US Weighs Capping Nvidia Sales; Israel's Retaliation Plan

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:09.760 --> 0:00:11.520 Good morning, I'm Nathan Hager. 0:00:11.440 --> 0:00:14.680 And I'm Karen Moscow. Here are the stories we're following today. 0:00:15.040 --> 0:00:18.439 Karen, we begin with a Bloomberg News exclusive. The US 0:00:18.560 --> 0:00:22.520 is considering camping sales of advanced artificial intelligence chips from 0:00:22.600 --> 0:00:26.599 Nvidia and other American companies to specific countries. Source to 0:00:26.680 --> 0:00:29.800 say officials in the Biden administration are considering the move 0:00:29.840 --> 0:00:33.640 in a bid to limit some nations AI capabilities. Bloomberg's 0:00:33.640 --> 0:00:36.680 Annabel Drulers says the focus of the restrictions is on 0:00:36.720 --> 0:00:37.360 the Middle East. 0:00:37.720 --> 0:00:40.080 This is a region we know that's looking to invest 0:00:40.159 --> 0:00:43.519 very heavily into AI data centers. In particular, they've got 0:00:43.520 --> 0:00:45.760 companies that are wanting to establish their or build up 0:00:45.760 --> 0:00:47.920 their data center presence, and they've also got very deep 0:00:48.000 --> 0:00:50.000 pockets to fund them. The Middle East, we know it's 0:00:50.000 --> 0:00:52.720 a place that has a growing relationship with China, which 0:00:52.760 --> 0:00:54.760 is what these sorts of caps were initially put in 0:00:54.800 --> 0:00:58.640 place for was to restrict China's high tech ambition. So 0:00:58.680 --> 0:01:01.000 there is a concern that if you allow companies like 0:01:01.080 --> 0:01:04.680 Nvidia AMD to export to third party countries, those chips 0:01:04.720 --> 0:01:08.240 could still make their way to places, particularly to China. 0:01:08.280 --> 0:01:11.440 Bloomberg's Annabel Drulers says the deliberations are in their early 0:01:11.560 --> 0:01:14.800 stages now. The news of this possible overseas sales cap 0:01:14.880 --> 0:01:18.360 broke just hours after in Vidia's share price hit its 0:01:18.360 --> 0:01:22.000 first record close since June this morning, and Vidia shares 0:01:22.040 --> 0:01:24.320 are down more than one percent in early trading. 0:01:24.640 --> 0:01:27.760 Well, Nathan, we're also following bank shares this morning as 0:01:27.760 --> 0:01:30.319 we get earnings from the financial industry, and we get 0:01:30.319 --> 0:01:32.480 a preview from Bloombergs and Ali Bosik. 0:01:32.680 --> 0:01:35.880 We're awaiting third quarter earnings from Bank of America, City Group, 0:01:35.959 --> 0:01:39.160 and Goldman Sachs. And remember it's the first earnings report 0:01:39.200 --> 0:01:42.920 since the Federal Reserve started its interest rate cutting cycle. 0:01:43.080 --> 0:01:46.319 What we know from JP Morgan is that eventually net 0:01:46.319 --> 0:01:48.600 interest income is going to be under pressure, and we'll 0:01:48.640 --> 0:01:51.120 be wondering if that's the same for Bank of America, 0:01:51.160 --> 0:01:53.880 and same goes for Citygroup, where there's a very large 0:01:53.880 --> 0:01:56.920 credit card business. For Goldman Sachs. We'll be watching investment, 0:01:56.960 --> 0:01:59.400 banking and trading results because we know that the most 0:01:59.440 --> 0:02:02.320 recent quarter was a volatile one, and more than anything, 0:02:02.360 --> 0:02:04.520 we'll be watching for the outlook for the rest of 0:02:04.560 --> 0:02:08.480 the year because volatility is expected to remain somewhat elevated, 0:02:08.800 --> 0:02:11.640 and the question is can trading and banking fees be 0:02:11.800 --> 0:02:14.960 high on that backdrop? In New York, I'm Shinali Bask 0:02:15.080 --> 0:02:16.160 for Bloomberg. 0:02:15.800 --> 0:02:18.640 Radio Okationanali, thank you. Turning to the economy, now more 0:02:18.680 --> 0:02:21.720 Fed officials are speaking out about the future of monetary policy. 