th ever before. i definitely feel like i'm a resilient and strong person now, yes. [wind howling] ♪ dan murphy with you. this is "street signs." this is the program. let's get to headlines. first, nvidia third quarter sales double, but fall short from sky high expectations and sending trade lower in pre-market. adani with the u.s. allegations against the chairman

gautam adani. the stoxx 600 is down in early trade on pace for the fifth straight negative session. jd sports trading at the bottom of the pile as it warns discounting will dent full-year caution. and bitcoin rally nearing 100,000 usd and donald trump considering a white house post dedicated to crypto policy. welcome to the program. thanks for joining us for the next hour as we walk you through what's moving in europe and get you set up for the european and rather u.s. trading day ahead. let's dive in with the top story. it is, of course, nvidia. shares pairing losses down around .70% after dipping 5% at one point. q3 sales beating expectations at

$35 billion. that's up $5 billion on the quarter and almost double the period a year ago. the firm telegraphed slower revenue growth in the current quarter at just under 70%, way down on the 265% figure in q4 in 2023. many of the firm's customers, microsoft and openai have started receiving the blackwell chip. the cfo on the call said it is set to out supply. let's get one take on the numbers with arjun kharpal. arj, is this the case of basically investor he expectati being set too high and nvidia needs to do the work to realign the markets back to reality? >> reporter: dan, i think you are absolutely right.

expectations were sky high going into this report as they have been for nvidia the last few quarters. you mentioned the top and bottom line figure was the profit doubling and revenue up 94% year on year. these are astronomical rates we are seeing although they have slowed slightly from what we are seeing. you saw that slight dip in after hours trading. ertainly in the pre-market, it is more around the guidance. i would say this is going to be key what nvidia comes out with. they guided for the current quarter revenue of $37.5 billion u.s. dollars. that is just ahead of consensus. it wasn't a huge beat. perhaps those looking for bearishness with nvidia, that's what they are looking for, but expectations remain sky high. one fact of the earnings call was certainly around the

blackwell chip which you mentioned and the company shipped 13,000 to the customers and in hands of major partners. the demand for the product is staggering. the company is on track to exceed blackwell estimates of several billion dollars. there are big expectations going into 2025 for nvidia. look, it still remains to many the only game in town for the critical chips and service stacks that are key to training these massive huge a.i. models that many companies are investing in right now. the question mark is while nvidia is dominating, the market is still trying to work that out, dan. >> thanks, arj. let's bring in the senior portfolio manager at mirabab asset manager.

do you agree that expectations were perhaps set a little too high here? >> good morning. thank you for having me. so, it's the numbers for nvidia that maybe isn't good enough these days. every quarter the last eight quarters in a row, they have been beating steadily. as you said, the guidance may be a little bit -- little bit less of upside. there is still some upside, but not as much upside as people had hoped for. the reality is this is a transitional period for nvidia that they are going through this transition from hopewell to blackwell. you would hope the massive periods where people would stop buying the previous chip and just wait for the new chip. as you mentioned, as the previous guest mentioned, demand

is staggering and exceptional. that's the old chip. people are still buying that because it is straight ahead of the competition still. this would normally be a difficult transition for any phase. the verbs and adjectives that nvidia is using to describe demand is very, very strong still and i think it just got a little bit ahead of expectations but, the growth is coming and it will be very, very strong. >> just on that though, paul, the valuations are looking a little stretched. what's your view and what are you advising clients when it comes to exposure for nvidia? >> interestingly, the previous segment was about valuations and when it starts to matter. i think valuations matter at extremes. i don't think we're there or with nvidia at the moment.

