WEBVTT - Trump Teases Xi Talks at APEC; Vance Expects Troop Payments Despite Shutdown 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, Podcasts, radio news. 0:00:09.960 --> 0:00:13.160 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.160 --> 0:00:14.920 are the stories we're following today. 0:00:15.320 --> 0:00:17.840 Karen, we begin with the latest son President Trump's trip 0:00:17.920 --> 0:00:20.520 to Asia. He is now in South Korea, the head 0:00:20.560 --> 0:00:24.079 of tomorrow's crucial meeting with Chinese President She Jenping and 0:00:24.120 --> 0:00:27.960 an APEX CEO summit. The President outed the close relationship 0:00:28.000 --> 0:00:29.760 between the US and South Korea. 0:00:30.480 --> 0:00:34.040 So we're partners, We're serious partners. We're really we're wedded, 0:00:34.840 --> 0:00:37.800 and we have a very special relationship, a special bond. 0:00:37.800 --> 0:00:40.680 In fact, we're working with you on shipbuilding where you're 0:00:40.680 --> 0:00:42.120 going to come in. We were the number one in 0:00:42.159 --> 0:00:44.400 the world during World War Two. We've produced a ship 0:00:44.400 --> 0:00:45.479 a day, can you believe it. 0:00:45.640 --> 0:00:47.960 And on his way to Korea, the President predicted he 0:00:47.960 --> 0:00:51.000 would lower tariffs on Chinese goods over fentanyl, and he 0:00:51.080 --> 0:00:53.840 also said he'll speak with President she about access to 0:00:53.920 --> 0:00:57.600 Nvidia's Blackwell AI chip. That would be a major concession 0:00:57.600 --> 0:00:59.840 if it is included in a trade deal. Ahead of 0:00:59.840 --> 0:01:02.840 time tomorrow's meeting, China booked its first purchases of US 0:01:02.880 --> 0:01:05.440 soybeans this season. Source is tell Bloomberg at least two 0:01:05.480 --> 0:01:08.480 shipments are booked for delivery later this year. In exchange, 0:01:08.520 --> 0:01:11.880 the US is holding off on threatened software export controls 0:01:11.920 --> 0:01:15.160 against China. The White House official says President's Trump and 0:01:15.160 --> 0:01:18.160 she will meet mid morning tomorrow, though the exact timing 0:01:18.240 --> 0:01:19.520 has yet to be determined. 0:01:19.959 --> 0:01:23.120 Well, Nathan and Washington. It is now day twenty nine 0:01:23.120 --> 0:01:26.160 and the government shutdown. If it extends today thirty one 0:01:26.240 --> 0:01:29.559 this Friday, members of the military, we'll start to miss paychecks. 0:01:29.840 --> 0:01:32.920 Vice President JD. Van says he thinks the Trump administration 0:01:33.040 --> 0:01:33.880 can work around that. 0:01:34.319 --> 0:01:36.399 We do think that we can continue paying the troops 0:01:36.560 --> 0:01:39.360 at least for now. Or we've got foodstamp benefits that 0:01:39.400 --> 0:01:40.279 are set to run out. 0:01:40.120 --> 0:01:40.480 In a week. 0:01:40.520 --> 0:01:43.360 We're trying to keep as much open as possible. Would 0:01:43.400 --> 0:01:45.040 you see the Democrats actually help us out? 0:01:45.520 --> 0:01:48.440 And Vice President Vance spoke after a meeting with Republican 0:01:48.520 --> 0:01:51.960 senators on Capitol Hill. He's not saying how the troops 0:01:51.960 --> 0:01:55.240 would be paid. Meantime, twenty five states, including New York 0:01:55.280 --> 0:01:58.160 and the District of Columbia, are suing the Trump administration 0:01:58.280 --> 0:02:01.760 over expiring food stamp. Then they're arguing the White House 0:02:01.840 --> 0:02:05.440 must use nearly six billion dollars in contingency funds to 0:02:05.520 --> 0:02:07.640 keep the program running as long as possible. 0:02:07.920 --> 0:02:10.640 Certain of the FED now Karen J. Powell and company 0:02:10.680 --> 0:02:13.560 are widely expected to cut rates for a second straight 0:02:13.639 --> 0:02:17.080 meeting later today. But will there be more cuts ahead? 0:02:17.480 --> 0:02:21.120 Bloomberg's Michael McKee is in Washington with a preview for 0:02:21.240 --> 0:02:21.720 Wall Street. 