February 27, 2025 • 17 mins
On today's podcast:
1) Nvidia Corp., the chipmaker at the center of an AI spending boom, delivered good-but-not-great quarterly numbers on Wednesday, drawing a muted response from investors accustomed to blowout results.
2) Chief Justice John Roberts temporarily let President Donald Trump keep freezing foreign-aid payments while the US Supreme Court weighs whether to lift an order that would require disbursement of as much as $2 billion.
3) Two-time Academy Award-winner Gene Hackman and his wife were found dead at their New Mexico home on Wednesday, the BBC reported, citing local police.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:10):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
Karen, we begin with the latest reaction to the earnings
report investors around the world we're bracing for. It has
been volatile, but shares of nvidiam have turned higher. They
are now three quarters of one percent in early trading.
The chip maker at the center of the AI spending boom,
delivered good, but not great quarterly numbers. It's drawing a
muted response from investors who have been accustomed to blow
(00:36):
out results. We get more from Bloomberg's Tom mackenzie.
Speaker 4 (00:39):
It's about expectations, and it's all about whether or not
this is a company that, by the way, in the
last five years has only missed quarterly result was once
and this time was not a miss again. It was
a modest beat. The question mark is to what extent
the huge revenue growth that we've seen from Nvidia in
the last two years is starting potentially to peak. How
much further can they go in supplying these chips and
continuing to generate the frankly eyewatering growth, almost unprecedented growth
(01:04):
that we've seen from one individual company in the months
and quarters ahead, and that question has not yet been resolved,
and it hasn't been put to bed by the results
that we've.
Speaker 3 (01:12):
Had out Bloomberg. Sam mackenzie says in video is putting
its quarterly sales at about forty three billion dollars. That
is slightly above the average analysts essiment Well Nathan.
Speaker 2 (01:21):
Many analysts pointed to a disappointment within Vidia's gross profit margins.
Here's Angelo Zino, vice president of equity research at CFRA.
Speaker 5 (01:30):
The gross margin number was probably the one black eye
as far as where we kind of were looking at
the guidance side of things. It was definitely a disappointment.
I think when you kind of especially look at the
trajectory of gross margins over the last couple of quarters,
it kind of hit a peak run rate of about
seventy eight percent in the first half of calendar twenty
twenty four. So the margins continue to compress here going
(01:54):
into the April quarter. The good news is we do
expect that to essentially be the trough of the cycle
here in the April.
Speaker 4 (02:01):
Quarter, cfirays.
Speaker 2 (02:02):
Angelo Zeno also says Chinese start up Deep Sea Cas
spark fears that chatbots can be developed more cheaply, potentially
reducing the need for Nvidia's powerful chips for AI.
Speaker 3 (02:13):
In the meantime, Karen, we have some sad news to
report this morning, the death of a Hollywood legend. Oscar
winning actor Gene Hackman and his wife were found dead
in their New Mexico home. Their dog died as well.
Authorities did not release any details of the circumstances of
their deaths, but they do say foul play is not suspected.
Gene Hackman appeared in more than eighty films, including The
(02:33):
French Connection, Unforgiven, and Hoosiers. He was ninety five years old.
Speaker 2 (02:38):
Well, Nathan, let's turn out to some breaking developments on
the Trump administration's push to freeze foreign aid payments. We
get the latest with Bloomberg's John Tucker. John Good Morning, ed.
Speaker 6 (02:48):
Morning, Karen. Chief Justice John Roberts has handed President Trump
of victory, at least for now. He temporarily blocked up
to two billion dollars in foreign aid. Roberts paused a
lower court's order that had lifted the administration's freeze on
foreign assistance. Humanitarian groups say this freeze is having a
devastating impact, offending hundreds of projects, forcing USA partner groups
(03:11):
to lay off or furlough thousands of US workers, and
putting people who depend on the assistance at risk of
disease and even death. The group say the money includes
payments for work already completed. The humanitarian groups challenging the
freeze now have until Friday afternoon to respond. I'm John Tucker,
Bloomberg Radio.
Speaker 3 (03:29):
Okay, John, thank you. President Trump is warning federal workers
who haven't responded to Elon Musk's email asking what they
did last week, they could be out of a job.
Speaker 7 (03:38):
And I think it's a good idea because you know
those people, as I said before, they run the bubble.
You get a lot of people that have not responded.
