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

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the Bloomberg News exclusive. Sources tell

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Speaker 3: Bloomberg News that Chinese authorities are discouraging local firms from

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Speaker 3: using NVIDIAs less advanced each twenty processor, particularly for government

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Speaker 3: related purposes. We're told the directive also includes AI accelerators

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Speaker 3: from Advanced micro Devices, though it's unclear whether the notices

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Speaker 3: specifically mention AMD. We get more from Bloomberg's Min men

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Speaker 3: Low in Hong Kong.

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Speaker 4: Definitely very significant, a timing as well, very significant, coming

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Speaker 4: on the day when President Trump had announced the extension

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Speaker 4: of the Tway Truths, and we know China had been

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Speaker 4: pushing so hard for the rolling back of these take cups,

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Speaker 4: and clearly China doesn't see the reversal of the decision

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Speaker 4: to sell each twenty chips to China as a win

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Speaker 4: or a concession at all.

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Speaker 3: Bloomberg's Min Menlow reports Chinese regulators have raised security concerns

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Speaker 3: about nvidia's H twenty chip, and Vidia has repeatedly denied

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Speaker 3: any vulnerabilities, but checking the shares right now in Nvidia

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Speaker 3: is down about four tenths of one percent. Pre market

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Speaker 3: advanced micro devices is little changed.

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Speaker 2: Well, Nathan. Elsewhere in US China relations, Washington and Beijing

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Speaker 2: have agreed to keep their tariffs at current levels for

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Speaker 2: another ninety days. The two sides initially reached a ninety

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Speaker 2: day pause in May. The extension that lasts until November tenth,

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Speaker 2: maintains this trade status quo between the world's two largest

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Speaker 2: economies and follows a series of tit for tat hikes

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Speaker 2: and export restrictions on rare earth magnets and certain technologies.

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Speaker 2: Wendy Cutler, vice president of the Asia Society Policy Institute, says,

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Speaker 2: even with the extension, negotiations will not be easy.

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Speaker 5: There's not a lot of time for these negotiations to proceed,

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Speaker 5: so now they can really put their energies and attention

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Speaker 5: on the key outstanding issues including export controls, critical minerals,

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Speaker 5: access capacity, you name it. There's lots of issues on

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Speaker 5: the agenda and not a lot of time to come

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Speaker 5: up with negotiated solutions.

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Speaker 2: Wendy Kutler with the Asia Society Policy Institute, spoke after

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Speaker 2: President Trump announced the extension of the truce in a

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Speaker 2: truth social post.

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Speaker 3: Well, another announcement for the President that's getting a lot

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Speaker 3: of attention in the nation's capital, Karen is he plans

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Speaker 3: to take federal control of the police department in Washington,

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Speaker 3: d C. President said that in a news conference heard

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Speaker 3: right here on Bloomberg Radio, saying he'll also deploy eight

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Speaker 3: hundred National Guard troops in the district to fight crime.

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Speaker 6: Today, we're declaring public safety emergency in the district of

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Speaker 6: Columbian Attorney General Pam Bondi, who's fantastic, is taking command

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Speaker 6: of the Metropolitan Police Department as of this moment, and

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Speaker 6: I'll be making the appropriate notifications to Congress.

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Speaker 3: President Trump also threatened to insert federal personnel into other cities,

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Speaker 3: including New York and Chicago, if they don't crack down

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Speaker 3: on quote out of control crime. DC Mayor Muriel Bowser's

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Speaker 3: responding saying the President's announcements were, in her words, unsettling

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Speaker 3: and unprecedented.

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Speaker 2: I can't say that given some of the rhetoric of

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Speaker 2: the past, that were totally.

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Speaker 3: Surprised, as DC Mayor Muriel Bowser. Justice Department statistics show

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Speaker 3: violent crime in the nation's capital hit a thirty year

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Speaker 3: low in twenty twenty four.

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Speaker 2: Well staying in DC Nathan. President Trump named E. J. Antony,

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Speaker 2: an economist with the conservative think tank the Heritage Foundation,

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Speaker 2: as the new head of the US Bureau of Labor Statistics.