if you look 12-month forward basis, it is trading 27 times forward basis for 50% earnings growth which is relatively attractive still and providing lots of free cash flow growth and if you provide the upside, it is the numbers from earnings and what does the upside come from? one is hopper growing significantly in this quarter which they said could possibly happen and the second bet is the supply chain sorting itself out. those estimates will go higher and the multiple will go down. i don't see the valuation as being an issue here. >> i thought that it was interesting as well. ceo jensen huang says it is going full steam. a lot of analysts would seemingly agree with that statement. you say the demand for nvidia's a.i. chips is going to be sustainable overcoming quarters. what's the big gest risk for ths

stock, paul? >> the risk is the hyper scalers blink and decide the amount of cap ex they're spending on these chips is not sustainable and not getting returns on them. that is the risk at the moment where you are not seeing any of that and at the moment it is a race to get the newest chips as quickly as possible and to be able to provide them to customers as quickly as possible. it is very much still a race. at some point that will change. there was a question on the call yesterday about the digestion period you always see in these cycles. the answer was the demand is massive and will go out to 2030 and be very, very strong over that period. the reality is that's not going to be a straight line. there will be peaks and troughs and you foster growth slower. there will be digestion periods and that will be led by hyper

scalers cutting back on spending. at some point that will come, but notyet. >> and, paul, outside of nvidia, perhaps outside of this space, what else do you like in this environment? >> well, i think it's been an interesting month already with elections, obviously quote/unquote production in the market. it looks uncertain to year end. nvidia was a good one to get out of the way to get the results out of the way. still some political uncertainty around nominations and whether they will get accepted and whether that will have impact on the policy in the u.s. the incomes in aggregate are extended. some of the names maybe

benefitting from a.i. rollout such as service now that are benefitting on the other side of upgrading their solutions to consumers to better solutions, but we still feel those valuations are a bit more stretched. again, those companies which are able to monetize a.i. and there are not many of them. >> paul, talk to me about the markets and the macro at the moment as well. it's been interesting to see yields continuing to move higher in the united states in particular, but also now in europe. do you think equities will be able to rally through what has been a rising wall of risk not just on the yields front, but on the geopolitical tensions and the conversation with the ecb and the fed are going to do in december too? >> absolutely. i think this is key risk for the markets at the moment.

you saw a lot of the ten-year ramp up into the election and this carried on since we're about to stay on the ten-year. the question we keep asking ourselves at what point do equity investors get uncomfortable with the ten-year. i don't think investors are particularly comfortable here. i think, ideally, you start to see that come off maybe a little bit of understanding that trump's policies will be less inflationary and maybe some whose nominations, which are on the more extreme end do not get passed through and maybe a little bit of softening of data would all help to take a bit of that pressure away from yields which would then set us up for a rally into year end. that is the key thing we're watching at the moment. those yields. >> do you -- do you think the

fed holds as a result in december to wait and assess the inflationary impact of trump 2.0? >> yeah, i don't think we're going to see that inflationary impact for quite some time. so, that's very difficult for that to assess will they hold in december. at the moment, the slowdown in growth that we were seeing, were signs of summer, hasn't really material ize materialized. so, growth is surprising to the upside data and to the upside is consistent. inflation is not a massive issue. potentially, yes, they hold and give it some time before those electoral impacts come through. i think the primary impact of post-election is capital decisions will have been

deferred and now made. and so, potentially growth picks up at which point you have relatively good growth and inflation under control. do you need to be -- do you need to be cutting here? possibly not. >> this is when it gets interesting. paul, we'll leave it there. thank you for the conversation. that is paul middleton, senior manager at mirabaud. coming up on the show, we cross back over to arjun at slush in helsinki where he has already had a big morning. >> we have a guest waiting for me after the break. i'm going to zoom over. stay tuned. how do i turn this thing on? there are some feelings you can get with any sportsbook. ohhh! the highs! no, no, no. the no, no, noooos - oooooooo! the oh, oh, ohhhhs! now whatcha wanna do with this? but the feeling that, no matter what, you're taken care of.