So we're trying to figure out do they exist, who
are they? That is possible that a lot of those
people will be actually fired.
Speaker 3 (03:51):
In cabinet meeting remarks heard on Bloomberg Radio, President Trump
spoke after the White House told federal agencies to submit
large scale workforce reduction plans by March thirteenth. The President
says the Environmental Protection Agencies looking into cutting up to
sixty five percent of its staff. One agency. The National
Oceanic and Atmospheric Administration is putting together a list of
(04:12):
workers who have yet to respond to Musk's email.
Speaker 2 (04:15):
Now, Nathan, the latest on Trump's trade war. The President
says tariffs on products from the European Union will be
twenty five percent. In his first cabinet meeting, he used
strong language to attack the EU.
Speaker 7 (04:27):
It was formed in order to screw the United States.
I mean, look, let's be honest. The European Union was
formed in order to screw the United States. That's the
purpose of it, and they've done a good job of it.
But now I'm President.
Speaker 2 (04:39):
Well, Trump's proposal for a twenty five percent tariff on
the EU is new. Officials later clarify that all options
are being considered on whether those would affect all exports
from the block or only certain products or sectors.
Speaker 3 (04:52):
We have breaking trade news crossing the Bloomberg terminal Karen.
Officials in India are exploring ways to lower tariffs on
a wide range of imports, including cars and chemicals, in
a bid to evade President Trump's threatened reciprocal levies, sources
tell Bloomberg News. Officials in New Delhi are discussing reducing
duties on automobiles, agricultural products, chemicals and critical pharmaceuticals.
Speaker 2 (05:14):
Well Nathan. Trump's announcement on EU tariff's come as UK
Prime Minister Keir Starmer heads to the White House to
meet with the President. We got to London with Bloomberg's
James Wilcock.
Speaker 8 (05:25):
Good morning James, Good morning Karen and Nathan. Since the
Second World War, the UK has framed itself as having
a so called special relationship with America. So with Europe's
leaders scrambling to change Ukraine's fate, Prime Minister Kiss Starmer's
visit to the White House today is a test how
strong is that alliance and will Starmer be able to
sway a US president who has been willing to upend
(05:45):
transatlantic relations. After watching France's leader Emmanuel Macron's trip this week,
Starmer's aids told Bloomberg they would be delighted if they
can get through the week without any public disagreement with
Donald Trump in London. James Wilcock, Bloomberg Radio, All right.
Speaker 2 (05:59):
James, thank you on Bloomberg. Will bring you live coverage
to the news conference with President Trump and Keir Starmers
schedule to begin at two pm Wall Street Time, here
at on Bloomberg Radio and on the Bloomberg podcast page
on YouTube, Karen.
Speaker 3 (06:11):
Secretary of State Marco Rubio is laying out a strategy
for managing Russia's relationship with China. He says he wants
to dilute ties between the nuclear powers, but not have
them at each other's throats.
Speaker 9 (06:22):
The big story of the twenty first century is going
to be US Chinese relations and if China and if
Russia becomes a permanent junior partner to China in the
long term. Well, now you talk about two nuclear powers
aligned against the United States.
Speaker 3 (06:34):
Secretary of State Marco Rubio tells the conservative outlet Breitbart News,
Russia wouldn't be able to improve relations with the US
even if it wanted to, if it became completely dependent
on China.
Speaker 2 (06:44):
Well, Nathan, Russia is using ties with North Korea at
a boost it's war effort in Ukraine. According to South
Korea's Yon Have News, North Korea has sent more than
one thousand more troops to Russia this year. That's on
top of the thousands deployed last year.
Speaker 3 (06:58):
I'm back in Washington, Karen. The Trump administry making a
move that could affect the next flu season. It's canceled
a meeting of the Food and Drug Administration's Vaccine Advisory
Committee that had been tentatively set for March thirteenth. The
committee was planning to discuss how to make next season's
flu shot. It's usually a routine step to ensure that
manufacturers have enough time to produce the proper houses and.
Speaker 2 (07:18):
Nathan Bloomberg News has learned US health officials are reevaluating
a five hundred and ninety million dollar contract for bird
flu shaw So the Biden Administration awarded to Maderna. The
review is part of a government push to examine spending
on Messenger RNA based vaccines and shares a Maderna, they're
down more than four percent. Time now for a look
(07:41):
at some of the other stories making news in New
York and around the world. And for that we're joined
by Bloomberg's Michael Barr Michael, Good Morning.
