Trump Accuses Xi of ‘Conspiring Against US’ With Putin, Kim; Global Bond Selloff Deepens

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 this morning in China, where President Shi
Jinping is asserting his country's power and growing influence with
a once a decade military parade. The event marks the
first public appearance among She, Russian President Vladimir Putin, and
North Koreas Kim Jong un. Speaking through an interpreter, President
she said China aims to stand self reliant, that his
country remains unshaken by threats.
The Chinese nation is the great nation that is never
intimidated by any bullies, sang, and always values any parents
ahead in a past'm faced with critical struggles, pitching bud
and evil, light and darkness, progress and reaction to Chinese
people together to defy the enemy.
Chinese President Shi Jinping spoke through an interpreter thereafter. Russia's
energy giant gaz Prom said it signed a legally binding
agreement to build a major gas pipeline to China through Mongolia.
On social media, Nathan, President Trump is responding to China's
military demonstration, writing quote, please give my warmest regards to
Vladimir Putin and Kim Jong Un, as you conspire against
the United States of America. The President did not elaborate
on his accusation. President Trump recently told her reporters in
the Oval Office that the parade did not pose a
threat to the US power and publicly expressed confidence China
would not aim its military at the US. But Bloomberg
Stephen Engel is in Beijing and says the message from
China is clear.
This is the eightieth anniversary of the victory of World
War Two that China really wants to tell the West
that yes, China contributed to that victory over the Japanese
as well as the Nazis in Europe to probably a
lesser extent. But again, it's also a great chance for
China to roll out its latest modern weaponry.
Bloomberg Stephen Engel is reporting from Tiannemun Square, where the
parade took place.
Well back here in the US, Karen, the focus is
on tariffs. President Trump says he's going to ask the
Supreme Court for an expedited ruling to overturn a federal
court decision that many of his tariffs were illegally imposed.
President says it's essential to keep his trade policy in tact,
saying it would be a devastation for our country. In
his words, if the appeals court rulings left in place.
The US Court of Appeals for the Federal Circuit ruled
President Trump wrongfully invoked an emergency law for the tariffs
he imposed on imports from dozens of trading partners.
Let's turn to the FED now, Nathan and Treasury Secretary
Scot Besson is planning to interview candidates this Friday to
replace j. Powell as Federal Reserve chair The Wall Street Journal,
says Bess, and we'll talk to candidates either in person
or by video conference, with eleven people in the running.
For the role.
Robert Kaplan, vice chairman at Goldman Sachs and former Dallas
FED president, says it's to be expected.
Jay Pal's term as chairman ends in May, and so
it makes sense that they should start the interview process.
I think the main thing for the leader, the next
leader of the Fed has to be somebody who has
strong grounding and economics and can make independent judgments about
the economy.
Robert Kaplan was speaking exclusively to Bloomberg from the Goldman
sax Asia Leaders Conference in Hong Kong, and we.
Have an update Karen on President Trump's moved to oust
FED Governor Lisa Cook. Her lawyer says the President's actions
are based on nothing more than cut and paced allegations
of mortgage fraud in social media posts. The lawyer argues
the president lacks valid grounds to fire Cook for cause
that she did not commit fraud. Cook's lawyers are seeking
a temporary ruling to preserve the status quo and allow
her to continue performing her.
Duties while the legal fight goes forward.
Let's turn to the markets now. When the global bond
is sell off, Nathan, the yield on thirty US treasuries
rose close to five percent, and long dated European and
Japanese bond yields also rose, which appans twenty year note
climbing to its highest level since nineteen ninety nine. Eric Lanergen,
discretionary macro headed Calibrat Partners, tells Bloomberg he's concerned about
the slump in long bonds.
We're starting to get something approximating panic. A lot of
this has got to do with bomb markets breaking through
levels and the market being de anchored in terms of
how to price them.
I think there's two things to be aware of.
One is that the prevailing narratives really don't add ups right.
So most of the narrative is about public sector debt
levels and debt issuance, and that really doesn't stack up
because if you look at this, it's a global phenomenon,
and yet the public sector debt issues is into global phenomenon.
Now.
Something has changed in Japan, however, and I think that
has kind of been the catalyst for very considerable levels
of contagion. What's changed in Japan has been inflation.
