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00:00> > GOOD MORNING, THIS IS HORIZONS MIDDLE EAST & AFRICA. NVIDIA DELIVERS A LACKLUSTER SALES FORECAST AFTER TWO YEARS OF BOOMING AI SPEND, SENDING SHARES LOWER IN AFTER HOURS TRADING. BLOOMBERG LEARNS MEXICO PLANS TO RAISE TARIFFS ON CHINA AS PART OF ITS 2026 BUDGET PROPOSAL NEXT MONTH, AFTER MONTHS OF PRESSURE FROM PRESIDENT TRUMP. PLUS, OIL IS FALLING DESPITE PETER NAVARRO STEPPING UP THE PRESSURE ON INDIA TO STOP BUYING RUSSIAN CRUDE. TRADERS FOCUSING ON THE RISK OF A SUPPLY GLUT. JUST GONE 8:00 A.M. ACROSS THE EMIRATES, I AM JOUMANNA BERCETCHE. THE MAIN EVENT WAS ALWAYS GOING TO BE THE NVIDIA EARNINGS. WE ARE GOING TO DELVE DEEPER INTO WHAT WE DIE. WHAT YOU NEED TO KNOW IS THE AFTER HOURS PERFORMANCE WAS DISAPPOINTMENT. THE STOCK WAS TRADING AS LOW AS 3% AFTER HOURS DESPITE THE FACT THEY BEAT ON TOP AND BOTTOM LINE. I GUESS THE BAR WAS SO HIGH FOR A STRONG BEAT THAT WE ARE SEEING SOME POSITION TRIMMING. WE WILL TALK MORE ABOUT THAT, BUT YOU CAN SEE FUTURES DIPPING A LITTLE. S & P DOWN SEVEN BASIS POINTS, NASDAQ DOWN ABOUT .2%. NVIDIA HAVING AN IMPACT ON THE WAY NASDAQ IS TRADING. THE GREENBACK ALSO DECLINING FOR A THIRD DAY. BRENT ALSO DOWN ABOUT .8%. INVESTORS LOOKING PAST THE PRESSURE THE U.S. IS APPLYING ON INDIA TO CEASE BUYING RUSSIAN OIL. THEY REMAINED DEFIANT AND FOCUSING ON THE DEMANDS AND GROWTH OUTLOOK FOR THE REST OF THIS YEAR. LET'S CHECK OUT MARKETS IN ASIA ARE FARING. YVONNE MAN IS IN HONG KONG. RUN US THROUGH THESE MARKETS. YVONNE: DESPITE WHAT YOU MENTIONED, THE AFTER HOURS TRADE ON NVIDIA WE THOUGHT WAS GOING TO BE A SELLOFF IN ASIA, WE HAVE BEEN TAKING IT IN STRIDE. LOOK AT THE TECH HEAVY BENCHMARKS LIKE THE KOSPI, LIKE TAIWAN, ACTUALLY DOING OK. MAYBE BECAUSE THERE WERE NOT HUGE NEGATIVE SURPRISES. THE FACT THEY TOOK OUT CHINA IN H20 SALES IN OUTLOOK FOR THE THIRD QUARTER DID MOVE SOME LOCAL CHIPMAKERS IN CHINA. MAYBE THAT GIVES A WINDOW TO CONTINUE ON THE SELF-RELIANCE THEME, THE WHOLE CHINA BUYING CHINA IS SOMETHING WE HAVE BEEN TRACKING. TAKE A LOOK AT THESE NAMES, LIKE TAIWAN SEMI. THAT IS THE ONE SEEING A BIG DRAG DOWN ABOUT 1% ON TSMC ON THE BACK OF NVIDIA EARNINGS. SAMSUNG DOWN AS WELL. LOOK AT THE ONES IN CHINA, ON SHORTLISTED. THIS ONE WAS 13% HIGHER. CAMBERCON TECHNOLOGIES, SEEN AS THE NEXT CHALLENGER TO NVIDIA IN CHINA, BRIEFLY YESTERDAY BECAME ONE OF THE PRICIEST STOCKS ON SHORE, BRIEFLY SURPASSING ANOTHER WHEN IT COMES TO STOCK PRICE. THERE IS A LOT OF TALK ABOUT THESE HOMEGROWN CHAMPIONS EMERGING FROM THE U.S.-CHINA TECH RIVALRY. ANOTHER TO WATCH IS MEITUAN. THAT'S WHY WE ARE SEEING THE HSI DOWN. 10% DROP ON THE STOCK. SALES SIDE ANALYSTS ARE SLASHING THE PRICE TARGETS AFTER THE COMPANY WARNED OF MAJOR LOSSES AHEAD, GIVEN THE FIERCE COMPETITION IN THE FOOD DELIVERY SPACE AGAINST THE LIKES OF ALIBABA AND J.COM. INVESTORS ARE NOT GOING TO HAVE THAT MUCH PATIENCE TO WAIT FOR PROFITABILITY TO IMPROVE. JOUMANNA: YEAH. A TALE OF TWO HALVES. YOU HAVE THE RETAIL, MEITUAN DRAGGING DOWN THE INDEX, BUT THE CHIPMAKERS SHOWING GREEN. SOME NUMBERS COMING THROUGH FROM EUROPE. EUROPEAN CAR SALES HAVE RISEN 5.9% TO 1.0 9 MILLION IN JULY. WHAT'S CRUCIAL ABOUT THESE NUMBERS IS THEY HAVE SHOWN THE BIGGEST GAIN IN 15 MONTHS FOR THE EUROPEAN CAR INDUSTRY. THAT IS QUITE NOTABLE. I WOULD POINT OUT THAT PLUG-IN HYBRIDS HAVE MADE THE BIGGEST JUMP IN JULY OF 52%. THOSE CONTINUED TO DO WELL. AS FOR FULLY ELECTRIC VEHICLES, THOSE ROSE BY MORE THAN A THIRD, ALSO THE BEST RESULT SINCE JANUARY. INTERESTING TO SEE DESPITE THE GLOOM ABOUT THE AUTO INDUSTRY IN EUROPE, YOU ARE SEEING A HEALTHY SALES PICTURE, THE HIGHEST RISE IN 15 MONTHS. ALSO TO NOTE, BECAUSE THIS HAS BEEN RELEVANT FOR TESLA, TESLA SALES HAVE SLUMPED 40% IN EUROPE. 