that's all for this edition of "dateline." i'm andrea canning. thank you for watching. ♪ good morning from london. this is "street signs." i'm dan murphy. let's get straight into the headlines at this hour. nvidia nose-dived in the premarket despite sales more than doubling leaving investors overwhelmed. ceo jensen huang seeming bullish. >> for the computing stack. demand remains strong. and the anticipation is

incredible. >> european chipmakers are judging the numbers. plus asian and samsung coming under pressure. cnbc learns openai is in a fresh round of talks that would value the company at more than $100 billion. we'll discuss. and drink stocks surge as china's ministry says it will not oppose an anti-dumping subsidy on brandy imported from the eu. ♪ straight to our top story today, nvidia shares are lower in extended trade despite a top and bottom line base in the second quarter. the midpoint of current revenue guidance came in at 2% above the average analysts' forecasts. the chipmaker says it expects to

ship, quote, several billion dollars in revenue from the blackwell chips in the fourth quarter despite production delays. ce oft jensen huang looked to upset concerns for demand for current products. >> if you have a choice between building infrastructure for business right now or hopper for infrastructure right now, that decision is relatively clear. so, i think people are just clamoring to transition the trillion dollars of established and stalled infrastructure to a modern infrastructure. >> let's unpack what all of this means for the stock moving forward. arjen is here with me around the desk. arjen, great to see you. is it a case of the bonding too high? >> yeah, on earnings, it was beat on the top line. beat on the bottom line. the guidance also came ahead of what the market had expected as

well. but the problem with nvidia at this point, those growth rates that we've been used to seeing 200 percent plus year on year end of quarter, that just been be sustained as the company goes big year-on-year comparisons become harder. so if you look for the guidance, they're looking at 80% year-on-year breathe versus 100%. and 200 percent plus in the quarters. it's become harder and harder to surprise investors as well. despite the fact it looks like demand remaining strong. supply remaining tight. it's giving the company very strong prices. those margins are sitting up above 70% as well. and the company even said in the quarter that it's planning to ship its next generation blackwell chips. and they expect to ship several billion dollars in blackwell revenue as well. that was one of the concerns

going into the report that actually blackwell might see drys. and the hopper chip will see decrease. there's a strong report. the problem is the expectation is too high but it's become harder for investors. >> investors looking for a reason. we have breaking news we have just learned that chinese president xi jinping is meeting with national security adviser jake sullivan in beijing. this is quite an unexpected development. we know the national security has been on the ground meeting with chinese policymakers, including wang yi, and the outcome is that we would see a leadership taking place between the two leaders in the coming weeks. this is a surprise given that we have the chinese president meeting with the national security adviser. we'll continue to follow that

development and we'll bring you that as well with ambassador david adelman. we just wanted to update you on that news as it develops. arjen, bringing you back to the nvidia, what can we expect of the company moving forward? and to what expect did blackwell impact delay around the results? >> yeah, i think the growth rates continue to come down a bit. still, pretty solid growth. i think one thing we have heard from the big tech giants this quarter, gone is the fact that they're continuing to spend on kx and infrastructure for a.i. that means buying up nvidia chips. so what looks clear is that the demand is still there at least for the coming months. i think one of the concerns, perhaps, an investor has was the visibility beyond perhaps the next two quarters and more into the rest of next year and 2026. there's still a question mark over that. i think that's going to be watched very closely.

blackwell has pushed those aside and said we're going to start shipping a lot of those in the fiscal fourth quarter, showing actually there is demand for that, that product is coming to market. and on top of the next generationship, the hoppership, the current chip is seeing development as well. >> as we continue to unpack this through the course of the hour, let's flag what we're seeing with the european chip makers in reaction. you can see asl around 1%. and be senta comdown by 7.2%. we're also seeing chip names out of asia moving lower. let's go to singapore with j.p. j.p., what did we see play out in the markets today? and to what extent did nvidia actually impact some of the big names? >> that is indeed -- the nvidia

