I rarely read news articles on me. Even alter isaacsons book, i asked walter should i read the book and he said no so i did not read the book on myself. I actually dont quite know what the Public Perception is. Except that the nature of news is that it is going to be salacious. It is going to be somewhat of a caricature because the more crazy something sounds, the more clicks it will get. When you think about a news story about something you know well and say, how accurate is that new story about something you know well, i think you will find it is not very accurate to that is true for everything. There is sort of a desperate quest for clicks. The more crazy the headline is, the more clicks it will get. This is not to suggest there are not true things by the media. It is best thought of the medias best thought of as a click maximizing machine and not as a truth maximizing machine. I think it is best to look at the words someone says themselves as opposed to what is written about them. Number three. On that note, time for a media question. It is fair to say there are lingering doubts about your commitment to bringing a low cost ev to market in landscape where the likes of byd can produce a car for 10,000. Are one hundred percent tariffs from the Biden Administration the green light you need to push ahead with the low cost ev and if so, what is the timeline for deliveries . Elon i mean, it is difficult for me to answer questions about a publicly traded company that are such a significant nature. [laughter] you are lying. We should be using starlinks. Sorry. That technique. You see it is easier to have a chip in the mind of the people in the brain. That was elon musk speaking at the viva tech conference in paris. He discussed training ai models. He was taking questions from attendees. The last question was about low cost evs and the timeline, his commitment to doing that when his image froze because he said it was difficult for him to talk about publicly traded companies plans and he was not able to say anything more than that because of maybe technology. I want to bring in max chafkin has covered tesla, who has covered elon musk. It was interesting his image froze up right as he was about to enter the question because tesla omitted a previously stated goal to eventually sell 20 million vehicles a year from one of its yearly reports. We vote a story about that. I want to get context about how important it is this was omitted in the latest report. Max elon musk, the question cut out but he ducks this question in earnings calls as well. What is happening is the company has shifted from emphasizing selling huge numbers of cars. 20 million cars sold a year. That would be an enormous percentage of the global auto market. But as more cars that are sold every year in the united states. The original plan with tesla was like the iphone. They are every car you see is going to be a tesla. That is how it is going to be with a huge amount of money and that is held teslas going to solve these Climate Change issues. Elon musk has shifted away from that for a bunch of sensible reasons. Competition from china. It has gotten much harder to sell these cars. He has been talking a lot about robotaxis. On the last earnings call, the idea of selling tons of evs went by the wayside to instead it is all about we are going to create this super valuable entirely new industry that has the potential to swallow all of the transportation industry. When you see his response or the omission of this goal in the report, that is what is going on. We are seeing a pivot from a Large Company from one super ambitious goal arguably unachievable goal to another super ambitious and arguably unachievable goal. Scarlet how much do you read into this . Elon musk as celebrated as he is sells a lot of things and he is very ambitious. He often changes his mind. He pivots like you said. He was going to build up the Supercharger Network and now he has fired almost the entire team. Max we have reported over the last week he has been hiring people back. He has realized shutting it down, he has repivoted back toward superchargers pit as you say, he is a leader who famously a lot of people like him because he says what he means. He changes tact. This change, the change away from the 25,000 ev which was a thing elon musk had talked about. Many of the people who tesla, tesla bowls believed in, if you read reporting on tesla, people were designing this car. This is a big change. This is not just elon musk waking up feeling differently today. It is not like one of his tweets. He has the potential to shift the company and shift the way people value it. Scarlet fantastic context. Tesla shares down about three dollars at 177. Max chafkin who cohosts our elon inc. Podcast and knows a thing or two about elon and tesla. We are watching banks this money because james gorman says he will step down as Morgan Stanley chairman by year end. Bloomberg reporting jp morgan is on the hunt by a private credit firm for its Asset Management arm and Goldman Sachs has become the first wall street bank to get a saudi license. Lets bring in sally bakewell. Lets start with a Morgan Stanley news. It sounds like james gorman is cutting all ties with oak and stanley. Sally succession saga with Morgan Stanley has played a