tom: these are the stories that set your agenda. vision could these slip with u.s. futures lower after nvidia

sales production fails to meet some of the higher forecasts. the company says is black will chip will ship this quarter. u.s. prosecutors charge the billionaire founder of an alleged $250 million bribery scheme. the conglomerate scraps it $600 million bond sale following the indictment. ukraine forces fire british cruise missiles at targets inside russia for the first time . bloomberg learns the biden administration is planning to cancel billions of dollars of debt owed by ukraine. happy thursday. a little more life being read into the markets after letter cost u.s. and european equities

yesterday. looking brighter today despite the fact that nvidia not coming quite as high as some of the highest projections. so far you're looking at european stocks down by .3%. s&p futures currently down .2%, nasdaq futures pointing lower by .3%. let's flip the board and look cross asset, a lackluster sale of 20 year treasuries yesterday, not absorbed other markets as well as some had expected. the ecb's doves saying they could get to the 2% target early in 2025. bitcoin closing in at 100 thousand dollars. fresh records being made by that cryptocurrency. nvidia has dipped post-market after its revenue forecast

failed to eat the highest expectations. given the earnings call the ceo spoke about the high demand for its blackwell chip. >> we will deliver this quarter more blackwell's then we had previously estimated. the supply chain team is doing an incredible job working with our supply partners to increase blackwell. tom: what stood out to you from these numbers? >> there were solid numbers, nothing raised a lot of great fun middle concern. demand continues to outstrip supply by a wide margin. as you mentioned in your intro, while the gun is for this quarter it actually beat, he didn't quite match the highest expectations.

one last thing i would mention, there were some small concerns going into results, residual concerns relating to the earlier blackwell delays. so we saw no negative surprises on that. i think it steady is she goes is the message from here. tom: what about the broader industry, the challenges the broader industry faces at this point? >> i like that word. it is monetization, is the fear of missing out. is driving a lot of the capex spending amidst the big tech platforms at the moment. they're spending like there is no tomorrow. they are not monetizing it at anywhere near as fast a rate. we are not at the day of

reckoning but there is still a risk of less monetization and it will happen at some point into the new financial year. but we will have to wait and see. tom: and the concentration is still a question or some analysts on that stock as well with 50% of revenues coming to those hyper-scalers and i'm hoping the number will reduce to show a further expansion into other parts of the u.k. system. thanks for breaking down the nvidia numbers for us, always with the smart context and analysis. a bit of a mixed picture. avril: i makes bag but a bit of digestion of nvidia earnings. infotech is among the worst performing sectors over all. asian markets look like they are in a pretty bad mood. among chip stocks were seen declines for second day, the drag on taiex you see there. some gains in the likes of samsung.

how the chip names experience a course correction. they don't expect a lot of massive selling this time around. keep that in mind as we see the moves in these chip names. the one i wanted to highlight as well is the underperformance in the nifty, after those u.s. charges against the daddy founder and the other executives, this is a hard-hit on the stocks and bonds of the adani group. i want to highlight what were seen in japan. we heard from boj governor who's been speaking in the past hour or so. he talks about how they cannot predict the outcome of the december meeting. it sounds like they're not ruling out a rate hike. we saw the reaction in the bond

market selling in a drop of about four basis points. the dollar looks pretty tepid and the reaction we've been seeing in the past couple of minutes or so, flip the board and take a closer look at this chart. earnings have disappointed, we've also seen these concerns about high valuations. u.s. charges might put long-term investors further for longer and threatened to push the nifty even below the 200 day moving average. keep in mind that as we see these declines and the adani company stocks as well today. tom: that's a perfect set up to do a deep dive on that story. thank you for the details there.

let's get more focus on what's happening in terms with the adani group. is having a massive effect across these indian markets. u.s. prosecutors indicted the groups founder and other executives on bribery charges. new york-based prosecutors allege that adani and others agreed to pay bribes to win solar energy contracts. our calls to the u.s. office were not immediately returned. anthony in mumbai gnosis company like the back of his hand and has followed the story very closely. what is the latest on this case? >> shares of the company are controlled by -- some are down as much as 20% or more.

