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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
And Karen, we begin with big news in the chip industry in Nvidia plans to resume sales of its EH twenty AI chip in China, and that has shares of the world's most valuable company up four and a half percent in early trading to a record. This morning, we get more on the late breaking developments from Bloomberg's Tom mackenzie.
You just need to put this in the context of the last few years of continuingly tightening restrictions when it comes to export controls, both under the Biden administration and under the Trump administration, and the tightening of those export restrictions has not seen any let up atol between both administrations until now. And now you have a U turn on an export restriction that was implemented in April, cutting
off the supply of these H twenty AI accelerators. We haven't heard this directly from the US government, but in video put out of blog post saying they will in short order be able to resupply these H twenty chips into the Chinese market ware. By the way, the CEO Jensen Hunk currently is for a supply chain conference in Bloomberg.
Sim mackenzie says the move may add billions to in Video's revenue this year, restoring its ability to fulfill orders it had written off his loss due to government restrictions.
Nathan, we have new developments this morning in the global trade war. The European Union has finalized a list of counter measures to target US goods worth eighty four billion dollars. And we go to London and get the latest with Bloomberg's un parts you.
And good morning, Karen and Nathan.
American cars, bourbon whiskey, and Boeing aircraft. They're all on the EU's finalized list of countermeasures should it decide to retaliate against Donald Trump's tariff policy. In total, Brussels would target eighty four billion dollars worth of US goods. This after the EU's trade scheees, so that Trump's tariffs, set to kick in on August first, would be effectively prohibitive to transatlantic trade, so expacting the two sides are continuing in London.
I'm Umpot Spinberg Radio.
Turning back to markets now, Karen bank earnings are about to take center stage. JP Morgan, Chase, Wells Fargo, and Citygroup all report before the opening bell. We get a preview now from Bloomberg Global Financial correspondent Shanalie Bassik.
JP Morgan is kicking off big bank earnings and the valuation has risen materially through the course of the year because investors expect more and more M and A deals to come through to fuel investment banking gains and net interest income to hold up strong with interest rates relatively high. Now, the question is who's winning in the Wall Street game? Is JP Morgan going to bring in more trading revenue than its two big investment banking rivals Morgan Stanley and
Goldman Sachs, which report the following day. We'll also be hearing from Citygroup and Wells Fargo, and the question will be around how much more net interest income can be squeezed out of the US consumer in New York. I'm Shinali Basic Bloomberg Radio.
All right, Chanelle, thank you. It's also a big day on the economic front with a key reading on inflation this morning at ain't thirty am. Wall Street Time, we get the consumer price index for June and we get a preview with Bloomberg's Charlie Pillett.
Wall Street will be focused on how much of an uptick we might see an inflation because of tariffs. Christina Hooper is chief market strategist at Man Group.
We could certainly get a significantly higher number if we look at the Cleveland Fed now cast core CPI is tracking at about three percent year over year.
The economist survey by Bloomberg are looking for a year over year gain in the core CPI excluding food and Energy of two point nine percent in New York. Charlie Pellett Bloomberg Radio Night, Charlie, thank you.
And as we await that key inflation report, speculation is growing about who will eventually replace j.
Powell.
The Washington Post is reporting the White House economic advisor Kevin Hassett is emerging as a leading contender to become the next FED chair. Hassett was a key advisor in President Trump's first term. The Payer says the president thinks he'll be more responsive to lowering interest rates. Powell's term as chair doesn't expire until May.
Karen.
President Trump is threatening new tariffs on Russia over its war in Ukraine. President aired his frustrations in an Oval Office meeting with NATO's Secretary General Mark Rute.
We are very.
Unhappy, I am with Russia. But we'll discuss that maybe a different day. But we're very, very unhappy with him, and we're going to be doing very severe tariffs if we don't have a deal in fifty days.
Tariff said about one hundred percent.
President Trump said the duties would come in the form of secondary tariffs. He has used that term before for import taxes on countries that do business with America's adversaries. The President also says the US is sending top of the line weapons to Ukraine paid for by NATO member States Secretary General Rutas says all of it should send a message to Russia.
I would reconsider what I should not take negotiations about Ukraine more years lead, and I was doing a dumment if I was, But when Ukraine, I think this is really great an interest for that.