0:02:21.919 --> 0:02:25.280 Minneapolis Fed President Neil Kashkari says it appears likely that 0:02:25.400 --> 0:02:28.520 further modest reductions and interest rates will be appropriate in 0:02:28.600 --> 0:02:32.200 coming quarters. Cashcari also talked about the fight against inflation 0:02:32.280 --> 0:02:34.800 in Buenos Aires at a conference held by the Central 0:02:34.800 --> 0:02:35.760 Bank of Argentina. 0:02:36.040 --> 0:02:39.040 So two percent is our inflation target, depending on your 0:02:39.080 --> 0:02:42.160 measure of inflation. It went up to seven eight nine 0:02:42.200 --> 0:02:45.120 percent and it is now running I would call it 0:02:45.160 --> 0:02:47.840 at a round by our primary measure. It's now running 0:02:47.840 --> 0:02:49.920 at around a two and a half percent run rate, 0:02:50.240 --> 0:02:52.360 and a lot of evidence suggesting that it's going to 0:02:52.360 --> 0:02:53.480 continue to fall from here. 0:02:53.600 --> 0:02:56.840 Minneapolis Fed Chief Neil Kashkari has said previously he was 0:02:56.880 --> 0:03:00.000 comfortable with the Fed's fifty basis point rate cut in September, 0:03:00.240 --> 0:03:02.280 and that a quarter point reduction at each of the 0:03:02.280 --> 0:03:06.120 fed's two remaining meetings this year is a reasonable starting point. 0:03:06.680 --> 0:03:08.920 Well, Nathan, we turned out to new developments in the 0:03:08.919 --> 0:03:11.880 Middle East and Israeli Prime Minister Benjamin Netanya, who has 0:03:11.919 --> 0:03:16.080 reportedly told the US he will strike Iranian military sites, 0:03:16.120 --> 0:03:19.120 and Bloomberg's and Baxter has the story the. 0:03:19.080 --> 0:03:21.200 Way Netnyah who puts it is that he is willing 0:03:21.240 --> 0:03:25.880 to strike military rather than oil or nuclear targets. The 0:03:25.880 --> 0:03:28.360 Biden administration has been very open about the fact that 0:03:28.440 --> 0:03:31.600 it did not want the strikes on oil or nuclear. 0:03:32.040 --> 0:03:35.160 The Washington Post reports on the net and Yahoo Biden 0:03:35.240 --> 0:03:37.840 call earlier this week. The Prime minister had said he 0:03:37.920 --> 0:03:40.800 was going to strike infrastructure, so there was fear it 0:03:40.880 --> 0:03:44.200 could be what the US did not want. After that call, 0:03:44.280 --> 0:03:47.560 the President also announced the sending of the THAD system 0:03:47.680 --> 0:03:50.680 to Israel. Ed Baxter Bloomberg radio. 0:03:50.560 --> 0:03:53.160 All right and thank you. And oil is sinking on 0:03:53.240 --> 0:03:56.160 that Washington Post report checking nimex crewed right now, it's 0:03:56.240 --> 0:03:59.200 down four and two thirds percent at seventy dollars thirty 0:03:59.280 --> 0:04:01.640 nine cents per keryl. Brent is lower by four and 0:04:01.680 --> 0:04:04.680 a half percent at seventy three ninety seven. Meanwhile, the 0:04:04.800 --> 0:04:08.280 International Energy Agency says geopolitical risks to oil output in 0:04:08.320 --> 0:04:11.360 the Middle East and elsewhere are being offset by plentiful 0:04:11.400 --> 0:04:12.240 global supplies. 0:04:12.720 --> 0:04:15.120 Now, let's get the latest from the campaign trail. Nathan 0:04:15.160 --> 0:04:17.800 and both Kamala Harris and Donald Trump were on opposite 0:04:17.880 --> 0:04:22.080 ends of Pennsylvania pitching and dueling economic plans. The Vice 0:04:22.120 --> 0:04:25.599 president counted her proposal for a fifty thousand dollars small 0:04:25.640 --> 0:04:28.919 business tach dis deduction at a rally and eerie, she 0:04:28.960 --> 0:04:32.000 played clips from the former president's events to paint him 0:04:32.120 --> 0:04:33.040 as an extremist. 