40%, QUITE SIGNIFICANT. TESLA ONLY HAS A MARKET SHARE OF 0.8% RIGHT NOW IN EUROPE. VERY INTERESTING NUMBERS. LET'S GO BACK TO THE MAIN STORY, NVIDIA HAS ISSUED A TEPID REVENUE FORECAST FOR THE CURRENT PERIOD, FUELING CONCERNS THAT AI SPENDING IS SLOWING. THE FIRM EXPECTS SALES OF ABOUT $54 BILLION THIRD-QUARTER, EXCLUDING DATA CENTER REVENUE IN CHINA AND TRAILING MORE OPTIMISTIC ESTIMATES. > > WITH THE GEOPOLITICAL ESTIMATES, WE SHOULD SHIP $2 BILLION TO $5 BILLION IN REVENUE IN Q3. IF WE HAD MORE ORDERS, WE CAN BUILD MORE. WE CONTINUE TO ADVOCATE FOR THE U.S. GOVERNMENT TO IMPROVE BLACKWELL FOR CHINA. OUR PRODUCTS ARE DESIGNED AND SOLD FOR BENEFICIAL COMMERCIAL USE. JOUMANNA: LET'S GET MORE FROM OUR ASIA TECH CORRESPONDENT IN HONG KONG. MAYBE DISSECT THIS IN FURTHER DETAIL BECAUSE ON FIRST BLUSH, THE TOP AND BOTTOM LINE WERE BEADS. WHAT IS IT ABOUT THESE NUMBERS THAT HAVE SENT THE STOCK DOWN IN AFTER HOURS TRADING? ANNABELLE: TWO MAIN FACTORS. ON THE ONE HAND, THE LOFTY PROJECTIONS THAT NVIDIA COULDN'T MEET. FOR THE THIRD QUARTER, AS YOU SAID, IT WAS IN LINE WITH WHAT ESTIMATES HAD BEEN, $54 BILLION OF SALES. AT THE HIGH END OF THE SCALE, PEOPLE WERE SAYING IT COULD BE UP TO $60 BILLION, SO THAT'S WHERE THE DISAPPOINTMENT IS ALLOWED TO CREEP IN. OPTIONS HAVE BEEN INDICATING AROUND A 6% JUMP OR SLIDE BUT WE HAVE ONLY SEEN ABOUT 3% DOWN IN LATE TRADE. THAT IS BETTER THAN WHAT COULD HAVE HAPPENED IN THE MARKET AND MAY BE WHY YOU ARE SEEING TRADING LOOKING MORE SUBDUED. IT'S NOT REALLY COMING ACROSS INTO A LOT OF THE ASIAN CHIP NAMES. WHAT ELSE STOOD OUT IS THE CHINA DATA. THE BIG CHINA QUESTION WAS ONE OF THE KEY UNKNOWNS GOING INTO THE NUMBERS, HOW THEY WOULD BE FARING WITH H20 SALES, WHAT THEY WOULD BE LOOKING TO DO WITH HAVING A SPECIFIC BLACKWELL SYSTEM DESIGNED FOR THE MAINLAND MARKET. GIVEN THE LACK OF CLARITY AROUND WHAT IS GOING ON ESPECIALLY FOR THE CHINA DEMAND SIDE, NVIDIA SAID THEY WERE NOT ABLE TO BAKE IN ANY SALES AT ALL TO THE UPCOMING FORECAST. THEY ARE TWO OF THE MAIN FORECASTS THAT HAVE COME OUT OF THE NUMBERS TODAY. JOUMANNA: LET ME ASK ABOUT SOMETHING ELSE THAT HAS COME UP BEYOND THE GEOPOLITICS OF THE ABILITY TO SELL INTO CHINA AND WHAT'S GOING TO HAPPEN WITH THE FUTURE OF THE CHIPS. TRUMP FLOATED THE POSSIBILITY OF CHARGING 15% LEVY OF THE SALES THAT NVIDIA ACTUALLY DOES MAKE. WHAT IS THE LATEST LANGUAGE AROUND THAT? ANNABELLE: THIS RELATES BACK TO THE H20, THE CHIP DESIGNED FOR THE MAINLAND CHINESE MARKET. SALES OF THAT WERE HALTED BY THE TRUMP ADMINISTRATION. JEN SAKE ONE LOBBIED EXTENSIVELY . HIS ARGUMENT IS THE MORE YOU RESTRICT CHINA, THE MORE YOU PROPEL IT FORWARD AND PUSH FOR SELF-RELIANCE A. PART OF THE AGREEMENT WAS THE TRUMP ADMINISTRATION SAID WE WANT 15% COMMISSION ON ANY SALES YOU ARE MAKING, PLUS AMD, ON CHIPS TO THE MAINLAND MARKET. FOLLOWING THE NUMBERS, WE HAD AN INTERVIEW WITH COLETTE KRESS, CFO OF NVIDIA, AND SHE PUSHED BACK ON THE 15% FEE. SHE SAID THE GOVERNMENT HASN'T SO FAR INDICATED THEY WILL -- THEY WANT TO PUT THOSE REGULATIONS IN PLACE. FAILING HAVING CLARITY WHERE THE PLAN ISN'T CODIFIED, NVIDIA IS SAYING THEY COULD PROGRESS FOR POSED LEGAL CHALLENGES TO THE BUSINESS AND WOULD BE PROCEEDING WITH SALES TO CHINA AND NOT PAY ANY COMMISSIONS. THAT WAS THE BIG TAKE AWAY FROM THE INTERVIEW WITH COLETTE KRESS , NOT LOOKING TO PAY COMMISSION ON SALES OF CHIPS TO CHINA. THE QUESTION IS, DOES CHINA REALLY WANT THOSE CHIPS RIGHT NOW? SO FAR THE SIGNALS ARE THEY DON'T, THEY WANT TO CONTINUE TO PUSH THE HOMEGROWN CHIPS IN CHINA. JOUMANNA: IT WAS INTERESTING THEY SAID THEY DIDN'T SHIP ANY CHIPS TO CHINA LAST QUARTER, WHICH IS NOTABLE BUT ALSO MEANS THERE IS POTENTIAL UPSIDE IF THEY DO START SHIPPING. THANK YOU FOR HELPING US MAKE SENSE OF IT ALL. TECH SHARES ARE LOWER IN ASIA AND U.S. SHARES POINT LOWER AFTER NVIDIA'S EARNINGS REPORT. JOINING US TO DISCUSS IS SUMANT WAHI, PORTFOLIO MANAGER AT MAN GROUP. BIG DAY FOR ANYONE INVESTING IN THE TECH SPACE. LET ME START BY ASKING WHETHER YOU THINK THERE ARE SIGNALS COMING FROM THIS EARNINGS REPORT SUGGESTING THAT THIS GROWTH MOMENTUM IN TERMS OF THE COLLECTIVE AI SPEND IS NO LONGER SUSTAINABLE. > > THANKS FOR HAVING ME. IN MY MIND, AS ANNABELLE SAID PERFECTLY, IT'S AND EXPECTATIONS MISS AND THERE WAS CHINA MISSING IT. I'M NOT READING