>> 30 minutes into the u.s. trading day on the thursday, february 22. the tipping point. nvidia blows past expectations amid insatiable demand for its ai accelerator chips. that is boosting the rest of the sector in the s&p 500 as well. meanwhile, rivian and lucent sitting at the party with stocks plunging after delivering disappointing outlooks. more on what that might mean for tesla. and food inflation. are consumers trying to push back on higher prices? we will discuss in just a bit. ♪ welcome to bloomberg markets.

take a look at these markets right now, there is a lot of green on the screen behind me. the s&p 500 around a record high right now, that index up about 1.6 sent and it just gets better as i go along you take a look at the nasdaq 100, up over 2%, and that all ties back to nvidia also getting a fresh record high today after last night's earnings, helping out the semiconductor index as well. you can see that as of almost 4% at this moment. so let's go from the micro to the macro because we are getting some breaking news now from the advice chair phil of jefferson, bloomberg's mike mckee has more. >> philip jefferson doesn't speak very often so when he does , people do listen and he a message for the markets.

he could cut this year, but don't expect much. that is going to be an important part of discussion. jefferson saying if the economy evolves broadly as expected it will likely be appropriate to begin dialing back out policy restraint later this year. that tracks with pretty much what everybody else in the fed has said. he goes a step farther and warns against excessive easing in response to falling in lucian. excessive easing can lead to a solving or reversal in progress in restoring price stability. jefferson says he has three concerns out there, things that may influence the outlook for monetary policy. consumer spending can remain strong pectin and push-up inflation. labor markets can weaken as growth needs. and then there was always the geopolitical risks out there that could cause an inflation shock. don't count on too much this year and once we do start to cut, don't count on us going too far. >> it's interesting, bond

markets, not too much reaction, the two year yield hanging out around 4.68% and again, we are really embarrassed by riches when it comes to fed speak this week. who else do we have to look forward to? >> patrick harker this afternoon and neel kashkari and chris waller who has always made a lot of noise. harkre is before the bell, but we are going to get some news that will train into tomorrow from some of those fed officials. >> we will continue to keep an eye on that. thank you so much. of course the headline, then vice chair jefferson saying that it is likely appropriate to cut later this year. but let's go back to the micro, let's go back to nvidia because it is getting fresh highs today after delivering another eye-popping sales forecast. here is what market watchers had to say. >> the most sensational set of results for nvidia.

>> this is really the earnings heard around the world. >> i will do my best to serve contain my enthusiasm. >> each quarter, to continue to surprise. the only result that was going to be acceptable was a substantial beach. >> this is a company that continues to execute and completely blown by everybody's most robust forecast. there is great momentum there. people are begin to wonder how many consecutive quarters can this company continue to run with? >> the big question has been how long can this continue? >> there is sort of a consensus in the industry to put them competitive pressure back on nvidia. >> the competition has never been more fierce than it is right now for nvidia but they have a huge head start. >> this kind of way that's coming to the rest of tech and that is going to continue to yield this techful market. >> this ai party is just getting started. >> joining us now with his

thoughts as mandeep singh berg intelligence. busiest person in the building this week. when it comes to nvidia, supply is improving but demand is far outpacing that. >> and also, the product roadmap. they talked about introducing h2 hundred, the latest line of processor with almost double the computational ability of the 100. that is where product roadmap is so critical for a company like nvidia. estimates have gone up 10% this morning from where they were. they were already expected to grow 50, 60%, now it is 70% for this year. you have to rest yourself yes, they clearly are executing very well but the overall market still grows 20%. where is that 70% coming from? clearly they are putting up great numbers but somebody out there should be losing in terms of losing market share. jensen called out data center

incremental spending around $1 trillion for the next five years so the addressable market is expanding really they are putting great numbers and executing very well. >> you take a look at amd today, of almost 8%. they have a competitor chipped and yet they are having a gangbusters day on the heels of these results. why is that? is it just forget the pie is expanding so much that we are not necessarily worried about who the share? >> if the $1 trillion opportunity is true and lisa sue said it is $400 billion income opportunity, out of that $1 trillion, one third is computed and probably similar networking. so there is a lot of incremental opportunity. at the same time companies don't just raise the i.t. budget 40%, 50%. how long can this be sustained?

