WEBVTT - US Weighs Capping Nvidia Sales; Israel's Retaliation Plan

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager.

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

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<v Speaker 2>Karen, we begin with a Bloomberg News exclusive. The US

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<v Speaker 2>is considering camping sales of advanced artificial intelligence chips from

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<v Speaker 2>Nvidia and other American companies to specific countries. Source to

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<v Speaker 2>say officials in the Biden administration are considering the move

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<v Speaker 2>in a bid to limit some nations AI capabilities. Bloomberg's

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<v Speaker 2>Annabel Drulers says the focus of the restrictions is on

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<v Speaker 2>the Middle East.

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<v Speaker 4>This is a region we know that's looking to invest

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

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<v Speaker 4>companies that are wanting to establish their or build up

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<v Speaker 4>their data center presence, and they've also got very deep

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

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<v Speaker 4>a place that has a growing relationship with China, which

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<v Speaker 4>is what these sorts of caps were initially put in

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<v Speaker 4>place for was to restrict China's high tech ambition. So

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<v Speaker 4>there is a concern that if you allow companies like

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<v Speaker 4>Nvidia AMD to export to third party countries, those chips

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<v Speaker 4>could still make their way to places, particularly to China.

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<v Speaker 2>Bloomberg's Annabel Drulers says the deliberations are in their early

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<v Speaker 2>stages now. The news of this possible overseas sales cap

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<v Speaker 2>broke just hours after in Vidia's share price hit its

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<v Speaker 2>first record close since June this morning, and Vidia shares

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<v Speaker 2>are down more than one percent in early trading.

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<v Speaker 3>Well, Nathan, we're also following bank shares this morning as

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<v Speaker 3>we get earnings from the financial industry, and we get

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<v Speaker 3>a preview from Bloombergs and Ali Bosik.

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

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<v Speaker 5>and Goldman Sachs. And remember it's the first earnings report

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<v Speaker 5>since the Federal Reserve started its interest rate cutting cycle.

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<v Speaker 5>What we know from JP Morgan is that eventually net

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<v Speaker 5>interest income is going to be under pressure, and we'll

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<v Speaker 5>be wondering if that's the same for Bank of America,

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<v Speaker 5>and same goes for Citygroup, where there's a very large

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

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<v Speaker 5>banking and trading results because we know that the most

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<v Speaker 5>recent quarter was a volatile one, and more than anything,

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<v Speaker 5>we'll be watching for the outlook for the rest of

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<v Speaker 5>the year because volatility is expected to remain somewhat elevated,

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<v Speaker 5>and the question is can trading and banking fees be

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

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<v Speaker 5>for Bloomberg.

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<v Speaker 2>Radio Okationanali, thank you. Turning to the economy, now more

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<v Speaker 2>Fed officials are speaking out about the future of monetary policy.

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<v Speaker 2>Minneapolis Fed President Neil Kashkari says it appears likely that

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<v Speaker 2>further modest reductions and interest rates will be appropriate in

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<v Speaker 2>coming quarters. Cashcari also talked about the fight against inflation

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<v Speaker 2>in Buenos Aires at a conference held by the Central

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<v Speaker 2>Bank of Argentina.

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<v Speaker 6>So two percent is our inflation target, depending on your

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<v Speaker 6>measure of inflation. It went up to seven eight nine

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<v Speaker 6>percent and it is now running I would call it

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<v Speaker 6>at a round by our primary measure. It's now running

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<v Speaker 6>at around a two and a half percent run rate,

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<v Speaker 6>and a lot of evidence suggesting that it's going to

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<v Speaker 6>continue to fall from here.

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<v Speaker 2>Minneapolis Fed Chief Neil Kashkari has said previously he was

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

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<v Speaker 2>and that a quarter point reduction at each of the

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

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<v Speaker 3>Well, Nathan, we turned out to new developments in the

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<v Speaker 3>Middle East and Israeli Prime Minister Benjamin Netanya, who has

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<v Speaker 3>reportedly told the US he will strike Iranian military sites,

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<v Speaker 3>and Bloomberg's and Baxter has the story the.

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<v Speaker 7>Way Netnyah who puts it is that he is willing

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<v Speaker 7>to strike military rather than oil or nuclear targets. The

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<v Speaker 7>Biden administration has been very open about the fact that

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<v Speaker 7>it did not want the strikes on oil or nuclear.