publicly since he announced he would resign as ceo. He did not give a timeframe on that. That is what he announced today. He said he will step down as chairman by the end of the year. Gorman was surprised was a surprise choice for ceo way back when. When he came back on board, he was tasked with rescuing the bank from the brink of collapse. That set off his trajectory where he transformed into this Wealth Management agree not both management juggernaut. This is a signal of conquer miss of confidence in his successor who took home in january because james gorman is only going to stay for the first year of ted picks job as ceo. When gorman came on board, john mack hung around as chairman for two years so it is a signal of conference ofs confidence in ted beck was off to a positive start. He delivered some wins with earnings. The Bank Reported trading and wealth revenue that was higher than analysts expected. Scarlet we expect ted pick who as ceo will take the position as chairman of the board of Morgan Stanley. Lets move over to Morgan Stanleys biggest rival witches Goldman Sachs setting up a Regional Base in saudi arabia. What we know about that firms plans in that region . Sally Goldman Sachs is the first wall street bank to get a license for its regional hq in riyadh in saudi arabia. It comes at an interesting time for saudi arabia and riyadh which is a conservative city. Alcohol is banned there. It is trying to emerge as a financial hub. While we dont know how many staffers it plans to locate, we know as per new regulations in saudi arabia introduced in 2021, it has to have something of a substantial base with at least 15 employers. Those regulations were designed at limiting what has been termed economic leakage or preventing too much state spending and statefunded going to businesses that dont have a substantial presence. Scarlet always fascinating to see how the bank is strategizing its expansion. The third story i want to get your take on is Jpmorgan Chase looking to make a purchase. This is to bolster its private credit business to private securities overall. Why is jp morgan looking to make an acquisition as opposed to growing its current offerings organically . Sally this is part of a narrative that has been happening on wall street for the past few years whereby some of wall streets biggest banks have been ceding ground to their nonbank rivals. This is another example of jp morgan trying to fight back. It is looking to buy private credit firm. It did try to buy it was in talks to buy munro capital which is a chicagobased Firm Although those talks ended. It has set aside 10 billion of its Balance Sheet for direct lending. Trying to set up partnerships with Asset Management firms to do deals together. It is all part of the trend of getting a piece of this 1. 7 trillion private credit market and theyre looking at ways they can do it that dont encroach on with the investment banks themselves are doing that dont take up too much of their risk capital because that is problematic for incoming regulations. They are trying a lot of Different Things and they are joining, Goldman Sachs, Morgan Stanley have been trying to boost their presence in that space. Scarlet appreciate you joining us. Sally bakewell leads our finance coverage at Bloomberg News in new york. That feed of elon musk has come back and there were some headlines generated. He says he was surprised by the tariffs on china evs white house announced. He also says he is not in favor of tariffs on evs or oil and gas. If you want to was can more if much listen more, you can type live go on your bloomberg. This is bloomberg. Thank you. Ok. Im not familiar with you know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. Scarlet at the top of the next hour, the u. S. Government will sell 16 billion of tenure inflation protected treasury notes. Inflation may have moderated from a year ago but not enough to convince the Federal Reserve to start cutting Interest Rates. Lets discuss what demand and returns look like with emirate investment cio or lynn castor samuel. It is great to speak with you. I want to start with todays flash pmi data. We got some reads on manufacturing and services and the composite and all three were hundred than expected and they show the economy doing better than what economists had anticipated. We u. S. Bond yields spiking across the curve. Is that reaction justified . We are in range between 4 and 5 on the 10 year. We have seen as we came into 2023, the 10year was at three in percent. At the time we said two fast two furious on the bond market rally. Now we have retraced that. We are at 4. 5 today. Every little tick of the bond market people like to focus on it but what we are saying is you are in range here and we dont think youre going to get much higher than five and youre going to stay between cointreau and five with the fed on hold. Scarlet i appreciate you being able to move bill and give context to sizable moves on a daily basis. What reaction do you think the tips auction will give to us when it comes to investor demand with fixed income with the inflation situation as you see it . Baylor what i would say about tips auction is we are at 2. 35 on a breakeven level. If you think over time, the cpi has been around 2. 5 over the long term since 1995. 2. 