this is not a recurring revenue, the company has to keep executing to put these numbers up. they are probably sandbagging the next quarter, but i'm thinking to or five years out, is this recurring revenue, or are we talking that digestion which is what we have typically seen the semiconductor chips? >> some big questions, going to be interesting to see those get answered. right now nvidia shares currently up 14.7%. mandeep singh, thank you so much. for more on nvidia and the markets in general, i'm to say we are joined by adam gold, rounder and keep investment officer over at kevin hill. you've owned nvidia since 20 16, are you buying more today? >> we are not buying this morning, if the shares were in the red we would have been buying. over the last 30 quarters we've been doing the shares, they have only missed twice, yet the shares have fallen 40% of the time the next day.

this set up here prior to today was on the positive side as you are seeing a reflection of the incredible numbers. but no, we are not buying today but we are proud to be a shareholder since 2016. >> you wrote that this to the $5 trillion market cap company this decade. they are currently at about $1.9 trillion. what gets us there in the next six years, what is your outlook? >> we like to listen very carefully to all the earnings calls, the competitors, customers, the buyers. there is been very interesting takeaways the last few quarters as acceleration and cloud cap access has started to cause this ai arms race. of course this is a battle for the next big way of computing fighting on the talons of the pc, and what is unique is this is not just an expanding market share story. they are taking share from cpus

which is not the processing power has not increased enough to withstand the amount of increase in data so we are also seeing an increase in the size of data centers in the amount of new opportunities. $1 trillion data center that will convert toward elevated computing. the second one is around ai. what is unique is it is not just companies like google, microsoft, amazon. most recently, the last few weeks because of their shares to run up dramatically five the announcement, but it is also an increase in the places where data centers are going, and this is called sovereign ai, they've referred to this the last six months. what is unique is that every country, every local jurisdiction wants to have their own set of ai factories, intelligence factories so this sovereign ai could be $1 trillion as well. so the tam is growing by double the current base just as they

are taking market share of the current installed base. if you're thinking about $2 trillion and 25% market share, that is down dramatically from today, but 25% is $500 billion in revenue and 10 times revenue is trillion dollars. we think that is a real possibility here. >> let's talk about the competitive landscape. we were just talking about this with man deep. do you think that those are serious threats at this point, or are you saying this is invidious marketer to run here -- nvidia's market to run your? >> certainly bear the leaders at pioneering this model for many years. amd has talked about $3 billion this year in ai sales. that is how much they just increase their guidance under this quarter, let alone the entire year.

second sourcing is obviously something every customer will be saying to their suppliers in terms of where the pricing is, but if they have the margins, it is absolutely incredible. 51% operating margins. most likely, supplies are constrained, companies are going to look for second sourcing. there is obviously internal chip development this is something you thought about very thoroughly over the last year, especially at some of the new came from microsoft google has announced it has been working on theirs for a long time. but what is unique is those are single source solutions. if you are a developer, we think about the vc ecosystem, they wanted to create their apps and programs that work across many different devices and platforms as possible. nvidia has a very far-reaching ecosystem and that ecosystem is very sticky for their partners,

for market customers. that means the competition of a single source chip such as these cloud vendors might work really well for one of their own applications. they don't hear a lot about tv processes going, microsoft is not buying the the opportunity here is the tams are growing. market share might decline, but that is $500 billion. >> great to catch up with you, really appreciate your time. as adam gold, founder and chief investment officer of tatum hill. let's take a look at what is moving now in the markets. bailey, we are actually not going to talk about nvidia for >> a couple minutes. >>you're going to ignore the s&p 1 to focus on all of the other company that had earnings. starting off of wayfair, beating expectations.

