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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 son President Trump's trip to Asia. He is now in South Korea, the head of tomorrow's crucial meeting with Chinese President She Jenping and an APEX CEO summit. The President outed the close relationship between the US and South Korea.
So we're partners, We're serious partners. We're really we're wedded, and we have a very special relationship, a special bond. In fact, we're working with you on shipbuilding where you're going to come in. We were the number one in the world during World War Two. We've produced a ship a day, can you believe it.
And on his way to Korea, the President predicted he would lower tariffs on Chinese goods over fentanyl, and he also said he'll speak with President she about access to Nvidia's Blackwell AI chip. That would be a major concession if it is included in a trade deal. Ahead of time tomorrow's meeting, China booked its first purchases of US soybeans this season. Source is tell Bloomberg at least two
shipments are booked for delivery later this year. In exchange, the US is holding off on threatened software export controls against China. The White House official says President's Trump and she will meet mid morning tomorrow, though the exact timing has yet to be determined.
Well, Nathan and Washington. It is now day twenty nine and the government shutdown. If it extends today thirty one this Friday, members of the military, we'll start to miss paychecks. Vice President JD. Van says he thinks the Trump administration can work around that.
We do think that we can continue paying the troops at least for now. Or we've got foodstamp benefits that are set to run out.
In a week.
We're trying to keep as much open as possible. Would you see the Democrats actually help us out?
And Vice President Vance spoke after a meeting with Republican senators on Capitol Hill. He's not saying how the troops would be paid. Meantime, twenty five states, including New York and the District of Columbia, are suing the Trump administration over expiring food stamp. Then they're arguing the White House must use nearly six billion dollars in contingency funds to keep the program running as long as possible.
Certain of the FED now Karen J. Powell and company are widely expected to cut rates for a second straight meeting later today. But will there be more cuts ahead? Bloomberg's Michael McKee is in Washington with a preview for Wall Street.
Today's meeting is less about what's now than it is about what's next. A quarter percentage point ridcut is baked into markets. What investors want to know is are further cuts coming, perhaps as soon as December. That's going to be a tricky question for the FED and Chair Jaypowell. They're not providing new economic forecasts at this meeting, and there's not much data these days on how the economy
is performing. We may get some indication of which way policymakers are leaning if there are significant descents, either to cut more or stand still. Traders will also be watching for an announced end to qt the Fed's balance sheet runoff. Michael McKee, Bloomberg Radio, All right.
Michael, thank you. In addition to that Fed decision, investors will also be looking forward to earnings from a trio of big tank powerhouses in Bloomberg. John Tucker joins us with the preview. John, Good morning, Yeah.
Good morning caring.
Yeah.
Today we're going to hear from Microsoft Meta Platforms and Google Parents Alphabet and that's where Aaron Castler of Seaports Securities is focused.
I think Google's probably benefiting the most right now from AI, both on its Google Cloud platform as well as leveraging AI for advertising as well.
And investors trying to figure out whether the billions that have been poured into computing infrastructure will keep flowing and ultimately deliver returns well. The Magnificent seven Group is projected to deliver profit growth of fourteen percent in the third quarter. That's nearly twice the eight percent expended profit growth for the broader S and P five hundred, but also would be the slowest pace since the first quarter of twenty twenty three. Apple and Amazon. They open their books to
investors tomorrow in New York. I'm John Tucker, Bloomberg.
Crady, all right, John, thank you, and staying within the big tech. Shares of Nvidia are rallying this morning on more than three percent, and for more and what's behind the move? We're joined by Bloomberg's Lisa Matteo, Lisa.
Good morning, Nathan. Yet it has to do with Nvidia's Blackwell chips. Months ago, President Trump said he'd consider allowing the company to export a downgraded version of them to China. Well, now, just ahead of his highly anticipated meeting with Chinese leader Jijinping, those flagship AI accelerators there now on the agenda, with President Trump saying, quote, we'll be speaking about Blackwell's now. This is a big turnaround from Washington's year's long campaign
to curtailed China's progress and artificial intelligence. Yesterday, CEO Jensen Wong spoke about the company's future partnerships. Also downplayed fears of an AI investment bubble.
