what does vmware do if it is blocked?sdictions by jurisdiction, they have cleared all the other jurisdictions so they can come up with remedies around what they want, what the chinese regulators want in closing the deal so they can do remedies. but i think the timing of it is influenced by u.s. announcing restrictions on nvidia gpu's and that is probably playing into this. guy: let's turn to nvidia. nvidia pushing back strongly on the impact these rejections are going to have on the future developments for the chips. walk with you the impact you think to see. mandeep: think of it this way. with the patience of ai is moving, everyone wants to train their large land richemont is on the accelerator chips. i could see why broadcom combination makes a lot of sense because vmware is present in the onramp servers and everything is moving to generate ai. broadcom can provide these custom chips which can be an alternative to nvidia approach where you get everything from nvidia to train these algorithms. i think it is a viable alte

kristina, before we let you go, what's the move lower in vmware all about? >> reporter: this is just based on rumors thus far, but rumors are spreading potentially broad system com's acquisition is at risk because of chinese regulators looking to block the deal. all these articles are sourcing media sources but no one has a direct source. the stock is down 6% and could show vmware, broadcom caught in the cross hairs after hock tan said he was very confident the deal would go through. it makes me wonder if this is retaliation from china or just a rumor. >> very interesting stuff. as you've said, it is speculation. vmware is down more than 6%. joe, you own this one personally. what do you think? we own broadcom. what do you think about this move, what speculation could suggest? >> the deal is supposed to close end of the month. again, to your point, we don't know if this is speculation, rumors or not. you need the guidance from companies. that's what you need to listen to. and to kristina's point, as it relates to m indnvidia, i would expect the company will g

to record broadcom's vmware. that has some spooked. shares down almost 7%. broadcom just got back to me and i'm told they still expect the deal to close october 30th. but what timing given the restrictions today. >> only two weeks to sort if that will be on track. kristina, thank you. >>> it's interesting, adam. do we have to look at this group, at least nvidia, maybe some of the other directly exposed ones as, look, for google, the entire world except for china is the end market, or friction we have to work our way through? did china front load chips or how do we sort it out? >> the immediate reaction were the same, no near term impact but might be medium or long term. it's all about time frame. nvidia, to me, has the best product in the early phases of a 10 to 15 year trend. of course the stock will be way more in two, three and five years. everyone i know wants the thing to go down 20% so they can buy some. it will never go down 20%. >> down close to 18% actually. >> i think they reported -- since they reporte

and there you see vmware, there it is the, it is popping 12.8%.omponentses, by the way, are all packed into the philly sox index, the semikicker index. earlier it was down -- semiconductor index. at the moment we have the socks down 1%. down 1%. intraday though it is off the lows of the session, hit right around the time that the world became aware that the administration is going to ban the export of a.i. chips. apple's ceo tim cook making a surprise visit to china. cook cheered on gamers playing the new honor of kings game at an apple store in china. cook's visit comes after about a month after release of the iphone 15 which has, from reports, seen slow sales in china, lagging behind huawei's 5g connectivity smartphone. apple shares down 1%. >>> rumors about a spot bitcoin etf sending the crypto popping yesterday. maybe somebody did a little profit taking and splurged on a ferrari gtv which costs a cool $333,000 or. there it is live. the luxury car maker will now let you pay for a new car like that with bitcoin, ether and usdc. we're going to be

vmware is going to go to -- it's interesting to me. >> if we got vmware, microsoft activision, amgen,e cleaning up a lot of clutter in the m&a space. >> yeah. i think the best one right now to look at is albertson's, kroger/albertson's. they are lined up people to buy the ones that are overlapped. but both justice and the ftc has said over and over again you can't cure overlap. that's because they're reacting to the botched safeway deal where safeway put some stores with an outfit called hagan and they were bankrupt within a few months. >> palantir, new army contract worth about $250 million. that's going to be the highest since august. >> i happen to like palantir very much. i bumped into the cfo. he said, boy, you finally got on board. i said, look, the stock fell big. it's okay. your quarter was really remarkable. plus there was no cursing on the call. i thought that was an upgrade. they like to curse. i find -- i want a bleep call. it better be musk if you have a bleep call. he's allowed to do it. >> speaking of musk, jefferies today cuts tesla. they were at 265. they go to 250. t

