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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: And Karen, we begin with big news in the chip

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Speaker 3: industry in Nvidia plans to resume sales of its EH

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Speaker 3: twenty AI chip in China, and that has shares of

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Speaker 3: the world's most valuable company up four and a half

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Speaker 3: percent in early trading to a record. This morning, we

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Speaker 3: get more on the late breaking developments from Bloomberg's Tom mackenzie.

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Speaker 4: You just need to put this in the context of

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Speaker 4: the last few years of continuingly tightening restrictions when it

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Speaker 4: comes to export controls, both under the Biden administration and

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Speaker 4: under the Trump administration, and the tightening of those export

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Speaker 4: restrictions has not seen any let up atol between both

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Speaker 4: administrations until now. And now you have a U turn

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Speaker 4: on an export restriction that was implemented in April, cutting

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Speaker 4: off the supply of these H twenty AI accelerators. We

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Speaker 4: haven't heard this directly from the US government, but in

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Speaker 4: video put out of blog post saying they will in

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Speaker 4: short order be able to resupply these H twenty chips

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Speaker 4: into the Chinese market ware. By the way, the CEO

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Speaker 4: Jensen Hunk currently is for a supply chain conference in Bloomberg.

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Speaker 3: Sim mackenzie says the move may add billions to in

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Speaker 3: Video's revenue this year, restoring its ability to fulfill orders

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Speaker 3: it had written off his loss due to government restrictions.

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Speaker 2: Nathan, we have new developments this morning in the global

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Speaker 2: trade war. The European Union has finalized a list of

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Speaker 2: counter measures to target US goods worth eighty four billion dollars.

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Speaker 2: And we go to London and get the latest with

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Speaker 2: Bloomberg's un parts you.

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Speaker 5: And good morning, Karen and Nathan.

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Speaker 6: American cars, bourbon whiskey, and Boeing aircraft. They're all on

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Speaker 6: the EU's finalized list of countermeasures should it decide to

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Speaker 6: retaliate against Donald Trump's tariff policy. In total, Brussels would

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Speaker 6: target eighty four billion dollars worth of US goods. This

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Speaker 6: after the EU's trade scheees, so that Trump's tariffs, set

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Speaker 6: to kick in on August first, would be effectively prohibitive

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Speaker 6: to transatlantic trade, so expacting the two sides are continuing

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Speaker 6: in London.

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Speaker 7: I'm Umpot Spinberg Radio.

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Speaker 3: Turning back to markets now, Karen bank earnings are about

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Speaker 3: to take center stage. JP Morgan, Chase, Wells Fargo, and

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Speaker 3: Citygroup all report before the opening bell. We get a

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Speaker 3: preview now from Bloomberg Global Financial correspondent Shanalie Bassik.

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Speaker 8: JP Morgan is kicking off big bank earnings and the

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Speaker 8: valuation has risen materially through the course of the year

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Speaker 8: because investors expect more and more M and A deals

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Speaker 8: to come through to fuel investment banking gains and net

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Speaker 8: interest income to hold up strong with interest rates relatively high. Now,

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Speaker 8: the question is who's winning in the Wall Street game?

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Speaker 8: Is JP Morgan going to bring in more trading revenue

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Speaker 8: than its two big investment banking rivals Morgan Stanley and

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Speaker 8: Goldman Sachs, which report the following day. We'll also be

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Speaker 8: hearing from Citygroup and Wells Fargo, and the question will

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Speaker 8: be around how much more net interest income can be

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Speaker 8: squeezed out of the US consumer in New York. I'm

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Speaker 8: Shinali Basic Bloomberg Radio.

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Speaker 2: All right, Chanelle, thank you. It's also a big day

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Speaker 2: on the economic front with a key reading on inflation

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Speaker 2: this morning at ain't thirty am. Wall Street Time, we

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Speaker 2: get the consumer price index for June and we get

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Speaker 2: a preview with Bloomberg's Charlie Pillett.

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Speaker 7: Wall Street will be focused on how much of an

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Speaker 7: uptick we might see an inflation because of tariffs. Christina

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Speaker 7: Hooper is chief market strategist at Man Group.

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Speaker 1: We could certainly get a significantly higher number if we

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Speaker 1: look at the Cleveland Fed now cast core CPI is

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Speaker 1: tracking at about three percent year over year.

