that's all for this edition of "dateline." i'm andrea canning. thank you for watching. [music playing]

you the bank of england hoped, and you can see sliding chemicals down a fraction as well. the cpi numbers that i mentioned, uk inflation expected in october, 2.3% of the year, and that is a step up from 1.7% like we saw in september. was the biggest month-to-month increase to the year, inflation in 2022. core inflation also came in higher at 3.3% on the year. as you would expect, they are munching in the green, over the 30 year, the ten-year handle, 4.48, and at the short end, an extra 4.5%, so just shy of that level. trade, high yield this morning,

the has been an other strike, that has been he minimized story on cable, 126, 74 and the washout from those numbers. the banks. look at how the sector is trading, as we say again, a longer story that has been reflected in lloyd's, all leaning positive this morning. the casualty though, were the homebuilders, and you can see those stocks this morning, as they move throughout the session, the red ink is deepening, in fact, they are modestly down, but now more than 1% on parrot. uc berkeley by 8/10+, persimmon suffering done more than 1% and taylor wimpey done 1% as well. so, all of these things down on the back but now, in hopes that interest rates might be lower, but a slower pace of lowering would be impacting demand, potentially. let's get them some thoughts with gerard, who is the head of economic strategy. thank you so much for joining

us. there is certainly a washout from the interest rate expectation that is that a granular level on the real estate for school to what we see more broadly on the banks as well, just weigh in on that today. >> yes, good, good morning and thank you for, for having me. you will look, you know, we have had big divergence, between expectations in the euro zone and the interest rates there, and what will happen in the u.s. and funnily enough, if you like, a lot of bob proxies stocks in europe have not really benefited from that, you know, so, real estate has been the big pressure recently, despite the pressure on interest rates, expectations in europe. so, you see, we start to see a bit of correction on that. i would expect. >> arnaud girod, i want to get to some breaking news at this hour, because we have been

closely watching the geopolitics of russia for retaliation for ukraine using u.s. weapons. the kremlin saying no comment on the kyiv and aerotech morning. putin going on to say that constantly-- putin constantly states that he is ready for contract-- contacts and negotiations on ukraine. putin also says the option of freezing the conflict will not suit us, these are comments from the kremlin at this hour. it is important for us to achieve the goals that everybody is well aware of, outgoing biden administration doing everything to continue the ukraine war in remaining time they have and so, to blame russia for the wreckage of cables on the baltic sea, saying we will take all necessary measures to ensure the safety of russian critical infrastructure from attack. hard to ay whether reports of biden approval antipersonnel mine cranes are true. so, this is from the kremlin at this stage. but what you take about the geopolitics of ukraine, which seem to have stepped up at this stage this week?

>> well, you know, we have an increasing pressure from russia into what could be the beginning of this discussion for a cease-fire or what is even piece maybe, in ukraine. so, the russian power is trying to take advantage of that and come to the table and a maximum position of strength and that is leading to this very significant and worrying incremental tensions that you mentioned. so, now it is up to effectively a bit of patience probably nothing i would say incrementally happening. so, as you can see, markets are holding, i would say our remaining rather, you know, looking a little bit through that. of course, betting on some stocks, you see a bit of pressure on defense stocks, in particular.

from that, but look at the oil markets, and they are ignoring, essentially, this development. so, so far i would tell you it is big headlines, obviously concrete news in ukraine, and don't want to underestimate what is happening, but for markets under pick, it is all about what will come next at this negotiation table. and that is-- that matters for europe, obviously. >> indeed, it does. i want to get some thoughts on how we were tracking the european indices, because since the election and with the incoming trump administration, there was a lot of noise around the united states, but somewhat left behind was the trade around european stocks. what could change the narrative in your view? >> yeah, so, look, it has been a disastrous year for european stocks on a reality basis, not an absolute basis. it is important to flag that.

