WEBVTT - Nvidia Hits All-Time High; Big Bank Earnings Preview 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.000 --> 0:00:13.159 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:14.920 are the stories we're following today. 0:00:15.680 --> 0:00:17.920 And Karen, we begin with big news in the chip 0:00:17.960 --> 0:00:21.439 industry in Nvidia plans to resume sales of its EH 0:00:21.600 --> 0:00:24.959 twenty AI chip in China, and that has shares of 0:00:24.960 --> 0:00:27.880 the world's most valuable company up four and a half 0:00:27.960 --> 0:00:31.400 percent in early trading to a record. This morning, we 0:00:31.440 --> 0:00:34.960 get more on the late breaking developments from Bloomberg's Tom mackenzie. 0:00:35.200 --> 0:00:37.080 You just need to put this in the context of 0:00:37.159 --> 0:00:41.640 the last few years of continuingly tightening restrictions when it 0:00:41.680 --> 0:00:44.879 comes to export controls, both under the Biden administration and 0:00:44.960 --> 0:00:47.600 under the Trump administration, and the tightening of those export 0:00:47.640 --> 0:00:51.240 restrictions has not seen any let up atol between both 0:00:51.280 --> 0:00:54.600 administrations until now. And now you have a U turn 0:00:54.680 --> 0:00:58.760 on an export restriction that was implemented in April, cutting 0:00:58.760 --> 0:01:02.520 off the supply of these H twenty AI accelerators. We 0:01:02.560 --> 0:01:04.440 haven't heard this directly from the US government, but in 0:01:04.480 --> 0:01:06.400 video put out of blog post saying they will in 0:01:06.600 --> 0:01:09.319 short order be able to resupply these H twenty chips 0:01:09.360 --> 0:01:11.440 into the Chinese market ware. By the way, the CEO 0:01:11.520 --> 0:01:15.120 Jensen Hunk currently is for a supply chain conference in Bloomberg. 0:01:15.120 --> 0:01:17.360 Sim mackenzie says the move may add billions to in 0:01:17.480 --> 0:01:20.760 Video's revenue this year, restoring its ability to fulfill orders 0:01:20.760 --> 0:01:23.640 it had written off his loss due to government restrictions. 0:01:24.160 --> 0:01:26.520 Nathan, we have new developments this morning in the global 0:01:26.640 --> 0:01:30.000 trade war. The European Union has finalized a list of 0:01:30.120 --> 0:01:34.280 counter measures to target US goods worth eighty four billion dollars. 0:01:34.640 --> 0:01:36.360 And we go to London and get the latest with 0:01:36.400 --> 0:01:37.759 Bloomberg's un parts you. 0:01:37.720 --> 0:01:39.560 And good morning, Karen and Nathan. 0:01:39.680 --> 0:01:43.800 American cars, bourbon whiskey, and Boeing aircraft. They're all on 0:01:43.800 --> 0:01:46.840 the EU's finalized list of countermeasures should it decide to 0:01:46.840 --> 0:01:50.800 retaliate against Donald Trump's tariff policy. In total, Brussels would 0:01:50.800 --> 0:01:54.280 target eighty four billion dollars worth of US goods. This 0:01:54.400 --> 0:01:57.080 after the EU's trade scheees, so that Trump's tariffs, set 0:01:57.120 --> 0:02:00.480 to kick in on August first, would be effectively prohibitive 0:02:00.720 --> 0:02:04.320 to transatlantic trade, so expacting the two sides are continuing 0:02:04.520 --> 0:02:05.000 in London. 0:02:05.040 --> 0:02:06.480 I'm Umpot Spinberg Radio. 0:02:06.560 --> 0:02:09.400 Turning back to markets now, Karen bank earnings are about 0:02:09.440 --> 0:02:12.560 to take center stage. JP Morgan, Chase, Wells Fargo, and 0:02:12.639 --> 0:02:15.720 Citygroup all report before the opening bell. We get a 0:02:15.760 --> 0:02:19.160 preview now from Bloomberg Global Financial correspondent Shanalie Bassik. 