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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 a Bloomberg News exclusive. The US is considering camping sales of advanced artificial intelligence chips from Nvidia and other American companies to specific countries. Source to say officials in the Biden administration are considering the move in a bid to limit some nations AI capabilities. Bloomberg's Annabel Drulers says the focus of the restrictions is on the Middle East.
This is a region we know that's looking to invest very heavily into AI data centers. In particular, they've got companies that are wanting to establish their or build up their data center presence, and they've also got very deep pockets to fund them. The Middle East, we know it's a place that has a growing relationship with China, which is what these sorts of caps were initially put in
place for was to restrict China's high tech ambition. So there is a concern that if you allow companies like Nvidia AMD to export to third party countries, those chips could still make their way to places, particularly to China.
Bloomberg's Annabel Drulers says the deliberations are in their early stages now. The news of this possible overseas sales cap broke just hours after in Vidia's share price hit its first record close since June this morning, and Vidia shares are down more than one percent in early trading.
Well, Nathan, we're also following bank shares this morning as we get earnings from the financial industry, and we get a preview from Bloombergs and Ali Bosik.
We're awaiting third quarter earnings from Bank of America, City Group, and Goldman Sachs. And remember it's the first earnings report since the Federal Reserve started its interest rate cutting cycle. What we know from JP Morgan is that eventually net interest income is going to be under pressure, and we'll be wondering if that's the same for Bank of America, and same goes for Citygroup, where there's a very large
credit card business. For Goldman Sachs. We'll be watching investment, banking and trading results because we know that the most recent quarter was a volatile one, and more than anything, we'll be watching for the outlook for the rest of the year because volatility is expected to remain somewhat elevated, and the question is can trading and banking fees be high on that backdrop? In New York, I'm Shinali Bask for Bloomberg.
Radio Okationanali, thank you. Turning to the economy, now more Fed officials are speaking out about the future of monetary policy. Minneapolis Fed President Neil Kashkari says it appears likely that further modest reductions and interest rates will be appropriate in coming quarters. Cashcari also talked about the fight against inflation in Buenos Aires at a conference held by the Central Bank of Argentina.
So two percent is our inflation target, depending on your measure of inflation. It went up to seven eight nine percent and it is now running I would call it at a round by our primary measure. It's now running at around a two and a half percent run rate, and a lot of evidence suggesting that it's going to continue to fall from here.
Minneapolis Fed Chief Neil Kashkari has said previously he was comfortable with the Fed's fifty basis point rate cut in September, and that a quarter point reduction at each of the fed's two remaining meetings this year is a reasonable starting point.
Well, Nathan, we turned out to new developments in the Middle East and Israeli Prime Minister Benjamin Netanya, who has reportedly told the US he will strike Iranian military sites, and Bloomberg's and Baxter has the story the.
Way Netnyah who puts it is that he is willing to strike military rather than oil or nuclear targets. The Biden administration has been very open about the fact that it did not want the strikes on oil or nuclear. The Washington Post reports on the net and Yahoo Biden call earlier this week. The Prime minister had said he was going to strike infrastructure, so there was fear it could be what the US did not want. After that call, the President also announced the sending of the THAD system
to Israel. Ed Baxter Bloomberg radio.
All right and thank you. And oil is sinking on that Washington Post report checking nimex crewed right now, it's down four and two thirds percent at seventy dollars thirty nine cents per keryl. Brent is lower by four and a half percent at seventy three ninety seven. Meanwhile, the International Energy Agency says geopolitical risks to oil output in the Middle East and elsewhere are being offset by plentiful global supplies.
Now, let's get the latest from the campaign trail. Nathan and both Kamala Harris and Donald Trump were on opposite ends of Pennsylvania pitching and dueling economic plans. The Vice president counted her proposal for a fifty thousand dollars small business tach dis deduction at a rally and eerie, she played clips from the former president's events to paint him as an extremist.
He's talking about the enemy within our country, Pennsylvania. He's talking about that he considers anyone who doesn't support him or who will not bend to his will an enemy of our country.
Meanwhile, Donald Trump held a town hall in Oaks, Pennsylvania, outside of Philadelphia, but the economic discussion quickly fell off the rails when audience members started fainting inside the smeltering arena. So Trump decided to turn it into a dance party.
Let's not do any more questions, Let's just listen to music.
Let's make it into it for music.
Houda Hell wants to hear questions.