analysts harping on the fact that they took a note from mark zuckerberg's year of efficiency and cut costs, so that is driving profit. profitability is the key focus for analysts and they are beating expectations on that. that is why wayfair's uprightness 7.5%. one thing to keep in mind with wayfair it is still down close to 85% from the 2021 peak but if you bought ahead of earnings, stocks up. >> to barbara's low but it is interesting. you think about the home depot results, people not moving around in the housing market but still needing to buy furniture. tell me about moderna, that is a name i haven't talked about in a while. >> another one that is down 80% from peaks but beating expectations, taking some market share for this cody johnson the fourth quarter of last year, from pfizer, so beating eight vacations on sales. it was a surprise profit that stood out to him, shares of 8.2%, so it does seem like maybe

they are eating up some market share from rivals like pfizer. one thing to keep an eye on, expansion of their pipeline. the cancer vaccine still very much on the earlier stage but could be a driving factor for that company. >> that is the still -- still the big question, how do you expand beyond just covid? quickly tell me about oil caribbean cruises. >> three gainers. a lot of green on the screen, biggest jump since july. bookings stronger-than-expected which is leading to rallies across cruise liners. carnival up more than 3% as his norwegian cruise so it does seem like people are maybe wanting to take advantage of 2024 even if there is concern around consumer spending by getting out and taking to the seas and going on a cruise for a vacation. personally not a big fan of cruises, haven't been on one, don't want to be on a ship. >> i would say i fear the ocean so being locked on a boat, i don't quite get it.

coming up, mercedes-benz pumping the brakes on the eeev industry, bracing for lower sales. we are going to talk about the future of the industry up next this is

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♪ >> i don't think anyone had ever thought that the ones in the century transformation of the auto industry would be a straight line. they would be peaks and troughs and ends like buildup of charging infrastructure and other enabling factors also will determine how the market develops. >> that with the mercedes-benz group ceo speaking to bloomberg earlier this morning after the company walked back it's easy

targets. earlier, rivian broke the news that laying off 10% of its staff. it also delivered a disappointing forecast and so didn't listen. joining us to break it all down is craig trudell. when he comes to rivian, when it comes to lucid, what is the path forward for these companies? it doesn't seem like there is a lot of hope out there. >> it is a really ugly day for rivian in particular. of those two, rivian really looked to be turning a corner last year. they really had a sort of blockbuster public offering in 2021. they had a lot of challenges with their production ramp. a love that was supply chain related. they seem to be overcoming that. the fact that they are taking some time off this year for a changeover to their next-generation platform means short-term pain for hopefully long-term gain.

of course, some investors aren't going to be thrilled with that. there is an expectation that the company will increase production from last year, basically saying they expect to be flat this year which is just not what investors were looking for. >> i have to admit i don't know what a loose vehicle looks like but i have seen rivians on the road. you take a look at the company is saying it is going to prioritize, cost cutting over volume growth. give all of the scene and come out and announce layoffs three times in most recent history. is that more of what we expect here? >> i think that fear is that these companies are just burning way too much cash and that is something that absolutely unites them. lucid is in a position of really having to sort of get its cost in order because it is losing so much money and you have a real question as to just how sustainable the way these

companies are running really can be. so with rivian, i think they are trying to bring cost more in line. they are trying to get to a place where -- where they are healthier company once they are able to bring a less expensive vehicle to market. lucid is playing in very different space, and i think really having challenges with the six-figure electric vehicle market. their ships only so much volume to go around, and they've really had challenges with being able to hit their numbers as well. >> craig trudell, thank you so much. share is currently down 26%, we will see how that one develops. another developing story, at&t working to address widespread disruptions to mobile services across the u.s. the cause of the disruption is not yet known. with get the latest from todd shields who has been following the story. todd, what we know thus far? >> we are a couple hours into

this, it started early in the morning. we know there are outages reported in major cities including new york city, dallas, it weathers. it's we are waiting for more information. when it will be resolved, we don't know. exact number of customers hit, we don't know. we do know that at&t shares have taken a hit. so we wait for more. >> what precedent we have for this? have we seen the scale of an outage before? >> it has been a long time since we've seen anything like this. there was an extensive failure in 2008 at at&t. there have been failures with other companies from time to time, but nationwide, it seems to be unusual because few companies are really at the extent of at&t. it is an unusual outage. it affects including 911 services in some cities, so it is being taken seriously.