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Speaker 7: The economist survey by Bloomberg are looking for a year

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Speaker 7: over year gain in the core CPI excluding food and

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Speaker 7: Energy of two point nine percent in New York. Charlie

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Speaker 7: Pellett Bloomberg Radio Night, Charlie, thank you.

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Speaker 3: And as we await that key inflation report, speculation is

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Speaker 3: growing about who will eventually replace j.

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Speaker 5: Powell.

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Speaker 3: The Washington Post is reporting the White House economic advisor

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Speaker 3: Kevin Hassett is emerging as a leading contender to become

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Speaker 3: the next FED chair. Hassett was a key advisor in

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Speaker 3: President Trump's first term. The Payer says the president thinks

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Speaker 3: he'll be more responsive to lowering interest rates. Powell's term

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Speaker 3: as chair doesn't expire until May.

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Speaker 9: Karen.

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Speaker 3: President Trump is threatening new tariffs on Russia over its

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Speaker 3: war in Ukraine. President aired his frustrations in an Oval

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Speaker 3: Office meeting with NATO's Secretary General Mark Rute.

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Speaker 10: We are very.

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Speaker 11: Unhappy, I am with Russia. But we'll discuss that maybe

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Speaker 11: a different day. But we're very, very unhappy with him,

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Speaker 11: and we're going to be doing very severe tariffs if

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Speaker 11: we don't have a deal in fifty days.

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Speaker 2: Tariff said about one hundred percent.

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Speaker 3: President Trump said the duties would come in the form

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Speaker 3: of secondary tariffs. He has used that term before for

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Speaker 3: import taxes on countries that do business with America's adversaries.

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Speaker 3: The President also says the US is sending top of

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Speaker 3: the line weapons to Ukraine paid for by NATO member

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Speaker 3: States Secretary General Rutas says all of it should send

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Speaker 3: a message to Russia.

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Speaker 12: I would reconsider what I should not take negotiations about

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Speaker 12: Ukraine more years lead, and I was doing a dumment

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Speaker 12: if I was, But when Ukraine, I think this is

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Speaker 12: really great an interest for that.

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Speaker 3: NATO Secretary General Mark Ruta says Germany, the Nordic States,

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Speaker 3: and Canada would play a major role in fulfilling Ukraine's

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Speaker 3: military needs.

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Speaker 2: Nathan As President Trump and NATO look to support Ukraine,

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Speaker 2: China is pushing to deepen its ties with Russia. Chinese

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Speaker 2: President Xijin Ping me today with Russian Foreign Minister Sergei

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Speaker 2: Lavrov in Beijing. China's Shinwa News Agency reports President she

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Speaker 2: also met with top officials in the Shanghai Cooperation Organization,

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Speaker 2: a group set up by both China and Russia. The

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Speaker 2: Chinese leader is also putting a focus on his country

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Speaker 2: struggling property sector. Shinwa reports he called for a measured

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Speaker 2: approach to renovating urban villages and dilapidated houses from this

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Speaker 2: week's Central Urban Work Conference. Last year, the Chinese government

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Speaker 2: promised to renovate a million older rundown homes in large cities.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making news in New York and around the world,

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Speaker 2: and for that we're joined by Bloomberg's Michael Barr Michael,

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Speaker 2: Good Morning.

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Speaker 10: Good Morning. Care and heavy rain caused damaging flash floods

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Speaker 10: in New York, New Jersey, Connecticut, Pennsylvania, Virginia, and Maryland.

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Speaker 10: Six to ten inches of waterfell in parts of the

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Speaker 10: East Coast. In Plainfield, New Jersey, the rapid rainfall turned

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Speaker 10: streets into rivers, stalled out cars, rushing past homes and

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Speaker 10: knocking down trees.

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Speaker 5: I've never seen flooding like this.

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Speaker 11: To sat there, I'm sure the car, I mean, there's

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Speaker 11: nothing I could do with this is ruined.

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Speaker 7: So time for new car.

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Speaker 10: The storms prompted New Jersey Governor Phield Murphy to declare

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Speaker 10: a state of emergency. In New York, multiple subway stations

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Speaker 10: were inundated, forcing the MTA to suspend or severely delayed

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Speaker 10: operations across several lines. Residents across the Texas Hill Country

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Speaker 10: are on alert as heavy rains produce more flooding and

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Speaker 10: creeks are bursting their banks, just ten days after awful

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Speaker 10: floods hit the area. The July fourth flash floods killed

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Speaker 10: at least one hundred and thirty two people along the

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Speaker 10: Guadaloupe River. The number of people still missing has dropped

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Speaker 10: to one hundred and one as more victims have been

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Speaker 10: identified and more of the missing accounted for, and officials

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Speaker 10: warm the search could last up the six months. Kerr

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Speaker 10: County Judge Rob Killing.