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Speaker 2: The President dismissed the previous chief following a week jobs

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Speaker 2: report that included several revisions. The President claimed the report

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Speaker 2: was rigged against him. President Trump is promising future data

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Speaker 2: releases will be quote, honest and accurate. Bloombery Senior editor

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Speaker 2: Derek Wallbank says the faith in US economic data remains uncertain.

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Speaker 7: Antony will be under an exorbitant amount of pressure to

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Speaker 7: prove to lawmakers and to prove to economists and to

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Speaker 7: market participants that the BLS numbers are accurate, They were accurate,

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Speaker 7: and they will be accurate.

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Speaker 2: Bloomberg Senior editor Derek Wallbank, adding that Antony will still

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Speaker 2: need to be confirmed in the position by the Senate.

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Speaker 3: Of course, another Senate confirmable position that's opening up. Karen Is,

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Speaker 3: the Federal Reserve chair, and two Trump administration officials tell

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Speaker 3: Bloomberg News FED vice chairs Michelle Bowman and Philip Jefferson,

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Speaker 3: along with Dallas FED President Lourie Logan, are under consideration

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Speaker 3: for the job when j Powell's term expires next spring.

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Speaker 3: The official say Treasury Secretary Scott Bessett will interview additional

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Speaker 3: candidates in the coming weeks and make a recommendation to

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Speaker 3: President Trump on a shortlist. The Fed's next policy meeting

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Speaker 3: scheduled for September sixteenth and seventeenth, and head of.

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Speaker 2: That policy meeting Nathan The Fed will get a sluet

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Speaker 2: economic data this week, including the first of two inflation reports.

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Speaker 2: This morning do out at eight thirty Wall Street time.

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Speaker 2: Bloomberg's Michael McKee joins us with a preview of the

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Speaker 2: jee high Consumer Price Index.

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Speaker 8: This inflation report is one that should live up to

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Speaker 8: the hype The week jobs report August first convinced investors

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Speaker 8: the Fed will cut rates in September, but that will

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Speaker 8: require inflation remaining relatively benign. A small increase today should

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Speaker 8: open the door for a cut, although there's another CPI

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Speaker 8: report before the next FED meeting. A bigger tariff driven

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Speaker 8: increase would make a cut that much more problematic. Watch

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Speaker 8: to see if annual core inflation breaches the three percent mark.

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Speaker 8: Michael McKee, Bloomberg Radio.

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Speaker 3: A Mike Thanks and other economic News Gold held a

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Speaker 3: loss after President Trump said imports of gold bars won't

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Speaker 3: be subject to tariffs. That was after Customs and Border

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Speaker 3: Protection ruled they would be. Gold has climbed more than

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Speaker 3: a quarter this year, supported by geopolitical and trade tensions,

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Speaker 3: along with central bank purchases. Comix Gold this morning is

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Speaker 3: down two tenths of one percent, trading at thirty three

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Speaker 3: hundred and ninety nine dollars an ounce Nathan.

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Speaker 2: President Trump is downplaying his meeting with Russian President Vladimir Putin,

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Speaker 2: seattled for Friday in Alaska. The President says it's a

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Speaker 2: feel out meeting and that he'd speak with other world

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Speaker 2: leaders afterwards as he seeks a ceasefire in the war

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Speaker 2: in Ukraine. Ukraine's president Vladimir z Alensky has not been

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Speaker 2: invited to the summit and says he's skeptical about the

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Speaker 2: Kremlin's motives.

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Speaker 9: Putin is determined only to present a meeting with America

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Speaker 9: as his personal victory and then continue acting exactly as before,

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Speaker 9: applying the same pressure on Ukraine as before. So far,

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Speaker 9: there is no indication whatsoever that the Russians have received

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Speaker 9: signals to prepare for a post war situation.

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Speaker 2: Vladimir's Olenski, speaking through an interpreter, Ukraine and its European

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Speaker 2: allies have been pushing for a halt of the fighting

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Speaker 2: and freezing the current front line as a first step

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Speaker 2: before talks in a more enduring settlement.

