Bloomberg Daybreak: US EditionNvidia's AI Future; Trump Aims to Block Key Report
On today's podcast:
1) Nvidia rolls out a vision for an AI future at the Consumer Electronics Show
2) Former Bank of England Governor Mark Carney says he's considering a run to be Canada's Prime Minister
3) President-elect Trump pushes to block the release of the special counsel's final report
Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with Video CEO Jensen Wang has announced a range of new chips, software and services as the company looks to maintain its lead in artificial intelligence. Jensen Wong spoke to a packed arena at the opening of the Consumer Electronics Show in Las Vegas.
And so when you.
See application after applications that are AI driven AI native at the core of it, this fundamental concept is there. Machine learning has changed how every application is going to be built, how computing will be done, and the possibilities beyond.
And you can hear more from Nvidia CEO Jensen Wang later this morning. We're going to speak live with the CEO in Las Vegas, and you can catch that conversation at eleven thirty this morning, Wall Street Time on Bloomberg Radio and Television.
Well, Nathan Wongs and Vidia begins the day at an all time high. The stocks surged almost three and a half percent yesterday. Lorie Calvasina, the head of US equity strategy at RBC Capital Market, says it is a key for the markets for other stocks to participate in the rally.
Look, I think a lot of people want this market to broaden out. You can count myself in that camp. That being said, I think we have to understand why we have had so many head fakes so far, and it is simply because the value part of the market, the rest of the SMP, whatever you want to call it, has just not put up superior earnings growth.
RBC's Lori Calvasina notes a gauge of the Magnificent seven mega caps outperform the broader markets, climbing two percent.
Well, another major market story we're following this morning, Karen involves geo politics. The US is targeting the world's biggest gaming publisher and the top electric vehicle battery maker. In a surprise move of weeks before Donald Trump takes office, The Pentagon has blacklisted ten Cent Holdings Contemporary Amprex Technology, or CATL for alleged links to the Chinese military. We get more from Bloomberg's Rebekka Chung Wilkins in Hong Kong.
It's this Pentagon list of companies with these alleged links to the Chinese military doesn't actually necessitate any kind of actual sanctions or immediate restrictions on these companies. But it is essentially a form of sort of discouragement to US entities and to US companies from dealing business or trading these names. So you know, we'll really wait to see whether the long term consequences followed through. Important to note that Tencent, among those other names, have pushed back quite firmly on this allegation. They say that their inclusion on this list is a mistake.
Bloomberg's Rebecca Chung Wilkins says China's Foreign ministry is vowing to defend its company's rights.
Meanwhile, Nathan Treasury Secretary Janet Yellen Hares raised serious concern about malicious cyber activity, which China's Vice Premier Hali Fog the Treasury Department serves the t leaders meant virtually yesterday, and Yellen Warren of consequences for Chinese companies that support Russia's war in Ukraine, as well as Chinese industrial over capacity that she says is harming US business. The exchange comes a week after the US said Chinese state sponsored hackers had reached about.
One hundred Treasury Department computers.
It's likely to be Yellen's final direct contact with the Chinese government and Karen.
We continue to follow the political turmoil in Canada. Hours after Justin Trudeau announced his plans to resign as Prime Minister, Mark Karney, former Governor of the Bank of England and Bank of Canada, said he's considering entering the race to be Canada's new leader. Carney is currently chair of Bloomberg's.
Board of Directors.
He says he is encouraged by support from Liberal Party lawmakers and backers. Yesterday, Trudeau cited his own inability to unite the Liberal Party.
I have always been driven by my love for Canada, by my desire to serve Canadians, and by what is in the best interests of Canadians, and Canadians deserve a real choice in the selection, and it has become obvious to me with the internal battles, that I cannot be the one to carry the Liberal standard into the next selection.
Justin Trudeau will remain Canada's Prime Minister until a new leader is selected, that will likely be in March.
Well, Nathan, with less than two weeks until Donald Trump returns to the White House, the President elect is making a move to keep these special counsels repoored against him from becoming public. Trump's lawyers are asking a federal judge in Florida at a blog Attorney General Merrick Garland from releasing Jack Smith's final report in the classifying documents case. They say it accuses the president elect of engaging in an unprecedented criminal effort, and there's reason to believe Garland plans to release it within the next few days. The filing confirmed Smith is close to finalizing and may have already finished his report. Smith dropped his case against Trump after the election, citing long standing Justice Department policy against prosecuting sitting presidents.
M Karen, a big supporter of Donald Trump, has been added to the board at Meta Platforms. It's Dana White, the CEO of Ultimate Fighting Championship. White is a friend of Meta CEO Mark Zuckerberg. He has expanded UFC into one of the world's most popular sports and entertainment businesses. Zuckerberg is an avid mixed martial arts fan and recreational fighter.