it is very frustrating for a lot of global investors that have been exposed to europe. but on an absolute basis, and is not really the case, you will have a total return of about 8% this year, so it is far from being disastrous, but on the other hand, the u.s. have been doing extremely, extremely well. and china, by the way, has caught up, also very significantly. so, you know, the narrative i think is where that could change are falling. first, you know, a lot of european stocks, are exposed to america, you know? and i would expect that, whatever trump has to support to existing the american economy will be favorable to a lot of european companies, so that is i think the first part of the power. and secondly also is how china and europe will react to the trade agenda. and they are, of course, it is where there is a lot of uncertainty, and where we can only speculate at this stage.

my perspective is that both europe and china have a lot of, i would say resources that they can use to offset, i would say, the concessions that they will have to give to the u.s. and to the trump administration, through fiscal spending and conception recovery and both areas, actually, so, you know, you have to meet domestic story recovery and that has to happen in china, that has to happen in europe, before, i would say, offsetting some of the pressures that would stem from the trump administration. and last, i think trump is also inspiring, if i can say so, for europe, in a number of aspects, and deregulation i think is the big thing. you see the cdu in germany talking a lot about that in their agenda, and i think that is a good agenda for europe overall. has been pushing that direction too, but now things need to happen. this new commission is starting

its mandate right now, so they had better get to work. >> arnaud girod, that his eyes strong message. can i ask you about some of these indices we are seeing now in europe, because it feels the sideways trade in the general stock market, the docs is a clear out performance for the selling we are seeing up front stocks that seem to be grinding lower into the year end. can you see a clear differentiation between the european boards and trade? >> so-- well, when you look within the european market, what you'll find is that the sector composition will have played a very big role this year and explaining the different geography, the different indices performance. you know? and so, typically in the decks you have had a great performance of some of the software names, sap is doing great, fantastically well this year. and so, that has offset some of what we would perceive as industrial is themes, such as

automotive, in the dax. in the case of the 40, nothing has been doing well for the french market unfortunately, we had domestic stocks under pressure, the political landscape, really ravaged this year, and we have had the whole export machines, with the luxury in particular also under pressure, so nothing has been going on very well for the cac 40. all in europe they have been going well, so that is also a theme that could potentially recover or continue doing well, sorry, if this agenda that i was talking about earlier, you know in the narrative in europe is finally changing. so, deregulation, more focus on domestic growth in europe. >> arnaud irod, thank you for joining us. head of economics and several.

a quick look at u.s. futures ahead of the trading station today. we are seeing some of those early indications are still hold around 136+ on dow jones. so, suggesting a bounce of about 30%, so a modest increase expected, the dow potentially stopping that four-day losing streak, but the other boards also climbed higher, ahead of what could be a big tech day as we watch nvidia numbers. donald trump has picked howard lit nick to head the u.s. commerce department, with the president-elect saying he will spearhead the nation's terrified traded and agenda. lutnick is the founder of counter fitzgerald and the coach about the transition team. meanwhile, ceo, mark rowan will reportedly hold talks for the treasury secretary role, according to the fte. orchids have been closely eyeing who is slated to fill the position, with several proposed candidates jostling for the role, including howard lutnick and . and linda mcmahon is going

to lead the u.s. education department the progressive had been running for the commerce row. mcmahon served as the small but in business administration during trump's first term as president. our colleague states we i will be speaking with goldman sachs chairman, ceo, david solomon. don't miss that at 16:00. and i will be meeting with morgan stanley, our agents will be speaking to him, light from the morgan stanley annual asia- pacific summit tomorrow, at 2:30 gmt, forget that is morgan stanley putting the s&p 500. coming up on the show, more list of pics for you, the sole london investment conference picking up this week with post u.s. investment and focus, we will bring you an exclusive interview with high ground investment management founder, edgar allen. that is after the break. ah, these bills are crazy. she