0:02:21.720 --> 0:02:24.320 Today's meeting is less about what's now than it is 0:02:24.360 --> 0:02:27.919 about what's next. A quarter percentage point ridcut is baked 0:02:27.919 --> 0:02:30.919 into markets. What investors want to know is are further 0:02:31.000 --> 0:02:33.919 cuts coming, perhaps as soon as December. That's going to 0:02:33.919 --> 0:02:36.399 be a tricky question for the FED and Chair Jaypowell. 0:02:36.639 --> 0:02:40.080 They're not providing new economic forecasts at this meeting, and 0:02:40.160 --> 0:02:42.679 there's not much data these days on how the economy 0:02:42.720 --> 0:02:45.639 is performing. We may get some indication of which way 0:02:45.680 --> 0:02:49.280 policymakers are leaning if there are significant descents, either to 0:02:49.360 --> 0:02:52.960 cut more or stand still. Traders will also be watching 0:02:53.040 --> 0:02:57.080 for an announced end to qt the Fed's balance sheet runoff. 0:02:57.520 --> 0:02:59.600 Michael McKee, Bloomberg Radio, All right. 0:02:59.520 --> 0:03:02.359 Michael, thank you. In addition to that Fed decision, investors 0:03:02.400 --> 0:03:04.960 will also be looking forward to earnings from a trio 0:03:05.120 --> 0:03:08.760 of big tank powerhouses in Bloomberg. John Tucker joins us 0:03:08.800 --> 0:03:10.760 with the preview. John, Good morning, Yeah. 0:03:10.600 --> 0:03:11.280 Good morning caring. 0:03:11.360 --> 0:03:11.520 Yeah. 0:03:11.560 --> 0:03:14.360 Today we're going to hear from Microsoft Meta Platforms and 0:03:14.480 --> 0:03:18.480 Google Parents Alphabet and that's where Aaron Castler of Seaports 0:03:18.560 --> 0:03:19.920 Securities is focused. 0:03:20.440 --> 0:03:23.079 I think Google's probably benefiting the most right now from AI, 0:03:23.320 --> 0:03:26.919 both on its Google Cloud platform as well as leveraging 0:03:26.960 --> 0:03:29.240 AI for advertising as well. 0:03:29.800 --> 0:03:32.360 And investors trying to figure out whether the billions that 0:03:32.400 --> 0:03:35.800 have been poured into computing infrastructure will keep flowing and 0:03:35.880 --> 0:03:40.040 ultimately deliver returns well. The Magnificent seven Group is projected 0:03:40.080 --> 0:03:43.600 to deliver profit growth of fourteen percent in the third quarter. 0:03:43.960 --> 0:03:47.360 That's nearly twice the eight percent expended profit growth for 0:03:47.440 --> 0:03:50.520 the broader S and P five hundred, but also would 0:03:50.520 --> 0:03:53.280 be the slowest pace since the first quarter of twenty 0:03:53.320 --> 0:03:56.760 twenty three. Apple and Amazon. They open their books to 0:03:56.800 --> 0:03:59.680 investors tomorrow in New York. I'm John Tucker, Bloomberg. 0:03:59.680 --> 0:04:01.720 Crady, all right, John, thank you, and staying within the 0:04:01.760 --> 0:04:04.520 big tech. Shares of Nvidia are rallying this morning on 0:04:04.680 --> 0:04:06.960 more than three percent, and for more and what's behind 0:04:06.960 --> 0:04:09.880 the move? We're joined by Bloomberg's Lisa Matteo, Lisa. 0:04:09.760 --> 0:04:11.640 Good morning, Nathan. Yet it has to do with Nvidia's 0:04:11.680 --> 0:04:15.920 Blackwell chips. Months ago, President Trump said he'd consider allowing 0:04:15.960 --> 0:04:19.920 the company to export a downgraded version of them to China. Well, now, 0:04:20.040 --> 0:04:23.479 just ahead of his highly anticipated meeting with Chinese leader Jijinping, 0:04:23.920 --> 0:04:27.800 those flagship AI accelerators there now on the agenda, with 0:04:27.880 --> 0:04:31.719 President Trump saying, quote, we'll be speaking about Blackwell's now. 0:04:31.760 --> 0:04:34.800 This is a big turnaround from Washington's year's long campaign 0:04:34.880 --> 0:04:39.160 to curtailed China's progress and artificial intelligence. Yesterday, CEO Jensen 0:04:39.160 --> 0:04:43.120 Wong spoke about the company's future partnerships. Also downplayed fears 0:04:43.120 --> 0:04:44.680 of an AI investment bubble. 