we vast federal authorities what is going on and we are waiting to hear from them. >> really appreciate your time and your reporting, stay close. you take a look at at&t shares right now, as todd said, currently down about 2% but let's move to another breaking news story. bloomberg learning that goldman's beth hammett once seen as a top choice to be the next cfo after the bank is calling it quits after 30 years. i feel like we've seen a spate of goldman executive departures over the last couple of months. >> this one is a little different because of the larger issue at stake here. let's be clear, there has always been concerned about lack of women in senior leadership roles, which is why beth panic -- hammack was different, she was always put forward as one of the likely candidates to break into the top tier, potentially

seen as a cfo a few years back. but when she was passed over for that role, she was still picked for other roles, come her way. goldman has an all-male top-tier. in its history, there has never really been a woman at the top of term. no ceo, no cfo, no president. these are roles which have sold even occupied by men, which is why it has been a point of interest at the firm and elsewhere to see when it actually starts to change when someone like that hammett leaves, people pay attention to that. >> if you look at the top brass of goldman and it is largely males. with beth leaving the firm, who should we be keeping an eye on? who is actually in the ranks to potentially take her place or beyond?

>> this issue has resurfaced recently only because just last month, they created two different committees. goldman is a place that loves to operate by committees. across the trading division, the banking division, really the two critical businesses at goldman sachs, what is known for, they created a group of emerging leaders to oversee the running of the firm. that's 25 executives, only three of them were women. with beth hammack's departure, that drops down to two. that doesn't paint a very pretty picture and is how you recognize they need to figure out how to improve the pipeline because at this rate you're not going to see rapid change at the top. >> let's talk a little bit more about beth specifically because she is only 52 years old. as decades left for career. do we know where she is going? >> from what we can gather she will probably take a beat and figure out what to do next but if you've spent ideas at a place

like goldman sachs you can rest assured they will be a lot of people in the market who would be in to have you at their firm. this is repeated at goldman sachs every year each and every single year. she had been there for 30 years, started in the trading division or at least grew rapidly within the trading division. once she became partnering 2010, she was part of the longest-serving chair which is an influential advisory group to the treasury secretary. she's been a banker for the last two or three years so she's had experience on both sides of term. so you can be certain, wherever she lands next, she will have a fantastic leadership opportunity. >> big time, she is entering the job market with a strong resume. maybe off the garden for a couple of months, but we will continue to follow that one. and of course, it is time now for social climbers, a look at the stocks making waves on

social media this morning. first off, bowing ousting the head of the 737 max program. ed clark step down immediately after nearly 18 years at boeing. the move less than two months after the midair blowout that led to scrutiny at the u.s. playmaker. next up, we do have etsy in a bind. the marketplace missing earnings estimates. the company says it was a slow start for the quarter. and finally, we do have google today announcing a positive gemini artificial intelligence image generation the tech giants that the feature showed inaccuracies in historical pictures in the course, this is just the latest hiccup in the company's effort catch up with rivals openai and microsoft and he comes on the day when we are focusing big time on ai hardware after nvidia's blowout earnings. and of course you can find all the latest company bows -- buzz under bloomberg terminal. coco praises surging to record highs.

the news is anything but sweet to consumers. we talk about rising food prices up next. this is "bloomberg."

