Stocks Rise as US Nears China Trade Deal; Trump Says He Won't Resume Canada Talks

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, Futures are surging on signs the US and China
are closing in on a trade deal. Both sides spent
the weekend in Malaysia coming to terms on a range
of contentious issues, including export controls, fentanel, and shipping fees.
Treasury Secretary Scott Besson says President Trump's threat of a
one hundred percent terify on Chinese goods is effectively off
the table, and he expects China will make substantial purchases
of American soybeans.
Those soybeans were always going to be on the market.
It's a global market. The three leading suppliers are Brazil,
Argentina and the US. And I believe that we have
brought the market back into equilibrium, and I believe that
the Chinese will be making sustained purchases again.
Treasury Secretary Scott Besson spoke on CBS's Face the Nation
Heard Sundays on Bloomberg Radio after he met with his
Chinese counterpart. President Trump says he may drop an investigation
into whether China violated his first term trade deal when
he meets with Chinese President shi Jinping on Thursday.
On Nathan, the President's next stop in his trip to
Asia is Japan. He arrived there earlier this morning. He
told reporters he was excited for his meeting with new
Japanese Prime Minister san Aetakaishi and the prospect of completing
a joint deal to promote shipbuilding capacity. The meeting is
a high stakes test for Takaichi, who was selected by
lawmakers to become Japan's first woman prime minister.
Earlier this month, Canadian Prime Minister Mark Carney says his
government is prepared to resume trade talks with the US
at any time. That's after President Trump announced an additional
ten percent in tariffs on goods imported from Canada after
the Province of Ontario aired an anti tariff advertisement featuring
Ronald Reagan. Carney says the world will start shifting away
from trade with the US, so natural which.
Trade is going to shift away.
By definition?
The other reason is fit from the US for a
period of time.
On that it's also shifting because it's more expensive to
trade with the United States.
Canadian Prime Minister Mark Karney made those comments about trade
with the US at a business and investment forum in Malaysia.
Nathan.
President Trump is ruling out the idea of running as
a vice presidential candidate in the twenty twenty eight election.
He made the comments this morning on Air Force one,
as some of his supporters urge him to find ways
to circumvent the Constitution's prohibition on a president being elected
to three terms. The President has declined to rule out
seeking another term despite the constitutional term limit.
Well, there's no end of the government shutdown, Karen. It
is now up today twenty seven and the impact is
starting to spread beyond the Beltway. More flights are seeing
departure and arrival delays as air traffic controllers call in
sick rather than work through the shutdown without pay. Transportation
Secretary Sean Duffy says that's only going to get worse.
As we get to Monday, Tomorrow, Tuesday and Wednesday, that
you're going to see more staffing shortages and towers, which.
Means you're all going to see.
More delays, more cancelations.
Transportation Secretary Sean Duffy made those comments on Fox News'
Sunday Morning Futures. The Agriculture Department says as of this Saturday,
it will no longer have the funds to send out
supplemental nutrition assistance also known as food stamps. House Minardi
leader Hakim Jeffrey says Republicans need to negotiate on democrats
demands for extended health insurance subsidies.
They have had the opportunity both House Republicans and Senate
Republicans repeatedly throughout the year so extend the Affordable CARECT
tax creators, and they've consistently voted against it.
House Minardi leader Hakim Jeffries was a guest on CBS's
Face the Nation Heard Sundays on Bloomberg Radio Nathan.
Early voting began over the weekend, and the race to
run the nation's largest city on Bloomberg's John Tucker joins
us with more John, Good Morning, Good Morning Karen.
Thousands of voters showed up both Saturday and Sunday to
pick the next mayor of the Big Apple, and the
turnout for early voting was reported heavy.
From Mamdani, I think that he has a lot of
really good ideas for the future of New York.
Because I wanted to go for the experience. I don't
want to burning one to job.
The front runner, Democratic Socialist Zora Mumdani, has been working
to build a governing coalition by meeting with all comers,
including the business community that's been bashing his plans, and
with only eight days until lunch day, supporters of Andrew
Cuomo are pouring money into a ground game. They include
political action committees fueled by Bill Ackman and Ronald Lauder.