0:02:19.600 --> 0:02:22.080 JP Morgan is kicking off big bank earnings and the 0:02:22.160 --> 0:02:24.880 valuation has risen materially through the course of the year 0:02:24.960 --> 0:02:27.880 because investors expect more and more M and A deals 0:02:27.880 --> 0:02:30.560 to come through to fuel investment banking gains and net 0:02:30.600 --> 0:02:34.600 interest income to hold up strong with interest rates relatively high. Now, 0:02:34.639 --> 0:02:37.480 the question is who's winning in the Wall Street game? 0:02:37.840 --> 0:02:40.520 Is JP Morgan going to bring in more trading revenue 0:02:40.560 --> 0:02:43.880 than its two big investment banking rivals Morgan Stanley and 0:02:43.880 --> 0:02:47.040 Goldman Sachs, which report the following day. We'll also be 0:02:47.080 --> 0:02:50.040 hearing from Citygroup and Wells Fargo, and the question will 0:02:50.080 --> 0:02:52.280 be around how much more net interest income can be 0:02:52.320 --> 0:02:55.240 squeezed out of the US consumer in New York. I'm 0:02:55.240 --> 0:02:56.840 Shinali Basic Bloomberg Radio. 0:02:57.000 --> 0:02:59.440 All right, Chanelle, thank you. It's also a big day 0:02:59.440 --> 0:03:01.960 on the economic front with a key reading on inflation 0:03:02.040 --> 0:03:04.920 this morning at ain't thirty am. Wall Street Time, we 0:03:05.000 --> 0:03:07.560 get the consumer price index for June and we get 0:03:07.600 --> 0:03:09.640 a preview with Bloomberg's Charlie Pillett. 0:03:09.639 --> 0:03:11.960 Wall Street will be focused on how much of an 0:03:12.000 --> 0:03:16.080 uptick we might see an inflation because of tariffs. Christina 0:03:16.080 --> 0:03:19.040 Hooper is chief market strategist at Man Group. 0:03:19.160 --> 0:03:23.160 We could certainly get a significantly higher number if we 0:03:23.240 --> 0:03:27.520 look at the Cleveland Fed now cast core CPI is 0:03:27.600 --> 0:03:30.160 tracking at about three percent year over year. 0:03:30.200 --> 0:03:33.160 The economist survey by Bloomberg are looking for a year 0:03:33.280 --> 0:03:36.560 over year gain in the core CPI excluding food and 0:03:36.640 --> 0:03:40.600 Energy of two point nine percent in New York. Charlie 0:03:40.600 --> 0:03:43.160 Pellett Bloomberg Radio Night, Charlie, thank you. 0:03:43.240 --> 0:03:45.880 And as we await that key inflation report, speculation is 0:03:45.920 --> 0:03:47.960 growing about who will eventually replace j. 0:03:48.280 --> 0:03:48.680 Powell. 0:03:48.760 --> 0:03:51.840 The Washington Post is reporting the White House economic advisor 0:03:52.120 --> 0:03:55.520 Kevin Hassett is emerging as a leading contender to become 0:03:55.560 --> 0:03:58.240 the next FED chair. Hassett was a key advisor in 0:03:58.240 --> 0:04:01.400 President Trump's first term. The Payer says the president thinks 0:04:01.440 --> 0:04:05.160 he'll be more responsive to lowering interest rates. Powell's term 0:04:05.200 --> 0:04:07.200 as chair doesn't expire until May. 0:04:07.440 --> 0:04:07.680 Karen. 0:04:07.720 --> 0:04:10.600 President Trump is threatening new tariffs on Russia over its 0:04:10.640 --> 0:04:14.000 war in Ukraine. President aired his frustrations in an Oval 0:04:14.040 --> 0:04:16.719 Office meeting with NATO's Secretary General Mark Rute. 0:04:17.080 --> 0:04:17.720 We are very. 0:04:17.680 --> 0:04:23.440 Unhappy, I am with Russia. But we'll discuss that maybe 0:04:23.520 --> 0:04:26.520 a different day. But we're very, very unhappy with him, 0:04:26.520 --> 0:04:30.840 and we're going to be doing very severe tariffs if 0:04:30.839 --> 0:04:32.920 we don't have a deal in fifty days. 0:04:33.839 --> 0:04:35.480 Tariff said about one hundred percent. 0:04:36.200 --> 0:04:38.279 President Trump said the duties would come in the form 0:04:38.320 --> 0:04:41.320 of secondary tariffs. He has used that term before for 0:04:41.440 --> 0:04:45.000 import taxes on countries that do business with America's adversaries. 0:04:45.320 --> 0:04:47.760 The President also says the US is sending top of 0:04:47.760 --> 0:04:50.599 the line weapons to Ukraine paid for by NATO member 0:04:50.640 --> 0:04:53.720 States Secretary General Rutas says all of it should send 0:04:53.720 --> 0:04:54.719 a message to Russia. 