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Speaker 3: Man Back in Washington, Karen Treasury Secretary Scott Besson says

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Speaker 3: he thinks he could have made the markets react more

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Speaker 3: positively to President Trump's Liberation Day tariff announcement. In an

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Speaker 3: exclusive interview, Bloomberg BusinessWeek looks at how the Treasury secretary

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Speaker 3: has become the Trump cabinet member that Wall Street trusts

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Speaker 3: and we get more from Bloomberg's Jeff Bellinger.

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Speaker 10: Many traders look to Scott Bessant as a moderator, someone

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Speaker 10: who reins in the White House's impulses, but the Treasury

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Speaker 10: Secretary tells Bloomberg BusinessWeek he merely advises President Trump, helping

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Speaker 10: him translate his populism into economic policy. The modest approach

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Speaker 10: can't hide that bessen has been tapped to take on

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Speaker 10: some of the most difficult assignments of Trump's second term.

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Speaker 10: But despite being the favorite on Wall Street, one area

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Speaker 10: of the Treasury Secretary has not yet managed to grip

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Speaker 10: is the US fiscal deficit, which he campaigned on getting

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Speaker 10: down to three percent, but is now set to grow

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Speaker 10: after blockbuster tax cuts in New York. Jeff Bellinger, Bloomberg Radio.

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Speaker 3: All Right, Jeff, thank in our interview with Treasury Secretary

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Speaker 3: Scott Bessant. Is the cover story of the latest edition

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Speaker 3: of Bloomberg Business Week. He can check it out in

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Speaker 3: today's Bloomberg Big Take. It's on the Bloomberg terminal and

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Speaker 3: at Bloomberg dot Com.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making new he was in New York and around

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Speaker 2: the world, and for that we're joined by Bloomberg's Michael Barr.

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Speaker 10: Michael, good Morning, Good morning Karen.

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Speaker 11: A federal judge in New York says transcripts of the

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Speaker 11: secret grand jury testimony that led to the sex trafficking

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Speaker 11: indictment of Jeffrey Epstein's former girlfriend, Gallaine Maxwell should not

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Speaker 11: be released. The judge suggested Monday, the Justice Department's real

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Speaker 11: motive for wanting the transcripts unsealed was to fool the

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Speaker 11: public with an illusion of transparency. Maxwell is serving a

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Speaker 11: twenty year prison term. Maxwell recently was interviewed by the

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Speaker 11: Justice Department and was moved from a prison in Florida

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Speaker 11: to a prison camp in Texas. Epstein died in jail

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Speaker 11: awaiting trial. An explosion at a US steel plant that

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Speaker 11: shook the ground near Pittsburgh left too dead and sent

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Speaker 11: at least ten to hospitals. An Allegheny County spokesperson says

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Speaker 11: an explosion followed by several smaller blasts happened Monday morning

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Speaker 11: at the Clareton Coke Works the West Steels Kurt Barshik.

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Speaker 3: The rest of the plant is stable and secure, so

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Speaker 3: there's no additional impact as far as any gas or utilities.

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Speaker 11: US Steals Kurt Barshik. Authorities say they are done with

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Speaker 11: the recovery phase of the operation and will now start

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Speaker 11: the investigation into what caused the blast. Police in Austin, Texas,

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Speaker 11: say a suspect is in custody after opening fire outside

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Speaker 11: a target store Monday afternoon, killing three people. Police say

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Speaker 11: they spotted the suspect as he hijacked a car and

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Speaker 11: then drove away. He crashed less than two miles down

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Speaker 11: the road, ditch that car, and then hijacked another vehicle.

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Speaker 11: Police chased him to South Austin. They finally caught up

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Speaker 11: with him, tased them and arrested them. Today and tomorrow

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Speaker 11: some Americans might be able to witness one of the

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Speaker 11: most active media showers of the year. The Persea Meta

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Speaker 11: Shower will peak for North America specifically early Wednesday, but

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Speaker 11: the American he to your Society, Warren's particular bright moon

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Speaker 11: might make it hard for it the sea. Derek Pitts

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Speaker 11: is the chief astronomer at the Franklin Institute. It can

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Speaker 11: show us as many as one hundred met years per

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Speaker 11: hour if we go outside and take a look at

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Speaker 11: the night sky under clear dark skies. Astronomer Derek Pitts

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Speaker 11: Global News twenty four hours a day and whenever you

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Speaker 11: want it with Bloomberg News Now. I'm Michael Barrn.