Eric Lanergin with Calibrat Partners as traders are also contending
with the range of concerns from public debt, inflation, tariffs,
and an assault on federal reserve independence.
In Hong Kong, Karen Bloomberg News is reporting that authorities
are probing allegations of insider trading involving at least two
individuals at the Stock exchange and the city's financial regulator,
as well as brokers and social media influencers. Authorities are
investigating if regulatory staff tipped off traders and others upcoming
announcements involving dozens of listed companies. Sources tell us the
probes have been ongoing for months, with unexplained price spikes
having long been a source of concern in Hong Kong.
In Company News, Nathan a major win for tech giant Google.
My federal judge ruled yesterday Google does not have to
sell its popular Chrome web browser. Mandeep seeing a Bloomberg Intelligence,
says the decision was surprising.
Jod Matta was in favor of divesting Chrome, which is
the key asset here that everyone is looking at, and
in this case, I think the ruling clearly states that
they're not required to diverse Schrome. At the same time,
there won't be any exclusive contracts, so that means the
Google Apple thing won't be at least allowed anymore.
Bloomers mand Deep saying says Google is required to share
online search data with rivals and cannot dictate that device
makers take all its apps to access the Google Play
Store on Android. In a statement, Google praise the judgment
for recognizing how AI has changed this search industry, but
so the company continues to disagree with an earlier ruling
that it monopolizes online search and checking shares of Google
this morning, they are up almost six percent.
Elsewhere in big tech, Karen, Meta Platforms has poached more
AI talent from Apple. The Iphonemaker's lead AI researcher, John Jong,
has departed the company to join Meta's competing effort, the
Meta Robotics studio. Bloomberg News has learned that three more
AI researchers are also leaving the Iphonemaker's Large Language Models team.
Apple shares in the pre market are higher by two
point eight percent.
Well back on Wall Street, Nathan and James's Street made
more trading revenue in the second quarter than any Wall
Street bank in history. Bloomberg has learned the firm netted
ten ten point one billion dollars in trading, more then
double that figure from a year earlier. It pushes Jane
Street's first half trading revenue to an all time high
of seventeen point three billion dollars. Time now for look
at some of the other stories making news in New
York and around the world, and for that we're joined
by Bloomberg's Michael Maher.
Michael, good morning, Good morning, Karen. The White House has
its eye on Chicago for its next deployment of federal
law enforcement. Even though a federal judge just ruled the
Los Angeles deployment back in June was illegal. President Trump
says he is expanding his crime crackdown and will soon
send the National Guard into Chicago.
Well, we're going in.
I didn't say when we're going in.
Illinois Governor JB. Pritzkers says, though Chicago does not want
troops on our streets and says President Trump just wants power.
Shifting fact from fiction has been increasingly difficult because Donald
Trump's administration is not working in coordination with the City
of Chicago. This comes after a violent Labor Day weekend
in Chicago, at least fifty eight people shot, eight people killed. Still,
local officials say violent crime is down nearly twenty two
percent this year. President Trump says that US Space Command
will be located in Alabama. It reverses a decision by
former President Joe Biden's administration to keep it in Colorado.
The House Oversight Committee says thousands of records from the
Justice Department on the Jeffrey Epstein case have been released.
Hours before the release, the committee met with some of
Epstein's victims. Republican Congressman Thomas Massey says things will change
this morning when.
We have the survivors testifying in public, some of whom
have never spoken publicly, and they've already met with the
oversight committee in owners allegedly a very emotional meeting. And
that's all behind closed stores. But it's going to be
open to the public.
However, House Speaker Mike Johnson is still blocking a vote
on any full release of the Epstein file, citing victim privacy.
Jim Walden, an independent candidate in New York City's mayoral race,
announced that he was suspending his campaign. Walden is urging
his fellow candidates to unite against the Democratic primary winner,
so around Memdani. According to Walden, Memdannie, a Democratic Socialist,
would represent a trojan horse taking over city Hall, adding
that time was slipping away for an alternative option to
gain momentum in the crowded field. Global News twenty four
hours a day and whenever you want it with the
Bloomberg News. Now, I'm Michael Barn. This is Bloomberg Heart.
Thanks Michael all time now for our Bloomberg Sports updating.
We how do we bring in John Stanchoward.