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says it expects to push into new markets to generate an extra $22 billion per year. by 2029. the company says it expect around $4 billion to come from sales of pc chips. this has been a big picture of what we have seen around the ai. the traditional shares market share, saying it expect revenues in the automotive sector to rise 175% in the next five years. to roughly $8 billion. qualcomm ceo, christian, told cnbc he is expecting the pc market, in particular, to continue to grow. >> we have seen a significant attraction in cbcs from our oem, we have successfully started on the x series, and it is also good to see arms showing our devices, when they

match it to investors that there is now arm into the pc echo system. microsoft ceo told cnbc he sees artificial intelligence leading all of the company's software and applications. speaking of the launch of microsoft's annual mcknight conference in, the copilot application has proven to be one of the company's most transformative product. >> ai is doing that for all knowledge work, whether it is and customer service, marketing , whether it is and adds, whether it is in sales. at this copilot studio has been transformative, it is the fastest, just to put it in perspective, it is the fastest selling adopted suite of microsoft 365 ever in our history. there is not a single application that is not going to be an ai application. so, a little bit of the supply- side you are seeing here is a real catch up growth. because applications are all changing and being morphed by the new platform. >> the sole london investment

conference kicks off this week with the post u.s. election investments, as well as artificial intelligence and focus. and joining us now is edgar allen, who has founder high ground investment management, edgar, let's get the politics done and dusted up, what you think of the incoming trump administration, what you think it means for europe? >> well, thank you very much for having me on today. i think everybody is trying to work out exactly what it is going to be mean for both europe and the u.s. at the moment. i think probably the most significant effect for europe is going to be on the political side. really, you know, if you are a center-left politician in europe, you should be quaking in your boots. whereas, if you are a right- wing populist, this is a great result for you. what we are seeing is generally, when the u.s. moves somewhere, politically, then europe tends to follow. so i think quite of a few of the things we have seen in the u.s. in this stark agenda divided the election, increasing polarization, and also the embrace of policies,

which were previously outside of the mainstream, i think we will probably see those things come over to europe as well. i mean, we really wouldn't have thought we would be seeing a military roundup undocumented migrants into camps, but obviously this is not ne of the administration's policies. so, things which were, previously, if not unthinkable, certainly only held by a very small minority but will now become more mainstream policies. so, i think the policy is the single biggest area, but also, your security is a huge issue as well. obviously, trump in the past has been outspoken about things like germany's reliance on russian gas, which we have to give him credit for, he totally got that one right. also, extremely critical of military spending, by nato countries, previous administer should have been as well, but obviously trump threatens to pull the u.s. out of nato completely. and so there's a lot of concerns over that, over the security

situation, and indeed, what would happen with ukraine. obviously trump is generally been quiet against the war, he says he's going to stop the war very quickly. we don't know on terms he is planning on doing that, but ukraine is clearly very dependent on u.s. military aid, there's not really enough capacity at the moment for europe to philip and avoid if they were going to stop. so, that is a huge issue as well. for-- for europe. >> right. edgar-- >> this is going to be interesting. >> edgar, let me just jump in and push want to ai, because we did have an announcement this morning says the stability report was talking about the potential for a bubble in stocks, related to artificial intelligence, you share those concerns? you think that the i trade has got too much momentum at this point, given the overinvest we are seeing and some of those areas? >> i think that's-- i think that is probably the case. obviously it is one of these areas which is very hard to

value. we think it is going to be a chance-- trump's transformative technology, but at this stage quite often the leaders don't turn out to be the leaders of the long-term. for example, if you-- back when i was doing technology companies in the 90s, you are very, very in favor of social media, will you would have been proved right, but if you put your money into geocities you would have been wiped out, and you would have bought my space and been wiped out again. similarly, you would have bought yahoo and excite and sg for these companies, all of which went to zero. so, i say that there is probably some hyperreality that will have a significant impact on our society, but some of the valuations we are seeing are really making an awful lot of continued market leadership from today's leaders. >> the consumer in focus come after we have had walmart numbers overnight, and i am reading your report, from back in july 2 and esters, and you are talking about some of the

missteps we have seen in the consumption space, from walgreens, nike, microsoft, dollar general, american airlines, starbucks and some of the saw change too in terms of leadership, but walmart's messages look, people are spending still and they are spending on nonessentials, from toys, although some of us would argue that is essential for entertainment at home, two televisions. what uss is the path from consumption here into the holiday season? and whether americans truly are under the hammer on the spending? >> well, absolutely, it has been quite a mixed message this year from the u.s. consumer, but the report yesterday was obviously very, very strong report. and it bodes well for the holiday-- for holiday spending. generally, we are seeing strong investments demand, investment spending, high employment rates in states, so, it looks like maybe the consumer is now getting a bit-- a bit strong again. which is good to see. i think some of the other changes that will continue to

