WEBVTT - Trump and Xi Ease Trade Tensions; Big Tech Earnings in Focus 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.000 --> 0:00:13.160 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. 0:00:15.480 --> 0:00:17.880 Karen, we begin with the latest on US China relations 0:00:17.920 --> 0:00:21.760 after President Trump's long awaited meeting with Chinese leader shi Jinping. 0:00:22.000 --> 0:00:24.239 The two came face to face on the sidelines of 0:00:24.280 --> 0:00:27.440 the APEX summit in Busan, South Korea, and walked away 0:00:27.440 --> 0:00:30.160 with an agreement to cut fentanyl related tariffs in half 0:00:30.200 --> 0:00:33.600 to ten percent. President Trump says China has also agreed 0:00:33.600 --> 0:00:35.959 to buy US soybeans again. On a scale of one 0:00:35.960 --> 0:00:38.320 to ten, he says he'd rate the meeting at twelve. 0:00:38.720 --> 0:00:43.360 I thought it was an amazing meeting. He's a great leader, 0:00:43.640 --> 0:00:48.040 great leader of a very powerful, very strong country China. 0:00:48.240 --> 0:00:51.200 President Trump spoke aboard Air Force one following the meeting. 0:00:51.360 --> 0:00:53.680 China's response was a bit more muted. As we hear 0:00:53.720 --> 0:00:55.480 from Bloomberg Steven Engel in Busan. 0:00:55.800 --> 0:00:58.640 He did say that China will cooperate with the United 0:00:58.680 --> 0:01:02.440 States on trade again after that hour and forty minute 0:01:02.480 --> 0:01:05.559 meeting with Donald Trump, but he also went on to say, 0:01:05.720 --> 0:01:07.840 with a little bit of a cautionary tone, he said 0:01:07.880 --> 0:01:11.319 the US and China should not fall into a vicious 0:01:11.360 --> 0:01:16.520 cycle of retaliation, and says the US should continuously reduce 0:01:16.959 --> 0:01:20.640 the list of problems. China and the US should continuously 0:01:20.920 --> 0:01:24.360 reduce the list of problems, and that the two nations 0:01:24.400 --> 0:01:27.920 should i long term benefit from cooperation. 0:01:28.160 --> 0:01:31.400 Bloomberg Steven Engel reports China's agreed to suspend rare earth 0:01:31.480 --> 0:01:34.319 export restrictions for one year, and it says the US 0:01:34.360 --> 0:01:37.399 will also pause some of it so called reciprocal tariffs 0:01:37.440 --> 0:01:40.160 for a year. China also says it will resolve issues 0:01:40.200 --> 0:01:42.520 related to TikTok with the US side, but it did 0:01:42.520 --> 0:01:43.640 not give specifics. 0:01:44.000 --> 0:01:44.200 Well. 0:01:44.240 --> 0:01:47.120 One issue that apparently did not come up Nathan and 0:01:47.160 --> 0:01:51.320 President Trump's meeting with Shijinping was in Vidia's black Well ship. 0:01:51.360 --> 0:01:54.440 The President had indicated he might discuss it giving China 0:01:54.480 --> 0:01:58.080 access to the AI chip giant's most advanced semiconductor. Trump 0:01:58.120 --> 0:02:00.720 says he and she talked about vida is access to 0:02:00.840 --> 0:02:05.000 China in general, and those conversations would continue speculation that 0:02:05.040 --> 0:02:07.520 the US my green lights sales and more advanced chips 0:02:07.560 --> 0:02:10.440 drove in Vidia to become the first ever five trillion 0:02:10.480 --> 0:02:11.200 dollar company. 0:02:11.440 --> 0:02:13.720 Well, let's turn now care into the latest market reaction 0:02:13.840 --> 0:02:18.120 to earnings from three high tech heavyweights shares of Microsoft. 0:02:18.280 --> 0:02:21.560 They are down nearly three percent in early trading the 0:02:21.600 --> 0:02:24.800 world's largest software maker reported a steeper climb and spending 0:02:24.800 --> 0:02:27.560 than Wall Street expected. The profit and revenue did top 0:02:27.600 --> 0:02:30.760 analyst estimates, and the Azure cloud computing unit posted a 0:02:30.800 --> 0:02:33.360 thirty nine percent revenue gain in the quarter that was 0:02:33.480 --> 0:02:35.880 also a beat. An aag Rana is a senior tech 0:02:35.919 --> 0:02:37.480 analyst at Bloomberg Intelligence. 