Right before the interruption, Trump touted his plans to eliminate Social Security income taxes and to deregulate energy and home construction man Karen.
The campaign continues today. Vice President Harris will be in Detroit for a town hall with radio hosts Charlemagne the God as she ramps up her efforts to court black voters. Former President Trump will be at the Economic Club of Chicago for an exclusive interview with Bloomberg News Editor in chief John Mikelthwaite. That conversation will begin at noon Wall Street Time. Our coverage begins at eleven thirty on a
special edition of Bloomberg's Balance of Power. You can listen on Bloomberg Radio or watch on Bloomberg Television or on the Bloomberg Podcasts YouTube channel.
Well, Nathan, there's new developments this morning in the one month strike. It Boeing and we get the very latest, So Bloomberg should John Tucker and John it looks like things are getting more tense.
Karen Boeing says it's going to be laying off seventeen thousand employees in minutes. Ongoing workers' strike. Now the head of the labor department reaching out to both sides to try to fix things with no end in sight for the now month long machineist strike at Boeing, The acting labor Secretary, Julie Sue, traveled to Seattle to meet with Boeing in the workers union. The two sides cut off talks last week. Strikers really aren't sure what to expect.
I think they're playing a game.
It's a cat and mouse game.
Who's going to buy it first?
Well.
Boeing also announced a delay to its Triple seven X program, angering big customers like Emirates. The intention to cut jobs comes as the Planemaker seeks to stave off warnings of a possible ratings downgrade from S and P Global. In New York, I'm John Tucker, Bloomberg Radio.
Great John, thank you. It's 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, Karen. Officials say federal disaster workers paused and then changed some of their hurricane recovery efforts in North Carolina, including abandoning door to door visits after receiving threats during a wave of misinformation. The Rutherford County Sheriff's office said it received a call about a man with an assault rifle who commented about possibly harming FEMA employees and targeting a militia against them. For FEMA Administrator Pete Gaynor, we have.
The best missioned federal government helping people before, during, and after disaster.
I think we have some of the most dedicated employees that are trying to do that for their fellow Americans, and.
Stuff like this. It's not good for morale for anyone on.
The team, former FEMA Administrator Pete Gaynor. The man was later arrested and charged with a misdemeanor. Several jurors have just been seated in the years old case of the murders of two young girls who were hiking in Delphi, Indiana. Investigators say that prison recording showed the suspect, Richard Allen,
confessed more than sixty times while behind bars. It took nearly six years for one arrest, police linking a bullet from the crime scene to Allan's gun in the killings of thirteen year old Abby Williams and fourteen year old Libby German. Libby's sister, Kelsey.
I had so much faith that our detectives would keep working on this until they got our answers and justice for the girls, and until the conviction is here. I'll still remain that way too.
Evidence from Libby's own phone is expected to play a critical role at trial. Another federal civil rights violation trial gets underway today in Louisville for former police officer Brett Hankinson. He shot and killed Brianna Taylor in twenty twenty during what was allegedly a botched raid where Taylor's boyfriend fired at police. Former federal prosecutor Lourie Levinson, this is a.
Case of a federal supervirights violation, but it really is the question of whether an officer used too much force. Don't forget that Hankinson fired ten shots into Taylor's apartment through a glass store That night.
Former federal Prosecutor Lori Levinson, in a symbolic display of anger, North Korea blew up the northern section of unused roads that once linked it with the South. Today's action comes as the rivals have been exchanging threats, days after the North claim that its rival flew drones over its capital, Pyongyang. 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 up Date, brought to you by Tri State Audi. Here's John Stashour, johnkan Morney, Good.
Morning, Caroen.
Moving closer to a subway series up first with the Mets in Los Angeles. Dodgers had thrown thirty three consecutive scoreless innings that ended quick. Francisco Lindor hit a lead off home run, and inning later the Dodgers walked the door intentionally to load the beast.
Here's the payoff pitch swing on a drive in the air, pretty well hit right center.
Piez back at that track near the wall.
It is gone.
A grand slam for Bartfaetas on a three to two pitch, he clears the bases, pitting it into the pavilion and right center field.
W hs Q Mets let six. Nothing survived the sixth inning when La score twice had three on but hit it into an inny knitting double play. Mets one, seven three come back to New York with the NLCS tied to one, Game three tomorrow then it was the Yankees in the ALCS opener with Cleveland Wan Soto homer third inning, he he's got two more on three guardian walks and two wild pitches. And then in the seventh upstep the hottest Yang all the.