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<v Speaker 7>The Washington Post reports on the net and Yahoo Biden

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<v Speaker 7>call earlier this week. The Prime minister had said he

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<v Speaker 7>was going to strike infrastructure, so there was fear it

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<v Speaker 7>could be what the US did not want. After that call,

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<v Speaker 7>the President also announced the sending of the THAD system

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<v Speaker 7>to Israel. Ed Baxter Bloomberg radio.

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<v Speaker 2>All right and thank you. And oil is sinking on

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<v Speaker 2>that Washington Post report checking nimex crewed right now, it's

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<v Speaker 2>down four and two thirds percent at seventy dollars thirty

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<v Speaker 2>nine cents per keryl. Brent is lower by four and

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<v Speaker 2>a half percent at seventy three ninety seven. Meanwhile, the

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<v Speaker 2>International Energy Agency says geopolitical risks to oil output in

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<v Speaker 2>the Middle East and elsewhere are being offset by plentiful

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<v Speaker 2>global supplies.

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<v Speaker 3>Now, let's get the latest from the campaign trail. Nathan

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<v Speaker 3>and both Kamala Harris and Donald Trump were on opposite

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<v Speaker 3>ends of Pennsylvania pitching and dueling economic plans. The Vice

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<v Speaker 3>president counted her proposal for a fifty thousand dollars small

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<v Speaker 3>business tach dis deduction at a rally and eerie, she

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<v Speaker 3>played clips from the former president's events to paint him

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<v Speaker 3>as an extremist.

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<v Speaker 8>He's talking about the enemy within our country, Pennsylvania. He's

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<v Speaker 8>talking about that he considers anyone who doesn't support him

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<v Speaker 8>or who will not bend to his will an enemy

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<v Speaker 8>of our country.

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<v Speaker 3>Meanwhile, Donald Trump held a town hall in Oaks, Pennsylvania,

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<v Speaker 3>outside of Philadelphia, but the economic discussion quickly fell off

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<v Speaker 3>the rails when audience members started fainting inside the smeltering arena.

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<v Speaker 3>So Trump decided to turn it into a dance party.

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

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<v Speaker 5>Let's make it into it for music.

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<v Speaker 9>Houda Hell wants to hear questions.

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<v Speaker 3>Right before the interruption, Trump touted his plans to eliminate

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<v Speaker 3>Social Security income taxes and to deregulate energy and home

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<v Speaker 3>construction man Karen.

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<v Speaker 2>The campaign continues today. Vice President Harris will be in

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<v Speaker 2>Detroit for a town hall with radio hosts Charlemagne the

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<v Speaker 2>God as she ramps up her efforts to court black voters.

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<v Speaker 2>Former President Trump will be at the Economic Club of

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<v Speaker 2>Chicago for an exclusive interview with Bloomberg News Editor in

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<v Speaker 2>chief John Mikelthwaite. That conversation will begin at noon Wall

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<v Speaker 2>Street Time. Our coverage begins at eleven thirty on a

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<v Speaker 2>special edition of Bloomberg's Balance of Power. You can listen

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<v Speaker 2>on Bloomberg Radio or watch on Bloomberg Television or on

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<v Speaker 2>the Bloomberg Podcasts YouTube channel.

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<v Speaker 3>Well, Nathan, there's new developments this morning in the one

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<v Speaker 3>month strike. It Boeing and we get the very latest,

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<v Speaker 3>So Bloomberg should John Tucker and John it looks like

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<v Speaker 3>things are getting more tense.

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<v Speaker 10>Karen Boeing says it's going to be laying off seventeen

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<v Speaker 10>thousand employees in minutes. Ongoing workers' strike. Now the head

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<v Speaker 10>of the labor department reaching out to both sides to

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<v Speaker 10>try to fix things with no end in sight for

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<v Speaker 10>the now month long machineist strike at Boeing, The acting

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<v Speaker 10>labor Secretary, Julie Sue, traveled to Seattle to meet with

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<v Speaker 10>Boeing in the workers union. The two sides cut off

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<v Speaker 10>talks last week. Strikers really aren't sure what to expect.

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<v Speaker 11>I think they're playing a game.

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<v Speaker 1>It's a cat and mouse game.

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<v Speaker 12>Who's going to buy it first?

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<v Speaker 5>Well.