AI has now become good enough because of reasoning capability, research capabilities, its ability to think. It's now generating tokens and now generating intelligence that's worth paying for.
And that's CEO Jensen Wang at a Video's GtC event in Washington, d C in Nvidia on track to become the world's first five trillion dollar public company. Lisa Matteo, Bloomberg Radio.
All right, Lisa, thank you. Well. We're also tracking the path of Hurricane Melissa this morning. It's made landfall in Cuba after pummeling Jamaica as one of the strongest Atlantic hurricanes on record, and Bloomberg meteorologist Craig Allen joins us with the latest. Craig, good morning, Good morning.
It was a very interesting night bag with the hurricane going back up to a category four at one point while it was over the water. Now that it has made landfall, this second landfall over eastern sections of Cuba, about sixty miles to the west of Guantanamo, it is beginning to weaken just a little bit once again over land. The category three with one hundred and fifteen mile per
hour winds, still a major hurricane. There's still going to be major damage across eastern sections of Cuba, and then after that we have the storm moving off to the north and east at about ten to fifteen miles per hour. So unfortunately the Turks and Caicos as well as most of the Bahamas are under a hurricane warning as well.
Yes, we will all right, Bloomberg Meteorologists Craig Allen, thank you.
All right, Carol, Well it's for the markets. We'll turn back there. With futures mixed this morning. SMP futures or a touch higher. After another record close on Wall Street, at Yard Denny of yar Denny Research thinks stocks are headed even higher.
I think the bull market continues here. We've still got some good news ahead, and some of it's been discounted, of course, but the Fed is expected to lower the Fed funds rate two more times this year, so that would get us down to three point five percent. By the way, I don't think the economy really needs it, so a lot of this stimulus is probably going to feed the bull market.
At Yard Anny of yard Denny Research predicts the S and P five hundred will reach seven thousand by the end of the year.
In Europe, bank earnings in focus once again as a trio of big banks report. Let's go to London and get the very latest at Bloomberg's U and pass you and good more.
Karen and Nathan.
A beat from UBS, a beat from Santander, and a beat from Deutsche Bank, Germany's biggest lender, reporting a nineteen percent rise in revenue at its fixed income trading unit, outpacing estimates over in Switzerland, the UBS posting net income of two and a half billion dollars for the latest three months, smashing estimates for one point four billion dollars. The results supported by a release of provisions related to
the settlement of a tax evasion case. And to finish off, the Trio, Spain's biggest bank, posting its sixth consecutive quarterly profits record, Santadere, boosted by better results from the US and lower provisions for souring debts. In London, I'm ewing pots Bloomberg.
Radio Time now for a look at some of the other stories making news in New York and around the world. Then for that, we're joined by Bloomberg's Michael Barr.
Michael, good Morning, Good morning, Karen. Israel's army says it began reinforcing the Gaza ceasefire agreement. It comes after Prime Minister Benjamin Netanyaho ordered forest strikes against Amas in response to attacks on Israeli soldiers and Gazim. Meanwhile, President Trump was asked about Israel accusing of Mos violating a ceasefire order by not returning all the bodies of hostages and allegedly firing at an idea of soldier.
Nobody knows what happened to the Israeli soldier, but they say it with sniper fire, and it was retribution.
For that, and I think they have a right to do.
The President spoke with reporters on Air Force One. The Border patrol commander in charge of President Trump's immigration crackdown in Chicago is being reined in by a federal judge. US District Judge Sarah Ellis gave Greg Bovino an earfull about the tactics he and his agents are using and ordered him to start providing her with briefings every day. The US military struck four alleged drug vessels in the Pacific.
Authority say fourteen people were killed and one survived. President Trump claims the alleged drug trap is being orchestrated by Venezuela's authoritarian leader, Nicholas Maduro. Former Defense Department official Mick.
Mulroy, Essentially, there's about twenty percent of our naval forces are now in the Caribbean, which is very unusual. It's simply not needed to do narcotics operations to hit these small boats.
Maduro's government says President Trump's real goal is not fighting drug trafficking, but a forced regime change in Venezuela. It is the eleventh time in less than two months, the US has carried out strikes on alleged drug carrying vessels. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update. Here's John stash Hour.