see, the dollar stores are still suffering, starbucks still having some issues as well. so, it is not universally a good picture, but certainly a very strong report from walmart. >> on your radar one of the stocks you have taken a position , how is it playing out for you? >> well, it is playing out pretty well, the company did have a wobble earlier on this year, some fares were lower than expected, the stock sold off quite a lot. so, that is when we really build the position of. so, that was a good time to buy the-- good time to buy the stock. it is a company, which is consistently delivered a high return on equity through the cycle. it has got large structure compared to other, european airlines, and it is growing its share, you know, very well in europe. so, it is one that we are still confident about looking at the future. >> edgar, i am just digging

into your month and portfolio exposures too on a monthly basis and i can see germany, still one of the bigger positions in the portfolio. what are your hopes for this market? because a lot of politics at home and we are questioning this morning whether oliver schultz, the chancellor survives, but there's also an international factor being a cyclical market. so, what is your view on some of the triggers are the catalysts that could underpin the dax from here? >> well, i would say that our positions are generally-- they are very much stock by stock positions, rather than one on the overall general market. obviously, germany, with a large automotive sector and a lot of automotive supplies as well, really suffering from chinese competition that and, also, as you say, you have an unusual degree of political instability for germany as well. we are not really sure what is going to happen with the next government. so, i say, definitely, definitely some issues at the country level in germany. but, from our individual names we have got in there, you are

well managed, well-run businesses with very strong global market shares, so they are not really dependent on the german economy. >> again, thank you very much for joining us today. we do appreciate the time. edgar allan with us, founder, high ground investment punishments joining us on the show today. we will continue our coverage of stone conference when our colleagues speak with the founder of muddy waters, carson block, you can catch that interview on 1800 gmt. provider teaming up with several media groups to make their content available on its own ai search engine. the company is adding sky news, the guardian and g mg to its list of partners, basing on how much of their content it is used to generate ai answers. ceo and ideologue chairman, bill gross, discussed his vision behind the service. >> the three places that the revenue comes from are either from subscriptions, or from micro-transactions or from advertising. and all of the services are

making tons of money, like google is making tons of money from advertising for example. it is just, i feel half of that revenue should go out to the people that made the content that shows up in the answers. so, the money is there, it just doesn't currently being shared with the people who created the content that that is what i want to change. much more to come on the show. let's get up to arjun who is at slush in helsinki. >> reporter: while ai has been the talk of the town here at slush, don't forget about the meta-verse, our next guest, ceo of them probably still big on the meta-verse. we will get into that after this break.

welcome to street signs, i encourage on these are your headlines. easy be wants stability remains

vulnerable, flagging and sustained fiscal policy and some euro zone countries. we will hear from the vice president, at 12:00 gmt. european markets have a positive started trade with three segments of decline. underperforms as it comes in higher than perspective, and above the kremlin says raising the ukraine conflict quote, does not suit russia, while the u.s. embassy in kyiv warns of a potential significant aerotech today. the ukraine fires long-range ballistic missiles into russia for the first time. futures point higher stateside, where all eyes will be on ai darling, nvidia when it reports its earnings. a look at european markets at this hour.

we have been traveling in the green for go out most of the morning session. so far we have now bounced a little bit further off of the baseline, 6/10 of a percent higher, so stepped up even from a last check. in terms of the individual markets, empowering some of the changes, we have got the french market stronger by about half a percent, outpaced by the xetra dax, well outpacing the ftse 100, where those fears are lurking, some have propelled the banks forward in terms of italian stocks trying to keep pace up for tenths of a percent. the sector gainers and losers, it is a busy day, when i look at tech. the nvidia numbers, some silicon makers here in europe tracking up about 1%, along with construction material stocks. resources, a bit of a cyclical that to this market, and that sector has seen a little bit of nibbling around the edges of