probably did impact a number of stocks here in asia. as we follow the market's reaction to what arjen mentioned which is the solid set of results that did not meet the highest expectations. and really, some of the biggest losers in the region what to be the chip-related stocks. with sk and samsung. developing a chip that required less energy. and they saw some of the biggest hits actually, downward hits out in seoul. we take a look at japan. and semiconductor stocks among the biggest losers or laggards there. the largest companies are taking big dips downwards. for tokyo electron. it's a bit different for taiwan. we know they're the biggest

chipmaker in the world and pulling it back, unc, another big semiconductor also down. and a couple of wrinkles with the chip selloff in asia. we don't know exactly why they did that, but you can see there are a couple of outliers here. i do want to end with one market that we seldom touch on here, and that's malaysia, since a huge chipmaking plant. and also the fact that we're seeing in malaysia having an opportunity to use decades of experience as a packaging powerhouse to move up the value chain when you look at unisem, malaysia pacific, they have indicated they want to go into advance packaging and seeing cautious optimism in a.i. and seeing how the share has reversed since that time, and practically wiping out all of the year-to-year gains.

from tokyo taipei to korea to kuala lumpur. >> j.p., appreciate the update. let's bring you the latest commentary just breaking on the wires right now regarding this meeting that's taking play between national security adviser jake sullivan and chinese president xi jinping. fresh commentary from the chinese president saying in this meeting with sullivan, he has said that china is committed to a stable relationship based on win-win cooperation. the president adding we hope the u.s. will work in the same direction as china. also commentary here from jake sullivan, he says that we are committed to maintaining high-level diplomacy. and adds that president biden looks forward to engaging with you, that is, president xi, in the coming weeks. so this is quite a surprise development. of course, we did not expect the national security adviser to meet with the chinese president. quite a significant development

here. jake sullivan basically aiming to balance the u.s. need to constructive engagement with china. wong yi has said that the company to smooth development actually lies in treating each other as equals. we're going to be getting reaction to that later on in the program as well. as well as following any possible market reactions. so do stay with us for that. in the meantime, let's continue the conversation on nvidia. the executive director is here, thanks for being here, ben. we were just talking about how the lofty expectations perhaps have not been by the straight here for nvidia, none less, a pretty good result. what did you make of it? >> yeah, arjen was accurate, these are good beat with the numbers even higher. to put it in context, nvidia national male beats by $2 billion on the revenue line, in

this, $1 billion and ahead as well. that's problematic for two reasons, one, investors, used to 2 billion. but nvidia is a 30 billion quarter versus 10 billion not so long ago so the magnitude of the beat is that much higher. and i'd also note it's the smallest beat in six quarters. so it is a strong set of numbers, but expectations were very high. >> ben, was there anything in those reports to concern you? i know people looked very closely at some of the details around the gross margin slightly falling and, you know, the forecast for mid-70%, versus a perhaps slightly higher expectation, of course, as you alluded to, of course, those percentage rates also falling? anything in there a concern? >> yeah, it was closely watched by semiconductors because it's a proxy and strength of the business. as you say, they're guiding a

little bit down in q3 and potentially even more in q4. and that's, you know, not a good sign. however, that is totally explainable. because they're bringing on background of this new product, the new products always start at lower gross margin. so there is a diluted mix of that on the gross margin. the other thing that i think is important, the opx has been guides up. you've got a beat but also margin pressure as well. so that has meant that earnings estimates largely are staying flat. normally after anna vidia call, you get earnings upgrades. so that's a different scenario than we're used to at nvidia. >> ben, many have spoken to us this morning about the visibility of the company, beyond just this year, into 2025. one of the themes of this earnings season was big tech essentially upping their capex, investing in infrastructure for sure. but do we have a view at this

point of what's going to happen next year for nvidia? >> yeah, this is exactly the issue, it's always trying to think about 2025, even 2026, as you say, the biggest driver is the capex for the cloud producers. and that looks like it's an on upward trajectory. one thing i would always caution, you start, you always see periods of digestion by the big cloud providers. we haven't seen that yet. that may be in the cards for 2026. that's something that people worry about, i also think energy constraints is something that people look for. and supply chain looks to be ramping well. those are things to watch for. fundamentally, what jensen was talking about last night was the strong for the hopper product and the blackwell product.