0:04:54.920 --> 0:04:59.320 I would reconsider what I should not take negotiations about 0:04:59.400 --> 0:05:01.400 Ukraine more years lead, and I was doing a dumment 0:05:01.440 --> 0:05:04.520 if I was, But when Ukraine, I think this is 0:05:04.560 --> 0:05:05.720 really great an interest for that. 0:05:06.480 --> 0:05:09.680 NATO Secretary General Mark Ruta says Germany, the Nordic States, 0:05:09.680 --> 0:05:12.760 and Canada would play a major role in fulfilling Ukraine's 0:05:12.839 --> 0:05:13.680 military needs. 0:05:14.279 --> 0:05:17.400 Nathan As President Trump and NATO look to support Ukraine, 0:05:17.560 --> 0:05:21.000 China is pushing to deepen its ties with Russia. Chinese 0:05:21.040 --> 0:05:24.400 President Xijin Ping me today with Russian Foreign Minister Sergei 0:05:24.480 --> 0:05:28.840 Lavrov in Beijing. China's Shinwa News Agency reports President she 0:05:29.120 --> 0:05:32.880 also met with top officials in the Shanghai Cooperation Organization, 0:05:33.360 --> 0:05:36.200 a group set up by both China and Russia. The 0:05:36.279 --> 0:05:38.640 Chinese leader is also putting a focus on his country 0:05:38.720 --> 0:05:42.480 struggling property sector. Shinwa reports he called for a measured 0:05:42.520 --> 0:05:46.920 approach to renovating urban villages and dilapidated houses from this 0:05:46.960 --> 0:05:50.600 week's Central Urban Work Conference. Last year, the Chinese government 0:05:50.640 --> 0:05:54.560 promised to renovate a million older rundown homes in large cities. 0:05:58.200 --> 0:05:59.360 Time now for a look at some of the other 0:05:59.400 --> 0:06:01.520 stories making news in New York and around the world, 0:06:01.600 --> 0:06:04.159 and for that we're joined by Bloomberg's Michael Barr Michael, 0:06:04.160 --> 0:06:04.880 Good Morning. 0:06:04.720 --> 0:06:08.400 Good Morning. Care and heavy rain caused damaging flash floods 0:06:08.400 --> 0:06:12.520 in New York, New Jersey, Connecticut, Pennsylvania, Virginia, and Maryland. 0:06:12.760 --> 0:06:15.760 Six to ten inches of waterfell in parts of the 0:06:15.800 --> 0:06:20.000 East Coast. In Plainfield, New Jersey, the rapid rainfall turned 0:06:20.000 --> 0:06:24.600 streets into rivers, stalled out cars, rushing past homes and 0:06:24.839 --> 0:06:25.960 knocking down trees. 0:06:26.600 --> 0:06:27.760 I've never seen flooding like this. 0:06:27.920 --> 0:06:29.600 To sat there, I'm sure the car, I mean, there's 0:06:29.600 --> 0:06:30.840 nothing I could do with this is ruined. 0:06:30.839 --> 0:06:32.479 So time for new car. 0:06:33.080 --> 0:06:36.239 The storms prompted New Jersey Governor Phield Murphy to declare 0:06:36.279 --> 0:06:40.200 a state of emergency. In New York, multiple subway stations 0:06:40.240 --> 0:06:44.680 were inundated, forcing the MTA to suspend or severely delayed 0:06:44.720 --> 0:06:49.360 operations across several lines. Residents across the Texas Hill Country 0:06:49.560 --> 0:06:53.080 are on alert as heavy rains produce more flooding and 0:06:53.279 --> 0:06:57.400 creeks are bursting their banks, just ten days after awful 0:06:57.400 --> 0:07:01.719 floods hit the area. The July fourth flash floods killed 0:07:01.720 --> 0:07:03.760 at least one hundred and thirty two people along the 0:07:03.760 --> 0:07:07.359 Guadaloupe River. The number of people still missing has dropped 0:07:07.400 --> 0:07:09.960 to one hundred and one as more victims have been 0:07:09.960 --> 0:07:13.800 identified and more of the missing accounted for, and officials 0:07:13.880 --> 0:07:16.680 warm the search could last up the six months. Kerr 0:07:16.720 --> 0:07:18.200 County Judge Rob Killing. 0:07:18.680 --> 0:07:21.600 It's the tourist that came in for the fourth weekend 0:07:22.000 --> 0:07:23.320 the concert fireworks. 0:07:23.560 --> 0:07:24.680 We don't know how many we lost. 0:07:24.720 --> 0:07:28.160 We've heard accounts of trailer after trailer after trailer. 0:07:27.920 --> 0:07:30.560 Being swept into the river with families in them. You 0:07:30.600 --> 0:07:31.480 can't find traders. 