Speaker 10 (07:47):
Good Morning. Karen Kama says it is ready to negotiate
the next phase of the ceasefire in the Gaza Strip
after handing over the remains of four hostages in exchange
for the release of hundreds of Palestinian prisoners held by Israel.
The truce is set to end this weekend. Former US
Deputy Assistant Secretary of Defense for the Middle East Mick mulroy, since.
Speaker 11 (08:08):
They haven't agreed to enter into the second phase, that
means the cessation on hostilities could be over and fighting
could resume. And we've seen steps taken by the idea
of both mobilizing units in calling up reservist that indicate
that might actually happen.
Speaker 10 (08:23):
A school age child in Texas has died of measles,
and outbreak in the state has grown more than one
hundred and twenty cases. Almost all the cases are in
unvaccinated patients. Epidemiologist doctor John Brownstein.
Speaker 6 (08:35):
It's not just a rash. It can cause pneumonia, brain swelling,
even death.
Speaker 5 (08:39):
We're seeing that now in Texas.
Speaker 3 (08:41):
It's a safe, effective vaccine and that's the way you
keep your kids safe and really the communities around you safe.
Speaker 12 (08:46):
It's really that simple.
Speaker 10 (08:48):
Allies a former New York Governor Andrew Cuomo have formed
a super pack. It comes just days before Cuomo is
expected to enter the New York mayoral race and again
recapping Academy Award Winnergyan Ackman and his wife were found
dead at their new Mexico home, along with their dog.
Police do not believe foul play was the factor. Hackman
was ninety five Global News twenty four hours a day
(09:09):
and whenever you want it with Bloomberg News Now Michael Barrn,
This is Bloomberg.
Speaker 2 (09:12):
Karen, all right, Michael Barry, thank you time now fild Bloomberg.
Sports Update brought to you by Tria State OUTI. Here's
John Stanshawer, John, good morning, Good morning.
Speaker 13 (09:25):
Karen Nixon. Sixers at the Garden. The two teams at
a memorable playoffs series last year, but this season's been
a nightmare in Philly, especially lately. They came in having
lost eight in a row. We're on their way to
another lop side and lost. When they rallied, Sixers went
from down nineteen to up four, but Jalen Brunton, a
big three, made a bunch of free throws. He was
fifteen of sixteen from the line. Brunson finished with thirty
(09:46):
four points. Nicks pulled it out one ten, one oh
five at Barkleys looked like an upset and Nets led
West lead in Oklahoma City by fifteen and a half
back came the thunder to win one, twenty nine, one
twenty one, the Celtics six game wins streak ended in
Detroit to much improved Pistons, won by twenty Colorado Avalanche
four goals in the third period to beat the Devil's
five to one. In college basketball, the madness is usually
(10:07):
in March. We're not quite there yet, but a mad finish.
As Michigan State and Maryland were tied.
Speaker 3 (10:12):
Go and speak for three years. Coloman looks the clock.
Speaker 8 (10:21):
My goodness.
Speaker 13 (10:26):
They attend network to call the Trey Holloman half court
shot for the Spartan Saint John's got twenty four points
of R. J. Lewis and one at Butler's seventy six
to seventy. The Red Storm had clinched at least a
tie for the Big East regular season title and win
Saturday at the Garden over Seaton Hall, and they went
it outright. The NFL Players Association had their rank and
file to a survey of their employers. The Dolphins got
(10:48):
the highest grades, the Cardinals the worst. When it came
to team ownership, the only owner that got a grade
of an F was the Jets. Woody Johnson, John Stashiawer
Bloomberg Sports Karen Eathan.
Speaker 1 (11:00):
Coast to Coast on Bloomberg Radio nationwide on Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3 (11:10):
Good morning, I'm Nathan Hager. The morning after and Nvidia
earnings Day, the most hotly anticipated earnings report arguably of
the week, if not the month. This morning, it seems
investors are still trying to figure out how to react
to it. The AI chip giant came out with a
sales forecast that beat the average Wall Street estimate, but
not the blowout result that a lot of investors have
(11:32):
gotten used to over the last couple of years with
this company. For more reaction, let's bring in Dan Ives,
Global head of Tech research at Webbush Securities. Dan always
great to talk with you, particularly about AI. Your reaction
to these results from Nvidia.