NATO Secretary General Mark Ruta says Germany, the Nordic States, and Canada would play a major role in fulfilling Ukraine's military needs.
Nathan As President Trump and NATO look to support Ukraine, China is pushing to deepen its ties with Russia. Chinese President Xijin Ping me today with Russian Foreign Minister Sergei Lavrov in Beijing. China's Shinwa News Agency reports President she also met with top officials in the Shanghai Cooperation Organization, a group set up by both China and Russia. The Chinese leader is also putting a focus on his country
struggling property sector. Shinwa reports he called for a measured approach to renovating urban villages and dilapidated houses from this week's Central Urban Work Conference. Last year, the Chinese government promised to renovate a million older rundown homes in large cities. 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.
Good Morning. Care and heavy rain caused damaging flash floods in New York, New Jersey, Connecticut, Pennsylvania, Virginia, and Maryland. Six to ten inches of waterfell in parts of the East Coast. In Plainfield, New Jersey, the rapid rainfall turned streets into rivers, stalled out cars, rushing past homes and knocking down trees.
I've never seen flooding like this.
To sat there, I'm sure the car, I mean, there's nothing I could do with this is ruined.
So time for new car.
The storms prompted New Jersey Governor Phield Murphy to declare a state of emergency. In New York, multiple subway stations were inundated, forcing the MTA to suspend or severely delayed operations across several lines. Residents across the Texas Hill Country are on alert as heavy rains produce more flooding and creeks are bursting their banks, just ten days after awful floods hit the area. The July fourth flash floods killed at least one hundred and thirty two people along the
Guadaloupe River. The number of people still missing has dropped to one hundred and one as more victims have been identified and more of the missing accounted for, and officials warm the search could last up the six months. Kerr County Judge Rob Killing.
It's the tourist that came in for the fourth weekend the concert fireworks.
We don't know how many we lost.
We've heard accounts of trailer after trailer after trailer.
Being swept into the river with families in them. You can't find traders.
Former New York Governor and Jrew Cuomo officially announced that he will campaign for New York City mayor as an independent candidate. In a video posted to social media, Cuomo vowed to run against Democratic socialist Zoron Mamdani, who defeated Cuomo in last month's Democratic primary.
For the next few months, it's my responsibility to earn your vote.
In a letter sent to supporters, Cuomo pledged that if the polls show that he is not the highest ranked challenger to Momdane by mid September, he will drop out of the race. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barn. This is Bloomberg Hemick.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by Flushing Bank. And here's John Stanshauer.
John, good morning, Good morning care.
The home run Derby and Atlanta began with a five hundred and thirteen foot blast by the Pirates O'Neil Cruz cal Raleigh Seattle switch it and catcher who leads MLB this season with thirty eight home runs. Nearly knocked out in the first round, he advanced in a narrow tie breaker with the eighth brin Rookery, then beat Cruise in the semifinals, and Raleigh defeated Sampa Bay's junior Camerinaro in the finals eighteen to fifteen. The Yankees Jazz Chishem finished
a distant last. He only managed three home runs.
Nah, yeah, what do you leave?
Was it fun?
I had a lot of fun. I enjoyed every second of it.
In one of three Yankees in tonight's game, joining Aaron Judge and Carlos Rodonoo replaced his Yankee teammate Max Freed. The Mets have Francisco Lindor in the starting lineup, also Pete Alonzo, Edwin Diaz, and David Peterson, and was some controversy with the late edition of Milwaukee rookie pitcher Jacob Misterlerowski. Since he's only pitched twenty five innings, it's only allowed twelve hits, has thirty three strikeouts. His manager tonight is the Dodgers Dave Roberts.
This young kid to be named All Star I couldn't be more excited for him. He is thrilled to be here. I'm going to get him in there probably the fifth of the sixth inning, something like that, the seventh, and it's going to be electric. So the fans, the media, you're gonna love it.
Aaron Brunell managed the American League, who has won ten of the last eleven All Star Games, twenty two of the last twenty six that Jets have locked up white out Garrett Wilson with a four year, one hundred and thirty million dollar extension ninety billion guaranteed. He's now signed through twenty thirty. Good news for the Spurs. Their young star Victor Webbin Yama cleared to play next season. He has stopped playing.