0:04:33.520 --> 0:04:38.880 He's talking about the enemy within our country, Pennsylvania. He's 0:04:39.000 --> 0:04:44.000 talking about that he considers anyone who doesn't support him 0:04:45.360 --> 0:04:50.159 or who will not bend to his will an enemy 0:04:50.240 --> 0:04:51.200 of our country. 0:04:51.720 --> 0:04:55.240 Meanwhile, Donald Trump held a town hall in Oaks, Pennsylvania, 0:04:55.279 --> 0:04:59.159 outside of Philadelphia, but the economic discussion quickly fell off 0:04:59.200 --> 0:05:03.400 the rails when audience members started fainting inside the smeltering arena. 0:05:03.839 --> 0:05:06.280 So Trump decided to turn it into a dance party. 0:05:06.720 --> 0:05:09.760 Let's not do any more questions, Let's just listen to music. 0:05:09.839 --> 0:05:11.360 Let's make it into it for music. 0:05:12.680 --> 0:05:14.760 Houda Hell wants to hear questions. 0:05:14.839 --> 0:05:18.440 Right before the interruption, Trump touted his plans to eliminate 0:05:18.480 --> 0:05:22.160 Social Security income taxes and to deregulate energy and home 0:05:22.240 --> 0:05:23.560 construction man Karen. 0:05:23.600 --> 0:05:26.520 The campaign continues today. Vice President Harris will be in 0:05:26.600 --> 0:05:29.320 Detroit for a town hall with radio hosts Charlemagne the 0:05:29.360 --> 0:05:32.000 God as she ramps up her efforts to court black voters. 0:05:32.279 --> 0:05:34.960 Former President Trump will be at the Economic Club of 0:05:35.120 --> 0:05:38.920 Chicago for an exclusive interview with Bloomberg News Editor in 0:05:39.040 --> 0:05:42.800 chief John Mikelthwaite. That conversation will begin at noon Wall 0:05:42.839 --> 0:05:45.880 Street Time. Our coverage begins at eleven thirty on a 0:05:45.880 --> 0:05:48.600 special edition of Bloomberg's Balance of Power. You can listen 0:05:48.640 --> 0:05:51.680 on Bloomberg Radio or watch on Bloomberg Television or on 0:05:51.680 --> 0:05:53.680 the Bloomberg Podcasts YouTube channel. 0:05:54.040 --> 0:05:56.680 Well, Nathan, there's new developments this morning in the one 0:05:56.720 --> 0:05:59.159 month strike. It Boeing and we get the very latest, 0:05:59.200 --> 0:06:01.719 So Bloomberg should John Tucker and John it looks like 0:06:01.760 --> 0:06:02.920 things are getting more tense. 0:06:03.400 --> 0:06:06.040 Karen Boeing says it's going to be laying off seventeen 0:06:06.120 --> 0:06:09.480 thousand employees in minutes. Ongoing workers' strike. Now the head 0:06:09.520 --> 0:06:11.760 of the labor department reaching out to both sides to 0:06:11.800 --> 0:06:14.120 try to fix things with no end in sight for 0:06:14.160 --> 0:06:17.200 the now month long machineist strike at Boeing, The acting 0:06:17.320 --> 0:06:20.719 labor Secretary, Julie Sue, traveled to Seattle to meet with 0:06:20.800 --> 0:06:24.160 Boeing in the workers union. The two sides cut off 0:06:24.200 --> 0:06:27.840 talks last week. Strikers really aren't sure what to expect. 0:06:28.200 --> 0:06:29.359 I think they're playing a game. 0:06:29.600 --> 0:06:30.720 It's a cat and mouse game. 0:06:30.760 --> 0:06:31.839 Who's going to buy it first? 0:06:32.040 --> 0:06:32.200 Well. 0:06:32.200 --> 0:06:35.760 Boeing also announced a delay to its Triple seven X program, 0:06:35.800 --> 0:06:39.640 angering big customers like Emirates. The intention to cut jobs 0:06:39.720 --> 0:06:42.440 comes as the Planemaker seeks to stave off warnings of 0:06:42.480 --> 0:06:46.120 a possible ratings downgrade from S and P Global. In 0:06:46.200 --> 0:06:49.880 New York, I'm John Tucker, Bloomberg Radio. 