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

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 4: Karen, we begin with the latest developments on the trade

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Speaker 4: front between the US and China. Treasury Secretary Scott Besson

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Speaker 4: is proposing a longer pause on high tariffs on Chinese

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Speaker 4: goods that would be in return for Beijing putting off

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Speaker 4: its recently announced plan to titan limits on critical rare earths.

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Speaker 4: As heard live here on Bloomberg Radio, Bessin spoke at

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Speaker 4: a Washington news conference.

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Speaker 5: Right now, we are currently in a ninety day role

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Speaker 5: on the tariffs, So is it possible that we could

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Speaker 5: go to a longer role in return for a delay perhaps,

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Speaker 5: But all that's going to be negotiated in the coming weeks.

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Speaker 4: And Treasury Secretary Scott Besson says there's a very good

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Speaker 4: chance travels to Asia to meet with his Chinese counterpart,

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Speaker 4: Vice Premier Harley Feng.

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Speaker 6: And let's turn to a Bloomberg exclusive.

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Speaker 3: Now, Nathan sources age Chinese hackers accessed classified UK computer

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Speaker 3: systems for more than a decade. We go to London

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Speaker 3: and get the details. It's Bloomberg's James Wilcock, Good Morning, James.

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Speaker 7: Good morning, Karen and Nathan. Politicians in Westminster are locked

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Speaker 7: in a very public row about if China should be

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Speaker 7: designated a threat to national security now. Former British security

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Speaker 7: officials tell Bloomberg exclusively that hackers from China have been

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Speaker 7: successfully accessing classified UK data for a decade. It includes

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Speaker 7: private communications, diplomatic communicays, and policy documents. Chinese officials have

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Speaker 7: not responded to Bloomberg's request for comments, but the story

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Speaker 7: is part of a broader debate about cybersecurity global risks,

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Speaker 7: with USIT firm f five blooming Chinese hackers for a

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Speaker 7: recent hack that compromises many Fortune five hundred companies in London.

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Speaker 7: James Wilcock, Bloomberg RADIOIM, James, thank you.

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Speaker 4: And CEOs around the world, including Apple's Tim Cook, are

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Speaker 4: expected to meet with top trade Chinese negotiator Hulley Fang

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Speaker 4: and Beijing this week.

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Speaker 2: Source to say.

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Speaker 4: The executives are part of an advisory board for Singhwa

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Speaker 4: University School of Economics and Management.

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Speaker 2: That typically gathers every year.

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Speaker 4: The sitdown comes at a critical time in bilateral ties,

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Speaker 4: with the US calling for a response from other nations

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Speaker 4: to China's curbs on rare earths that were announced last week.

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Speaker 6: Let's get the latest now, Nathan.

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Speaker 3: On the government shutdown, The White House has promised to

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Speaker 3: use the spending fight on Capitol Hill to layoff thousands

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Speaker 3: of federal workers, but a federal judge in San Francisco

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Speaker 3: has put those plans on whole. Judge Susan Ilston's decision

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Speaker 3: means more than thirty federal agencies cannot send new layoff

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Speaker 3: notices if they involve programs that affect unionized workers. About

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Speaker 3: forty one hundred employees have received pink slips so far.

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Speaker 3: The ruling came hours after White House Budget Director Russell

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Speaker 3: Vote said the layoffs could reach ten thousand.

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Speaker 8: Think of Green New Deal programs at the Department of Energy.

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Speaker 8: I think the Minority Business Development Agency at Commerce that

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Speaker 8: divvy's up business grants on the basis of race. Think

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Speaker 8: environmental justice at EPA and.

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Speaker 3: Mine House A budget director, rest Vote spoke on that

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Speaker 3: Charlie Kirk Show. Judge Elson says it appears the Trump

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Speaker 3: administration is taking advantage of the shutdown to assume all

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Speaker 3: bets are off and the laws don't.

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Speaker 6: Apply to them. She set a hearing for October twenty eighth.

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Speaker 4: Well Meanwhile, Karen, President Trump has confirmed a report in

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Speaker 4: The New York Times that he's authorized covert CIA action

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Speaker 4: in Venezuela to ramp up pressure on President Nicholas Maduro.

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Speaker 9: I authorized speak for two reasons, Julie. Number one, they

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Speaker 9: have emptied their prisons into the United States of America.

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Speaker 9: They came in through the well, they came in through

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Speaker 9: the border. They came in because we had an open

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Speaker 9: border policy.