0:04:45.240 --> 0:04:48.400 AI has now become good enough because of reasoning capability, 0:04:48.480 --> 0:04:52.760 research capabilities, its ability to think. It's now generating tokens 0:04:52.800 --> 0:04:55.800 and now generating intelligence that's worth paying for. 0:04:56.120 --> 0:04:58.839 And that's CEO Jensen Wang at a Video's GtC event 0:04:58.880 --> 0:05:01.960 in Washington, d C in Nvidia on track to become 0:05:02.000 --> 0:05:05.880 the world's first five trillion dollar public company. Lisa Matteo, 0:05:06.040 --> 0:05:07.240 Bloomberg Radio. 0:05:07.160 --> 0:05:09.240 All right, Lisa, thank you. Well. We're also tracking the 0:05:09.279 --> 0:05:12.680 path of Hurricane Melissa this morning. It's made landfall in 0:05:12.760 --> 0:05:16.160 Cuba after pummeling Jamaica as one of the strongest Atlantic 0:05:16.240 --> 0:05:20.440 hurricanes on record, and Bloomberg meteorologist Craig Allen joins us 0:05:20.440 --> 0:05:23.280 with the latest. Craig, good morning, Good morning. 0:05:23.320 --> 0:05:26.520 It was a very interesting night bag with the hurricane 0:05:26.839 --> 0:05:29.880 going back up to a category four at one point 0:05:29.920 --> 0:05:32.160 while it was over the water. Now that it has 0:05:32.240 --> 0:05:35.480 made landfall, this second landfall over eastern sections of Cuba, 0:05:35.520 --> 0:05:38.520 about sixty miles to the west of Guantanamo, it is 0:05:38.560 --> 0:05:41.280 beginning to weaken just a little bit once again over land. 0:05:41.320 --> 0:05:44.000 The category three with one hundred and fifteen mile per 0:05:44.040 --> 0:05:47.280 hour winds, still a major hurricane. There's still going to 0:05:47.320 --> 0:05:50.560 be major damage across eastern sections of Cuba, and then 0:05:50.600 --> 0:05:52.680 after that we have the storm moving off to the 0:05:52.720 --> 0:05:55.560 north and east at about ten to fifteen miles per hour. 0:05:55.640 --> 0:05:58.440 So unfortunately the Turks and Caicos as well as most 0:05:58.480 --> 0:06:01.280 of the Bahamas are under a hurricane warning as well. 0:06:01.440 --> 0:06:04.680 Yes, we will all right, Bloomberg Meteorologists Craig Allen, thank you. 0:06:05.000 --> 0:06:07.240 All right, Carol, Well it's for the markets. We'll turn 0:06:07.320 --> 0:06:10.680 back there. With futures mixed this morning. SMP futures or 0:06:10.720 --> 0:06:13.760 a touch higher. After another record close on Wall Street, 0:06:14.160 --> 0:06:17.000 at Yard Denny of yar Denny Research thinks stocks are 0:06:17.000 --> 0:06:18.239 headed even higher. 0:06:18.800 --> 0:06:22.720 I think the bull market continues here. We've still got 0:06:23.520 --> 0:06:26.120 some good news ahead, and some of it's been discounted, 0:06:26.160 --> 0:06:29.000 of course, but the Fed is expected to lower the 0:06:29.000 --> 0:06:32.640 Fed funds rate two more times this year, so that 0:06:32.680 --> 0:06:36.080 would get us down to three point five percent. By 0:06:36.160 --> 0:06:39.040 the way, I don't think the economy really needs it, 0:06:39.120 --> 0:06:42.239 so a lot of this stimulus is probably going to 0:06:42.279 --> 0:06:43.559 feed the bull market. 0:06:44.600 --> 0:06:46.800 At Yard Anny of yard Denny Research predicts the S 0:06:46.839 --> 0:06:49.200 and P five hundred will reach seven thousand by the 0:06:49.279 --> 0:06:49.839 end of the year. 0:06:50.640 --> 0:06:54.240 In Europe, bank earnings in focus once again as a 0:06:54.240 --> 0:06:57.080 trio of big banks report. Let's go to London and 0:06:57.080 --> 0:06:59.560 get the very latest at Bloomberg's U and pass you 0:06:59.600 --> 0:07:00.000 and good more. 0:07:00.839 --> 0:07:01.560 Karen and Nathan. 0:07:01.640 --> 0:07:04.599 A beat from UBS, a beat from Santander, and a 0:07:04.640 --> 0:07:08.560 beat from Deutsche Bank, Germany's biggest lender, reporting a nineteen 0:07:08.600 --> 0:07:11.480 percent rise in revenue at its fixed income trading unit, 0:07:11.640 --> 0:07:15.720 outpacing estimates over in Switzerland, the UBS posting net income 0:07:15.760 --> 0:07:17.880 of two and a half billion dollars for the latest 0:07:17.920 --> 0:07:21.520 three months, smashing estimates for one point four billion dollars. 