Speaker 12 (11:47):
Good morning, it's bullsh I mean, if you look at
Blackwell the next gen chip eleven billion, that's basically three
to four billion, then I think most in the street
we're expecting, even the bulls, the deep seek fears you're
not seeing it. It's smoked no fire, and I think
this is one is the street digestics, and this stock's
(12:08):
green today.
Speaker 3 (12:10):
The forecast for forty three billion dollars in sales this quarter,
as I mentioned, just above the average estimate, but there
were some analysts who are calling for something like forty
eight billion or more. Does Nvidia need to continue to
produce the kinds of blowout results that investors had been
(12:30):
getting used.
Speaker 12 (12:31):
To, Yeah, I actually don't think so. I think we
were at that point right in terms of the hypergrowth
going from one trillion to three trillion. But now for
this stock one seventy five, two hundred, you're not going
to need these massive blowouts. It's actually the trajectory is
so historic because they are the only game in town
(12:52):
when it comes to these next gen chips and there's
only one Red phones godfather b Ai Jensen Nvinion. I
think you start to have gout six seven dollars earnings
next you know, called one two years and there's a
stock that I could have a two in front of
it as we go into next year.
Speaker 3 (13:06):
You say that in video is still the only game
in town. There had been a lot of questions raised
about Deep Seek. It sounds like you're putting Deep Seek
on the back burner. Here, But how much of a
threat could deep Seek be down the line if it
continues to produce an AI model that is potentially a
much lower cost than in VideA.
Speaker 12 (13:28):
Yeah, look, deep Seek's a great model, but so is
Chad GBT and so as well. I'm and there'll be
other models and they'll get cheaper. But for large scale
enterprise deployments, there's only one chip that you're using.
Speaker 3 (13:42):
It's in video.
Speaker 12 (13:44):
And I could also argue as the models get cheaper,
it's more GP capacity.
Speaker 3 (13:49):
It's actually bullish for in video.
Speaker 12 (13:52):
So I don't view it that way. But remember, look
right now, everyone's trying to find a crack in the
arm or AI bubb well, remember a lot of the
bears they've missed, you know, this massive run in tech
for the last three years. They're not finding it. I
actually think, you know, this is the fuel for really
the book is not just in Nvidia, but really the
broader AI revolution across the rest of tech, max having others.
Speaker 3 (14:15):
So do you continue to see the hyperscalers, these big
companies continuing to spend on AI the way that they
have tens of billions of dollars every quarter. We've seen
some companies talking about at least trying to scale back
some of that cap bax.
Speaker 12 (14:31):
Look, it's you have three hundred and twenty five billion
of cap backs between you called the top six tech players.
That's one hundred billion increased year of a year. Well
that moderate going into next year, of course, but it's
the start that you're essentially building out a new city,
and it starts the vidio, but then it goes to
the hyper skills, goes to the rest of software, goes
(14:52):
to cybersecurity, consumer data centers, and that's really where this
is playing out. Look, are there certain things like Trump
in terms of export controls in some other words, of course,
but the reality is is that we're talking about once
in a forty to fifty year build out.
Speaker 3 (15:09):
We've got Nvidia in the pre market trading around one
hundred and thirty two dollars to share. You adjusting your
price target for Nvidia.
Speaker 12 (15:17):
One seventy five base two hundred bull and I ultimately
think this is one where you know, there's a lot
of worries going into this. They produce flying calls in
terms of coming out with this. Now you digest what
this means going forward, China is going to be a player.
But ultimately, you know, in Vidia continues to be that
(15:40):
only game in town. When it comes to next ten chips.
Speaker 3 (15:43):
Just thirty seconds left, Dan, how much does Nvidia have
to get past Wall Street estimates to get to that
two hundred dollars ball case?
Speaker 12 (15:52):
Look, I think if they continue on this trajectory, especially
with Blackwell, I mean, I think you could be there
in the next you know called two three quarters. But look,
haters hate. That's what happens in video. They've missed every
transmission tech dot plast twenty years.
Speaker 3 (16:05):
The missing video were bors.
Speaker 2 (16:06):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 3 (16:13):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 2 (16:19):
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
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Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Speaker 3 (16:34):
Plus listen coast to coast on the Bloomberg Business app
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Speaker 2 (16:40):
Don't forget to subscribe to Bloomberg News Now. It's the
latest news, whenever you want it in five minutes or less.