0:02:37.919 --> 0:02:40.520 You look at Azure growth of thirty nine percent, I 0:02:40.520 --> 0:02:44.000 mean given that size, that's pretty good. The margins actually 0:02:44.040 --> 0:02:47.520 stood out, you know, way higher than what we were anticipating. 0:02:47.560 --> 0:02:49.560 We thought there was going to be pressure on margins 0:02:49.600 --> 0:02:52.400 because of all the spending. And then the lastly when 0:02:52.400 --> 0:02:55.640 you look at the capex number substantially higher than the 0:02:55.680 --> 0:02:58.520 thirty billion that they talked about now in you know, 0:02:58.560 --> 0:03:01.160 to some people maybe that's what this ointment. But for us, 0:03:01.280 --> 0:03:03.320 that's a good thing because I think they have so 0:03:03.400 --> 0:03:04.520 much demand coming in. 0:03:05.000 --> 0:03:07.320 That sound a rag Rana with Bloomberg Intelligence, and on 0:03:07.400 --> 0:03:10.280 the company conference call, Chief financial officer Amy Hood said 0:03:10.280 --> 0:03:14.560 Microsoft cannot meet current demand for AI and other services well. 0:03:14.600 --> 0:03:17.600 Shares of Meta Nathan they're also pulling back this morning, 0:03:17.680 --> 0:03:21.080 they are down more than seven percent. The Facebook owner 0:03:21.120 --> 0:03:24.880 is projecting increasing expenses and it's taking a one time 0:03:25.120 --> 0:03:27.760 tax charge. And we get more with Bloomberg's Sturlelypellett. 0:03:28.000 --> 0:03:31.320 Meta said the tax charge of fifteen point nine billion 0:03:31.400 --> 0:03:34.239 dollars was due to the implementation of the tax bill 0:03:34.400 --> 0:03:37.560 signed into law in July. I haven't find Sethos, a 0:03:37.640 --> 0:03:40.080 senior partner with Tigris Financial Partners. 0:03:40.240 --> 0:03:42.440 So the Big Beautiful Bill caused the recognition of a 0:03:42.480 --> 0:03:45.240 deferred tax asset. It's actually a non cast charge. And 0:03:45.280 --> 0:03:47.720 there while it caused a spike in their tax rates 0:03:48.120 --> 0:03:50.520 eighty seven percent for the quarter, it actually goes down 0:03:50.560 --> 0:03:53.800 significantly going forward. I think this is really a non event. 0:03:53.840 --> 0:03:56.840 It's an accounting issue, and I think any weakness is 0:03:56.880 --> 0:03:58.360 a buying opportunity. In the stop. 0:03:58.480 --> 0:04:02.080 Meta says it will continue to invest aggressively in artificial 0:04:02.240 --> 0:04:06.400 intelligence in New York. Charlie Bloomberg Radio, All right, Charlie, 0:04:06.400 --> 0:04:06.680 thank you. 0:04:06.720 --> 0:04:09.320 On the flip side, shares of Alphabet are surging pre 0:04:09.400 --> 0:04:13.040 market there now at eight percent. Sales topped quarterly Wall 0:04:13.080 --> 0:04:15.600 Street estimates, fueled by a surgeon demand for its cloud 0:04:15.600 --> 0:04:17.400 and artificial intelligence services. 0:04:17.520 --> 0:04:19.960 Brook May is a managing partner at evans May Wealth. 0:04:20.320 --> 0:04:22.600 Alphabet is the horse that I would put my money 0:04:22.640 --> 0:04:25.640 on right now. You know, they've blown their earnings out 0:04:25.680 --> 0:04:27.880 of the water. You know, not only did they have 0:04:27.920 --> 0:04:30.960 good earnings growth, but you know the cloud growth was 0:04:31.120 --> 0:04:34.120 very strong. You know, search is strong. 0:04:34.560 --> 0:04:36.479 That's brook May of evans May Wealth. 0:04:36.520 --> 0:04:39.040 Alphabet says its capital expenditures for the year will be 0:04:39.160 --> 0:04:41.400 ninety one to ninety three billion dollars. 0:04:41.440 --> 0:04:44.200 That's up from an earlier estimate of eighty five billion. 0:04:44.839 --> 0:04:47.560 Well, Nathan, The high tech earnings continue today with Apple 0:04:47.560 --> 0:04:50.080 and Amazon reporting after the close of trading, and we 0:04:50.120 --> 0:04:52.080 get a preview with Bloomberg's Tom Busby. 