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

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Speaker 2: Good morning, I'm Nathan Hager.

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Speaker 3: And I'm Karen Moscow. Here are the stories we're following today.

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Speaker 2: Karen, we begin with a Bloomberg News exclusive. The US

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Speaker 2: is considering camping sales of advanced artificial intelligence chips from

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Speaker 2: Nvidia and other American companies to specific countries. Source to

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Speaker 2: say officials in the Biden administration are considering the move

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Speaker 2: in a bid to limit some nations AI capabilities. Bloomberg's

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Speaker 2: Annabel Drulers says the focus of the restrictions is on

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Speaker 2: the Middle East.

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Speaker 4: This is a region we know that's looking to invest

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Speaker 4: very heavily into AI data centers. In particular, they've got

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Speaker 4: companies that are wanting to establish their or build up

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Speaker 4: their data center presence, and they've also got very deep

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Speaker 4: pockets to fund them. The Middle East, we know it's

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Speaker 4: a place that has a growing relationship with China, which

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Speaker 4: is what these sorts of caps were initially put in

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Speaker 4: place for was to restrict China's high tech ambition. So

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Speaker 4: there is a concern that if you allow companies like

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Speaker 4: Nvidia AMD to export to third party countries, those chips

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Speaker 4: could still make their way to places, particularly to China.

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Speaker 2: Bloomberg's Annabel Drulers says the deliberations are in their early

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Speaker 2: stages now. The news of this possible overseas sales cap

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Speaker 2: broke just hours after in Vidia's share price hit its

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Speaker 2: first record close since June this morning, and Vidia shares

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Speaker 2: are down more than one percent in early trading.

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Speaker 3: Well, Nathan, we're also following bank shares this morning as

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Speaker 3: we get earnings from the financial industry, and we get

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Speaker 3: a preview from Bloombergs and Ali Bosik.

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Speaker 5: We're awaiting third quarter earnings from Bank of America, City Group,

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Speaker 5: and Goldman Sachs. And remember it's the first earnings report

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Speaker 5: since the Federal Reserve started its interest rate cutting cycle.

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Speaker 5: What we know from JP Morgan is that eventually net

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Speaker 5: interest income is going to be under pressure, and we'll

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Speaker 5: be wondering if that's the same for Bank of America,

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Speaker 5: and same goes for Citygroup, where there's a very large

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Speaker 5: credit card business. For Goldman Sachs. We'll be watching investment,

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Speaker 5: banking and trading results because we know that the most

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Speaker 5: recent quarter was a volatile one, and more than anything,

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Speaker 5: we'll be watching for the outlook for the rest of

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Speaker 5: the year because volatility is expected to remain somewhat elevated,

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Speaker 5: and the question is can trading and banking fees be

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Speaker 5: high on that backdrop? In New York, I'm Shinali Bask

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Speaker 5: for Bloomberg.

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Speaker 2: Radio Okationanali, thank you. Turning to the economy, now more

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Speaker 2: Fed officials are speaking out about the future of monetary policy.

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Speaker 2: Minneapolis Fed President Neil Kashkari says it appears likely that

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Speaker 2: further modest reductions and interest rates will be appropriate in

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Speaker 2: coming quarters. Cashcari also talked about the fight against inflation

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Speaker 2: in Buenos Aires at a conference held by the Central

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Speaker 2: Bank of Argentina.

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Speaker 6: So two percent is our inflation target, depending on your

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Speaker 6: measure of inflation. It went up to seven eight nine

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Speaker 6: percent and it is now running I would call it

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Speaker 6: at a round by our primary measure. It's now running

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Speaker 6: at around a two and a half percent run rate,

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Speaker 6: and a lot of evidence suggesting that it's going to

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Speaker 6: continue to fall from here.

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Speaker 2: Minneapolis Fed Chief Neil Kashkari has said previously he was

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Speaker 2: comfortable with the Fed's fifty basis point rate cut in September,

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Speaker 2: and that a quarter point reduction at each of the

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Speaker 2: fed's two remaining meetings this year is a reasonable starting point.