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Speaker 2: It's the tourist that came in for the fourth weekend

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Speaker 2: the concert fireworks.

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Speaker 5: We don't know how many we lost.

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Speaker 10: We've heard accounts of trailer after trailer after trailer.

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Speaker 5: Being swept into the river with families in them. You

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Speaker 5: can't find traders.

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Speaker 10: Former New York Governor and Jrew Cuomo officially announced that

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Speaker 10: he will campaign for New York City mayor as an

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Speaker 10: independent candidate. In a video posted to social media, Cuomo

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Speaker 10: vowed to run against Democratic socialist Zoron Mamdani, who defeated

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Speaker 10: Cuomo in last month's Democratic primary.

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Speaker 11: For the next few months, it's my responsibility to earn

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Speaker 11: your vote.

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Speaker 10: In a letter sent to supporters, Cuomo pledged that if

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Speaker 10: the polls show that he is not the highest ranked

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Speaker 10: challenger to Momdane by mid September, he will drop out

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Speaker 10: of the race. Global News twenty four hours a day

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Speaker 10: and whenever you want it with the Bloomberg News. Now,

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Speaker 10: I'm Michael Barn. This is Bloomberg Hemick.

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Speaker 2: All right, Michael Barr, thank you time now for the

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Speaker 2: Bloomberg Sports Update, brought to you by Flushing Bank. And

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Speaker 2: here's John Stanshauer.

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Speaker 5: John, good morning, Good morning care.

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Speaker 11: The home run Derby and Atlanta began with a five

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Speaker 11: hundred and thirteen foot blast by the Pirates O'Neil Cruz

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Speaker 11: cal Raleigh Seattle switch it and catcher who leads MLB

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Speaker 11: this season with thirty eight home runs. Nearly knocked out

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Speaker 11: in the first round, he advanced in a narrow tie

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Speaker 11: breaker with the eighth brin Rookery, then beat Cruise in

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Speaker 11: the semifinals, and Raleigh defeated Sampa Bay's junior Camerinaro in

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Speaker 11: the finals eighteen to fifteen. The Yankees Jazz Chishem finished

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Speaker 11: a distant last. He only managed three home runs.

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Speaker 5: Nah, yeah, what do you leave?

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Speaker 7: Was it fun?

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Speaker 5: I had a lot of fun. I enjoyed every second

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Speaker 5: of it.

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Speaker 11: In one of three Yankees in tonight's game, joining Aaron

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Speaker 11: Judge and Carlos Rodonoo replaced his Yankee teammate Max Freed.

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Speaker 11: The Mets have Francisco Lindor in the starting lineup, also

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Speaker 11: Pete Alonzo, Edwin Diaz, and David Peterson, and was some

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Speaker 11: controversy with the late edition of Milwaukee rookie pitcher Jacob Misterlerowski.

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Speaker 11: Since he's only pitched twenty five innings, it's only allowed

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Speaker 11: twelve hits, has thirty three strikeouts. His manager tonight is

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Speaker 11: the Dodgers Dave Roberts.

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Speaker 9: This young kid to be named All Star I couldn't

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Speaker 9: be more excited for him. He is thrilled to be here.

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Speaker 9: I'm going to get him in there probably the fifth

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Speaker 9: of the sixth inning, something like that, the seventh, and

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Speaker 9: it's going to be electric. So the fans, the media,

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Speaker 9: you're gonna love it.

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Speaker 11: Aaron Brunell managed the American League, who has won ten

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Speaker 11: of the last eleven All Star Games, twenty two of

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Speaker 11: the last twenty six that Jets have locked up white

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Speaker 11: out Garrett Wilson with a four year, one hundred and

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Speaker 11: thirty million dollar extension ninety billion guaranteed. He's now signed

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Speaker 11: through twenty thirty. Good news for the Spurs. Their young

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Speaker 11: star Victor Webbin Yama cleared to play next season. He

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Speaker 11: has stopped playing.

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Speaker 5: Back in fifth be our do to a blood clot.

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Speaker 5: John stashy Our Bloomberg Sports Karen Nathan.

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Speaker 1: Coast to Coast on Bloomberg Radio nationwide on Sirius XM.

