia Fires Missile; Nvidia Disappoints

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Good morning.

I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Karin, we begin with new developments in the war in Ukraine. Russia reportedly fired an intercontinental ballistic missile last night as part of a barrage targeting the central Ukrainian city of de Nepro. That's according to Ukraine's Air Force. Bloomberg opinion columnist Mark Champion says, the use of ICBMs would be a significant development.

They are understanding kinds of missiles that would be used in a nuclear strike. It's bat left terrifying that that sounds in terms of the nuclear issue, just because you can be certain that the Russians will have told the Americans in advance that this would carry a conventional beload.

Bloomberg Opinion columnist Mark Champion says Ukraine's air force says it shot down six of seven cruise missiles fired during the attack, and Russia says it intercepted two UK made storm Shadow missiles, along with six high Mars rockets and sixty seven drones fired by Ukraine.

And Nathan, President Biden is trying to lock in even more support for Ukraine before he leaves office. The White House says it plans to cancel four point sixty five billion dollars in Ukraine's debt. That's about half of a nine billion dollar loan that Congress approved as part of

Turning into markets now, Karen, we're watching shares of Nvidia this morning. They're down more than three percent. The world's most valuable company delivered a revenue forecast that failed to meet Wall Street's highest expectations. In Vidia's predicting fourth quarter sales of about thirty seven and a half billion dollars. That's slightly above the average analyst estimate, but it is

Blackwell production is in full steam. In fact, we will deliver this quarter more blackwells than we have previously estimated, and so the supply chain team is doing an incredible job working with our supply partners to increase Blackwell.

And Video CEO Jensen Wang says sales are poised to double for a second year in a row. Before this morning's losses, and Video shares were up almost two hundred percent this year, and if.

Then the powerful rally in bitcoin continues this morning, as the digital currency closes in on one hundred one thousand dollars, it's being fueled over optimism that president like Donald Trump support for crypto and also over potentially friendly regulations. The crypto market as a whole has gained approximately nine hundred billion dollars since Trump's election win, and checking bitcoin right now, it is up three and a quarter percent. It's at ninety seven five hundred dollars.

Turning to the Trump transition now, Karen Republicans on the House US Ethics Committee have voted against releasing a report on their long running investigation into President elect Trump's nominee for Attorney General, former Congressman Matt Gates. But the tug of war over this report is not over yet, as we hear from Bloomberg Sammy Morris in Washington.

Democrats Susan Wild of Pennsylvania says the ethics panel, which is evenly split between the two parties, voted at a two hour long closed door meeting and no Republicans joined Democrats who want to release the report. The panel is expected to meet and vote again in December. Meanwhile, Gates met four hours behind closed doors with Republican senators who have questions about the sexual misconduct and other allegations against him.

Right, Amy, thank you. While President elect Trump is filling out more of his diplomatic ranks. He's named former Congressman Pete Hoakstra US ambassador to Canada. Holkstro was Ambassador to the Netherlands in the first Trump administration and chairs the Republican Party in the swing state of Michigan. And Trump has tapped Matt Whittaker to be his ambassador to NATO. Whitaker was Trump's acting Attorney General after he forced out his first AG, Jeff Sessions.

In staying with the transition, Karen Elon Musk and Vivik Ramaswami say they want to eliminate work from home policies for the federal government. We get more on that from Bloomberg's Doug Prisner.

Musk and Ramaswami are leading the new Department of Government Efficiency. In a Wall Street Journal op ed, the pair wrote requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that they welcome. And they said if federal employees don't want to show up, American taxpayers shouldn't pay them for the COVID era privilege of staying home. But eliminating those policies could spark clashes between the new administration and government

All right, dog, thank you well. In legal news this morning, US prosecutors have charged Gwantam and Donnie with helping drive a two hundred and fifty million dollar bribery scheme. It's a stunning blow to India's most powerful businessman and close ally a prime minister in Aarndramodi. Federal prosecutors say the tycoon and other defendants promised to pay more than two hundred fifty million dollars in bribes to Indian government officials

The founder of our Kegos Capital Management, Bill Wong, has been sentenced to eighteen years in prison. Back in July, a jury found Wang guilty of misleading banks into providing his family office with billions of dollars in trading capacity Bloomberg. Shaquille Amari says the former financier express regrets. During the proceedings in the New York courtroom, Wang.

Was remorseful, telling the judge he felt deep paid for what happened to our Kagos Now prosecutors they wanted a twenty one year sentence because they said that Wang was a repeat offender in all of this because back in twenty twelve he pled guilty to inside a trading with another company, Tiger Capital Now. On the other hand, his defense, they wanted no jail time, but the judge says that was utterly ridiculous.

Bloomberg Shaquille Amari there outside the courtroom. Our Kagos fell into a spiral after its March twenty twenty one selloff in ViacomCBS shares prompted billions of dollars in margin calls, and that led to the collapse of Wang's thirty six billion dollar family office and the fallout included the demise of Credit Sueese, as well as significant losses for Morgan Stanley, Ubs, Numural Holdings, and other banks.

