Musk 'Disappointed' in Trump Tax Bill; Nvidia Earnings On Tap

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Karen will have more on the markets in a minute,
but first, we're getting new pushback on President Trump's giant
tax cut bill, and it's coming from Elon Musk. The
billionaire has announced he is stepping back from his Department
of Government efficiency effort, but he says the bill undercuts
his efforts to slash government spending.
Musk spoke with CBS News.
I was like, we're disappointed to see the massive spending bill. Frankly,
which increases the bunch depsit not doesn't decrease it, and
that reminds the work that the Dooche team is doing.
Elon Musk questioned whether the bill can be both big
and beautiful. In his words, quote, I think a bill
can be big or it can be beautiful, but I
don't know if it can be both. The legislation includes
an array of tax cuts. It is now going to
the Senate after narrowly passing the House last week. And
you can hear Elon Musk's full interview on CBS Sunday Morning.
It airs this Sunday at ten am Wall Street Time
on Bloomberg Radio.
Nathan Elon Musk is going to have to face a
lawsuit over his work to slash government jobs and spending.
More than a dozen Democratic state attorneys general brought the case,
saying Musk wielded illegal power as the public face of DOGE.
US District Judge Tanya Chunkins says the Trump administration adopted
a perverse reading of the Constitution and appeared to sanction
unlimited executive power. With the Doge effort, the judge tossed
out a claim against President Trump, saying courts cannot restrict
presidents performing their official duties.
Turn now Karen Tumusk's SpaceX That company's colossal starship rocket
suffered a leak, tumbled out of control in space, and
disintegrated as it hurtled back to Earth at a test
flight yesterday. A few minutes in, the recycled super heavy
boosters separated from the upper portion of starship and fiired
its engines. But as it maneuvered itself into position and
plunged back to Earth, it suffered an apparent problem and exploded.
We have essentially lost attitude control on the ship. At
this point it is suborbital, so it's still headed to
the exact same trajectory as before. We were not able
to get that payload door open and deploy those nose cones.
We've been dealing with some leaks on the ship. This
is also what led to that loss of attitude controls.
So at this point we are kind of in a spin.
Now space ex stress as it learns from every test flight,
saying quote, We're going to learn iterate and iterate over
and over again, Nathan.
The Trump administration is taking its pressure on colleges and
universities to a new level. Secretary of State Marco Rubio
has ordered embassies around the world to stop scheduling student
visa interviews. The administration is considering tougher reviews of students'
social media accounts for signs of anti Semitism or a
national security risk. Here's State Departments Spokesomantammy Bruce.
Every sovereign country has a right to know who's trying
to come in, why they want to come in, who
they are, what they've been doing, and at least hopefully
within that framework, determine what they will be doing.
State Department spokes so men Tammy Bruce. This latest move
comes after the Department of Homeland Security tried to block
Harvard from enrolling international students.
That effort is on hold in court.
A top Justice Department lawyer is suggesting more action is coming,
saying the University of California is one that can expect
massive lawsuits.
Certain of the markets now, Karen futures are lower after
yesterday's tech led rally on Wall Street, and one of
those tech giants reports earnings this afternoon.
That would be in Nvidia.
Let's get a preview from Bloomberg's tom buzzby Well.
Demand for Nvidia's AI chips remain strong from US firms
still building out their AI infrastructure. The big question how
the company is dealing with ker on chipping its products
to customers in China that prompted the company to already
announce a five and a half billion dollar write down
a few weeks back. Also key for investors any update
on plans to launch cheaper Blackwell chips just for the
Chinese market and a timeline for its next generation Ruben processors.
Despite the expected write down, Bloomberg consensus calls for revenue
of forty three point three two billion dollars adjusted earnings
per share of eighty eight cents.
Tom buzzby Bloomberg Radio. All right, Tom, thank you.
Stay with Bloomberg for full coverage of Nvidia's earnings on
a special edition of Bloomberg Technology, when we'll be speaking
with the CEO, Jensen Wong. Catch it at six thirty
pm Wall Street Time on Bloomberg Radio, Bloomberg Television, and
the Bloomberg Podcast page on YouTube.
Nathan and Asia. Japan's latest auction of forty year government
bonds has seen its weakest demand in almost a year.
The outcome risk fueling further volatility and global dead markets
amid concerns that rising governments spending could push deficits into
dangerous territory.
And can their new developments. This warning in Japan's kneepon
Steel and its planned takeover of US Steel, the US
government's poise to receive a so called golden share in
US Steel as a condition for approving the deal. Sources
say the plan would give the government to facto veto
rights on certain company decisions and appointments, and it's part
of ongoing talks between authorities and the companies. On Friday,
President Trump announced a partnership that included fourteen billion dollars
in new investments, but at that time he provided few
additional details and.