0:07:32.360 --> 0:07:35.160 Former New York Governor and Jrew Cuomo officially announced that 0:07:35.160 --> 0:07:37.920 he will campaign for New York City mayor as an 0:07:37.920 --> 0:07:41.720 independent candidate. In a video posted to social media, Cuomo 0:07:41.880 --> 0:07:46.280 vowed to run against Democratic socialist Zoron Mamdani, who defeated 0:07:46.320 --> 0:07:48.480 Cuomo in last month's Democratic primary. 0:07:48.800 --> 0:07:52.240 For the next few months, it's my responsibility to earn 0:07:52.400 --> 0:07:54.160 your vote. 0:07:54.240 --> 0:07:57.080 In a letter sent to supporters, Cuomo pledged that if 0:07:57.080 --> 0:08:00.000 the polls show that he is not the highest ranked 0:08:00.080 --> 0:08:03.920 challenger to Momdane by mid September, he will drop out 0:08:04.000 --> 0:08:06.880 of the race. Global News twenty four hours a day 0:08:06.960 --> 0:08:09.400 and whenever you want it with the Bloomberg News. Now, 0:08:09.480 --> 0:08:11.800 I'm Michael Barn. This is Bloomberg Hemick. 0:08:12.000 --> 0:08:18.680 All right, Michael Barr, thank you time now for the 0:08:18.680 --> 0:08:21.960 Bloomberg Sports Update, brought to you by Flushing Bank. And 0:08:21.960 --> 0:08:23.080 here's John Stanshauer. 0:08:23.160 --> 0:08:24.440 John, good morning, Good morning care. 0:08:24.520 --> 0:08:26.720 The home run Derby and Atlanta began with a five 0:08:26.840 --> 0:08:30.480 hundred and thirteen foot blast by the Pirates O'Neil Cruz 0:08:30.560 --> 0:08:34.040 cal Raleigh Seattle switch it and catcher who leads MLB 0:08:34.160 --> 0:08:37.199 this season with thirty eight home runs. Nearly knocked out 0:08:37.200 --> 0:08:39.320 in the first round, he advanced in a narrow tie 0:08:39.320 --> 0:08:42.440 breaker with the eighth brin Rookery, then beat Cruise in 0:08:42.520 --> 0:08:46.440 the semifinals, and Raleigh defeated Sampa Bay's junior Camerinaro in 0:08:46.440 --> 0:08:50.080 the finals eighteen to fifteen. The Yankees Jazz Chishem finished 0:08:50.080 --> 0:08:53.439 a distant last. He only managed three home runs. 0:08:53.880 --> 0:08:55.240 Nah, yeah, what do you leave? 0:08:55.440 --> 0:08:55.920 Was it fun? 0:08:56.600 --> 0:08:59.000 I had a lot of fun. I enjoyed every second 0:08:59.040 --> 0:08:59.360 of it. 0:09:00.080 --> 0:09:03.280 In one of three Yankees in tonight's game, joining Aaron 0:09:03.360 --> 0:09:06.440 Judge and Carlos Rodonoo replaced his Yankee teammate Max Freed. 0:09:06.480 --> 0:09:09.000 The Mets have Francisco Lindor in the starting lineup, also 0:09:09.320 --> 0:09:12.200 Pete Alonzo, Edwin Diaz, and David Peterson, and was some 0:09:12.240 --> 0:09:16.840 controversy with the late edition of Milwaukee rookie pitcher Jacob Misterlerowski. 0:09:16.880 --> 0:09:19.600 Since he's only pitched twenty five innings, it's only allowed 0:09:19.720 --> 0:09:23.120 twelve hits, has thirty three strikeouts. His manager tonight is 0:09:23.160 --> 0:09:24.520 the Dodgers Dave Roberts. 0:09:24.880 --> 0:09:28.080 This young kid to be named All Star I couldn't 0:09:28.120 --> 0:09:31.240 be more excited for him. He is thrilled to be here. 0:09:31.960 --> 0:09:34.240 I'm going to get him in there probably the fifth 0:09:34.240 --> 0:09:36.800 of the sixth inning, something like that, the seventh, and 0:09:36.840 --> 0:09:39.160 it's going to be electric. So the fans, the media, 0:09:39.200 --> 0:09:39.920 you're gonna love it. 0:09:40.360 --> 0:09:42.920 Aaron Brunell managed the American League, who has won ten 0:09:42.960 --> 0:09:45.240 of the last eleven All Star Games, twenty two of 0:09:45.280 --> 0:09:47.960 the last twenty six that Jets have locked up white 0:09:47.960 --> 0:09:50.120 out Garrett Wilson with a four year, one hundred and 0:09:50.120 --> 0:09:53.440 thirty million dollar extension ninety billion guaranteed. He's now signed 0:09:53.480 --> 0:09:56.199 through twenty thirty. Good news for the Spurs. Their young 0:09:56.240 --> 0:09:58.880 star Victor Webbin Yama cleared to play next season. He 0:09:58.920 --> 0:09:59.720 has stopped playing. 