0:04:52.360 --> 0:04:55.080 Just days after Apple became the third stock in history 0:04:55.120 --> 0:04:57.919 to top four trillion dollars in value, Investors want to 0:04:57.920 --> 0:05:01.280 know about its investment in AI, how many new iPhone 0:05:01.320 --> 0:05:04.240 seventeen's it's sold, and whether sales in China have started 0:05:04.240 --> 0:05:07.360 to rebound. It's projected to report record revenue, topping one 0:05:07.480 --> 0:05:10.800 hundred billion dollars for the first time ever. At Amazon, 0:05:10.800 --> 0:05:13.320 investors will want to know about growth and its AWS 0:05:13.400 --> 0:05:16.400 cloud computing unit, the one that suffered a serious outage 0:05:16.440 --> 0:05:18.520 just last week. And they also want to know whether 0:05:18.640 --> 0:05:21.760 all the money it's investing in AI is bringing in revenue. 0:05:21.839 --> 0:05:23.839 Tom Busby, Bloomberg Radio. 0:05:23.680 --> 0:05:24.760 All right, Tom, thanks. 0:05:24.839 --> 0:05:28.520 Artificial intelligence startup open ai is reportedly preparing to file 0:05:28.560 --> 0:05:30.839 for an initial public offering as soon as next year. 0:05:31.120 --> 0:05:33.480 Reuter's is reporting that IPO could give the company a 0:05:33.520 --> 0:05:37.360 market capitalization of one trillion dollars. Earlier this week, open 0:05:37.400 --> 0:05:40.280 ai said it completed a restructuring into a more traditional 0:05:40.320 --> 0:05:44.320 corporate organization, which could make an IPO possible. Open Ai 0:05:44.560 --> 0:05:47.599 was most recently valued at five hundred billion dollars in 0:05:47.640 --> 0:05:48.800 an employee share sale. 0:05:48.839 --> 0:05:51.600 Well, Nathan Elon Musk's one trillion dollar pay package is 0:05:51.600 --> 0:05:54.320 being opposed by the biggest pension plan in the US, 0:05:54.480 --> 0:05:58.000 California Public Employees Retirement System is planning to vote against 0:05:58.120 --> 0:06:02.599 Musk's compensation agreement. A spokesperson for CalPERS the CEO pay 0:06:02.640 --> 0:06:05.680 package proposed by Tesla is larger than pay packages for 0:06:05.839 --> 0:06:10.360 CEOs and comparable companies by many orders of magnitude. CalPERS 0:06:10.440 --> 0:06:13.000 owns about five million shares in Tesla. 0:06:13.200 --> 0:06:15.160 All right, let's turn to the economy, now, Karen in 0:06:15.200 --> 0:06:17.680 the latest decision from the Federal Reserve for the second 0:06:17.839 --> 0:06:20.440 meeting in a row. The Fed has cut interest rates, 0:06:20.480 --> 0:06:24.240 but Chair J. Powell is cautioning investors against assuming another 0:06:24.320 --> 0:06:26.280 interrastrate cut is coming in December. 0:06:26.440 --> 0:06:29.919 In the committee's discussions at this meeting, there were strongly 0:06:29.960 --> 0:06:34.359 differing views about how to proceed in December. A further 0:06:34.400 --> 0:06:37.400 reduction in the policy rate at the December meeting is 0:06:37.440 --> 0:06:38.719 not a foregone conclusion. 0:06:39.560 --> 0:06:40.200 Far from it. 0:06:41.279 --> 0:06:43.320 Policy is not on a preset course. 0:06:43.640 --> 0:06:46.120 Japal's comments came after the Fed voted ten to two 0:06:46.200 --> 0:06:48.240 to lower rates by a quarter of a point for 0:06:48.279 --> 0:06:50.240 the first time in six years. There were to sense 0:06:50.600 --> 0:06:54.240 in both directions. One official advocated a larger reduction, another 0:06:54.360 --> 0:06:55.440 preferred to stay on hold. 0:06:55.760 --> 0:06:58.839 In Asia, Nathan the Bankage Japan Policy Board left at 0:06:58.839 --> 0:07:01.640 spendmark interest rate change in a vote that offered no 0:07:01.800 --> 0:07:04.320 new hints on what it might hike, and the BOJ 0:07:04.480 --> 0:07:08.040 held its policy rate at zero point five percent. 0:07:07.920 --> 0:07:09.920 And we get another rate decision later this morning. 0:07:09.960 --> 0:07:13.000 Karen from the European Central Bank economists predict the ECB 0:07:13.120 --> 0:07:17.000 will keep its interest rate unchanged for a third straight meeting. 