Yesterday. 4. 23 . If you check out the price of copper, copper ended at the highest settlement since october of last year. This morning, it is off 1 . Watching that copper closely because it is a signal of expectations for global manufacturing. Japan central bank raising rates for the First Time Since 2007 and ending the other easing measures. This is the longest easing from any central bank. They were the lfirst to go in ad the last to come out of the easing. It raised the rate to 0. 1 . That was up from negative to 0. 1 . The yen trading at the lowest level of the year compared to the dollar. The central bank abolishing the yield curve control policy for japanese sovereign bonds. The central bank said it planned to purchase government bonds worth broadly the same amount as before. It will scale back asset purchases and qt. It is not really aggressive if you are talking about zero to 0. 1 . Backing away from the eightyear experiment. Experiments are not eight years. The new normal. It wasnt really a great thing. With the experiment that is not working, you dont let it go eight years. They did. Thats what they called it. Think about it. Money needs a cost or nothing really works. Theres no way to price anything. The experiment tried around the world. To lesser extttextents. You get paid to buy a house . We have nut jobs out here in times square. Never mind. We are watching shares. The show outside the show. We are watching shares of unilever. It will split off the ice cream unit which includes ben jerrys and magnum. It will impact 7,500 office based jobs globally. Unilever says this will allow it to focus on four distinct divisions. P beauty and well being and personal care and home care and nutrition. I guess ice cream did not fit in the nutrition . Thats for mayo. Ben jerrys almost invented woke. Long before woke was cool. Ben jerrys was woke. Every time i read a news story about ben jerrys yummy flavors. They did. What is your favorite . Cherry garcia . I dont know. I havent had it lately. I cant eat ice cream. They have some really good flavors. Ice cream is my enemy. I would eat it all the time. Thats what Marlon Brando liked. He liked it so much. If you let yourself go, you would make a milkshake. I would bathe in this. Get me a bathtub and a straw. Thats an image for you in the morning. Ill wear a suit. A bathtub and a straw. No weight limits. I wouldnt stop. That is sick. Yeah. In washington, u. S. Lawmakers and the white house reportedly reached a handshake deal to keep the government funded through september 30th. Now they have to race to make it o official before the friday deadline. The deal came last night after the agreement on border spending at the department of Homeland Security which was the final sticking point. No details were available, but the legislative text is expected to be published tomorrow. Maybe not surprising to reach a deadline that comes like this, but there has been so much pushback. This pushed out kevin mccarthy. We will wait and see what the text says and the reaction. Will we ever have something longer than months . It has gotten worse year after year. Now to the tiktok bill. U. S. National Security Officials holding a closeddoor briefing tomorrow for senators on the commerce and Intelligence Committee focused on the threats reportedly posed by the chineseowned platform. It is hosted by the chairs of two committees. Marc warner and maria cantwell. Members on the committee will be there. We had ted cruz on last week. The fbi and officer of the National Intelligence department will be in the meeting. And senator manchin told Brian Sullivan he supports the bill to ban. We cannot go and gather information in china. If we cant reciprocate in a country, there is something wrong. That tells you everything. Other than that, everyone knows they are using that information to ill nfiltrate our markets. Senator manchin said tiktok will be an American Company or they will change their business model. United health group has paid out more than 2 billion to help Healthcare Providers affected on the cyber attack change health care. The advances will not need to be repaid until claims return to no normal. The company is making significant progress in restoring the services impacted by the attack. That was a while ago. It has been at least three weeks since that attack happened. Change healthcare offers eprescription software. It left many unable to fill medications or get reimbursed by insurers. This is a crippling scott was with us last week and he said they are responsible for billing systems. He said they have to go down and check everyone of the issues to see what was impacted. That is why it is taking so long. I like this shot today. Im not sure why. We look good. Is that what it is . We did coordinate. Maybe thats what i noticed. A. I. This is the area in terms of cost savings and good for humanity. Healthcare should be what we focus on. Speaking of a. I. , we will talk about this new mr. Blackwell chip. No one knows what im talking about. You do. I only knew about it when you jogged my memory. It took me a while. Mr. Blackwell died 16 years ago. In his 80s. That used to be every year he would wait for mr. Blackwells list. This is called the blackwell. In fact, you take a gpu 200 rack scale system and you put 36 grace blackwell super chips on this baby and you get 30 times the performance and 25 times less cost and energy for a. I. That sounded really good. Fing a it did. I took latin in high school and i understand latin more than i understand what i just said. And i dont remember anything from four years of latin. Comp coming up, we will talk about the mr. Blackwell chip with the nvidia ceo revealing the new generation of chips in the packed arena. And later, dan sullivan will join us live from sera week. 