July 15, 2025 • 22 mins
On today's podcast:
1) Nvidia surges to an all-time high on news it will resume Chip sales to China. US government officials told Nvidia they would green-light export licenses for the H20 artificial intelligence accelerator, according to the company. The move is seen as a "massive win" for Nvidia's Chief Executive Officer Jensen Huang, and is also viewed positively by Vey-Sern Ling, managing director at Union Bancaire Privee, who says it is "obviously positive" for Nvidia, the AI semiconductor supply chain, and China tech platforms.
2) The European Union puts out new tariff targets if it can't reach a deal with the US. The European Union has finalized a list of countermeasures to target US goods worth €72 billion, including Boeing Co. aircraft, automobiles and bourbon. The list includes US machinery products, chemicals and plastics, medical devices, electrical equipment, wines and other agricultural goods, according to a document prepared by the European Commission. The EU trade chief Maros Sefcovic says the US tariff policy is "effectively prohibitive" to transatlantic trade, and the EU insists any settlement must be mutually beneficial to both sides.
3) Big bank earnings begin with JPMorgan Chase, Wells Fargo, and Citi reporting. America’s biggest banks are heading into earnings season with tailwinds from trading and lending as they benefit from market volatility and steady borrowing costs. Investment banking may be a weak spot as sluggish closings offset a pickup in deal announcements, Bloomberg Intelligence said.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:10):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
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.
Speaker 4 (00:35):
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
(00:58):
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.
Speaker 3 (01:15):
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.
Speaker 2 (01:24):
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.
Speaker 5 (01:37):
And good morning, Karen and Nathan.
Speaker 6 (01:39):
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
(02:00):
to transatlantic trade, so expacting the two sides are continuing
in London.
Speaker 7 (02:05):
I'm Umpot Spinberg Radio.
Speaker 3 (02:06):
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.
Speaker 8 (02:19):
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
(02:40):
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.
Speaker 2 (02:57):
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.
Speaker 7 (03:09):
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.
Speaker 1 (03:19):
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.
Speaker 7 (03:30):
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.
Speaker 3 (03:43):
And as we await that key inflation report, speculation is
growing about who will eventually replace j.
Speaker 5 (03:48):
Powell.
Speaker 3 (03:48):
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.
Speaker 9 (04:07):
Karen.
Speaker 3 (04:07):
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.
Speaker 10 (04:17):
We are very.
Speaker 11 (04:17):
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.
Speaker 2 (04:33):
Tariff said about one hundred percent.
Speaker 3 (04:36):
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.
Speaker 12 (04:54):
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.
Speaker 3 (05:06):
NATO Secretary General Mark Ruta says Germany, the Nordic States,
and Canada would play a major role in fulfilling Ukraine's
military needs.
Speaker 2 (05:14):
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
(05:36):
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.
(05:58):
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.
Speaker 10 (06:04):
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
(06:24):
knocking down trees.
Speaker 5 (06:26):
I've never seen flooding like this.
Speaker 11 (06:27):
To sat there, I'm sure the car, I mean, there's
nothing I could do with this is ruined.
Speaker 7 (06:30):
So time for new car.
Speaker 10 (06:33):
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
(06:53):
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
(07:13):
warm the search could last up the six months. Kerr
County Judge Rob Killing.
Speaker 2 (07:18):
It's the tourist that came in for the fourth weekend
the concert fireworks.
Speaker 5 (07:23):
We don't know how many we lost.
Speaker 10 (07:24):
We've heard accounts of trailer after trailer after trailer.
Speaker 5 (07:27):
Being swept into the river with families in them. You
can't find traders.
Speaker 10 (07:32):
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.
Speaker 11 (07:48):
For the next few months, it's my responsibility to earn
your vote.
Speaker 10 (07:54):
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.
Speaker 2 (08:12):
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. And
here's John Stanshauer.
Speaker 5 (08:23):
John, good morning, Good morning care.
Speaker 11 (08:24):
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
(08:46):
the finals eighteen to fifteen. The Yankees Jazz Chishem finished
a distant last. He only managed three home runs.
Speaker 5 (08:53):
Nah, yeah, what do you leave?
Speaker 7 (08:55):
Was it fun?
Speaker 5 (08:56):
I had a lot of fun. I enjoyed every second
of it.
Speaker 11 (09:00):
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
(09:23):
the Dodgers Dave Roberts.
Speaker 9 (09:24):
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.