0:06:52.000 --> 0:06:53.600 Great John, thank you. It's time now for a look 0:06:53.600 --> 0:06:55.320 at some of the other stories making news in New 0:06:55.400 --> 0:06:57.240 York and around the world. And for that we're joined 0:06:57.240 --> 0:06:58.920 by Bloomberg's Michael Barr. 0:06:58.960 --> 0:07:02.680 Michael, Good morning, Good morning, Karen. Officials say federal disaster 0:07:02.800 --> 0:07:06.719 workers paused and then changed some of their hurricane recovery 0:07:06.760 --> 0:07:10.720 efforts in North Carolina, including abandoning door to door visits 0:07:11.000 --> 0:07:15.600 after receiving threats during a wave of misinformation. The Rutherford 0:07:15.640 --> 0:07:18.880 County Sheriff's office said it received a call about a 0:07:18.920 --> 0:07:22.800 man with an assault rifle who commented about possibly harming 0:07:22.840 --> 0:07:27.880 FEMA employees and targeting a militia against them. For FEMA 0:07:27.920 --> 0:07:29.840 Administrator Pete Gaynor, we have. 0:07:29.880 --> 0:07:32.520 The best missioned federal government helping people before, during, and 0:07:32.560 --> 0:07:33.440 after disaster. 0:07:33.680 --> 0:07:35.720 I think we have some of the most dedicated employees 0:07:35.760 --> 0:07:38.480 that are trying to do that for their fellow Americans, and. 0:07:38.360 --> 0:07:42.720 Stuff like this. It's not good for morale for anyone on. 0:07:42.640 --> 0:07:46.240 The team, former FEMA Administrator Pete Gaynor. The man was 0:07:46.320 --> 0:07:50.480 later arrested and charged with a misdemeanor. Several jurors have 0:07:50.800 --> 0:07:53.560 just been seated in the years old case of the 0:07:53.640 --> 0:07:57.240 murders of two young girls who were hiking in Delphi, Indiana. 0:07:57.760 --> 0:08:02.559 Investigators say that prison recording showed the suspect, Richard Allen, 0:08:03.040 --> 0:08:07.200 confessed more than sixty times while behind bars. It took 0:08:07.240 --> 0:08:10.440 nearly six years for one arrest, police linking a bullet 0:08:10.480 --> 0:08:13.679 from the crime scene to Allan's gun in the killings 0:08:13.680 --> 0:08:16.760 of thirteen year old Abby Williams and fourteen year old 0:08:16.800 --> 0:08:19.280 Libby German. Libby's sister, Kelsey. 0:08:19.480 --> 0:08:22.520 I had so much faith that our detectives would keep 0:08:22.560 --> 0:08:26.239 working on this until they got our answers and justice 0:08:26.280 --> 0:08:30.040 for the girls, and until the conviction is here. I'll 0:08:30.080 --> 0:08:31.200 still remain that way too. 0:08:31.720 --> 0:08:34.560 Evidence from Libby's own phone is expected to play a 0:08:34.559 --> 0:08:38.920 critical role at trial. Another federal civil rights violation trial 0:08:38.960 --> 0:08:43.599 gets underway today in Louisville for former police officer Brett Hankinson. 0:08:43.960 --> 0:08:47.280 He shot and killed Brianna Taylor in twenty twenty during 0:08:47.360 --> 0:08:52.120 what was allegedly a botched raid where Taylor's boyfriend fired 0:08:52.120 --> 0:08:56.240 at police. Former federal prosecutor Lourie Levinson, this is a. 0:08:56.160 --> 0:08:59.719 Case of a federal supervirights violation, but it really is 0:08:59.840 --> 0:09:03.880 the question of whether an officer used too much force. 0:09:04.520 --> 0:09:09.080 Don't forget that Hankinson fired ten shots into Taylor's apartment 0:09:09.160 --> 0:09:10.840 through a glass store That night. 0:09:11.080 --> 0:09:15.400 Former federal Prosecutor Lori Levinson, in a symbolic display of anger, 0:09:15.520 --> 0:09:19.240 North Korea blew up the northern section of unused roads 0:09:19.280 --> 0:09:22.840 that once linked it with the South. Today's action comes 0:09:22.840 --> 0:09:26.079 as the rivals have been exchanging threats, days after the 0:09:26.120 --> 0:09:30.359 North claim that its rival flew drones over its capital, Pyongyang. 0:09:30.960 --> 0:09:33.840 Global News twenty four hours a day and whenever you 0:09:33.920 --> 0:09:36.640 want it with the Bloomberg News. Now, I'm Michael Barr, 0:09:36.640 --> 0:09:38.040 and this is Bloomberg. 