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Or a human cannonball. Or save money the easy way, with xfinity mobile. Existing customers can get a free line of our most popular unlimited plan for a year not only will you save hundreds but youll also be joining millions who have connected to americas most reliable 5g network. Sure is a lot safer than becoming a stuntman for money. Get a free line of unlimited intro for a year when you buy one unlimited line. Visit xfinitymobile. Com today to learn more. Nvidias a. I. Developers conference is under way. Ceo jensen huang unveiling the newest chips at the packed house in san jose yesterday. Hopper is fantastic, but we need bigger gpus. So, ladies and gentlemen, i would like to introduce you to a very, very big gpu. This is hopper. Hopper changed the world. This is blackwell. Told you. Actually, the guys name is david harold blackwell. It wasnt richard blackwell, the fashionista. The gpu has advantages in terms of performance and energy usage. Anybody who is anybody will get this new line and upgrade from hopper. Cisco, dell, hp, lenovo, super micro will deliver Service Based on the blackwell lineup. Our next guest is the tech investor who might understand this. He owns nvidia and joins us now. Paul meeks at harvest portfolio management. I dont know what you are, paul. Do you have an engineering degree . For our viewers to understand, obviously, becky and i are up to speed on this. Can you just make it easier for people that may not be as in the loop as us of what is going on . Joe, before the commercial break, you went through the specs and you sounded nerdy. It is a larger and physical gpu. It uses two die techniques from taiwan semiconductor. You think about it. It will provide about 5 x the performance of the latest h 100 hopper chip. Eventually, more and more horsepower. They are making a bet that theres going to be a never ending desire for these chips as we continue to build out the large language models. We will see what happens in about three hours today as they will have a meeting for the wall street analysts like me and we will be able to get some guidance to the financial impact. Although the specs here are impressive, but they already have about 90 market share in the chips, the gpus are building large language models. Maybe this brings a greater profitability, but they are essentially already owning the pie. What they announced yesterday was snappy. Next, we can get into the nim software they announced. What we need to hear is for them to keep their Technology Lead specifically over advanced micro devices. At least last night or yesterday afternoon, i think they checked those boxes which they needed to check because the stock is up fivefold since the introduction of chatgpt a couple of years ago. Better margins or better profits on a stock that people say is not that expensive relative to other technology stocks. The stock is off a little bit, but that could be the runup which was so significant. You said software is also talking about the omniverse . There is more than the blackwell technology that was introduced . They offered software for inference. In the a. I. Supply chain, you start with the large language model building. Thats whats going to continue to happen for another year or so. You take all of that great data that you crunched and you try to create some patterns that could be used by folks. What they want to do is make sure since they already own the pie for large language model building that they keep their lead in the next stage inference. They announced nim software. M nim. This will charge 4,500 per year for a license fee to better use their chips in the inference stage which is the next stage of a. I. The price point is not going to drive revenue like the chips did, but the nice thing about the Software Licensing model is there are no hfmanufacturing costs. Pound for pound, it is more profitable. It is not a onetwo punch that is necessary. The idea they will be more than a chipmaker. The idea you could become more like a microsoft or somebody with the Software Aspects to that. That changes the equation to some extent and the profitability of this company. Becky, thats a great point. What theyre trying to do is become the a. I. Ecosystem. Kind of like apple successfully did with the Walled Garden. You had to have the phone and the watch and the earbuds. This is what nvidia is trying to do here. Build a Walled Garden ecosystem in a. I. That will be durable for years that doesnt just include several iterations of the fastest gpus, but software and other items in the bundle. They are trying to copy that apple Walled Garden playbook. We have been told the training part of deploying the a. I. System is where you use the high level chips. Inference maybe with compepetitn because you need a big Computing Power . I dont understand it. Do you eventually get done with the training where you will not need successive generations . I dont know what comes after blackwell, but it reminds me of moores law. Im sure the next one that they design is going to be 30 times more powerful than blackwell which was 30 times more powerful than hopper. Is that still happening . We need training forever and also inference . Both of those aspects of a. I. And a. I. Rollout will go on at the same time forever . Joe, thats a really good point because if there is an end to the rainbow and large language model building, you are right as we get into frinferenc but you still