MUCH SLOWDOWN IN DEMAND FROM THIS. THESE HIGH NUMBERS, A SUSTAINABLE RUN RATE IS MORE THAN WE SHOULD EXPECT AT THIS POINT. I'M FAIRLY COMFORTABLE WITH THIS AND WHAT IT MEANS FOR THE OVERALL AI INFRASTRUCTURE. I THINK INVESTORS ARE TRYING TO SLOWLY MOVE FROM INVESTING IN THE ENABLERS OF THE TECHNOLOGY TO THE BUILDERS AND INNOVATORS SITTING ON TOP OF THE TECHNOLOGY. A FAIR WAY THAT THE TECHNOLOGY AND INVESTING WILL MOVE IN THIS SPACE. JOUMANNA: IT'S INTERESTING THAT CEO JENSEN HUANG SAID HE EXPECTS THREE BILLION DOLLARS TO $4 TRILLION OF AI INFRASTRUCTURE SPEND BY THE END OF THE DECADE, $3 TRILLION TO $4 TRILLION. THIS YEAR BIG TECH IS PROBABLY GOING TO SPEND $600 BILLION, I WATERING NUMBERS. AT WHAT POINT DO YOU HAVE TO BE ASKING SERIOUS QUESTIONS ABOUT MONETIZATION? > > WE SPOKE 10 MONTHS AGO TALKING ABOUT THE SAME CONCEPTS ABOUT ROI ON AI. ALTHOUGH A LOT HAS CHANGED IN THAT TIME, THAT IS STILL THE KEY DEBATE AS WE SEE IT TODAY. WHEN I LOOK INTO CERTAIN SUBSECTORS, WE ARE SEEING SOME REAL CHANGE AT THE BACK OF APPLYING AI AND INTERNET COMPANIES, NOT JUST THE METAS OF THE WORLD, BUT ALSO SMALLER COMPANIES DOWN THE VALUE CHAIN. THAT IS WHAT WILL SUSTAIN THIS LEVEL OF DEMAND. I SEE THE AI INFRASTRUCTURE AS THE NEW ELECTRICITY OF OUR TIMES. I THINK $3 TRILLION TO $4 TRILLION MAKES SENSE AS LONG AS YOU CAN PROVE THE RETURN ON THAT INVESTMENT. JOUMANNA: CAUTION IS DUE. I WANT TO REFERENCE THE M.I.T. PAPER. LOADS OF PEOPLE IN THE INDUSTRY HAVE BEEN TALKING ABOUT IT, SUGGESTING 95% OF GENERATIVE AI PILOTS DON'T WORK OUT. ONLY 5% DO. THAT TELLS YOU YOU HAVE TO BE DISCERNING ABOUT THE TYPES OF PROJECTS AND ENDEAVORS YOU ARE ENGAGING AND INVESTING IN. > > ABSOLUTELY, I WAS READING THAT OVER THE WEEKEND. IT'S VERY SPECIFIC, TALKS ABOUT THE FACT HOW NUANCED THE INVESTMENT INTO AI NEEDS TO BE FOR THESE ENTERPRISES. COMPANIES LOOK FOR NOT THE HEADLINE CHANGES IN THEIR PROCESSES BUT ACTUALLY IN BACK OFFICES AND HAVE SEEN SOME DISCERNIBLE CHANGE AT THE BACK OF IT. EVERY TECHNOLOGY WHEN IT IS DRIVEN BY THE MANAGEMENT, BY THE BOARD WITHOUT ANY UNDERLYING PROCESSES CHANGED, IT DOESN'T LIVE UP TO ITS EXPECTATIONS. WHEN THERE IS A GRASSROOTS CHANGE, WE DO SEE THAT BENEFIT. WITH AI, CONSUMERS ARE THE FIRST TO ADOPT AND WE ARE SEEING SOME REAL CHANGE. THERE IS A SLOWER PACE. I THINK A LOT OF FOLKS HAVE SAID THIS BEFORE. TECHNOLOGY IS SLOW IN THE NEAR TERM BUT SURPRISES IN THE POSITIVE ON A LONGER PERIOD OF TIME. HEY I IS THE SAME. ENTERPRISE ADOPTION IS THERE BUT SLOWER THAN PEOPLE EXPECT. I THINK THERE IS REAL CHANGE, ESPECIALLY IN SOFTWARE. JOUMANNA: LET ME ASK ABOUT THE CHINA HOMEGROWN MARKET. INTERESTING WHAT YVONNE WAS SAYING WHEN SHE WAS RECAPPING THE MARKETS, SUGGESTING SOME OF THE LOCAL CHIPMAKERS HAVE STARTED TO CHARGE AHEAD AND DID SENSE A WINDOW OF OPPORTUNITY BECAUSE NVIDIA WAS CUT OFF FROM THE CHINESE MARKET. NVIDIA THEMSELVES SAYING THEY WERE UNABLE TO SELL ANY H20 CHIPS. HOW DO YOU SEE THAT DYNAMIC PLAYING OUT IN THE COMING QUARTERS? > > I AM FOCUSED ON CHINESE SELF-RELIANCE. WE ARE SEEING THAT BENEFIT HAPPENING. THE CHINESE TECH SECTOR HAS SHOWN IMPROVEMENT NOT JUST IN ALGORITHMS, CHIPS AND SEMI CONDUCTOR MANUFACTURING. ULTIMATELY IT IS A COMBINATION OF GEOPOLITICS AND PROCESSING PERFORMANCE PER DOLLAR, SO TO SPEAK. NVIDIA, AS THE BENCHMARKS SHOW YOU, IS LEADING IN THAT RESPECT. THE CHINESE CUSTOMERS NEED TO DECIDE WHETHER THEY ARE LOOKING FOR THE BEST PERFORMANCE PER DOLLAR OR WHETHER SELF-RELIANCE IS THE FOCUS. THEY BOTH HAVE THEIR SPACE TODAY. IN THE NEAR TERM, BECAUSE OF GEOPOLITICS, NVIDIA IS NOT ABLE TO SHIP, IF YOU TAKE A STEP BACK I DON'T THINK I WOULD HAVE BEEN ABLE TO FORECAST YEARS AGO THAT THE CHINESE WOULD BE AS COMPETITIVE AS THEY ARE TODAY COMPARED TO THE AMERICANS. JOUMANNA: THAT'S A GOOD PLACE TO LEAVE IT. ALWAYS GOOD TO CHAT WITH YOU, AND ON SUCH AN IMPORTANT DATE FOR CHIPMAKERS AND AI. SUMANT WAHI, PORTFOLIO MANAGER AT MAN GROUP. NEXT, MEXICO AND THE EUROPEAN UNION TAKE ACTION TO MEET PRESIDENT TRUMP'S DEMANDS. THE LATEST ON GLOBAL TRADE