Trump to Meet Putin in Alaska; Nvidia & AMD to Pay US 15% of China Chip Sales

Bloomberg Audio Studios, podcasts, radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Karen, we begin with the highly anticipated summit coming up
at the end of the week. President Trump is preparing
to meet with Russian President Vladimir Putin in Alaska on
Friday to discuss ending the war in Ukraine. NATO Secretary
General Mark Ruta says the meeting could be a turning point.
He clearly is putting pressure on Putin. Next Friday will
be important because it will be about testing Putin how
serious he is on bring this terrible war.
To an end.
Speaking on ABC's This Week, NATO's Secretary General Mark Rutters
said the summit could open the door to negotiations about
Ukrainian territory along with security guarantees. Ukrainian Ambassador to the
US Oksana Markarova says her President Vladimir Zelenski is willing
to talk.
We all understand the reality on the ground and we
are ready to discuss how to end this warrant. That's
why ceasefire as a step has always been so important.
At the same time, Ukrainian Ambassador Oksana, markarovtel CBS has
faced the Nation. The Ukrainian constitution does not allow it
to give up territory. Face the Nation and ABC's This
Week can be heard every Sunday on Bloomberg Radio.
Well Nathan, Bloomberg News has learned European nations want to
talk to President Trump ahead of his meeting with Putin,
and we get more on this developing story with Bloomberg.
So you in Pots in London and you and good morning.
What's the latest, Karen Nathan.
It's been a weekend of intense diplomacy between US, Ukrainian
and European officials, including meetings between Vice President Jed Evans
and the British Foreign Secretary. Now Bloomberg understands that European
leaders are keen to speak to the US President before
Friday's summit with Vadimir Putin. Along with Ukraine, they'd like
to see a ceasefire with the freezing of the current
frontline as a first step, along with more ECON pressure
on Moscow. Whether President Trump intends to pick up the
phone still remains to be seen. In London.
I'm Utnepots Bloomberg Radio.
All right, you and thank you Along with that summit
on Friday. The trade truce between the US and China
is set to expire tomorrow. President Trump has not said
yet whether he'll extend it. But before that decision, in
Vidia and Advanced micro Devices have agreed to pay fifteen
percent of their revenues from AI chip sales in China
to the US government in a deal to secure export
licenses to the country. We get more from Bloomberg's midmen
Loo in Hong Kong.
This is something that is quite unprecedented. No US companies
had done such a thing before. But it does sort
of reflect the pattern that we have seen so far
in the top administration, with the President asking for certain
things from companies, such as domestic investments in exchange for
things like lowering or exempting some of these companies from US.
Terris Bloomberg's Minmnlow says Beijing is unlikely to warm to
the idea of a chip tax, and in the pre
market and Vidia shares are lower by more than one percent.
AMD is down two and a half percent.
Mean Well, Nathan, President Trump says he hopes China massively
steps up its purchases of American soybeans. On a post
on social media. The President said, quote, I hope China
will quickly quadruple it's soybean orders. We get more from
Bloomberg Global Trade editor Brendan Murray.
The interesting thing here is that US farmers are looking
out at their fields at the moment, they're not quite
ready to be harvested, but they're looking at the price
of soybeans, going wow, those have really been flat for
the past twelve to eighteen months. And so perhaps Trump
is trying to accomplish two things here, and that's extend
an olive branch to China to say, hey, we've got
soybeans coming for you, a surplus of them at a
low price, and at the same time try to stoke
the price of soybeans for a key constituents.
Of his throughout the midwest of the country.
Bloomberg's Brandan Murray says President Trump also think Chinese leader
Shijhin Ping in the post without saying why. Soybean futures
in chicag rose back above ten dollars a bushel for
the first time in a week after the post, and.
The price of lithium is spiking this morning. Karen, that's
after battery giant contemporary Amprex Technology CTL halted operations at
a major Chinese mind that spurring speculation Beijing might move
to suspend other projects as it tackles over capacity across
the Chinese economy.
Later this morning, Nathan President Trump plans to put his
focus squarely on the nation's capital. He scheduled a news
conference from the White House on ending violent crime in DC.
In a social media posts, the President said the plan
will include moving homeless people out of the city. Washington,
d C. Mayor Muriel Bowser says the president has the
power to step up law enforcement in the federal city,
but she says it's not the best use of federal resources.
This is what I know.
We are not experiencing a crime spike.
We do know that this task force has been focused
on quality of life issues and speaking on MSNBC, Mayor
Bowser's at four hundred and fifty federal officers spread across
the city on Saturday night only seized a few handguns
and made traffic arrests. The President's news conference is set
for ten am Wall Street time, and you can hear
it live on Bloomberg Radio or watch on the Bloomberg
podcast page on YouTube.