need gpus and that is where somebody with micocro strategies can step in. They are trying to proptect the moat software. Once we get through the large language building is that they conquered that step, but what happens with step two . There will be other players. These products will never been c commotized. It is not a worry of what nvidia does this year, but do they drastically slowdown at some point . If you feel that is the case, you have to sell the stock. Paul, well end it there. You remember mr. Blackwell . That was a nice History Lesson from you, joe. I did not. He had a worst dressed list. In the old days, he designed stuff for jane mansfield. Toward the end, he would public this list. Lindsay lohan. She went from adorable to deplorable. Im just looking at it. As did her career after that. He said oh, no. Here is something about camilla. She looked at a mirror and watched it crack. He was funny and snarky. This has tnothing to do with th blackwell chip. It has the same name. Paul meeks, thank you. Isnt that cool . We have a new director . My picture is where im supposed to read the teleprompter. Thats too many joes. I can look over here. Later in the show, we will get a live report from the nvidia conference in san jose. At 10 15 a. M. , jim cramer is speaking with jensen huang in a cnbc exclusive interview. Well be right back. You always got your mind on the green. Not you. You your Business Bank account with quickbooks money now earns 5 apy. thats how you business differently. Intuit quickbooks. The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future. A future where you grew a dream into a reality. Its waiting for you. Mere minutes away. The future is nothing but power and its all yours. The all new godaddy airo. Get your Business Online in minutes with the power of ai. Wielcome back, everybody. The fed is expected to start cutting rates this year and that could mean billions of losses on lowinterest bonds according to the study. The report from hugh son is our cnbc banking reporter. Hugh, this is really concerning to think about what comes next. Why dont you explain the situation and where the banks are right now. Reporter good morning, becky. Great to be with you. Just to be clear, the fed cutting rates is going to on the margins help the situation. The issue right now is that there have been 10 or 11 Interest Rate cuts in the past two years or so. Therefore, they are unrealized losses on banks held to Maturity Portfolio in terms of bonds and the mortgages they issued that were done under low Interest Rates. Those are unrealized losses. They are sitting on the Balance Sheets. People forgot about it. Those are still there. That is still adding pressure. On top of that, if you screen for the banks which have the most commercial real estate exposure, some 300 of real estate exposure versus capital levels, you have 282 banks that screen for those that have high cre and at the same time compromised capital levels. The analysis is these are banks just Like New York Community bank did that need on raise capital and need do it within the next year or so. They can raise that capital with private equity or try to link up and get acquired by a stronger bank. The issue we know is last year was a 40year low in terms of bank m a deal volumes before inflation adjusted basis. We have a situation, becky, where you have a lot of banks which are wounded, but not getting relief they need. Hugh, the reason this has flown beneath the radar is the banks are smaller and new York Community bancorp. How big of a problem does that pose to the Financial System . Reporter i think the good news is systematacally speaking, new york commukmucommunity bank moving with assets. Great bulk of the inn s substitutions are facing the stress. There were banks found to be moderately sized regional banks between 10 and 100 billion. The Federal Reserve chairman jay powell has said there will be Bank Failures as a result of cre. It will happen. One point of this analysis is to say across the universe of 4,000 banks, where are the issues . To your point, they are in the middle to smallsized banks which is less systemic. I think the issue is the Smaller Banks support communities away from the coast. If they are zombie banks because they are not allowed to raise capital, they cannot engage in mergers with stronger competitors. You are hamstringing the Economic Development in the communities. I guess the other question is the fed must be aware of this as well and how much pressure does that put on them for rates . Reporter there is a multidimensional issue. I dont think they will ultimately say we will put the cart before the horse in terms of what is the priority. You have a cohort of banks of the 4,000 banks in the country which will run into the country. You have regulator as aware of e situation. They are issuing mra and mrbas with the under the radar report saying you have to raise capital. That is the strategy. They hope to be able to do this. They hope to be able to cajole them to raise capital to improve the situation. To do so in a way that doesnt cause anything. Hugh, thank you for bringing this to our attention. Reporter thank you, becky. Reddit out with the regulatory filing. The social media it received a letter from nokia and nokia claiming that reddit infringes on the patents. Legal disputes in the area, even if unfounded, can be costly and may impact the business. Wow. Nokia. Who knew . Coming up, the white house set to announce chips act funding for intel. We will tell you what to expect next. As we head to break, here is a look at yesterdays s p 500 winners and losers. Wealthchanging question