O one is hitting there two left center.
It is high, it is far, it is gone.
Ay Stantonian obro Wfan John Carlos Stanton coming off the big Alds Yanks one five two, Carlos Redon six strong innings and Luke Weaver flourishing as the Yankee closer.
He got the last five outs, four by strikeout. Game two tonight, a game at matt Life for the second straight night, and just like the Giants, a loss for the Jets. Buffalo won twenty three twenty Josh Allen three for two touchdowns, ran for another, Aaron Rodgers through for two, including a hail Mary to close out the first half, but just like last Sunday in London, a late costly Rogers interception it spoils the coaching debut of Jeff Olbrook
at the Garden. Rangers beat Detroit four to one. In Newark, Devil's over Utah three nothing. In Denver, Islanders down Colorado six to two. Florida top the Bruins four to three. Johns dash Ewen Bloomberg Sports.
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.
The breakneck growth of artificial intelligence technology may face new limits on a country by country basis. Bloomberg News has learned the Biden administration is considering sales caps on chips from the likes of Nvidia and advanced micro devices in the interest of national security. For more on this, we're joined by Bloomberg Radio and television anchor Critty Gupta. Critty, Good morning. What more are we hearing about what the administration's considering here?
Welcome morning, Nathan.
Usually when we hear about the Biden administration being tough on those chipbex boards, it's usually in relation to whether or not that very secure technology can.
End up in China.
This time around, though, it looks like they're considering how might end up in the Middle East. Now, there were suspicions of this earlier this year, that this may be an area of concern, especially as the Middle East has really been.
Ramping up their chip making capacity.
So you've seen TSMC, for example, show interest in places like the UAE. The concern here, though, is that if you now have to consider China for national security reasons, you have to considers to the Middle East for that as well. That being said, this is certainly on the table, but no decisions have been made just yet, and even if they were made, it's unclear if they would be imposed during the remainder of President Biden's term.
So if this is in the interest of fairness, is this the kind of thing that Middle Eastern allies could work with either the Biden administration or whatever administration might consider these kinds of limitations.
Well, that's the expectation.
Look, there's a global race, as we know to get our hands on this kind of chip technology. Whereas AI may be rising very quickly and spearheaded by Nvidio chips for example, or EV technology spearheaded over in China, there are still other parts of the world that are actively trying to play.
Catch up in a lot of ways.
In the absence of being able to do that, or in the process of developing their own technology and their own supply chains. This is where there is a real incentive to be negotiating with the Biden administration, and it looks like that may be where this is headed.
But a big piece of leverage here that.
The Biden administration of the United States broadly has over the Middle East is that in controlling those exports, being able to say, maybe you also need to lessen your dependents or lessen your relationship with China in some way.
We've already seen evidence of that show up in the way that the US has talked about export controls with the Netherlands, of course, the home country of ASML, the major chip equipment maker for most of the chip equipment making technology in the world, and that puts the Dutch government, for example, in a pretty tight spot.
Well, what could these kinds of country by country national security focused export limitations mean for the AI trade overall? I mean, we just saw on Vidia hit its first record since June yesterday. Does that put the AI frenzy in a little bit of doubt this morning?
You know, one would think, but it's not really making a dent. And the reason for that is because it's not one imposed to we don't know what the actual details of this move would actually look like in three at the end of the day, it's not actually hitting the supply just yet or the expected supply of these chips.
There is still a little bit of a bottleneck on that where Nvidia is kind of the only player in the game at the moment, as recently shown by the fact that AMD Advanced micro Devices has also released their own kind of competitor chip and met with not such great an investor appetite because the concern was one, can you ramp up capacity? And two can you monetize it? So again, it still feels like Nvidia's dominance is here to stay for now.
Got about thirty seconds left, but the market focus is going to turn very quickly back to banks. What to expect from the earnings this morning?
Well, there are two things.
One is, do we see the net interest income outperformance of JP Morgan and Wolfs Fargo show up in the likes of City Goldman, Sachs and I believe Morgan Stanley reporting tomorrow as well among some of the other banks. A second, especially for City, is going to be that credit card data. If there's any hiccups in the JP Morgan numbers. It's that there might have been a little bit of slow down that spend. We'll see if city shows the same thing.
This is Bloombergy Daybreak, morning podcast on the stories making news from Wall Street to Washington and beyond.
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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 and your favorite podcast platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg day Break