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Speaker 2: This is Bloomberg Heart all right, Michael Barry, thank you

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Speaker 2: time now for the Bloomberg Sports Update, brought to you

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Speaker 2: by Flushing Bank. And here is John stash Hour.

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Speaker 1: John, Good morning, Morny Carriages with the Yankees needed when

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Speaker 1: in need of a win. A visit from the Minnesota Twins,

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Speaker 1: where the Yanks have been dominating seemingly forever, in fact,

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Speaker 1: since two thousand and two. The Yanks against the twins

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Speaker 1: one hundred and twenty four wins, forty four losses. They

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Speaker 1: use the long wall at the stadium. Cody Bellinger homer

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Speaker 1: of the first, hitting John Carlos Stanton and Ben Rice

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Speaker 1: back to back in the third. Jazz Chisholm the eighth,

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Speaker 1: all four homer solo shot. Solid pitching from Will Warn

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Speaker 1: the rare time when a Yankee starter actually worked into

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Speaker 1: the seventh inning. Yanks won six to two. Red Sox

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Speaker 1: lost seven to six in Houston. It was Alex Bregman's

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Speaker 1: first game back where he played for nine years, and

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Speaker 1: he homeward in the first inning. The Phillies won four

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Speaker 1: to one at Cincinnati to go six games ahead of

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Speaker 1: the Mets. Too are at City Field tonight against Atlanta.

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Speaker 1: After againting swept in Milwaukee. Carlos Bendoza sounded like the

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Speaker 1: manager of a team with a seven game losing streak.

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Speaker 7: Fuck.

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Speaker 6: He's saying, we got the talent, we got the players,

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Speaker 6: but until we start playing.

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Speaker 2: Better and getting the jumped on, you know.

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Speaker 10: You know, we don't think to believe in the guys,

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Speaker 10: you know, and we will. You know, he stopped I know,

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Speaker 10: he stopped them.

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Speaker 11: Right now.

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Speaker 1: He's very frustrating.

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Speaker 3: We're all very frustrated, you know, but you gotta keep going.

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Speaker 1: As for those red hot Brewers, a tenth winn in

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Speaker 1: a row, seven to one over Pittsburgh, first time ever

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Speaker 1: that Texas Longhorns will begin a season ranked number one,

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Speaker 1: but in another first, they'll be an underdog, and their

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Speaker 1: season opener at Ohio State, who in the AP preseason

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Speaker 1: Poulo's ranked third, just behind Penn State. Buck Guys are second,

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Speaker 1: and the coaches Paul third. Round Tennis and Cincinnati womens

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Speaker 1: for top Seedionic Center and Americans Taylor Fitz and Francis

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Speaker 1: Tiafo Tommy Paul lost women's top seed are into Stabalanka

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Speaker 1: beat Emma rad Acconoty when a third said tiebreak, just

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Speaker 1: one of her last sixteen time break Josh dashehead Bloomberg

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Speaker 1: Sports Karen.

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Speaker 2: Nabe stay with us more from Bloomberg day Break coming

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Speaker 2: up after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app.

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Speaker 10: This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager with a tariff truce between

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Speaker 3: the US and China may be extended another ninety days,

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Speaker 3: but plenty of tension points remain, not the least of

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Speaker 3: which is access to US chips, and Bloomberg News has

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Speaker 3: learned China is now urging its local companies to avoid

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Speaker 3: using Nvidia's H twenty processor, just as the Trump administration

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Speaker 3: has been pushing to turn sales of those chips in

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Speaker 3: China to a government windfall. For more on this, we're

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Speaker 3: joined by Bloomberg's Critty Gupta Cretty.

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Speaker 1: Good morning.