Search Bloomberg News Now and your favorite podcast platform to
stay informed all day long. I'm Karen Moscow.
Speaker 3 (16:53):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day, right
here on Bloomberg Daybreak
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:10):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
Karen, we begin with the latest reaction to the earnings
report investors around the world we're bracing for. It has
been volatile, but shares of nvidiam have turned higher. They
are now three quarters of one percent in early trading.
The chip maker at the center of the AI spending boom,
delivered good, but not great quarterly numbers. It's drawing a
muted response from investors who have been accustomed to blow
(00:36):
out results. We get more from Bloomberg's Tom mackenzie.
Speaker 4 (00:39):
It's about expectations, and it's all about whether or not
this is a company that, by the way, in the
last five years has only missed quarterly result was once
and this time was not a miss again. It was
a modest beat. The question mark is to what extent
the huge revenue growth that we've seen from Nvidia in
the last two years is starting potentially to peak. How
much further can they go in supplying these chips and
continuing to generate the frankly eyewatering growth, almost unprecedented growth
(01:04):
that we've seen from one individual company in the months
and quarters ahead, and that question has not yet been resolved,
and it hasn't been put to bed by the results
that we've.
Speaker 3 (01:12):
Had out Bloomberg. Sam mackenzie says in video is putting
its quarterly sales at about forty three billion dollars. That
is slightly above the average analysts essiment Well Nathan.
Speaker 2 (01:21):
Many analysts pointed to a disappointment within Vidia's gross profit margins.
Here's Angelo Zino, vice president of equity research at CFRA.
Speaker 5 (01:30):
The gross margin number was probably the one black eye
as far as where we kind of were looking at
the guidance side of things. It was definitely a disappointment.
I think when you kind of especially look at the
trajectory of gross margins over the last couple of quarters,
it kind of hit a peak run rate of about
seventy eight percent in the first half of calendar twenty
twenty four. So the margins continue to compress here going
(01:54):
into the April quarter. The good news is we do
expect that to essentially be the trough of the cycle
here in the April.
Speaker 4 (02:01):
Quarter, cfirays.
Speaker 2 (02:02):
Angelo Zeno also says Chinese start up Deep Sea Cas
spark fears that chatbots can be developed more cheaply, potentially
reducing the need for Nvidia's powerful chips for AI.
Speaker 3 (02:13):
In the meantime, Karen, we have some sad news to
report this morning, the death of a Hollywood legend. Oscar
winning actor Gene Hackman and his wife were found dead
in their New Mexico home. Their dog died as well.
Authorities did not release any details of the circumstances of
their deaths, but they do say foul play is not suspected.
Gene Hackman appeared in more than eighty films, including The
(02:33):
French Connection, Unforgiven, and Hoosiers. He was ninety five years old.
Speaker 2 (02:38):
Well, Nathan, let's turn out to some breaking developments on
the Trump administration's push to freeze foreign aid payments. We
get the latest with Bloomberg's John Tucker. John Good Morning, ed.
Speaker 6 (02:48):
Morning, Karen. Chief Justice John Roberts has handed President Trump
of victory, at least for now. He temporarily blocked up
to two billion dollars in foreign aid. Roberts paused a
lower court's order that had lifted the administration's freeze on
foreign assistance. Humanitarian groups say this freeze is having a
devastating impact, offending hundreds of projects, forcing USA partner groups
(03:11):
to lay off or furlough thousands of US workers, and
putting people who depend on the assistance at risk of
disease and even death. The group say the money includes
payments for work already completed. The humanitarian groups challenging the
freeze now have until Friday afternoon to respond. I'm John Tucker,
Bloomberg Radio.
Speaker 3 (03:29):
Okay, John, thank you. President Trump is warning federal workers
who haven't responded to Elon Musk's email asking what they
did last week, they could be out of a job.
Speaker 7 (03:38):
And I think it's a good idea because you know
those people, as I said before, they run the bubble.
You get a lot of people that have not responded.
So we're trying to figure out do they exist, who
are they? That is possible that a lot of those
people will be actually fired.