Well Nathan, a US doc workers union and their employer group will meet today with just over a week to hammer out a deal on a new labor contract, and let's find out more with the Bloomberg said John Tucker and John, here we go again.
Yeah, potentially, Karen. The International Longshoreman's Association and the US Maritime Alliance are meeting in New Jersey. They're going to try to negotiate a new labor contract with a deadline of January fifteenth, to avoid a strike that could halt half the country's container volumes. The main point of contention the use of semi automated cranes at port terminals, with the USMX seeking to improve productivity. Now you'll recall back in early October, the ISLA reached a tentative deal on a sixty two percent wage increase over six years that suspended a three day strike but left the technology issue unresolved. Retailers like Home Depot, Dollar General, and Gap say, with just ten days until the deadline for an agreement, they're now implementing contingency plans at working to try to keep inventory moving and limit the impact of any strike on consumers. You know, York, I'm John Tucker, Bloomberg Radio.
It's 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 Bloomberg's Michael Barr Michael, good Morning.
Good Morning Karen. In New Orleans, What Peace, President Joe Biden attended a prayer service to offer condolences and pledge federal support to the families of the victims of the New Year's Day attack. Biden was accompanied by the First Lady and other officials.
IM wife Jill, and I here to stand with you, agree with you, to pray with you. Let you know you are not alone. The rest of the nations looking at you as well.
Biden promised to make every resource available to complete the investigation and provide additional security for upcoming events in the city. The attack along Bourbon Street, which killed fourteen people and injured over thirty, is believed to have been carried out by a lone individual inspired by ISIS, who was killed in a shootout with police. A strong earthquake has shaken a mountainous region in western China near Nepal, killing at least fifty three people. More than sixty others were hurt. China says the earthquake registered to magnitude six point eight. The epicenter was about fifty miles northeast of Mount Everest, which straddles the border. Today is catch up day for US airlines, as this week's winter weather has led to thousands of flight cancelations and delays. Kathleen Bangs is with flight tracking company flight Aware.
What we saw, We're over four thos thousand flights canceled Sunday and Monday, and delayed flights almost up to twenty thousand. That sounds like a lot. We've had winter storms, however, where they were far worse, but this is definitely the most impactful that we've seen so far this winter season.
Flying Aware, as Kathleen bang says, today winds are going to be gusting potentially up to forty five or fifty miles an hour, slowing down ground operations. Meanwhile, bitter cold will hit the southern US today. Finally, Donald Trump is nominated to state court judge from Long Island to be US Attorney for the Eastern District of New York. Trump says Joseph Nocella Junior served as a district judge in Nassau County. If confirmed, he would replace Breon Peace, a Brooklyn native, who was appointed by US Attorney and then President Joe Biden in twenty twenty one. Global news twenty four hours a day and whatever you want it with Bloomberg News Now. I'm Michael Barr.
This is Bloomberg Karen Orry, Malchael Barr. Thank you.
Time now for the Bloomberg Sports Update, brought to you by Try State Outy. Here's John Stanshawer, John, good morning.
Good morning.
Carry. Three NFL teams, the Jets, Bears, and Saints, fired their coach during the season. Two others, the Patriots and Jaguars, have let their coach go since the season ended, but the Giants are sticking with Brian day Ball Angela manager Joe Shane, despite a three and fourteen nightmare season, most losses in the one hundred year history of the team. Owner John Mara cited that it was only two years ago the day Ball was coach of the Year, said he liked Shane's most recent draft class. He admitted his decision would not be popular in what he called Giants Land. There had been two straight home games where a plane was rented carrying a sign imploring Marat to clean house.
I didn't need planes flying over me to tell me how upset the fans are. I hear from them every day, so that really did not have much of an effect. I get how upset they are. I try to respond to them. Nobody was more upset than I am about how we performed in recent years. And yeah, I have to stand up here and take the heat for that.
Marri admit of the Giants need to find a quarterback Sead It's up to Sane and Davil to do that. Another team that may fire its coach is Dallas. Mike McCarthy says he wants to stay. His contract expires next week so he could become a free agent coach. Chicago reportedly wants to interview McCarthy. The Jets talking to several candidates, including Rex Ryan. He was the Jets head coach the last time they went to the playoffs, back in twenty ten at the Garden, bad loss of the Knicks, though they were without Karl Anthony Towns to a knee injury, Orlando was without its top four scorers, had already lost the Knicks three times this season. The Magic one one oh three ninety four Knicks made only four of twenty two three pointers nets at Barkley's lost to Indiana won thirteen ninety nine Devils. The three to two win at Seattle Capitol's loss of a shootout at Buffalo Rutgers beaten by Wisconsin seventy five sixty three, The Mets announced they will retire David Wrights number five. On July nineteen, John stash that we're Bloomberg Sports Karen need.