Back in fifth be our do to a blood clot. John stashy Our 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 Apple.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
It is a major reversal from the Trump administration that is giving markets to lift. This morning particularly in the tech sector. In Nvidia says it has the governments go ahead to sell its H twenty artificial intelligence chips again in China, a move that could add billions of dollars in revenue at what is.
Already the world's most valuable company.
For more, we are joined by Dan Ives, global head of Tech research at Webbush Securities.
Dan, good morning.
We are certainly seeing a positive reaction in the stock price for in Vidia this morning. Your reaction. What does this mean in terms of in Vidia's overall growth strategy?
Good morning, And it's a game changer, because what this means is that now got thirty billion plus a business like back in the table for in video. I remember that China business when that got taken away, that was given to Huawei in a silver platter. So this is not just bullsh for in video, it's bullsh for the tech sector. And I believe it's a positive tea leave around us try and negotiations. Given this chip on.
The table, how is it positive for the overall tech sector? What's the read through from Nvidia getting this go ahead?
Well, what this means is now you're going to have called thirty to forty billion more business for Nvidia and potentially fifty billion and onwards over the next one two three years as a ripple effect for that across suppliers and across the whole in Vidia ecosystem. The other thing that that's important is that you were essentially handing Huawe in a silver platter of this business. Now that's not happening.
So it's very positive for the US tech sector, even when you start to think about hyper scalers, chips and called the second third derivatives that now play out relative to those dark days in April.
When it comes to the AI arms race though between the US and China, to have in Vidia's backing for the Chinese AI sector, does that give China more of an advantage over the US.
I actually think it gives the US more advantage over China. Be China Beijing News. There's only one chip in the world feeling the AI revolution. It's in video. They want
the best chips, they don't want necessary quality chips. So this gives Nvidia to event the last thing you want is to basically exit out for Nvideo and hand that to Huaalwet, and that would ultimately give China and make them more powerful when it comes to AI, and I think Trump ministration knows that when Jensen and Trump met last week, I think there's an understanding from the Trump administration that this is an important historical moment in this AI armsers to.
Your point, this does come just a week after Jensen Wang met with President Trump. What does this tell you about the relationship that Jensen Wang has with the president. Is it a good idea to have a close relationship with President Trump after what we saw with Elon Musk just a few weeks ago.
Sure, I mean, I'm sure. Look some will will make the comparisons. I think it's different because Trump needs Jensen not just politically. But we start on the Middle East trip right who is right next to him? It is Jensen. But he understands that Jensen understands the AI market better than anyone out there. He needs Jensen support just like the onshuring and all the job creation. But on the other hand, Jensen is not going to be on the
outside looking into China market. So it speaks to why this relationship is so important between Trump and Jensen.
Could this relationship have some kind of effect on the ongoing trade difficulties that the US and China still have even after the breakthroughs in Geneva and London.
Oh, I think this is a positive signal around the US China legoizations, which is the US doing this they're now reading videos sell into China has been to be huge positive for deal negotiations.
So what do you see going forward?
I know that Jensen Wang is attending a government sponsored conference in China as well. Could we see more breakthroughs coming after? You know, the US hasn't really confirmed that this go ahead for the age twenty chips has gone forward? But could we see more coming in video's way?
Oh? Yeah, I would expect over the next twelve hours positive statements from China around there now would show further t leaves in video could get more big. And let me tell you, it's not a happy camper Huawei because they thought they had a green light and now the big dog came back in And that's in video.
Of course, in videos trading at a four trillion dollar market cap already days after it was predicted. Do you see in video hitting a five trillion dollar cap anytime soon?
And if so, when?
Look me and you've talked about it along with our good friend gene monster. I believe it's a matter of when, not if five trillion gets hit. I mean we think in twenty twenty six or potentially. You know what is when you see that, because this is shows there's one ship in the world you want to it's in video and I see a five trillion dollar markup on the horizon.
And as we say in videos, trading up five percent in the pre market right now, following this news from a blog post from in vide that it has gotten the go ahead to sell the H twenty chip once again in China. Dan Ives, thanks for joining us from the airport this morning. Really appreciate getting your time following this breaking news. Dan Ives, of course, is the global head of tech research at Wedbush Securities. Coming up on five nineteen on Wall Street, let's stay on the topic
of tariffs. It is topic A four markets and for trading partners around the world, with the European Union in particular now racing to reach a trade deal with the US before the August first deadline, with the President says higher duties will kick in barring that. The EU has now put out a second list of US goods that could be hit with counter tariffs. For more on this joining us from Brussels is Bloomberg Daybreak. You're a banker, Stephen,
Carroll and Steven. It's a pretty exhaustive list, more than two hundred pages.
