Trump-Xi High Stakes Beijing Meeting; Iran War Enters 75th Day

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Good morning.
I'm Karen Moscow and I'm Alexis Christophers. Here are the
stories we're following today.
All Right, Alexis and President Trumps at the land in
Beijing later today for a highly anticipated summit with Chinese
leader Shi Jinping. Bloomberg's John Tucker joins us with the
very latest. John, Good morning, Yeah, Moring, Karen.
President Trump says this trip primarily is about trade, but
he'll also be talking about the war with Iran with
President she something he acknowledged it's going to be very
difficult to avoid.
He's been very nice about this, you know.
In all fairtas he gets like sixty percent.
Of his oil from Marmos and he's been I think
he's been very respectful.
We haven't been challenged by China and the challenges well.
The President is traveling with more than a dozen CEOs.
The lineup includes Elon Mosk and AD Video CEO Jens Wong,
who was a last minut of edition. Trump wants China
to ink some trade deals to buy American planes, Agriculture
and energy, and artificial intelligence discussions may also be on
the agenda. Beijing wants, on other things, a longer tariff truce,
and Chinese President Sheep may try to test the US
commitment to Taiwan and sees on any sign of wavering
from a president who doesn't necessarily like to stick to
the script. I'm John Tucker, Bloomberg Radio.
Thanks John, And as the President embarks on his China trip,
the war in Iran now enters it's seventy fifth day.
As Bloomberg Middle East reporter Jumani Breschi reports, many, including
the President, the conflict would be over by now.
One of the reasons that President Chump pushed back this
trip in the first place by I think it's six
weeks or so, was because of the conflict that was
going on in the background, and so the hope, probably
from his perspective, was that it would be all wrapped
up and ready and behind him, so that he could
approach this meeting with precision ping and address other thought
in your topics. Unfortunately, the Iran situation is still very
much a live situation. I mean, we talk about the
cease fire, even though present Chump has described it as
being in a very fragile state. Ultimately, the Strait of
Homers is still effectively closed. China so far have not
played an active role in either military operations or in diplomacy,
but in the past couple of weeks they seem to
be flexing a bit more muscle, and the expectation is
that China will call for de escalation.
Bloomberg's Jumana Borsecchi says, according to satellite images, oil shipments
from Iran's main export terminal, carg Island, appeared to have
come to a standstill over the past several days.
Well.
Alecxa's Defense secretary Pete Hegsheth returned to Capitol Hill to
defend the Pentagon's one and a half trillion dollars budget request,
and Bloomberg's Amy Morris reports from Washington.
Hagsath softened his tone from previous congressional hearings as he
defended the historic military budget request for twenty twenty seven.
House Appropriation Subcommittee ranking member Minases to Democrat Betty McCollum asked, Seth,
if the Pentagon has a plan B.
We have a plan to escalate if necessary. We have
a plan to retrograde if necessary, we have a plan
to shift assets. Certainly in this setting, we wouldn't reveal
what the next step may be.
The Pentagon's top budget official told Congress the cost of
the war has climbed to nearly twenty nine billion dollars.
That's up for billion dollars from just two weeks ago.
In Washington, Amy Morris Bloomberg Radio. Thanks Amy.
Turning to election politics now, the Democratic primary for a
key House seat in Nebraska is still too early to call.
With eighty nine.
Percent of votes counted in Nebraska's second district, political activist
Denise Powell has a lead of about two percentage points
over state Senator John Kavanaugh thirty nine percent to thirty
seven percent. Now, the winner will face Republican Brinker Harding,
who was endorsed by President Trump. The district draws national
attention because Nebraska is one of just two states that
splits its electoral votes in presidential elections. The second district
has gone to Democratic presidential candidates three out of five
times since two thousand and eight. A blue dot in
an otherwise sea of red. The seat has been held
for much of the last decade by Representative Don Bacon,
a Republican who's retiring well now.
A politics overseas on like Sis, where British Prime Minister
Kiir Starmer is clinging to power as calls grow from
his own party for him to quit. Bloomberg James Wilcock
joins us from London with the very latest James, good morning.
Good morning, Karen and Alexis. At a senior meeting of
cabinet ministers yesterday, Starmer said he wouldn't go without a fight,
but more than the fifth of his MP's and junior
ministers are now publicly calling for him to stand down
after a landslide loss in local elections last week. He
met one of his potential challengers this morning, Health Secrecy,
Where's streeting? People don't expect any fireworks today as the
King is speaking in Parliament, but the crisis in Westminster
is by no means over in London. James Wilcock, Bloomberg
Radio James Thanks.
