US-China Trade Talks and TikTok; Hochul Endorses Mamdani

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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 this morning with the latest on U.S.-China trade talks in Madrid. Treasury Secretary Scott Bessent says the White House has made good progress on technical details with China. We get more from Bloomberg's Rosalind Matheson. They had six hours of talks yesterday and then they had a lower level technical talks continuing last night. So there does seem to be a real impetus on both sides to get towards a formal understanding on trade because that's all about paving the way for a meeting between their leaders later this year. And, you know, Xi Jinping is not going to agree to a meeting unless there's a proper agreement that they can tout. at the time. And so the mood music from the U.S. side, at least, what we're hearing this morning, is pretty good. And Bloomberg's Ros Matheson reports Secretary Scott Bessent also said the U.S. and China are very close to resolving the TikTok issue. President Trump talked about TikTok before he boarded Air Force One. They're negotiating TikTok right now. We may let it die or we may, I don't know, it depends up to China. It doesn't matter too much. I'd like to do it for the kids they like it. I mean, selfishly speaking, I did very well in TikTok and I got the youth for. TikTok, which is owned by China's bite dance, faces a deadline this week to reach a deal to continue operations in the U.S. Meanwhile, Nathan, as trade talks continue, China's market regulator says a preliminary probe has found that NVIDIA has violated anti-monopoly law. And we get more with Bloomberg's Tom McKenzie. Well, number one, it's interesting, of course, the timing, because this happens as the talks are continuing between the U.S. and China in Madrid on trade. And no doubt semiconductors and the chip industry will be part of that. conversation. Number two, it follows additional actions by China over the last 48 hours or so, including anti-dumping measures and further scrutiny of the sale of other chips into the Chinese market. So it's a reminder that China is signaling to the US that it has cards to play. And that's Bloomberg's Tom McKenzie and Vitya shares are down more than 2.5% in early trading. And Karen, President Trump is also weighing in on the Federal Reserve's highly anticipated rate decision this week. Policymakers are widely expected to slash rates for the first time during the Trump administration. I think you have a big cut because I really, I don't think he can help with cutting. It's perfect for cutting. And the thing that he's hurting most is housing for people, because we're doing well and everything. Energy's way down. Groceries are down. Almost everything is way down. But housing because of the Fed is not what it should be. The Fed makes its policy decision on Wednesday. Stay tuned for a special edition of Bloomberg's surveillance on that day starting at 1.30 p.m. Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg podcast channel on YouTube.

Eric Adams and former Governor Andrew Cuomo, both of whom are running against Zohran Mamdani, a Democratic socialist. Zohran Mamdani campaigned on sweeping affordability measures, including freezing rents for millions of New Yorkers, offering free child care and establishing city-run grocery stores. President Donald Trump has frequently disparaged Zohran Mamdani, once calling him a, quote, communist lunatic. In New York, Gina Servetti, Bloomberg Radio. Gina, thank you. Secretary of State Marco Rubio has arrived in Israel as it intensifies attacks on northern Gaza. We get more with Bloomberg's Jimana Persechi in the Middle East. This was a trip that had been planned even before the Doha attack took place. Secretary of State Marco Rubio is in Israel now. It's part of a two-day trip. In anticipation of the trip, Marco Rubio said that he was traveling there to seek answers on the path forward in Gaza in light of last week's targeting of Hamas officials in Doha, which of course have appended the mediation efforts to broker the end of the war and achieve a ceasefire. But it is a very obvious show of U.S. support, especially after the attack on Doha, drew con. condemnation, not just from Arab countries, but from countries all around the world. And as Bloomberg's Jumanda Prasachi, who adds that Marco Rubio plans to reiterate the Trump administration's support for defeating Hamas and bringing home the 48 hostages held by the group in the Gaza Strip. 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. Could the Long Island Railroad go on strike? Three of the five L-I-R unions have voted to authorize a walkout if contract negotiations fail. More workers will decide today on a potential strike. It could start as early as Thursday and impact 270,000 daily riders. This comes as the Ryder Cup begins September 26th. It's located at Black Horse at Bethpage State Park in Farmingdale, New York. Republican Congressman Michael McCall of Texas says he won't seek re-election in 2026. The former chair of the Homeland Security and Foreign Relations Committees spoke on ABCs this week. It's been an honor to serve for over two decades in the Congress. I'm looking now for a new challenge. Congressman McCall on ABCs this week, which can be heard Sundays on Bloomberg. With cold and flu season closing in, California lawmakers over the weekend made a last-minute move to secure access to vaccines. They passed a bill to protect the state's vaccine regulations from federal interference. Legislators and the medical community hope Governor Gavin Newsom will sign it. Dr. Peter Chin Hong, infectious disease expert at the University of California, San Francisco. It's really important to have this right now because vaccines are under assault at the highest levels. Dr. Peter Chin Hong, Netflix's adolescents dominated the limited series categories with six victories, including Best Limited Series. Stephen Colbert won the Emmy for Outstanding Talk Show for The Late Show in its last season. During his acceptance speech aired on CBS, Stephen Colbert said he tried to make a show about love, but that it turned out to be a show about loss.