The tone of the race it has turned ugly in
the final days, with a sharp and focus on religion
and race. Cuomo has questioned mam Donnie's ability to manage
quote another nine to eleven, with mam Donni complaining of
Cuomo's racist attacks. Republican Curtis Sleeve on trails in third place.
The current mayor Eric Adams dropped out of the race.
In New York Time John Tucker Bloomberg.
Radio John Thank You, True.
Secretary Scott Besson says they are now five finalists to
succeed j. Powell as the next chair of the Federal Reserve.
Speaking to reporters of Board Air Force One, Besson said
the candidate pool is now Christopher Waller Kevin Walsh, Kevin Hassett,
Michelle Bowman, and Rick Reader. President Trump says he expects
to make a decision on the nominee before the end
of the year.
Meanwhile, it's a big week for policy decisions around the world, Nathan.
The Federal Reserve and Bank of Canada are widely anticipated
to cut rates by a quarter point on Wednesday, while
the Bank of Japan is predicted to hold off on
a rate hike the following day. The European Central Bank
is also expected to keep raids steady after its meeting
in Florence on Thursday.
We got some deal news on this Monday morning. Karen
Nevardes has agreed to buy US based Avidity Biosciences for
twelve billion dollars. Avidity is developing experimental drugs to treat
rare diseases, and the shares this morning are up more
than forty two percent.
And Toyota maintained record global sales during the first half
of the fiscal year, as growth in the US helped
counter aid lukewarm showing in Japan and China. Global sales
rose almost three percent in September from a year earlier.
The world's biggest car.
Maker has managed to achieve overall growth despite volatility in
China and trade tensions brought about by President Trump's tariffs
on cars and parts imported to the US. I'm 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 Barr.
Michael, good morning, Good morning, Karen. Hurricane Melissa is roaring
toward Jamaica and has grown to a destructive Category five storm.
It is expected to strengthen further before making landfall on
the Caribbean nation with up to thirty inches of rain
and a life threatening storm surge. Melissa's center was forecast
to move over Jamaica on Tuesday, across southeast Cuba on
Tuesday night, and across the southeast Bahamas on Wednesday. This
man is a resident of Saint James Parish, so we.
Used plywoods to barkt areas and sunbark to for that
during the starman don't have any issues off any debris
going inside for anybody pasts by to probar one to
the go inside.
With more on the storm, here's Bloomberg meterologist Craig allen.
Haiti and the Dominican Republican parts of Jamaica being pummeled
by major Hurricane Melissa. The very slow westward movement is
going to turn more to the north and northeast and
head right forward Jamaica. This is going to be an
absolutely catastrophic storm for Jamaica, with Cat five wins over
one hundred and fifty miles per hour gusting to one
hundred seventy.
Bloomberg meteaurologist Craig Allen. The storm has caused four deaths
in Haiti and the Dominican Republic. Argentina's libertarian President Javier Malay,
has one decisive victories and key districts across the country
in midterm elections. He clinched a crucial vote of confidence
that strengthens his ability to carry out his free market
agenda with billions of dollars in backing from the Trump administration.
A US military helicopter and a fighter jet crashed in
the South China Sea, with the incidents occurring about thirty
minutes apart. The US Navy said all five people involved
in the accidents were safe and investigations were underway. Authorities
have arrested two suspects in connection with the theft of
crown jewels from Paris's Louver Museum. One suspect was caught
at Charles de Gaulle Airport while attempting to leave the country.
The theft, which took less than eight minutes, involved jewels
valued it more than one hundred and two million dollars.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr and this
is Bloomberg.
Hearen, Thanks Michael a time now for our Bloomberg Sports update,
and for them we bring in John stash Hour.
That's hearing.
The NFL Sunday ended with Aaron Rodgers facing the TeV
he played for for eighteen years, but Stitzburg lost to
Green Bay thirty five to twenty five. As Rogers replacement
with the Packers, Jordan Love through three touchdown passes, Rogers
through for two. They'll play Game three the World Series
tonight in La. The Blue Jays and Dodgers are tied
to one. Toronto starting forty one year old Max Scherzer.
