US-China Negotiate AI and Trade; Trump's High Stakes UN Speech

0:02 Bloomberg Audio Studios. Podcasts.

0:05 Radio.

0:06 News.

0:10 Good morning, I'm Nathan Hager.

0:11 And I'm Karen Moscow. Here are the stories we're following today.

0:15 Karen, we begin with the latest from the United Nations General Assembly. In just a few hours, President Trump addresses the global body. The president may also meet with his Iranian counterpart, Massoud Poseshkin, on the UN sidelines, along with other Persian Gulf leaders, as risks remain around the Strait of Hormuz. The UK says a tanker was struck in the waterway yesterday. And British Prime Minister Andy Burnham says his countries agreed to provide support to Saudi Arabia as it faces attacks from the Iran-backed Houthis. We get more from Bloomberg's Stuart Livingston-Wallace in Dubai.

0:45 It is aerial refueling, and that, you know, I think will be taken as a positive by the Saudis. But it's a far cry from what we saw in, what was it, 2004, 2005, when the UK was directly engaged in attacks on Houthi positions elsewhere. over many, many months.

1:00 Bloomberg's Stuart Livingston-Wallace reports the U.S. has not said it will help the Saudis beyond the intelligence it already provides, but the New York Times reports President Trump has considered joint strikes against the Houthis in recent days.

1:12 Well, ahead of the president's address, Nathan, the U.S. and China have wrapped up a second day of talks on artificial intelligence, trade, and investment. China's vice finance minister says the discussions focused on delivering what's already been agreed to by the lead negotiators. All this leads up to the high-stakes summit between Presidents Trump and Xi Jinping in Washington, and Bloomberg's Stephen Engel is there.

1:34 Now we have to see whether the two sides can agree to a potential extension of their current one-year trade truce, which does expire around November 10th. Now, Jameson Greer, the U.S. Trade Representative, telling Bloomberg News that... He actually prefers an extension, if it does happen, of between three to six months at most. That way they can kind of make sure that China is complying with their commitments under their trade agreements. Now, the Chinese, from what we're hearing, would agree a much longer extension, maybe upwards of two years. That way they would have more time to fulfill those commitments. Stephen Engel, Bloomberg News, Washington.

2:14 Stephen, thank you.

2:14 Back in New York, President Trump is set to sign a security deal with Denmark and Greenland that will end a bitter dispute over the Arctic island. The deal will expand Washington's military role without granting the U.S. ownership or outright control of Greenland that President Trump once sought. This will leave Greenland under Danish sovereignty. Sources say the U.S.

2:35 plans to reopen one military base in southern Greenland and establish a second site on the territory's east coast.

2:42 Well, Nathan, all this comes after President Trump had a face-to-face meeting with New York City Mayor Zoran Mamdani at Gracie Mansion. The two leaders have traded plenty of barbs over immigration and ideology, but they put all that aside in a surprise joint appearance before the camera.

2:57 I have said time and again that I will work with anyone, no matter what party they belong to, no matter how much you may disagree on other topics, whoever has the power and the will to lift that weight off New Yorkers' backs.

3:09 And alongside Mayor Mamdani, President Trump said he has high hopes for New York's leader.

3:14 I certainly hope he will be a great mayor. You have to understand, I want what's good for New York. I want what's good for the country.

3:20 And that audio, courtesy of WABC in New York, Mamdani said he brought up the issue of the Trump administration ending temporary protected status for Haitian migrants in the U.S. The president said they also discussed a plan to build thousands of homes over Queens' sunny side yard, which he says will require federal funding and approvals.

3:41 And Karen Mayor Mamdani also says it's important to engage the press days after President Trump banned CNN, MSNOW and Politico from the White House. All three outlets are now suing, saying it's a direct assault on the First Amendment. President Trump says he doesn't see it that way.

3:56 I think I have an obligation not to let fake news. They're very bad for the country, very bad for national security. So I have that obligation. So we'll see how it works out.

4:05 President Trump again speaking from Gracie Mansion. The three outlets are asking a federal judge for a court order to immediately reinstate their White House access while their lawsuit proceeds. The judge has set a hearing on that tomorrow.

4:16 Nathan, the FAA says it has resolved the equipment outage at an air traffic facility in Philadelphia that severely disrupted air travel in the Northeast. Hundreds of flights were canceled at the Newark, LaGuardia, Kennedy and Philadelphia airports yesterday. Transportation Secretary Sean Duffy said the primary and backup lines were fixed by Monday evening and all airports in the Northeast were operating again. FAA Administrator Brian Bedford stressed the importance of funding to replace the old infrastructure.