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<v Speaker 10>Boeing also announced a delay to its Triple seven X program,

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<v Speaker 10>angering big customers like Emirates. The intention to cut jobs

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<v Speaker 10>comes as the Planemaker seeks to stave off warnings of

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<v Speaker 10>a possible ratings downgrade from S and P Global. In

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<v Speaker 10>New York, I'm John Tucker, Bloomberg Radio.

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

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<v Speaker 3>at some of the other stories making news in New

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<v Speaker 3>York and around the world. And for that we're joined

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<v Speaker 3>by Bloomberg's Michael Barr.

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<v Speaker 12>Michael, Good morning, Good morning, Karen. Officials say federal disaster

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<v Speaker 12>workers paused and then changed some of their hurricane recovery

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<v Speaker 12>efforts in North Carolina, including abandoning door to door visits

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<v Speaker 12>after receiving threats during a wave of misinformation. The Rutherford

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<v Speaker 12>County Sheriff's office said it received a call about a

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<v Speaker 12>man with an assault rifle who commented about possibly harming

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<v Speaker 12>FEMA employees and targeting a militia against them. For FEMA

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<v Speaker 12>Administrator Pete Gaynor, we have.

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<v Speaker 5>The best missioned federal government helping people before, during, and

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<v Speaker 5>after disaster.

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<v Speaker 6>I think we have some of the most dedicated employees

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<v Speaker 6>that are trying to do that for their fellow Americans, and.

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<v Speaker 10>Stuff like this. It's not good for morale for anyone on.

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<v Speaker 12>The team, former FEMA Administrator Pete Gaynor. The man was

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<v Speaker 12>later arrested and charged with a misdemeanor. Several jurors have

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<v Speaker 12>just been seated in the years old case of the

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<v Speaker 12>murders of two young girls who were hiking in Delphi, Indiana.

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<v Speaker 12>Investigators say that prison recording showed the suspect, Richard Allen,

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<v Speaker 12>confessed more than sixty times while behind bars. It took

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<v Speaker 12>nearly six years for one arrest, police linking a bullet

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<v Speaker 12>from the crime scene to Allan's gun in the killings

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<v Speaker 12>of thirteen year old Abby Williams and fourteen year old

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<v Speaker 12>Libby German. Libby's sister, Kelsey.

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<v Speaker 13>I had so much faith that our detectives would keep

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<v Speaker 13>working on this until they got our answers and justice

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<v Speaker 13>for the girls, and until the conviction is here. I'll

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<v Speaker 13>still remain that way too.

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<v Speaker 12>Evidence from Libby's own phone is expected to play a

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<v Speaker 12>critical role at trial. Another federal civil rights violation trial

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<v Speaker 12>gets underway today in Louisville for former police officer Brett Hankinson.

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<v Speaker 12>He shot and killed Brianna Taylor in twenty twenty during

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<v Speaker 12>what was allegedly a botched raid where Taylor's boyfriend fired

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<v Speaker 12>at police. Former federal prosecutor Lourie Levinson, this is a.

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<v Speaker 14>Case of a federal supervirights violation, but it really is

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<v Speaker 14>the question of whether an officer used too much force.

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<v Speaker 14>Don't forget that Hankinson fired ten shots into Taylor's apartment

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<v Speaker 14>through a glass store That night.

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<v Speaker 12>Former federal Prosecutor Lori Levinson, in a symbolic display of anger,

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<v Speaker 12>North Korea blew up the northern section of unused roads

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<v Speaker 12>that once linked it with the South. Today's action comes

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<v Speaker 12>as the rivals have been exchanging threats, days after the

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<v Speaker 12>North claim that its rival flew drones over its capital, Pyongyang.

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<v Speaker 12>Global News twenty four hours a day and whenever you

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

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<v Speaker 12>and this is Bloomberg.

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<v Speaker 11>Karen.

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<v Speaker 3>All right, Michael Barr, thank you time now for the

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<v Speaker 3>Bloomberg Sports up Date, brought to you by Tri State Audi.

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<v Speaker 3>Here's John Stashour, johnkan Morney, Good.

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<v Speaker 12>Morning, Caroen.

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<v Speaker 15>Moving closer to a subway series up first with the

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<v Speaker 15>Mets in Los Angeles. Dodgers had thrown thirty three consecutive

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<v Speaker 15>scoreless innings that ended quick. Francisco Lindor hit a lead

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<v Speaker 15>off home run, and inning later the Dodgers walked the

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<v Speaker 15>door intentionally to load the beast.

