tom: good morning, this is bloomberg daybreak: europe. these are the stories that set your agenda. stocks rally after nvidia reports results that ask key -- exceed sky high expectations as the ai boom rolls on. the nikkei 225 hits a record high, finally surpassing the peak breached back in 1989. fed minute officials are wary of cutting rates too quickly. mercedes announces a 3 billion euro buyback. the automakers full earnings in a moment. i speak to the ceo after the mining giant defies a downturn among rivals. we check in on nvidia after hours. it is the stock of the moment. it's the stock of the week, arguably, the stock of the year. the ceo saying it's a tipping point in terms of demand for ai.

a solid beat in the most recent quarter. it was the outlook and optimism flag with expectations of revenues for the current quarter coming in at 24 billion u.s. dollars. the buyer quarter, a beat as well, coming in above $22 billion from revenues. again, above the estimates. think about the data part of the story, which is the main driver of revenues and profits for nvidia. revenues for that segment of the business, 18 billion u.s. dollars. almost quadrupling from the year on your number. in the revenues of that $22 billion number i flag for the most recent quarter, tripling year on year. after hours, 10% upside for nvidia at 735, but the read across global markets is pronounced, we are risk on today, and much of that is down to nvidia. that slipped the board and have a look at the futures. european stocks are pointing higher, u.s. stocks are pointing

higher. from all of this enthusiasm's -- enthusiasm. you could look at the caution coming through from the fomc statement for the month of january. caution about the prospect of rate cuts because it's about ai enthusiasm today. you are seeing softer dollar, yields lower in equities up. european futures at eight tenths of a percent. ftse 100 is up. s&p back above the 5000 level. nasdaq futures looking at a roaring session, looking to gains of 1.4%. let's look across asset. i mentioned what's happening as investors look at the fomc minutes. the caution that came through, u.s. two-year is down to basis points -- to basis points. we look at the inflation data out of europe. cpi number, important for the ecb. 108 on euro-dollar. much of that is down to the softness coming through for the

u.s. dollar. $83 a barrel. tightness continues in terms of the output. that puts a floor under the oil markets list, still above $83 a barrel. iron ore down. continuing concern about demand out of china. we will speak to the ceo of fortescue when it comes to their more than 80% exposure to the chinese market. that will be a conversation worth tuning in for. iron ore prices are down. let's get to the story around nvidia. searching post market as we discussed after delivering another eye-popping sales forecast that beat estimates and consensus. speaking on the earnings, the ceo says generative ai has now hit a tipping point. >> we guide one quarter at a time, fundamentally, the conditions are excellent for continued growth.

calendar 2024 tech calendar 2020 five and beyond. let me tell you why. we are at the beginning of two industrywide transitions. tom: let's get analysis with alex webb. a big day as we passed the results. they knock it out of the park again. alex: we look at companies that have to issue profit warnings because they will not meet their targets. they think the targets are not risk what they put it on. on the upside, -- that does pose a risk because investors will expect they beat the targets. they beat on every rhetoric and way above what anyone was expecting. particularly if we look towards the next quarter, the quarter we are in now, the forecast they gave was $2 billion, more than 10% above what the market was expecting. the demand for what they are making continues to be strong.

there have been whispers that there is a flow between supply and demand. is there enough supply to meet demand. equally the restrictions on supply mean they could increase prices. there is concern that may be supply increases and they cannot increase their prices. it does seem to concern any soon. tom: the profitability is there, the margin strength is there for nvidia. they have been there in china boost that supply. talk us through the different units, the datacenter standing out in terms of the strength there. in the competitive risks. not in the here and now, maybe in the future. alex: it comes down to the main businesses, the datacenter in the gaming. it's the gaming accelerators that have been repurposed for ai. that's where the background is. there was expectation there might be a dip in the gaming business. there was an, it actually

exceeded expectations on top of the datacenter business that has gone from $3 billion in 2022 15 or more billion dollars last year and it's in the 20 range. what we are seeing when we think about this competitive threat, you have their customers, the microsoft's and amazon's of the world. microsoft is working on its own in-house solutions. it seems like it doesn't have that ready yet. we hear whispers about what softbank might be up to. the impossibility of $100 billion competitor. what nvidia spent 20, 30 years doing in a few years. if they view, the one thing is the ability to send it to china. at least the bleeding edge tech because of export controls. that might be somewhere if softbank comes to the table they would do something indicative.