0:07:21.760 --> 0:07:24.360 The results supported by a release of provisions related to 0:07:24.400 --> 0:07:27.560 the settlement of a tax evasion case. And to finish off, 0:07:27.560 --> 0:07:31.720 the Trio, Spain's biggest bank, posting its sixth consecutive quarterly 0:07:31.720 --> 0:07:35.800 profits record, Santadere, boosted by better results from the US 0:07:35.840 --> 0:07:38.880 and lower provisions for souring debts. In London, I'm ewing 0:07:38.920 --> 0:07:40.160 pots Bloomberg. 0:07:39.760 --> 0:07:44.480 Radio Time now for a look at some of the 0:07:44.520 --> 0:07:46.880 other stories making news in New York and around the world. 0:07:46.920 --> 0:07:49.520 Then for that, we're joined by Bloomberg's Michael Barr. 0:07:49.600 --> 0:07:52.760 Michael, good Morning, Good morning, Karen. Israel's army says it 0:07:52.800 --> 0:07:57.520 began reinforcing the Gaza ceasefire agreement. It comes after Prime 0:07:57.520 --> 0:08:02.600 Minister Benjamin Netanyaho ordered forest strikes against Amas in response 0:08:02.640 --> 0:08:06.600 to attacks on Israeli soldiers and Gazim. Meanwhile, President Trump 0:08:06.680 --> 0:08:10.400 was asked about Israel accusing of Mos violating a ceasefire 0:08:10.560 --> 0:08:13.760 order by not returning all the bodies of hostages and 0:08:13.920 --> 0:08:16.200 allegedly firing at an idea of soldier. 0:08:16.720 --> 0:08:20.560 Nobody knows what happened to the Israeli soldier, but they 0:08:20.560 --> 0:08:25.280 say it with sniper fire, and it was retribution. 0:08:24.920 --> 0:08:26.560 For that, and I think they have a right to do. 0:08:27.320 --> 0:08:30.680 The President spoke with reporters on Air Force One. The 0:08:30.720 --> 0:08:34.520 Border patrol commander in charge of President Trump's immigration crackdown 0:08:34.559 --> 0:08:37.920 in Chicago is being reined in by a federal judge. 0:08:38.280 --> 0:08:42.559 US District Judge Sarah Ellis gave Greg Bovino an earfull 0:08:42.640 --> 0:08:45.640 about the tactics he and his agents are using and 0:08:45.880 --> 0:08:49.000 ordered him to start providing her with briefings every day. 0:08:49.559 --> 0:08:53.480 The US military struck four alleged drug vessels in the Pacific. 0:08:53.840 --> 0:08:57.960 Authority say fourteen people were killed and one survived. President 0:08:58.000 --> 0:09:01.839 Trump claims the alleged drug trap is being orchestrated by 0:09:01.960 --> 0:09:07.280 Venezuela's authoritarian leader, Nicholas Maduro. Former Defense Department official Mick. 0:09:07.240 --> 0:09:10.560 Mulroy, Essentially, there's about twenty percent of our naval forces 0:09:10.559 --> 0:09:13.640 are now in the Caribbean, which is very unusual. It's 0:09:13.640 --> 0:09:18.679 simply not needed to do narcotics operations to hit these 0:09:18.679 --> 0:09:19.640 small boats. 0:09:20.080 --> 0:09:24.679 Maduro's government says President Trump's real goal is not fighting 0:09:24.760 --> 0:09:28.880 drug trafficking, but a forced regime change in Venezuela. It 0:09:29.000 --> 0:09:31.120 is the eleventh time in less than two months, the 0:09:31.240 --> 0:09:34.800 US has carried out strikes on alleged drug carrying vessels. 0:09:35.280 --> 0:09:38.280 Global News twenty four hours a day and whenever you 0:09:38.400 --> 0:09:41.200 want it with the Bloomberg News. Now, I'm Michael Barr, 0:09:41.240 --> 0:09:42.679 and this is Bloomberg Karen. 0:09:42.880 --> 0:09:49.520 All right, Michael Barr, thank you time now for the 0:09:49.520 --> 0:09:52.160 Bloomberg Sports Update. Here's John stash Hour. 0:09:52.280 --> 0:09:54.400 John, good morning, Good morning. Care On the Toronto Blue 0:09:54.480 --> 0:09:56.840 Jays were coming off losing in eighteen and inns. They 0:09:56.840 --> 0:09:59.880 had to play World Series Game four without George Springer. 