broadcom and software maker vmware say their merger is on track to close before the november deadlineceiving approval from the chinese regulators. the companies do not disclose how close they may be, but they have stated "there is no legal impediment in closing under u.s. regulations." the agreement between the camesa expires november 22, ed. ed: coming up on "bloomberg technology," all about ai regulation be in the spotlight we will speak to the general partner at crv next, and that a professor in the computer science department at stanford university and a big name the world of ai. this is "bloomberg technology." ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh what do you see on the horizon? uncertainty? or opportunity. ou see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns...

vmware saying it expects the merger to go through october 30.ergy space, this is the place we've seen excitement in the market today. halliburton shares among those driving this index higher after barclays raising its price target to $55 for that name. brent trying to stay above $90 a barrel. we shall see. we have the israel-hamas war going on. we have that strong consumer. that is what we are playing yet in the markets. guy: simone foxman on what is happening with these markets. plenty still to come. we got united airlines out with numbers. we are going to turn back to the politics. president biden leaving for israel and the house of representatives is convening in a few minutes, noon new york time, because we need to figure out exactly what is happening with the story about whether or not jim jordan, the conservative from ohio, is going to be the next speaker. alix: bloomberg's kailey leinz is joining us on that. jim jordan. talk us through how close this could get. kailey: it could be very close. this will be judgment day for the current shar

and then we'll see if they close vmware next week or not. if they manage to close that, that's not in the ummers even without those numbers, the stock is cheap i'm look at texas instruments, such a bad day in the mark, but it's up. they thought q4 was just modelled wrong, and we thought they would trend down, and they actually guided eight or nine points below, and you can back it out they were implicitly guiding gross margins at 60% or lower. though, it was funny yesterday, the bundling was horrible, outperformed to the broader sector i think there were enough structural headwinds that i understand what they're doing, and why. i think the time frame is fine over the next 12 months, it makes it challenging >> is there a best stock in your orbit that not enough people were talking about >> people kind of talk about everything >> well, not really. you know what i mean it's dominated by amd, nvidia, broadcom. >> the ones that are sort of not as main democrat stream, probably rod com that is a stock that i've always loved. i feel like it doesn't

broadcom and vmware say their $ 61 billion merger is on track to close before a november 26 deadline. say how close they might be for an approval from chinese regulators, their last major hurdle, but they say there is no legal impediment under u.s. merger regulations. petrochina says its third-quarter profit rose 21%, despite china's lackluster economic recovery. net income jumped more than $1 billion from a year ago following the firm's record profit the first half of this year. petrochina fitted from discounted crew from russia as well as beijing's relaxation of natural gas price controls. bank of china saw 3% increase in its third-quarter profits. net profit rose to $7.5 billion while net interest margin narrowed. china's $56 trillion banking industry has been battling shrinking margins and rising bad loans since they were drafted by authorities to backstop the economy and prevent spillover from its sluggish property sector. haidi: gm has reached a tentative deal with the auto workers union to end a six-week strike that upended u.s. auto production. the terms still need to be appro

i want to show you vmware, which has gotten clobbered. vmw is being acquired by broad com. there's some speculation, perhaps, that china could block this acquisition in retaliation for what the biden administration is dooing. this is all speculation. that's the reason that's down. elsewhere, if you look around, some other tech stocks have turned around. shor service now up nicely. jp had nice comments. that's a nice move for that stock. i've been talking about tepid reaction to the bank earnings. moynihan is in the soft landing camp. good numbers overall from him. we opened at 27 on bank of america. it's been moving up a little bit. this is the first day we're seeing, okay, finally moving up on decent bank reports. the reactions have been very tepid recently. that's another good sign. banks starting to move on the earnings. finally, remember these high yields. take a look here at the high-yield etf we're seeing here. remember, the spiking yields because retail sales are strong. that's not bad for the goldilocks scenario. a stronger economy means higher interest rates. that