Oh ahead of that Karen. Let's turn to the markets now.
Futures are a little changed this morning as we kick
off the new trading week, with the Nasdaq one hundreds
trading at an all time high, the S and P
five hundreds coming off its best week since June.
Nathan Goldman Sachs is saying that US consumers will eventually
bear the brunt of tariff costs, and we get more
on that story with Bloomberg's Gina Cervetti in New York.
Goldman says US companies have so far absorbed most of
the costs of Donald Trump's tariffs, but the burden is
increasingly going to shift to consumers. The firm says consumers
in the US have absorbed and estimated twenty two percent
of tariff costs through June, but their share will rise
to sixty seven percent if recent tariffs follow the pattern
of previous levees. Goldman says, as a result, there will
be a bump to inflation for the rest of this year.
Goldman predicts a year on year core PCE reading of
three point two percent in December. That's based on an
assumption that underlying inflation net of tariffs would be two
point four percent in New York. Gina Cervetti Bloomberg Radio.
All right, Gina, thank you.
FED Governor Michelle Bowman is calling for three rate cuts
this year, starting next month. Last month, Bowman was one
of the two dissenters when the FED held rates steady.
She's also calling for reforms in community banks.
Community banks are the cornerstone of the banking and financial system,
supporting local communities and their customers. Too often, community banks
have been overlooked, with too little attention paid to longstanding
and emerging issues and industry and consumer concerns.
FED Governor Michelle Bowman made those comments over the weekend
at the Kansas Bankers Association in Colorado Springs.
And speaking of the Fed, Nathan, we have a programming
note coming up later this month. Join us for live
coverage from Jack. We'll be on the ground in Wyoming
to cover the Kansas City Fed's annual meeting and remarks
from Chair j Powell. It all begins Wednesday, August twentieth,
then finishes up with a special edition of Bloomberg Surveillance.
Tom Keen, Lisa Bromwitz said Michael McKee will all be
part of that special starting at nine am Eastern on
Friday Plus watch for special episodes of the Odd Lots podcast.
Joe Wisenthal and Tracy Alloway will be taping several conversations
from the event as well. Time now for look at
some of the other stories making news in New York
and around the world. And for that we welcome back
Michael Barr, Michael, good morning.
Good morning, Karen, he is really. Prime Minister Benjamin Ett
Yahoo defended his plan for a military sweep against the
Mas strongholds and gazip det And Yahoo calls it the
best available option for recovering hostages while safeguarding his country's
long term security. Det And Yahoo also defended his country
against what he called a global campaign of lies, pushing
back at claims of starvation on the ground in Gaza.
Now, if we had a starvation policy, no one in
Gaza would have survived after two years of war. But
our policy has been the exact opposite.
Meanwhile, Australian Prime Minister Anthony Albanisi says Australia will recognize
a Palestinian state. His remarks today come amid growing criticism
from officials in his government over suffering in Gaza. Four
Al Jazeira journalists were among five people killed Sunday when
an Israeli airstrike hit a tent in Gaza City. The
Israeli military said the target of the strike was Anas
al Scherif, a contract reporter whom the Katari Media Network
hired to cover the Israeli Hamas war. The IDF said
that al Jherif posed as a journalist and was a
member of the military wing of AMAS. Witnesses and health
officials in Gaza said the attack also killed another reporter
and two cameramen. Freelance journalist Andre Leone, coordinator of Freedom
to Report, says Gaza is facing the worst press blockout
in modern conflict.
The government keeps lying, and we see what they are doing.
They're silencing more and more voices. We cannot accept this anymore.
Meanwhile, Reporters Without Borders says Israel has killed over two
hundred journalists in Gaza since its offensive began. Continued heavy
rainfall in a half a dozen Midwest states has led
to water rescues, power outages, and road closures. The National
Weather Service has issued flood watches and mornings for parts
of Kansas, Iowa, Nebraska, Missouri, Illinois, and Wisconsin. Global news
twenty four hours a day and whenever you want it
with Bloomberg News Now Michael Barr, and this is Bloomberg.
Care all right, Malcael Barr, thank you time now for
the Bloomberg Spores update, brought to you by Flushing Bank.
And here' Sean Stashauer, John, good morning.
Good morning. Care of all the Mets losses, and they
dropped ten out of eleven back in June. They're in
the midst now of eleven law losses in twelve games.
This one stings the most. They scored in each of
the first five innings. They led five to nothing in Milwaukee.
Back came the Brewers. It was six to six at
the ninth College fly Ball deep in the night Field.