4:44 This is why we're asking for budget to replace all of this stuff. This is what we refer to as fence. the Federal Enterprise Network. So today, the data architecture is the same. We're pulling copper up and putting fiber down, but it's the same data architecture that we've had for 50 years.

5:01 FAA Administrator Brian Bedford, there may be some residual delays this morning.

5:06 Let's turn to markets now, Karen. The AI-led rally is stalling this morning. South Korea's KOSPI index was little changed after surging 2.3% earlier in the session. NASDAQ futures are little changed to the downside following yesterday's 2.25% rally. Those gains were fueled by meta platforms. That stock jumped 11% on early signs of success yesterday. for its new AI agent.

5:30 Bloomberg Intelligence's Mandeep Singh says it can do more than a standard chatbot completing tasks across meta apps and outside services.

5:38 This is probably the best personal agent chatbot that we have seen so far. And clearly, meta, with its rich history of consumers through their family of apps, is able to provide a lot more tailored experience.

5:56 And Mandeep Singh of Bloomberg Intelligence says investors see that driving demand for more computing power and AI chips. Shares of advanced micro devices jumped 10% to close above $ 1 trillion in market value for the first time.

6:08 Nathan, Alibaba rolling out what it calls China's most powerful AI chip. It's an accelerator to compete with NVIDIA and underpin a massive expansion of data center capacity in coming years. Alibaba is one of the biggest spenders on AI among leading Chinese players. It's committed to spending more than $ 53 billion over a three-year period to expand its AI capabilities.

6:30 And in Europe, Karen Roche says its experimental obesity shot reduced body weight by more than 15% in a mid-stage trial. The global market for weight loss drugs is estimated to reach as much as $ 150 billion. Roche plans to test higher doses of this new drug and explore combinations with other weight loss drugs.

6:52 Time now for a 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.

6:59 Good morning, Karen. The attorney for a Venezuelan man shot by an ICE agent in Austin, Texas, says he is back in the hospital after being held at a detention center. Immigration attorney Kate Lincoln-Goldfinch said Wilbur Rafael Garces Perez was making a door dash delivery on Sunday when immigration officers in an unmarked vehicle sideswiped his car and forced it to stop. Lincoln Goldfitch also says that DHS has falsely claimed that there was a foot chase at the scene.

7:28 No more traffic stops by ICE.

7:34 No more.

7:34 No more.

7:35 No more. Not one more.

7:38 ICE does not know how to conduct traffic stops safely.

7:42 Attorney Lincoln Goldfitch says that Perez was transferred to an immigration detention center without the bullet being removed. In Jackson County, Mississippi, a grand jury unanimously found that there was no evidence to support bringing charges in the death of Nolan Wells. The 18-year-old was found dead after a 4th of July trip with friends. The grand jury said they found no criminal or racially motivated wrongdoing in the death of Wells and that death was consistent with drowning. Circuit Court District Attorney Angel Myers McElrath.

8:15 What I cannot accept, what I cannot ignore... is that false narratives that Nolan's death was somehow racially motivated and that this is a case of another young black man denied justice by a racist, corrupt system were perpetuated and allowed to spread. There is not a shred of evidence to support these narratives.

8:36 DA Angel Myers-McElrath says outsiders and influencers have attempted to exploit Wells' death to divide and create chaos. California Governor Gavin Newsom has declared a state of emergency ahead of what is expected to be an historic El Nino season. The governor's move puts statewide agencies on alert ahead of winter storms or other significant weather events. Global News 24 hours a day and whenever you want it. With Bloomberg News Now, I'm Michael Barr and this is Bloomberg. Karen.

9:04 Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashower.

9:10 Thanks, Karen.

9:10 Monday Night Football was a blowout win by the L.A.

9:13 Rams.

9:13 They beat the Giants 28-6. Matthew Stafford threw four touchdown passes, one in each quarter. Two of them went to Devontae Adams. He had 195 yards in receptions. The Giants lost their quarterback, Jackson Dart, early on to a knee injury. The Chicago quarterback, Caleb Williams, has a strained hamstring. He's likely to miss some time. The Washington QB, Jaden Daniels, has a dislocated elbow.