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welcome back to the program.

we are tracking the markets here for you on cnbc. let's go straight to what's moving in europe beginning with the heat map. you can see it is a mixed section with negative bias. the stoxx 600 is down .3%. of course, traders digesting nvidia's earnings which were strong, but disappointed the market. for what we see for markets indices, we are tracking three losses in france. the dax and ftse mib seeing five sessions of losses. ftse 100 in the uk is trading above the flat line there. we are seeing sizable losses in italy and france and germany right now. in terms of the sector gainers right now, what is driving these markets is insurance up 7.4%. oil and gas up 0.09%.

industrials are lagging. the sector losers here by percentage decline. these sectors leading losses led by autos down 1.6%. led by he retail and household goods. a couple of stocks to watch. zurich insurance has announced financial targets for the next three years aiming for core eps growth in excess of 9%. the re-insurer targeting equity of 23%. shares up 2.2%. and proposals from elon musk and vivek ramaswamy in the u.s. asked whether this creates opportunities or risk for zurich. listen. >> this is difficult to say without knowing precisely what happens. u.s. for us is a big market.

it is 65% of what we do is in the u.s. so, of course, it matters a lot. usually deregulation is just good for business and we do better in a deregulated world than we do in a highly regulated world. again, i need to know more specifically what's going to be the proposals and then the solutions that they will approve in the congress. meanwhile, novo atris upgras midterm guidance and peak estimates for five drugs with multibillion sales potential. jd sports warning full-year profit will come at the lower end of the range after heavy discounts in october as well as demand. the british retailer posted a decline in third quarter sales. shares down around 12%.

and commerzbank announced schmitt as cfo. the uk competition and markets authorities are looking at competition issues in the multibillion pound cloud industry. two sources familiar with the matter told cnbc that the uk regulator is set to unveil the provisional decision detailing remedies of and ty competitive practices. the decision is expected to weigh on major players in the market such as amazon and microsoft. you can check out full details of that story live now on our web site at cnbc.com. the u.s. department of justice says google should sell its chrome browser and share data and search results with competitors to end its monopoly

online. in the court filing, it prevented rivals from accessing channels. google called the proposals radical and will have a chance to present its proposals next month and make a broader case next year. it says the doj approach represents unprecedented government overreach. and slush is under way in helsinki. arjun is zoom being bag with ba with us. >> reporter: dan, it under scores the way regulators are scrutinizing the practices of large tech companies and concern around the come dominance in th stores. gamemakers are critical of the way google and apple charge fees for the games and one company looking to change that.

i'm joined by justin, the co-founder of twitch. justin, you are building a new platform that you think might fit into the environment which regulators are scrutinizing big tech and app store practices and when gamemakers are critical of the fees charged on their platform. what exactly is stash and what's your solution to the regulatory concerns? >> stash is a platform that helps game studios connect directly with their players. in a couple of ways, we have a launcher that allows them to distribute and we have a web shop so they can allow players to buy the in-game items directly through a web site and engage on different dtc features to provide value to players on the web site. >> in europe, the digital markets act has come and we have seen apple forced to allow

third-party app stores on the platform. with the regulatory scrutiny, what opportunity does that present to you? >> what regulators are saying and what others are asking for is a level playing field. they want the opportunity to offer alternative payment methods and own their customers directly. we think there is an opportunity for us to provide that infrastructure for game companies to own their players directly. >> there is always talk about the changes in behavior from companies and, you know, we allow third-party apps. is the user ready to change their behavior? in the gaming world, we know players are dedicated and fans of the brands. do you think this is more than just a leash opportunity? >> we feel the app store is using native payments on apple and google is easiest.

