Trump to Make Call on China Truce; Fed Decision and Mag 7 Earnings Coming

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 latest on the trade front.
This morning, the US and China have wrapped up two
days of talks in Stockholm, Sweden. The Chinese trade negotiator
says they agreed to extend their ninety day tariff truce,
but the US side says China may have jumped the
gun on that. Here's Treasury Secretary Scott Bessant.
The Chinese deputy minister did say that we had agreed
on a pause.
We have not.
Nothing is agreed until we speak with President Trump.
Treasury Secretary Scott Besson says extending the pause another ninety
days could be an option, and that could clear the
way for President Trump to visit China in late October
and meet with President Shijinping.
Meanwhile, Nathan, the US and India are racing to negotiate
a trade before this Friday's deadline. President Trump says he
may settle on a twenty to twenty five percent tariff
rate on India, though that isn't final.
India has been a good friend, but India has charged
basically more tariffs and almost any other country.
President Trump spoke with reporters on board Air Force One
on his way back from Scotland. Even if the President
follows through on higher tariffs, sources tell Bloomberg News, India
plans to keep negotiating on a bilateral trade deal by
the fall.
Karen, We're monitoring a dangerous situation out west. A massive
earthquake off rush as far east as sparked tsunami warnings
across the Pacific. Hawaii has already seen four foot waves.
Parts of California and Washington State have started to record
tsunami waves as well. Honolulu Mayor Rick Blenngiardi's warning residents
to stay alert.
Pay attention. This is real and it's most serious.
They happen to be watching.
We don't have these events very often, but when we do,
they are they're real in this area. So we're just
asking you to pay attention and do what you've been
asked to do, and we're all going to hope for
the best.
Funnololu Mayor Rick Landiardi's telling people to stay off the
beaches and head for higher ground. This quake was a
magnitude eight point eight off the Russian coast. That's the
strongest since twenty eleven, when a magnitude nine earthquake off
Japan's east coast sparked the tsunami that led to the
Fukushima nuclear disaster.
To Manhattan now, Nathan and tighter security and grief are
still gripping the financial industry following that deadly shooting in midtown.
Bloomberg's John Tucker joins us with more. John, Good morning,
Good morning Karen.
At three forty five Park Avenue, a shattered plate glass window,
now boarded up and bouquets of flowers marked the spot
of the worst mass shooting in New York City in
a quarter of a century. Mayor Eric Adams surveyed the
carnage since.
This act of violence as the police commissioner and I
walked through the building and saw the blood trails in
the videos and the level of violence that I have
not witnessed at.
That level before.
Many employees praised how their bosses handled the initial report
of a gunman. Kathleen Bennati is one of them.
Our fire and safety director for the building immediately came
on and said to shelter in place.
Well sawbware two petrified to leave their hiding spots at first.
Others would only leave the building at ten pm as
police continue to sweep each floor. Blackstone's offices will remain
closed this week. It's unclear whin they'll reopen. Authorities still
trying to find out how the shooter obtained the gun
used in the attack and m for style rifle. They
say as coworker at a Las Vegas casino purchased the
lower receiver. A note from the gunman found in Las
Vegas reportedly includes an apology to his parents. According to ABC,
the gunman's father is a retired Los Angeles police officer
in New York. I'm John Tucker Bloomberg Radio.
Okay, John, thank you. Let's turn out to markets and
the economy. Federal Reserve policymakers are not likely to change
their benchmark interest rate today as they wait for more
details on how President Trump's tariffs will affect the economy.
Bloomberg's Michael McKee has a preview.
The outlook for you US inflation and growth is murky
at best, But just days before the Trump import tax
increase goes into effect, companies are offering support for the
idea of no FED rate cut. Today, UPS is offering
no earnings guidance, and Procter and Gamble says they will
be raising prices to account for tariffs. So the question
today is what will Jay say we may see the
first double descent by FED governor since nineteen ninety three.
Will that suggest or will the Fed chair offer support
for a September cut or explain what the central bankers
would have to see to entertain the possibility. Michael McKee,
Bloomberg Radio.
Okay, Mike, thank you, and join us for our complete
coverage of the FED decision and Jay Powell's news conference
on a special edition of Bloomberg Surveillance. It all begins
at one thirty pm Wall Street Time on Bloomberg Radio
and the Bloomberg Podcast channel on YouTube.
Nathan, it's another big day for earning. So with more
than fifty combination the S and P five hundred reporting,
MAGS seven will once again lead the With both Microsoft
and Meta on the docket, we get a Microsoft preview
now with Bloomberg's tom busby.