35, you would want to be in the tips. If you think inflation is going to be higher over the next 10 years. That is your breakeven. There is a risk and we see cpi higher than 2. 35 but is not terribly cheap. It may be cheap on a relative value bases. In the pandemic we saw breakevens plummet to as low as 15 basis points. Now you can say it is a little bit cheap but not hugely out of line with longterm trends. Scarlet this week there was not just this mornings data but the fed minutes which moved markets which is unusual because fed minutes dont usually move markets. I want to get your take away from those minutes because a lot of people read it as hawkish. Did it leave every option on the Table Including the possibility of rate hikes if inflation does not behave . Baylor i did read the minutes last night and i agree those came across more hawkish than expected. There was a statement that said various participants had a willingness to tighten policy further should risk to inflation materialize. What is going on . I think in the press conference chair powell took away the likelihood of the next move being a hike. He said that was unlikely. The minutes put it right back in. That is the kind of language that would lead you to think we could have a hike in the future. My expectation is the fed is on hold for the foreseeable future. That is a hedging statement. I do believe the next move is going to be down from the fed but they do want to put that back out there as a threat to the markets because we are in loose financial conditions right now. Scarlet as you see with the meme stocks, with a resurgence of that in recent days as well. What kind of conversations are you having with your clients especially when it comes to their appetite for treasuries . Baylor that is a great question. What we have right now is we have a challenge to communicate with the clients that it is ok to take a little duration here. We think we are range bound. Rebuilding Corporate Bond portfolios with over 6 yield with an average Investment Grade rating. If you look over time, think that is a good place to be for the clients who can hold the bonds to maturity even if there is a little bit of great volatility in the next year or so. The conversation is a challenge because the curve is inverted. There is a tendency to do the tbill and chill as everyone likes to call it. Stay short and not take a Duration Risk should we think that is a mistake. We believe over time the longterm neutral rate is lower than the current fed funds rate and you will be rewarded for having that duration. Scarlet tbill and chill come everyone likes sitting there and generating income without doing a whole lot and not taking a lot of risk. People have gotten used to 5 plus returns and not doing anything. I wonder how that has affected investment preferences, products they choose and expectations they have. You look at the etf space and every new launch has the word income in its description. Baylor i would say we are back in a world where fixed income provides income but it is hard for people to get away from that mentality we had where fixed income was in the wilderness for 14 years. I looked this morning. The 10 year treasury touched 4 in 2010 at did not get back until 2022. For 12 years we had 10 year below 4 . Now we are 4. 5. Has to be in the right context. We educate people that you can take Duration Risk especially if you think the next fed move is going to be down which we do. You want to be moving out the curve before that happens. Scarlet it is a new new normal. Thank you so much. Great speaking with you. Still ahead, the Justice Department suing live nation over anticompetitive practices in an effort to break up ticketmaster. This is bloomberg. Live nation, ticketmasters exorbitant fees and failures have been criticized by fans and artists alike, we are not here today because live nation ticketmasters conduct is inconvenient or frustrating. We are here because as we allege that conduct is anticompetitive and illegal. Our complaint makes clear what happens when a monopolist that a case its resources to entrenching its monopoly power and insulating itself from competition. Scarlet the Justice Department and almost 30 states suing live nation seeking to force the company to sell off ticketmaster or anticompetitive practices. Letbeing in our Bloomberg Intelligence analyst. We had gotten wind there was a suit in the making. The stock live nation down ticks. 7 on the day. This kicks off what is going to be a years long effort for anything to happen. Kevin we are still parsing our way through the filing the doj issued today. It is a fairly broad case. Theyre looking at several different areas of the business that are malpractice by live nations part should the buckets those full into which are the exclusivity element saying through de facto means the doj called it sticks and carrots or an actual written contract, live nation cannot lock in a venue for a three to five year horizon that they will only use ticketmaster. This is where the Consent Decree comes in. This idea of tying in different products and services. Live nation cannot say we will not give you a certain artist if you are not using ticketmaster or we will not let you use our venue if youre not using us as a promoter. Scarlet as a