so both continues to be strong. but as you say, this company is priced for strong growth and maybe we're getting to good growth, not great growth. >> ben, that's what i wanted to ask you about, you say nvidia is priced for strong growth. talk to me about current valuations. how sustained is this? we're seeing investors selling the stock on positive news near. at the same time, nvidia makes up about 7% of the s&p 500. so, does it deserve this type of valuation still? >> yeah. if it continues to deliver that growth, i think it does, it's 32 times which is not unusual for on a head basis, that's not particularly expensive. what we always worry about, of course, with high multiple, high growth stocks, when that growth comes down the multiple stocks contract as well. for now, reasonably prices and still upgrowth as that continues. if we get an air pocket or some

kind of supply chain constraint then, you know, the company can quickly do that. >> and analysts still seena vidia as the well weather for tech and a.i. so, how do you see the stock influencing the performance of the broader inssector going forward? >> you're right. it has become a bellwether in a.i. and so forth. it's the go-to company because it's built in position where if you want to do a.i. training and inference, they have the chips, they have the software, they have the network. and they're increasing from a chip business to an entire system and rack business. so it's absolutely a bellwether. and you've seen reactions, negative reactions from some of the u.s. players like amd and so forth. interestingly, you said media tech was up in asia. that could be because they're

working on a pc. >> ben, you mentioned amd there. when we speak of nvidia, people also call it a wide moat company, defendable moat. where do you see that challenged by amd? >> i think actually if you look at the cadence that amd is innovating at that's actually increasing. and that's difficult for amd to compete with. amd, understand, is a much smaller company. amd is moves to compete with stock ware and on the open source stack. you have seen the acquisition it made a couple weeks ago. that's to try to improve it's sort of wax scale expertise. so i think it is keeping pace with nvidia, but at the moment, nvidia is still the go-to. of course, the other outside contender is owned and begun by

the cloud service providers, the chips that they use and some of the microsoft products as well. so, you know, it's not a complete moat, but i would actually note that nvidia's mode has gotten stronger, not weaker. >> ben, we appreciate the conversation. global tnt analyst. and moving on openai, also tox on a funding round that would value the a.i. startup at more than $100 billion. cnbc has learned one source with knowledge the matter was told the round would be earned by thrive capital. "the wall street journal" has reported that microsoft which is openai's bigger backer will also participate in the round. openai and microsoft failed to decline. what's your take on this. >> well, look, a.i. is expensive. i think that's the bottom line.

these nvidia chips are not chip. openai needs to buy them. microsoft needs to buy them so that's probably some rationale behind it but openai has shown itself to be one of the leaders right now in terms of the large language model which is underpin applications like chatgpt develops. but also, it's shown to some extent a twouwill to monetize. with microsoft and microsoft offering openai services through its cloud business as well. i think one of the leaders -- while we talk about nvidia as the picks and shovels, what's the next wave that's going to benefit from a.i.? i think many people are looking at the so-called application player. openai, how it feeds into that given its partnership with microsoft. why would it want to go public? i think the huge demand for a.i.

timing is going to be key for openai, if it goes public, indeed. timing will be key. what is the state of the market? are people still excited about a.i.? has the thesis of a.i. changed? all of those will come into play. it's seen as one of the front-runners, and one of the most exciting players when it comes to the data side of artificial intelligence. >> indeed, a.i. has proven there's a lot of interest in that stock. a funding round doesn't necessarily suggest it will go public. but maybe it's something that the board is considering. maybe it's something that they'll have to shift around. maybe it's something that the market can invest in the future. we'll have to watch that space. >> arjen, i appreciate it. here in london. stay with us onthe program, coming up, we'll give you a check on the european markets as

ricard delivers a mixed set of results. that's next in the next two minutes.