recent trading days, so again, we are so farseeing that sector track higher, but it is bouncing off some of the november lows. financial services also getting some traction up three quarters of a percent. the losers are a couple of clear ones, media autos are moving lower along with real estate, that is a sector the inflation story just derailing the trade today on hopes that we might be getting to a lower level on interest rates in the uk, but that was dashed to an extent by the high cpi numbers. chemicals rounding out the losers, but even with a green arrow. some of the individual socks we are following at this hour? ig mattel has threatened with wells fargo, unlike anything it has seen in germany for decades, if the company insists on plant closures and large- scale payoffs. the union's chief negotiator says bw problems will not be negotiated simply by cost commented workers are willing to make concessions worth ,■.5 billion. deutsche telecom says

subsidiary, t-mobile has denied reports it plans to stop working with nokia after an analyst posted online that there was a chance that nokia could be dropped, in favor of competitor, erickson. shares in uk software firm, sage, has more than a fifth in after operating profit rose more than 50% in 2024, joined by 2.2%, each margin increase, the firm said it would launch a 400 pound share buyback. let's get out to slush, where it is underway in helsinki, bringing together startups and venture capitalist from across the tech sector. arjun joins us now, arjun, it will be one of the great destinations to go to this year, how are things on the ground there and is it a packed event? >> reporter: yes, snowy on the ground that it is very busy in here, a lot of investors around, a lot of startups around, this is one of those tech events, where you really hear from some of the investors and some of the more innovative

startups we have been talking all morning about artificial intelligence and its future, but don't forget one of the other big buzzwords that is still around, the meta-verse. and to get into that topic i went to get to the ceo of improbable, herman, look, your company, improbable has gone through so many twists and turns and pivots, what are you now? >> well, we have always been building the technology at the heart of the meta-verse and the economy, so primarily we are best known for and!, which is our meta-verse platform used by everybody, but we are also a venture builder, building companies on top of our new technology as well. >> stray question for you, has the meta-verse failed? we have looked at steve okun six losing building billions a quarter, and companies sunk into what the meta-verse is, is this a product and technology that is-- >> if you talk 2012-year-old or 15-year-old they will tell you they are spending all of their time in minecraft, roadblocks and fortnite. over 1 billion people every month are inside these worlds having ever more sophisticated in experiences and even taking part in economies and even

getting jobs. so, i would say the meta-verse, the fleshy version of it for an investor call at meta-, maybe that hasn't succeeded, but the cross daxton metaverse and all of us are building for is absolutely. >> is it that we thought metaverse was, the ideas and definitions have changed, so, we thought it was going to be sitting there with headsets of these virtual worlds all day long, but truly it is something a bit simpler than that at the moment. >> so, i wrote a book, called virtual society, trying to understand the underlying principles of the metaverse and what makes it valuable. it is a network of connected experiences, where value can move from one world to another. immersion, i.e., we are headsets is tangential, what matters is presence, how those worlds field, in the sense of how the interactions they enable. so, people can have more and more fulfilling experiences, a good example will be baseball. this year, we have gone massive events inside virtual ballpark

in major league baseball, for the first time ever alleging thousands of people to interact simultaneously and watch a get together and me together that never would have otherwise, and that is a huge business opportunity right? has sports is so under monetized and able to provide experiences for international audiences, i think that is where the opportunity is. >> that doesn't necessarily involve virtual reality headsets could >> is, to me it is it like setting is at giving if you are on your phone or pc? they are oth games, these are just interaction models. >> of the other was interesting, this is passport, what other areas do you think could have an impact? >> yes, games, music, anywhere in which the goal is to have people having social interactions that really couldn't exist in the real world but are happening at a really big scale, or whether they allow a lot of participation, right? so, if we do things like music experiences, we did a large interactive party for the cape k-pop band twice. >> what are the business models then, herman, that can sustain a business like yours? you have got a platform, is it a business model? what you think will be successful once?