Give us the highlights. Good morning, good morning.
Yeah.
Look, it's seventy two billion euros eighty four billion dollars worth of good that are targeted in this second package of retaliations. It's dominated mainly by industrial goods, so aircraft worth a rut eleven billion euros, machinery worth about nine billion euros. Cars are in there as well. We've also got agrifood products around six billion euros worth of US agrifood products would be hit as well. Fruits and vegetables, Alcoholic drinks in there too. There's also some precision equipment
and instruments in there too. Even some toys managed to make the cuts as well, and musical instruments if you can believe it. Now, some things we know are excluded from the list. Imported military products, for example, won't be subject to any duties. And this was a list that was drawn up in response to You'll have to go back a few steps in this trade dispute to find it. It was the twenty percent reciprocal tariff before that was reduced to ten percent, before it was up to again
to thirty percent. If you're still following me, So this is a list that actually responds to an earlier move by the Trump administration to impose tariffs. It is like the other list that was responding to the steel and aluminum tariffs suspended until the first of August. But it is an attempt by the European Union to show that
it is ready to respond. It's choosing not to for now because it's leaving space for negotiations with the US, but it is nonetheless showing I suppose a bit of teeth about what the EU could do if those talks don't go to plan.
So, as you mentioned, it doesn't include military equipment, so the list might not have been as exhaustive as it could have been.
Is that the sense we're getting. Well, it was initially reduced.
The initial value that was put on this list was ninety five billion euros. That was the list of products of the European Commission had initially identified as this stage of its response. That got reduced to seventy two billion euros. There were some things knocked off the list that was after consultation with industry and with member states as well, because of course this is a list that has to be signed off by the twenty seven members of the European Union, so they get to have their say when
the Commission makes an announcement like this as well. They still, by the way, have to sign off on this finalized list of seventy two billion as well. But we're told this is where the compromise has arrived at. So they have scaled back some of those things that they're expected to hit or that could potentially hit with tariffs as well, and that's sort of an indication of there's some divergence of opinion among European countries about how exactly they want
to respond to what Donald Trump is doing. We heard from all those trade ministers filing into a meeting yesterday morning here in Brussels talking about not being willing to hold back on retaliating for now to allow space for negotiations, but ultimately wanting to show that they were ready to retaliate if that became necessary. Now, the latest that we've heard in terms of talks, we know that Marschefovich, the EU Trade negotiator was due to speak to his US
counterparts late yesterday. We still haven't heard anything about how that particular meeting went, but Mahrscheftovitch had said that the threat of thirty percent that Donald Trump came out with over the weekend was unacceptable and prohibitive to any trade between the EU and the US. We know that European countries are very worried to differing degrees about what impacts the tariffs could have if eventually they do coming to
force at the level they're currently threatened. But I would just note a key survey coming out of Germany this morning, the ZW industry survey and investor confidence actually improving in the last month that they measured as well. Now, it came before the thirty percent tariff threat, but the survey was done in early July, so it's not that out of date either, showing that actually, despite the threat of tariffs, the business sentiment in Europe's largest economy is turning more positive.
And in our last minute Stephen, this is coming, of course, after our earlier reporting that the EU was looking to expand outreach to other countries that have come under the US tariff crosshairs. How does this list put that into context?
I mean, look, it's an added thread of the strategy the European Union is working on. They're also, of course, trying to de escalate with the US, but looking for alternatives. We heard that from Teresa Rivera, the European Commission's vice president, who was in Shiny yesterday, talking about the possibilities that they might have to expand with Asian partners.
As well.
There was the conversation between Mark Karney and our Slavanga line.
Yesterday as well.
This is the EU, I suppose, keeping its options open, making sure that if things don't go as they planned, because although they're all sounding very hopeful, they're also quite worried as to how things might turn out between now and the first of August. They want to make sure that they have other options if things don't go well in those talks with the Trump administration.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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