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signs." so, behind me, the u.s. stoxx 600 pulling higher, you can see better by .14%. stocks a little higher, despite the negative lead from wall street in back of the nvidia results. let's break it up around the region. you were see stocks broadly higher, 4% gain for the paris and 4.5% for the german dax. others in positive territory. italy, better than by 0.5% with gains. let's break it down by sector. when you actually imunpack what happening. this is off the back of what is a pretty volatile week with oil prices moving lower. and chemicals leading some of the market gains up by 7.4%.

pernod ricard posting a 1% in sales in line with expectations. the company sided on certainty and the market with demand on two of its key u.s. businesses. pernod ricard betting on higher demand for the fourth quarter. you can see the stock is up by 3.2%. meanwhile, this morning, the china ese ministry will not impe subsidies on brandy. drink stocks are on a tear as a result. you can see, it's actually moving higher by 6.5%. big gains up 1.6%. lbnh a huge drink basket for that business. and pernod ricard, 3.2% stronger right now. delivery also confirmed its

output for a full year, reporting a 7.4% in the gross market value in the second quarter. that's higher than analysts were expected. the delivery company announcing on the stock exchange later this year. certainly a boon for mideast i pos. new car registrations in europe edged modestly higher. across the four major markets with annual sales rising in italy and spain, but falling in france and germany. fuel type, battery and electric sales fell by more than 10%. and highybrid sales make up a td of the market as petro cars. >> also, shares in byd in focus slipping in hong kong, despite

the chinese electric vehicle maker reporting its fastest growth. the gross profit margin fell 18% in the first quarter, down from 22% in the first quarter, as a prolonged price war and increase tariff from stocks. and shares also under pressure after the beijing-headquartered company missed analysts cast for the third quarter number. more on this report. earnings out from china's two possible ev makers posting profit growth and sells more vehicles at thinner margins amid an ongoing war. it's down sharply from the 200% increase in the corresponds period a year ago. first half deliveries of 1.6 million, margins falling to 8.7%. the auto shares falling after

posting profit of $154 million. that's up 86% from the previous quarter but down 52% on the year. the company is forecasting q3 deliveries of 145 to 155 units up as much as 43% from the 108,000 vehicles delivered in q2. easy penetration in china hit 50% as of july. and the sector has been in focus on the back of the 100% tariffs announced by canada earlier this week. reporting from hong kong, i'm emily tan. when we come back, u.s. vice president kamala harris and her running mate tim walz touched down in georgia. we'll have more at stake as harris targets voters in the peach state. that's next. switch to shopify so you can build it better, scale it faster and sell more. much more. take your

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available at walmart and drinkcirkul.com. ♪ you're live on cnbc. this is "street signs." i'm dan murphy, let's get straight into our headlines today. first off, shares of nvidia nosedive despite sales more than doubling in the quarter as slow

forecasts leave investors. cee jensen huang. >> to modern the entire computing stack. the anticipation for blackwell is incredible. >> plus, european chipmakers dodged the reaction. but its asian peers tmc, and samsung all coming and you frern. >> and chinese president xi calls on the country to see the development as a possibility not a challenge during a meeting with the national security adviser jake sullivan in beijing. and drink stocks surging, leaving european equities higher as chinese ministry says it will not impose a subsidy on brandy imported from the eu. welcome back to the program.

let's give you a live look at u.s. equity features right here, right now. markets look mixed as we track to the open. s&p 500 and dow called higher, dow better by 180 points, nasdaq called lower by 11. of course, we're coming off the back of nvidia day stateside. it's been called financial markets super bowl. nvidia shares dropped 5% plus even after beating expectations on both the top and bottom line. this is a stock still up 10% on the month. around 150% on the year and it makes up 7% of the s&p 500. of course, market investors watching to see exactly what the guidance looks like because as we have been discussing through the course of this week, as goes nvidia, so goes the market. of course, market investors also laser focused on what the fed does next. the atlanta fed chair bostic say

it may be time to move on rate cuts, bostic said he is able to wait and see amid september before pulling the trigger. the first of those will be today's weekly initial jobless claims numbered followed by july's pcde index due and friday, nonfarm payrolls released before the meeting begins on the 17th. 30-year mortgage rates in the u.s. fell to its lowest level in 16 months as the market braces for what is likely to be the fed's first rate cut in over four years next month. the average contract length pell to 6.44%, down six bases points on the week and 38 bases points across the past four weeks. however, mortgage applications rose just 0.5% and purchase applications up 1%, as potential buyers hold out for a further