>> we had this year as part of our large venture model, we are actually now trending towards a really interesting economic model, even for meta-verse technology, which is that there are three layers of monetization, you can create value through direct sales of technology, the company is building on top, but the real value comes from digital asset sales, items, assets that can be sold and operated across a wide economic network. one reason we are launching a block changes because we couldn't find an underlying blotchy that could support the skill necessary for thousands of people to have economic interaction that is a target >> i have heard this for a number of years and that actually it gave items, or in-- in a metaverse items can be put on the bloodshed, why do they need to be? >> so, they don't come if you're just in one world. but just in the definition of the , the opportunity here, like free trade is taking the value from one world to another. so, major league baseball, this is something we contractually agree to cross and squared, if

they sign a teacher to attend, if it isn't on what we do with that t-shirt? but with our technology in the way that we have created an improbable network, that can be used in any other experience, and why that is but as it effectively reduces the content cost for every developer that there's an entire stable of assets, drives agency for the fan who can on something, even shades of the, have it signed and moved from world world and even hearing about this for a long time and it not coming to fruition, because people hadn't invented the tech. i think where improbable has been able to take the risk and taken many years to do it is to solve the really hard problems of actually enabling, at this point 20 billion messages a second on the backend to make this possible. >> and i want to get your take also one crypto's role in this. we have seen a revival, somewhat a surge in the crypto markets more recently on the back of the presidential election in the u.s.. does crypto have a role in the meta-verse? >> crypto not only has a row, but it is pretty essential for the fact that if i build a

business on fortnite or on roadblocks, the value of that business will never be greater than value of roadblocks or fortnite, but if i make a shop in a city or build a new closing brand it could be incredibly value right? the reason for this is the underlying platform rest at the lack of agency and control of a business on top of a platform, it is not an issue for the users, it is an issue for that business and coming up with an interesting revenue pole. the value being extracted from the underlying platform. crypto allows companies to co- create virtual worlds that share value in a much more organized way and a much more predictable way in a way that makes the business more investable. so, other side can only be or anyone else, they have their own business that they own, and the block chain is used to ensure that basically, they can keep owning that and keep building their own stop on top. >> just on the crib crypto markets, more importantly, wanting i was told a little while ago was, look, the markets will be supported by use cases of crypto. at the moment, it feels like it is just being supported by optimism that, perhaps the regulatory environment in the u.s. may be more relaxed-- >> there's no question that crypto is it took a long time

for us to get comfortable with it ourselves, we have only started building a block chain after the court meta-verse technology has come to be quite perfect right? i know we know there is a problem that we need to sell. i think there's a couple of use cases right now that is very real, one of them is remittance. if you don't have a dollar bank account and you live in a country where you received dollars, you can get a click through that. i think the other big one for us on some of our ai working improbable is really ages. part of the meta-verse is going to be and has been intelligence agencies interacting with one another. they don't have bank accounts, how they get money? there's an entirely new use case around economies. >> thank you so much for your insight. we pull all of those differences together, the , ai, blotchy technology. that was herman there, ceo of improbable. what what in the meta-verse and what he thinks that we are going to see some real use cases and growth going into next year. for now, karen, but you. >> great, for that, arjun.

let's push him to geopolitics, ukraine has carried out its first strike inside russia using us-made missiles to u.s. officials and msnbc. they say to have shut down five missiles with fragments from another pulling on a military facility in the branson region, causing a fire. meanwhile, russian president, vladimir putin signed a new nuclear doctrine formerly lowering the threshold for nuclear weapons, including of russia subject to an attack a nonnuclear country, which has support of a nuclear state. nbc's keir simmons filed this report. tonight, anxious, after ukraine fired american-made long-range missiles, called attack ends at a nuclear armed russia for the first time. according to two u.s. officials. it comes just days after the white house approved their use outside ukraine's borders. tonight, president putin has lowered the bar for russia's use of nuclear weapons. under a new nuclear doctrine,

russia could deploy its arsenal if attacked by a nonnuclear country allied with a nuclear state. a message, unmistakably directed at ukraine and the u.s. >> i'm kelly o'donnell in rio de janeiro at the g20 summit, where dozens of international leaders have been gathered, including president biden and russia's foreign minister, sergei lathrop, who today called the ukrainian missile attack an escalation and called talked about putin making changes to how russia could use it nuclear arsenal. >> we are strongly in favor of doing everything not to allow nuclear war to happen. >> reporter: us for the attack comes ukraine says they will help resist an russian offensive, supported by north korean troops just month before resident elect trump takes office and is expected to demand a deal. ukraine today, marking 1000 days of war with russia, with talks on the horizon, but no

sign of a compromise. president putin has made many unnerving nuclear threats. tonight, one european leader calling it rhetoric. >> u.s. embassy in kyiv has closed today, amid specific information about a potential significant air attack. employees are sheltering in place, officials warned american citizens to be prepared to take shelter if an error alert is announced. the kremlin declined to comment on the embassy closure and air attack warning i had on the show, we will get a tech check ahead of nvidia's earnings today, that is coming up after the break.