Well Nathan. The Justice Department and a group of states are proposing major changes to Alphabet's Google. They include a for sale of the company's Chrome web browser in the wake of a Landmark ruling that the tank and I legally monopolized online search and a court filing yesterday, anti trust enforcers said they would also prefer a divestiture of the Android smartphone operating system.

Google opposed is the proposal.

Arguing it with harm Americans privacy and security stymy its Ai investments, and hurt other companies that rely on its revenue. And it's time now for look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's John Tucker, John, Good Morning, Good Morning, Karen.

The FBI arrested a man who's been charged with planning an attack on the New York Stock Exchange. More from Bloomberg's Jeff Bellinger.

The FBI sas thirty year old Harun Abdul Malik Yanier of Coral Springs, Florida, wanted to reboot the US government by planting a bomb at the New York Stock Exchange and detonating it with the remote controlled device. Authorities found bomb making sketches, along with timers and other electronics that could be used for building explosive devices. They say in air all also searched online for things related to bomb making. The suspect allegedly told under cover FBI agents that he

A warning if you have an ipheld, iPad or Mac, there is a security flaw that may have been actively exploited. Apple's just released what it calls a zero day patch. The flaw was uncovered by Google's threat analysis group, and the top US consumer watchdog will now supervise Apple and other major technology firms that offer digital wallets and payment apps the Consumer Financial Protection Bureau when I'll treat those companies more like banks as long as they handled more

Everything's coming up Milhouse.

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This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. On a morning where Nvidia's earnings remain a major focus for investors. The AI Chip Powerhouse gave a revenue forecast that fell short of Wall Street's biggest expectations, but CEO Jensen Wong says the next generation in Vidia Blackwell chips are on track to ship with very strong demand.

It is the case that demand exceeds our supply, and that's expected as we're in the beginnings of this generativity I revolution as we all know.

In Nvidia's CEO Jensen Wong spoke on the company conference call last night for more on the results and the outlook for AI going forward. We are joined by Dan Ives, global head of Technology Research at web Bush Securities. Dan, great to have you back with us this morning. So in Nvidia didn't meet Wall Street's biggest expectations, did it meet yours?

Good morning?

Hello, Look, this is just like last quarter. I mean, the bears try to poke at it, and look what happened to the stock sentence up seventeen percent. I believe this was just ultimately a press release. They should frame it and put it in the love. It's the start of the trick. What I believe is to track the four trillion and beyond super bullish. I believe there's a stock that's probably up the end of the day.

Nough, we did hear just a moment ago, Jensen Wong saying that supply is having trouble keeping up with demand. Is that going to continue to be an issue going forward. What can it do to get that back into balance.

Look to put some numbers, I mean Street thought this would be two to three billion a quarter in terms of black Bell. It's probably gonna because of eight to ten billion demand the supply of fifteen to one. So it's going to take time. From a supply can train perspective, that's a high class problem and into a street continues to under the demand. And that's why Look is this all plays out?

I mean you look what videos and.

We're talking unprecedented in terms of AI industrial.

Revolution, and they're reading they are the only.

Game in town, led by godfather of AI, Jensen and Video.

Now, the demand in terms of the data revenue or the data center piece still seems like it's concentrated in those big cloud providers, you know, Amazon, Apple, does in Nvidia need to do more to broaden out the demand that it's seeing for data centers particularly.

Yeah, right now, at the front of the line, front of the velvet roops, it's big tech, right they have a front seat, But behind them it's sovereigns and its other called global two thousands that are now going to be waiting in line to go down the AI route. Only four percent of companies have even gone down it. You look at Big Tech, that's three hundred billion a loan of AI catbacks next year. So we're talking trillions of AI capbacks. And guess what, there's only one game

Did Jensen Wong do enough to allay some of the concerns that we heard going into this report about overheating in the black Weell chips and not contributing to the production delays that we've seen.

Oh yeah, I mean he called it out right away, and I just need we've talked about the four When you're at the top of the mountain, the bears are going to come out of hibernation mood, you know that have missed this historic run. They'll try to pull holes. There's no poking holes here. I mean, we're talking about

At the same time, up to now, I mean, we've seen such dramatic growth for Invidia. I mean it's it's really been like a rocket ship for this company. Can it continue to maintain that kind of momentum or do investors need to start preparing for a little bit more of a leveling off in terms of the growth trajectory.

Look, that will be a question, But this is Mahomes in high school Moan.

Soto when he's fourteen, right, I mean in terms of where in Vidio is and in terms of as is all plays out in terms of AI revolution, it's in tatiable demand and there's no other competitor out there. And that's why what you really it's not even just a mountain video what it shows about big tech. This is real.

This is Bloomberg Daybreak your morning podcast on the stories making news from Wall Street to Washington and beyond.

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