to offer something alternative, it has to be better. it has to be more engaging. it could be customer rewards or a loyalty program or match making services they offer on the web site that are linked to the web shop. it has to be something that's better. a better experience. so, we think that game companies want to offer that to the game experience. our goal is to help the game companies offer that to the players. >> what are the issues in gaming which you completely change the game with the way distribution of content happened and became such a big platform. now we're talking about metaverse and cloud gaming. what are some of the big trends that will really stick in gaming that will feed into what stash is doing? >> it is everything around the game. twitch is around that. it is creating content around the game that was created and

people want to watch and have streamers engage with the audience. what we are doing with stash, we are allowing the game companies to provide the infrastructure around the players. loyalty programs to bring people back or match making services or content around the game. you really good as a game building a compelling experience and we're trying to help you build around that. >> just quickly, coming to this point in your view, the discussion of the way blockchain can be used on the payment side of the equation. there is anything for crypto? >> web three gaming is something people have been talking about for a couple of years now. we have not seen the compelling game experience appear yet. i think it's a possibility, but right now it is nascent. >> the ypto rally we have

seen, is there a chance for the capital to come in and build the web three that hasn't materialized yet? >> i think the market has been round bitcoin and realizing that is a value that people are believing in and pouring money into. the use case is things like gaming. you haven't seen that equivalent amount. someone has to invent it. >> quickly, the last one as well, we have to talk about a.i. because we're at a big tech conference and you can't go anywhere without a.i. >> it is everywhere. >> what have you seen with the generative a.i. on gaming? >> a.i. is this amazing tool for the creative process. aiding in it the creative work flow. i think what you will see with a.i. is specifically generative a.i. is companies that provide work flow tools that help game designers, developers, like make

more -- like design more quickly. they draw one type of image or pixel or something like that for their game and then they are able to extrapolate that to 100 more sprites. it will play to the development and that's what is the major a.i. use case. a lot of procedural and generative a.i. with the player experience and map making and stuff like that is on the horizon as well. >> exciting time. justin, thank you for the time and insight. that was the co-founder of stash giving us the glimpse into the future of where the gaming market is going. for now, dan, back to you. >> arj, terrific interview. we appreciate that. up next on the rogram, ukraine reportedly firing british storm shadow missiles at russia with traders eyeing rising tensions. we'll bring you the latest developments on the other side. we're back in two minutes.

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you are watching "street signs." on cnbc. i'm dan murphy in abu dhabi. first up, third quarter sales for nvidia double on the year, but expect ations fall short. adani group says allegations of fraud and bribery of gautam adani are baseless as shares plunge. the stoxx 600 is on negative for the fifth straight session. jd sports trading at the bottom of the pile as they warn discounting will dent full-year

profit. bitcoin post-election rally rolls on nearing $100,000 u.s. as donald trump is considering the new white house post dedicated to crypto policy. to our developing story this hour and adani group says bribery accusations against its founder gautam adani are quote baseless and denied. the group was aiming to reassure stakeholders it is quote a law abiding organization and come ply answer with all laws. this after an alleged scheme to get solar power contracts claiming more than $250 million in bribes was paid to the indian officials over the past four

years. shares of dani enterprises and companies slumping on the news. in some cases double digit declines. we go live to tv 18 for more on the breaking news. what can you tell us about the company's response so far? >> reporter: there are losses felt across the board, as you mentioned, in almost over adani stock, ten on the indian changes with 10% to 20%. it was just about an hour ago that adani group put out an official statement with complying with all of the issues and they mentioned they will seek every possible legal recourse to this. now, this has been a developing story since the morning when the u.s. district court and the security exchange commission framed bribery charges against adani group and the s.e.c. or the bribery charges related to

the solar energy contracts which were in the country and the s.e.c. order highlighted a $750 million green bond sale that the adani green energy listed company had done here in september of 2021, part of which was raised from u.s. investors as well. in response to the developments, adani green energy called off the bond sale and most of the other group companies have provided their clarifications to the exchanges stating there has been no allegation made against their particular company and that the group remains compliant. the court order mentions there have been seven districts named in the order and they have been charged with five counts. the first count be conspiracy to violate. the second is the fraud conspiracy and the third is the wire fraud and the dollar sale bond and the fifth count is