Isaac cunns.
He's done it again, his first ever, and the Brewers.
Have won their ninth street game.
But it also won twenty four their last twenty eight.
Brewers TV to call. The Mets losing streak is at seven.
They have fallen five and a half games behind the Phillies.
They're barely ahead for a wildcard. The Yankees are six
and a half out. Also, the slimmest of wildcard leads
Yanks to the Stadium lost to Houston seven to one.
Astros got home runs from Jose al Tuove and Carlos Korea.
Yanks had only three hits, none until the sixth. Then
another loss for Max Freed. In his first eleven starts,
Freed never gave up more than two runs. He's allowed
more than two in six of his last seven and can.
Go through go through spell sometimes. But to be honest,
like I just I have to be better. I just
got to be better at locating, being able to throw
and get more ground balls and haven't been able to
do it. And something I need to, you know, dive
dive into and see what adjustments I need to make.
Red Sox lost six to two in San Diego Nationals
over the Giants eight and I think Justin Verlander now
one and nine, seventh straight win for Seattle and Cal
Rawley hit his forty fifth home run Golvin Memphis came
down to two Americans and two BRIT's, falling short Scottie Scheffler,
who seems always winning, Tommy Fleetwood, who has still never
won on the PGA Tour. The playoff had us open
Champ jj spawn against Justin Rose, who won the Saint
Jude on the.
Third Extra Hole, John Stashedward Bloomberg Sports.
Karendim.
Coast to Coast on Bloomberg Radio nationwide on Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
Anticipation is building for President Trump's Alaska summit at the
end of the week with Russian President Vladimir Putin. NATO
Secretary General Mark Ruta says it could be a turning
point in the three and a half year war in Ukraine.
My absolute co fictional Friday is that this is President
Trump making sure that Putin is serious, and if he
is not, then at all stop there. If he is serious,
then from Friday onwards the process will continue.
NATO Secretary General Mark Ruta appeared on CBS's Face the
Nation Heard Sundays on Bloomberg Radio this morning, were joined
by Bloomberg New Senior Editor Bill Ferries and Bill Over
the weekend, we heard from the Secretary General saying there
could be negotiations on territory in these discussions, but how
far could those talks go without Ukraine at the table?
Good morning, Good morning.
Yeah, Ukraine not at the table, and Ukraine also saying
they are not willing to see any territory, so that's
going to be those are going to be big stumbling blocks.
That point. I think the Commist Secretary general there made
about whether Putin is serious is really kind of the
going to be the gauge here. President Trump has basically
in recent weeks been expressing a lot of frustration with
Vladimir Putin and the war continuing. This will be a
chance to see if there's a serious deal that could
be made, but it will be very hard to sort
of reach that divide between the two sides. Vladimir Putin
says he still wants to hold on to Crimea, but
more than that, he wants to hold on to these
territories in the east of Ukraine that his troops don't
even control the entirety of, so he says those are
also part of Russia. That's going to be a very
hard sell in Ukraine. So a lot of questions going
into this. It's entirely possible they don't get a deal
coming out of that.
And a lot of questions I would imagine that European
leaders have before this conversation. We're hearing that they want
to speak with President Trump before he goes face to
face with Putin at the end of the week. Is
there a sense that the US and Europe are aligned
before these discussions.
Well, you know, we know jd Vance has been meeting
with some European officials, and you're right, European officials are
largely united in terms of wanting to talk to the
US and wanting to say that the US should not
accept Russian control of Ukrainian territory. They say that would
effectively they would effectively reward Vladimir Putin for that twenty
twenty two invasion. So there seems to be a very
big difference of opinion there as well. I think the
European fear is that President Trump will reach some sort
of a deal with Putin that leaves all of the
rest of the parties to the conflict out, and then
Europe will have to decide whether to go along with
that deal or whether to continue, possible without any further
US support in the conflict.
Before the summit on Friday, the US China trade truce
is said to expire tomorrow, and ahead of that, we're
hearing that Nvidia and Advanced micro Devices have agreed to
pay fifteen percent of their AI chip sales in China
to the US government.
How unusual is this in our last thirty seconds.
Oh, highly unusual. This is effectively a US government tax
on specific companies for selling specific products to China. It's
going to raise a lot of red flags with other
companies in and that same business is going to raise
flags with companies doing business with China. And I think
China's going to be concerned. They've already been trying to
talk companies out of buying some of those H twenty
chips from Nvidia. This may accelerate that process.
This is Bloomberg Daybreak, your morning podcast on the stories
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And I'm Nathan Hager.
Join us again tomorrow morning for all the news you
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Ray