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Speaker 13: And around the world on Bloomberg dot Com and the

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Speaker 13: Bloomberg Business Apple.

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Speaker 5: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 3: It is a major reversal from the Trump administration that

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Speaker 3: is giving markets to lift. This morning particularly in the

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Speaker 3: tech sector. In Nvidia says it has the governments go

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Speaker 3: ahead to sell its H twenty artificial intelligence chips again

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Speaker 3: in China, a move that could add billions of dollars

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Speaker 3: in revenue at what is.

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Speaker 5: Already the world's most valuable company.

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Speaker 3: For more, we are joined by Dan Ives, global head

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Speaker 3: of Tech research at Webbush Securities.

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Speaker 5: Dan, good morning.

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Speaker 3: We are certainly seeing a positive reaction in the stock

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Speaker 3: price for in Vidia this morning. Your reaction. What does

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Speaker 3: this mean in terms of in Vidia's overall growth strategy?

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Speaker 14: Good morning, And it's a game changer, because what this

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Speaker 14: means is that now got thirty billion plus a business

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Speaker 14: like back in the table for in video. I remember

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Speaker 14: that China business when that got taken away, that was

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Speaker 14: given to Huawei in a silver platter. So this is

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Speaker 14: not just bullsh for in video, it's bullsh for the

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Speaker 14: tech sector. And I believe it's a positive tea leave

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Speaker 14: around us try and negotiations. Given this chip on.

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Speaker 3: The table, how is it positive for the overall tech sector?

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Speaker 3: What's the read through from Nvidia getting this go ahead?

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Speaker 14: Well, what this means is now you're going to have

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Speaker 14: called thirty to forty billion more business for Nvidia and

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Speaker 14: potentially fifty billion and onwards over the next one two

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Speaker 14: three years as a ripple effect for that across suppliers

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Speaker 14: and across the whole in Vidia ecosystem. The other thing

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Speaker 14: that that's important is that you were essentially handing Huawe

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Speaker 14: in a silver platter of this business. Now that's not happening.

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Speaker 14: So it's very positive for the US tech sector, even

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Speaker 14: when you start to think about hyper scalers, chips and

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Speaker 14: called the second third derivatives that now play out relative

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Speaker 14: to those dark days in April.

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Speaker 3: When it comes to the AI arms race though between

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Speaker 3: the US and China, to have in Vidia's backing for

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Speaker 3: the Chinese AI sector, does that give China more of

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Speaker 3: an advantage over the US.

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Speaker 14: I actually think it gives the US more advantage over China.

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Speaker 14: Be China Beijing News. There's only one chip in the

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Speaker 14: world feeling the AI revolution. It's in video. They want

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Speaker 14: the best chips, they don't want necessary quality chips. So

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Speaker 14: this gives Nvidia to event the last thing you want

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Speaker 14: is to basically exit out for Nvideo and hand that

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Speaker 14: to Huaalwet, and that would ultimately give China and make

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Speaker 14: them more powerful when it comes to AI, and I

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Speaker 14: think Trump ministration knows that when Jensen and Trump met

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Speaker 14: last week, I think there's an understanding from the Trump

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Speaker 14: administration that this is an important historical moment in this

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Speaker 14: AI armsers to.

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Speaker 3: Your point, this does come just a week after Jensen

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Speaker 3: Wang met with President Trump. What does this tell you

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Speaker 3: about the relationship that Jensen Wang has with the president.

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Speaker 3: Is it a good idea to have a close relationship

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Speaker 3: with President Trump after what we saw with Elon Musk

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Speaker 3: just a few weeks ago.

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Speaker 14: Sure, I mean, I'm sure. Look some will will make

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Speaker 14: the comparisons. I think it's different because Trump needs Jensen

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Speaker 14: not just politically. But we start on the Middle East

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Speaker 14: trip right who is right next to him? It is Jensen.

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Speaker 14: But he understands that Jensen understands the AI market better

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Speaker 14: than anyone out there. He needs Jensen support just like

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Speaker 14: the onshuring and all the job creation. But on the

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Speaker 14: other hand, Jensen is not going to be on the

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Speaker 14: outside looking into China market. So it speaks to why

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Speaker 14: this relationship is so important between Trump and Jensen.

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Speaker 3: Could this relationship have some kind of effect on the

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Speaker 3: ongoing trade difficulties that the US and China still have

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Speaker 3: even after the breakthroughs in Geneva and London.