0:10:00.040 --> 0:10:03.040 He had to face Joey o'tani at the plate and 0:10:03.200 --> 0:10:05.559 on the mound the Jay's trail the Dodgers one nothing, 0:10:05.679 --> 0:10:08.280 third in there's a flat on a. 0:10:08.320 --> 0:10:13.160 Deep left center field heading back to is gone. Senior 0:10:13.400 --> 0:10:20.480 gives the Joys tame but franchise face, putting the team 0:10:20.520 --> 0:10:23.480 on his bet. I'll tell you, this guy's amazing and 0:10:23.520 --> 0:10:25.679 he's ready for everything. I mean, this is the first 0:10:25.720 --> 0:10:28.479 mistake that o'tonni has made. 0:10:28.720 --> 0:10:31.400 On Fox Sports at stay two one until Toronto scored 0:10:31.520 --> 0:10:34.120 four times in the seventh and the Jays won six 0:10:34.240 --> 0:10:37.240 to two to tie the series at two. O'twni, after 0:10:37.280 --> 0:10:39.800 his Game three heroics zero for three at the plate 0:10:39.880 --> 0:10:42.600 and was the losing picture. Toronto manager John Schneider asked 0:10:42.640 --> 0:10:45.720 about the Guerrero homer and the seventh in a rally. 0:10:46.200 --> 0:10:49.080 It's a huge swing to get us going, and I 0:10:49.120 --> 0:10:53.120 think that gives you some momentum, and you know, show 0:10:53.160 --> 0:10:54.839 he settled in, struck out quite a few in a 0:10:54.920 --> 0:10:59.440 row after that, but you know, our bats there kind 0:10:59.440 --> 0:11:01.559 of just it was a Blue Jay inning, you know 0:11:01.600 --> 0:11:04.200 what I mean, varsh Ernie and then he kind of 0:11:04.200 --> 0:11:06.960 went to work. But the swing from Vlad was game changer. 0:11:07.240 --> 0:11:09.920 Game five tonight Saint Pitchers was Game one the Dodgers 0:11:10.000 --> 0:11:12.400 Blakes now the Blue Jays go with Rookie Tree, Yes 0:11:12.520 --> 0:11:15.160 Savage Nickson. Milwaukee had a twelve point lead at halftime, 0:11:15.240 --> 0:11:17.360 back came the Bucks to win one twenty one, one 0:11:17.400 --> 0:11:21.080 to eleven. Giannis to the cupbo thirty three minutes, thirty 0:11:21.160 --> 0:11:24.240 seven points. Jalen Brunson led the Knicks with thirty six 0:11:24.320 --> 0:11:27.040 Rangers a two to nothing winning Vancouver sixty fourth career 0:11:27.120 --> 0:11:30.559 shutout for Jonathan Quick. Islanders lost in Boston five to two. 0:11:30.559 --> 0:11:31.079 The Devils. 0:11:31.120 --> 0:11:33.520 Eight game winnings Dray came to an end and eight 0:11:33.559 --> 0:11:36.240 to four loss of Colorado Dallas over the Capitols won 0:11:36.320 --> 0:11:39.480 nothing New Orleans Saints one and seven, beating only the Giants. 0:11:39.520 --> 0:11:42.559 They're making a quarterback change. Twenty six year old rookie 0:11:42.760 --> 0:11:45.880 Tyler Schoff willing to play Spencer Rattler. The Baltimore Ravens 0:11:45.880 --> 0:11:49.880 played tomorrow night in Miami. Lamar Jackson will return after 0:11:49.920 --> 0:11:52.679 missing three games with injured hamstring. John Stashan, We're in 0:11:52.679 --> 0:11:54.240 Bloomberg Sports Karen Ncoln. 0:11:55.880 --> 0:11:58.760 Stay with us. More from Bloomberg day Break coming up 0:11:58.960 --> 0:11:59.680 after this. 0:12:03.840 --> 0:12:07.880 Coast to coast on Bloomberg Radio nationwide on Serious Exam 0:12:08.120 --> 0:12:10.960 and around the world on Bloomberg dot Com and the 0:12:11.000 --> 0:12:14.040 Bloomberg Business app. This is Bloomberg Daybreak. 0:12:14.080 --> 0:12:14.559 Good morning. 0:12:14.559 --> 0:12:17.200 I'm Nathan Hager, and the key event of President Donald 0:12:17.200 --> 0:12:19.880 Trump's to a trip to Asia is now just a 0:12:20.000 --> 0:12:23.120 day away before his face to face encounter tomorrow with 0:12:23.320 --> 0:12:26.920 Chinese President she Jinpaning. The President is telling business leaders 0:12:27.000 --> 0:12:30.080 in South Korea today he expects a good outcome. 