0:09:59.559 --> 0:10:01.079 Back in fifth be our do to a blood clot. 0:10:01.240 --> 0:10:03.600 John stashy Our Bloomberg Sports Karen Nathan. 0:10:05.679 --> 0:10:10.280 Coast to Coast on Bloomberg Radio nationwide on Sirius XM. 0:10:10.000 --> 0:10:12.840 And around the world on Bloomberg dot Com and the 0:10:12.880 --> 0:10:14.120 Bloomberg Business Apple. 0:10:14.360 --> 0:10:17.360 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. 0:10:17.400 --> 0:10:20.040 It is a major reversal from the Trump administration that 0:10:20.120 --> 0:10:22.960 is giving markets to lift. This morning particularly in the 0:10:23.000 --> 0:10:25.960 tech sector. In Nvidia says it has the governments go 0:10:26.000 --> 0:10:30.040 ahead to sell its H twenty artificial intelligence chips again 0:10:30.280 --> 0:10:33.400 in China, a move that could add billions of dollars 0:10:33.440 --> 0:10:34.480 in revenue at what is. 0:10:34.400 --> 0:10:36.680 Already the world's most valuable company. 0:10:36.679 --> 0:10:39.360 For more, we are joined by Dan Ives, global head 0:10:39.360 --> 0:10:42.160 of Tech research at Webbush Securities. 0:10:42.400 --> 0:10:43.199 Dan, good morning. 0:10:43.200 --> 0:10:46.240 We are certainly seeing a positive reaction in the stock 0:10:46.320 --> 0:10:49.600 price for in Vidia this morning. Your reaction. What does 0:10:49.640 --> 0:10:53.440 this mean in terms of in Vidia's overall growth strategy? 0:10:53.440 --> 0:10:57.680 Good morning, And it's a game changer, because what this 0:10:57.880 --> 0:11:01.720 means is that now got thirty billion plus a business 0:11:01.720 --> 0:11:03.880 like back in the table for in video. I remember 0:11:03.920 --> 0:11:06.920 that China business when that got taken away, that was 0:11:06.960 --> 0:11:09.840 given to Huawei in a silver platter. So this is 0:11:09.880 --> 0:11:11.880 not just bullsh for in video, it's bullsh for the 0:11:11.960 --> 0:11:15.079 tech sector. And I believe it's a positive tea leave 0:11:15.360 --> 0:11:18.839 around us try and negotiations. Given this chip on. 0:11:18.840 --> 0:11:22.160 The table, how is it positive for the overall tech sector? 0:11:22.160 --> 0:11:24.920 What's the read through from Nvidia getting this go ahead? 0:11:25.600 --> 0:11:27.240 Well, what this means is now you're going to have 0:11:27.360 --> 0:11:30.520 called thirty to forty billion more business for Nvidia and 0:11:30.559 --> 0:11:34.320 potentially fifty billion and onwards over the next one two 0:11:34.320 --> 0:11:37.319 three years as a ripple effect for that across suppliers 0:11:37.880 --> 0:11:41.640 and across the whole in Vidia ecosystem. The other thing 0:11:41.679 --> 0:11:44.480 that that's important is that you were essentially handing Huawe 0:11:44.559 --> 0:11:48.080 in a silver platter of this business. Now that's not happening. 0:11:48.640 --> 0:11:52.840 So it's very positive for the US tech sector, even 0:11:52.840 --> 0:11:55.800 when you start to think about hyper scalers, chips and 0:11:56.200 --> 0:12:00.800 called the second third derivatives that now play out relative 0:12:00.840 --> 0:12:02.240 to those dark days in April. 0:12:02.960 --> 0:12:06.160 When it comes to the AI arms race though between 0:12:06.200 --> 0:12:09.800 the US and China, to have in Vidia's backing for 0:12:10.000 --> 0:12:13.680 the Chinese AI sector, does that give China more of 0:12:13.679 --> 0:12:15.520 an advantage over the US. 0:12:16.600 --> 0:12:19.760 I actually think it gives the US more advantage over China. 