we're talking about 10 publicly traded companies. he also had to scrap a $600 million bond sale which was underway in the u.s. what youth prosecutors have done is to bribe indian officials to get solar power contracts. i knew at the heart of this is one of the biggest renewable energy producing companies in this part of the world. this company is building up one of the world's largest renewable energy parks and the contracts are linked to this which is under question. u.s. authorities are saying industries raised this money,

they have no idea how the money was being used and the bribes being paid. tom: i talked about how well you know the business, you have spoken exclusively and recently, one of the key family members. you did ask them about bribery investigations. when you spoke to them, what did they tell you about that? >> it was just two or three months back, i wanted to let him off the -- the boj investigation, it's a story we broke at bloomberg and we been carrying it over the last one year. here's what he had to say when we asked him the question. >> those are legal matters.

if there is even an entity that looks at it, it's in the do course of their business, there's nothing particular about it, that is a separate issue for us. what we have to keep in mind is that when we were asking the question in july they had already made an exchange filing in india saying the u.s. prosecutors or satellite office have not reach out for them with any specific questions regarding the investigation. none of the documents we've seen so far clearly lays out what was the process followed here. with the a biden administration on the way out it would be hard for the trump administration to take a call and how they perceive this. to assess any material impact on growth we would have to know how the trump administration goes

moving forward. tom: joining us from mumbai with the details and context, a major development for these indian markets, thank you. from some fed officials, this from john williams, we've been hearing from a number of fed officials with different slightly diverging messages in the last 24 hours or so. saying the interest rates may fall further, according to reporting from barron's, after the austin fed president suggested there could be cuts to interest rates but at a skating pace. interest may fall further again according to barron's. this talk about how the markets are adjusting, in terms of appetite or lack of appetite to further issuance from u.s. treasuries.

pushing yields higher across the curve, meanwhile the boston fed president susan collins says more rate cuts are needed the should proceed carefully. >> monetary policy needs to adjust in order to achieve our dual mandate goals. while the final destination is uncertain, i believe some additional policy easing is needed is policy currently remains at least somewhat restrictive. tom: let's bring in our markets reporter for the context there. tie these two things together. and the market reaction to that 20 year option. >> the market is grappling with where is neutral for the u.s. economy? could these new administration taken over the white house in january perhaps shift the neutral rate any higher and imply less fed? ? cuts in 2025 we look at where the market is currently pricing in neutral, 3.8%, implying 100

basis points of cuts to go left for the fed in this easing cycle that remains a big unknown heading into next year. another big unknown next year is how much pressure these fed officials will get from the new trump administration. we had the vice chair a baking supervision having to defend his job on capitol hill yesterday. >> would you pack up and go if trump are elon musk called to fire you? >> as chair powell said, we serve fixed terms of office and i intend to serve my fixed term of office. >> there was michael barr yesterday on capitol hill saying he plans to continue serving out his term which ends in 2026. we've seen the euro-dollar yesterday very close to touching

the 105 and a yet again is been under a lot of pressure. we've had a lot of speak from dovish members talking about the need to possibly go back to expansionary territory. we heard from bill roy just a few minutes ago talking about how he sees the inflation hit from trump tariffs is not his main focus. he's more focused on the downside hit to growth that tariffs entail. we overheard talk of an inflation undershooting. one thing that is not under pressure is bitcoin, it is flying this morning, crossing the 97,000 handle, all due down to the fact that we've heard from the trump administration that they are eyeing a white house position for crypto. it's unclear whether it would be a staff position or if it would oversee broadly the federal mandate on crypto when it comes to regulation, but the market is taking it as a positive bitcoin

is up basically 3% this morning. tom: a check on the markets in terms of how investors are adjusting to fed speak every coming up, an exclusive conversation with the ceo of a french company. questions around the demand as nvidia comes in with a beat. they may be forecasts that are slightly disappointing around the edges. stay with us, this is bloomberg. ♪