consumer, how would i see this lawsuit impact my purchasing of concert tickets . Kevin at this point, ticketing is very much a Competitive Industry live nation would argue. It is growing organically. Theres so much demand whether does the mastic mature market or international. Live nation are arguing this is a matter of education should the artist is the one who sets the price should ticketmaster comes in as the one selling the tickets but they are not the reason scarlet they are the middleman. So who ends up winning . Who ends up losing with his lawsuit underway . Kevin it is tough to say at this point but we do think even live nation has this history back to the consent degree when they originally merged live nation in 2010, the got extended in 2019 because the doj argued they were failing to meet the behavioral conditions set. Now it seems they are still supposedly doing that. A forced asset sale is a tall order but we think there is a possibility. Scarlet Bloomberg Intelligence senior associate analyst kevin near. Coming up we have cf benchmarks ceo joining us to talk about his companys work with six ether etf applicants awaiting approval from the sec. That could happen early as today. Lets take a look at how markets are faring. We have equities mixed on the day. The s p 500 at or near record highs. The nasdaq 100 at a record high thanks to and videos latest results. Yields moving higher across the curve whether it is the two year or 10 year. Data coming in today that showed manufacturing and services expanding faster than economists had anticipated. You couple that with days of fed official signaling higher for longer Interest Rates and add that all up and it is pushing yields up. Lets take a look at a couple stocks. Tesla shares moving up as well. I should say moving down. 1. 4 should right now it is down and we know elon musk is speaking at aviva tech. If you type alive ago, you can access the conversation. Crude oil down a 31 should gold futures using 2 on the day. This is bloomberg. So, what are you thinking . Im thinking. speaking to self about our honeymoon. What about africa . Safari . Hot air balloon ride . Swim with elephants . Wait, can we afford a safari . Great question. Like everything, it takes a little planning. Or, put the money towards a downpayment. On a ranch. In montana. With horses lets take a look at those scenarios. J. P. Morgan Wealth Management has advisors in chase branches and tools, like wealth plan to keep you on track. When youre planning for it all. The answer is j. P. Morgan Wealth Management. People couldnt see my potential. So i had to show them. Ive run this place for 20 years, but i still need to prove that im more than what you see on paper. Today im the ceo of my own company. Its the way my mind works. I have a very mechanical brain. Why are we not rethinking this . I am more. Im more than who i am on paper. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Lifes daily battles are not meant to be fought alone. Were not powerless. So long as we dont lose sight of whats important. Dont be afraid to seize that moment to talk to your friends. Cloud, you okay . Because checking in on a friend can create a safe space. The first step on our new journey. You coming . Reach out to a friend about their mental health. Seize the awkward. Its totally worth it. Scarlet scarlet this is bloomberg markets. So that the Crypto Community is expecting a decision from the sec regarding ether etfs. The token linked to the Ethereum Network has been surging ahead of the expected announcement. Overnight, u. S. Lawmakers sent a letter to the sec saying the commission should apply the same principle set forth in the approval of the spot bitcoin etfs as it evaluates the pending ether etf applications as the legal consideration pertinent to bitcoin also applied to either. Were talking Exchange Traded products. Bloomberg intelligence Senior AnalystEric Balchunas joins us now. His team raised the odds of approval from 25 to 75 . What changed . Eric the sec. So we are just the messengers here. We are trying to handicap this as well as we can to we were very bleak early on because what we were hearing was bleak. Ive been no contact from the sec to the issuers. Typically in this product this process the murky medication the better. They have to hammer out these documents. It was radio silence. It reminded us of the old days when the bitcoin etfs would get denied. We were like, 25 percent odds. There were some other signs i wont get in to. We are told trading and markets contact the exchanges and said we are looking to do this now. This was the 11th hour. It was a 180 from everything we have been hearing should we went up to 75 given this information should a lot of the reporting confirmed this. We are waiting until 4 00 p. M. To get the approval. There is always a chance nothing else happens but we are confident that is what we will see. Scarlet i remember there was a flurry of paperwork before the sec reproved approved the spot bitcoin etfs. Lets talk about the issuers behind the atps. Is it the same guys behind the spot bitcoin etfs . The big players like fidelity, blackrock . Eric fidelity, blackrock, those would be the two big ones. Grayscale is in this race. Arce, invesco, vanek. It is a carbon copy of the other ones. Called the