tom: they had mid-single digit revenues from the chinese market. they expected to remain the same in the quarters ahead. what are the other soup -- one of the other superlatives is the revenue print. 22 billion or so, which is more than they were getting just in a single year, just as recently as 2021 in a single year. writing down the details on the nvidia story. alex will be across our programming throughout the day. alex, thank you with the importance of the nvidia story. appetizing to some extent. there is catalyst for nvidia playing out across the asian markets this morning. at this point, let's bring in bloomberg's aperal hong in singapore. -- avril hong in singapore. avril: nvidia effect is rippling through the asia-pacific but japan is also having a big moment. today is the day with the benchmark dk has just said a

fresh record high, this is a closing high. we haven't seen this since 1989. this is a market that has been trying to unlock shareholder value. it is an economy that has been exiting deflation and finally you are seeing it set the fresh record. the nvidia affect is lifting ai chip stocks in helping the nikkei. to party like it's 1989. our analyst at mliv point out that it might be the next level to watch. if you look at the futures market, there is bullish momentum. don't forget, traders seem to be buying into the narrative that there is corporate governance reforms that are helping to unlock their shareholder value. there's also higher dividend at play. let's flip the board and take a look at the chinese stock market. the csi 300 has a race to losses for the year. it's all stock for an eighth

straight positive session. this is the longest winning streak since july 2020, and this is on the back of chinese authorities providing support for the financial markets through controversial measures, including a net selling band for institutional investors at the start of each trading day, as well as quantitative trading. let's take a look at the japanese currency that's in focus because of the doj governor in parliament saying japan is experiencing inflation. he sees an economic cycle and that seems to be strengthening, this would help the central bank take its foot off the stimulus petal and normalize policy. we are seeing support for the japanese currency today strengthening against the greenback. that being said, it's sitting above the 150 level. it seems that on this pair, the

big dynamic is more about the federal reserve. tom: and we get more on the fed as well in the next couple of seconds. as you say, flagging the 40,000 level is the next level to look for when it comes to the rally back above that record high. aperal hong with a look at the asian markets. let's get to the fed story and australia most officials are more worried about cutting interest rates too soon than keeping them high for too long. bloomberg's jill disis joins us now. walk us through what stood out in terms of those fed minutes to you and to the markets. jill: all we are seeing is that we are not getting too much clarity beyond when the first great cut is coming and it's not coming anytime soon. most of these policymakers suggested they are worried about moving too quickly on rate cuts.

there's only a couple that were worried about with the long-term impacts would be too high for too long would ultimately be. what that tells us is at this stage it does seem like we won't get anything until we get a bit more data that makes the fed comfortable with moving into that trajectory of cutting rates. they want to see what inflation looks like and what labor market looks like. they want to make sure they are in a good position to start cutting rates when it eventually happens. the dot plot has three rate cuts priced in. we will see when we start to pick that up. at this point, it does seem like they are hesitant on making any kind of moves too quickly, too soon. tom: that hesitancy came through loud and clear. three dot plots or three cuts expected, 75 basis points, markets have been coming more in line with that few, but they are

still expecting more aggressive action than the dot plot signal. is that cap likely to close? what is expectation on that front? jill: i don't know the traders have too much incentive to move more in line with the fed data. they certainly see the fed reaching those three cuts on the dot plot. they are also pricing in a 40% chance of an additional cut. i think from the markets perspective here, you've got this idea that, historically, the fed has ultimately, when the economy has soured, they move quickly to cut rates, we seen the inverse of that a couple of years ago with that very rapid move into an aggressive rate hiking cycle. it doesn't get traders to try to become to conservative. at this point they are comfortable saying we think that once his cutting cycles starts,