John, good morning, Good morning. Care On the Toronto Blue Jays were coming off losing in eighteen and inns. They had to play World Series Game four without George Springer. He had to face Joey o'tani at the plate and on the mound the Jay's trail the Dodgers one nothing, third in there's a flat on a.
Deep left center field heading back to is gone. Senior gives the Joys tame but franchise face, putting the team on his bet. I'll tell you, this guy's amazing and he's ready for everything. I mean, this is the first mistake that o'tonni has made.
On Fox Sports at stay two one until Toronto scored four times in the seventh and the Jays won six to two to tie the series at two. O'twni, after his Game three heroics zero for three at the plate and was the losing picture. Toronto manager John Schneider asked about the Guerrero homer and the seventh in a rally.
It's a huge swing to get us going, and I think that gives you some momentum, and you know, show he settled in, struck out quite a few in a row after that, but you know, our bats there kind of just it was a Blue Jay inning, you know what I mean, varsh Ernie and then he kind of went to work. But the swing from Vlad was game changer.
Game five tonight Saint Pitchers was Game one the Dodgers Blakes now the Blue Jays go with Rookie Tree, Yes Savage Nickson. Milwaukee had a twelve point lead at halftime, back came the Bucks to win one twenty one, one to eleven. Giannis to the cupbo thirty three minutes, thirty seven points. Jalen Brunson led the Knicks with thirty six Rangers a two to nothing winning Vancouver sixty fourth career shutout for Jonathan Quick. Islanders lost in Boston five to two.
The Devils.
Eight game winnings Dray came to an end and eight to four loss of Colorado Dallas over the Capitols won nothing New Orleans Saints one and seven, beating only the Giants. They're making a quarterback change. Twenty six year old rookie Tyler Schoff willing to play Spencer Rattler. The Baltimore Ravens played tomorrow night in Miami. Lamar Jackson will return after missing three games with injured hamstring. John Stashan, We're in Bloomberg Sports Karen Ncoln.
Stay with us. More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio nationwide on Serious Exam and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager, and the key event of President Donald Trump's to a trip to Asia is now just a day away before his face to face encounter tomorrow with Chinese President she Jinpaning. The President is telling business leaders in South Korea today he expects a good outcome.
President Chief China is coming tomorrow here and we're going to be uh.
I hope making a deal.
I think we're going to have a deal. I think it'll be a good deal.
For both.
That was President Trump speaking at an APEX CEO summit in South Korea. Joining us for more this morning from Hong Kong is Bloomberg's Jill Desis and Jill. Some of the commentary that we're hearing from the President ahead of this encounter is pretty interesting. This idea of lowering tariffs on Chinese goods related to the fentanyl crisis, as well as talking about Nvidia's black welch with President she that would be pretty major.
Good morning, Good morning, Nathan. Yes, I mean, you know, first of all, I want to make clear, you know, a lot of what's been building up to this particular meeting between President Donald Trump and Shei Jinping has already been really widely telegraphed. You kind of get the feeling like from you know, the broader Trump administration that you know, they've been working behind the scenes for at this point
weeks to try to smooth over a deal. We did actually get a sense of that broad framework agreement actually over the weekend, So this does kind of feel like in some ways, you know, maybe there's some attempts to to you know, not have too many surprises here. Although obviously we've heard from Trump himself today, who did put
out some of those really really interesting comments. So first of all, him saying that, you know, he's he thinks that China is going to make, you know, making some sort of favorable moves on the what he called the Fentanel situations. That idea potentially lowering tariffs there I think
would be fairly significant. You know, there's other media reporting that Trump is considering cutting what's a twenty percent tariff to as low as ten percent on Chinese goods over fentanyl in particular, So that's something that we're certainly keeping an eye on. But it really is those Nvidia comments as well that I think are really really interesting. So what Trump was suggesting here is that he was open to providing China with access to this Blackwell AI processor
from Nvidia as part of any trade deal. I mean, that would be a major concession. I imagine that national security hawks in Washington maybe not too particularly happy about that idea, but it does seem like that's something that could come up in these talks, and.