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Speaker 3: What more do we know about this reported directive from

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Speaker 3: the Chinese government?

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Speaker 12: Well, Nathan, good morning. This is an ongoing issue and

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Speaker 12: one that has been a source of tension between the

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Speaker 12: United States and China for some time. What we do

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Speaker 12: know is that theres were letters that were not really

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Speaker 12: a directive, but more of guidance by some of the

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Speaker 12: regulators and the authorities in China towards not only various

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Speaker 12: government departments that may have a dependence on these kind

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Speaker 12: of chips, but also smaller businesses as well that may

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Speaker 12: be looking to grow and grow their dependence specifically on

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Speaker 12: those American chips. Again, these were letters deployed a couple

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Speaker 12: of months ago that have now kind of made it

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Speaker 12: to the surface, but I think it speaks to this

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Speaker 12: broader point of the US and China, not only the

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Speaker 12: trade tensions, but also how competitive China can be when

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Speaker 12: it comes to not only the chip space, but the

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Speaker 12: AI space as well. And this is something that a

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Speaker 12: theme that we explored earlier this year with a Deep

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Speaker 12: Seat conversation. Suddenly the market got very scared of the

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Speaker 12: idea that actually there could be an alternate offering from China.

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Speaker 12: And that's exactly where the fear lies when it comes

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Speaker 12: to these H twenty chips and Nvidia in that if

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Speaker 12: you start to lower your dependence from China, which is

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Speaker 12: a major kind of revenue contributor for Nvidia's bottom line,

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Speaker 12: does that mean China has an alternative And that's really

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Speaker 12: the question that's circulating at the moment.

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Speaker 3: And of course this comes at a time critty when

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Speaker 3: in Nvidia has openly said they're trying to recoup billions

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Speaker 3: in revenue that they've lost in the Chinese market. They

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Speaker 3: are really trying to get back into that market. What

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Speaker 3: could this mean for in Nvidia and AMD if these

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Speaker 3: if this guidance goes through for.

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Speaker 12: Them, well, contest for a global audience. Ninety five percent

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Speaker 12: of the market is dominated by Nvidia, the other five

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Speaker 12: percent is about AMD, and the remaining players have a

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Speaker 12: marginal kind of piece of that pie. What it means

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Speaker 12: is that on Friday we had heard that Nvidia had

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Speaker 12: gotten those export line licenses with the caveat of having

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Speaker 12: to pay the fifteen percent revenues right back to the

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Speaker 12: US government. So it's very clear that they do need

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Speaker 12: that exposure, and Jensen Wong has been quite vocal about

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Speaker 12: his desire to not just be someone that caters to

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Speaker 12: one market or another, not just catering to the hyperscalers,

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Speaker 12: the Apples and Microsoft's the kind of biggest tech players

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Speaker 12: of the world, but really diversifying into a variety of industries,

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Speaker 12: things like medical equipment, things like smaller companies that really

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Speaker 12: need to not only use the chips but are able

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Speaker 12: to kind of help with Nvidia's revenue basis. Well, we

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Speaker 12: are not there yet, and that's where Nvidia really finds

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Speaker 12: a little bit of vulnerability when it comes to the

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Speaker 12: Chinese market. Ultimately the fifteen percent they're going to have

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Speaker 12: to pay for the US government. I thought another piece

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Speaker 12: of this is we've been talking about the H twenty chip,

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Speaker 12: which is kind of a watered down version that has

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Speaker 12: been specifically created under the Biden administration by the way

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Speaker 12: to cater to a Chinese customer, but isn't really using

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Speaker 12: as high tech of the technology for again Chinese military,

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Speaker 12: Chinese technology, et cetera. And Video's Blackwell chip is the

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Speaker 12: far superior technology. And now it looks like Donald Trump

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Speaker 12: is up thinking about how to kind of utilize that

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Speaker 12: American technology and where it needs to be protected and

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Speaker 12: where it needs to be deployed. So that's another angle

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Speaker 12: to be thinking about. Friend Video.

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Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories

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Speaker 3: And I'm Nathan Hager. Join us again tomorrow morning for

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