US to Probe Cuba Speedboat Shooting; Third Round of Iran Nuclear Talks Begin

0:28The news doesn't stop on the weekends. We put the past week's events into context, examining what happened in the markets and the world. Then on Sundays, we speak with journalists, columnists, and key political figures to prepare you for the week ahead. Join us as soon as you wake up and bring us with you wherever your weekend plans take you. Watch us on Bloomberg Television, listen on Bloomberg Radio, stream the show live on the Bloomberg Business app, or listen to the podcast. That's Bloomberg this weekend, Saturdays and Sundays starting at 7 a.m. Eastern on February 28th. Make us part of your weekend routine on Bloomberg Television, Radio, and wherever you get your podcasts.

1:09Bloomberg 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, we begin with new tensions in the Caribbean. The Cuban Coast Guard has shot and killed four people on a speedboat registered in Florida. Cuba's government says the 10 armed people on board were Cubans living in the U.S. who plan to enter the country to fight the government. Secretary of State Marco Rubio says the U.S. will conduct its own investigation. It is highly unusual to see shootouts in open sea like that. It's not something that happens every day.

1:49It's something, frankly, that hasn't happened with Cuba in a very long time. And but but we're going to find out. We're not going to base our conclusions on what they've told us. Secretary of State Rubio spoke to reporters last night, and we get more from Bloomberg Deputy Washington Bureau Chief Laura Davison. This is hitting on a really critical moment between U.S. and Cuba tensions. You know, there's been a U.S. embargo of of oil to Cuba for several weeks now, and the island is really facing an economic crisis as there's major energy shortages and the country is essentially running out of money.

2:21Bloomberg's Laura Davison reports Cuba's interior ministry says the U.S. flagged boat opened fire on Cuban security forces within one nautical mile of the province of Via Clara. A U.S. official told the New York Times the people on the vessel were trying to get relatives out of Cuba and no U.S. Navy or Coast Guard ships were involved. Let's get to some new developments in the Middle East, Nathan. U.S. and Iranian officials are meeting in Geneva today for the latest round of nuclear talks. And we get the very latest with Bloomberg Middle East correspondent Jumana Bersechi. There is a glimmer of hope.

2:52The fact that these negotiations are going ahead is perhaps a positive sign. I will tell you that expectations are very, very low in terms of securing a breakthrough. But the U.S. has been applying a lot of pressure on Iran the last couple of days, not just with that huge military buildup, all of the verbal comments from President Trump. He even mentioned Iran and the State of the Union and the latest round of sanctions and some of those entities that are linked to Iran as well in the last 24 hours. So there is a lot of pressure on Iran to come to the table and agree to some form of a diplomatic resolution with the U.S.

3:24And Bloomberg's Yamana Bersetchi says Tehran's priority in the talks is the lifting of sanctions that have hobbled its economy. Well, Karen, the U.S. is vowing to maintain high tariffs on China hours after Beijing warned against any future hikes. U.S. Trade Representative Jameson Greer says President Trump wants to keep tariffs on China steady at a range of 35 to 50 percent. Overall, the U.S. has imposed a 150-day 10 percent global tariff following the Supreme Court defeat for the president. Greer tells Bloomberg the president wants to bump up that tariff rate. We'll put out a supplemental proclamation that the president will sign, going to 15 percent where appropriate.

4:02Remember, before the Supreme Court struck down the tariffs, a lot of these countries had agreed to have tariffs, U.S. tariffs on them of 18 percent, 19 percent, 20 percent. So going up to 15 percent, for them, at least temporarily, it's better than the deal that they had. U.S. Trade Rep. Jameson Greer says President Trump will be in Beijing at the end of next month to discuss extending the tariff truce with China. Get the full conversation on the new Bloomberg Video Hub. It's at Bloomberg.com slash videos. Now let's get to the latest on the Jeffrey Epstein scandal, Nathan. Former President Bill Clinton and former Secretary of State Hillary Clinton are set to face questioning from lawmakers about donations to the Clinton Foundation boosted by Epstein.

4:46Bloomberg's Amy Morris has more from Washington. The Clintons are expected to testify before a House panel over the coming two days. They'll be sworn in. They have to answer questions under oath, and they initially refused to appear. They finally agreed after months of negotiations. House Oversight Committee Chair James Comer says they have a lot of questions. One of the questions that we all have in both parties is how was Jeffrey Epstein able to surround himself with the most powerful people in the world? House Oversight Panel Democrats will brief the media after those depositions. The Clintons say they're being selectively prosecuted by Republicans on that committee.