0:07:19.840 --> 0:07:20.040 Time. 0:07:20.080 --> 0:07:21.880 Now for look at some of the other stories making 0:07:21.880 --> 0:07:23.520 news in New York and around the world. And for 0:07:23.520 --> 0:07:25.240 that we're joined by Bloomberg's Michael Barr. 0:07:25.320 --> 0:07:27.120 Michael, good morning, Good morning, Karen. 0:07:27.160 --> 0:07:30.720 The devastation from Hurricane Melissa has resulted in at least 0:07:30.840 --> 0:07:34.760 thirty three depths across the Caribbean, with powerful winds tearing 0:07:34.760 --> 0:07:38.840 the bird homes and buildings and knocking out electricity. Andrew 0:07:38.840 --> 0:07:40.560 Wholeness is Jamaica's Prime Minister. 0:07:41.000 --> 0:07:44.920 I would say about eighty to ninety percent of roofs 0:07:45.120 --> 0:07:51.119 were destroyed, Hospitals destroyed, libraries, police station, fourthouses are about 0:07:51.120 --> 0:07:52.720 infrastructure destroyed. 0:07:53.440 --> 0:07:56.760 Economic losses in Jamaica are estimated to be seven point 0:07:56.800 --> 0:08:01.080 seven billion dollars. Melissa is moving away from the Bahamas 0:08:01.440 --> 0:08:03.800 more with Bloomberg meterologist Craig Allen. 0:08:04.040 --> 0:08:07.120 Fortunately, the forward speed has picked up, now moving north 0:08:07.200 --> 0:08:09.720 northeast at about twenty to twenty five miles per hour 0:08:09.840 --> 0:08:14.440 and increasing. Next up Unfortunately Bermuda, the storm will probably 0:08:14.480 --> 0:08:16.800 pass just to the west of the island rather than 0:08:16.840 --> 0:08:19.800 a direct hit, but now less than eight hundred miles away, 0:08:19.920 --> 0:08:23.360 and it will pass with hurricane conditions for Bermuda during 0:08:23.360 --> 0:08:25.000 Thursday night into early Friday. 0:08:25.480 --> 0:08:28.520 Thank you Craig. The government shutdown is now in its 0:08:28.560 --> 0:08:32.400 thirtieth day. More than forty million Americans are expected to 0:08:32.440 --> 0:08:36.880 lose food benefits this Saturday. This Pennsylvania widow says losing 0:08:37.000 --> 0:08:39.679 snap will force her to choose either. 0:08:39.520 --> 0:08:42.440 We eat, or we don't have electricity, or we don't 0:08:42.480 --> 0:08:43.040 have gas. 0:08:43.200 --> 0:08:47.120 Republicans are blaming Democrats for the shutdown. Democrats say Republicans 0:08:47.160 --> 0:08:51.520 that refuse to address health insurance premiums. A Paris prosecutor 0:08:51.600 --> 0:08:54.800 says five more people have been arrested in the investigation 0:08:55.040 --> 0:08:58.400 into the theft of Crown jewels from the Louver Museum, 0:08:58.720 --> 0:09:02.760 but the treasures remain missing. The prosecutors says two suspects 0:09:02.800 --> 0:09:05.480 and the jewel heist have admitted their involvement in the theft. 0:09:05.960 --> 0:09:09.240 They were handed preliminary charges for a theft committed by 0:09:09.280 --> 0:09:13.000 an organized gang and criminal conspiracy. It took the thieves 0:09:13.080 --> 0:09:15.400 less than eight minutes to steal the jewels, valued at 0:09:15.440 --> 0:09:18.800 one hundred and two million dollars. Global News twenty four 0:09:18.800 --> 0:09:20.800 hours a day and whenever you want it with the 0:09:20.800 --> 0:09:23.920 Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg. 0:09:23.960 --> 0:09:31.040 Karen all Right, Michael Barr thank you. Time Now for 0:09:31.080 --> 0:09:33.439 the Bloomberg Sports Update, here's John stash Hour. 0:09:33.559 --> 0:09:34.880 John, Good morning, you, Morning Careen. 