first one the cointucky derby. We are calling this one the ethness stakes. They lined everybody up at once. It was interest in have all these issuers launching on the same day. We think we will see the same thing. Theres is a chance it is not the same way. You have to give blackrock, fidelity the favorite because they are so big. You favor the big guys. Everyone ate in the bitcoin race. That is why everyone is so excited should there a lot of assets is so excited . Scarlet lets bring in cff benchmarks ceo whose firm is a subsidiary of cragin; it is good subsidiary of cracking. It is good to speak with you. I would if you agree with eric in terms of the odds of approval at 75 and all these issuers getting approval at the same time. A pleasure to be here. Thank you for having me. We are an index provider. We are involved in a number of these applications with blackrock, franklin templeton. We dont speculate on whether it is a go. We do our job. Our job is to make sure our index is robust, it is available, it is printing and the issuers and investors into the etfs can rely on it. Scarlet you are prepared for everything to go forward all at once if that is what happens i take it. Job is to be prepared. Our job is to be there at the starting line with our partners to take part in an exciting ethn ess stakes as eric has named it. Scarlet eric is really good at that. Gary gensler the head of the sec was reluctant to approve spot going back spot bitcoin etfs. He was forced into it by court ruling. Do we think the sec is holding its nose in the same way when it comes to the spot ether etfs . Although we are involved in the process, we are not experts on the sec and what happens inside the sec. We would say the facts are in line with the letter that members of congress sent to the sec. The facts point to approval that the sec should approve. If we go by the framework and the bars set in the approval of bitcoin, if we apply the same standard that was applied when the spot bitcoin etfs were approved in january and that is is ether a commodity . All historic regulatory actions from the major regulatory agencies in the usa. 2 the fact it is. The cf tc approved ether few chance either futures and options as commodity futures contracts. The sec has authorized ether etf either future etfs to be traded. As commodity futures contracts etfs to theres no as commodity futures contracts etfs. On top of that the other bar the sec had previously set with the bitcoin approval was a correlation between spot bitcoin traded, the spot commodity traded on Major Cryptocurrency Exchange platform such as coinbase, such as kraken and the correlation exhibited, the price correlation exhibited versus the regulatory futures contracts. Both those counts, the facts point to ether meeting the bar and approval should be granted. Scarlet you bring up a couple things and one of which is whether ether is a commodity or security and that comes down to staking which is a complicated process. In the end it generates passive income. It is a big issue when it comes to ether because some firms tied their applications have dropped their plans for staking. We know that your company is a Kraken Company and have agreed to pay 30 million to settle sec allegations it broke the agencies rules by offering staking as a service. What do you think is the regulatory outlook tied to staking . I think this is a much bigger question then benchmarks can answer but i think we look at what happened in congress yesterday with the passing of the voting on fit 21. That is a positive sign we are about to see some clarity. It is positive for everyone. It is positive for the crypto industry should it is positive for Financial Services providers. It is positive for investors to get clarity around some of these questions you rightly raise. Scarlet where you land on taking staking out of the etf applications . Obviously it is a feature that would have been welcome for the issuers and for investors. That is why many of the applications included staking in the first instance but clearly through dialogue with the sec and other stakeholders that the staking component has been removed. That product feature will not be there. Given the reward rate, weve met republish a benchmark reward rate. That is printing at just over 3 . In terms of part of the proposition, the staking rewards are a bit of a rounding error. We dont think they will Impact Investor interest and ultimately the flows that we are going to be seeing in the etfs. Scarlet big picture, it may not be as big a deal as some people think. When spot bitcoin etfs were approved, everyone is thinking what is next. Now we are on the cause of a decision from the sec, what do you think is next . Where you live to in terms of the next product or region for these products to gain popularity and acceptance . That is a great question because we think of it slightly differently. We think of what is going to happen next now we have spot bitcoin etfs and ether etfs. We think the most impactful catalyst, this is a impeccable catalyst. Wall street will be turbocharging the but understanding of crypto as an asset class amongst investors. What we are going to be seeing our institutions like lacqua, franklin templeton, fidelitys with established Larger Research and Distribution Capabilities educating investors on the key propositions of bitcoin, its finite supply, decentralization and immutability as well as ether. 