5:22In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. And separately, the Justice Department says it'll look into whether it improperly withheld documents from its Epstein files. That announcement comes after several news organizations reported that records involving uncorroborated accusations from a woman against President Trump were not among those released to the public. Well, let's turn to the markets now, Nathan, where a rally in stocks is stalling. Following NVIDIA's latest sales forecast, the dominant maker of artificial intelligence processors did deliver profit in first quarter outlooks that easily beat analyst estimates.

5:55The chipmaker said fiscal first quarter revenue will be about$78 billion, and that was more than$5 billion above the average analyst estimate, but it did fall shy of some of the loftiest projections. Matthew Bloxham covers NVIDIA for Bloomberg Intelligence. In isolation, it is a great number and it's really strong growth year on year. But I think you have to put it in the context of where NVIDIA is right now in terms of the overall market perceptions and where the share price is. It's a$4.7-something trillion company. There's a huge amount of forward growth baked into the share price. And these numbers, even though they, on paper, beat the average analyst expectation, I think that the whisper numbers, if you like, were kind of higher.

6:43And Bloomberg Intelligence's Matthew Bloxham says NVIDIA still faces uncertainty in China. For now, the company will continue to exclude data center revenue in China from its forecasts. And right now, shares of NVIDIA up more than 1.5 % in early trading. Well, software stocks could be under pressure once again this morning, Karen, following earnings from another former high flyer. Bloomberg's John Tucker joins us with more on that. John. And Salesforce gave a lukewarm outlook for sales growth. Nathan, the leading maker of customer management software or software as a service, SaaS, Salesforce has become a poster child for Wall Street worries about the impact of AI.

7:23The company says revenue is going to be about$46 billion in the new fiscal year. That forecast is in line with analyst estimates, but it is not impressing investors. Shares are down close to 4 % pre-market. And the CEO, Mark Benioff, he doesn't sound too worried. He says this is not our first Saspocalypse, as he puts it. The San Francisco-based company shares they're down about 27 % this year, alongside competitors like Intuit, Workday, and ServiceNow. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. And a programming note. The markets may pause for the weekend, but the world does not.

7:59And that's why we're bringing you a new radio and TV show. Bloomberg this weekend is looking beyond the daily headlines to the bigger themes driving politics, business, and culture. Join David Gura, Christina Ruffini, and Lisa Matteo for smart conversations and in-depth interviews that help make sense of the week that's been and what comes next. Saturdays and Sundays from 7 a.m. Eastern on Bloomberg Radio, TV, and the Bloomberg Business App.

8:29Time 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 Barr. Michael, good morning. Good morning, Karen. There are more calls for Republican Congressman Tony Gonzalez of Texas to step down. It comes amid questions about whether he had an extramarital affair with a staffer who died by suicide last year. Fellow Republican, Florida Congresswoman Anna Paulina Luna. I think that Tony Gonzalez should not be seeking re-election. I think that this is a gross reflection of everything wrong with Washington. And it's not just on the Republican side.

9:02It happens on the Democrat side, and I'm thinking about potentially bringing forward a center next week for Tony Gonzalez. The congressman said he had no plans to resign following a meeting with House Speaker Mike Johnson. Last week's deadly shooting during a youth hockey game in Rhode Island has claimed a third life, whose daughter and grandson were also killed. Pawtucket police say Gerald Dorgan, who had been in critical condition, has died from his injuries. The mayor of Pawtucket says we are heartbroken to learn that another life has been lost as a result of last Monday's senseless shooting at Lynch Arena.

9:37The NYPD continues to investigate a huge snowball fight at Washington Square Park in Manhattan Sunday where officers were seen being pelted with snowballs. City Police Commissioner Jessica Tisch called the behavior disgraceful and criminal and vowed to continue the investigation. New York Mayor Zoran Mamdani says he has no plans to limit organized snowball fights within the city, but says he has seen the videos. You know, I've said time and time again that having seen these videos, to me it was a snowball fight that got out of hand, and it should be treated accordingly. Mayor Mamdani says he appreciates the NYPD's work during the winter weather.

10:17Celebration of life services begin today in Chicago for civil rights activist and former presidential candidate, the Reverend Jesse Jackson. Jackson, who died on February 17th at age 84, will lie in repose at Rainbow Push headquarters through tomorrow. Global News 24 hours a day and whenever you want it. With Bloomberg News Now, I'm Michael Barr, and this is Bloomberg. Karen. Thanks, Michael. Time now for our Bloomberg Sports Update, and for that we bring in John Stashauer. Thanks, Karen. Marquee game in the NBA. Oklahoma City and Detroit have got the two best records, The Thunder played without five of their six top scorers, and the Pistons won 124-116.