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>> one stock we are watching right now is nestle, posting disappointing results in its latest order. we are joined by natalia. >> the stock has dropped to a four year low. the company posted revenue about 4% p the expectation was for 4.9%. we compared to previous years, it was at 7.2% last year.

this is a story about inflation pureness's -- but inflation. nestle's ceo said in impacts demand for food. consumption. when we talk about inflation, we talk about different categories, but i would like to talk about snacks. it was one of the biggest stories during the pandemic as people were stuck at home, but now, after the pandemic, we saw that prices for snacks started to grow and now they keep moving higher. this chart shows cpi for u.s. snacks. as a result, many producers keep rising prices. we heard from one of the global to get that produces snacks. they said they will keep rising prices mainly because cocoa prices keep rising and have risen to a 46 year high.

so growth was positive, but it was different across different regions. the biggest growth was in latin america, 28 .6%, followed by europe, asia, middle east, and the slowest growth was here in north america. we should look at the pic mac -- picture in terms of how the company delivers products and consumption overall. if we look at presence across different markets, we see european markets are the largest, 36%. this is followed by north america, asia, and latin america. so higher prices, inflation still impacts consumer behavior. katie: let's keep this conversation going. we are joined by the mondelez international ceo. you think about in january

mondelez said it would raise prices on some of your products, the price of cocoa skyrocketing. how does that compare to previous price hikes? what kind of magnitude are we talking about here? >> if we talk about our global range, it is lower than it was in previous years. but if you look at the truck the price increase, that is going to be high single digit, in some cases double-digit. that is in line with what we had in previous years. i wish it was different. our input cost keeps going up. some are flat. some are going down. but cocoa and sugar are the ones that are going quite high and they are important in our products so we have to increase prices again. katie: how will consumers take

on this price hikes? i love oreos, but you cannot live off of oreos. how much pricing power do you have left? dirk: up until now, we have not seen any affect on the price increases on our volume. we have had volume increases that were the same as before the inflationary period, so price elasticity wise where the consumer has accepted what we have to do so far. going forward, they can deal with another round of price increase, particularly if you talk about our major brands, our chocolate brands here. cadbury, toblerone. they are so close to the hearts of consumers that i believe they will be prepared to see through this next price increase. it is not just our brands. it is all brands. that will help, but hopefully

anytime soon this inflationary period for our cost increases will stop and we will go back to more normal situations. katie: it is a good point there, the brand recognition for your company strong. i want to talk about distribution because it appears that you are focusing on convenience stores, warehouse clubs. are those the types of channels you are pursuing? how do you plan to succeed there? dirk: if you look around the world, we are not represented in all channels in the same way or if you look at geographical, it might be we are not in all stores, so a driver of our growth is in the channels where we are underrepresented or increase our reach geographically. if i go to the first one, the

two big opportunities are convenience stores in the u.s. and the bigger warehouses, discounters in u.s. and europe is the other opportunity for us. geographically speaking, prices in india, we believe we can still go to another 3 million stores in the country to have our products present. an opportunity for us is in the store where we are already present. we can improve and increase our presence. we can have better quality presence. the opportunity to keep growing as a company is big. katie: we are having this conversation against a frost geopolitical backdrop as well. mondelez still operates in russia. let's talk about current events. alexi navalny, his death, has that led to renewed mondelez mondelez conversation of exiting from russia?

dirk: since the beginning of the war, we have condemned the aggression against ukraine. as early as two operations in russia, there is no real, simple solution. it will be easy or could be clear to say that if stopping our operations in russia would stop the war be would definitely do that but unfortunately that is not so straightforward. so we believe the majority of our investors understand what we are trying to do. what we are trying to do is we believe the risk of exiting russia and what would happen to our business and how it would be used is much higher than staying, continuing to operate locally, scale back our operations, and make our business more standalone. it is a difficult balance. it is not easy to take one of