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Speaker 4: And speaking in the Oval Office, the President said he

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Speaker 4: also authorized the operation because a lot of drugs are

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Speaker 4: coming in from Venezuela. The US has already hit a

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Speaker 4: half dozen boats in the Southern Caribbean that the administration

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Speaker 4: says we're carrying drugs. The Times report says the CIA

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Speaker 4: is now authorized to carry out lethal operations in Venezuela.

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Speaker 4: Asked if agents have the authority to take out Maduro,

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Speaker 4: President Trump said that would be a ridiculous question to answer, well, Nathan.

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Speaker 3: President Trump says he might go to the Supreme Court

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Speaker 3: to personally watch oral arguments on whether the bulk of

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Speaker 3: his tariffs past legal muster. The High Court will hear

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Speaker 3: arguments next month over whether import taxes imposed by Trump

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Speaker 3: or legal. With Trump saying the tariffs are authorized under

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Speaker 3: the nineteen seventy seven International Emergency Economic Powers Act, the

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Speaker 3: US Court of Appeals for the Federal Circuit ruled that

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Speaker 3: the law does not authorize such a sweeping array of tariffs.

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Speaker 4: All those arguments aren't expected till next month, Karen, But

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Speaker 4: we are less than two weeks away from the next

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Speaker 4: FED rate decision, and traders are ramping up their bets

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Speaker 4: on more cuts. Bloomberg's John Tucker is here with more.

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Speaker 4: Good morning John, Good morning Nathan. This is the activity

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Speaker 4: in the options, Marcus. It shows a build up in

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Speaker 4: positioning for a supersize half point rate reduction, either when

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Speaker 4: the Fed meets later this month or in December. And

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Speaker 4: that's more than two quarter point cuts now priced into

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Speaker 4: interest rate swaps. The week's long government shutdown, let's delay

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Speaker 4: the release of key data on employment and inflation, obviously,

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Speaker 4: but when we do finally get it, the traders expect

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Speaker 4: a deluge of weakness. And those renewed trade tensions between

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Speaker 4: the US and China appear to have provided further incentive

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Speaker 4: for traders to hedge for the possibility of half point moves.

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Speaker 4: You know, Yorkkom John Tucker, Bloomberg Radio. Well, Karen, let's

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Speaker 4: turn to markets now. Global stocks are on the rise,

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Speaker 4: strong tech earnings are shifting the focus from the lingering

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Speaker 4: US China trade threat. Keith Lerner, chief investment officer at Truist,

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Speaker 4: is still bullish on tech.

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Speaker 2: You know, this is not a bubblin of view.

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Speaker 10: We're up about twenty five percent in the technology sector

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Speaker 10: over the last year. During the bubble period we were

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Speaker 10: up more than one hundred percent, and the earning power

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Speaker 10: today is a lot different than them. But there's a

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Speaker 10: lot of actually still a lot of concern as opposed

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Speaker 10: to just row optimism, which if you look at that

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Speaker 10: at the market making new highs, you would expect a

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Speaker 10: bit more optimism.

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Speaker 4: It's True's chief investment officer, Keith Lerner. The Nasdaq is

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Speaker 4: up more than seventeen percent this year.

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Speaker 3: Another day, Nathan, and another record for gold right now comes.

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Speaker 3: Gold is at four two hundred and forty eight dollars

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Speaker 3: in ounce. Earlier this week, JP Morgan Chases Jamie Diamond

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Speaker 3: said gold could easily go to five thousand dollars.

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Speaker 6: Environments like this.

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Speaker 4: And another company's benefiting from the AI boom. Caare in

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Speaker 4: Taiwan's semiconductor manufacturing is hiking its projection for twenty twenty

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Speaker 4: five revenue growth to the mid thirty percent range.

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Speaker 2: We get more from Bloomberg's Tom mackenzie.

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Speaker 11: I think it's worth emphasizing at a time when people

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Speaker 11: are questioning whether or not we are in the middle

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Speaker 11: of an AI bubble, the fact that TSMC has come

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Speaker 11: through with a record set of profits and not for

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Speaker 11: the first time, but this is a new record almost

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Speaker 11: forty percent jump in quarterly profits for the company that

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Speaker 11: is the biggest foundry, so the maker that actually produces

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Speaker 11: the chips that are designed by the likes of Nvidia

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Speaker 11: an Apple.

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Speaker 4: Bloomberg's Tom McKenzie says the results underscore HOWSMC remains one

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Speaker 4: of the bigger beneficiaries of a spending spree on AI

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Speaker 4: infrastructure that's expected to cross the trillion dollar mark in

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Speaker 4: coming years.