AHEAD. THIS IS BLOOMBERG. JOUMANNA: WELCOME BACK. I'M JOUMANNA VERSACE IN DUBAI. MEXICO IS PLANNING TO RAISE TARIFFS ON IMPORTS FROM CHINA WHILE THE EUROPEAN UNION SEEKS TO FAST-TRACK LEGISLATION TO REMOVE TARIFFS ON U.S. GOODS. BOTH MOVES WILL SATISFY DEMANDS FROM THE UNITED STATES ON TRADE. LET'S BRING IN OUR GOVERNMENT EDITOR. MAYBE START WITH MEXICO. FOR A CHANGE IT'S NOT THE U.S. APPLYING TARIFFS. CHINA -- MEXICO LOOKING TO APPLY TARIFFS ON CHINESE IMPORTS. WHY? > > . A FEW REASONS FIRST THERE IS A DOMESTIC REASON. MEXICO IS TRYING TO PROTECT ITS ECONOMY FROM CHEAP CHINESE IMPORTS, TEXTILES TO AUTOMOBILES. THE GOVERNMENT IS ALSO LOOKING AT WAYS TO INCREASE REVENUE. THE OTHER THING IS ITS RELATIONSHIP WITH UNITED STATES. WHILE CHINA IS THE NUMBER TWO TRADE PARTNER FOR MEXICO, THE U.S. IS NUMBER ONE, AND THE GAP IS PRETTY BIG. IT'S LIKE FIVE TIMES BIGGER, TRADE WITH THE U.S., THEN IT IS WITH CHINA. PRESIDENT TRUMP HAS BEEN PRESSING NATIONS TO IMPOSE RESTRICTIONS ON CHINESE TRADE, TO INCREASE TARIFFS, TO INCREASE U.S. LEVERAGE AGAINST BEIJING. THIS IS SOMETHING MEXICO IS DOING THAT COULD BENEFIT THE TRUMP ADMINISTRATION. ALSO THE TRUMP ADMINISTRATION IS LEARNING ABOUT CHEAP CHINESE EXPORTS GOING INTO MEXICO AND MAKING THEIR WAY ACROSS THE BORDER INTO THE U.S. GEOPOLITICS AT PLAY, DOMESTIC CONSIDERATION FOR MEXICO, SOMETHING TRUMP HAS DONE WITH A LOT OF PARTNERS AND MEXICO IS TRY TO KEEP GOOD RELATIONS. THIS COULD BE A MOVE THAT HELPS AT HOME AND WITH THE U.S. JOUMANNA: LET ME ASK ABOUT THE EU AS WELL, LOOKING TO LOWER TARIFFS ON U.S. IMPORTS. . THAT WAS ONE OF THE DEMANDS PRESIDENT TRUMP STIPULATED AHEAD OF REDUCING THE AUTO TARIFFS TO 15%. IT LOOKS AS THOUGH THE EU ARE GIVING INTO THE U.S.'S DEMANDS HERE. JON: IT LOOKS LIKE THEY ARE GOING TO INVOKE SOMETHING WHICH HAS BEEN USED BEFORE. 2023, THE ANTI-CIRCUMVENTION MANAGER, MEASURE, WHICH WOULD ALLOW BRUSSELS TO RESTRICT EXPORTS TO CERTAIN COUNTRIES, WHICH WOULD PASS THEM TO RUSSIA IN VIOLATION OF SANCTIONS. THE EUROPEAN UNION DOESN'T LIKE TO DO THESE SORTS OF THINGS, WHICH THEY SAY AS VIOLATING EXTRA TERRITORIALITY. THIS IS A CHANGE, SOMETHING THAT'S UNDER CONSIDERATION. IT'S BEEN ON THE BOOKS FOR A FEW YEARS. THIS IS SOMETHING TRUMP HAS LOOK FOR, A WAY HE CAN INCREASE PRESSURE ON RUSSIA AS HE TRIES TO PRESS FORWARD WITH THE CEASE-FIRE TO END THE WAR BETWEEN RUSSIA AND UKRAINE. JOUMANNA: THANK YOU SO MUCH FOR THE LATEST, JOHN HERSKOVITZ. COMING UP, CHINA IS FINDING FRESH OPPORTUNITIES IN AFRICA WITH EXPORTS TO THE CONTINENT ON PACE TO TOP $200 BILLION FOR THE FIRST TIME. DETAILS NEXT. THIS IS BLOOMBERG. ♪ JOUMANNA: GOOD MORNING. THIS IS HORIZONS MIDDLE EAST & AFRICA. SLOWER GROWTH. AND DELIVERS A LACKLUSTER FORECAST AFTER TWO YEARS OF BOOMING AI SPENDING, SENDING SHARES LOWER. MEXICO PLANS TO RAISE TARIFFS ON CHINA AS PART OF ITS BUDGET PROPOSAL AFTER MONTHS OF PRESSURE FROM PRESIDENT TRUMP. OIL IS FALLING THIS MORNING DESPITE PETER NAVARRO STEPPING UP PRESSURE ON INDIA TO STOP BUYING RUSSIAN CRUDE. THERE IS THE RISK OF A SUPPLY GLUT. I'M JOUMANNA BERCETCHE IN DUBAI. S & P FUTURES DOWN EIGHT BASIS POINTS, NASDAQ DOWN 24 ON THE BACK OF THE RESULTS FROM NVIDIA. WEAKNESS IN AFTER-HOURS TRADE, DOWN 3% BUT OPTIONS MARKETS WERE PRICING IN A 6% MOVE EITHER WAY SO LESS THAN WHAT THE MARKET IMPLIED. THIS SUGGESTS DISAPPOINTMENT BUT LET'S SEE HOW THIS PLAYS OUT BECAUSE THERE ARE MANY ELEMENTS OF STRENGTH IN THOSE NVIDIA EARNINGS. U.S. DOLLAR SLIPPING A LITTLE, THIRD DAY OF DECLINES, DOWN 10 BASIS POINTS AND OIL LOSING GROUND, DOWN 0.8%, BRENT TRADING JUST SHY OF $68 WITH A FOCUS ON THE GLOBAL OUTLOOK, DEMAND OUTLOOK AND WHAT COULD HAPPEN WITH SUPPLY AND DEMAND IN THE COMING MONTHS. WE WILL SPEAK ABOUT THAT IN A FEW MOMENTS. LET'S STICK WITH THE TOP STORY, NVIDIA. TAKE A LISTEN TO OUR GUEST REACTING TO THE RESULTS. > > WHEN WE HAVE A BEAT, AND STOCKS, HOT STARTS LIKE NVIDIA STARTS TO ROLL OVER A LITTLE, THAT SUGGESTS TO A TECHNICAL ANALYST THAT EVERYONE WHO MIGHT OWN THE STOCK ALREADY DOES. WE ARE NOWHERE