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Speaker 14: Oh, I think this is a positive signal around the

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Speaker 14: US China legoizations, which is the US doing this they're

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Speaker 14: now reading videos sell into China has been to be

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Speaker 14: huge positive for deal negotiations.

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Speaker 5: So what do you see going forward?

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Speaker 3: I know that Jensen Wang is attending a government sponsored

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Speaker 3: conference in China as well. Could we see more breakthroughs

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Speaker 3: coming after? You know, the US hasn't really confirmed that

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Speaker 3: this go ahead for the age twenty chips has gone forward?

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Speaker 3: But could we see more coming in video's way?

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Speaker 14: Oh? Yeah, I would expect over the next twelve hours

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Speaker 14: positive statements from China around there now would show further

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Speaker 14: t leaves in video could get more big. And let

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Speaker 14: me tell you, it's not a happy camper Huawei because

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Speaker 14: they thought they had a green light and now the

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Speaker 14: big dog came back in And that's in video.

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Speaker 3: Of course, in videos trading at a four trillion dollar

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Speaker 3: market cap already days after it was predicted. Do you

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Speaker 3: see in video hitting a five trillion dollar cap anytime soon?

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Speaker 5: And if so, when?

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Speaker 14: Look me and you've talked about it along with our

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Speaker 14: good friend gene monster. I believe it's a matter of when,

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Speaker 14: not if five trillion gets hit. I mean we think

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Speaker 14: in twenty twenty six or potentially. You know what is

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Speaker 14: when you see that, because this is shows there's one

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Speaker 14: ship in the world you want to it's in video

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Speaker 14: and I see a five trillion dollar markup on the horizon.

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Speaker 3: And as we say in videos, trading up five percent

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Speaker 3: in the pre market right now, following this news from

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Speaker 3: a blog post from in vide that it has gotten

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Speaker 3: the go ahead to sell the H twenty chip once

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Speaker 3: again in China. Dan Ives, thanks for joining us from

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Speaker 3: the airport this morning. Really appreciate getting your time following

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Speaker 3: this breaking news. Dan Ives, of course, is the global

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Speaker 3: head of tech research at Wedbush Securities. Coming up on

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Speaker 3: five nineteen on Wall Street, let's stay on the topic

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Speaker 3: of tariffs. It is topic A four markets and for

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Speaker 3: trading partners around the world, with the European Union in

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Speaker 3: particular now racing to reach a trade deal with the

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Speaker 3: US before the August first deadline, with the President says

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Speaker 3: higher duties will kick in barring that. The EU has

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Speaker 3: now put out a second list of US goods that

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Speaker 3: could be hit with counter tariffs. For more on this

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Speaker 3: joining us from Brussels is Bloomberg Daybreak. You're a banker, Stephen,

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Speaker 3: Carroll and Steven. It's a pretty exhaustive list, more than

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Speaker 3: two hundred pages.

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Speaker 5: Give us the highlights. Good morning, good morning.

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Speaker 7: Yeah.

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Speaker 13: Look, it's seventy two billion euros eighty four billion dollars

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Speaker 13: worth of good that are targeted in this second package

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Speaker 13: of retaliations. It's dominated mainly by industrial goods, so aircraft

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Speaker 13: worth a rut eleven billion euros, machinery worth about nine

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Speaker 13: billion euros. Cars are in there as well. We've also

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Speaker 13: got agrifood products around six billion euros worth of US

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Speaker 13: agrifood products would be hit as well. Fruits and vegetables,

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Speaker 13: Alcoholic drinks in there too. There's also some precision equipment

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Speaker 13: and instruments in there too. Even some toys managed to

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Speaker 13: make the cuts as well, and musical instruments if you

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Speaker 13: can believe it. Now, some things we know are excluded

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Speaker 13: from the list. Imported military products, for example, won't be

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Speaker 13: subject to any duties. And this was a list that

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Speaker 13: was drawn up in response to You'll have to go

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Speaker 13: back a few steps in this trade dispute to find it.

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Speaker 13: It was the twenty percent reciprocal tariff before that was

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Speaker 13: reduced to ten percent, before it was up to again

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Speaker 13: to thirty percent. If you're still following me, So this

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Speaker 13: is a list that actually responds to an earlier move

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Speaker 13: by the Trump administration to impose tariffs. It is like

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Speaker 13: the other list that was responding to the steel and

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Speaker 13: aluminum tariffs suspended until the first of August. But it

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Speaker 13: is an attempt by the European Union to show that

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Speaker 13: it is ready to respond. It's choosing not to for

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Speaker 13: now because it's leaving space for negotiations with the US,

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Speaker 13: but it is nonetheless showing I suppose a bit of

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Speaker 13: teeth about what the EU could do if those talks

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Speaker 13: don't go to plan.