0:12:19.840 --> 0:12:23.480 Be China Beijing News. There's only one chip in the 0:12:23.520 --> 0:12:27.240 world feeling the AI revolution. It's in video. They want 0:12:27.280 --> 0:12:32.320 the best chips, they don't want necessary quality chips. So 0:12:33.080 --> 0:12:35.920 this gives Nvidia to event the last thing you want 0:12:36.640 --> 0:12:40.719 is to basically exit out for Nvideo and hand that 0:12:40.840 --> 0:12:43.679 to Huaalwet, and that would ultimately give China and make 0:12:43.760 --> 0:12:46.440 them more powerful when it comes to AI, and I 0:12:46.480 --> 0:12:50.480 think Trump ministration knows that when Jensen and Trump met 0:12:50.559 --> 0:12:53.560 last week, I think there's an understanding from the Trump 0:12:53.559 --> 0:12:58.600 administration that this is an important historical moment in this 0:12:58.679 --> 0:13:00.520 AI armsers to. 0:13:00.440 --> 0:13:03.480 Your point, this does come just a week after Jensen 0:13:03.559 --> 0:13:06.600 Wang met with President Trump. What does this tell you 0:13:06.679 --> 0:13:11.640 about the relationship that Jensen Wang has with the president. 0:13:12.440 --> 0:13:15.599 Is it a good idea to have a close relationship 0:13:15.640 --> 0:13:19.040 with President Trump after what we saw with Elon Musk 0:13:19.520 --> 0:13:20.480 just a few weeks ago. 0:13:21.280 --> 0:13:25.319 Sure, I mean, I'm sure. Look some will will make 0:13:25.360 --> 0:13:30.439 the comparisons. I think it's different because Trump needs Jensen 0:13:31.000 --> 0:13:34.080 not just politically. But we start on the Middle East 0:13:34.080 --> 0:13:36.480 trip right who is right next to him? It is Jensen. 0:13:37.559 --> 0:13:41.480 But he understands that Jensen understands the AI market better 0:13:41.480 --> 0:13:44.440 than anyone out there. He needs Jensen support just like 0:13:44.480 --> 0:13:47.160 the onshuring and all the job creation. But on the 0:13:47.200 --> 0:13:50.840 other hand, Jensen is not going to be on the 0:13:50.880 --> 0:13:55.440 outside looking into China market. So it speaks to why 0:13:55.480 --> 0:13:59.440 this relationship is so important between Trump and Jensen. 0:14:00.280 --> 0:14:04.439 Could this relationship have some kind of effect on the 0:14:04.520 --> 0:14:09.880 ongoing trade difficulties that the US and China still have 0:14:10.040 --> 0:14:12.840 even after the breakthroughs in Geneva and London. 0:14:13.880 --> 0:14:16.640 Oh, I think this is a positive signal around the 0:14:16.720 --> 0:14:22.600 US China legoizations, which is the US doing this they're 0:14:22.760 --> 0:14:26.680 now reading videos sell into China has been to be 0:14:26.840 --> 0:14:29.440 huge positive for deal negotiations. 0:14:29.760 --> 0:14:31.240 So what do you see going forward? 0:14:31.320 --> 0:14:35.080 I know that Jensen Wang is attending a government sponsored 0:14:35.120 --> 0:14:39.000 conference in China as well. Could we see more breakthroughs 0:14:39.040 --> 0:14:42.920 coming after? You know, the US hasn't really confirmed that 0:14:43.080 --> 0:14:46.280 this go ahead for the age twenty chips has gone forward? 0:14:46.280 --> 0:14:48.240 But could we see more coming in video's way? 0:14:48.920 --> 0:14:53.200 Oh? Yeah, I would expect over the next twelve hours 0:14:53.320 --> 0:14:57.400 positive statements from China around there now would show further 0:14:57.560 --> 0:15:00.880 t leaves in video could get more big. And let 0:15:00.920 --> 0:15:04.440 me tell you, it's not a happy camper Huawei because 0:15:04.480 --> 0:15:07.920 they thought they had a green light and now the 0:15:07.960 --> 0:15:10.760 big dog came back in And that's in video. 0:15:10.880 --> 0:15:13.920 Of course, in videos trading at a four trillion dollar 0:15:14.000 --> 0:15:19.080 market cap already days after it was predicted. Do you 0:15:19.120 --> 0:15:23.480 see in video hitting a five trillion dollar cap anytime soon? 0:15:23.600 --> 0:15:24.840 And if so, when? 0:15:26.000 --> 0:15:27.800 Look me and you've talked about it along with our 0:15:27.840 --> 0:15:32.360 good friend gene monster. I believe it's a matter of when, 0:15:32.480 --> 0:15:35.120 not if five trillion gets hit. I mean we think 0:15:35.920 --> 0:15:40.080 in twenty twenty six or potentially. You know what is 0:15:40.120 --> 0:15:43.440 when you see that, because this is shows there's one 0:15:43.880 --> 0:15:46.960 ship in the world you want to it's in video 0:15:47.120 --> 0:15:49.840 and I see a five trillion dollar markup on the horizon. 