NEAR THERE YET. > > THE REASON THE STOCK HAS RECOUPED SOME OF THE LOSSES AND I THINK WILL RETAIN STRENGTH IS BECAUSE OF THE GUIDE FOR Q3. IT WAS VERY STRONG. IT IS ALL ABOUT Q3 AND IT IS BECAUSE BLACK WHILE AND BLACKWELL ULTRA ARE STARTING TO SHED. IF YOU KNOW THAT STORY YOU ARE NOT SELLING THE STOCK. > > > > THEY ARE GOOD AT SIGNALING TO THE MARKET THAT THIS COULD CONTINUE AND THAT HAS A $5 BILLION IMPACT NEXT QUARTER. $54 BILLION REPRESENTS A STRONG SHOWING WHICH MEANS THEY EXPECT HIGH RISK TRADERS TO PICK UP THE SLACK. JOUMANNA: SOME OF OUR GUEST REACTING TO NVIDIA RESULTS. THE REACTION IN ASIAN MARKETS, YVONNE MAN IS IN HONG KONG. > > THERE ARE SOME GOOD THINGS TO LOOK AT. ASIA IS TAKING IT IN STRIDE. THAT IS GOOD NEWS. PERHAPS THERE WEREN'T HUGE NEGATIVE SURPRISES BUT THEY TOOK OUT THE AGE 20 CHIP SALES TO CHINA AND THAT HAS MUDDIED THE OUTLOOK FOR THE COMPANIES. ASIA TO THE UPSIDE, HANG SENG DOING THE OPPOSITE, GIVEN WHAT WE SAW WITH MEITUAN. THE JGB AUCTION, THE TWO YOUR CAME OUT AT THE TOP OF THE HOUR, ONE OF THE WEAKEST IN TERMS OF DEMAND SINCE 2009 WHEN BOND TRADERS ARE NOT WILLING TO TOUCH THE BOND MARKETS THAT THEY ARE HOPING THE BOJ WILL HIKE RATES SOON. THE TWO YEAR YIELD, HIGHEST LEVELS SINCE 2008. THE BANK OF KOREA HOLDING RATES, WE TALKED ABOUT THE INTERVENTION THAT HAS BEEN HELPING TO LIMIT THE FALL OF THE CURRENCY. THAT HELPS WITH THE DOLLAR WEAKNESS. TAKING A LOOK AT WHAT IS MOVING, CHIP STOCKS, THE BIG TECH GIANTS LIKE TSMC REACTED NEGATIVELY TO NVIDIA. ON THE FLIPSIDE, YOU SEE SOME OF THESE HOMEGROWN CHIPMAKERS IN CHINA CONTINUING TO RALLY. THEY HAVE BECOME MARKET DARLINGS IN CHINA ONSHORE. THAT IS ON FIRE. SMIC UP 13%, CAMBER CONTACT AS WELL. THE PRICIEST STOCK, QUITE REMARKABLE AS WELL. MEITUAN TALKING ABOUT IRRATIONAL COMPETITION IN THE FOOD DELIVERY SPACE ENCROACHING ON THE MARKET SHARE THEY HAVE HAD TO DOMINATE. THAT SEEMS TO BE ERODING BY THE LIKES OF ALIBABA AND JD.COM AND ALIBABA REPORTS TOMORROW. WE HOPE TO SEE THE RESULTS. TO POINT TO ANY DIRECTION IN THE CHINESE EQUITY RALLY AND WHETHER IT CAN CONTINUE. JOUMANNA: BIG ONE TO WATCH OUT FOR IN EARNINGS, CHINESE EARNINGS. THANK YOU SO MUCH. LET'S GO TO COMMODITIES. OIL FALLING AS TRADERS LOOK PAST U.S. EFFORTS TO FORCE INDIA TO QUIT BUYING RUSSIAN CRUDE. PETER NAVARRO RAMPED UP PRESSURE, REPEATING ACCUSATIONS NEW DELHI IS FUNDING THE KREMLIN'S CAMPAIGN IN UKRAINE. > > EVERYBODY IN AMERICA LOSES BECAUSE OF WHAT INDIA IS DOING. CONSUMERS, BUSINESSES LOSE AND WORKERS LOSE BECAUSE INDIA'S HIGH TARIFFS COST US JOBS AND FACTORIES AND HIGHER WAGES AND THE TAXPAYERS LOSE BECAUSE WE HAVE TO FUND MODI'S FOR. -- WAR. JOUMANNA: JOINING US IS MARCUS GARVEY. POINTED COMMENTS FROM THE WHITE HOUSE TRADE ADVISOR LIKENING THE WAR IN YOU REIGN TO -- UKRAINE TO MODI'S WAR. AS FAR AS IT PERTAINS TO OIL MARKETS, DO YOU THINK OIL MARKETS ARE BEING TOO COMPLACENT ABOUT THE POSSIBILITY OF EXTRA SANCTIONS OR ECONOMIC SANCTIONS ON RUSSIA, RUSSIAN OIL, POTENTIAL DISRUPTION TO RUSSIAN OIL ON GLOBAL MARKETS? MARCUS: THAT IS A GOOD QUESTION. IT IS FAIR TO SAY THERE IS ALMOST NO RISK PREMIUM IN THE MARKETS SO IF YOU TALK ABOUT ASYMMETRY AROUND IF YOU HAD A DISRUPTION AND WITH THAT LEAD TO ASKEW IN THE PRICE RESPONSE, THERE IS LITTLE IF ANY RISK PREMIUM AT THE MOMENT. YOU CAN ARGUE THAT IS A RATIONAL POSITION FOR THE MARKET TO TAKE IN THE CONTEXT OF, WE HAVEN'T LOST ANY RUSSIAN BARRELS FROM THE MARKET TO DATE. LET'S SEE HOW THE SCENARIO WORKS. YOU SAW A REDUCTION IN INDIAN BUYING OF RUSSIAN CRUDE AND YOU MUST ASSUME THAT COULD RESHUFFLE TO FIND ANOTHER BUYER AND THE MATERIAL WOULD BE LOST IN THE MARKET. THAT COMES IN THE CONTEXT THAT YOU HAVE A GLOBAL SURPLUS OF 2 MILLION BARRELS PER DAY. SO YOU HAVE SLACK IN THE MARKET FOR RESHUFFLING TO TAKE PLACE. SO YES, LITTLE RISK PREMIUM AND THAT CREATES SKEW BUT I THINK THAT IS WHERE THE MARKET IS. JOUMANNA: THE 2 MILLION SURPLUS NUMBER STANDS OUT. I THINK IT IS LOFTY, ON THE LOFTIER SIDE OF ESTIMATES. WHAT DOES THAT TRANSLATE IN TERMS OF WHERE YOU FORECAST THE PRICE