Microsoft expected to post a fourteen percent rise in sales
thanks to its cash cow Azure cloud computing unit, which
is expected to show a thirty four percent spike in
revenue in just the last three months. Also helping earnings
it's partnership with chat GPT maker open Ai, which is
helping Microsoft emerge as a leader in commercializing artificial intelligence.
Investors also eager for an update on his planned capex,
estimated to be a record twenty three billion last quarter.
To keep up with rivals, Bloomberg consensus calls for total
revenue of seventy three point eighty nine billion and earnings
per share of three dollars ninety seven cents. Tom Busby
Bloomberg Radio, All.
Right, Tom, thank you all big text in the spotlight
here in the US, banks have center stage in Europe
when it comes to earnings. Let's go to London get
the latest of Bloomberg's Ewen Potts Ewen.
Nathan and Karen. Let's kick off with Europe's most valuable bank,
HSBC disappointing investors today as pre tax profit missed estimates,
London based lender flagging rising expenses and a two billion
dollar charge linked to a stake in a Chinese bank.
Over in Switzerland's UBS posting a higher than expected profit
in the second quarter. Speaking to Bloomberg. The company's CEO
said that he won't make the bank smaller to mitigate
the impact of future Swiss capital requirements, and shares in
Spain's biggest bank lower today after Santander reported an unexpected
charge at its Brazilian business that's overshadowing record profits and
a new share buyback in London. I'm you in pots
Bloomberg Radio.
A R you and thanks for a couple of European
carmakers are feeling the pinch of tariffs, both Mercedes Benz
and Porsche scaling back their profit expectations for the year.
The two German manufacturers flagged the twin pressures of new
US tariffs and intensifying competition in China.
Back here in the US, Karen Shares of Visa are
down almost two percent in early training, the world's biggest
payments network left its earnings outlook for the rest of
the fiscal year unchanged. Meanwhile, shares of Starbucks are up
four and a half percent. The coffee chain registered its
first sales gain in China since the end of twenty
twenty three.
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 Barr Michael, good Morning.
Good Morning, Karin. One hundred and seventy million Americans are
on alert for life threatening heat. Some of New York
subways are overcome by the one hundred degree heat index,
with passengers faltering on platforms. Unrelenting heat is straining the
power grid. Yesterday, the New York City Subway was hit
with massive delays from the power outage. In Pennsylvania, Near
Birth Ambulance Deputy Chief Patrick Glenn says his EMTs are
seeing an increase in calls for heat related illnesses.
I'm just really kind of knowing yourself, making sure you
feel right.
If you start to feel busy, week tired, right, get
in a cool place, get some fluids, and relax.
EMT Patrick Glenn. President Trump says Jeffrey Epstein stole young
women who worked at Maer Lago, including Virginia at Juprey,
one of the disgraced financier's most well known accusers. President
Trump claims he banned Epstein from Mara Lago after the incidents.
The White House initially said Epstein was banned for acting
like a creep, and the.
Same thing, you know, sort of a little bit of
the same thing, but no, he took people that worked
for me, and I told him, don't do it.
Anymore, and he did it.
Said I said, stay the hell out of here.
Glenne Maxwell Epstein's former girlfriend is willing to answer more
questions from Congress if granted immunity. She is serving a
twenty year sentence in a federal prison. New York City's
Public Transportation agency will delay a planned fare and toll
increase to January, just as the bus, train and subway
operator terminates its long standing Metro card for a tap
and go payment system. The MTA board is set to
vote today on postponing the fair and toll hike. The
move comes as some writers recently reported snags where they
believe they've been overcharged when using a phone, credit card
or omni card to enter Return Style Global News twenty
four hours a day and whenever you wanted, with Bloomberg
News Now Michael Barr, and this is Bloomberg Careen.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. And
here's John Stashauer.
John, Good morning, NORNA kared Yankees off Mondays lost to
Tampa Bay at the Stadium, fell behind three to nothing,
came back. Cody Bellinger tied the game of the three
run homer, and the Yanks went on to win seven
to five. A mixed result night for Anthony Volpe. A
first inning error led to two Tampa Bay runs, and
when Volpi struck out in his first at bat, he
heard booze from Yankee fans, but his base hit fourth
inning snapped to three off Tigh and in the eighth
Volpi beult at a long four hundred and fifty foot
home run, then with two outs of the ninth inning,
another Volpi air. He leads all of baseball with fifteen.
His manager Zaron.
Boone, There's there's been some plays where he's probably felt
it a little bit, you know, believe it or not.
A lot of us have been in those defensive slump places,
and you know, you kind of got to get through it,
especially when you're when you're as capable and talented as
he is out there.
You know.