0:09:38.080 --> 0:09:38.360 Karen. 0:09:38.559 --> 0:09:45.480 All right, Michael Barr, thank you time now for the 0:09:45.480 --> 0:09:49.040 Bloomberg Sports up Date, brought to you by Tri State Audi. 0:09:49.080 --> 0:09:51.440 Here's John Stashour, johnkan Morney, Good. 0:09:51.320 --> 0:09:51.840 Morning, Caroen. 0:09:51.920 --> 0:09:54.800 Moving closer to a subway series up first with the 0:09:54.840 --> 0:09:58.439 Mets in Los Angeles. Dodgers had thrown thirty three consecutive 0:09:58.440 --> 0:10:01.640 scoreless innings that ended quick. Francisco Lindor hit a lead 0:10:01.679 --> 0:10:04.800 off home run, and inning later the Dodgers walked the 0:10:04.920 --> 0:10:07.080 door intentionally to load the beast. 0:10:07.960 --> 0:10:11.000 Here's the payoff pitch swing on a drive in the air, 0:10:11.040 --> 0:10:12.360 pretty well hit right center. 0:10:12.440 --> 0:10:14.840 Piez back at that track near the wall. 0:10:15.160 --> 0:10:16.040 It is gone. 0:10:16.800 --> 0:10:21.559 A grand slam for Bartfaetas on a three to two pitch, 0:10:21.840 --> 0:10:25.480 he clears the bases, pitting it into the pavilion and 0:10:25.679 --> 0:10:26.840 right center field. 0:10:27.280 --> 0:10:30.680 W hs Q Mets let six. Nothing survived the sixth 0:10:30.720 --> 0:10:33.520 inning when La score twice had three on but hit 0:10:33.600 --> 0:10:36.040 it into an inny knitting double play. Mets one, seven 0:10:36.120 --> 0:10:38.720 three come back to New York with the NLCS tied 0:10:38.800 --> 0:10:40.880 to one, Game three tomorrow then it was the Yankees 0:10:41.200 --> 0:10:44.600 in the ALCS opener with Cleveland Wan Soto homer third inning, 0:10:44.640 --> 0:10:47.599 he he's got two more on three guardian walks and 0:10:47.679 --> 0:10:50.280 two wild pitches. And then in the seventh upstep the 0:10:50.280 --> 0:10:52.360 hottest Yang all the. 0:10:52.440 --> 0:10:55.000 O one is hitting there two left center. 0:10:55.280 --> 0:10:59.239 It is high, it is far, it is gone. 0:11:00.200 --> 0:11:04.880 Ay Stantonian obro Wfan John Carlos Stanton coming off the 0:11:04.880 --> 0:11:08.520 big Alds Yanks one five two, Carlos Redon six strong 0:11:08.520 --> 0:11:11.440 innings and Luke Weaver flourishing as the Yankee closer. 0:11:11.440 --> 0:11:14.480 He got the last five outs, four by strikeout. Game 0:11:14.520 --> 0:11:16.520 two tonight, a game at matt Life for the second 0:11:16.520 --> 0:11:19.199 straight night, and just like the Giants, a loss for 0:11:19.240 --> 0:11:22.360 the Jets. Buffalo won twenty three twenty Josh Allen three 0:11:22.400 --> 0:11:25.000 for two touchdowns, ran for another, Aaron Rodgers through for two, 0:11:25.040 --> 0:11:27.760 including a hail Mary to close out the first half, 0:11:27.760 --> 0:11:31.079 but just like last Sunday in London, a late costly 0:11:31.200 --> 0:11:34.800 Rogers interception it spoils the coaching debut of Jeff Olbrook 0:11:34.800 --> 0:11:37.560 at the Garden. Rangers beat Detroit four to one. In Newark, 0:11:37.600 --> 0:11:40.960 Devil's over Utah three nothing. In Denver, Islanders down Colorado 0:11:41.000 --> 0:11:43.600 six to two. Florida top the Bruins four to three. 0:11:43.920 --> 0:11:46.000 Johns dash Ewen Bloomberg Sports. 0:11:47.760 --> 0:11:51.880 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:52.000 --> 0:11:54.880 and around the world on Bloomberg dot Com and the 0:11:54.920 --> 0:11:59.160 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:11:59.200 --> 0:11:59.800 Nathan Hager. 