9:36 His injury may sideline him a little longer. That's your Bloomberg Sports Update.

9:42 Stay with us. More from Bloomberg Daybreak coming up after this. Coast to coast on Bloomberg Radio.

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9:58 This is Bloomberg Daybreak.

10:00 Good morning.

10:00 I'm Nathan Hager. And in just a few hours time, President Trump steps to the podium at the United Nations General Assembly in New York with wars in the Middle East, Russia and Ukraine. High in the foreground and artificial intelligence in the spotlight as the president prepares to for his summit later this week with Chinese President Xi Jinping. Lots to discuss this morning with Bloomberg News Managing Editor Jill Desis with us this morning from Hong Kong. And as we prepare for this address, Jill, we're hearing from the main negotiator on the Iranian side. Iran's parliament speaker speaking to semi-official media there saying Iran won't surrender and will stand up to the U.S. and that President Trump cannot

10:38 impose his will on Iran. It seems to raise the stakes ahead of this speech and sideline meetings for the president today as well.

10:46 Good morning.

10:48 Good morning, Nathan. Yeah, I think that when it comes to the war with Iran, obviously, there's a lot of buzz about whether or not Trump actually may meet with the Iranian presidents this week at the UN General Assembly as well. So when you're looking at just sort of the host of different conflicts that the president himself is ultimately contending with here, all of these different world leaders that he may meet with, I do think that You know, it would be really sharp to look out for any kind of developments whatsoever when it comes to Iran, when it comes to sort of, you know, flow of traffic through the Strait of Hormuz, all of these issues that obviously we've been contending with for many, many months now.

11:25 But this does sort of present sort of a new opportunity for these leaders to actually, you know, talk to each other on the sidelines in New York.

11:33 And we are seeing Brent crude trade below $ 100 a barrel, at least at this moment. Is there some optimism getting baked into the market here that we could see something of a step forward between the U.S.

11:44 And Iran?

11:45 Well, I'd certainly want to be cautious about what any of the market moves are telling us right now, because we have actually seen oil be a bit jumpy online. markets really all over the place within the past few hours. So clearly, markets are attempting to digest the potential for any developments today. I do think that as we await, obviously, the Donald Trump speech in just a few hours from now, as we await the outcome of any of these potential bilateral talks that are happening on the sidelines here, certainly everyone is just very, very poised for any kind of developments that may impact this ongoing conflict.

12:20 Of course, we're getting ready for the summit between Presidents Trump and Xi Jinping in just two days' time. Back in Washington, there have been a lot of discussions among high-level officials when it comes to artificial intelligence, trade, investment as well. How does this set things up for what's to come on Thursday?

12:39 Yes.

12:39 Well, at this point, it does seem like, you know, the officials for China and the United States are trying to sort of, you know, keep the peace a little bit, just kind of keep the status quo. So preserve the rivalry, preserve, you know, some of these ongoing negotiations that they've had over trade in particular. There has been no official extension of the trade truce that these two nations signed last year that's due to expire. buyer in November, although it does seem like maybe they've made some progress toward doing so.

13:05 U.S.

13:06 Trade Representative Jameson Greer just told us yesterday that he sees it potentially likely that there could be maybe a three-month extension or a six-month extension of this truce as these two sides continue to negotiate. So that is one thing that we could be looking for out of that meeting. Of course, there's many issues for Donald Trump and Xi Jinping to discuss, some of which are quite contentious, whether that be the issue of Taiwan, whether that be the Iran war, artificial intelligence also expected to be on the agenda this week. So lots going on here that we're really setting the stage for what could be a very, very interesting meeting between the leaders of the world's two largest economies.

13:42 Only about 30 seconds left here. We know both sides are going to have a lot of business leaders accompanying them as well. How much could the Pentagon's blacklist of Chinese companies overshadow these talks?

13:52 Yeah, quite interesting. I mean, so this is a blacklist that ultimately prevents companies that are named it. It includes Chinese AI companies like Alibaba, Baidu, from lobbying in the United States really has been a bit of a thorn in China's side. So, you know, it could be that we see something sort of percolate there. I do think, though, that, you know, whomever may be joining along for, you know, some business dinners later this week, it's going to be really, really key to see who it is from the Chinese side, you know, that shows up here, because you've got a lot of companies that are really at the forefront of tech and AI, you know, really kind of unfolding in China right now.

14:27 This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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15:00 And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow.

15:13 And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.