Bloomberg Intelligence

Get the inside scoop on OpenAI's groundbreaking deal with Broadcom for custom AI chips! Domino's promotional strategies boost sales, while big banks exceed earnings expectations through strong trading and management growth. Luxury goods show signs of recovery, especially LVMH, as sales rebound in China and the U.S. Plus, Kellogg's adds protein to Pop-Tarts to meet consumer trends, and competition in AI chips heats up with Oracle's commitment to AMD. It's a whirlwind of insights across tech, food, finance, and luxury!

American Express reports a surge in demand for its revamped Platinum card, doubling new account acquisitions. Experts discuss the rising risks of auto loans as delinquencies spike while car prices soar. There's a spotlight on Arthur Blank's $50 million donation aimed at helping Pell grant recipients graduate from HBCUs, shedding light on the financial struggles of many students. The conversation also touches on how automakers are navigating the challenges of high vehicle prices and what this means for the used car market.

Lee Klaskow, a senior analyst at Bloomberg Intelligence, shares insights on J.B. Hunt, highlighting a remarkable jump in shares due to strong earnings driven by cost cuts and a robust intermodal strategy. He delves into the complexities of the freight market, discussing driver supply issues and turnover rates that could impact capacity significantly. Klaskow also touches on regulations that may diminish driver availability, making these dynamics crucial for the industry.

BlackRock is making headlines with a massive $40 billion acquisition of Aligned Data Centers, signalling soaring demand for data infrastructure. LVMH surprises the market with a return to sales growth, hinting at a potential luxury sector recovery. Meanwhile, Grindr's shareholders are exploring a move to take the company private, while Apple is gearing up to expand its manufacturing in Vietnam, seeking to diversify away from China. The discussions also touch on the evolving landscape of AI investments and digital advertising opportunities, especially for niche apps.

Oracle plans a massive deployment of AMD's MI450 chips, marking a shift toward alternatives to NVIDIA. GM faces a hefty $1.6 billion charge as it retrains its EV strategy amid government policy changes. Boeing impresses with a rebound, delivering 160 aircraft, the highest in years. On the food front, Kellanova is set to launch a protein-packed version of Pop-Tarts, joining the trend of healthier snacks. The podcast also explores the evolving landscape of AI partnerships and the implications for major players in tech.

OpenAI and Broadcom are teaming up for a massive 10-gigawatt AI data center capacity expansion. They'll create custom chips that could significantly cut costs compared to existing competitors. Meanwhile, First Brands faces turbulence with a CEO resignation amid bankruptcy, raising concerns about the auto market. In media news, Warner Bros turned down Paramount's low takeover offer, keeping its options open for future negotiations. Discussions around Apple’s potential role in AI infrastructure highlight its challenges in catching up.

A $10.9 billion merger between Fifth Third and Comerica reshapes the regional banking landscape. Verizon's new CEO, Dan Schulman, is poised to innovate consumer relationships beyond wireless. OpenAI's agreement with AMD for GPU use raises questions about infrastructure financing. Meanwhile, IBM's partnership with Anthropic aims to enhance AI for enterprise clients. On the consumer front, Constellation Brands adapts to changing tastes with non-alcoholic offerings, while ICE invests in Polymarket to tap into retail prediction markets.

Microsoft faces a persistent data center crunch, with shortages impacting cloud growth and AI infrastructure. Analysts discuss how this affects spending and margins in tech. Meanwhile, Stellantis feels pressure from proposed tariffs due to its reliance on Mexican production, prompting potential reshoring. In retail, strong demand is seen in hardlines like beauty and sports goods, despite economic uncertainties. Loyalty programs and unique products are key for retailers to keep customers engaged in a competitive market.

Geetha Ranganathan, a media analyst at Bloomberg Intelligence, discusses the intriguing potential consolidation between Paramount and Warner Bros. Discovery. She shares insights on why Paramount is considering this move and the strategic motivations behind it. Geetha also touches on the challenges of funding and regulatory hurdles that could impact the deal. With private equity talks in play, she highlights Warner's debt situation and the implications for any future acquisition, providing a fascinating look at the evolving media landscape.

Elon Musk's AI startup xAI is raising a whopping $20 billion, with significant backing from Nvidia. There's a debate over whether the FCC will relax TV ownership caps, particularly impacting broadcasters like Nexstar-Tegna. Dell's future looks bright with growing demand for AI servers, while Cisco is making its mark in AI networking but faces tough competition. In the auto sector, BMW is struggling with lower guidance due to weak sales in China, and Tesla is rolling out new models under $40K to ramp up competition.