comcast is expected to confirm it's been off networks including cnbc and msnbc. that is according to people familiar with the matter talking to cnbc. the separation is set to take about a year, with the new entity to be read by nbc new- media group boss, mark lazarus. comcast owns nbc universal, the parent company of cnbc. and as we approach the end of the show, here are three things to get you up to speed ahead of the open on wall street today. we hear rom a string of officials including fed michelle bowman, boston president, susan collins today. while the u.s. department of justice is expected to propose final remedies for google in an antitrust search case, and it is nvidia they come in case you missed it. the chip giant set to report third quarter earnings after the market close. welcome nvidia stock to rise by 5%, tuesday, re- anointing the firm is the world's largest company by market cap ahead of one of the most hotly anticipated earnings

releases of the season. the court of revenue has seen a surge by more than 80% of the year, according to estimates, for sales of its blackwell chips in the spotlight amid reported overheating issues. been what is with us, chief analyst inside, ben, thank you for joining us. it is a great set up, the market analyst, saying look, we can see what this one might look like, because it is quiet earnings season and as a result we can see the options trading, the viewers a and half percent today on the back of numbers, which is interesting, because my first question to you is going to be, with a market cap of about almost $3.7 trillion, is this as good as it gets? >> welcome i think that is the interesting, with nvidia cam, which is that, you know, it is the pressure that it is under, recorded record revenues last quarter, and i think the biggest challenges are the expectations that are just so high, and this kind of punished them last quarter, when they delivered really exceptional results and some imitators were

still left of disappointed. to me it is a bit reminiscent of apple in the past, with a used to knock it out of the park with their resultant people still seems to question why they weren't good enough. so, it is going to be interesting to see how they do. >> we can look at all forms of tech players here for some more information flow, because the problems that nvidia is facing is on the supply side, overheating issues, they are really trying to come up to this 10-year-old challenge they are up against. how difficult is that to work a solution to get the supply cranking out to meet the demand? >> it is unbelievably challenging for them. you know, nvidia is the primary supplier for all of this massive ar market growth, the ai slate cycle continues to deliver great results for them. there's a few recent notable deals, there's the deal with softbank, which with cna supercomputer being built in the japanese market, and that will use those new blackwell chips, and so all eyes, as you say, will be on that command any guidance from the ceo of

nvidia, jensen, to see what he says with regards to any production delays or issues, with the delivery of those chips, because they are very much pivotal to the future growth and the success of the company. >> ben, correct me if i'm wrong, but the reason why nvidia has been so successful is because it is a one-stop shop. the solution to build a i very quickly is all there, under one roof, and it is a solution that comes with a significant price tag. if competitors can prove that they have got the solution that comes through cheaper and is energy efficient, when does that start to shrink what nvidia has? >> that would be a big challenge for them, they have done it an incredible job putting themselves in with their framework which allows people to develop around the platform very easily. but they still seem to have a good lead over rivals, despite some of the advances by companies, like amd, intel, and i think they are just writing this incredible, eye watering level of investment across the board. we have seen all of the big

tech companies, alphabet, amazon, methow, microsoft, spending $100 billion come i think it was estimated for the first six months of this year, perhaps even $1 trillion over the next five years. so, i guess the other challenges if the ai bubble starts to burst of things start to slow down, which is something we think will happen at some point. >> you think it will happen, that is interesting, ben, because the acv said stability review today of financial markets was pointing out that it is worried there could be an ai bubble. where with this hit? do all areas of the ai universe get hit as of the bursting of the bubble? what is most at risk? what could be shielded from here? >> welcome i think the interesting thing here is you are sing tech leaders doubling down on a high-end kind of almost over investing. so, we saw comments from the ceo of google earlier in the year, saying that he felt and this is a quote, the risk of under investing was dramatically greater than ver investing. mark zuckerberg over at meta said he felt the risk of-- he