obstruction justice and they mentioned the investigations were trying to be hindered by the group and executive. all in all, the group has clarified it is in compliance with all of the regulations, but the losses being seen across every listed company of the adani group. >> absolutely. for more on gautam adani's charges and the dramatic market reaction, check out cnbc.com. we appreciate you joining us. moving on, u.s. president joe biden has moved on to $4 billion in loans to ukraine. this is announced as the outgoing accident is looking to shore up aid for kyiv. in the meantime, ukraine has fired missiles at targets in russia according to multiple outlets. the uk policy shift follows that of the u.s., the day after

ukraine used u.s. missiles to strike russia. ukraine's military said moscow launched a ballistic missile from southern russia today. the first time russia has used such a powerful long-range missile during the war. it was unclear with a was targeted or any damage done. the spokesperson declined to comment on that report. let's unpack all of this and get you a sense of what it means for your money. christopher grandholm is here with us. good to have you with us. can i get your reaction to what you have just heard and most importantly, what is the biden administration strategy allowing the use of these american made long-range missiles into russia from ukraine and where do you see this going from here? >> well, the biden

administration hesitated for long months before authorizing the use of these missiles in russian territory. in fact, the biden administration just to pick up the uk angle, dan, long refused the uk government request to use the uk cruise missiles for the same purpose. u.s. permission being necessary. the missiles of the uk include american components. the question why now, the answer has to be ukraine is entering into the end-game phase. i say that cautiously because the end-game could be protracted with the arrival of donald trump and his stated plan to bring about a peace settlement. that being so, i'm not reading between two too many lines. it has been stated by u.s.

officials. improve the hand of the ukraine in advance of any peace negotiation and one of the clear objections that ukraine has is the russian territory it still holds after the incursion of kursk last august. it is noticeable these u.s. and uk strikes are very much in that part of the theater. so, i think it is reason able t fer that the goal is to help the ukrainian armed forces hold on in the russian territory. i don't want to go on too long. you mentioned the reports of russian long-range missile strikes on ukraine today. i think the reason why this story is getting the attention of the public, but also of financial markets is that in

advance of the decision by the biden administration, president putin had laid down his clearest red line in the ukraine war to date. this happened last september. not just general months, but all other parties in the completion should remember that russia is a nuclear power. that type of rhetoric has been repeated. this type is clear when putin said the use of the long-range missiles is not giving them to ukraine to use, but the ukrainian armed forces are incapable of operating these missiles. therefore, the use means the u.s. and allies, like the uk, have entered directly into the conflict with russia as opposed to simply supplying with weapons with russia's adversary. despite russia having no real motive to escalate since it has the upper hand in the conflict

and relatively well placed forn that statement by putin, it would be difficult for russia not to respond in some way. i think that is really the key that is attracting attention around the world. >> right. that leads me perfectly into my next question. what is the russian reaction function? you mentioned putin's red line. we already heard from the kremlin suggesting the nuclear threshold would be lowered. what do you think putin will do next? >> well, the implications of the red line are that the western powers that operate in the missiles will be -- the russian response will be directed at them in some way as opposed simply to continuing military operations against ukraine and the ukraine armed forces. what way? well, of course, discussions up

and down all over the world are focused on this. there's a large spectrum from semi degls niable attacks and ae who says differently is wrong. and on the timing, the response could be with some long -- long lag. the russian foreign minister, lavrov, when he was commenting on president putin's red line, a little after it was stated, lavrov said something like our opponent should not -- should not assume they can shelter behind the atlantic ocean or behind, he said the french word for the english channel. again, this, of course, can be interpreted as empty bluster. i think some response is -- is

likely. it could be -- it could be something which doesn't, um, send too many tremors. we had a small risk episode in european markets on -- on tuesday after putin signed off on the nuclear doctrine of russia which encompasses the scenario where russia is attacked in non-nuclear power in alliance with the nuclear power. those risk-off moments will be brief in general because i think it is reasonable to suppose although some differentiated russian retaliation from routine combat operations is to be expected. it would be gradual and work up very dprad wally in response to any intensification of the u.s.-uk and possibly french