20 we talk about smart contracts, staking. That is 90 of the court crypto feature set. What we will see is u. S. Investors will begin to understand the burgeoning blockchain economy and its potential to deliver utility and create value. That puts u. S. Investors of all stripes in a much more advantageous position than investors in most of the other parts of the world. Scarlet growing the ecosystem and deepening the education and deepening the education understanding of this asset class. Thank you so much for joining us today. Talking with us about the expected decision out of the sec on the spot ether etfs. Coming up, we are looking at an nvidia with him within 5 waiting in the s p 500, rallying more than 11 today. It is our stock of the hour. This is bloomberg. Old school hard work meets bold new thinking. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. the road to opportunity. Is often the road overlooked. at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. Because we believe the more ways we all have to move forward. The further well all go. Scarlet it is time for the stock of the hour. This could be the stock of the year because we are talking about an nvidia. It Beat Estimates in the First Quarter with the chipmaker boosting its Quarterly Dividend 150 . So announcing that 10 for one stock split. Revenue blowing away wall street estimates. Im joined by a Senior Analyst who raised his price target on nvidia to 900. There is a lot to discuss with you here. Lets start with the stock split should 10 to one stock split does not change valuation but it can give perception stock is cheaper. What effect do you think this will have an individual investors and nvidias Investor Base . It helps a lot. A lot of the Investor Bases Retail Investors and some of them want to buy at 100 at the time. Sometimes it is harder for them to buy at 1000 at a time should it is a shareholder friendly moved by the company. They did this a few years ago. Last time they were close to four digits and they are doing it again now to make room for their investors to get the next leg of growth. Scarlet growth is what this story is all about chart a lot of people describe nvidia as having a monopoly on ai chips. To what extent is it capitalizing on leveraging pricing . How much to revisit have to raise prices because it is settling the market essential . Gil this year it is. Gil this year they have absolute pricing power. There allocating their chips. There far more demand for nvidia gpus this year than there is available supply and so they have been using that to get companies to invest in ai, to work with them, to do joint pr. They have leveraged it very well. That may not sustain forever but this year they are getting a tremendous amount of leverage from that. That is the motivating factor for their large customers to invest in their own chips. Microsoft, amazon, google, mehta are working on their own chips so they are not in a position where theyre beholden to nvidia waiting for an allegation, paying whatever prices theyre asking. Scarlet nvidia has this incredible head start and it is difficult to decide youre going to start mean affection your own chips when you dont have experience in it to nvidias margins are the envy of the tech industry. It expects up to 76 in the second quarter. What would bp can margin for a company like nvidia . Gil 99 of the revenue is still hardware. There are still Hardware Company. A big part of the differentiator is the software but there is still a hard they are still Hardware Company and this is as high a margin as you are going to get to these are peak margins for them at a healthy level. Back to your point about the hyper scalars, they have been making chips for years. This is not something they have just jumped into. There implementing those chips. That is what may keep this as the ceiling for margin for nvidia. Sonali theyre making a different kind of chip then they were used to before. I wonder also nvidia had said it expects automotive demand to drive Data Center Revenue this year. Data Center Revenue was the one line everyone was looking at in their earnings reports. You attribute that to tesla. Is that a good thing to rely on tesla as a key customer when the Company Seems to be in flux a lot of the times . Elon musk changes his mind an awful lot. Gil i dont think elon musk is going to change his mind about selfdriving. He is training selfdriving on nvidia gpus. They are trying their own chips but for the foreseeable future they are using nvidia gpus to train this capability which is critical for the strategy of the company. This is not something theyre likely to pivot on. That demand from tesla is very important to nvidia. It will likely sustain as tesla gets better and better and extends its lead over other car companies. Scarlet thank you for explaining that. Anytime someone mentions tesla, you look at what is going on with tesla and sometimes it is a dumpster fire. Lets talk about how nvidia has been the go to company for 70 waves of innovation across technology. Gaming for instance. Crypto mining. Nvidia provided the chips that it all that. Now it is ai. When you look ahead, what