it's going to continue quite rapidly. i don't really know what we see for incredibly strong inflation data that we will see too much of a move. anything will happen and just like with what the fed is saying in terms of being data dependent, i think traders are keen to see what those data points look like. how high will cpi remain. we saw higher-than-expected inflation data in january. we will see if those trends in the pressure continues before we see meaningful movement. tom: the session down around two basis points. jill disis, thank you fomc minutes, what it tells us about the fed's thinking. coming up, we switch focus. the israeli minister says there are early signs of progress on a hostage deal with hamas, we have the details on that story next. plus, we will have an exclusive

conversation with the ceo of australia's mining company after reported a profit jump of 41%. the conversation at 6:30 a.m. london time. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. checking on the ending story with the redhead crossing the terminal on nestle. coming in with 2024 organic revenue forecast of it and increase of 4%. that's below the estimates. the estimates had seen an increase of close to 5%, 4.91% but nestle is seeing 2024 cannick revenue of 4%. we know pricing has been important for the food maker. the pricing came in at an

increase of 7.5% above estimates but the internal growth within nestle was a contraction of 0.3%. it was the price increases that had done much of the work here. again, they do expect that the revenues are going to come in a little lower than the estimates for the four year -- full-year. dividend per share coming in at three swiss francs per share. the estimates had been for 3.1 swiss franc's. a little bit of disappointment for the dividend per share. that's a forecast for 2024 that will be consequential. keep across the story throughout and do a deep dive in the second half. u.k. government will restrict some arms sales to israel. that's if they launch an offensive on the palestinian city an obstruction -- trucks from entering gaza. a vote triggering chaos in the house of commons with conservative lawmakers risk -- refusing to cast their vote. that was after his shift by the

parliament speaker that was seen by some as favoring the opposition labour party. ukraine is near an agreement with the international monetary fund of the imf to get a $900 million disbursement from its $15.6 billion loan. sources say kyiv could seal the deal with the imf as soon as today. this would boost the nation's war chest against russia with aims from the u.s. still held up in congress. the israeli minister says there are early signs of progress on a hostage deal with hamas. reiterated that if no deal is struck, israel will keep fighting in gaza into the holy month of ramadan. for more on this, let's bring in paul wallace. was he being overly optimistic in terms of his interpretation of this potential deal for the hostages, how likely is a cease fire at this point, as we say, the clock ticks down to that

important holiday. >> i think his comments were interesting. israeli officials have been very cautious about implying any progress on the hostages for a cease fire talk with hamas that are being mediated by the u.s. and egyptians, and others. i think what his comments might mean is that hamas is showing signs that it's willing to change its demands. it's demands of been called delusional more than once by prime minister benjamin netanyahu. hamas wanted israel to paul all its forces out of gaza within 90 days of a true starting. that is something israel would not contemplate at all. from what is said, maybe it is the case that hamas is rethinking that. the israeli thinking is that hamas wants a cease fire desperately. that it wants to do whatever it

can to stop the fighting and perhaps to regroup. i think that's the kind of larger, of his -- context of is,. there is still a lot that hamas and israel have to decide on before we get any truce or long-lasting cease fire. tom: paul wallace with the update from the middle east. plenty more is coming up. we will have more of a discussion in deep dive on the semiconductor space. that is next. this is bloomberg. ♪

tom:: welcome back, let's get our weekly deep dive into the state of globalization with the market focused on global earnings from nvidia this morning. in terms of trade, we are