My friends, I have never loved my country more desperately. God bless America. Stay strong, be brave, and if the elevator tries to bring you down, go crazy and punch a higher floor. Gene Smart won best actress in a comedy for Hacks. Global News, 24 hours a day, and whenever you want it with Bloomberg News Now, I'm Michael Barr, and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update, and for that we bring in John Stash Hour. Thanks, Karen. The Super Bowl rematch had the same result. Philadelphia won in Kansas City, this time 20 to 17. The Eagles are 2 and 0. The Chiefs were 0.2 for the first time since 2014. Wild game in Dallas. The Cowboys beat the Giants to the 9th straight time. It was 40 to 37 in overtime. There were 41 points scored in the fourth quarter with five lead changes. The Giants took the lead on a long pass with 25 seconds left. but the Cowboys Brandon Aubrey tied the game with a 64-yard field goal and won it with a kick-in-o-tete. That's your Bloomberg. Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions, buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English, like if the VIX hits 25, buy a put option on the S&P 500, or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by Public Investing. Brokridge services by Open to the Public Investing, Inc., member FINRA and SIPC. Advisory services by Public Advisors LLC, SEC Registered Advisor. Complete disclosures available at public.com slash disclosures. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM. Let's talk about health care for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a health care company linking patient care and pharmacy services and using data and technology to drive the whole system.

So care is connected, not complicated, for patients and providers. Things like making it easier to get care that looks at the whole person, from primary care doctors to mental health support and even in-home care, and then using technology to make sure they all work together. Technology designed to help doctors spend less time on busy work and more time with their patients. And those prescriptions, Optum is working to bring costs down, save patients' money, and make it easier to get refills. Little by little, Optum is helping make healthcare work as one for everyone. Head to business.optim.com to see how. Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Treasury Secretary Scott Bessent is touting progress with China in a second day of talks in Madrid. He says they're very close to resolving the TikTok issue, though other issues could be cropping up. And joining us for the latest is Bloomberg's Jill DeSis following developments from Hong Kong. this morning. Jill, what is the latest when it comes to those discussions? We heard a lot of talk about getting the TikTok issue resolved at the same time. There may be new complications when it comes to what China is doing with NVIDIA. Good morning. Yes, that's right. Good morning, Nathan. So first of all, you know, on these TikTok issues, we've got Scott Bessent meeting with his Chinese counterparts today. In Madrid, those talks are ongoing. We may have more to hear from Scott Bessent on those in just a few hours from now. But ultimately, he's saying that the U.S. and China, as you mentioned, are very close. He did say that the Chinese side made what he called an aggressive ask in talks. We're not entirely sure what that was about. But I think does just kind of stress that this is a bit of a complicated. matter here. And so I think there's likely more to come on that front. Remember that there is a deadline for a TikTok sale that the U.S. has imposed for Wednesday, although Trump has kind of floated the idea that that may be something that's delayed. So I think, you know, we'll have to see what the outcome of these talks are. But as you mentioned, all of this is really kind of brewing, as we've just heard that China ruled that NVIDIA corporation violated anti-monopoly laws with a really high profile 2020 deal. And so I think that dropping, obviously, the timing is really, really interesting. coming during the middle of these talks, and we've yet to see whether that complicates things. Yeah, it is interesting to see that come up just now when we've also got new economic data coming out of China that shows a pretty significant slowdown continues in that country. You've got to think there's got to be some level of pressure on China to come to some kind of middle with the U.S. Yes, I do think that it kind of brings that idea into question of, you know, how exactly is China going to resolve some of these issues? Because as you mentioned with that China data, I mean, really poor investment data in particular, I think worst on record outside of just during the 2020 coronavirus pandemic. So you're seeing some really poor numbers there, raising some expectations about whether or not China actually steps in with some kind of stimulus. But when you've got some of these unresolved issues with the United States, is there more?

on trade. You know, we do have Trump just in recent days floating the idea of really hefty tariffs on China because of its purchases of Russian energy. So I think all of that really does kind of enter the equation here. And ultimately, what we're waiting for is this prospect, too, of a potential meeting between Donald Trump and Chinese President Xi Jinping. That could come some time within the next six weeks. But you do have to wonder whether, you know, any kind of resolution on some of these issues that the U.S. and China are working through, whether that be TikTok, now in video. maybe trade relations, whether that could potentially stymie those efforts to bring Trump and she to the table together. Just 30 seconds left here, but as we're seeing signs of our own economic slowdown in the U.S., particularly in the labor market, these comments from President Trump saying he expects a big cut from the Fed this week. What could we be set up for? Yeah, I mean, so you had, you know, President Donald Trump, he's saying, I think you have to have a big cut. That's a direct quote from Trump telling reporters on Sunday. He said it's perfect for cutting. I think, you know, obviously the really, really important thing to remember here is that, you know, while Trump has obviously long criticized Jerome Powell and the Federal Reserve over their progress on cutting interest rates, the idea of some kind of an outsized cut that's really far from the median expectations right now. The median estimate from Bloomberg survey of economists is for a 25 base. basis point reduction. You know, that's something that we're seeing price into markets. But, you know, I think that does just kind of hit at this idea that I think Trump has, you know, pretty aggressively made known his feelings on the Federal Reserve, obviously has tried to work to shape the board of governors more in his favor. This to me is very classic Trump just continuing to opine on the Fed in a way that we really have rarely seen with, you know, with presidents before. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning, starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 991 in Washington, Bloomberg 929 in Boston, and nationwide on Sirius XM Channel 121. Plus listen coast to coast on the... Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. 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. 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.

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