drop in rates. and ahead of vice president harris' first televised interview since president biden dropped out of the race, cnbc's megan correspond sesella takes . >> analysis from the penn wharton budget model shows the forecast $5.8 trillion over the next decade. that's nearly five times more than the cost of harris' plan which they say would add $1.2 trillion to the deficit. but when it comes to the economic impact, harris' plan comes with more cost. for trump, it's a 0.4 drop over a decade, for harris, it's 1.3%. the cost now is so high for trump partly because he's not endorsed any pay to offset tax

cuts for individuals, social security and corporations. trump talks about the revenue but economists say retaliation can outweigh any benefit. now for harris, there are substantial costs, the biggest one expanding the child tax credit which would cost $1.7 billion over the decade. it would raise about $1.1 trillion. they're much more even there. all of this is contingent on congress which controls the purse strings. if congress blocks harris' attempt to raise taxes but harris, at least, so far has a plan with a smaller impact on the definite kit. cnbc business news, washington. >> and of course, u.s. vice president kamala harris and her democratic running mate tim walz kicked off a routine bus tour in georgia, a state that harris looks to put back in play in

november. harris is gaining position, compared to a poll 538, with the democratic almost reacing donald trump's 5% in the swing sate. harris and walz sit down with their first interview. and alice barr joins us with more to expect. alice, fascinating from "the new york times" saying donald trump is facing doubts from republicans including strategists and donors about his plans to win back the white house. the question is, what can he do to curb some of the momentum we're seeing behind harris. and what's at stake as harris and walz sit down for this critical interview in the next few hours? >> dan, your two questions are kind of tied together. we've been talking about this, this week. vice president harris has been

under a lot of pressure to do an interview. to sit down and directly answer reporters' questions anded to more clearly stake out where she stands on key issues. this pressure is coming from both her own supporters. we've heard from voters who say they want to hear a little more detail from her. and also from critics who argue that she can't clearly say where she stands. they've been framing her as a flip-flopper, who doesn't really have her own grounding in what she believes in. and what we've heard over and over from republican allies to former president trump is that they want him to focus more clearly on the policy issues and the policy questions. and to try to, you know, put her in that box, as someone who has changed position on several issues over the years. of course, the former president has as well. this is something that's happened throughout political careers. but that's what they see as the path to making up ground and the momentum that you were talking about there, rather than going

into some of the attacks that the former president is prone to at times. they're pressing him to stick to do that. and when we see this sit-down interview with vice president harris and her governor tim walz, that's what we anticipate will happen. that reporters will try to get them into the weeds, into more specifics on, of course, the issues that have been the biggest liabilities against her, specifically, immigration and the economy. and the more detail that she puts on to the record, the more fodder there will be for critics to then pick apart, what her policy plans are. and i think as we get closer to the election and as she really is forced into these situations, where she has to get more specific, that's going to provide more opportunities for her republican rivals to then fire back. >> absolutely. well put, alice. okay. we'll leave it there. appreciate your reporting as always, alice. thanks for joining us today, that's nbc's alice barr live in

d.c. let's get a check on the markets tracking right now. you can see it's a pretty positive day, london's ftse up by 0.2%. paris dax up by 1%. italy gains up by 6% as well. we have a big focus on the drinkmakers, french giant pernod ricard posting a 1% in sales. in shrine with expectations in the market that has seen weak demand in the chinese businesses. the chinese ministry has announced it will impose provisional andy dumping subsidies on brandy report imported from the european union. this is an investigation into brandy import which is beijing launched earlier in the summer. you can see markets are certainly getting a boost off the back of this. pernod ricard up 4%.

lbh and remy soaring here, up by 7.5%. let's bring the trevor, great to have you on. first, your reaction to what we've seen on china, an this announcement on brandy. clearly, the market likes it. but what are the mid and long-term implications here? >> well, it takes away the tariffs in the short term. i think a parity, there's a rider in the statement that says they're not going to impose tariffs for now. i think this is part of a broader context of eu imposing tariffs on evs and on cognac and investigating dairy imports. so, i don't think this one is put to bed yet. it's purely incremental good news that the short term has gone away. i think the tariff is still there. that's buy you saw the huge share prices of remi which