zooming in on semiconductors and how the ai revolution is reshaping globalization. i am now joined by that share of high-tech geopolitics program at the institution. thank you very much for joining us this morning. as we reflect on those blowout earnings from nvidia and what it tells us about the demand, the insatiable demand for these ai chips, what is the top level view from you, given all your expertise, in terms of how generative ai, how this obsession right now around large language models that demand is reshaping supply chains, with the particular focus on semiconductors? >> there are possibly two kinds of movements that are happening. as generative ai becomes more popular, services supply chains will become lengthy in the manufacturing supply chains will become shorter because you will

want to do more things at home but you can't uproot a lot of services to a lot of countries. the other thing that is happening is because generative ai is an important thing from a national security point of view. there are some de-risking measures that have been taking place. leading edge ai chips aren't being allowed to be given to china by the u.s. and its allies. so this is something that will happen in the years to come. the underlying factor, as you already discussed earlier, there is no real alternative to use at this point in time, which are used for training in large language models. as long as this supply grant continues, you will have a lot of focus on ai chips and how to get them as soon as possible. so the alternatives, processing units are not really into the

market, it's the only one that is really market ready. until that continues, there will be a huge demand/supply gap, that will drive a lot of the earnings as well. tom: there's a lot to unpack. i want to start with the and decoupling. we talk about de-risking and decoupling we turn to china in the u.s.. does that prove a catalyst ultimately, or does it slow down the development of this technology. is it a hindrance or a catalyst? >> it is a hindrance to the extent that its first citizens and to governments. because the reason why the semiconductor industry work this well is not just a technical revolution but the economical resolution based on specialization. they do everything on semiconductors, each company

specializes in one small segment , does it well and then passes it over to the next model. so all of this works really well, it is a very efficient supply chain. in geopolitical alignment playing the role and how this globalization works, there will be an impact on the consumers, there will be an impact on citizens as well. you will see a recent imf estimate that says if the start of de-risking continues, the cost at the global level might range from 2% to 70%. that is a significant cost. in the short term, you see that because governments are now so obsessed about technology policies, technologies impact on national security, you might see some disproportionate technical breakthroughs happening because

so much subsidies, focus and investment happening in these areas. tom: i have 101 other questions but we run out of time. analysis on an important day as we reflect on those jobs from nvidia. what they tell us about the man ai. but as you say, within the context of how globalization around semiconductors and how this revolution is reshaping that picture. really smart analysis. we will get you back. thank you for your time. that is the chairperson of the high-tech geopolitics program at the institution. i'm going to speak to the ceo in a. switching focus to the mining sector and iron ore after that company reports a surge in profit. what is their view on chinese demand. that is up next. this is bloomberg. ♪

tom: good morning, this is bloomberg daybreak: europe, i'm tom mackenzie in london, these are the stories that set your agenda. stocks rally after nvidia reports results that exceed sky high expectations as the ai boom rolls on. in japan, the nikkei 225 closes at a record high finally surpassing the peak reached back in 1989. fed minutes show officials are wary of cutting rates too quickly. plus, mercedes announces a 3 billion euro buyback. the automakers full earnings are dropping right now. nestle forecasting slower sales growth this year. we will break down those numbers for you. let's bring you the mercedes numbers right now, and in terms of what we are seeing, adjusted ros, 10% to 12%. the estimates had been for

11.3%. the top end of that guidance coming in higher than the estimates for mercedes in terms of their expectations for the full year of 2024. they see lower returns this year and the global economy is slowing. the impact is being felt in terms of what we saw for the fourth quarter sales coming in above the estimates for mercedes and the fourth quarter, 40.3 billion euros, the estimates have been for just shy of 39 billion euros. again, we will reflect on the fact that they have been through on the share buyback. a theme amongst europe's automaker. coming in below the estimates now, significantly below the estimates for the fourth quarter, shive 3 billion euros. estimates have been for 4.6 million euros, so a miss their unadjusted. it is the fourth quarter number in terms of sales, 40.26 above