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Speaker 3: Well, Nathan, we turned out to new developments in the

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Speaker 3: Middle East and Israeli Prime Minister Benjamin Netanya, who has

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Speaker 3: reportedly told the US he will strike Iranian military sites,

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Speaker 3: and Bloomberg's and Baxter has the story the.

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Speaker 7: Way Netnyah who puts it is that he is willing

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Speaker 7: to strike military rather than oil or nuclear targets. The

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Speaker 7: Biden administration has been very open about the fact that

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Speaker 7: it did not want the strikes on oil or nuclear.

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Speaker 7: The Washington Post reports on the net and Yahoo Biden

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Speaker 7: call earlier this week. The Prime minister had said he

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Speaker 7: was going to strike infrastructure, so there was fear it

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Speaker 7: could be what the US did not want. After that call,

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Speaker 7: the President also announced the sending of the THAD system

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Speaker 7: to Israel. Ed Baxter Bloomberg radio.

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Speaker 2: All right and thank you. And oil is sinking on

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Speaker 2: that Washington Post report checking nimex crewed right now, it's

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Speaker 2: down four and two thirds percent at seventy dollars thirty

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Speaker 2: nine cents per keryl. Brent is lower by four and

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Speaker 2: a half percent at seventy three ninety seven. Meanwhile, the

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Speaker 2: International Energy Agency says geopolitical risks to oil output in

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Speaker 2: the Middle East and elsewhere are being offset by plentiful

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Speaker 2: global supplies.

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Speaker 3: Now, let's get the latest from the campaign trail. Nathan

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Speaker 3: and both Kamala Harris and Donald Trump were on opposite

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Speaker 3: ends of Pennsylvania pitching and dueling economic plans. The Vice

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Speaker 3: president counted her proposal for a fifty thousand dollars small

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Speaker 3: business tach dis deduction at a rally and eerie, she

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Speaker 3: played clips from the former president's events to paint him

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Speaker 3: as an extremist.

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Speaker 8: He's talking about the enemy within our country, Pennsylvania. He's

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Speaker 8: talking about that he considers anyone who doesn't support him

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Speaker 8: or who will not bend to his will an enemy

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Speaker 8: of our country.

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Speaker 3: Meanwhile, Donald Trump held a town hall in Oaks, Pennsylvania,

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Speaker 3: outside of Philadelphia, but the economic discussion quickly fell off

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Speaker 3: the rails when audience members started fainting inside the smeltering arena.

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Speaker 3: So Trump decided to turn it into a dance party.

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Speaker 9: Let's not do any more questions, Let's just listen to music.

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Speaker 5: Let's make it into it for music.

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Speaker 9: Houda Hell wants to hear questions.

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Speaker 3: Right before the interruption, Trump touted his plans to eliminate

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Speaker 3: Social Security income taxes and to deregulate energy and home

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Speaker 3: construction man Karen.

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Speaker 2: The campaign continues today. Vice President Harris will be in

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Speaker 2: Detroit for a town hall with radio hosts Charlemagne the

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Speaker 2: God as she ramps up her efforts to court black voters.

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Speaker 2: Former President Trump will be at the Economic Club of

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Speaker 2: Chicago for an exclusive interview with Bloomberg News Editor in

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Speaker 2: chief John Mikelthwaite. That conversation will begin at noon Wall

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Speaker 2: Street Time. Our coverage begins at eleven thirty on a

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Speaker 2: special edition of Bloomberg's Balance of Power. You can listen

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Speaker 2: on Bloomberg Radio or watch on Bloomberg Television or on

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Speaker 2: the Bloomberg Podcasts YouTube channel.

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Speaker 3: Well, Nathan, there's new developments this morning in the one

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Speaker 3: month strike. It Boeing and we get the very latest,

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Speaker 3: So Bloomberg should John Tucker and John it looks like

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Speaker 3: things are getting more tense.

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Speaker 10: Karen Boeing says it's going to be laying off seventeen

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Speaker 10: thousand employees in minutes. Ongoing workers' strike. Now the head

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Speaker 10: of the labor department reaching out to both sides to

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Speaker 10: try to fix things with no end in sight for

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Speaker 10: the now month long machineist strike at Boeing, The acting

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Speaker 10: labor Secretary, Julie Sue, traveled to Seattle to meet with

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Speaker 10: Boeing in the workers union. The two sides cut off

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Speaker 10: talks last week. Strikers really aren't sure what to expect.