tom: welcome back, happy thursday. the french semi mender fat -- semiconductor manufacture has cut its capital expenditure forecast for the full year maria to rating its midterm ambition

to reach $2 billion in revenue. joining us for an asus of conversation is the ceo of soitec. talk to us about what the results tell us about the prospects for the business going forward. you seen operating income falling almost 70%, revenues falling, but you've confirmed your guidance for 2025. what is next year looking like? >> hello, tom. the semiconductor market is mixed. we are addressing the smartphone business first, it's going to grow year, we should experience a slight recovery in this market. we will continue in the western

world for the first half of next year, and the ai market we will continue to boom and sustained particularly for this year to stabilize our revenue. we have good traction for the future with tom: tom: diversification. its initial chain breakdown of the different units. an increase of 3% maybe next year. are you little behind it comes to the ai revolution and capitalizing on that? what else are you doing significantly make sure you are better position for that part of the business? >> today there is no new market

without our products. our ability to interconnect data centers with lower consumption is a key element for energy. it's making us really take a ride. if you take the growth of this half year we grew by 57%, that demonstrates the product is really leading the pack. tom: the stock is down about 60% year to date. is this enough to convince investors to regain the confidence of investors? or is there more that you need to do on that front? >> the fundamentals are very strong. we have a very good relationship

with our customers in terms of quality and visibility, and we are investing a lot, lara revenue is dropping for the first half, were investing 26% in growth r&d because innovation is the key. in the long run, we do believe our portfolio that is very diversified, more than four units are above $100 revenue and we will continue to develop and expand. in 20 -- we are growing. tom: in terms of the u.s. expansion, there was talk you're plan to build a factory in the u.s. where are you on those plans and how much progress have you made on that front? >> we plan to extend in the

u.s.. the u.s. is a very important market in terms of product sales and innovation is coming from the u.s.. it's important for us to expand our footprint in this country. we don't know precisely the way we will expand in this key piece of global expansion. tom: do you need to accelerate that shift into the u.s., given the threat of tariffs from the incoming trump administration? >> we think first business. is there business reasons for being more present in the u.s.? the answer is yes, and we will keep that reason to expand and also to do it relationship with the need for investors. there's not -- there's no way to

expand if business is not there but we will be more expandable in this country. tom: i wonder how you think europe should adjust to ensure that we can be competitive and it comes to chips, given the challenges were seeing from intel. global foundries in france going nowhere. what does europe need to do to be competitive in this crucial ecosystem? >> 60% of products made in france were exporting 93% of what we produce globally out of friends. we are competitive in france. we have excellent engineers, and we have no problem with connectivity from this country. what is at stake is to continue to invest in innovation to lead

the pack.

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now. the top names in business are tom: let's get you up to speed with other stories making the news.

the danish military is closely monitoring a chinese ship that damaged data cables in the baltics sea. the high-speed cable was cut early monday, the second incident of its kind in just over one year. bloomberg understands hsbc has a bent to build a carbon credit desk is europe's biggest bank calls one market erected by repeated allegations of greenwashing. the bank is no longer working to build a dedicated unit focused on trading credit and the volatile credit market. ukraine fires british crews missiles at military targets inside russia. we bring you the details. it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw!

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the ones who get it done. my relationship with my family and with my boyfriend and with myself were suffering. i really needed help really getting those thoughts out to a therapist and getting feedback was just life changing. bloomberg has the fed decision under surveillance with the fastest coverage and exclusive analysis, including powell's press conference. nobody covers the fed like bloomberg.