Nathan, the president is continuing to push to take Fanny
May and Freddie Mack public. We get the details with
the Bloomberg's John Tucker, John, good morning.
Good morning, Karen.
President Trump wrote last night in a post on his
Truth social platform, I am working on taking these amazing
companies public now. Importantly, he also noted the US government
would retain guarantees in an oversight role over Freddy and
Freddie Mack and Fanny May. They have tried this before,
but it turned out to be too complex. Both Fanning
and Freddie are government sponsored enterprises. They were created to
enhance the flow credit to specific areas of the economy,
in this case housing, with a government backstop. Their bonds
are as seen as among the safest, but they've been
under government conservatorship since the two thousand and eight financial crisis.
Investors have called for the two government to aid the
government to release the two entities, which could provide a
windfall for shareholders, including the federal government, but there's also
a fear it could raise mortgage rates. You know, new
York Home, John Tucker, Bloomberg Radio.
John, Thanks.
President Trump's trade war is leading businesses to freeze hiring
and hold off on future investment decisions. That's the view
of Richmond Fed President Thomas Barkin. He spoke with us
yesterday right here on Bloomberg Radio.
When I'm talking to businesses, which you know I do
every day, I've been describing this as driving through fog.
It's just very hard to.
Drive when it's really foggy, and businesses are afraid to
accelerate because they don't know what's around the next curve.
And they're also afraid to put on the gas because
you don't want someone crashing into you. And so by
and large, they're they're pulling over and putting on the hazards.
Richmond Fed President Thomas Barkins's colleagues at the Central Bank
have held interest rates steady this year, biding time to
see how the Trump administration's policy changes shape the economy.
Catch our full conversation with Richmond Fed Chief Tom Barkin
on the Bloomberg Podcast YouTube page.
And you're up.
Nathan Exchange at the top at Stilantis, the automaker has
appointed as America's had Antonio Felosa's chief executive Stilantis, is
relying on an experienced company insider to turn around the
automaker after former boss Carlos Tavares was forced out over
slumping sales and profit. Time now for a look at
some of the other stories making news in New York
and around the world, and for that we're joined by
Bloomberg's Michael Barer.
Michael, good Morning, Good morning, Karen.
Ukraine President Vladimir Zelenski called on Western allies to provide
about thirty billion dollars by the end of the year
to boost domestic weapons production and hold off Russia's advance.
Support from the US under President Donald Trump appears waning,
and efforts at peace negotiations with the rushas of Vladimir
Putin are stoling. It comes as President Trump is indicated
that he's losing patients with the war in Ukraine and
has directed his frustration for the most part at Putin.
A former tab aide to Sean Diddy Combs has testified
at his sex trafficking trial that the music mogul threatened
her with death on her first day on the job.
Capricorn Clark also says Combs later waived a gun as
he kidnapped her in an angry rush to find and
kill rapper kid cutting. Prosecutors are trying to prove Combs
led a racketeering conspiracy that relied on fear and violence.
Attorney and court watcher Areva Martin says Clark's testimony coroborated
what kid Cutty already told the jury.
It is really damning testimony against Sean Combs when you
look at the number of witnesses that have come into
that courtroom that have corroborated violence that was perpetrated against
Cassie and others, really really compelling testimony for the prosecution.
Attorney Reva Martin. Combs has pleaded not guilty. President Trump
issued partners for the reality TV stars Todd and Julie Chrisling,
the stars of chrisly Know's Best, were sentenced to years
in prison for defrauding banks out of more than thirty
six million dollars in hiding millions from the irs, also
receiving presidential pardons this week. Paul Walzach, convicted tax cheat,
has been partnered. Weeks after his mother attended a million
dollar per head fundraiser with President Trump at Mara a Lago.
Police in Connecticut are investigating a bass shooting in the
mall in Waterbury. At least four victims were shot at
the Brass Mill Center Mall. Waterbury Police Chief Fernando Spagnolo.
There were some people that sheltered in place. It was
really amazing to watch people in this time of crisis
keep cool heads and follow plans and shelter in place.
Chief Spagnolo says, a person of interest is in custody.
Global News twenty four hours a day, ay and whenever
you want it with Bloomberg News. Now, I'm Michael Barran.
This is Bloomberg Karen.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update. Here's John Stanshower. John, good morning.
Do you want to care the next We're trying for
another road.
When they had six and seven tries in the postseason,
had another come from behind victory at Indiana.
They never trailed by twenty.
Like in the last three comeback, but in Game four,
the Pacers were in front almost the whole night. Nick
stayed in it, but Indiana always had the answer.
Ridgley is around the screen on top Blenchers Bloomber fun
Factor Bridges another three.
He's six one six Poe game Caliberton leaving Travin Stone.
Goes on top.
It's top and too, I don't do it, Auntie NTI.