OF OIL TO GO BY THE END OF THE YEAR? ? MARCUS: AS WE GO INTO THE END OF THIS YEAR, LOOKING TO NEXT YEAR, YOU WILL NEED AT SOME POINT PRICES TO TRADE TOWARDS LEVELS THAT WOULD SEE NO GROWTH IN TERMS OF U.S. SHALE SUPPLY AND IN OUR VIEW ON A WTI BASIS, THAT IS PRICES GOING INTO THE MID-50'S IS WHAT YOU WOULD NEED TO ACHIEVE THAT. A KEY POINT OUR COLLEAGUES HAVE MADE, IF YOU LOOK AT THE EFFICIENCY GAINS ACHIEVED BY THE SHALE PRODUCERS, THAT HAS BROUGHT DOWN THE BREAKEVEN POINT AND LOWERED THE NUMBERS YOU WOULD NEED TO GET INTO A NO GROWTH SCENARIO FOR SHALE PRODUCTION. JOUMANNA: INTERESTING. I WILL TAKE A DIFFERENT TACK. YOU LOOK AT THE METALS MARKET CLOSELY. WHAT ARE YOU THINKING ON GOLD? WE HAVE A MASSIVE RUN-UP AT THE BEGINNING OF THE YEAR BUT THINGS HAVE STALLED AROUND THESE LEVELS. DO YOU EXPECT ANOTHER LEG UP, GIVEN THE RECENT UNCERTAINTY EMANATING ONCE AGAIN FROM THE TRUMP ADMINISTRATION, NOT LEAST AS IT PERTAINS TO FED INDEPENDENCE? MARCUS: I THINK IF YOU LOOK AT THE BACKDROP FOR GOLD, WHAT HAS BEEN NOTABLE OVER THE PAST THREE MONTHS IS A SERIES OF ADDITIONAL POTENTIALLY BULLISH DEVELOPMENTS. AND YET IT HAS BEEN RANGE BOUND, UNABLE TO BREAK OUT. THAT INDICATES ELEMENTS OF THE RALLY BEING LONG IN THE TOOTH, BUT THE FED INDEPENDENCE IS KEY IN TERMS OF WHETHER WE HAVE SEEN HIGHS ON THE BRIEF TOUCH OF 3500 OR IF YOU CAN TAKE ANOTHER LEG UP. WE WILL SEE HOW THE LEGAL AND POLITICAL PROCESS PLAYS OUT. IF GOVERNOR COOK WOULD REMAIN, YOU ARE ARGUING GOLD NEEDS TO FIND SOMETHING OR IT WILL BE RANGE BOUND AND PULLED TO THE BOTTOM END OF THE RANGE. IF GOVERNOR COOK LEAVES, YOU WOULD OPEN UP THE POSSIBILITY FOR TRUMP TO HAVE THE MAJORITY OF HIS APPOINTEES AMONG THE FED GOVERNORSHIP AND THEN WE RAISE QUESTIONS ABOUT WHAT HAPPENS WITH THE REGIONAL FED PRESIDENTS. THEN THE MARKET NEEDS TO PUT A DIFFERENT RISK PREMIUM INTO GOLD WITH REGARDS TO THE OUTLOOK OVER THE LONGER TERM OF U.S. MONETARY POLICY AND FEND -- FED INDEPENDENCE AND THAT WOULD BE BULLISH. JOUMANNA: CAN GOLD DO WELL IN AN ENVIRONMENT WHERE STOCKS CONTINUE TO MAKE RECORD HIGHS? MARCUS: IT DEPENDS ON WHAT THE CAUSATION IS. IF YOU LOOK AT GOLD'S CORRELATION WITH EQUITIES OVER TIME, THE CORRELATION ROUGHLY AVERAGES ZERO VERSUS THE S & P 500, PERIOD OF POSITIVE AND NEGATIVE CORRELATION SO IT COMES DOWN TO CAUSATION. IF STOCKS CONTINUE TO RALLY BECAUSE OF FED EASING, THAT EASING IS PROBABLY, POTENTIALLY EXCESSIVE IN THE CONTEXT OF THE UNDERLYING ECONOMIC CONDITIONS AND THE INFLATION BACKDROP. IT WOULD INCREASE LONG-RUN INFLATION EXPECTATIONS AND THEN YOU COULD ARGUE GOLD CAN RALLY IN THAT ENVIRONMENT EVEN IF EQUITIES CONTINUE TO PERFORM WHILE. JOUMANNA: MARCUS GARVEY, GREAT TO HAVE YOU WITH US. THANK YOU. SWITCHING TO THE REGION, TENSIONS FLARING AGAIN IN THE MIDDLE EAST. SYRIAN STATE MEDIA SAYS ISRAEL CARRIED OUT AIRSTRIKES IN THE OUTSKIRTS OF DAMASCUS AS EFFORTS TO EASE TENSION BETWEEN THE COUNTRIES SHOWED LITTLE PROGRESS. FOR MORE WE ARE JOINED BY DAN WILLIAMS. WALK US THROUGH WHAT HAPPENED OVERNIGHT AND THE FACT THAT THE AIRSTRIKES HAVE OCCURRED IN DAMASCUS. DAN: WHAT WE HAVE COMES FROM THE SYRIAN SIDE. THE ISRAELIS HAVE DECLINED TO COMMENT WITH THE EXCEPTION OF AN ENIGMATIC X POST SAYING ISRAEL'S MILITARY IS OPERATING IN ALL COMBAT ZONES AROUND THE CLOCK. FROM SYRIA, THERE WAS AN ISRAELI SERIES OF AIRSTRIKES IN A CROSSROADS TOWN SOUTH OF DAMASCUS FOLLOWED BY DROPPING, THE BRINGING IN OF ISRAELI GROUND TROOPS AS PART OF AN ATTEMPT TO WRAP UP IN OPERATION THAT MIGHT BE LINKED TO EAVESDROPPING DEVICES REPORTED TO BE SPOTTED BY SYRIAN SECURITY FORCES AND THE ISRAELIS APPARENTLY MOVED TO INTERCEPT. THEY ARE DISMANTLING AND EXAMINING. IT INVOLVES -- IT IS EVOLVING AND IT IS UNCLEAR FROM THE IS REALLY SIDE WHAT THE AIM WAS. THIS IS RISKY FOR A FRONT IT WAS QUIET SINCE BEFORE THE ASSAD REGIME IN DECEMBER, CLOSE TO IRAN AND EFFORTS BY ISRAEL TO FORGE AN ACCOMMODATION WITH THE NEW SYRIAN GOVERNMENT. JOUMANNA: WE HAVE TO SPEAK OF DEVELOPMENTS IN THE SUMMER WITH ISRAEL GETTING INVOLVED. AND WE KNOW U.S. BROKERED