good morning. this is bloomberg daybreak europe. i'm tom mackenzie in london. these are the stories that set your agenda. asian equities slipped with u.s. futures lower after nvidia sales projection fails to meet some of the highest forecasts. the company says its blackwell chip will ship this quarter. adani group shares tumble after u.s. prosecutors charge billionaire founder gautam adani over an. alleged $250 million bribery scheme. the conglomerate scraps its $600 million bond sale. following that indictment. and ukrainian forces fire british cruise missiles at targets inside russia for the first time. bloomberg learning, meanwhile, that the biden administration is planning to cancel $4.7 billion of debt owed by ukraine. and we've seen these markets volatile. to the geopolitics and the news flow out of ukraine. of course, we check in on the markets right now with european futures pointing modestly higher

after a flat session yesterday, pointing to gains of 3/10 of a percent. here in the u.k. the ftse 100, looking to add 32 points, up 4/10 of a percent. commodities getting a lift so far in the session. s&p futures pointing lower by 2/10 after a flat session on wall street as well. just below that 6000 level. nasdaq 100 futures pointing lower by 57 points. and certainly nvidia will be part of the story there. flip the board. let's have a look at what's happening in the treasury markets. you had a 20 year auction not as well received by the markets as some had expected. you saw yields up across the curve yesterday. today pretty calm across us treasuries. 440 is what's been yielded on the benchmark us ten year. euro dollar at 105 sonatas of the central bank of greece. and of course a member of the ecb panel, suggesting that that 2% target could be hit in early 2025. a dove, of course, when it comes to ecb members. bitcoin continues to grind higher towards that 100,000 level at a record 97,000 right now, up 3% in the session. on reports that the white house

incoming trump administration, i should say, is looking at a particular appointment around the crypto space. brant trading at $73 a barrel, up 4/10 of a percent. let's get back to the story around geopolitics and the ramping up of tensions. when it comes to ukraine and russia, because tom: just draw a line under what we've seen in the last 48 hours. oliver: we will begin with the deployment of the north korean troops that was a little bit

while earlier. this is really what was needed by the biden administration, now it seems increasingly other parts of the western powers to say that you and ukraine can use these long-range missiles within russian territory, which had been seen as a no go zone for a long time. first it was the u.s. that capitulated on that. joe biden, then generally the question is is this an exclamation or a path toward negotiation. in the same week you have vladimir putin lowering the bar for what it would require a nuclear response. that feels escalatory. negotiation does not begin until two sides name of christ. the ukrainians name their price or early, a return of all of their territory including crimea and paying for the damage is done by the war. russia may have named their price earlier this week, basically saying there is any

openness from vladimir putin to talk to donald trump about carving out specific regions potentially returning a small amount of territory and part of the conditions would be a blocking of ukraine ever joining nato. these are non-starters from the ukrainian position. the ukrainians will say this is too high a price. the question is what will donald trump say. he will be instrumental into shaping however this conflict goes, either escalates or ends, and that will be the real question, and i think there is a real consciousness from both sides, from european allies and ukraine or russia, they want to be in the strongest position possible when donald trump comes in and creates a new paradigm for this war. tom: in the history of donald trump, is verbiage, his actions suggest he does not sit in the middle between zelenskyy and boudin -- putin entity is

leaning slightly more toward the muska position. talk to us about what the by the administration can do in the short window it has before the trump administration comes into support ukraine? >> the immediate things that will have immediate effects on the battlefield like delivery of long-range missiles. we have landmines that would be delivered for the first time. these are landmines that become inner after a period of time, but there are long-term proposals that the bite administration has been looking at, including potentially forgiving some of ukraine's debt . forgiving $4.6 billion worth of it. this is that of the earlier package, and as part of the agreement the democrats wanted a push this through music after ukraine. donald trump said why don't we do this as a loan, and in order to get it through politics if they had to attach $9 billion worth of debt.