tolerated the breaks. >> what should we be looking out for next, if the chinese continue to threatenmore measures in this space that could ultimately impact the direction of travel for these stocks? >> well, we're probably not going to hear anything short term directly on cognac per se, i guess the attention will turn to other sectors. we've already heard there's an investigation going into dairy. i guess the broader they're likely to pass the net in terms of potential tariffs, it's less likely on tariffs on cognac, so in a funny way, more tariffs is good news for cognac, the nature of these discussions is incredibly volatile. we just don't know what might happen, equally, eventually, these things are evolved from investigation. whether we're seeing investigation from china terms of manufacturing evs, inside the

eu framework, in hungary or turkey, maybe at some stage, the tariffs become irrelevant, so there's a long way to run in this particular issue yet. >> it's a fair point. still uncertainty out there for investors, trevor, while we have you, let's unpack what we're seeing from pernod ricard. more in particular, what pernod ricard is doing in china. how do they impact the earnings and direction of stock? >> china is around 10% of their business, in the last fiscal year, leading up to june, sales, 10%. so that was about a 1% headwind to the group growth rate. normally, you think china would be contributing at least a percentage point to group growth. so it is a major swing factor. as you said they were down 1% in the last 12 months. if you exclude the impact withdrawing from russia that was probably a plus 1 number.

that's below where they'd like to be at. they reiterated they'd like to get back to 4 to 7. part of that will be recovery in china. and the other part of this has to be recovery in u.s. sales as well. >> how does pernod ricard plan to nav great the normalization of spirits market post covid? this is something that failed to flag during the most recent earnings release. so what exactly is happening? and what do they mean by normalization now? it's been several years since covid, are we not at that normalization tipping point? >> i think we are on the cusp of it. to put it briefly in a nutshell, the u.s. volume spirits volumes have been up 3.2% for three years. in 2019, 2021, there was a big surge in outdoor consumption. earnings are up 5.7%.

now two years flat. we recommend by the end of 2023, we're broadly at where we would have been if covid never happen so we were close to normal but then a weak consumer environment, destocking going on an and this year has been subpar as well. probably, and i emphasize the word "probably" we're back to where we should be if covid never happened and return to much larger margins of growth. we've been waiting about six months for this. i think in the short term it's not going to happen given the uncertainty in the u.s. but if we have fed cuts in the year, we'll have those compared to last year, one would hope by the time it gets to the end of this calendar year, things are starting to get closer to normal. >> trevor, what about this plan to upload international wine brands? is a part of strategy shift or other factors in play? >> this has been in the making

for a long time. they've been nibbling away. wine is a brand industry that is notoriously low in profit, particularly in comparison to premium spirits. and consumption has slowed down dramatically. it's just no longer as an attractive industry 10 or 15 years ago when they bought the businesses in the first place. they'd rather take the money and invest on higher growth spurts. >> all right. trevor, we'll leave it there. that's trevor stirling, managing director of european beverages. up next on the show, national security adviser jake sullivan holding a surprise meeting on the meeting in beijing. ea'll bring you that afterhe t stay with us.

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♪ welcome back. u.s. national security adviser jake sullivan has met with chinese president xi jinping amid his visit to beijing, with both pledging a commitment to

maintaining diplomatic ties between the superpowers. the white house earlier today u.s. president joe biden and his counterpart xi jinping will hold a phone call in the coming weeks with sullivan telling xi that biden, quote, looks forward to engaging with him. analysis by the former ambassador and managing director of great shares. ambassador, thank you for being here. your reaction for what we've seen in beijing, the national security adviser meeting with the president, a surprise? >> yes, it is a surprise. i think it's very good news. very good news for the u.s./china relationship. but the mere fact that jake sullivan was in china is newsworthy. but meeting with xi jinping elevates the importance of his visit. i think it augers very well for a continued building of a strong floor under u.s./china relations. >> having said that, though, i was surprised by the readout of

the initial end of this meeting in beijing. it seems as if jake sullivan has gone in and after 18 months of backchannel diplomacy and conversation with wang yi, he's walked away with an agreement on a higher level phone call. i thought, is that all there is? >> well, i read the readout as well. i think the meetings were more substantive than the meeting may suggest or your comments may suggest. they touched on bilateral issues, they touched on regional issues and they touched on international issues. i think that the wang yi/jake sullivan meeting was sort of the agenda-setting meeting for the summit that is likely to come. remember, it was only in november of 2023, not that long ago, that president xi was in the united states in san francisco, and there were three, i think, substantive agreements made at that time. one, the military-to-military