TALKS TOOK PLACE IN PARIS LAST MONTH BETWEEN SYRIAN OFFICIALS AND ISRAELI OFFICIALS. WHAT ARE THE LATEST DEVELOPMENTS, ESPECIALLY AIRSTRIKES IN THE LAST 24 HOURS, MEANING FOR PROGRESS ON THOSE POTENTIAL NEW ARRANGEMENTS BETWEEN ISRAEL AND SYRIA? DAN: IT IS HARD TO BELIEVE THIS INCIDENT WILL BE WELL REGARDED BY SYRIA. WE ARE HEARING THERE ARE SYRIAN CASUALTIES AND SOLDIERS KILLED AND WOUNDED IN THE ISRAELI OPERATION. YESTERDAY, A MEMBER OF ISRAEL'S SECURITY CABINET SAID ISRAEL WAS WORKING TO FORGE A DEAL WITH SYRIA THAT WOULD ACHIEVE LONG-TERM STABILITY AND SECURITY ALONG THE BORDER BETWEEN THE COUNTRIES. IT IS HARD TO KNOW WHAT TO MAKE OF IT. PRESUMABLY, THE ISRAELIS SAW IT AS HIGH-RISK, HIGH YIELD, SOMETHING NECESSARY DESPITE DIPLOMATIC EFFORTS. THE QUESTION IS HOW THE GOVERNMENT WILL RESPOND TO THIS. AND ALSO, WHETHER THE INTEREST IN DIPLOMATIC DEALS FOR ISRAEL OVERRIDES WHAT IT SAYS IS ITS INTEREST IN DEMILITARIZED INCOME AS IT PUT IT, SOUTHERN SYRIA AND MAKING SURE THE DRUZE, A SYRIAN MINORITY, ARE PROTECTED FROM SECTARIAN VIOLENCE. THERE ARE INTERESTS JOSTLING AGAINST ONE ANOTHER. HOW WILL DAMASCUS RESPOND? JOUMANNA: AND, THANK YOU SO MUCH. COMING UP, WE WILL WATCH OUT FOR EGYPT'S CENTRAL BANK DECISION, EXPECTED TO RESUME MONETARY EASING. DETAILS, NEXT. THIS IS BLOOMBERG. ♪ JOUMANNA: WELCOME BACK TO HORIZONS MIDDLE EAST & AFRICA. WE WILL BE WATCHING FOR EGYPT'S CENTRAL BANK DECISION. IT IS EXPECTED TO RESUME MONETARY EASING AFTER A PAUSE LAST MONTH. EGYPT HAS BEEN ON A MISSION TO TAMP DOWN IN ELATION THAT SURGED IN SEPTEMBER 2023 AS IT TRIES TO REVAMP ITS ECONOMY AFTER SECURING A BAILOUT LAST YEAR. WE ARE JOINED BY AN ECONOMICS DIRECTOR. THE INFLATION BACKDROP IS KEY BECAUSE WE WENT FROM AS HIGH AS 38% IN 2023 TO THE LATEST FROM A 13.9% IN JULY 2025. DOES THAT OPEN THE DOOR TO FURTHER EASING? > > I THINK SO. WE ARE LOOKING FOR 100 BASIS POINT REDUCTION IN THE RATE, WHICH LARGELY THE MARKET HAS BEEN EXPECTING THAT GIVEN THE PAUSE UNEXPECTEDLY THE LAST TIME. I THINK THE CIRCUMSTANCES ARE RIGHT FOR THE CENTRAL BANK TO GO AHEAD WITH THE RATE CUT. YOU HAVE HAD FALLING INFLATION, BETTER LIQUIDITY IN THE MARKET, FX LIQUIDITY, CERTAIN NUMBERS COMING OUT ON THE MACRO SIDE THAT ARE PROMISING. ALL IN ALL, I THINK THERE IS LEVERAGE FOR THE CENTRAL BANK TO RESUME ITS REDUCTION IN RATES. WE EXPECT THIS TO CONTINUE. WE ARE LOOKING FOR MAYBE RATES TO COME DOWN TO 20, 20 1% BY THE END OF THE YEAR. THAT IS DEPENDING ON VARIOUS FACTORS INCLUDING WHAT HAPPENS ON THE GLOBAL LEVEL, IF YOU HAVE A BETTER SITUATION WITH THE FED, THE ECB, EVERYONE. JOUMANNA: IF THE FED STARTS TO RESUME THEIR OWN CUTTING CYCLE AND GO FOR A CUT IN SEPTEMBER, WHAT KIND OF EFFECT WOULD THAT HAVE ON EGYPT? AATHIRA: EGYPT IS NOT PEGGED TO THE DOLLAR LIKE THE JCC BUT THERE WOULD BE BENEFITS FOR THEM. YOU WOULD BE LOOKING AT BETTER EXTERNAL FINANCING RATES. THEY HAVE A LOT OF DEBT SERVICING. SO THAT WOULD BECOME LOWER, AS WELL. IN GENERAL, THEY WOULD BE IN A COMPETITIVE BASIS ONCE THE FED STARTS CUTTING RATES. SO IT WOULD WORK TO THE BENEFIT OF EGYPT. IN A WAY, THE FED CUT WOULD BE BENEFICIAL FOR THE EGYPTIAN ECONOMY. JOUMANNA: THE EGYPTIAN ECONOMY HAS HAD MULTIPLE PRONGS AT PLAY, CENTRAL BANK AND OF COURSE YOU HAVE THE REFORM PROCESS. YOU HAVE THE FLEXIBILITY OF THE CURRENCY BUT THAT GOES HAND-IN-HAND WITH, EGYPT ARE IN AND IMF PROGRAM AND RECEIVED A BAILOUT. AND FINANCIAL ASSISTANCE AND INVESTMENT. HOW IS THE REFORM GOING? AATHIRA: THEY ARE TAKING IT SLOW. IT IS A GRADUAL APPROACH. WHAT YOU HAVE SEEN IS SOME BENEFICIAL EFFORT IN TERMS OF THE FISCAL REFORMS, BASICALLY ON THE EFFICIENCY OF TAX COLLECTION AND SO ON. YOU ARE SEEING THE RESULTS AS WELL AND THE TAX REVENUES HIKING UP. BUT THERE ARE OTHER PARTS OF THE REFORMS WHICH HAVE BEEN QUITE SLOW IN TERMS OF THE STATE OWNED ASSETS, PRIVATIZATION THAT HAS TAKEN ITS TIME. IT HAS BEEN VERY SLOW, BECAUSE YOU HEAR THESE STATEMENTS SAYING IT WILL HAPPEN NEXT QUARTER OR BY THE END OF THE YEAR BUT YOU DON'T REALLY SEE THEM COME TRUE AT THE RATE