the biden administration wants to move to cancel that debt. that will face a great deal of resistance from a number of people particularly republicans. rand paul saying he needs to block a biden for making ukraine's debt america's problem. given the political climate of the united states and what we saw at of the election this may be a hard thing to push through. tom: oliver crook, thank you very much on what the bite administration is trying to do to support ukraine in the last few weeks. other stories making the news, the european union said to approve france's budget as it seeks more clarity on how paris will control long-term expenditure. bloomberg understands the european commission leaves the french government is on the right track to cut its deficit in 2025 after it presented a draft budget bill with 60

billion euros of tax increases and spending cuts. sources say the eu would like more details on ames expanding the fiscal adjustment period from four to seven years. car sales in europe are flatlining leading manufacturers to push for cost cuts and a response to muted demand. new car registrations increased 0.1% in october compared to one year ago. declines in france, italy, canceled out expansion in germany. the ford company is planning more cuts as an industrywide transition to ev's loses traction and is looking to as -- slash roles. it will have production by the end of 2027. bloomberg understands starbucks is exploring options for his chinese operations, including

the possibility of selling a stake in the business. sources say the coffee chain is been speaking to advisors about way to grow its operations in china, including the potential introduction of a local partner. the archegos thunder has been ordered to spend 18 years in prison for fraud and market manipulation. tied to the stunning 2021 collapse of his $36 billion family office capping a case that riveted wall street. bloomberg has more from outside the new york courthouse. >> inside the courtroom bill hwang in the jumpsuit freezing when the sentence was read. saying he felt deep pain for what happened. prosecutors wanted a 21 year sentence, because they said whang was an repeat offender,

because back in 2012 he to insider trading with another company. on the other hand, his defense wanted no jail time, but the judge says that was utterly ridiculous. back in july the 60-year-old was found guilty of 11 criminal accounts, including wire fraud, securities fraud, and market manipulation after prosecutors say he orchestrated a scheme to mislead his bank counterparties into providing his company with the billions of dollars. the implosion of archegos caused significant losses to major banks, including morgan stanley and credit suisse. after imposing the prison sentence the judge said he will not make a decision of restitution because more information is needed and that the defense and prosecutors have until december 5 to file briefs. tom: staying in new york, artwork consisting of a piece of

duct tape and a banana stuck to a wall has 046 $.2 million at an auction. the buyer is a crypto entrepreneur who told bloomberg he is considering paying with the, bitcoin hitting a record, nearly $97,000. $95,000 at the time of the option, $97,000 right now. banana artwork being sold. coming up, as investors digest nvidia's disappointing forecast around the edges we speak to the ceo and cofounder of polyai. we will discuss demand and the outlook more broadly for artificial intelligence.

this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." nvidia's revenue forecast failed to meet the highest expectations , and those expectations were stretched suggesting it is he is -- dizzying growth run has some limits. let's be another player, polyai produces ai assistants, raising $50 million in a funding run from becker's -- backers. i am joined by the ceo and cofounder of poly ai.

thank you for joining us from helsinki. let's talk about the monetization of ai, because you are at the cold phase of this. you have that front-end touch point in terms of the demand. this is a key question when it comes to nvidia. as the monetization story starting to fade when it comes to ai? are you seeing any cooling of demand? >> absolutely not. people are confusing two things. there is the first wave of people buying chips and gpu's to fuel future growth, and there is a story of greater exponential growth just from a lower base, at first it option of ai for workflows, customer service sales in many things. in our case growth is higher. nvidia share price falling is just because people have gotten

used to them wildly exceeding expectations. it is the most valuable publicly traded company. the house always wins, and they are so dominant i do not see a reason to be pessimistic about it. tom: the house always wins, and they are a backer view. how important is that relationship? do you big -- get better access to computer? >> it is pretty close. we are able to work with them on their strategy and models, data, integration all of that stuff. they are the company when it comes to the space, so for us it is super important, and as we drive our adoption of these models for the enterprise, we are the translation layer between what people see and expect.

there is just a bit of a timeline while we translate that into huge roi, and i think a lot of companies are doing really well, growing incredibly fast. it is a matter of allowing smaller companies for us to reach a scale where you see greater impact in society as a whole. we take hundreds of millions of calls a year. most people do not know that they are speaking with artificial intelligence. tom: you are breaking down that barrier. it can be deeply frustrating to be put on hold at a call center whether it is an automated voice or human voice, and you are trying to break the back of that. >> people hate -- tom: do you face resistance from client to say we do not need another voice about -- bot. it just really annoys our

customers? >> the market says, look, there is $1 trillion of labor spent between western europe and north america. you look at customer care spenders, in total to make $10 billion of revenue. the hole in their -- the whole narrative of software captured 1%. covid and onwards we have a crisis of customer service in europe, america, around the world where companies are struggling to meet their channels. 75% of all customer service contact despite vital to pushing toward digital chat, web, email, people prefer to pick up the phone and call. customers do not say they do not need a voice bot. customers want to do the best job they can for their consumers. is there skepticism?