0:11:59.840 --> 0:12:03.760 The breakneck growth of artificial intelligence technology may face new 0:12:03.800 --> 0:12:07.200 limits on a country by country basis. Bloomberg News has 0:12:07.240 --> 0:12:11.240 learned the Biden administration is considering sales caps on chips 0:12:11.240 --> 0:12:14.240 from the likes of Nvidia and advanced micro devices in 0:12:14.280 --> 0:12:16.840 the interest of national security. For more on this, we're 0:12:16.880 --> 0:12:19.880 joined by Bloomberg Radio and television anchor Critty Gupta. Critty, 0:12:19.920 --> 0:12:22.600 Good morning. What more are we hearing about what the 0:12:22.800 --> 0:12:24.320 administration's considering here? 0:12:24.679 --> 0:12:25.520 Welcome morning, Nathan. 0:12:25.600 --> 0:12:28.080 Usually when we hear about the Biden administration being tough 0:12:28.120 --> 0:12:31.400 on those chipbex boards, it's usually in relation to whether 0:12:31.480 --> 0:12:34.960 or not that very secure technology can. 0:12:34.960 --> 0:12:35.679 End up in China. 0:12:35.760 --> 0:12:37.920 This time around, though, it looks like they're considering how 0:12:38.000 --> 0:12:39.560 might end up in the Middle East. Now, there were 0:12:39.600 --> 0:12:42.520 suspicions of this earlier this year, that this may be 0:12:42.880 --> 0:12:46.120 an area of concern, especially as the Middle East has 0:12:46.160 --> 0:12:46.680 really been. 0:12:46.640 --> 0:12:49.319 Ramping up their chip making capacity. 0:12:49.360 --> 0:12:53.080 So you've seen TSMC, for example, show interest in places 0:12:53.240 --> 0:12:56.520 like the UAE. The concern here, though, is that if 0:12:56.559 --> 0:12:58.920 you now have to consider China for national security reasons, 0:12:58.960 --> 0:13:01.480 you have to considers to the Middle East for that 0:13:01.679 --> 0:13:04.520 as well. That being said, this is certainly on the table, 0:13:04.520 --> 0:13:07.600 but no decisions have been made just yet, and even 0:13:07.640 --> 0:13:09.840 if they were made, it's unclear if they would be 0:13:09.880 --> 0:13:12.719 imposed during the remainder of President Biden's term. 0:13:13.480 --> 0:13:16.240 So if this is in the interest of fairness, is 0:13:16.280 --> 0:13:18.760 this the kind of thing that Middle Eastern allies could 0:13:18.800 --> 0:13:23.040 work with either the Biden administration or whatever administration might 0:13:23.240 --> 0:13:25.200 consider these kinds of limitations. 0:13:25.480 --> 0:13:26.480 Well, that's the expectation. 0:13:26.559 --> 0:13:29.200 Look, there's a global race, as we know to get 0:13:29.200 --> 0:13:32.480 our hands on this kind of chip technology. Whereas AI 0:13:33.240 --> 0:13:36.240 may be rising very quickly and spearheaded by Nvidio chips 0:13:36.280 --> 0:13:40.440 for example, or EV technology spearheaded over in China, there 0:13:40.440 --> 0:13:42.600 are still other parts of the world that are actively 0:13:42.640 --> 0:13:43.560 trying to play. 0:13:43.360 --> 0:13:45.320 Catch up in a lot of ways. 0:13:45.360 --> 0:13:47.319 In the absence of being able to do that, or 0:13:47.320 --> 0:13:49.600 in the process of developing their own technology and their 0:13:49.640 --> 0:13:52.160 own supply chains. This is where there is a real 0:13:52.200 --> 0:13:55.280 incentive to be negotiating with the Biden administration, and it 0:13:55.280 --> 0:13:57.520 looks like that may be where this is headed. 0:13:57.880 --> 0:14:00.559 But a big piece of leverage here that. 0:14:00.800 --> 0:14:03.520 The Biden administration of the United States broadly has over 0:14:03.559 --> 0:14:06.920 the Middle East is that in controlling those exports, being 0:14:06.960 --> 0:14:09.959 able to say, maybe you also need to lessen your 0:14:09.960 --> 0:14:12.480 dependents or lessen your relationship with China in some way. 0:14:12.520 --> 0:14:15.040 We've already seen evidence of that show up in the 0:14:15.080 --> 0:14:18.160 way that the US has talked about export controls with 0:14:18.280 --> 0:14:20.800 the Netherlands, of course, the home country of ASML, the 0:14:20.840 --> 0:14:23.920 major chip equipment maker for most of the chip equipment 0:14:23.960 --> 0:14:26.840 making technology in the world, and that puts the Dutch government, 0:14:26.880 --> 0:14:28.720 for example, in a pretty tight spot. 0:14:28.800 --> 0:14:31.960 Well, what could these kinds of country by country national 0:14:32.000 --> 0:14:36.480 security focused export limitations mean for the AI trade overall? 