. >> some optimism about the vmware dealing getting done.t better. >> quite a bit better. the equal weighted s&p is down a quarter percent. the question is whether you can bank on that relationship, just continuing to spiral higher, meaning the mega cap out performance over the average stock. you can right now above the former highs from 2020 and late 2021, in terms of nasdaq 100 relative to the average large cap stock. could we go higher? sure. at the beginning of the crash in 2000, we were like three or four times higher on a relative basis. so you can get wild, but i think it's a much healthier market if it backs and fells and you have some catchup by the cyclical areas of the market, the stuff that started to work, and it's happened both ways. it's not as if it has to necessarily break a certain direction. you're right, you know, the rotational action has insulated the index from worse wear and tear. it's kept what we've been going through since july into the routine zone, 8%, decline on cue during october, we start to get the bounce. we

and vmware says $61 billion merger is on track to close before and november 26 deadline.e to approval from chinese regulators which is the last major hurdle to completing the deal. no legal impediment on the u.s. merger regulations. suffice to say for the markets it's the boj, the fed, data out of the u.s.. we are tracking in terms of companies which have already been out with their earnings, 90% of msci china companies have reported earnings. among them bank of china, petrochina lower. the profit rose, it offset lower oil prices and slumping laughter 3g profits declined. see atl is trading down by 1.3%, it's an ev supplier on the back of tesla declining amid headwinds. lg energysolutions slumping four and a half percent along with samsung sdi. the stock is currently down by more than 5%. again, boj on watch. will it tweak, will it not? that is the big question plus implications for japanese assets as well as the market. more ahead. th >> breaking news out of the boj, maintaining their tenure g be yields and the policy balance rate and adjusting the yield curve control. w

broadcom and vmware say their merger is on track to close before november 26, the deadline.companies did not say how close they might be to an approval from chinese regulators, their last major hurdle to completing the deal. but they say there is no legal impediment under u.s. merger regulations. quick look at u.s. futures, dow futures turned around a few minutes ago. s&p 500 futures may be signaling we will see some kind of decline tomorrow after a bounce out of correction territory today. the s&p rallied 1.2% in the monday session. plenty more to come on daybreak: asia. this is bloomberg. ♪ >> we are getting japanese economic data. the jobless rate at 2.6% as anticipated, a little bit less tight than the 2.7% of the previous month. japan's jobless rate coming in at 2.6% in september. we also have the job to applicant ratio, unchanged at 1.29. that means 120 nine jobs offered in september for every 100 applicants. the bank of japan will be watching this very closely. a tight job market key to higher wages. that's an area the governor and prime minister are watching closely.

they can't do anything vmware is down another 2%.es for us i shared that yesterday and i'm starting to wonder whether it was true, this idea that hock tan would look out that it's not political. of koirts's political. he wants everybody to think it's bureaucratic because he wants to get this thing through. >> if it's paperwork, this deal is one of the longest lingering deals. >> how can it not be political given what we started the show with, talking about nvidia and the chips that can no longer be sold to china? >> you're going on somebody's word that it's not political that would mean the deal does close this weekend. >> or are we being panted by hock tan. >> this is make or break on his reputation if they get it done shortly, it means two weeks. >> as soon as this week. >> for people at home, this is what matters broad.com will do a giant deal why are we sweding the program >> qualcomm nxpi is the one that never got approved. >> i know. qualcomm is back to that level, david. >>> chicago pmi is out. let's get it from rick santelli.

so i would use as a reference point shares of vmware.emember it is in a deal to be acquired by broadcom. the expectation is that's not far away, but will china try to put up some problems for them? let's leave it at that. i don't want to go too far here. take a look at what that looks like, in terms of approvals, what will it mean? what do they need to get there? >> will there be a response from china in some way to this latest action by the u.s. when it comes to advanced ai chips. sara, that's one thing i'm keeping an eye on. the other is a hostile in the hotel industry. talking about choice hotels proposing to acquire wyndham, 90 bucks a share. it's a cash and stock deal. 4950 in cash, the remainder in shares of choice. never that easy to push a hostile when a lot of it is made up of stock. the ceo of choice was a guest earlier on "squawk box." he talked about what they're willing to pay and why they were willing to pay that $90 number. take a listen. >> over the past five years since they've been a separate stand-alone company, we've