the estimates but it's the prospect of lower returns this year as the global economy slows. we know the ev question is challenging as demand for electric vehicles slows in europe and the u.s. we will speak with the mercedes-benz ceo at around 7:00 a.m.. later this morning we break down the view. the outlook in terms of the ev question and demand out of china just after 8:00 a.m. u.k. time. to another story but on the earnings front all right -- away from the automaker and what's happening for the telecoms space. over in spain, bringing the lines of for you. the one that stood out, the fourth net loss. net loss coming in at 2.1 5 billion euros. the expectation was that they would lose just shy of a hundred million euros. 777 million euros. coming in much higher. revenues also belittle -- below

the estimates for the fourth quarter. three pin 3 billion euros. slightly higher. 3.3 billion euros of 3.2 5 billion. that's a quick check on telecom. does telefonica. let's get back to the focus on nvidia. after hours on the back of another beat for the most recent quarter. 22 billion euros. the forecast for this corner -- current quarter of 24 billion euros. upside with after-hours trading, a gain of 10% for that stock. that is rippling through the optimism we see on this risk on day pronounce across the global equities. nasdaq futures pointed solidly higher. let's flip the board and reflect on how this is feeding into the picture on a day that is expected to be strong. european stocks looking to gain. ftse 100 futures looking to gain. s&p futures back above the 5000 feature. here's the nvidia story playing

out strongly for the nasdaq with again of 1.6% at the open. 70,809. let's look cross asset. we have the fed minutes. it was a caution coming through from fed officials around when to cut. they are not seeing enough evidence and data to convince them the time is now. there's caution around the next move. 4.64 has dipped to basis points off the front end. dollar gaining 2/10 of a percent. dollar softness is a part of what we see in the euro strength. $83 a barrel. rent up. iron ore as we think about our next interview up at 119. let's get to that earnings story. posting a profit increase of 41% year on year, beating estimates. bucking the trend among the world's biggest iron ore producers of earnings. i'm joined by fortescue's ceo.

live at the side of the companies new iron ore project. first outside australia. that in itself interesting. let's start with the top line on these results. very positive when it comes to the most recent quarter. how does that set you up for the quarters ahead. what are you seeing in terms of demand for your key iron ore product? >> it's an absolute privilege to be here talking about the results we have just announced today. of 36% year on year. 3.3 billion up, 41%. great first half underpinned by exceptionally strong production performance. we had a record december, setting us up extremely well for h2. tom: are the risk to the upside or to the downside at this point? >> we maintain a guidance of 192

to 197 year on year increase from last year. in true fortescue fashion, we stretch ourselves every year and continue to do so. tom: iron ore pricing was resilient last year. iron ore down 6%. a lot has come down to the concern about china, the real estate market, how do you see prices evolving through this year? >> every year we see short-term volatility, which we see. i don't read too much into the 6% that you mentioned. overall, it is extremely robust being on the ground recently, very surprised about the automotive industry as the chinese economy is diversifying away from the traditional property sectors, so we think that the back row is extremely strong for us and our product

portfolio really caters for steel margins at all level. we have our highest grade sector with iron bridge. we are here evaluating the potential of a high-grade iron ore source. if we can get this project up, we will see it come into the portfolio toward the end of the decade. which bodes well for the iron market that we see maturing. tom: to be clear, you are not overly concerned about what you see were china? do you think china turns around, a lot of money has been put to play, does the policy response work? do you see china revolving -- reviving its economy and the second half of this year? >> i miss the first part of that question if i could summarize how we charged a position with continued strength.