0:12:30.400 --> 0:12:33.800 President Chief China is coming tomorrow here and we're going 0:12:33.840 --> 0:12:34.520 to be uh. 0:12:34.559 --> 0:12:35.520 I hope making a deal. 0:12:35.559 --> 0:12:36.719 I think we're going to have a deal. I think 0:12:36.720 --> 0:12:37.480 it'll be a good deal. 0:12:37.520 --> 0:12:38.480 For both. 0:12:38.800 --> 0:12:41.560 That was President Trump speaking at an APEX CEO summit 0:12:41.640 --> 0:12:43.760 in South Korea. Joining us for more this morning from 0:12:43.760 --> 0:12:47.200 Hong Kong is Bloomberg's Jill Desis and Jill. Some of 0:12:47.200 --> 0:12:49.640 the commentary that we're hearing from the President ahead of 0:12:49.640 --> 0:12:53.640 this encounter is pretty interesting. This idea of lowering tariffs 0:12:53.679 --> 0:12:56.920 on Chinese goods related to the fentanyl crisis, as well 0:12:56.920 --> 0:13:01.840 as talking about Nvidia's black welch with President she that 0:13:01.880 --> 0:13:02.920 would be pretty major. 0:13:03.160 --> 0:13:06.080 Good morning, Good morning, Nathan. Yes, I mean, you know, 0:13:06.160 --> 0:13:08.240 first of all, I want to make clear, you know, 0:13:08.320 --> 0:13:10.720 a lot of what's been building up to this particular 0:13:10.760 --> 0:13:15.200 meeting between President Donald Trump and Shei Jinping has already 0:13:15.200 --> 0:13:17.440 been really widely telegraphed. You kind of get the feeling 0:13:17.600 --> 0:13:20.560 like from you know, the broader Trump administration that you know, 0:13:20.600 --> 0:13:22.800 they've been working behind the scenes for at this point 0:13:22.840 --> 0:13:26.120 weeks to try to smooth over a deal. We did 0:13:26.200 --> 0:13:29.240 actually get a sense of that broad framework agreement actually 0:13:29.280 --> 0:13:31.480 over the weekend, So this does kind of feel like 0:13:31.520 --> 0:13:33.880 in some ways, you know, maybe there's some attempts to 0:13:34.200 --> 0:13:36.400 to you know, not have too many surprises here. Although 0:13:36.440 --> 0:13:39.840 obviously we've heard from Trump himself today, who did put 0:13:39.840 --> 0:13:42.800 out some of those really really interesting comments. So first 0:13:42.840 --> 0:13:45.800 of all, him saying that, you know, he's he thinks 0:13:45.840 --> 0:13:48.840 that China is going to make, you know, making some 0:13:48.880 --> 0:13:51.560 sort of favorable moves on the what he called the 0:13:51.559 --> 0:13:55.920 Fentanel situations. That idea potentially lowering tariffs there I think 0:13:55.920 --> 0:13:59.200 would be fairly significant. You know, there's other media reporting 0:13:59.720 --> 0:14:03.000 that Trump is considering cutting what's a twenty percent tariff 0:14:03.040 --> 0:14:05.880 to as low as ten percent on Chinese goods over 0:14:05.960 --> 0:14:09.840 fentanyl in particular, So that's something that we're certainly keeping 0:14:09.880 --> 0:14:12.720 an eye on. But it really is those Nvidia comments 0:14:12.760 --> 0:14:14.920 as well that I think are really really interesting. So 0:14:14.960 --> 0:14:18.000 what Trump was suggesting here is that he was open 0:14:18.080 --> 0:14:22.440 to providing China with access to this Blackwell AI processor 0:14:22.480 --> 0:14:24.960 from Nvidia as part of any trade deal. I mean, 0:14:24.960 --> 0:14:28.680 that would be a major concession. I imagine that national security 0:14:28.680 --> 0:14:32.040 hawks in Washington maybe not too particularly happy about that idea, 0:14:32.120 --> 0:14:34.080 but it does seem like that's something that could come 0:14:34.120 --> 0:14:35.280 up in these talks, and. 0:14:35.200 --> 0:14:38.040 It's something that's certainly getting the market's attention this morning. 0:14:38.080 --> 0:14:40.880 I mean, how significant would that be? How difficult would 0:14:40.920 --> 0:14:43.560 it be to make that part of a trade deal 0:14:43.640 --> 0:14:47.480 given the significant restrictions that are already on in video 0:14:47.600 --> 0:14:49.680 right now, not just from the US, but from China 0:14:49.720 --> 0:14:50.120 as well. 0:14:50.640 --> 0:14:53.640 Yes, that's right, and that's actually something that chief of Nvidia, 0:14:53.720 --> 0:14:57.760 Jensen Huang, has actually said. I mean, he noted that 0:14:58.120 --> 0:15:00.720 Trump is actually licensed in Vidia to to China, but 0:15:00.760 --> 0:15:03.400 it's China that's blocked them from being able to ship 0:15:03.440 --> 0:15:06.480 