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Speaker 3: So, as you mentioned, it doesn't include military equipment, so

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Speaker 3: the list might not have been as exhaustive as it

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Speaker 3: could have been.

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Speaker 5: Is that the sense we're getting. Well, it was initially reduced.

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Speaker 13: The initial value that was put on this list was

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Speaker 13: ninety five billion euros. That was the list of products

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Speaker 13: of the European Commission had initially identified as this stage

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Speaker 13: of its response. That got reduced to seventy two billion euros.

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Speaker 13: There were some things knocked off the list that was

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Speaker 13: after consultation with industry and with member states as well,

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Speaker 13: because of course this is a list that has to

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Speaker 13: be signed off by the twenty seven members of the

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Speaker 13: European Union, so they get to have their say when

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Speaker 13: the Commission makes an announcement like this as well. They still,

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Speaker 13: by the way, have to sign off on this finalized

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Speaker 13: list of seventy two billion as well. But we're told

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Speaker 13: this is where the compromise has arrived at. So they

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Speaker 13: have scaled back some of those things that they're expected

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Speaker 13: to hit or that could potentially hit with tariffs as well,

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Speaker 13: and that's sort of an indication of there's some divergence

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Speaker 13: of opinion among European countries about how exactly they want

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Speaker 13: to respond to what Donald Trump is doing. We heard

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Speaker 13: from all those trade ministers filing into a meeting yesterday

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Speaker 13: morning here in Brussels talking about not being willing to

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Speaker 13: hold back on retaliating for now to allow space for negotiations,

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Speaker 13: but ultimately wanting to show that they were ready to

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Speaker 13: retaliate if that became necessary. Now, the latest that we've

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Speaker 13: heard in terms of talks, we know that Marschefovich, the

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Speaker 13: EU Trade negotiator was due to speak to his US

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Speaker 13: counterparts late yesterday. We still haven't heard anything about how

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Speaker 13: that particular meeting went, but Mahrscheftovitch had said that the

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Speaker 13: threat of thirty percent that Donald Trump came out with

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Speaker 13: over the weekend was unacceptable and prohibitive to any trade

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Speaker 13: between the EU and the US. We know that European

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Speaker 13: countries are very worried to differing degrees about what impacts

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Speaker 13: the tariffs could have if eventually they do coming to

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Speaker 13: force at the level they're currently threatened. But I would

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Speaker 13: just note a key survey coming out of Germany this morning,

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Speaker 13: the ZW industry survey and investor confidence actually improving in

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Speaker 13: the last month that they measured as well. Now, it

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Speaker 13: came before the thirty percent tariff threat, but the survey

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Speaker 13: was done in early July, so it's not that out

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Speaker 13: of date either, showing that actually, despite the threat of tariffs,

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Speaker 13: the business sentiment in Europe's largest economy is turning more positive.

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Speaker 3: And in our last minute Stephen, this is coming, of course,

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Speaker 3: after our earlier reporting that the EU was looking to

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Speaker 3: expand outreach to other countries that have come under the

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Speaker 3: US tariff crosshairs. How does this list put that into context?

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Speaker 13: I mean, look, it's an added thread of the strategy

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Speaker 13: the European Union is working on. They're also, of course,

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Speaker 13: trying to de escalate with the US, but looking for alternatives.

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Speaker 13: We heard that from Teresa Rivera, the European Commission's vice president,

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Speaker 13: who was in Shiny yesterday, talking about the possibilities that

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Speaker 13: they might have to expand with Asian partners.

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Speaker 7: As well.

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Speaker 13: There was the conversation between Mark Karney and our Slavanga line.

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Speaker 5: Yesterday as well.

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Speaker 13: This is the EU, I suppose, keeping its options open,

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Speaker 13: making sure that if things don't go as they planned,

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Speaker 13: because although they're all sounding very hopeful, they're also quite

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Speaker 13: worried as to how things might turn out between now

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Speaker 13: and the first of August. They want to make sure

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Speaker 13: that they have other options if things don't go well

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Speaker 13: in those talks with the Trump administration.

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