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<v Speaker 9>Here's the payoff pitch swing on a drive in the air,

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<v Speaker 9>pretty well hit right center.

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<v Speaker 11>Piez back at that track near the wall.

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<v Speaker 2>It is gone.

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<v Speaker 9>A grand slam for Bartfaetas on a three to two pitch,

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<v Speaker 9>he clears the bases, pitting it into the pavilion and

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<v Speaker 9>right center field.

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<v Speaker 15>W hs Q Mets let six. Nothing survived the sixth

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<v Speaker 15>inning when La score twice had three on but hit

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<v Speaker 15>it into an inny knitting double play. Mets one, seven

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<v Speaker 15>three come back to New York with the NLCS tied

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<v Speaker 15>to one, Game three tomorrow then it was the Yankees

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<v Speaker 15>in the ALCS opener with Cleveland Wan Soto homer third inning,

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<v Speaker 15>he he's got two more on three guardian walks and

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<v Speaker 15>two wild pitches. And then in the seventh upstep the

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<v Speaker 15>hottest Yang all the.

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<v Speaker 11>O one is hitting there two left center.

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<v Speaker 9>It is high, it is far, it is gone.

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<v Speaker 16>Ay Stantonian obro Wfan John Carlos Stanton coming off the

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<v Speaker 16>big Alds Yanks one five two, Carlos Redon six strong

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<v Speaker 16>innings and Luke Weaver flourishing as the Yankee closer.

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<v Speaker 15>He got the last five outs, four by strikeout. Game

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<v Speaker 15>two tonight, a game at matt Life for the second

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<v Speaker 15>straight night, and just like the Giants, a loss for

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<v Speaker 15>the Jets. Buffalo won twenty three twenty Josh Allen three

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<v Speaker 15>for two touchdowns, ran for another, Aaron Rodgers through for two,

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<v Speaker 15>including a hail Mary to close out the first half,

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<v Speaker 15>but just like last Sunday in London, a late costly

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<v Speaker 15>Rogers interception it spoils the coaching debut of Jeff Olbrook

0:11:34.800 --> 0:11:37.560
<v Speaker 15>at the Garden. Rangers beat Detroit four to one. In Newark,

0:11:37.600 --> 0:11:40.960
<v Speaker 15>Devil's over Utah three nothing. In Denver, Islanders down Colorado

0:11:41.000 --> 0:11:43.600
<v Speaker 15>six to two. Florida top the Bruins four to three.

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<v Speaker 15>Johns dash Ewen Bloomberg Sports.

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<v Speaker 11>Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

0:11:52.000 --> 0:11:54.880
<v Speaker 11>and around the world on Bloomberg dot Com and the

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<v Speaker 11>Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

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<v Speaker 11>Nathan Hager.

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<v Speaker 2>The breakneck growth of artificial intelligence technology may face new

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<v Speaker 2>limits on a country by country basis. Bloomberg News has

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<v Speaker 2>learned the Biden administration is considering sales caps on chips

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<v Speaker 2>from the likes of Nvidia and advanced micro devices in

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

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<v Speaker 2>joined by Bloomberg Radio and television anchor Critty Gupta. Critty,

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<v Speaker 2>Good morning. What more are we hearing about what the

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<v Speaker 2>administration's considering here?

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<v Speaker 1>Welcome morning, Nathan.

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<v Speaker 17>Usually when we hear about the Biden administration being tough

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<v Speaker 17>on those chipbex boards, it's usually in relation to whether

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<v Speaker 17>or not that very secure technology can.

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<v Speaker 1>End up in China.

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<v Speaker 17>This time around, though, it looks like they're considering how

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<v Speaker 17>might end up in the Middle East. Now, there were

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<v Speaker 17>suspicions of this earlier this year, that this may be

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<v Speaker 17>an area of concern, especially as the Middle East has

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<v Speaker 17>really been.

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<v Speaker 1>Ramping up their chip making capacity.

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<v Speaker 17>So you've seen TSMC, for example, show interest in places

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<v Speaker 17>like the UAE. The concern here, though, is that if

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<v Speaker 17>you now have to consider China for national security reasons,

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<v Speaker 17>you have to considers to the Middle East for that

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<v Speaker 17>as well. That being said, this is certainly on the table,

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<v Speaker 17>but no decisions have been made just yet, and even

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<v Speaker 17>if they were made, it's unclear if they would be

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<v Speaker 17>imposed during the remainder of President Biden's term.