Speaker 3 (03:51):
In cabinet meeting remarks heard on Bloomberg Radio, President Trump
spoke after the White House told federal agencies to submit
large scale workforce reduction plans by March thirteenth. The President
says the Environmental Protection Agencies looking into cutting up to
sixty five percent of its staff. One agency. The National
Oceanic and Atmospheric Administration is putting together a list of
(04:12):
workers who have yet to respond to Musk's email.
Speaker 2 (04:15):
Now, Nathan, the latest on Trump's trade war. The President
says tariffs on products from the European Union will be
twenty five percent. In his first cabinet meeting, he used
strong language to attack the EU.
Speaker 7 (04:27):
It was formed in order to screw the United States.
I mean, look, let's be honest. The European Union was
formed in order to screw the United States. That's the
purpose of it, and they've done a good job of it.
But now I'm President.
Speaker 2 (04:39):
Well, Trump's proposal for a twenty five percent tariff on
the EU is new. Officials later clarify that all options
are being considered on whether those would affect all exports
from the block or only certain products or sectors.
Speaker 3 (04:52):
We have breaking trade news crossing the Bloomberg terminal Karen.
Officials in India are exploring ways to lower tariffs on
a wide range of imports, including cars and chemicals, in
a bid to evade President Trump's threatened reciprocal levies, sources
tell Bloomberg News. Officials in New Delhi are discussing reducing
duties on automobiles, agricultural products, chemicals and critical pharmaceuticals.
Speaker 2 (05:14):
Well Nathan. Trump's announcement on EU tariff's come as UK
Prime Minister Keir Starmer heads to the White House to
meet with the President. We got to London with Bloomberg's
James Wilcock.
Speaker 8 (05:25):
Good morning James, Good morning Karen and Nathan. Since the
Second World War, the UK has framed itself as having
a so called special relationship with America. So with Europe's
leaders scrambling to change Ukraine's fate, Prime Minister Kiss Starmer's
visit to the White House today is a test how
strong is that alliance and will Starmer be able to
sway a US president who has been willing to upend
(05:45):
transatlantic relations. After watching France's leader Emmanuel Macron's trip this week,
Starmer's aids told Bloomberg they would be delighted if they
can get through the week without any public disagreement with
Donald Trump in London. James Wilcock, Bloomberg Radio, All right.
Speaker 2 (05:59):
James, thank you on Bloomberg. Will bring you live coverage
to the news conference with President Trump and Keir Starmers
schedule to begin at two pm Wall Street Time, here
at on Bloomberg Radio and on the Bloomberg podcast page
on YouTube, Karen.
Speaker 3 (06:11):
Secretary of State Marco Rubio is laying out a strategy
for managing Russia's relationship with China. He says he wants
to dilute ties between the nuclear powers, but not have
them at each other's throats.
Speaker 9 (06:22):
The big story of the twenty first century is going
to be US Chinese relations and if China and if
Russia becomes a permanent junior partner to China in the
long term. Well, now you talk about two nuclear powers
aligned against the United States.
Speaker 3 (06:34):
Secretary of State Marco Rubio tells the conservative outlet Breitbart News,
Russia wouldn't be able to improve relations with the US
even if it wanted to, if it became completely dependent
on China.
Speaker 2 (06:44):
Well, Nathan, Russia is using ties with North Korea at
a boost it's war effort in Ukraine. According to South
Korea's Yon Have News, North Korea has sent more than
one thousand more troops to Russia this year. That's on
top of the thousands deployed last year.
Speaker 3 (06:58):
I'm back in Washington, Karen. The Trump administry making a
move that could affect the next flu season. It's canceled
a meeting of the Food and Drug Administration's Vaccine Advisory
Committee that had been tentatively set for March thirteenth. The
committee was planning to discuss how to make next season's
flu shot. It's usually a routine step to ensure that
manufacturers have enough time to produce the proper houses and.
Speaker 2 (07:18):
Nathan Bloomberg News has learned US health officials are reevaluating
a five hundred and ninety million dollar contract for bird
flu shaw So the Biden Administration awarded to Maderna. The
review is part of a government push to examine spending
on Messenger RNA based vaccines and shares a Maderna, they're
down more than four percent. Time now for a look
(07:41):
at some of the other stories making news in New
York and around the world. And for that we're joined
by Bloomberg's Michael Barr Michael, Good Morning.
Speaker 10 (07:47):
Good Morning. Karen Kama says it is ready to negotiate
the next phase of the ceasefire in the Gaza Strip
after handing over the remains of four hostages in exchange
for the release of hundreds of Palestinian prisoners held by Israel.