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. The company that has been at the forefront of artificial intelligence architecture for a couple of years now is looking to cement that position for years to come. And Nvidia CEO Jensen Wong unveiled a range of new chips, software and services in front of a packed audience last night at the CES trade show in Las Vegas, including an update to the processor for in Nvidia's traditional customer base of gamers.
The g Force.
G Force enabled AI to reach the masses, and now AI is coming home to g Force.
And for more.
And what we heard last night from Nvidia and it's CEO Jensen Wang. We're pleased to be joined this morning by Bloomberg's Tom Mackenzie, Tom, good morning. G Force was really just the tip of the iceberg? Was it a Jensen Wong gave a lot for investors to chew on.
Yeah.
Look he stood there on the stage and is in his sparkly leather jacket and not there to vegas. It was a pass packed auditorium as you can imagine the keynote speaker and as you say, look he hit on a number of different topics and a number of different unveils as well for the business. So yes, G Forces, as you mentioned as well, a bit of a nod back to back to the past the foundations of that business of course, and video starting thirty years ago or so as a gaming company building chips for gaming, and then of course those were repurposed for AI. As we know, the G Force is interestingly built on AI infrastructure now, the Blackwell infrastructure, so that the proposition is will supercharge gaming. So if you're a hardcore gamer, that's good news. They get about ten billion eleven billion US dollars in terms of revenues from gaming, still so not insignificant, but pales and comparison in terms of what they get in terms of revenues from the data center of the business with those AI accelerators, that's expected to be about one hundred billion this year in terms of revenues, but nonetheless still a significant component is gaming. There was also the software piece as well, and it's a reminder that in Vida doesn't just do the hardware, doesn't just do the chips, it does the software around as well, with Kuda for example, that accompanies those black Well chips. But they also announced a foundation model in terms of helping developers to start to embed AI into physical property, so robots and cars, and that was a big push by Jensen Wang. He's obviously looking for other segments to grow the business, and he thinks that physical AI is going to be quote a multi trillion dollar opportunity for his business and others within the space.
Yeah, the aspect of that was really interesting, particularly with this partnership that Jensen Wang announced last night with Toyota on self driving cars, particularly when we're hearing from a number of analysts now saying that Tesla is a pure AI play. This could put in Vidio into even further direct competition in the self driving vehicle space.
Absolutely, and you just see every time Jensen Wong mentions a partner company. You see the move in the stopples. You saw that Media Tech. You saw that with Toyota. As you said that rallied on the back of this news. So they're going to be partnering. We're Toyota. Autonomous Vehicles is going to be part of the person you can see your future where your interactions with your car are going to be much more seamless. They're going to be, for example, doing things like facial recognition make sure you're not falling asleep, but the wheel giving you more updated data in terms of driving conditions, the road surface, all that kind of thing as part of that autonomous driving package as well. Obviously you won't be driving, it will be autonomous, but you'll be sitting. They're making sure that things stay stay on track. In terms of what else happens with the embed of AI generitive AI into some of these physical attributes. Bank of America you nodded to some of the concerns, maybe some of the cautionary notes coming through from an as Bank of America saying, look, you've got they've got to make sure that they are cheap enough. These propositions that the components they're building around embedding AI into robotics and autonomous cars. They're going to be cheap enough, pervasiveness and efficient enough to really be a new business proposition for in video. So maybe that's still a question mark for them, but clearly this is a CEO and a team that's determined to push beyond data centers to continue that growth.
Last minute time, with this vision laid out last night, how important was it for Jensen Wang to overperform in terms of what the market's looking for, particularly after that last earnings report that seemed to underwhelm investors.
There's always a mismatch. Always there has been a mismatch, hasn't there in terms of the concern has been There's going to be a mismatch in terms of the expectations from the markets versus what has delivered. And of course, in historic recent quarters, bar that one the most recent quarter, Nvidia managed to outperform those expectations. Now the expectations are just so so high for many analysts, they're saying that is the concern. How does Nvidia continue to meet those meet those expectations. Microsoft delayed some of those fears, of course, a couple of days ago when it announced it was going to be spending about eighty billion US dollars on data centers just this year alone, and of course Nvidia will be a key part of that build out and that spend and SATI in the Della speaking in India earlier today, talked about the partnership between Microsoft and Nvidia, but also the partnership between Microsoft and AMD, and that's where the competitive question comes into play. For Nvidia, AMD still only has a marginal slice and fraction of the market share when it comes to AI accelerators, but they are obviously determined to kind of close that gap, and obviously a number of their customers and videous customers the hyperscale is already spending on R and D develop their own chips, and that underscores gentle One's distermination to go beyond data centers into sovereign AI and now increasingly into quote unquote physical AI.
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