absolutely, especially in north america where the first iteration is disappointed and frustrated people for more than a decade. what help is the new generative and people's belief that we can do a lot better, and we are doing a lot better. across all of our deployments we improve scores relative to the starting human to base. it means that a solid 50% to 75% you have with the contact centers in the future will be with ai and they will be better for you. tom: one of your early investors is cola ventures to backed openai. does openai keep you up at night ? did they end up steamrolling your business? >> absolutely not. i think if you think about companies that are ai first, there are a lot of companies

that are llm wrappers. they see that the purpose of technology to finally start doing what we have been doing for seven years now. we have models that we have been applying to our customers. the moment public perception became what it is, we started getting more than half of our deals inbound. i do not think that would happen for a very long time. do not bent on being the company that pushes llms a bit further and having that in your mode. your mode can be in your customers, distribution, design, and data. i think we have more data than any other company when it comes to for base conversations in customer service for voice. they make speech recognition work, llm computing better and creates the incredibly humanlike voice, and that is design. we have been working with voice actors to create the most

lifelike voices that exist in the market. our mode is really deep. what is interesting as there are companies that are trying to challenge us. we think him for all that he is done. tom: he is the angel on your left and right shoulder. you were there at the sluch event, the biggest gathering of founders and vcs globally. can europe compete? the u.s. has this unassailable lead when it comes to ai. you have the trump administration coming, and some will say that will supercharge the shift. his europe being left behind? can you and entrepreneurs compete? >> i am european in london, spends four to five months here.

most of the revenue is american. american enterprise adoption, economic growth in that country is phenomenal. they are the driver behind ai adoption. we do great work in europe. in europe we have the chance to leapfrog automation, because we have had a much less bad experiences with the boys automation in europe than americans have had with other versions of their, so there is a chance for europeans to do a lot, and we are trying. look at economic growth. look at the fragmentation of the market. america is where it's at. tom: america is where it's at. really fascinating contacts. really appreciate your time. ceeo and cofounder of poly ai. there is plenty more coming up. this is bloomberg. ♪

>> i have a feeling that we are free to speak nvidia. >> i think that a lot of investors are expecting a little bit too much. >> there is this fatigue, but make no mistake. this was a remarkably good quarter. >> what they are putting up in terms of overall growth is exactly what the bulls want. >> never underestimate wall street's ability to miss the bigger picture. this company is double the operating budget of any big seven outside of microsoft. to nitpick nvidia on those margins is missing the big picture. tom: some of our guests discussing nvidia's latest earnings. let's break down the numbers. a hammering in terms of guidance, but on the quarter this was to be -- this was a

beat. upbeat on estimates, revenue. earnings-per-share a comfortable beat. gross margin, this is a story to think about for the current quarter. margin is softer than estimates. the top end range, 41 billion, and that is the expectation story. in terms of the guidance for the current quarter, i wanted to talk to you about the margin story, because the expectation is that gross margins will cool a little from around 75% to 73%. that is double what intel sees. before the black watch up is taken up by huge numbers, so that could be a fly in the oitn

ment. -- ointment. shipper -- chip in terms of a move from hopper to blackwell. they have had snacks and engineering but expect to get them into hands on bigger scale when it comes to hyper scammers. in terms of the concentration of mixed, that is increase. it has gone up from 50% -- up to 50% from around 45%. join us for our exclusive interview with the vice chairman of ibm. the opening trade is next. this is bloomberg. ♪

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anna: good morning from linda. i am anna edwards. nasdaq futures and asian equities lower on fear of