10:55Jalen Dern and Kane Cunningham both scored 29 points. Tenth straight win for San Antonio, who's only two games behind the Thunder. The Spurs won in Toronto. James Harden, who was just traded to Cleveland, has a broken thumb. He could be out for a while. College basketball in the Big East. UConn blew out St. John's 72-40. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak. Coming up after this. Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London. We're the hosts of the Bloomberg Daybreak Europe podcast.

11:32We're up early every weekday, keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled, and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break. So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens. It's smart, calm and to the point.

12:08And it fits into your morning. You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris. on Apple, Spotify, YouTube, or wherever you get your podcasts.

12:25Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. The earnings story of the week is in the books, but the reaction to NVIDIA's latest results may still be being told. The AI chip giant did deliver a first quarter outlook that easily beat the average Wall Street estimate. But some of the most bullish investors in the AI arms race may have been left a little bit less than impressed. Joining us now is someone who is very bullish on the AI story, Dan Ives, Global Head of Tech Research at Wedbush Securities.

13:04So the top line numbers, 73 % sales gain in the quarter to$68.1 billion. And the projection for this quarter,$78 billion. And the stock is kind of moving a little bit higher. Your reaction to the numbers, Dan? Good morning. Yeah, great to be here. Look, I think they were stunning numbers. And if you look, especially data center demand, 75 % growth. Look, I think there's a stock that's up 3 % to 5 % today. And I think it's one where you talk about some of the AI bubble fears. You look at what they put together. together, this speaks to really a CapEx super cycle that's even accelerating more in the street expected.

13:45That's going to be a huge positive for the rest of tech. And the knee-jerk reaction here is very underestimated in terms of what I think the stock and tech is going to do from this. So why do you think that we're not seeing that kind of more bullish reaction that you think this stock should show up in? Look, we're in what I call like an AI ghost trade. I mean, it's been very negative sentiment that we've seen over the last month, especially from Anthropics, some of the Cod worries. And I think right now this is a guilty to a proven answer in tech market. But when you look at these numbers and you look at CapEx and the story it's telling, it's that if you think about it, this is called second, third inning of the AI revolution.

14:30Markets treating it like it's seventh, eighth inning. And I think that is the key here. You know, me and you have talked about this over the years. Sometimes knee-jerk reactions. You go through these sort of lulls. That's what we're going through. The numbers speak for themselves. Well, of course, the number that still hangs over this story,$650 billion from the hyperscalers on CapEx. Did Jensen Wong, the CEO, do enough in the call to assure investors that that kind of spending from its own customers is going to pay off for them? Yeah, I think he did an excellent job talking about how the CapEx is going to pay off for NVIDIA, what that means for this next phase specifically, not just Blackwell, but Rubin.

15:14And I think you'll hear more about that at GTC in mid-March. Look, I think if there's a blemish, it's the continued theme. China is basically a goose egg right now because of the restrictions. Investors want to see China, ultimately, that become what I believe could be, you know, we think about the acceleration, an incremental 5%, 10 % growth for NVIDIA. But right now, that's in the hands of the government, given the restrictions. In our last minute, Dan, we also got results from Salesforce, kind of a disappointing revenue forecast there. What does that mean for the software story going forward?

15:56We saw a workday that was down and then ultimately ended up up. I think Salesforce, I think this is actually a great conference called by Benioff. Look, AI is a headwind in the near term, but this will be a tailwind. They're turning it around. And I think what he laid out in terms of the growth strategy should put investors at ease. And I think you combine that with NVIDIA and it starts to fight the AI goose trade, which has been the black cloud for Microsoft, Oracle, the overall software. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

16:38Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long.

17:16I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

17:36This is Special Agent Regal, Special Agent Bradley Hall. The time is approximately 11.15 a.m. About to start consensual telephone call with Dr. Daiwa Zhang. China's Ministry of State Security is one of the most mysterious and powerful spy agencies in the world. But in 2017, the FBI got inside.

18:16I've never seen that much evidence in my entire career, and I don't think we'll ever see that much evidence again. I now have several terabytes of an MSS officer, no doubt, no question, of his life. And that's a unicorn. This is a story of the inner workings of the MSS and how one man's ambition and mistakes opened its vault of secrets. Listen to The Sixth Bureau from Bloomberg Podcasts starting on February 13th on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.