0:14:36.520 --> 0:14:38.400 I mean, we just saw on Vidia hit its first 0:14:38.560 --> 0:14:42.840 record since June yesterday. Does that put the AI frenzy 0:14:42.880 --> 0:14:44.600 in a little bit of doubt this morning? 0:14:44.920 --> 0:14:46.760 You know, one would think, but it's not really making 0:14:46.800 --> 0:14:49.400 a dent. And the reason for that is because it's 0:14:49.440 --> 0:14:52.600 not one imposed to we don't know what the actual 0:14:52.640 --> 0:14:55.360 details of this move would actually look like in three 0:14:55.400 --> 0:14:57.640 at the end of the day, it's not actually hitting 0:14:57.680 --> 0:15:01.400 the supply just yet or the expected supply of these chips. 0:15:01.440 --> 0:15:03.200 There is still a little bit of a bottleneck on 0:15:03.240 --> 0:15:06.080 that where Nvidia is kind of the only player in 0:15:06.120 --> 0:15:09.280 the game at the moment, as recently shown by the 0:15:09.320 --> 0:15:13.040 fact that AMD Advanced micro Devices has also released their 0:15:13.080 --> 0:15:17.040 own kind of competitor chip and met with not such 0:15:17.080 --> 0:15:19.800 great an investor appetite because the concern was one, can 0:15:19.800 --> 0:15:22.600 you ramp up capacity? And two can you monetize it? 0:15:22.640 --> 0:15:26.760 So again, it still feels like Nvidia's dominance is here 0:15:26.800 --> 0:15:27.440 to stay for now. 0:15:27.800 --> 0:15:30.400 Got about thirty seconds left, but the market focus is 0:15:30.440 --> 0:15:32.960 going to turn very quickly back to banks. What to 0:15:33.000 --> 0:15:34.400 expect from the earnings this morning? 0:15:34.920 --> 0:15:36.120 Well, there are two things. 0:15:36.200 --> 0:15:39.280 One is, do we see the net interest income outperformance 0:15:39.280 --> 0:15:41.400 of JP Morgan and Wolfs Fargo show up in the 0:15:41.520 --> 0:15:45.760 likes of City Goldman, Sachs and I believe Morgan Stanley 0:15:45.800 --> 0:15:48.040 reporting tomorrow as well among some of the other banks. 0:15:48.040 --> 0:15:50.120 A second, especially for City, is going to be that 0:15:50.120 --> 0:15:52.840 credit card data. If there's any hiccups in the JP 0:15:52.920 --> 0:15:55.000 Morgan numbers. It's that there might have been a little 0:15:55.040 --> 0:15:56.960 bit of slow down that spend. We'll see if city 0:15:56.960 --> 0:15:57.680 shows the same thing. 0:15:58.400 --> 0:16:02.200 This is Bloombergy Daybreak, morning podcast on the stories making 0:16:02.240 --> 0:16:04.920 news from Wall Street to Washington and beyond. 0:16:05.200 --> 0:16:07.600 Look for us on your podcast feed by six am 0:16:07.640 --> 0:16:11.040 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:11.240 --> 0:16:14.080 You can also listen live each morning starting at five 0:16:14.120 --> 0:16:16.840 am Wall Street Time on Bloomberg eleven three to zero 0:16:16.840 --> 0:16:19.760 in New York, Bloomberg in ninety nine to one in Washington, 0:16:19.800 --> 0:16:23.760 Bloomberg ninety two nine in Boston, and nationwide on serious 0:16:23.960 --> 0:16:25.520 XM Channel one twenty one. 0:16:25.920 --> 0:16:28.640 Plus listen coast to coast on the Bloomberg Business app 0:16:28.680 --> 0:16:31.520 now with Apple CarPlay and Android auto interfaces. 0:16:31.720 --> 0:16:34.760 And don't forget to subscribe to Bloomberg News Now. 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