as i said, our product portfolio is unique in the sense with our combined lois industry, we are fairly -- very resilient for any market swings. as i said, we see continued support in the fundamentals i very strong. the advent of the tsunami hasn't really materialized at this stage. again, that's another factor in robust support. tom: the dividend up 44% on the year. what is your lone star when you are thinking about striking that balance between returning shareholders and continuing to invest in the renewable space that we know is so important for you and the team at fortescue? >> underpinning our trajectories is a fairly fiscal discipline. it will remain unchanged moving into the future. we feel that that is more than comfortable to balance the

decarbonization spin. we have zero for scope wanted into by the end of this decade and we are absolutely on track to achieve that. this last year we have released products like electric truck, electric excavator and a mobile hydrogen power unit which will see off good solutions for electrification. tom: we have seen partnerships in the last month or so, some of your competitors partnering with bluescope for low carbon steel. is this a star for more partnerships to come? would you look to partner with other producers in australia? >> we think the bluescope partnership is an excellent move. we announced our move into green iron already last quarter. the announcement of a $50 million commercial in the pearl -- and the pilgrim, the first of

its kind. we will see it being the first on the planet at the end of calendar year 2025. again, that provides that product support, market support into the future, showing the world that greenline is a possibility utilizing hydrogen and not carbon. but absolutely open to more partnerships, we have a number of partnerships underway and we think it's key into the future. tom: what is the demand picture for iron ore looking like in southeast asia? >> india is the one area which we have seen higher than planned steel growth, including, in addition to that, we have seen the u.s. come on strong and also into the european sector. another region we are interested in the project here in africa

catering to the atlantic market as it matures. we feel with china's robust support, the u.s. growing, india coming out of the blocks and europe making a comeback, we believe we are exceptionally well positioned. tom: you've lost a lot of talent in recent months with executives leading -- leaving. how you retain talent at the business? >> we have a very mature 20-year-old metals business, we really haven't seen much turnover at all. the other side is an exceptionally well-funded starter. you are expected to see turnover in all levels of the business as we established the market and establish our products to take over. but we are working exceptionally

well who heads up our group functions. i think we are on a stable platform now moving forward. tom: fortescue ceo joining us. looking to expand the footprint in that market with the potential iron ore net. let's check back into what's happening with japan, a historic day because you're getting back above those 1989 levels. a fresh record for the first time in three decades for japanese stocks. that's the foreign flow. a lot of that has been motivated by asset managers pivoting from china to japan. yes, there's a corporate government story, the yen story, and then there's the question of an economy that is out of its deflationary funk. in terms of size and scope. japanese markets, the nikkei is up 16% year to date. it's up 44% over the last 12

months. 34 years ago the japanese stocks , more than the u.s., when it comes to questions about valuation, here's something worth reflecting on. even after this rally, 37% of nikkei members are trading below their book value. 37% compares to 3% in the u.s. on the s&p. the strength coming through on the japanese market, historic day is a breakthrough that record for the first time since 1989. the world's biggest food company digging into the earnings from nestle. that is next. this is bloomberg. ♪

tom: welcome back, happy thursday. let's get more on their earnings story at the moment. getting all of the intention,

info -- attention, nvidia shares jumping. as the company smashed forecasts for the current quarter. the ceo says generative ai has hit a tipping point. let's get more analysis from bloomberg's alex webb who follows all of this. alex, the top lines coming out to you really stood out from these earnings, another beat from nvidia. >> i found the forecast for the quarter we are in right now where we're at the end of april. that was $2 billion higher than the market was expecting in the market was looking for $21.9 billion in revenue, forecasting 24 billion plus or -2%. that is a big beat on that level. there has always been a little bit of concern since they started this for how long they can contain it. the ceo expects it to continue through 2025. that has given a certain amount of reassurance to investors

because they only forecast the upcoming quarter. they did not forecast the full fiscal year. that is reassurance investors wanted. tom: that's part of it, but he thinks this will continue through 2025. what else are you looking for, what are the other things to look for in terms of calendar event in terms of the evolution of this business? >> one of the reasons they might continue this is because they are not stopping innovating. they're coming out with new projects. the p100 is the new lineup they will have. the h 100 is at the top of the range offering, frankly, having that meaning they are setting it. it seems that the customers are taking anything they could get. you can hear some companies talk about the fact that they manage to get a lock on supply from nvidia as a real boost to their business.