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<v Speaker 2>So if this is in the interest of fairness, is

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<v Speaker 2>this the kind of thing that Middle Eastern allies could

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<v Speaker 2>work with either the Biden administration or whatever administration might

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<v Speaker 2>consider these kinds of limitations.

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<v Speaker 1>Well, that's the expectation.

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<v Speaker 17>Look, there's a global race, as we know to get

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<v Speaker 17>our hands on this kind of chip technology. Whereas AI

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<v Speaker 17>may be rising very quickly and spearheaded by Nvidio chips

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<v Speaker 17>for example, or EV technology spearheaded over in China, there

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<v Speaker 17>are still other parts of the world that are actively

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<v Speaker 17>trying to play.

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<v Speaker 1>Catch up in a lot of ways.

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<v Speaker 17>In the absence of being able to do that, or

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<v Speaker 17>in the process of developing their own technology and their

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<v Speaker 17>own supply chains. This is where there is a real

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<v Speaker 17>incentive to be negotiating with the Biden administration, and it

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<v Speaker 17>looks like that may be where this is headed.

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<v Speaker 1>But a big piece of leverage here that.

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<v Speaker 17>The Biden administration of the United States broadly has over

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<v Speaker 17>the Middle East is that in controlling those exports, being

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<v Speaker 17>able to say, maybe you also need to lessen your

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<v Speaker 17>dependents or lessen your relationship with China in some way.

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<v Speaker 17>We've already seen evidence of that show up in the

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<v Speaker 17>way that the US has talked about export controls with

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<v Speaker 17>the Netherlands, of course, the home country of ASML, the

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<v Speaker 17>major chip equipment maker for most of the chip equipment

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<v Speaker 17>making technology in the world, and that puts the Dutch government,

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<v Speaker 17>for example, in a pretty tight spot.

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<v Speaker 2>Well, what could these kinds of country by country national

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<v Speaker 2>security focused export limitations mean for the AI trade overall?

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<v Speaker 2>I mean, we just saw on Vidia hit its first

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<v Speaker 2>record since June yesterday. Does that put the AI frenzy

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<v Speaker 2>in a little bit of doubt this morning?

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<v Speaker 17>You know, one would think, but it's not really making

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<v Speaker 17>a dent. And the reason for that is because it's

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<v Speaker 17>not one imposed to we don't know what the actual

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<v Speaker 17>details of this move would actually look like in three

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<v Speaker 17>at the end of the day, it's not actually hitting

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<v Speaker 17>the supply just yet or the expected supply of these chips.

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<v Speaker 17>There is still a little bit of a bottleneck on

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<v Speaker 17>that where Nvidia is kind of the only player in

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<v Speaker 17>the game at the moment, as recently shown by the

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<v Speaker 17>fact that AMD Advanced micro Devices has also released their

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<v Speaker 17>own kind of competitor chip and met with not such

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<v Speaker 17>great an investor appetite because the concern was one, can

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<v Speaker 17>you ramp up capacity? And two can you monetize it?

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<v Speaker 17>So again, it still feels like Nvidia's dominance is here

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<v Speaker 17>to stay for now.

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<v Speaker 2>Got about thirty seconds left, but the market focus is

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<v Speaker 2>going to turn very quickly back to banks. What to

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<v Speaker 2>expect from the earnings this morning?

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<v Speaker 1>Well, there are two things.

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<v Speaker 17>One is, do we see the net interest income outperformance

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<v Speaker 17>of JP Morgan and Wolfs Fargo show up in the

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<v Speaker 17>likes of City Goldman, Sachs and I believe Morgan Stanley

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<v Speaker 17>reporting tomorrow as well among some of the other banks.

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<v Speaker 17>A second, especially for City, is going to be that

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<v Speaker 17>credit card data. If there's any hiccups in the JP

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<v Speaker 17>Morgan numbers. It's that there might have been a little

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<v Speaker 17>bit of slow down that spend. We'll see if city

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<v Speaker 17>shows the same thing.

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<v Speaker 2>And I'm Nathan Hager. Join us again tomorrow morning for

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<v Speaker 2>here on Bloomberg day Break