would rather risk building capacity, before it was needed, because he doesn't want to be too late. and the danger with that kind of approach is that people can get ahead of themselves, and we could end up with more capacity that is required, equally, people aren't prepared to pay for the services that stops to- - that starts to stop that flow of demand for these chips as people scale back and reach a level of availability of their ai platforms, which could see that bubble burst to some extent. >> ben, i had the same conversation last week with brad smith, from microsoft, and his view was like, i would rather have a bad couple of quarters or a better quarter than a decade, which is why we are making this investment now. and was a good as it is very similar to the mobile era, just as you have a gigantic mobile behind you, saying every company that is starting up today needs to have ai as part of its dna, just like back in the day every company needed to have some sort of mobile strategy, do you agree with

that type of comparison and cycle that the future really is an ai one? >> i think there is a lot of investment, a lot of hope around that kind of philosophy of betting everything on ai, but it does have to deliver at some point. so, right now everyone is doubling down, they are investing, as brad smith said in your interview, he is saying that they have to bet on this right now, it is a killer in a cornerstone for what microsoft are doing and what many other companies are doing, but at some point you have to than start delivering returns on that investment. and that is going to be the tipping point, when we will see whether this really is a long- term, sustainable situation or whether there is a bubble that burst and there's a bit of a reset. >> to the point around profitability, if we look at nvidia poll margins, they are fat, big chunky margins here, but they are also declining slowly in the latest set of core quarters, 78.9 in april, 75.70 july, dr. potentially 75 today and maybe 73 in the future. what you make of the decline that we are seeing some of the

dissent in those margins and at what stage does that matter for market participants? >> some of that comes down to supplant obviously nvidia has been very constraint on supply, so it has been able to keep its prices high, some of that will come down to the competitive landscape from where other manufacturers can come in and challenge nvidia that will inject a bit of competition. but ultimately, i think that margins will decline over time, because it is a very attractive market segment, more players will come on, competition will increase and that will put pressure on the pricing. >> ben, give us another take away message, because nvidia is seen as a market so huge that this is a market cap swing, this could be bigger than 95% of the s&p 500, but let's say there are other companies listed on the market that are relying on this ai story being executed smoothly, because they are building out their ai strategies and trying to monetize, so, how do you see nvidia in the mix and what that means today? >> welcome i think you know, as you say, ai has become this

cornerstone of anchor technology for the next wave of growth, and so, they are very much the bellwether for this whole category, and if there is any kind of deviation from the growth story, that will make other people nervous. and as i said, you know, big companies, massive, massive tech giants, like alphabet, amazon, meta and others are pinning a lot of hope and a lot of investment around ai . as a cornerstone for their future growth. just look at microsoft, lots of new information around what they are doing with copilot, for example. look at qualcomm, another chipset provider doubling down on ai, their latest platform is very much centered around that. they have their ai invested, i think yesterday, they have been talking extensively about how they see ai is important. so, i think this will be very, very important earnings, cool and update from meta-- excuse me, from nvidia, which will inform the whole market how well this trajectory is going. >> ben, thank you for getting her set up today, analyst, ccs

insight. and on that when we have had those very interesting comments from the today saying that high equity evaluations point to the risk of a sharp could corruption, particularly the concentration on market valuation on a handful of firms increases the threat of shock. so, we will be joined by the vice president of the ecb's latest financial stability report that is ahead at 12:00 gmt, so this ai risks, very key to understand from here. european markets, they are getting ground tracking north on the xetra dax and u.s. futures come i think some of that sentiment really coming from the dow expected to snippets losing streak. the s&p 500 expected to gain even more territory to thank you for joining us today. i am karen schaub. what exchanges up next. or square

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it was 5:00 a.m. welcome to worldwide exchange. investors getting set for what could be the biggest market moving event since the election went nvidia reports its latest quarterly results today. we have to keep things to watch. president-elect trump reportedly narrows down the field of candidates while naming a few more controversial peaks. and shares of walmart prime opened and all-time highs as another big consumer name get set to report. plus