0:09:34.920 --> 0:09:38.160 Dodger fans are known for being stuck in traffic, arriving 0:09:38.160 --> 0:09:40.320 in the games late, and that happened last night. Those 0:09:40.360 --> 0:09:44.320 fans missed it. Unprecedented start to a World Series game. 0:09:45.280 --> 0:09:49.240 Game five is underway with a fly ball to t left, 0:09:52.240 --> 0:09:57.320 come first to the volume and David Schneider, let's get 0:09:57.360 --> 0:10:00.199 it out on Sportsnight Gatto leave off home run has 0:10:00.200 --> 0:10:02.520 happened before, even on the first pitch. Derek Jeter did 0:10:02.520 --> 0:10:05.599 that in the two thousand Subway Series. But when Vladimir 0:10:05.640 --> 0:10:09.640 Guerrero Junior homer two pitches later, that made for World 0:10:09.679 --> 0:10:12.520 Series history and a two nothing lead that Toronto never 0:10:12.600 --> 0:10:13.040 gave up. 0:10:13.040 --> 0:10:14.079 A night after the Blue. 0:10:13.920 --> 0:10:16.600 Jays beat the Dodgers six to two, they won six 0:10:16.679 --> 0:10:18.960 to one and now head home up three to two 0:10:18.960 --> 0:10:22.000 in the series. Another pitching jem by their twenty two 0:10:22.040 --> 0:10:25.280 year old rookie Treya Savage. The Yankees and the Alds 0:10:25.360 --> 0:10:28.320 couldn't get a hit off him. The Dodgers only got three, 0:10:28.480 --> 0:10:31.920 a Savage struckout twelve. His manager is John Snyder. 0:10:32.160 --> 0:10:35.800 It's one thing to be in the zone, and it's 0:10:35.840 --> 0:10:38.120 another thing to be in his zone and get some 0:10:38.160 --> 0:10:41.600 swinging mess. So slider and split were electric. You know, 0:10:41.640 --> 0:10:45.280 I said it before the game, it's it's a different 0:10:45.280 --> 0:10:46.600 pitcher when he has his stuff. 0:10:46.640 --> 0:10:46.800 You know. 0:10:46.880 --> 0:10:48.840 Game one didn't have a feel for a split, so 0:10:51.160 --> 0:10:52.360 kind of blown away at what he did. 0:10:52.520 --> 0:10:55.240 The good news for the Dodgers the Ashinova Yamamoto will 0:10:55.280 --> 0:10:58.480 start Game six tomorrow. He's had complete game victories in 0:10:58.520 --> 0:11:00.760 his last two starts in the LA. He's alive at 0:11:00.840 --> 0:11:03.839 game seven Saturday, and the Nets are on and five 0:11:03.880 --> 0:11:06.800 and Brooklyn lost to Atlanta won seventeen one twelve. Michael 0:11:06.880 --> 0:11:08.960 Porter led the NEETs with thirty two points. In Boston, 0:11:09.040 --> 0:11:12.800 Jalen Brown scored thirty. Celtics beat the Cavs by twenty Indiana. 0:11:12.800 --> 0:11:14.679 I went to Game seven of the finals last year. 0:11:14.720 --> 0:11:17.200 They're rowing four this season, a two point loss in Dallas. 0:11:17.520 --> 0:11:20.760 Lakers are playing without both Lebron James and Luka Donson's 0:11:20.760 --> 0:11:23.080 but Austin Reeves just had a fifty one point game 0:11:23.080 --> 0:11:25.800 in last night, scored at the buzzer for Laker winn 0:11:25.840 --> 0:11:29.160 at Minnesota. The Bulls beat Sacramento to go to four 0:11:29.160 --> 0:11:31.760 and oh John Stashawa, Bloomberg Sports Karen. 0:11:31.640 --> 0:11:36.079 Nathan stay with us. More from Bloomberg day Break coming 0:11:36.160 --> 0:11:37.240 up after. 0:11:36.920 --> 0:11:45.800 This Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:45.920 --> 0:11:48.760 and around the world on Bloomberg dot Com and the 0:11:48.800 --> 0:11:51.840 Bloomberg Business opp This is Bloomberg Daybreak. 0:11:51.960 --> 0:11:52.320 Good morning. 0:11:52.360 --> 0:11:54.319 I'm Nathan Hager. On a scale of one to ten, 0:11:54.400 --> 0:11:57.120 he rated a twelve. That was what President Trump said 0:11:57.120 --> 0:12:00.319 after his long awaited meeting on trade with China Knese 0:12:00.360 --> 0:12:01.559 President she Jenpang. 0:12:01.920 --> 0:12:06.239 It is an outstanding group of decisions. 0:12:06.280 --> 0:12:07.240 I think that was made. 0:12:07.280 --> 0:12:10.079 A lot of decisions were made too. It wasn't too 0:12:10.160 --> 0:12:11.160 much left out there. 0:12:11.360 --> 0:12:13.560 That was President Trump on Air Force One after his 0:12:13.679 --> 0:12:16.080 nearly two hour face to face with the Chinese leader 0:12:16.160 --> 0:12:18.760 in South Korea. Joining us for some more details on 0:12:18.800 --> 0:12:21.320 what came out of it is Bloomberg News Global Trades 0:12:21.320 --> 0:12:24.240 are Brendan Murray and Brendan. It seems like we're getting 0:12:24.280 --> 0:12:26.800 kind of a drip drip of headlines on some of 0:12:26.840 --> 0:12:30.200 the details coming out of this encounter. Walk us through 0:12:30.240 --> 0:12:32.439 what we've learned of what we know so far. Good morning. 