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Speaker 11: I think they're playing a game.

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Speaker 1: It's a cat and mouse game.

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Speaker 12: Who's going to buy it first?

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Speaker 5: Well.

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Speaker 10: Boeing also announced a delay to its Triple seven X program,

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Speaker 10: angering big customers like Emirates. The intention to cut jobs

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Speaker 10: comes as the Planemaker seeks to stave off warnings of

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Speaker 10: a possible ratings downgrade from S and P Global. In

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Speaker 10: New York, I'm John Tucker, Bloomberg Radio.

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Speaker 3: Great John, thank you. It's time now for a look

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Speaker 3: at some of the other stories making news in New

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Speaker 3: York and around the world. And for that we're joined

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Speaker 3: by Bloomberg's Michael Barr.

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Speaker 12: Michael, Good morning, Good morning, Karen. Officials say federal disaster

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Speaker 12: workers paused and then changed some of their hurricane recovery

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Speaker 12: efforts in North Carolina, including abandoning door to door visits

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Speaker 12: after receiving threats during a wave of misinformation. The Rutherford

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Speaker 12: County Sheriff's office said it received a call about a

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Speaker 12: man with an assault rifle who commented about possibly harming

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Speaker 12: FEMA employees and targeting a militia against them. For FEMA

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Speaker 12: Administrator Pete Gaynor, we have.

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Speaker 5: The best missioned federal government helping people before, during, and

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Speaker 5: after disaster.

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Speaker 6: I think we have some of the most dedicated employees

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Speaker 6: that are trying to do that for their fellow Americans, and.

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Speaker 10: Stuff like this. It's not good for morale for anyone on.

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Speaker 12: The team, former FEMA Administrator Pete Gaynor. The man was

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Speaker 12: later arrested and charged with a misdemeanor. Several jurors have

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Speaker 12: just been seated in the years old case of the

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Speaker 12: murders of two young girls who were hiking in Delphi, Indiana.

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Speaker 12: Investigators say that prison recording showed the suspect, Richard Allen,

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Speaker 12: confessed more than sixty times while behind bars. It took

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Speaker 12: nearly six years for one arrest, police linking a bullet

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Speaker 12: from the crime scene to Allan's gun in the killings

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Speaker 12: of thirteen year old Abby Williams and fourteen year old

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Speaker 12: Libby German. Libby's sister, Kelsey.

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Speaker 13: I had so much faith that our detectives would keep

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Speaker 13: working on this until they got our answers and justice

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Speaker 13: for the girls, and until the conviction is here. I'll

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Speaker 13: still remain that way too.

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Speaker 12: Evidence from Libby's own phone is expected to play a

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Speaker 12: critical role at trial. Another federal civil rights violation trial

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Speaker 12: gets underway today in Louisville for former police officer Brett Hankinson.

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Speaker 12: He shot and killed Brianna Taylor in twenty twenty during

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Speaker 12: what was allegedly a botched raid where Taylor's boyfriend fired

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Speaker 12: at police. Former federal prosecutor Lourie Levinson, this is a.

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Speaker 14: Case of a federal supervirights violation, but it really is

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Speaker 14: the question of whether an officer used too much force.

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Speaker 14: Don't forget that Hankinson fired ten shots into Taylor's apartment

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Speaker 14: through a glass store That night.

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Speaker 12: Former federal Prosecutor Lori Levinson, in a symbolic display of anger,

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Speaker 12: North Korea blew up the northern section of unused roads

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Speaker 12: that once linked it with the South. Today's action comes

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Speaker 12: as the rivals have been exchanging threats, days after the

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Speaker 12: North claim that its rival flew drones over its capital, Pyongyang.

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Speaker 12: Global News twenty four hours a day and whenever you

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Speaker 12: want it with the Bloomberg News. Now, I'm Michael Barr,

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Speaker 12: and this is Bloomberg.