The truce is set to end this weekend. Former US
Deputy Assistant Secretary of Defense for the Middle East Mick mulroy, since.
Speaker 11 (08:08):
They haven't agreed to enter into the second phase, that
means the cessation on hostilities could be over and fighting
could resume. And we've seen steps taken by the idea
of both mobilizing units in calling up reservist that indicate
that might actually happen.
Speaker 10 (08:23):
A school age child in Texas has died of measles,
and outbreak in the state has grown more than one
hundred and twenty cases. Almost all the cases are in
unvaccinated patients. Epidemiologist doctor John Brownstein.
Speaker 6 (08:35):
It's not just a rash. It can cause pneumonia, brain swelling,
even death.
Speaker 5 (08:39):
We're seeing that now in Texas.
Speaker 3 (08:41):
It's a safe, effective vaccine and that's the way you
keep your kids safe and really the communities around you safe.
Speaker 12 (08:46):
It's really that simple.
Speaker 10 (08:48):
Allies a former New York Governor Andrew Cuomo have formed
a super pack. It comes just days before Cuomo is
expected to enter the New York mayoral race and again
recapping Academy Award Winnergyan Ackman and his wife were found
dead at their new Mexico home, along with their dog.
Police do not believe foul play was the factor. Hackman
was ninety five Global News twenty four hours a day
(09:09):
and whenever you want it with Bloomberg News Now Michael Barrn,
This is Bloomberg.
Speaker 2 (09:12):
Karen, all right, Michael Barry, thank you time now fild Bloomberg.
Sports Update brought to you by Tria State OUTI. Here's
John Stanshawer, John, good morning, Good morning.
Speaker 13 (09:25):
Karen Nixon. Sixers at the Garden. The two teams at
a memorable playoffs series last year, but this season's been
a nightmare in Philly, especially lately. They came in having
lost eight in a row. We're on their way to
another lop side and lost. When they rallied, Sixers went
from down nineteen to up four, but Jalen Brunton, a
big three, made a bunch of free throws. He was
fifteen of sixteen from the line. Brunson finished with thirty
(09:46):
four points. Nicks pulled it out one ten, one oh
five at Barkleys looked like an upset and Nets led
West lead in Oklahoma City by fifteen and a half
back came the thunder to win one, twenty nine, one
twenty one, the Celtics six game wins streak ended in
Detroit to much improved Pistons, won by twenty Colorado Avalanche
four goals in the third period to beat the Devil's
five to one. In college basketball, the madness is usually
(10:07):
in March. We're not quite there yet, but a mad finish.
As Michigan State and Maryland were tied.
Speaker 3 (10:12):
Go and speak for three years. Coloman looks the clock.
Speaker 8 (10:21):
My goodness.
Speaker 13 (10:26):
They attend network to call the Trey Holloman half court
shot for the Spartan Saint John's got twenty four points
of R. J. Lewis and one at Butler's seventy six
to seventy. The Red Storm had clinched at least a
tie for the Big East regular season title and win
Saturday at the Garden over Seaton Hall, and they went
it outright. The NFL Players Association had their rank and
file to a survey of their employers. The Dolphins got
(10:48):
the highest grades, the Cardinals the worst. When it came
to team ownership, the only owner that got a grade
of an F was the Jets. Woody Johnson, John Stashiawer
Bloomberg Sports Karen Eathan.
Speaker 1 (11:00):
Coast to Coast on Bloomberg Radio nationwide on Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3 (11:10):
Good morning, I'm Nathan Hager. The morning after and Nvidia
earnings Day, the most hotly anticipated earnings report arguably of
the week, if not the month. This morning, it seems
investors are still trying to figure out how to react
to it. The AI chip giant came out with a
sales forecast that beat the average Wall Street estimate, but
not the blowout result that a lot of investors have
(11:32):
gotten used to over the last couple of years with
this company. For more reaction, let's bring in Dan Ives,
Global head of Tech research at Webbush Securities. Dan always
great to talk with you, particularly about AI. Your reaction
to these results from Nvidia.
Speaker 12 (11:47):
Good morning, it's bullsh I mean, if you look at
Blackwell the next gen chip eleven billion, that's basically three
to four billion, then I think most in the street
we're expecting, even the bulls, the deep seek fears you're
not seeing it. It's smoked no fire, and I think
this is one is the street digestics, and this stock's
(12:08):
green today.