As Darren at the three team race in the Al
East in All three one last night Toronto, twelve to
nine in Cincinnati, George Bringer Homer t twice, the Yankees
seven to one at Houston Jazz Chisholm Homer twice, and
the Red Sox with eighteen hits eleven to seven over Cleveland.
The Blue Jays lead the Yankees and Red Sox by
two and a half games. The US Open, Novak Djokovic
a four stead victory over the American Taylor Fritz Djokovic
into the Grand Slam semifinal for the fifty third time.
He'll play Carlos al KaAZ. That's a Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up
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Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Daybreak.
Good morning on Nathan Hager. China has reasserted itself on
the global stage with a massive display of firepower, with
the leaders of Russia and North Korea by his side.
President Shijin Pink said his country does not fear power
or intimidation, as he oversaw a once in a decade
military parade through Tininman Square for more. Joined by Bloomberg
News Chief Asia correspondent Rosalind Mathieson joining us this morning
from Singapore and roz to see the image of a
president she side by side with Vladimir Putin and Kim
Jong onun. What is the message that she is sending
to the world. Good morning, Good morning.
Well, certainly these parades are always about optics and projection,
and this one was no different.
A large military presence, quite.
A few interesting weapons on display, some more modern versions
of weapons. Nothing to startling, but it's all about the
pageantry and who's attending.
And see jimping in the minute, as.
You say, projecting power both internally and externally. So sending
a message at home that he's very much a strong leader.
He's in charge.
Of course, that's important for his standing at home at
a time the economy has still got some challenges domestically,
but also sending a message abroad that China, alongside other countries,
are increasingly looking to form these alternate power blocks to
the Western led global order. And certainly you've saw that
early in the week with the meeting of the Shanghai
Cooperation Organization. You've seen it with bricks and so on
and with the leaders who were there alongside him, particularly
the leaders of Russia and North Korea, but you also
had newcomers who were attending Iran, Cuba and others, and
some South Asia and Southeast Asian leaders who were there,
so certainly demonstrating to the world that Cgping is very
much in charge at home and abroad.
Well, we certainly saw a pointed reaction from President Trump.
Though he wasn't mentioned by name during President G's speech,
the President said on social media that he basically accused
the three of conspiring against the US. Where does this
position China when it comes to the United States?
Now, Yeah, it was interesting to see that Donald Trump
making that slightly pointed remark about giving warm regards even
as you conspire against the United States of America.
He didn't really elaborate on that.
But also, you know, he was saying earlier in the
day that China doesn't pose any kind of serious threat
to the US from where he from where he sits,
and perhaps, you know, having had his own military parade
dealing in the year, he might be looking with a
little bit of envy at just exactly what was on
display in China today. But it's a message that even
as the US and China both have an incentive to
try and keep you know, their ties on a better footing,
and certainly the question of whether there's going to be
a meeting between their leaders this year, that there are
a lot of underlying tensions between these two big powers,
China and the US, not just on the trade side
and the investment and business side, but also on the
geopolitical and power side. And you know, that was very
much an unwritten message coming from this parade. And certainly
you know, as you say, Sydney Ping didn't name check
Donald Trump with the US in his comments, but it
was clear.
That there was a nod there in some of the
things he was saying.
Just thirty seconds left, Rose, But where does this leave
matters like the trade pause between the US and China
and the war in Ukraine. To see Putin and She
once again together with this strong friendship that they've talked
about in the past, Well, it's a lot.
That's very uncertain about where Ukraine goes from here. I mean,
Donald Trump seemed to be thinking that he'd managed to
get the leaders of Russian and Ukraine to meet, sometimes
seen to discuss directly a solution to Russia's war there,
and that doesn't seem to be happening. Vladimir Putin doesn't
seem particularly inclined to go there, and so the questions
is Donald Trump try and turn the screws on Russia
further on energy, for example, to try and get that
to happen. But a real message obviously that North Korea,
which has supported Russia heavily in the war China to
some extent, perhaps tacitly or not, that there's not a
lot of energy necessarily in all of that to be
finding a solution to Russia's war in Ukraine, and a
message to Donald Trump perhaps.
And all of that.
So it feels in a way like all of this
is back in Donald Trump's court in terms of whether
he will be willing to pressure let me put in directly.
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