That game flinching three came with forty six seconds left,
hit by the ex nick Obi top In. Indiana won one,
thirty to one to twenty one for Tyrese Haliburton, a
statline never seen before in the playoffs thirty two points,
twelve rebounds, fifteen assists and no turnovers. Jalen Bruns another
Nicks with thirty one. It's three to one Indiana. Game
five tomorrow at the Guard and Stanley Cup Final looked
like a rematchup last year when Florida beat Edmonton. The
Panthers are up three one, they can win the East.
Tonight at Carolina, the Oilers are up three to one.
They beat Dallas four to one. Since scoring five goals
in the third period of Game one, the Stars last
three games held the two goals. Another win for the
Yankees made it fifteen to the last nineteen three to
two over the Angels behind Carlos rode On seven scoreless innings.
He struck out ten Mets scored four in the first
went on to beat the White Sox sixty four, improving
to twenty one and six in City Field. Nationals lost
in Seattle nine to one. Red Sox lost in Milwaukee
five to one. At Christian Yelich Tenthitying Grand Slam French Open,
Straight said opening round wins for No Back, Djokovic, Coco Golf,
Jess Pagula, Carlos, Welcome out, egoshiantek Anna Arena, Statelinka starting
the second round today, Johns Dashedward, Bloomberg Sports Karen.
Meathan Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg.
Dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager, and we are counting down
to the big earnings event of the week. After today's
closing bell, we get the latest quarterly results from Nvidia,
the chip giant that has become a bellweather of artificial
intelligence demand and the tech sector as a whole. So
let's get a preview. We're joined now by Bloomberg's Kritty,
Gupta and Critty. We've talked about this many times before.
Investors have kind of gotten used to blowout results from
Nvidia quarter in and quarter out.
Can they expect the same this time around?
Good morning, Good morning, Nathan.
This is the story of the A plus plus plus
student and whether or not they can keep that really
stellar grade point average.
But that's really every quarter we talk about this.
That's the challenge in that the expectations are just so high,
which is what creates that volatility that you just mentioned.
In terms of the earnings reports. A lot of folks
decide to hedge either up or down based on these earnings,
and the margin of the miss is also another nuance
to add on top of that. Now we have to
factor in the Trump administration's curb exports and what that
looks like in terms of the write downs that they've given.
So that's a laundry list of things we're watching, Nathan.
But let's divide it piece by piece if we can.
Kicking it off with the AI story, because at the
end of the day, it's the AI momentum that matters
the most this idea.
There's unsatiable demand when.
It comes to the AI data center story, and Video
is out front in terms of monetizing that and really
leading the innovation there, so that data center revenue for
the first quarter, the estimate is about thirty nine billion
dollars a little over there as well.
They're expecting the second quarter.
The analysts excuse me, the Street analysts consensus is expecting
the second revenue quarter to go up to about forty
six billion. Those are some very high numbers coming from
about forty three billion in the first quarter. So you
can really see how the expectations are very high when
it comes to the revenue story for Nvidia.
But how can Nvidia meet those expectations when we've been
hearing ahead of these earnings from CEO Jensen Wong that
the chip curbs, particularly out of China are a mistakes.
It's an interesting one because Nvidia is one sitting on
piles and piles of cash, and this is a symptom
of kind of the post COVID story where so many
of these tech giants have been sitting on so much cash.
But Nvidia has invested a lot of that in R
and D and specifically in creating chips that can kind
of circumvent the Biden era export controls as well, so
you can still serve a Chinese market without providing those
high end military grade kind of AI powered computer chips,
Donald Trump and his administration saying, well.
Those don't cut it either.
And it's something Nvidia has already talked about in terms
of a five and a half billion dollar right down.
But Nathan just off some rough math here, and there
is obviously way more nuance. But if you just look
at those first quarter and second number quarters, I told
you so the revenue estimate about forty three billion, a
scent quarter forecasted of about forty six billion, That in
itself is about a three billion dollar difference from quarter
to quarter. A write down about five and a half
billion still doesn't necessarily handicap in VideA in the way
that it could to other companies.
Got about a minute left, Critty, what further commentary could
we hear when it comes to some of the latest
chips that in Vidia has coming down the pike.
So in video is going through kind of its own
Apple moment where a lot of the focus is on yes, innovation, Yes,
it's on new markets like the Middle East for example,
where Donald Trump has touted so much of that Innvidia investment,
not to mention the domestic investment as well, but really
keep an eye on the design cycle, because the last
time they really launched a product, they're talking about shipping
delays that are pushing shipping those products to their clients
into twenty twenty six. Does that push out the innovation
cycle as well in terms of the next generation product
that they have to offer. I think that's the commentary
that you're going to want to watch today.
This is Bloomberg Daybreak, your morning podcast on the stories
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I'm Nathan Hager.
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