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Speaker 11: Karen.

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Speaker 3: All right, Michael Barr, thank you time now for the

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Speaker 3: Bloomberg Sports up Date, brought to you by Tri State Audi.

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Speaker 3: Here's John Stashour, johnkan Morney, Good.

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Speaker 12: Morning, Caroen.

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Speaker 15: Moving closer to a subway series up first with the

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Speaker 15: Mets in Los Angeles. Dodgers had thrown thirty three consecutive

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Speaker 15: scoreless innings that ended quick. Francisco Lindor hit a lead

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Speaker 15: off home run, and inning later the Dodgers walked the

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Speaker 15: door intentionally to load the beast.

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Speaker 9: Here's the payoff pitch swing on a drive in the air,

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Speaker 9: pretty well hit right center.

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Speaker 11: Piez back at that track near the wall.

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Speaker 2: It is gone.

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Speaker 9: A grand slam for Bartfaetas on a three to two pitch,

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Speaker 9: he clears the bases, pitting it into the pavilion and

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Speaker 9: right center field.

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Speaker 15: W hs Q Mets let six. Nothing survived the sixth

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Speaker 15: inning when La score twice had three on but hit

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Speaker 15: it into an inny knitting double play. Mets one, seven

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Speaker 15: three come back to New York with the NLCS tied

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Speaker 15: to one, Game three tomorrow then it was the Yankees

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Speaker 15: in the ALCS opener with Cleveland Wan Soto homer third inning,

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Speaker 15: he he's got two more on three guardian walks and

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Speaker 15: two wild pitches. And then in the seventh upstep the

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Speaker 15: hottest Yang all the.

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Speaker 11: O one is hitting there two left center.

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Speaker 9: It is high, it is far, it is gone.

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Speaker 16: Ay Stantonian obro Wfan John Carlos Stanton coming off the

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Speaker 16: big Alds Yanks one five two, Carlos Redon six strong

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Speaker 16: innings and Luke Weaver flourishing as the Yankee closer.

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Speaker 15: He got the last five outs, four by strikeout. Game

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Speaker 15: two tonight, a game at matt Life for the second

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Speaker 15: straight night, and just like the Giants, a loss for

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Speaker 15: the Jets. Buffalo won twenty three twenty Josh Allen three

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Speaker 15: including a hail Mary to close out the first half,

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Speaker 15: but just like last Sunday in London, a late costly

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Speaker 15: Rogers interception it spoils the coaching debut of Jeff Olbrook

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Speaker 15: at the Garden. Rangers beat Detroit four to one. In Newark,

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Speaker 15: Devil's over Utah three nothing. In Denver, Islanders down Colorado

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Speaker 15: six to two. Florida top the Bruins four to three.

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Speaker 15: Johns dash Ewen Bloomberg Sports.

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Speaker 11: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 11: and around the world on Bloomberg dot Com and the

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Speaker 11: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

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Speaker 11: Nathan Hager.

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Speaker 2: The breakneck growth of artificial intelligence technology may face new

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Speaker 2: limits on a country by country basis. Bloomberg News has

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Speaker 2: learned the Biden administration is considering sales caps on chips

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Speaker 2: from the likes of Nvidia and advanced micro devices in

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Speaker 2: the interest of national security. For more on this, we're

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Speaker 2: joined by Bloomberg Radio and television anchor Critty Gupta. Critty,

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Speaker 2: Good morning. What more are we hearing about what the

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Speaker 2: administration's considering here?

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Speaker 1: Welcome morning, Nathan.

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Speaker 17: Usually when we hear about the Biden administration being tough

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Speaker 17: on those chipbex boards, it's usually in relation to whether

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Speaker 17: or not that very secure technology can.

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Speaker 1: End up in China.

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Speaker 17: This time around, though, it looks like they're considering how

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Speaker 17: might end up in the Middle East. Now, there were

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Speaker 17: suspicions of this earlier this year, that this may be

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Speaker 17: an area of concern, especially as the Middle East has

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Speaker 17: really been.

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Speaker 1: Ramping up their chip making capacity.