the toughest issues faced as a ceo, but we believe this is the best solution in russia. katie: when it comes to the russian business, that contributes to put a percent to her global revenues in 2023, down from 4% in 2022, so it is not as if the russian business adds that much to your bottom line. dirk: it is not. it will continue to decrease over time because it is standalone and we have scaled back our investments, but we believe continuing to operate and working with the farms we have not continue to provide chocolate and biscuits to the russian consumer is an acceptable way of continuing our business there. katie: are you able to actually take her profits out of the

country? how does that actually work? dirk: that remains a bit of a difficulty. we can take some out, but we have to go through quite a bit of controls and approvals by the russian government, so over time it is something that needs to be solved. as i said, we are not trying to grow the business there. we are trying to contain it. the problem becomes smaller and smaller, if i can say it like that. katie: i am curious about the employees you have in russia. i understand you have thousands there. you take a look at carlsberg executives facing years of prison in russia. are you concerned about safety of your employees in russia? what steps are you taking there? dirk: of course we are concerned about the safety of our employees. we are also concerned about the fate of the suppliers.

we are trying to be as reasonable and as nonconfrontational as we can. we want to maintain business there. we want to scale it back. we do not want to do major investments, but we want to continue to provide employment and protect employees. so far, that is what we are able to do. katie: really appreciate your time today. that is dirk dirk van de put -- dirk van de put of mondelez national. abigail doolittle has more. >> we are looking at a bullish day for markets. for the s&p 500, we are looking at the best day of the year. that is true for the nasdaq 100 as well. for the s&p, it is the best day since may of last year my having to do with a blowout quarter from nvidia, its best day since may when it put up that first

blowout quarter in outlook. all things good with nvidia in terms of growth. the technicals are interesting because over the last couple days i have been talking about how overextended the chart looks. we take a look at this chart that i created today. one reason yesterday to think nvidia is going to fall back to earth further is this is the year to date uptrend. into today, it had broken that uptrend. it is rare that you see a stock overtake that uptrend. that is what nvidia is trying to do now. look at the rsi. it is lower than the highs here, so this record high may not be surprising if at some point this stock gets a little tired to some degree because of the technicals.

as for what else is going on in the markets, we have this interesting story developing around at&t, verizon, and t-mobile, maybe -- mainly at&t, which said there have been disruptions to its networks nationwide, including in houston . they are not sure what is going on. also interesting, on x, there are people saying they do not have verizon service and t-mobile, but those carriers have said they do not see an outage. it looks like it is a developing situation, but right now investors are not liking this news, despite the fact that you have that telecom fumigation services sector higher in sympathy with nvidia. katie: we will continue to follow that story. thank you. coming up, we will hear from joshua freeman on constrained lending from commercial banks.

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>> coming up, michael brown joins bloomberg: the close at 4:30 p.m. new york time. this is bloomberg. katie: it is time now for wall street week. joshua friedman spoke with wall street week host david westin yesterday about what he currently sees as the most amassed debt. take a listen. >> when you zoom out today and try to look at the overall context, i think there are at least four sets of balance sheets that are all carrying a lot leverage. the first one is the federal government itself, which is sitting with erie $5 trillion of

debt and managed the last trillion in record time. the pressure of refinancing that debt is a lot of pressure on interest rate markets generally. as you mentioned, if you give something to people for free, they take on a lot of it. what was free was debt, so balance sheet after balance sheet in the corporate world, mostly in private equity sponsored companies where the level of debt is -- and those maturities are rapidly advancing and the rate of interest on that debt is quite high. most of the floating-rate debt was not fixed and refinancing the old debt today is expensive the third set is real estate balance sheets. in many cases, people might have swapped interest rates for two years or three years but did not for 20 years. if they fixed their interest

rate, it might have been fixed for five or seven or 10 years but you are into that period. when you have to refinance from a 3% environment, you cannot sustain as much debt. there is going to be a lot of interesting opportunities in those balance sheets. the final balance sheets that are out of whack are banks, both national, critical banks that hold a lot of commercial real estate homes as well as regional banks and we are starting to see some of the exposure in those balance sheets. they are slowly tiptoeing back into the lending business. it is constraining a lot of those activities that they might otherwise engage in. >> some of us spent a lot of time speculating on what the fed is going to do, but i'm curious about a sensitivity analysis. what is the difference for you, whether the fed holds firm on 5% as opposed to cuts of 100% --