A frenchwoman infected in the deadly hunted virus outbreak on
a cruise ship is critically ill and being treated with
an artificial lung. The outbreak has now reached eleven total
reported cases, nine of which have been confirmed. Three people
on that cruise died, including a Dutch couple that health
officials believe were the first exposed to the virus while
visiting South America. With the evacuation of all passengers and
many crew members now completed, the Envy Hondias is sailing
back to the Netherlands, where it will be cleaned and disinfected.
Well.
We turned to the markets now to Lexis, where futures
are mostly higher following yesterday's declines. On Wall Street, at
one point, the S and P five hundred was down
one percent before recouping most of its losses. JP Morgan
Chase CEO Jamie Diamond says investors appear to be overlooking
a lot of geopolitical events.
I think there's a little bit.
Too much exuberance out there, not just.
The Middle East.
It's Ukraine, Russia, still there, America, China, a lot of
these complex issues which may may not auffect the market,
but then they're issues like in flight sheinery or the
today's prit wasn't so good. So yeah, I think the
martgt's kind of exuberant and it may not be complear
to notified.
You can catch the entire conversation with JP Morgan Chase
CEO Jamie Diamond on our new streaming hub on the
Bloomberg Business app and.
Kevin Walsh is one step closer to becoming the next
Chairman of the Federal Reserve. The Senate confirmed his nomination
to the FED Board of Governors, granting him a fourteen
year term. The Senate then cleared a procedural hurdle to
pave the way for a vote on Worsh's confirmation to
succeed j Powell as chairman, which is likely to occur
later today. Bloomberg's Michael McKee has more on Warsh.
He's not going to be able to come in and
cut rates, even if he could convince the other eighteen
members of the Open Market Committee, which I'm fairly certain
he can't. The markets wouldn't let him, not with inflation
like this going continuing to rise. So he's got to
sit back and wait until there is some end of
the war and some visibility into when prices might start
coming down.
Bloomberg's Michael McKee says most Democrats have opposed Warsh's nomination
on concerns that he will not maintain the independence of
the Fed on monetary policy.
In company news, Alexis job cuts are coming at Walmart.
The retail giant is eliminating or relocating about one thousand
corporate jobs. Walmert says it's part of a plan to
consolidate its technology and artificial intelligence efforts.
And speaking of AI, Karen Bloomberg News has learned Anthropic
is in early talks with investors to raise at least
thirty billion dollars in fresh financing the claudmakers and discussions
to raise the new capital at evaluation of more than
nine hundred billion dollars. That's not including the investment. Anthropic
needs to make deals to pay for enough computing infrastructure
to meet growing demand for its products. Amid the breakout
success of its AI.
Software alexis Ai is also helping booset profit at soft Bank,
The Japanese company reported a surge and quarterly profit due
to valuation gains on its open Ai investment. SoftBank has
committed to raising its total investment in open Ai to
more than sixty four billion dollars by the end of.
The year and sticking with open Ai. Sam Altman excuse
me testify that he was extremely uncomfortable with Elon Musk's
insistence that he have complete control over a proposed for
profit subsidiary of the startup Altman told jurors yesterday that
Musk said he only wanted control of the entity in
its early days, but was unwilling to sign a contract
to that effect. Musk has accused Altman and the company
as president of going back on their promise to keep
the artificial intelligence company a nonprofit and to follow its
charitable mission. Time now for a look at some of
the other stories making news in New York and around
the world. For that were joined by Bloomberg's Michael Bark.
Good morning, Michael, Good morning, Alexis it got heated when
FBI direct your cash. Betel was pressed about reports of
excessive drinking during a Senate hearing Tuesday on Capitol Hill.
Patel is now suing The Atlantic magazine after it reported
on alleged bouts of excessive drinking. Senator Patty Murray seized
on reports that Patel hands out bottles of bourbon emblazoned
with his name.
If you want to pass out liquor pop bottles in
a locker room, stick to podcasting.
Patel was also asked about the seizures of ballots in
Fulton County, Georgia, as well as the election probes in
Michigan and Arizona. Critics have raised concerns about the operations
during a mid term election year. Patel said the FBI
has highed dozens of its own election monitors.
We at the FBI and ME have installed ECC's election
county coordinators in every single fifty six field office that
I have.
Patel said the Georgia ballot seizures followed standard legal process.
Food and Drug Administration Commissioner Marty McCarey resigned, according to
President Donald Trump, and Kyle Diamantes will take over the
commissioner role in an acting capacity. McCarey's exit marks the
end of a turbulent period for the agency characterized by
high turnover in top positions and backlash from the biotech industry.