is next . What is your confidence and nvidia will be at the leading edge of the next wave of innovation . Gil they still have the stateoftheart product. Every time it looks like someone is going to catch up to them in terms of stateoftheart, the introduce a new product. They have accelerated their Product Introduction cadence to once a year from once every two years. As i mentioned earlier, they are collaborating closely with all the companies that are innovating here. They are on the cutting edge of what these products need to do and they are customizing them to those needs whether in Computer Science or medical science and that is where they are headed into making solutions that give more and more capabilities to the Cutting Edge Research on ai, on medical research and working in collaboration with the leaders in those markets. Scarlet that is the first time i have heard of medical research being brought up as something to look for. Thank you so much. Da davidson Senior Analyst giving us the latest on our stock of the hour, the stock of the last two years with a 523 gain. Tech is the only sector of the 11 groups in the s p 500 that is up. You can credit that to nvidia. Coming up, President Biden is scheduled to hold a press conference with the kenyan president in washington. We have more on that next. This is bloomberg. Super excited to open up my diploma from Southern New Hampshire university. Im nervous, im excited. [man] okay, lets see it. Lets see it. Oh my gosh. Jesus suarez, i did it and its here. group cheers [narrator] next term starts soon. Visit snhu. Edu. Visit snhu. Edu. Scarlet for the first time in 16 years, an american president is hosting an african leader in a state visit. The kenyan president is at the white house right now. This is part of President Bidens commitment to engage with african countries. Lets bring in and the current to give us more context and when we say commitment to engage, i notice african nations have a strong relationship with china and this is about the u. S. Playing catchup here. Enda i think it is all about catch up about seems to be the theme of the analysts watching this closely. You mentioned. This is the first state visit in 16 years by an african leader. China has done a lot of business in the region since then. The theme of this talks these talks with President Biden or longer walks along the lines of corporate deals, talk of military corporation as a nonnato major ally. There is talk of investment with chips or a corporation in the chip space. The theme is up and call the nairobi washington document which is about making kenyan access were Getting Better terms for International Finance when it comes to the world stage and the rest of africa. It is not just the u. S. Is playing catchup. It is not just they are competing against china. There is russia. There is the uae, saudi arabia, france. There are plenty of other states vying for influence in africa because of the demographics. Because of the Natural Resources and minerals. I think a lot of people are viewing these talks and are struck by how long it has been since there has been a state visit by an ever can leader and it is all about the u. S. Trying to muscle in to a space it seems to have long since lost ground on. Scarlet muscling in because it kind of feels like that. In terms of security ties, we know that the u. S. Is trying to play more of a leadership role in terms of making sure other countries line up behind it when it comes to russia, ukraine, what is happening in the. Middle east to expect President Biden to speak at length on that with the president . Enda it goes to this idea the u. S. And china irvine to win over the swing states. There will be a specific military angle to these talks which is the idea of being a major nonnato ally which is broadly about deepening military alliances. The analysts who are watching this closely and make a point that africa writ large is pitching itself in the middle both camps. None of these countries are going to pick either side. Theyre going to be open for business with either side. The idea in this case kenya is going to come out of its meeting pitching its camp firmly on the u. S. Side is probably unlikely. It is about what they can get from either side. That seems to be a theme from plenty of the people watching this. Scarlet this is a live shot of the east room where we are awaiting President Biden and the kenyan president where they will hold a press conference that should begin fairly shortly. Very quickly, you are an economist. You cover the economy for us at bloomberg. Do you expect to this visit to have any impact on the u. S. Economy . Enda not necessarily the u. S. Economy. I do think it will be interesting in terms of the u. S. Role in debt relief for emerging nations. That has been a contentious issue on the global circuit especially for countries in africa. It has been a tradeoff. The imf approach and the china approach. Watch to see how this nairobi and washington dialogue plays out. Scarlet enda curran of Bloomberg News in washington. We are waiting for President Biden to begin the press conference. That does it for bloomberg markets. This is bloomberg. The future is not just going to happen. You have to make it. 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