0:15:51.440 --> 0:15:54.920 And as we say in videos, trading up five percent 0:15:55.040 --> 0:15:58.080 in the pre market right now, following this news from 0:15:58.160 --> 0:16:01.520 a blog post from in vide that it has gotten 0:16:01.520 --> 0:16:04.280 the go ahead to sell the H twenty chip once 0:16:04.360 --> 0:16:07.400 again in China. Dan Ives, thanks for joining us from 0:16:07.440 --> 0:16:11.080 the airport this morning. Really appreciate getting your time following 0:16:11.120 --> 0:16:13.680 this breaking news. Dan Ives, of course, is the global 0:16:13.680 --> 0:16:17.680 head of tech research at Wedbush Securities. Coming up on 0:16:17.760 --> 0:16:20.960 five nineteen on Wall Street, let's stay on the topic 0:16:21.120 --> 0:16:24.920 of tariffs. It is topic A four markets and for 0:16:25.720 --> 0:16:28.720 trading partners around the world, with the European Union in 0:16:28.760 --> 0:16:31.280 particular now racing to reach a trade deal with the 0:16:31.360 --> 0:16:34.600 US before the August first deadline, with the President says 0:16:35.280 --> 0:16:38.760 higher duties will kick in barring that. The EU has 0:16:38.800 --> 0:16:41.200 now put out a second list of US goods that 0:16:41.280 --> 0:16:44.360 could be hit with counter tariffs. For more on this 0:16:44.520 --> 0:16:48.880 joining us from Brussels is Bloomberg Daybreak. You're a banker, Stephen, 0:16:48.960 --> 0:16:52.200 Carroll and Steven. It's a pretty exhaustive list, more than 0:16:52.240 --> 0:16:53.320 two hundred pages. 0:16:53.960 --> 0:16:56.280 Give us the highlights. Good morning, good morning. 0:16:56.360 --> 0:16:56.520 Yeah. 0:16:56.560 --> 0:16:59.440 Look, it's seventy two billion euros eighty four billion dollars 0:16:59.480 --> 0:17:02.600 worth of good that are targeted in this second package 0:17:02.640 --> 0:17:07.720 of retaliations. It's dominated mainly by industrial goods, so aircraft 0:17:07.760 --> 0:17:10.520 worth a rut eleven billion euros, machinery worth about nine 0:17:10.520 --> 0:17:13.680 billion euros. Cars are in there as well. We've also 0:17:13.720 --> 0:17:17.440 got agrifood products around six billion euros worth of US 0:17:17.480 --> 0:17:20.240 agrifood products would be hit as well. Fruits and vegetables, 0:17:20.280 --> 0:17:24.400 Alcoholic drinks in there too. There's also some precision equipment 0:17:24.440 --> 0:17:26.840 and instruments in there too. Even some toys managed to 0:17:26.840 --> 0:17:29.800 make the cuts as well, and musical instruments if you 0:17:29.840 --> 0:17:32.600 can believe it. Now, some things we know are excluded 0:17:32.640 --> 0:17:35.119 from the list. Imported military products, for example, won't be 0:17:35.160 --> 0:17:37.679 subject to any duties. And this was a list that 0:17:37.760 --> 0:17:39.960 was drawn up in response to You'll have to go 0:17:40.080 --> 0:17:43.120 back a few steps in this trade dispute to find it. 0:17:43.119 --> 0:17:46.520 It was the twenty percent reciprocal tariff before that was 0:17:46.600 --> 0:17:49.520 reduced to ten percent, before it was up to again 0:17:49.600 --> 0:17:52.040 to thirty percent. If you're still following me, So this 0:17:52.119 --> 0:17:54.760 is a list that actually responds to an earlier move 0:17:54.960 --> 0:17:58.280 by the Trump administration to impose tariffs. It is like 0:17:58.359 --> 0:18:00.600 the other list that was responding to the steel and 0:18:00.640 --> 0:18:04.560 aluminum tariffs suspended until the first of August. But it 0:18:04.640 --> 0:18:07.520 is an attempt by the European Union to show that 0:18:07.600 --> 0:18:10.679 it is ready to respond. It's choosing not to for 0:18:10.800 --> 0:18:13.760 now because it's leaving space for negotiations with the US, 0:18:13.960 --> 0:18:16.600 but it is nonetheless showing I suppose a bit of 0:18:16.640 --> 0:18:20.159 teeth about what the EU could do if those talks 0:18:20.200 --> 0:18:21.040 don't go to plan. 0:18:21.440 --> 0:18:25.040 So, as you mentioned, it doesn't include military equipment, so 0:18:25.320 --> 0:18:28.960 the list might not have been as exhaustive as it 0:18:29.040 --> 0:18:29.640 could have been. 0:18:30.080 --> 0:18:33.040 Is that the sense we're getting. Well, it was initially reduced. 