communication. and then sullivan pressed, not just for continuation of that channel at the highest level, but the opening of a new channel, regional commanders. the commander of the pacific command of the united states which resides in hawaii. talking regularly with their counterparts, or regional command, in china is at the top of that list. and now, of course, there was also an agreement on fentanyl and an agreement on student exchanges. so it's natural this would be the follow-up. 18 months later, i take your point, but nonetheless, this is very positive and probably more substantive that the readout suggest. >> just to push back on that a little bit, is ambassador, whether taiwan, the south seas or technology, there is more than divides these powers than unites them at the moment. and despite four years of president biden pledging that he

would aim to repair and restore this relationship, it simply has not happened. so how does the united states move forward from him with this very complex and very competitive relationship? >> well, you used the right word "competitive." when the biden administration came in, their goal was to normalize the relationship. it had been very confrontational during the four trump years, and what the biden team stated, and i think what they have done move it towards less of a confrontation and more of a competition. undoubtedly, i think washington wishes its relationship with beijing is an more firm ground. you rattled off issues, taiwan strait, war in ukraine, didn't even mention the middle east and iran, all of these are major international issues. and what you see is washington trying to bring china into a place of responsible stakeholder, to use a term that

bob zellic coined in 2005. and i think china increasingly will be willing to be that responsible stakeholder, but you're right from washington's per spegt perspective. >> i want your take on the quote, wang yi said the key is treating each other as equals. is china really equal to the united states? >> well, that's a very tough question. i mean, it's not equal in size of economy, or size of military, but we're until a bipolar world. and i think that's what wang yi is trying to say, we're not in some 1990s, unipolar world. china is very much a global power. and i think this is why you see the united states and europe, for that matter, seeking to have china as a responsible stakeholders, wang yi's comment, i think, is going to be well

taken. china has expressed for many, many years now, its concern that american foreign policy is determined to contain china's growth. and it's going to be washington's job to convince china that is in fact not the u.s. foreign policy. that the united states simply wants to pardon me constructively around the world, including in the asia pacific region. and the united states' job is to welcome china into the bipolar world promoting stability in the asia pacific and around the world. so it's not surprising at all that wang yi would offer those comments. and it's not surprising at all that maybe the united states has to continue to work to build trust with beijing. in the end, this relationship will only succeed if the parties trust each other. and we're not at a point, i think, of full trust. but jake sullivan's meeting, and meetings in beijing this week, are an effort towards building

even a greater trust or floor of trust, if you will. and i think to the extent the leaders have agreed to a phone call and probably followed on with an in-person summit at some point in the not too distant future afford are important trust-bilding measures. >> ambassador, we'll leave it there. we appreciate the conversation, that's david adelman, former ambassador to singapore. and managing director of claim claims. you can see the markets have called high early at least for the dow, up by 183 points, s&p 500 flat. nasdaq expected to open down. salesforce, living higher after the firm raised its output on but back of a second quarter earnings base. the firm sees profits coming in as $10 per share. however, revenue at the firm grew at its slowest pace on record as a public company, up 8% on the year at $9.33 billion.

it's the first time growth has come in at single digits since its listing. and, of course, nvidia has been the primary focus in the united states. we have sina vidia's shares pulling lower in regular session after we see the company beating on both the top and bottom line. you can seena vidia shares in the premarket down by 4.36%, though so all eyes are on the impact on the broader s&p and markets on wall street. thank you for your company today, i'm dan murphy in london. stay with us on cnbc. "worldwide exchange" starts right now. what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at

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♪ it's 5:00 a.m. at cnbc global headquarters. and welcome to "worldwide exchange." here are your five at 5:00. it just was not good enough. nvidia under pressure this morning, after failing to plant wall street's seeming insatiable thirst for growth. the blackwell chip and slowing a.i. demand possibly keeping a floor under the stock this morning. >> hopper command is strong and the anticipation for blackwell is incredible. >> chip and tech