0:12:32.800 --> 0:12:35.199 Yeah, Basically it means we're not headed into a big 0:12:35.280 --> 0:12:38.200 trade war with China over the next year. They've agreed 0:12:38.200 --> 0:12:41.360 to what they're calling a one year truce. From the 0:12:41.520 --> 0:12:44.800 US side, the US gave up the following concessions. They 0:12:44.840 --> 0:12:48.480 agreed to lower the fentanyl tariffs on Chinese imports from 0:12:48.960 --> 0:12:53.160 twenty percent to ten. They're suspending an expansion of its 0:12:53.720 --> 0:12:57.000 US Entity list. That's a list of Chinese companies that 0:12:57.040 --> 0:13:01.200 are barred from doing some commerce with US companies. They're 0:13:01.240 --> 0:13:05.760 suspending that expansion, and they're also suspending the threat of 0:13:06.400 --> 0:13:09.720 Trump's one hundred percent tariffs on Chinese goods is also 0:13:09.800 --> 0:13:12.480 off the table. On the Chinese side, they agreed to 0:13:12.520 --> 0:13:16.040 suspend the tougher rare Earth's controls that they had threatened 0:13:16.160 --> 0:13:18.120 a couple of weeks ago that was going to disrupt 0:13:18.160 --> 0:13:21.760 the global supply chain for everything from defense systems to 0:13:22.000 --> 0:13:25.040 just every day electronics. And China also agreed to buy 0:13:25.400 --> 0:13:28.280 more US soybeans, something they haven't done over the past 0:13:28.320 --> 0:13:32.520 several months in protests of Trump's tariffs on the world's 0:13:32.520 --> 0:13:36.160 second largest economy. They also agreed to suspend ship fees 0:13:36.200 --> 0:13:41.040 on each other. The US was putting fees on Chinese 0:13:41.040 --> 0:13:43.719 ships that would dock at US ports and China reciprocated 0:13:43.800 --> 0:13:46.920 doing the same to American flagships, so they're suspending those 0:13:46.960 --> 0:13:49.680 for a year. And lastly, they agreed to work together 0:13:49.760 --> 0:13:53.320 to resolve the TikTok ownership situation. So there were quite 0:13:53.320 --> 0:13:55.040 a few things on the table. None of these would 0:13:55.080 --> 0:13:58.600 be considered to be game changers in the overall relationship 0:13:58.640 --> 0:14:01.080 between the US and China, but these were sticking points 0:14:01.600 --> 0:14:06.080 that we're leading to tensions that could have escalated into 0:14:06.160 --> 0:14:09.800 something a lot worse. But they seem to have. President 0:14:09.840 --> 0:14:13.320 she and President Trump seemed to have settled things down 0:14:13.360 --> 0:14:13.640 for at. 0:14:13.640 --> 0:14:15.920 Least a year, So it sounds like it opens the 0:14:15.960 --> 0:14:18.920 door at least to getting some kind of resolution around 0:14:19.000 --> 0:14:22.120 some of those issues you mentioned, like the TikTok situation. 0:14:22.200 --> 0:14:25.480 But it was interesting, Brendan, because you know, going into 0:14:25.520 --> 0:14:28.320 this meeting, President Trump kind of surprised Wall Street with 0:14:28.400 --> 0:14:31.360 this idea that he might talk about China's blackwell chip. 0:14:31.400 --> 0:14:33.160 Apparently that did not come up. 0:14:33.800 --> 0:14:36.560 Yeah, that's that's the reporting that we that were getting. 0:14:36.920 --> 0:14:40.920 We'll still get some readouts from US officials as President 0:14:40.960 --> 0:14:45.440 Trump flies back to the States today, but as far 0:14:45.480 --> 0:14:48.600 as we know, the initial reporting that we have is 0:14:48.640 --> 0:14:52.480 that that wasn't an issue of any substantive discussion, but 0:14:52.560 --> 0:14:54.240 of course it will be on the table in the 0:14:54.320 --> 0:14:57.200 talks going forward. We're going to work. This isn't the 0:14:57.320 --> 0:15:01.360 end of the US China trade tensions. This is going 0:15:01.440 --> 0:15:03.760 to play out, you know it could. At the moment, 0:15:03.880 --> 0:15:06.800 things are things have stabilized, but you know, as we've 0:15:06.800 --> 0:15:10.960 seen recently, things can things can escalate pretty quickly. And 0:15:11.280 --> 0:15:13.200 you know, we're right back where we were with you know, 0:15:13.280 --> 0:15:14.640 threats on both sides. 