YOU EXPECT. THAT IS ONE OF THE DRAWBACKS THAT YOU HAVE SEEN IN TERMS OF WHERE IMF EXPECTS REFORMS TO GO, BUT IT HASN'T HAPPENED IN PACE WITH WHAT THEY EXPECT. JOUMANNA: IS THAT THE BUSY -- THE BIGGEST RISK TO THE EGYPTIAN OUTLOOK? AATHIRA: FOR NOW THEY ARE DOING WELL. WE HAVE TO CONSIDER IT ON WHAT WAS HAPPENING A FEW YEARS BACK. FROM THAT DISMAL PICTURE, YOU ARE SEEING SURGING TOURISM REVENUE, MANUFACTURING AT RECORD HIGHS IF YOU LOOK AT THE LATEST TREND IN INDUSTRIAL PRODUCTION. NON-OIL EXPORTS ARE INCREASING AS WELL. IN GENERAL, THERE SEEMS TO BE A LEVEL OF CONFIDENCE THAT EXISTS THAT WASN'T THERE BEFORE. SO ON THAT FRONT, EGYPT IS IN A BETTER PLACE AND THE REVIEW IS SCHEDULED TO HAVE, THEY HAVE COMBINED THE NEXT TWO REVIEWS TO HAPPEN LATER THIS YEAR. YOU HAVE THE CENTRAL BANK GOVERNMENT THAT IS ALSO A POSITIVE SIGN. JOUMANNA: LET ME BROADEN IT OUT AND ASK ABOUT THE REGION AS A WHOLE. IT I CAN'T BELIEVE WE ARE IN SEPTEMBER. HOW HAS THE REGION WEATHERED THE UNCERTAINTIES AROUND GLOBAL TRADE, TARIFFS? THIS REGION WAS SOMEWHAT SPARED FROM HIGHER LEVELS OF RECIPROCAL TARIFFS BUT NOT IMMUNE TO A POTENTIAL GLOBAL SLOWDOWN. AATHIRA: I THINK THE REGION HAS DONE QUITE WELL. THEY HAVE TAKEN THE RIGHT STEPS IN TERMS OF, THE U.S. IS A STRONG PARTNER IF YOU LOOK AT THE HISTORY AND EVERYTHING THAT HAS BEEN HAPPENING. BUT THEY ARE KEEN TO OPEN UP TO THE NEW PARTS OF THE WORLD THAT ARE EMERGING, SO YOU HAVE LINKS WITH CHINA AND INDIA AND ALL OF THOSE THINGS ARE HAPPENING IN PARALLEL WITH EXISTING RELATIONS WITH THE U.S. AND THE REST OF THE WORLD. THE FOCUS HAS REALLY BEEN ON ENHANCING THE NON-OIL SECTOR, SO YOU LOOK AT THE NON-OIL GROWTH RATES IN ANY OF THE GCC COUNTRIES, THEY ARE STRONG AND BECOMING MORE RESILIENT. BEING NOT JUST DEPENDENT ON HOW OIL PRICES ARE GOING TO AFFECT CRUDE, BUT WHAT OTHER SECTORS CAN WE INVEST IN, AND WHAT ARE THE THINGS WE NEED TO PUT IN PLACE SO WHEN FIRMS LOCATE HERE, THEY WILL BOOST THE NONOIL SECTOR GROWTH. JOUMANNA: SO FAR IT SEEMS TO BE WORKING. THANK YOU FOR COMING ON THE SHOW, AATHIRA. , NVIDIA SLIDES AS WE HAVE MORE DETAILS NEXT. THIS IS BLOOMBERG. JOUMANNA: WELCOME BACK TO HORIZONS MIDDLE EAST & AFRICA. THERE IS ONE STOCK EVERYONE HAS BEEN TALKING ABOUT, NVIDIA. LET'S RUN THROUGH WHAT WE GOT YESTERDAY. THEY ISSUED A TEPID FORECAST FOR THE CURRENT PERIOD, FUELING CONCERNS AI SPENDING IS SLOWING. THEY EXPECT SALES OF ABOUT $54 BILLION IN THE THIRD QUARTER EXCLUDING DATACENTER REVENUE FROM CHINA, WHICH MISSED THE MOST OPTIMISTIC ESTIMATES. WE ARE SEEING A BIT OF A NEGATIVE AFTER HOURS REACTION ON NVIDIA STOCK BUT AT THE SAME TIME, THEY BEAT ON TOP LINE AND BOTTOM LINE AND THEY SAID THEY HAD NOT SOLD ONE CHIP TO CHINA IN THE PRIOR QUARTER. NONE OF THOSE H-20 CHIPS HAVE BEEN SOLD THEIR. THERE HAS BEEN PROGRESS WITH THE U.S. VIS-A-VIS ALLOWING THEM TO SELL THIS CHIPS IN CHINA SO THERE COULD BE SIGNIFICANT REVENUE UPSIDES COMING FROM THE CHINESE MARKET IN COMING QUARTERS. THE DATA CENTER MASS IS SOMETHING ANALYSTS HAVE BEEN WATCHING FOR. THIS IS THE FOCUS FOR NVIDIA, HOW THAT TRANSLATES TO BROADER EQUITY MARKETS, SLIGHT DIP FOR S & P ENDS -- AND THE NASDAQ SLIGHTLY IN THE RED AS WE THINK ABOUT HOW THIS WILL PLAY OUT IN EUROPEAN TRADE. EUROPEAN MARKETS ON THE GREEN, KEEP AN EYE ON FRENCH DEVELOPMENTS AS WE THINK ABOUT THE CONFIDENCE VOTE ON SEPTEMBER 8. STAY WITH US FOR DAYBREAK EUROPE. THIS IS BLOOMBERG. ♪

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Horizons Middle East & Africa 8/28/2025

Horizons Middle East & Africa is your daily spotlight on one of the world's fastest-growing regions. Live from Dubai, we bring you the latest global markets and analysis, plus news-making interviews, with a special focus on MEA. All that and more, as you head to the office in the Gulf, pause for lunch in Hong Kong, or start your day in London or Johannesburg. (Source: Bloomberg)

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"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
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