Forty two year old Craig Albany's named the new manager
the Baltimore Orioles. He had been the bench coach in Cleveland.
That's your Bloomberg Sports Update.
Stay with us.
More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning on Nathan Haygar.
On a morning where the markets are getting a lift
on signs the US and China maybe getting close to
a trade deal. Treasury Secretary Scott Besson says he and
his negotiating team made a lot of progress and talks
with their Chinese counterparts in Malaysia over the weekend.
We had a very good two days.
We discussed a.
Wide variety of issues, from the rare earth from the
rar earth magnets to trade to substantial purchases of American
agricultural product.
Treasury Secretary Scott Besson discussed those negotiations on CBS's Face
the Nation heard Sundays on Bloomberg Radio and this morning
we're joined by Bloomberg News Global Trades are Brendan Murray
and Brendan. It's not just the Treasury Secretary saying this,
but Chinese officials as well, are saying that they've made
a number of agreements on tariffs, shipping fees, even fentanyl.
What's your read on what came out of the discussions
in Malaysia?
Good morning, Yeah, exactly.
The rhetoric has really turned one hundred and eighty degrees
over the past week. If you recall, they were escalating
talks of putting export controls and higher tariffs. One hundred
percent US tariffs on Chinese imports was the threat from
President Trump. But it seems like they've set all of
those aside and said, look, a trade war isn't going
to be good for either of the world's two largest economies,
and it's probably better if we just get to some
agreement on these. We'll have to wait and see what
the leaders the details that they sign on Thursday, but
it looks like China is going to purchase some US soybeans.
They had stopped doing that for several months. Perhaps the
US is going to rethink the tariffs on the twenty
percent tariffs on Chinese goods related to the fentanyl export
that the US accuses China of being part of, and
some of these other issues, the shipping fees, these are
just kind of concessions that the US could give up.
China also, it'd be interesting to see what it does
with its rare earth export controls that a lot of
countries said would just really seize up the world economy
if they were allowed to to go ahead with those.
So deadlines ahead. November first is when President Trump threatened
to put one hundred percent tariff on China. That's coming up.
November tenth is when their current truce expires, so there's
not a lot of time to put this all together,
but it sounds like the negotiators are making a lot
of progress toward.
That end and going into those negotiations. Of course.
Brennan then there was some concern among observers that the
US could be rushing into a trade deal.
Does this like a rush at this point?
I wouldn't necessarily call it a trade deal per se.
This doesn't really have the hallmarks of any kind of
trade deal. It's just kind of getting resetting back where
they were. You know, getting China to buy soybeans is
not exactly a win. It's just, you know, try getting
them to resume buying soybeans after they started. So it
looks like the tensions are being ratcheted down. The two leaders.
Once they get together face to face, what they what
they would assume that they could they could get to
some arrangement where they're not escalating and they're not hurting
each other's economies and they could kind of muddle along.
That doesn't take any uncertainty out of the equations. As
we've seen with Canada, President Trump can raise tariffs, you
know when if he's in the mood to do so,
and so that doesn't change the outlook for any certainty
that we would get from some sort of agreement that's
announced on Thursday. But it's certainly the markets certainly see
this as a sign that the two largest econ are
not going to get into a protracted, heated trade war
in the near future.
I think we have about a minute left here.
In the lead up to this encounter on Thursday, there's
been deals discussed as well with Malaysia some other Southeast
Asian nations as well. How could that tee up what
we see on Thursday.
Yeah, so we've got two deals, one with Cambodia, one
with Malaysia, that's what the US White House has announced,
and then two frameworks which are basically outlines of deals,
one with Thailand and another with Vietnam. So these countries
are trying to prevent the higher tariff threat that President
Trump has pointed to their direction from going into effect.
And so the main thing for them is to get
as low a US tarif as they possibly can, and
it looks like Cambodia and Malaysia have done that. Thailand
and Vietnam, with these framework deals, are going to keep
engaging with US negotiators over the coming weeks and months
to try to get their own deals. Of course, Southeast
Asian nations are they're all kind of in competition with
each other to export to the US, so it's important
for them to get to some agreement with the US,
whether or not in the firing line of any sort
of excessive traff.
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