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Speaker 3: And shares of Nesley they're surging this morning, Nathan up

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Speaker 3: more than eight percent. The food maker posted a stronger

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Speaker 3: than expected increase in quarterly sales and also announced plans

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Speaker 3: to slash sixteen thousand jobs just weeks after replacing its

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Speaker 3: Chief Executive Officer. Time now for look at some of

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Speaker 3: the other stories making news in New York and around

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Speaker 3: the world.

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Speaker 6: And for that we're joined by Bloomberg's Michael Barr.

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Speaker 2: Michael, good Morning, Good morning, Karen.

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Speaker 12: President Donald Trump said he terminated the sixteen billion dollar

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Speaker 12: Gateway rail tunnel under the Hudson River, linking New York

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Speaker 12: City and New Jersey. The President spoke during a press

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Speaker 12: conference Wednesday as tense negotiations over the federal government shutdown

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Speaker 12: drag on.

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Speaker 9: Not only jobs. I mean the project in Manhattan, project

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Speaker 9: in New York. It's billions and billions of dollars at

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Speaker 9: Humor has worked twenty years to get it's terminated.

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Speaker 12: Senator Schumer says the Gateway project is one of the

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Speaker 12: most important infrastructure projects in America and called President Trump's

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Speaker 12: move vindictive and reckless. New Jersey Senator Andy Kim agrees.

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Speaker 13: I hope the American people see this. We have a

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Speaker 13: president that has unhinged, somebody that is so clearly not

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Speaker 13: thinking about what's best for this country, and this is

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Speaker 13: a perfect example of his willingness to hurt American families

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Speaker 13: for his own political benefit.

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Speaker 12: Senator Kim made his comments In an online media post,

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Speaker 12: President Trump said his administration would look to San Francisco

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Speaker 12: as the next target of his federal crime crackdown. President

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Speaker 12: Trump's comments come as San Francisco's crime rates have fallen

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Speaker 12: in recent months, with the city on track to see

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Speaker 12: the fewest homicide since the nineteen fifties. Israel threatened to

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Speaker 12: resume attacks on Gaza if Amas does not go through

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Speaker 12: with all the steps outlined in President Trump's peace plan.

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Speaker 12: Hamas returned all twenty live hostages to Israel on Monday

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Speaker 12: and has sent the remains of seven deceased hostages so far,

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Speaker 12: leaving twenty one unaccounted for. Tonight, the top three candidates

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Speaker 12: in New York City's mayoral race will take to the

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Speaker 12: debate stage Queen's Assemblyman's around Memdani running as a Democrat,

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Speaker 12: former New York Governor Andrew Cuomo running as an independent,

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Speaker 12: and Curtis Sliwa running as a Republican. Sliwa said that

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Speaker 12: he's trying to distinguish himself from his opponents, saying that

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Speaker 12: Mamdani is a democratic socialist and that if he wins,

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Speaker 12: we'll see a rise of more democratic socialist candidates running

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Speaker 12: for elected office. Around the country, global news twenty four

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Speaker 12: hours a day and whenever you want it with Bloomberg

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Speaker 12: News Now. Michael Barm This is Bloomberg Karen.

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Speaker 2: Thanks Michael.

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Speaker 3: Time now for our Bloomberg Sports update, and for them,

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Speaker 3: we bring in John Stashauer.

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Speaker 2: Grans getting on.

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Speaker 14: The americ leag Championship Series began Toronto with two wins

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Speaker 14: by Seattle. The Mariners back home, took an early lead

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Speaker 14: in Game three, but the Blue Jays scored the next

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Speaker 14: twelve runs and they won, going away thirteen to four.

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Speaker 14: Toronto had eighteen hits, hit four home runs. They'll play

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Speaker 14: Game four tonight ahead of Game three and the NLCS

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Speaker 14: in LA. The Dodgers lead the Brewers two games to now,

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Speaker 14: and the NBA season begins next week. And Russell Westbrook

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Speaker 14: just got a job. His eighteenth season will be with Sacramento.

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Speaker 14: That's your Bloomberg Sports update.

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Speaker 3: Stay with us. More from Bloomberg day Break coming up

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Speaker 3: 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. This is Bloomberg Daybreak.

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

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Speaker 4: After days of rising trade tensions between the US and China,

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Speaker 4: the US maybe eyeing an off ramp. Treasury Secretary Scott

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Speaker 4: Besson says the US could pause extend its pause on

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Speaker 4: one hundred percent tariffs if China puts its plans for

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Speaker 4: rare earth export controls on hold.