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Speaker 17: So you've seen TSMC, for example, show interest in places

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Speaker 17: like the UAE. The concern here, though, is that if

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Speaker 17: you now have to consider China for national security reasons,

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Speaker 17: you have to considers to the Middle East for that

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Speaker 17: as well. That being said, this is certainly on the table,

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Speaker 17: but no decisions have been made just yet, and even

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Speaker 17: if they were made, it's unclear if they would be

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Speaker 17: imposed during the remainder of President Biden's term.

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Speaker 2: So if this is in the interest of fairness, is

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Speaker 2: this the kind of thing that Middle Eastern allies could

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Speaker 2: work with either the Biden administration or whatever administration might

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Speaker 2: consider these kinds of limitations.

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Speaker 1: Well, that's the expectation.

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Speaker 17: Look, there's a global race, as we know to get

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Speaker 17: our hands on this kind of chip technology. Whereas AI

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Speaker 17: may be rising very quickly and spearheaded by Nvidio chips

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Speaker 17: for example, or EV technology spearheaded over in China, there

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Speaker 17: are still other parts of the world that are actively

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Speaker 17: trying to play.

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Speaker 1: Catch up in a lot of ways.

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Speaker 17: In the absence of being able to do that, or

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Speaker 17: in the process of developing their own technology and their

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Speaker 17: own supply chains. This is where there is a real

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Speaker 17: incentive to be negotiating with the Biden administration, and it

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Speaker 17: looks like that may be where this is headed.

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Speaker 1: But a big piece of leverage here that.

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Speaker 17: The Biden administration of the United States broadly has over

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Speaker 17: the Middle East is that in controlling those exports, being

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Speaker 17: able to say, maybe you also need to lessen your

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Speaker 17: dependents or lessen your relationship with China in some way.

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Speaker 17: We've already seen evidence of that show up in the

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Speaker 17: way that the US has talked about export controls with

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Speaker 17: the Netherlands, of course, the home country of ASML, the

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Speaker 17: major chip equipment maker for most of the chip equipment

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Speaker 17: making technology in the world, and that puts the Dutch government,

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Speaker 17: for example, in a pretty tight spot.

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Speaker 2: Well, what could these kinds of country by country national

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Speaker 2: security focused export limitations mean for the AI trade overall?

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Speaker 2: I mean, we just saw on Vidia hit its first

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Speaker 2: record since June yesterday. Does that put the AI frenzy

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Speaker 2: in a little bit of doubt this morning?

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Speaker 17: You know, one would think, but it's not really making

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Speaker 17: a dent. And the reason for that is because it's

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Speaker 17: not one imposed to we don't know what the actual

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Speaker 17: details of this move would actually look like in three

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Speaker 17: at the end of the day, it's not actually hitting

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Speaker 17: the supply just yet or the expected supply of these chips.

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Speaker 17: There is still a little bit of a bottleneck on

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Speaker 17: that where Nvidia is kind of the only player in

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Speaker 17: the game at the moment, as recently shown by the

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Speaker 17: fact that AMD Advanced micro Devices has also released their

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Speaker 17: own kind of competitor chip and met with not such

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Speaker 17: great an investor appetite because the concern was one, can

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Speaker 17: you ramp up capacity? And two can you monetize it?

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Speaker 17: So again, it still feels like Nvidia's dominance is here

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Speaker 17: to stay for now.

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Speaker 2: Got about thirty seconds left, but the market focus is

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Speaker 2: going to turn very quickly back to banks. What to

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Speaker 2: expect from the earnings this morning?

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Speaker 1: Well, there are two things.

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Speaker 17: One is, do we see the net interest income outperformance

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Speaker 17: of JP Morgan and Wolfs Fargo show up in the

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Speaker 17: likes of City Goldman, Sachs and I believe Morgan Stanley

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Speaker 17: reporting tomorrow as well among some of the other banks.

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Speaker 17: A second, especially for City, is going to be that

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Speaker 17: credit card data. If there's any hiccups in the JP

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Speaker 17: Morgan numbers. It's that there might have been a little

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Speaker 17: bit of slow down that spend. We'll see if city

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Speaker 17: shows the same thing.

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