0:18:33.080 --> 0:18:35.199 The initial value that was put on this list was 0:18:35.320 --> 0:18:37.760 ninety five billion euros. That was the list of products 0:18:37.760 --> 0:18:41.960 of the European Commission had initially identified as this stage 0:18:41.960 --> 0:18:45.320 of its response. That got reduced to seventy two billion euros. 0:18:45.320 --> 0:18:47.080 There were some things knocked off the list that was 0:18:47.119 --> 0:18:50.560 after consultation with industry and with member states as well, 0:18:50.600 --> 0:18:52.560 because of course this is a list that has to 0:18:52.600 --> 0:18:54.840 be signed off by the twenty seven members of the 0:18:54.880 --> 0:18:57.480 European Union, so they get to have their say when 0:18:57.480 --> 0:18:59.920 the Commission makes an announcement like this as well. They still, 0:19:00.000 --> 0:19:02.560 by the way, have to sign off on this finalized 0:19:02.600 --> 0:19:05.160 list of seventy two billion as well. But we're told 0:19:05.160 --> 0:19:08.240 this is where the compromise has arrived at. So they 0:19:08.240 --> 0:19:11.159 have scaled back some of those things that they're expected 0:19:11.320 --> 0:19:14.160 to hit or that could potentially hit with tariffs as well, 0:19:14.400 --> 0:19:17.080 and that's sort of an indication of there's some divergence 0:19:17.080 --> 0:19:20.400 of opinion among European countries about how exactly they want 0:19:20.440 --> 0:19:22.480 to respond to what Donald Trump is doing. We heard 0:19:22.480 --> 0:19:25.440 from all those trade ministers filing into a meeting yesterday 0:19:25.480 --> 0:19:29.040 morning here in Brussels talking about not being willing to 0:19:29.119 --> 0:19:33.280 hold back on retaliating for now to allow space for negotiations, 0:19:33.640 --> 0:19:36.480 but ultimately wanting to show that they were ready to 0:19:36.520 --> 0:19:40.160 retaliate if that became necessary. Now, the latest that we've 0:19:40.160 --> 0:19:43.399 heard in terms of talks, we know that Marschefovich, the 0:19:43.440 --> 0:19:46.200 EU Trade negotiator was due to speak to his US 0:19:46.320 --> 0:19:49.400 counterparts late yesterday. We still haven't heard anything about how 0:19:49.440 --> 0:19:52.679 that particular meeting went, but Mahrscheftovitch had said that the 0:19:52.720 --> 0:19:55.000 threat of thirty percent that Donald Trump came out with 0:19:55.080 --> 0:19:59.520 over the weekend was unacceptable and prohibitive to any trade 0:20:00.000 --> 0:20:03.800 between the EU and the US. We know that European 0:20:03.840 --> 0:20:07.200 countries are very worried to differing degrees about what impacts 0:20:07.240 --> 0:20:10.159 the tariffs could have if eventually they do coming to 0:20:10.240 --> 0:20:12.879 force at the level they're currently threatened. But I would 0:20:12.960 --> 0:20:15.720 just note a key survey coming out of Germany this morning, 0:20:15.720 --> 0:20:20.760 the ZW industry survey and investor confidence actually improving in 0:20:20.800 --> 0:20:22.520 the last month that they measured as well. Now, it 0:20:22.560 --> 0:20:24.720 came before the thirty percent tariff threat, but the survey 0:20:24.760 --> 0:20:26.520 was done in early July, so it's not that out 0:20:26.520 --> 0:20:30.120 of date either, showing that actually, despite the threat of tariffs, 0:20:30.119 --> 0:20:34.000 the business sentiment in Europe's largest economy is turning more positive. 0:20:34.240 --> 0:20:36.600 And in our last minute Stephen, this is coming, of course, 0:20:36.640 --> 0:20:38.879 after our earlier reporting that the EU was looking to 0:20:39.000 --> 0:20:42.560 expand outreach to other countries that have come under the 0:20:42.960 --> 0:20:46.760 US tariff crosshairs. How does this list put that into context? 0:20:47.359 --> 0:20:49.879