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Speaker 2: Besson says those restrictions go too far.

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Speaker 5: If China wants to be an unreliable partner to the world,

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Speaker 5: then the world will have to decouple. The world does

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Speaker 5: not want to decouple.

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Speaker 6: We want to de risk.

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Speaker 4: That was Treasury Secretary Scott Bessont at a Washington news

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Speaker 4: conference heard live on Bloomberg Radio this morning. We're joined

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Speaker 4: by Bloomberg News Chief Asia correspondent Rosalind Matheson and Roz

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Speaker 4: We've been talking for days about the positioning ahead of

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Speaker 4: possible talks at the end of the month between Presidents

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Speaker 4: Trump and She. Could this offer from a Secretary Besson

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Speaker 4: be that off ramp from these tensions?

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Speaker 2: Good morning, Good morning.

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Speaker 15: Yeah, it will be interesting to see how this is

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Speaker 15: responded to, because there's been a rolling series of truces

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Speaker 15: of ninety days in Scott Bessont, as you were saying,

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Speaker 15: is floating the idea of a longer extension if China

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Speaker 15: backs down on some of its rare earth restrictions. But

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Speaker 15: rare us are really the key point of leverage that

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Speaker 15: China had in this, you know, obviously because of the

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Speaker 15: scarcity issue in the US desire to have them. And

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Speaker 15: so do you use all your leverage just to get

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Speaker 15: an extension of a trade truth or do you use

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Speaker 15: it for something more fundamental, which is a proper US

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Speaker 15: China trade deal. You know, are you willing to pull

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Speaker 15: back on some of it but not all of it

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Speaker 15: to get an extension? But if you're China, you probably

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Speaker 15: don't want to give it.

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Speaker 2: All away just for an extension.

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Speaker 15: You know, China has promised previously also to be more

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Speaker 15: fulsome with its rare earth and to open this spigot,

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Speaker 15: and hasn't necessarily done so in practice. And so for

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Speaker 15: the US also you need to ask are they going

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Speaker 15: to get something fundamental out of it? So maybe there

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Speaker 15: is a bit of a window here to at least

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Speaker 15: get an extension of the trade truth. But more broadly,

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Speaker 15: you know, China want to use its rare earth to

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Speaker 15: negotiate a proper trade deal.

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Speaker 4: To your point, we have seen extension after extension of

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Speaker 4: the tear of pause, this planned meeting between Presidents Trump

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Speaker 4: and She, is there a possibility that that could lead

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Speaker 4: to that broader trade deal that seems to have been

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Speaker 4: so elusive for the last several years.

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Speaker 15: We have seen that being the breakthrough. Previously, we've seen

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Speaker 15: it take Sieging Ping and Donald Trump to sit down,

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Speaker 15: and they have done that in different parts of the

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Speaker 15: world and emerge with the trade deal. Those trade deals

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Speaker 15: have lasted for a while but have descended generally back

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Speaker 15: after months or years, so that's no guarantee even then,

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Speaker 15: but you do have a strong personal rapport between Sieging

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Speaker 15: Ping and Donald Trump. They're both negotiators, They're both very transactional,

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Speaker 15: and in the minute it might take them meeting to

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Speaker 15: produce something. And obviously, if you are going into a

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Speaker 15: meeting that's so high stakes, as US president or the

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Speaker 15: president of China, you do kind of want to come

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Speaker 15: out of it with something and you want to be

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Speaker 15: sure that you're going to be able to do so.

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Speaker 15: So it does seem as at this point they're all

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Speaker 15: leaning on the idea that See and Trump need to

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Speaker 15: get in a room and that's where the magic's going

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Speaker 15: to happen.

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Speaker 2: Just thirty seconds left.

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Speaker 4: Roswork's acting global CEOs to meet with the top trade

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Speaker 4: negotiator from China this week.

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Speaker 2: Could that have any impact?

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Speaker 15: Well, that would be interesting to see the messaging that

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Speaker 15: comes from that. I mean, Scott Besson has also said

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Speaker 15: that he intends to meet with Helefang, who's the Chinese

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Speaker 15: Vice Premier, before any meeting between Siegingping and Donald Trump.

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Speaker 15: And you know, it does show at least that there

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Speaker 15: are various avenues of communication to get messaging between China

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Speaker 15: and the US, and these executives obviously have skin in

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Speaker 15: the game with either side an incentive to have these

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Speaker 15: trade tensions ease, and so the messaging from that would

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Speaker 15: be very interesting to watch.

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