0:15:14.560 --> 0:15:16.400 And I guess there's a possibility that we could see 0:15:16.400 --> 0:15:19.240 even more headlines coming because we just had a social 0:15:19.280 --> 0:15:22.360 media post from the President talking about China purchasing more 0:15:22.480 --> 0:15:25.080 US energy, not just soybeans. 0:15:26.080 --> 0:15:27.280 What more do we know about that? 0:15:27.960 --> 0:15:28.200 Yeah? 0:15:28.240 --> 0:15:31.160 This, you know, this is this The details are still fuzzy. 0:15:31.240 --> 0:15:35.160 If it probably involves some uh some projects in Alaska. 0:15:35.520 --> 0:15:38.800 But the you know, the the the the the ability 0:15:38.800 --> 0:15:41.360 of President Trump to get China to buy these kinds 0:15:41.360 --> 0:15:42.920 of things is a is a big part of what 0:15:42.960 --> 0:15:45.600 he's promised. And of course, his his his first trade 0:15:45.640 --> 0:15:48.120 deal with with China five and a half years ago 0:15:48.240 --> 0:15:50.320 during his first term, had a lot of these kinds 0:15:50.360 --> 0:15:53.040 of things. These purchases, two hundred billion dollars worth of 0:15:53.040 --> 0:15:56.800 purchases were agreed to back then, So delivering those kinds 0:15:56.800 --> 0:16:01.320 of pledges are definitely high on President and Trump's goal 0:16:01.840 --> 0:16:04.760 list of goals to accomplish with with China. 0:16:05.240 --> 0:16:07.280 So we have about a minute left here, Brendan, Where 0:16:07.280 --> 0:16:11.359 does this leave the US China relationship? Is it progress? 0:16:11.560 --> 0:16:14.720 Is it back to uh where we were with trade 0:16:14.720 --> 0:16:16.040 war one point zero? 0:16:16.080 --> 0:16:17.680 Where would you put it on that scale? 0:16:18.040 --> 0:16:21.280 It feels like we're in for a long, a longer 0:16:21.320 --> 0:16:24.440 period where it's going to take a lot of management 0:16:24.480 --> 0:16:28.000 to keep this relationship on an even keel. That that 0:16:28.040 --> 0:16:30.680 they both sides agreed that this is this is that 0:16:30.680 --> 0:16:34.080 that talking is the best way to to maintain that 0:16:34.200 --> 0:16:37.560 sort of stability. And so it feels like they're not 0:16:37.560 --> 0:16:39.480 going to walk away from this at PISA and the 0:16:39.520 --> 0:16:43.000 document that they've signed with you know, with things fixed 0:16:43.040 --> 0:16:45.000 and resolved and we you know, we move into a 0:16:45.040 --> 0:16:48.480 new era of of you know, US China relations It's 0:16:48.480 --> 0:16:52.080 gonna it's going to take some micro managing, it feels like, 0:16:52.160 --> 0:16:56.520 to keep it from escalating. And you know, of course, 0:16:57.000 --> 0:16:59.920 you know, we've got you know, countries in Southeast Asia 0:17:00.120 --> 0:17:03.240 now have new tariffs on them, and the Europeans are 0:17:03.280 --> 0:17:05.679 also looking at this carefully and trying to weigh up 0:17:05.920 --> 0:17:07.520 how they're going to respond to China. 0:17:07.720 --> 0:17:08.159 So it. 0:17:09.680 --> 0:17:14.560 All it sets the table for more drama in the 0:17:14.560 --> 0:17:17.280 future for the trade relationship. 0:17:17.600 --> 0:17:18.280 Thanks Brendan. 0:17:18.359 --> 0:17:22.040 As always, that's Bloomberg Global Trades are Brendan Murray Karen. 0:17:22.280 --> 0:17:25.080 Nathan Less repeat some of our top stories this morning. 0:17:25.080 --> 0:17:27.439 The Fed cut interest race at quarter point for a 0:17:27.520 --> 0:17:31.159 second straight meeting, but one voter dissented in favor of 0:17:31.200 --> 0:17:33.320 a half point cut, well another. 