to China. That's from Johnsonhang himself. He was speaking at 0:15:06.480 --> 0:15:09.560 a company in Washington. I think, you know, look this 0:15:09.600 --> 0:15:11.400 there has been a lot of back and forth this year. 0:15:11.440 --> 0:15:13.080 A lot of this really does come down to not 0:15:13.200 --> 0:15:15.840 just sort of the overall trade agreement, but also basically 0:15:16.040 --> 0:15:20.320 some pretty significant national security concerns about what it would 0:15:20.320 --> 0:15:23.760 mean to supply China with any kind of advanced chips 0:15:23.760 --> 0:15:26.360 that's being made by an American company. You know, we 0:15:26.440 --> 0:15:28.800 did see earlier this year there were some concessions in 0:15:28.800 --> 0:15:30.440 the form of the US government saying that it would 0:15:30.440 --> 0:15:35.160 approve licenses for a particular type of Nvidia chip that 0:15:35.200 --> 0:15:37.840 was designed to comply with export controls, not to ship 0:15:37.840 --> 0:15:42.320 over like extremely invansed technology. You know, obviously that hasn't occurred, 0:15:42.720 --> 0:15:44.680 So it does seem like there would be some significant 0:15:44.720 --> 0:15:47.000 hurdles to actually getting something like this over the line, 0:15:47.240 --> 0:15:48.880 you know. I mean, look, Trump goes into a lot 0:15:48.920 --> 0:15:50.960 of these types of meetings, you know, saying a lot 0:15:50.960 --> 0:15:53.200 of things. I think there's still some consideration over what 0:15:53.240 --> 0:15:55.520 that back and forth actually looks like. So it's not 0:15:55.560 --> 0:15:57.680 really just about even what the President says tomorrow, but 0:15:57.720 --> 0:16:00.520 also what some of these deals look like. We actually 0:16:00.600 --> 0:16:02.560 get some really really hard specifics. 0:16:02.840 --> 0:16:06.040 Oh, we should get some idea in the hours to come. 0:16:06.120 --> 0:16:08.320 The White House is saying that this encounter is going 0:16:08.360 --> 0:16:12.360 to happen mid morning tomorrow in South Korea. So it's 0:16:12.440 --> 0:16:14.760 just as we say, hours away, thank you for this. 0:16:14.840 --> 0:16:17.840 Jill really appreciate it. That is Bloomberg's Jill desis ahead 0:16:17.880 --> 0:16:20.640 of the Trump. She meeting with us this morning from 0:16:20.680 --> 0:16:21.160 Hong Kong. 0:16:21.320 --> 0:16:24.800 Karen Nathan, we want to get the latest on Hurricane Melissa, 0:16:25.000 --> 0:16:28.120 and we're joined once again by Bloomberg meteorologist Craig Allen. 0:16:28.360 --> 0:16:31.640 Craig the storm making landfall in Cuba. It's a little 0:16:31.680 --> 0:16:34.080 weaker than it was when it hit Jamaica, but still 0:16:34.440 --> 0:16:35.600 a major system. 0:16:35.600 --> 0:16:39.400 What's the latest, Absolutely one hundred and fifteen mile per 0:16:39.440 --> 0:16:42.479 hour winds. It did go back up to a category 0:16:42.560 --> 0:16:45.400 four last night while over the water and heading towards 0:16:45.400 --> 0:16:50.920 the eastern coast of Cuba, made landfall around Santiago de Cuba, 0:16:51.000 --> 0:16:55.720 and it is that's the second most populated city over 0:16:55.760 --> 0:16:58.600 eastern sections of Cuba there and right now is about 0:16:58.600 --> 0:17:01.320 sixty miles to the west of on Toonamo. So we 0:17:01.400 --> 0:17:03.760 have one hundred and fifteen mile per hour winds. The 0:17:03.800 --> 0:17:05.800 winds are down a little bit, just like you said. 0:17:06.240 --> 0:17:09.240 At the same time, though the rain is continuing. The 0:17:10.480 --> 0:17:13.040 storm surge is going to continue right through the day 0:17:13.040 --> 0:17:16.399 today and then we'll take off to the northeast at 0:17:16.400 --> 0:17:19.120 about ten to fifteen miles per hour, a little bit 0:17:19.160 --> 0:17:22.160 faster than it was yesterday. That is a good thing 0:17:22.280 --> 0:17:24.520 to try to get it out of any particular region. 