100 or 150 basis points? does that make a difference in your business >> it can, but not necessarily. you have been in the higher for longer camp on the theory that jay powell is a bright guy and he does not want to use every arrow in his quiver unnecessarily. as long as the stock market is healthy and unemployed it remains low and inflation looks like it is more or less under control, why should he rush and use the weapon of lowering rates so dramatically? i think the market has misread some of his signaling. some of that might be taking a victory lap because of the successes he has seen in taming inflation. my view is the fed's inflation numbers are artificially high. if you look at real housing costs and talk to people who own hundreds of thousands of residential units across the

country, rents are basically flat. most people are not moving from their home because their mortgages low, so their occupancy costs are flat. to say inflation because of some metric the fed is using his 6% and that is 30% of inflation, you are overstating inflation by as much as 1.8%, so inflation is actually pretty benign right now. the economy is doing well. why should the fed suddenly lower rates in a world that is already running pretty hot? the economy is doing well. the long end of the curve is another story and can be more difficult for the fed to tame, even with $8 trillion sitting on their own balance sheet. it is hard to see why that number should come down materially. when you are doing things that are stressed in the market where

companies have to wean themselves off a bloated balance sheet, you are talking about 15% plus returns on your money. they are not closely related to the high yield index where low rates are. they might give people more confidence and push people into buying things, but we are not that dependent really on what the fed does in the short run. my bet is the fed will take its time. the exception of the real estate business, which is in the sights of the fed in terms of most affected by interest rates, i think the economy is doing fine in spite of higher rates. katie: that was joshua friedman. joining me now is the man who did the interview, david westin. interesting comments on the fed but also on constrained lending given what we are seeing in commercial real estate.

>> you heard him talk about opportunities. he finds it an opportunity because there is not as much lending out there, particularly because fed -- the fed and regulators are constraining banks from stepping in. that for him as an opportunity because they can step in and make a good return if the company is solid. katie: you listen to men such as josh friedman talk about the stress and it makes sense that there are bets for them to take here. david: he was careful about saying there's a difference between companies where the fundamental business plan does not work but there are companies that are good, solid companies that of gotten overextended and there has to be an adjustment in their balance sheet and they can help them get over that hurdle and pay back the money, which is important. katie: so there are opportunities, but you have to be selective about it.

when it came to his comments on refinancing we have been talking about refinancing risk for a while while given how much the fed has raised rates, and at what point does that materialize in bankruptcy? david: he said there are more you might think and he named several that have happened but he said the sponsors are kicking the can down the road. they will be more patient because they do not want to push them into bankruptcy and that is why the -- where they are looking for opportunities. katie: it feels like we talk about it every couple months, this big wave of refinancing. that was josh friedman. who else do you have coming up? david: we have the nobel prize winner in economics. he has a different approach to trade. we will also hear from eric cantor about what happened to the republican party where they do not like business much

anymore. katie: i am looking forward to that one. that should be a fascinating conversation. this is bloomberg. ♪

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katie: let's take a quick look at the stocks hitting highs and lows. we start with nvidia hitting a 52 week record high after its blockbuster earnings are that puts the chipmaker on course to add more than $230 billion to its market cap. if that hold, it would be the biggest single session increase in market value in history and you can see shares up about 11 point 7% over the past two days. you do have nestle hitting a 52 week low after posting lackluster results, shares down

about 5%. coming up that does it for us. this is bloomberg. ♪

>> from the heart of where innovation, money, and power collide in silicon valley, this is bloomberg technology with caroline hyde and ed ludlow. caroline: i am caroline hyde. this is bloomberg technology. nvidia surges as a i demand powers the company outlook again. we will have full coverage on the company as it looks to