0:17:33.119 --> 0:17:34.280 Voted for a pause. 0:17:34.680 --> 0:17:37.600 Chair j Powell says a December cut is not a 0:17:37.680 --> 0:17:38.720 foregone conclusion. 0:17:39.000 --> 0:17:43.240 Hurricane Melissa has moved past Jamaica, Haiti and Cuba, believing 0:17:43.240 --> 0:17:46.119 at least thirty three dead and almost eight billion dollars 0:17:46.160 --> 0:17:48.679 in damage. 0:17:47.720 --> 0:17:50.199 And a prominent Senate Democrat says there have been no 0:17:50.240 --> 0:17:54.000 formal discussions on ending the government shutdown. New Hampshire's Jean 0:17:54.080 --> 0:17:57.639 Shaheen tells Bloomberg News it's not clear how the standoff 0:17:57.680 --> 0:17:59.840 will end, and we have more on those stories come 0:18:00.200 --> 0:18:03.120 up on Bloomberry Day Bag, but right now we continue 0:18:03.119 --> 0:18:05.920 to watch shares of a trio of tech heavyweights after 0:18:05.960 --> 0:18:09.240 they reported earnings after the closing bill and right now, 0:18:09.359 --> 0:18:12.560 shares of Meta they are down more than seven and 0:18:12.560 --> 0:18:16.439 a half percent. Microsoft shares they're lower by almost three percent. 0:18:16.480 --> 0:18:19.320 In Alphabet, those shares are higher, up seven and a 0:18:19.359 --> 0:18:21.360 half percent. We want to take a closer look now 0:18:21.359 --> 0:18:25.199 with Bloomberry's Karati Gupta Creaty. Good morning, and let's just 0:18:25.240 --> 0:18:28.680 start with your takeaway because we're getting real different investor 0:18:28.680 --> 0:18:29.360 reaction here. 0:18:30.080 --> 0:18:32.159 Good morning, We absolutely are. I mean, we'll start with 0:18:32.160 --> 0:18:34.600 a positivity. It's always good to start with some sunshine. 0:18:34.680 --> 0:18:38.479 Alphabet is having a really great day. Goog is your 0:18:38.520 --> 0:18:41.679 take of the shares? Just on a tear this morning. 0:18:41.840 --> 0:18:44.159 There's a couple of things to know about the cloud space, 0:18:44.160 --> 0:18:46.920 and this is perhaps where Microsoft is feeling a little 0:18:46.920 --> 0:18:49.160 bit of the pinch. There are a couple of major 0:18:49.200 --> 0:18:52.520 players when it comes to cloud and ultimately the technology 0:18:52.600 --> 0:18:55.400 used to get to AI and Microsoft and Amazon Web 0:18:55.440 --> 0:18:59.240 Services have just dominated the space for such a long time. 0:18:59.280 --> 0:19:02.400 They have the majority of market share, but Alphabet, where 0:19:02.440 --> 0:19:06.199 Google comes in third, and they've trying to bit alongside Oracle, 0:19:06.280 --> 0:19:08.120 trying to kind of build up that market share. 0:19:08.359 --> 0:19:12.000 And that's what investors are rewarding them for this time around. 0:19:12.080 --> 0:19:15.080 Their sales are beating on that cloud unit growth, and 0:19:15.119 --> 0:19:17.560 that is a very important piece for Alphabet because this 0:19:17.600 --> 0:19:20.240 is a company that traditionally has gotten a good chunk 0:19:20.280 --> 0:19:23.320 of its revenue from AdSpend. Think YouTube, thinks social media, 0:19:23.400 --> 0:19:26.399 think the Google search engine as well. That's kind of 0:19:26.400 --> 0:19:29.240 where it's gotten the majority of its games from. And 0:19:29.280 --> 0:19:31.080 so the fact that you are now going to see 0:19:31.160 --> 0:19:34.600 it kind of actively be viewed in cahoots or in 0:19:34.640 --> 0:19:38.240 competition with the likes of Microsoft and Alphabet Amazon excuse me, 0:19:38.359 --> 0:19:41.080 is a very big sea change in terms of how 0:19:41.160 --> 0:19:43.600 this share price is going to be looking. And that's 0:19:43.640 --> 0:19:47.440 kind of what is getting this kind of Wall Street 0:19:47.480 --> 0:19:50.520 equivalent of a round of applause for the Alphabet shares. 0:19:50.560 --> 0:19:53.159 That being said, it's those exact same concerns around the 0:19:53.160 --> 0:19:55.960 buildout and the execution for the cloud unit that is 0:19:56.000 --> 0:20:00.679