It's something that's certainly getting the market's attention this morning. I mean, how significant would that be? How difficult would it be to make that part of a trade deal given the significant restrictions that are already on in video right now, not just from the US, but from China as well.
Yes, that's right, and that's actually something that chief of Nvidia, Jensen Huang, has actually said. I mean, he noted that Trump is actually licensed in Vidia to to China, but it's China that's blocked them from being able to ship to China. That's from Johnsonhang himself. He was speaking at a company in Washington. I think, you know, look this there has been a lot of back and forth this year.
A lot of this really does come down to not just sort of the overall trade agreement, but also basically some pretty significant national security concerns about what it would mean to supply China with any kind of advanced chips
that's being made by an American company. You know, we did see earlier this year there were some concessions in the form of the US government saying that it would approve licenses for a particular type of Nvidia chip that was designed to comply with export controls, not to ship over like extremely invansed technology. You know, obviously that hasn't occurred, So it does seem like there would be some significant hurdles to actually getting something like this over the line,
you know. I mean, look, Trump goes into a lot of these types of meetings, you know, saying a lot of things. I think there's still some consideration over what that back and forth actually looks like. So it's not really just about even what the President says tomorrow, but also what some of these deals look like. We actually get some really really hard specifics.
Oh, we should get some idea in the hours to come. The White House is saying that this encounter is going to happen mid morning tomorrow in South Korea. So it's just as we say, hours away, thank you for this. Jill really appreciate it. That is Bloomberg's Jill desis ahead of the Trump. She meeting with us this morning from Hong Kong.
Karen Nathan, we want to get the latest on Hurricane Melissa, and we're joined once again by Bloomberg meteorologist Craig Allen. Craig the storm making landfall in Cuba. It's a little weaker than it was when it hit Jamaica, but still a major system.
What's the latest, Absolutely one hundred and fifteen mile per hour winds. It did go back up to a category four last night while over the water and heading towards the eastern coast of Cuba, made landfall around Santiago de Cuba, and it is that's the second most populated city over eastern sections of Cuba there and right now is about sixty miles to the west of on Toonamo. So we have one hundred and fifteen mile per hour winds. The winds are down a little bit, just like you said.
At the same time, though the rain is continuing. The storm surge is going to continue right through the day today and then we'll take off to the northeast at about ten to fifteen miles per hour, a little bit faster than it was yesterday. That is a good thing to try to get it out of any particular region.
But the southeast Bahamas are now under a hurricane warning, so the Turks and Caicos probably won't be a direct hit on some of the areas like Nassau or Freeport or the other portions of the Bahamas where there's major vacation or tourism, but the Turks and Caicos too will also feel the effects of the storm today.
And does that mean the US is in the clear, then.
Well, the US is in the clear in terms of any kind of direct hit. You're absolutely right, and there will be some rough surf and I would think rip currents along the southeast coast as the storm tries to pull away, But a direct effect with any kind of rain and wind is highly unlikely. The storm is going to take a track to the north and east, and by the time we get to the end of this week,
you know who's next. Once again, Bermuda likely to see winds that will gust up to about one hundred, one hundred and fifteen miles per hour there too, as the storm takes off to the north and east. So it's still a Category one at least by the time it gets to Bermuda and then takes off into the North Atlantic. Fortunately, as I said, the East coast of the United States will not feel any direct effects.
Okay, but it sounds like this storm has some staying power. Then how long is it going to be to us?
Yes, hey, you know that's right. It goes into the North Atlantic, it takes the entire week, But talk about staying power. As soon as it moves off Jamaica, it reintensified once again, could briefly reintensify when it moves off Cuba a little bit later on this morning, but then
it will go down. There are other factors there. The water is not quite as warm, there's more wind sheer, and therefore I don't think it'll be able to get as strong as it ever as it was once again in the rest of Melissa's life.
All right, well, what's behind Melissa?
Is this the end of it?
Or do we have to watch anything else?
Well, the hurricane season officially runs until November thirtieth, so there could always be another system. But right now, I'm happy to say that the rest of the Gulf, as well as the Caribbean and the Atlantic basin are pretty quiet. For the time being. There's nothing more to watch for at least another two to five days.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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