Speaker 3 (12:10):
The forecast for forty three billion dollars in sales this quarter,
as I mentioned, just above the average estimate, but there
were some analysts who are calling for something like forty
eight billion or more. Does Nvidia need to continue to
produce the kinds of blowout results that investors had been
(12:30):
getting used.
Speaker 12 (12:31):
To, Yeah, I actually don't think so. I think we
were at that point right in terms of the hypergrowth
going from one trillion to three trillion. But now for
this stock one seventy five, two hundred, you're not going
to need these massive blowouts. It's actually the trajectory is
so historic because they are the only game in town
(12:52):
when it comes to these next gen chips and there's
only one Red phones godfather b Ai Jensen Nvinion. I
think you start to have gout six seven dollars earnings
next you know, called one two years and there's a
stock that I could have a two in front of
it as we go into next year.
Speaker 3 (13:06):
You say that in video is still the only game
in town. There had been a lot of questions raised
about Deep Seek. It sounds like you're putting Deep Seek
on the back burner. Here, But how much of a
threat could deep Seek be down the line if it
continues to produce an AI model that is potentially a
much lower cost than in VideA.
Speaker 12 (13:28):
Yeah, look, deep Seek's a great model, but so is
Chad GBT and so as well. I'm and there'll be
other models and they'll get cheaper. But for large scale
enterprise deployments, there's only one chip that you're using.
Speaker 3 (13:42):
It's in video.
Speaker 12 (13:44):
And I could also argue as the models get cheaper,
it's more GP capacity.
Speaker 3 (13:49):
It's actually bullish for in video.
Speaker 12 (13:52):
So I don't view it that way. But remember, look
right now, everyone's trying to find a crack in the
arm or AI bubb well, remember a lot of the
bears they've missed, you know, this massive run in tech
for the last three years. They're not finding it. I
actually think, you know, this is the fuel for really
the book is not just in Nvidia, but really the
broader AI revolution across the rest of tech, max having others.
Speaker 3 (14:15):
So do you continue to see the hyperscalers, these big
companies continuing to spend on AI the way that they
have tens of billions of dollars every quarter. We've seen
some companies talking about at least trying to scale back
some of that cap bax.
Speaker 12 (14:31):
Look, it's you have three hundred and twenty five billion
of cap backs between you called the top six tech players.
That's one hundred billion increased year of a year. Well
that moderate going into next year, of course, but it's
the start that you're essentially building out a new city,
and it starts the vidio, but then it goes to
the hyper skills, goes to the rest of software, goes
(14:52):
to cybersecurity, consumer data centers, and that's really where this
is playing out. Look, are there certain things like Trump
in terms of export controls in some other words, of course,
but the reality is is that we're talking about once
in a forty to fifty year build out.
Speaker 3 (15:09):
We've got Nvidia in the pre market trading around one
hundred and thirty two dollars to share. You adjusting your
price target for Nvidia.
Speaker 12 (15:17):
One seventy five base two hundred bull and I ultimately
think this is one where you know, there's a lot
of worries going into this. They produce flying calls in
terms of coming out with this. Now you digest what
this means going forward, China is going to be a player.
But ultimately, you know, in Vidia continues to be that
(15:40):
only game in town. When it comes to next ten chips.
Speaker 3 (15:43):
Just thirty seconds left, Dan, how much does Nvidia have
to get past Wall Street estimates to get to that
two hundred dollars ball case?
Speaker 12 (15:52):
Look, I think if they continue on this trajectory, especially
with Blackwell, I mean, I think you could be there
in the next you know called two three quarters. But look,
haters hate. That's what happens in video. They've missed every
transmission tech dot plast twenty years.
Speaker 3 (16:05):
The missing video were bors.
Speaker 2 (16:06):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 3 (16:13):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 2 (16:19):
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
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Speaker 3 (16:34):
Plus listen coast to coast on the Bloomberg Business app
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Speaker 2 (16:40):
Don't forget to subscribe to Bloomberg News Now. It's the
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Search Bloomberg News Now and your favorite podcast platform to
stay informed all day long. I'm Karen Moscow.
Speaker 3 (16:53):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day, right
here on Bloomberg Daybreak
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