He's going to grow from this, learn from it, and
come out on the other side. And we got to
get him, help him get it there.
Now, the Yankee win coupled with two losses by Toronto.
The Blue Jays were so hot they had won nineteen
of twenty three, but that fourth straight losses swept in
a doubleheader in Baltimore, and the Yanks are now four
games behind and the Red Sox trailed by five. Boston
won at Minnesota eight to five. The Mets in San
Diego lost seven to one, had only four hits. The
five Drains pulled away with a five or on seventh
I ain't cap by a manny matchadow three run homers,
So back to back Met losses since that seven game
win streak, and the Phillies beat the White Sox styles
Schwarber in his thirty seventh homer in the Phils half
game behind the Mets. Trey Dricksson does not avenue contract
he's looking for, but last year's NFL sack leader did
end his holdout. Reported to Bengals training camp of Breescarett
Giants camp, top white em Lak neighbors left practice with
an injured shoulder.
But it's not considered serious.
Johns Da actually were Bloomberg Sports.
Karen Nathan 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, I'm Nathan Hager. Two days to go till
President Trump's tariff deadline. The US and China are on
a different track than the rest of the world, but
the President says it's up to him whether it stays
on track. After Treasury Secretary Scott Besson's meetings this week
with Chinese officials in Sweden that.
A very good meeting with China, and Steep said, I mean,
they're going to brief me tomorrow will either approve it
or not. But he felt very good about the meeting.
That was President Trump on his way back to Washington
from Scotland to board Air Force one for more. We're
joined by Bloomberg News Senior editor Bill Ferries. So, Bill,
we heard the President say it was a good meeting.
Do we have a sense of what came out of
that meeting other than some disagreement over whether the tariff
pause is going to be extended?
Good morning, Yeah, good morning.
I mean it seems like the main agreement is to
keep talking. This was the third round of talks between
the US and China, and you're right, there was a
little bit of confusion. As the meeting wrapped up, the
Chinese officials came out and said that the truce that's
been in place since basically about April or May would
be extended, and then Scott Bessant in his news conference afterwards,
said that the Chinese may have gotten ahead of themselves,
that there was no decision on the truce until they
got a chance to brief the president expected on Wednesday,
but the mood was overall fairly positive. Scott bessen even
said it was a productive meeting. So the signals seemed
to be that there's not going to be a snap
back to higher tariffs and that the two sides will
keep talking. So no decisions final till Trump announces it,
but it did seem like that's where things were headed.
Do we have a sense of whether the President would
agree to extend the truce just to secure a meeting
with Chinese President Shi Jinping. He's said that he's not
seeking it, but it seems like he wants to go there.
Yeah, that was an interesting post from the president. He
said he's not seeking it, but that he would go
if invited, and in fact, he already had been invited.
That's certainly playing into the calculus here. I think we've
also seen, alongside the trade talks, we've seen the US
basically block Taiwan's president from routing through the United States
on his way to Central America. That Taiwanese president typically
does a stopover. This time it was scheduled for New
York and the White House or the State Department blocked,
So the trip is now That trip is now off.
But there is a lot of speculation that President Trump
and President Chigi and Ping of China will try to
meet before the end of the year, perhaps October November
time period.
And of course with two days to go for the
rest of the world, there's a lot of focus now
on India, whether they can reach a trade deal. Very
interesting to hear the President say that India could face
higher tariff rates than he's agreed to with much of
the rest of the world in the frameworks we've seen
so far.
Yeah, on his way back from Scotland on Air Force one,
he said, you know, India has been a good friend,
but they charge more tariffs than almost any other country,
and throughout figures of twenty percent to twenty five percent
as potential final tariffs for India. It did just a
day ago, where the US trade representative Jamison Greer was
saying that both sides needed more time to work on this.
India seems to be targeting some sort of an agreement
later in the fall. It's clear from what we've seen
in the recent weeks that those talks have been very
complicated and very in depth. But twenty to twenty five
percent maybe more than what India is looking for, So
I think they're still going to be pushing for a
lower figure that other countries have gotten.
In our last minute bill, I know you're monitoring the
earthquake situation after what happened in Russia overnight. What's the
latest on that.
Well, just in the last couple hours, some of the
tsunami waves, the multiple waves have started rolling in to
the west coast of the United States overnight. That's going
to continue. This was a huge earthquake eight point eight
off the coast of the Champcot champ Katka Peninsula, and
that's the biggest earthquake recorded since twenty eleven. So far,
no major damage being reported in places like Hawaii and Alaska.
Officials have been warning people to get away from the
coastline and stay there until it's a there's an all
clear signal sent out.
This is Bloomberg Daybreak, your morning podcast on the stories
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