0:17:24.600 --> 0:17:28.240 But the southeast Bahamas are now under a hurricane warning, 0:17:28.320 --> 0:17:31.440 so the Turks and Caicos probably won't be a direct 0:17:31.520 --> 0:17:35.040 hit on some of the areas like Nassau or Freeport 0:17:35.320 --> 0:17:39.840 or the other portions of the Bahamas where there's major 0:17:40.000 --> 0:17:43.120 vacation or tourism, but the Turks and Caicos too will 0:17:43.160 --> 0:17:45.159 also feel the effects of the storm today. 0:17:45.560 --> 0:17:47.800 And does that mean the US is in the clear, then. 0:17:48.920 --> 0:17:51.399 Well, the US is in the clear in terms of 0:17:51.440 --> 0:17:54.760 any kind of direct hit. You're absolutely right, and there 0:17:54.840 --> 0:17:58.520 will be some rough surf and I would think rip 0:17:58.560 --> 0:18:01.760 currents along the southeast coast as the storm tries to 0:18:01.760 --> 0:18:04.520 pull away, But a direct effect with any kind of 0:18:04.600 --> 0:18:08.040 rain and wind is highly unlikely. The storm is going 0:18:08.080 --> 0:18:10.640 to take a track to the north and east, and 0:18:11.240 --> 0:18:13.720 by the time we get to the end of this week, 0:18:13.760 --> 0:18:17.520 you know who's next. Once again, Bermuda likely to see 0:18:17.640 --> 0:18:20.280 winds that will gust up to about one hundred, one 0:18:20.359 --> 0:18:23.119 hundred and fifteen miles per hour there too, as the 0:18:23.119 --> 0:18:24.920 storm takes off to the north and east. So it's 0:18:24.920 --> 0:18:27.720 still a Category one at least by the time it 0:18:27.760 --> 0:18:31.480 gets to Bermuda and then takes off into the North Atlantic. Fortunately, 0:18:31.520 --> 0:18:33.720 as I said, the East coast of the United States 0:18:33.720 --> 0:18:35.520 will not feel any direct effects. 0:18:35.720 --> 0:18:38.479 Okay, but it sounds like this storm has some staying power. 0:18:38.600 --> 0:18:40.600 Then how long is it going to be to us? 0:18:42.240 --> 0:18:44.119 Yes, hey, you know that's right. It goes into the 0:18:44.119 --> 0:18:46.600 North Atlantic, it takes the entire week, But talk about 0:18:46.640 --> 0:18:49.440 staying power. As soon as it moves off Jamaica, it 0:18:49.560 --> 0:18:54.080 reintensified once again, could briefly reintensify when it moves off 0:18:54.119 --> 0:18:57.479 Cuba a little bit later on this morning, but then 0:18:57.520 --> 0:18:59.560 it will go down. There are other factors there. The 0:18:59.600 --> 0:19:02.520 water is not quite as warm, there's more wind sheer, 0:19:02.720 --> 0:19:05.159 and therefore I don't think it'll be able to get 0:19:05.200 --> 0:19:08.080 as strong as it ever as it was once again 0:19:08.160 --> 0:19:10.720 in the rest of Melissa's life. 0:19:11.000 --> 0:19:12.920 All right, well, what's behind Melissa? 0:19:13.119 --> 0:19:13.960 Is this the end of it? 0:19:14.080 --> 0:19:15.520 Or do we have to watch anything else? 0:19:16.359 --> 0:19:20.240 Well, the hurricane season officially runs until November thirtieth, so 0:19:20.440 --> 0:19:23.120 there could always be another system. But right now, I'm 0:19:23.160 --> 0:19:26.440 happy to say that the rest of the Gulf, as 0:19:26.480 --> 0:19:30.080 well as the Caribbean and the Atlantic basin are pretty quiet. 0:19:30.119 --> 0:19:32.320 For the time being. There's nothing more to watch for 0:19:32.359 --> 0:19:34.399 at least another two to five days. 0:19:36.080 --> 0:19:39.000 This is Bloomberg day Break, your morning podcast on the 0:19:39.080 --> 0:19:42.600 stories making news from Wall Street to Washington and beyond. 0:19:42.840 --> 0:19:45.240 Look for us on your podcast feed by six am 0:19:45.280 --> 0:19:48.680 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:19:48.880 --> 0:19:51.760 You can also listen live each morning starting at five 0:19:51.800 --> 0:19:54.400 am Wall Street time on Bloomberg eleven three to zero 0:19:54.520 --> 0:19:57.400 in New York Bloomberg ninety nine to one in Washington, 0:19:57.480 --> 0:20:01.879 Bloomberg ninety two nine in Boston, andationwide on serious XM 0:20:01.960 --> 0:20:03.160 Channel one twenty one. 0:20:03.560 --> 0:20:06.320