New York Mayor Zorin Mamdani ditched an earlier proposal to
broadly raise property taxes by nearly ten percent. In his
executive budget announced Tuesday, ma'mdannie aims to close New York's
deficit with savings and more aid from Albany, including an
estimated five hundred million dollars from a new surcharge on
expensive luxury second homes that was pitched by Governor Kathy Hockel.
The mayors says the one hundred and twenty four point
seven billion dollar executive budget does not raise property taxes
and refuses to slash services.
It has not been easy, but we have balanced the
budget and we have done so without placing the burden
on the backs of working New Yorkers.
Mayor mum Donnie has said the second home tax was
an important step and its pledged raise taxes on the wealthy.
Global news twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr and this
is Bloomberg. Thanks Michael.
All time now for our Bloomberg Sports update, and for
that we bring in John Stashauer.
Thanks Key. Last sing Victor Wembin Yama. He had thrown
that elbow and got thrown out of Game four of
the playoff series with Minnesota. Game five, Wemby was back.
He led this Furs to an easy victory of Minnesota
and a three to two series lead. Stanley Cup Playoffs
Vegas bing Anaheim three to two in overtime. That's the
Golden Knights series lead. Buffalo won three to two at Montreal.
That series tight at two and fell schedule comes out tomorrow,
but the league announced that the first Monday night game
of the season will be Denver at Kansas City. The
Dallas Baltimore game in Brazil will be hit played on
week three. That's your Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up
after this.
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This is Bloomberg Daybreak and.
President Trump is on his way to China for a
highly anticipated summit which Chinese leaders Jesian Ping the thirty
six hour a meeting Ol Marcus first overseas trip since
waging the war in the Middle East.
I think you're get to see that good things are
going to happen. This is going to be a very
exciting trip. A lot of good things are going to happen.
And was a president speaking yesterday before boarding Air Force
One with a group of business leaders that included Nvidia
co founder Jensen Wong. From more in this story, We're
joined by Bloomberg Asia Government Editor John Hirskowitz and John
good Morning. So we heard the President. They're saying a
lot of good things are going to happen. What are
good things? According to the President, what are you expecting
to see?
Yeah, I mean from the US respective, they're looking at
a few things. They're trying to get more trade in
things like soybean's beef, setting up a board of Trade
and Investment for non controversial, non secure items in trade
with China, looking for some deliveriles, deliver roles like buoying airplanes.
But Trump is heading into the summit facing a more
confident using Ping at a moment of Theoon war has
weaken US leverage. On top of this, the US is
battling inflation that's accelerating of rates not seen in about
three years. We have gas prices which are quite high.
And this is all set against the backdrop of the
November midterm elections, which is putting pressure on Trump and
the Republican Party. So Trump is going into this optimistic,
but in terms of ability or just he's really has
a lot of cards to play when he has his
meeting with Trump.
So obviously Trump is going to be looking for some
help or some cooperation from China when it comes to
the war in Iran and opening the Strait of horror moves.
Does he have the ability to get that from hjin
Ping or are we expecting to get anything in terms of
the war.
So, I mean China has exposure in terms of the Strait.
It gets about thirty percent of its oil imports through
that body of water, so it's a key energy source
for China. But China also has a lot of diversity
in terms of its imports of energy. It has Central
Asia and Latin America. It can turn to other places
to get the oil that it needs. And trying to
help the US at a time when the US is
having a lot of problems with the war with its allies,
it just doesn't work into Beijing's favor. So Trump will
probably ask for help. I don't know what China help
that China can give. And China is also a very
key player for Iran. It's one of its Iran is
one of its more important partners in the Middle East,
and making concessions from China's perspective that we can Iran,
it's not something in Beijing's interests. So Trump will apply
pressure for the Strait. But what China will do is
we really shouldn't expect all that much coming from Jijiving.
Well, we also got a bit of a surprise when
we heard m VIDI as Jenson Wong was among those
joining the president onboard Air Force one. That was a
last minute change. It seems that really pushed AI into
the spotlight. So we will be getting anything in that area.
Yeah, no, it's a really interesting thing since Jensen Wong
wasn't on the original list. Last minute edition as you said,
and you know, for Nvidia, it sees China as like
a fifty billion dollar market opportunity for its advanced H
two hundred chips. The US has approved the sale, but
amazing they're rather cautious about this same holding. They're holding
back approval to support the domestic champions like Quawei. The US
tried a little bit something different that it's proving the
less advanced AGED twenty chip, but this was something that
was not of interest to China. So we'll see how
this plays out. I mean, under the Biden administration, these
types of chips were not allowed for export, trying to
keep US strength in these areas. But now under Trump,
they want to get trying to addicted to these chips
and keep in Vidia as a customer.
This is Bloomberg Day Break your morning podcast on the
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