strikes. it would try to strike something related. i'm just speculating. a gradual focus rather than something dramatic. >> right. christopher, what we see now is investors attempting to price the escalation risk here. as you say, markets are pre-occupied with the multitude of all cases. the risk being the bear case. the safety trade preference now appears to be into the usd and into gold and into the swiss franc and perhaps into the general. where are you advising clients if this risks further and we see a deterioration of the security situation across europe? >> our advice for the last several months has been that haven assets will be well placed through this period because it's precisely the end game of the

war like this where paradoxically, you see the increased escalation risk. as the war reaches toward its end point, which ever side is on the back foot will have an incentive to roll the dice to try to improve their position and if russia had been on the back foot, then i think arguably, the escalation risk would have been much worse. russia, as it now stands is on the front foot. the escalation has come from the ukraine and its western backers. there is going to be a danger. even if under president trump some peace initiative is made, the outlook is very stark and binary. it could work just on humanitarian grounds, that could

be good news. it could also back fire and blowup. i think there will be a strength of haven assets are the ones you mentioned. the perennial favorites, gold, dollar, swiss francs are well played. there are some niche trades out there betting on a successful peace settlement. things like restructured ukraine and government bonds and associated warrants giving exposure to the economic growth in the future. this is popular given donald trump's election a couple of weeks ago. although it was jolted by the events we're discussing this week, they're style quite buoyant and that's a sign that people are looking for opportunities.

other such trades are turkish currency and other turkey assets because turkey is linked to russia and if there was secession of hoss hostilities. obviously, not all interest to the investors, but something worth looking. >> indeed. christopher, we'll leave it there. appreciate the conversation. that's christopher granville of ts lombard. coming up on the show, we head back to helsinki and arjun, if he's ready. >> reporter: just woken up from the power nap and recharged and ready to go. we'll bring you more from slush after this break.

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! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name!

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welcome back. goldman sachs ceo david solomon telling cnbc he sees market activity picking up on the back drop with the incoming administration will pare back administration. he caught up with listly eslie picker. >> across all ies expanded meaningfully. it is not just financial services. it is just a belief the administration will pare back the level of regulation which is a pro-growth agenda. certainly for financial services, the level of regulatory oversight grew. i think it is important to have the good regulatory structure for the industry, but it can go too far. i think one of the interesting things here at the conference with the growth companies, i

talked to our clients, these young companies, they talk about the regulatory burden and complex it is and we actually want the companies with the growth and innovation in the united states. we want the ies to grow and succeed. it is important we get the regulatory balance right. i think it pushed too far and the new administration will bring it back to a place that's more sensible. meanwhile, morgan stanley's boss told cnbc why the markets and the u.s. are particularly bullish following donald trump's re-election. >> he is bullish for good reason. the world is still led by the u.s. consumer and consumer corporate balance sheets in the u.s. are terrific. new administration is talking about growth. there's some caution with policy uncertainty and the dynamic with the u.s. and china and the uncertainty with the bilateral

relationship. on the whole, people are understandably continuing to be constructive. why -- why wouldn't you be constructive against the back drop where the u.s. economy continues to out perform. meanwhile, elon musk and vivek ramaswamy will lead for regulations and large scale government job cuts writing a joint opinion piece, the co-heads of the newly created department of government efficiency will give president-elect trump a list of thousands of regulations to nullify and target more than $500 billion in spending which they say is not authorized by congress or is being used in ways lawmakers did not intend. president-elect is also considering creating a white house post dedicated to cryptocurrency policy according to bloomberg citing people familiar with the transition efforts. the report says it's not clear what form the role would take

with crypto industry advocates pushing for the role to have a direct line to trump. let's give you a live look how bitcoin is trading right here and right now. we crossed the threshold crossing $95,000. bitcoin up almost 45% since election day. let's get back out to arjun at slush. he is joined by another special guest. arjun. >> reporter: that's right, dan. my next guest is from the venture capital firm that invested in heavyweights netflix and snap. i'm excited to get into the future of investing with eric who is a partner. eric, we talked off camera about the valuations for the a.i. companies. you have seen huge sums of money with the a.i. in the name. is there a bit of a bubble happening right now with the startups and money going into them?