we are still seeing google and amazon talking about increasing capex. what this p100 chip will do will label them to get a high. as supply becomes more readily available, there has become concerned it produces profitability because they're able to drop increasing high prices, having a new product would presumably boost that capability. tom: breaking down the nvidia results for us and looking out what could be in the pipeline for that essential company within this generative ai revolution. let's get to another story, switching focus to energy. the spanish energy coming through with a net income miss on estimates for the fourth quarter. net income at 383 million as the estimates have been close to one billion euros. sizable miss in terms of net income for the fourth quarter. you have to wonder to what extent investors will be swayed.

the increase of the dividend by 29 percentages short of one euro per share. that's what's coming across increasing the dividend by close to 30% after a miss in the fourth quarter. to the earnings story around the world's biggest food company reporting results in forecasting slower sales growth this year. nestle saying it's easing off on price increases and focusing on encouraging consumers to buy more. joining me now to break down the numbers is our bloomberg correspondent. what do you make of the results coming through from nestle? >> i think nestle, for me, it's a bit of a mixed bag. as you were saying, they forecast slower growth. for this year, they are expecting 4% growth. that's contrary to four point 9% increase at the market was expecting. that's going to be a bad one. one of the things that we were talking about really heavily, it

was on every analysts note going into the earning, how will they be in the volume mix. what you seen is, inflation was a big thing, the big food companies at the lower their prices to increase their pricing to make up for the higher input costs cuts that they see. so volumes were a bit on the backside. we saw with unilever that they were finally able to come back and grow by volume. they were selling more stuff and we were expecting to see wet nestle would do on that front, for the first time in a year-and-a-half, last quarter, they were able to increase their internal rate of growth, a.k.a., they sold more stuff. that is a good thing for them and it is the thing that all analysts and traders will be

looking at. tom: something else has evolved, this obsession with weight loss drugs and to what extent they are being taken by people in the u.s., europe and elsewhere. as nestle looks forward, how is that a headwind for them or a challenge for the company? >> over the last two years, what you see is people are a lot more conscious about what they are eating and buying. when you think nestle, you think chocolate. so, even in portfolios, i think at first you are seeing funds in investors were focused on esg looking at, i want to compose my portfolio with things that are healthy, that are good for the environment, that are great for us. nowadays, it's a lot more of a core focus. if consumers are starting to go away from the sugary stuff, from

more calories, then companies, which are having to sell them, will have to change up their mix a little bit. what you see is the popularity of drugs, ozempic, that tells you people are more focused on what they are eating, what they are putting into their system. that is a challenge for companies. tom: maybe an ingredient change for kitcat in the quarters. >> innovations are always something the company is looking at. tom: investments coming through for nestle, the world's biggest food maker. plenty more coming up. we will do a deep dive on nvidia and how it's positioning stocks more broadly. stay with us. this is bloomberg. ♪

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tom: welcome back to bloomberg daybreak europe. the nvidia catalyst at the forefront of our attention today and the shares post market rallying on the back of those earnings. the beat in terms of the most recent quarter, then the forecast for this quarter as well. expectations of revenues come in at 24 billion u.s. dollars. in terms of the growth we saw from the most recent quarter, 22 billion u.s. dollars, that was more than doubling. you are seeing the stock price reacting post market on the back of that. back to 730 five after closing in the session at 674. this puts the company back with a market cap around 1.7 trillion u.s. dollars. one of the largest companies in terms of market cap in the world, just below saudi aramco, microsoft and apple. we will see if they take over saudi aramco. let's look at the breakdown

across the different segments of this business. the red line is the gaming part. this is what nvidia was about until a few years ago. it was all about gaming. look how insignificant that part of the business is. the white line is where the upside has come through. that is the ai play in gpu's going into the data centers. $18 billion in revenue. that is more than quadruple, quadruple the previous quarter a year ago. the growth in the datacenter is saying, that will continue. more big earning interviews, including conversations with the chief executives of mercedes and anglo american. markets today is up next. this is bloomberg. ♪

>> good morning from london, this is bloomberg markets today.