>> arjun, thank you having me here at slush. as you see the emerging technology, the belief in the future can sometimes out strip reality. it is hard to know if you are in the bubble, but afterwards, it is important to separate the valuations and capital intensity from the foundation which is very capitalntensive. the layer, the application layer is where we deploy more of our capital. >> when you talk about the application layer, give a couple of examples of the prospects or ideas you are thinking about right now. >> at the risk of bias and companies in our portfolio, i'll give you an example. a company based here in europe and germany, the a.i. translation. we think they have great product market fit already. they are generating hundreds of millions in revenue and profitable. that is an a.i. company. bridge in the states. clear product need.

clear problem to diagnose and record the interactions with doctors and patients. >> when we look at the broader landscape of a.i. right now, the public markets are focused on the infrastructure plays and making serious money with likes of nvidia doubled their net profit in the last quarter. microsoft with the hyper scalers. there is a real opportunity to be a multibillion dollar company in the application space? there are companies that can make money on the infrastructure layer? >> oh, without question. that just mirrors what we have seen with other paradigm shifts. there are very successful and highly valued market cap companies on the cloud. applications like salesforce have been around far longer than that and have done okay. >> in terms of the tech developments you are excited about, what may take this cycle to the next stage? >> i think it comes back to solving a real need that customers have whether those are

consumers or enterprises. we have been fortunate to work with leaders in the sectors. consumers and enterprises complexity moving nicely. it has shifted to target enterprise customer base. >> eric, you spent 50 years in san francisco. you now live in london and your for uss on europe here. there are big questions where europe stands in sort of the artificial intelligence matrix at this point. we know the biggest tech companies right now. biggest leaders in a.i. are huge in the u.s. you have the chinese players as well. can europe in this age of generative a.i. and a.i. create some major players? >> i really hope so. i think talent has become global. there are a number of intelligent people here in europe. part of that goes to what we

spoke previously of the capital insurance tense ty. there is more capital at this stage than in the states. this is something that europe will have to think through to have a player at that level. >> that was the limiting factors we talked about here in europe. look, you can grow companies, but that late stage and capital markets there and everything that comes with that. have you seen any change? >> not enough. if i'm speaking of someone looking out for the future in europe, without getting into too much detail, i think if the regulatory bodies allow the pension funds to nest in different asset classes, that should promote more liquidity and float into private markets as well which would be good for innovation. >> a lot of the application layer companies is still nascent and still young, but growing quickly. as you look to the future in the next couple years, is there space in the public markets for some of the application layer a.i. companies pan what are the

prospects like? >> i think the public market is clamoring to reach a scale to thrive. the spotlight of being public is bright and harsh if you have a stumble. companies want to be nine figures before they test the markets. we see a number of companies that should be there in the next couple years. >> in terms of public markets, is the environment different now? is there more a sire for solid businesses when the previous investors like netflix and snap went public? >> i think that is the buy side of the interest rate era. you want to be a larger company. $500 billion with a clear path to articulate. that happens in a risk-off environment. >> eric, thank you for your insight with the application layer.

we have spoken about the hyper scalers and what comes next. that will be a key thing for investors as well. for now, dan, back to you. >> arj, terrific. thanks for joining us this hour. before we go, let's look at the u.s. equity futures as we track into the resumption of wall street trade. you see markets are lower. the dow down 100 points as is the nasdaq. that's it for today. i'm dan murphy in abu dhabi. stay with us on cnbc. "worldwide exchange" is up next.

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it's 5:00 a.m. here at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." nvidia sales double, but outlook isn't enough to exceed the lofty expectations. bitcoin pays off in a big way. wealth wipeout in india with adani. first on comments from snowflake's