Speaker 11 (09:40):
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.
Speaker 5 (09:59):
Back in fifth be our do to a blood clot.
John stashy Our Bloomberg Sports Karen Nathan.
Speaker 1 (10:05):
Coast to Coast on Bloomberg Radio nationwide on Sirius XM.
Speaker 13 (10:10):
And around the world on Bloomberg dot Com and the
Bloomberg Business Apple.
Speaker 5 (10:14):
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 3 (10:17):
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.
Speaker 5 (10:34):
Already the world's most valuable company.
Speaker 3 (10:36):
For more, we are joined by Dan Ives, global head
of Tech research at Webbush Securities.
Speaker 5 (10:42):
Dan, good morning.
Speaker 3 (10:43):
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?
Speaker 14 (10:53):
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
(11:15):
around us try and negotiations. Given this chip on.
Speaker 3 (11:18):
The table, how is it positive for the overall tech sector?
What's the read through from Nvidia getting this go ahead?
Speaker 14 (11:25):
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.
(11:48):
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.
Speaker 3 (12:02):
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.
Speaker 14 (12:16):
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
(12:36):
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
(12:58):
AI armsers to.
Speaker 3 (13:00):
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.
Speaker 14 (13:21):
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
(13:41):
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.
Speaker 3 (14:00):
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.
Speaker 14 (14:13):
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.
Speaker 5 (14:29):
So what do you see going forward?
Speaker 3 (14:31):
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?
Speaker 14 (14:48):
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.
Speaker 3 (15:10):
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?
Speaker 5 (15:23):
And if so, when?
Speaker 14 (15:26):
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
(15:47):
and I see a five trillion dollar markup on the horizon.
Speaker 3 (15:51):
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
(16:13):
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
(16:35):
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.
Speaker 5 (16:53):
Give us the highlights. Good morning, good morning.
Speaker 7 (16:56):
Yeah.
Speaker 13 (16:56):
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
(17:17):
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
(17:37):
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
(17:58):
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
(18:20):
don't go to plan.
Speaker 3 (18:21):
So, as you mentioned, it doesn't include military equipment, so
the list might not have been as exhaustive as it
could have been.
Speaker 5 (18:30):
Is that the sense we're getting. Well, it was initially reduced.
Speaker 13 (18:33):
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
(18:54):
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
(19:17):
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
(19:40):
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
(20:03):
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
(20:24):
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.
Speaker 3 (20:34):
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?
Speaker 13 (20:47):
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.
Speaker 7 (21:05):
As well.
Speaker 13 (21:05):
There was the conversation between Mark Karney and our Slavanga line.
Speaker 5 (21:08):
Yesterday as well.
Speaker 13 (21:09):
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.
Speaker 2 (21:28):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 3 (21:35):
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Speaker 2 (21:41):
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Speaker 5 (21:56):
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Speaker 3 (21:56):
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Speaker 2 (22:02):
And don't forget to subscribe to Bloomberg News Now. It's
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Speaker 5 (22:15):
And I'm Nathan Hager.
Speaker 3 (22:16):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:10):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
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.
Speaker 4 (00:35):
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
(00:58):
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.
Speaker 3 (01:15):
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.
Speaker 2 (01:24):
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.
Speaker 5 (01:37):
And good morning, Karen and Nathan.
Speaker 6 (01:39):
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
(02:00):
to transatlantic trade, so expacting the two sides are continuing
in London.
Speaker 7 (02:05):
I'm Umpot Spinberg Radio.
Speaker 3 (02:06):
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.
Speaker 8 (02:19):
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
(02:40):
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.
Speaker 2 (02:57):
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.
Speaker 7 (03:09):
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.
Speaker 1 (03:19):
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.
Speaker 7 (03:30):
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.
Speaker 3 (03:43):
And as we await that key inflation report, speculation is
growing about who will eventually replace j.
Speaker 5 (03:48):
Powell.
Speaker 3 (03:48):
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.
Speaker 9 (04:07):
Karen.
Speaker 3 (04:07):
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.
Speaker 10 (04:17):
We are very.
Speaker 11 (04:17):
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.
Speaker 2 (04:33):
Tariff said about one hundred percent.
Speaker 3 (04:36):
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.
Speaker 12 (04:54):
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.
Speaker 3 (05:06):
NATO Secretary General Mark Ruta says Germany, the Nordic States,
and Canada would play a major role in fulfilling Ukraine's
military needs.
Speaker 2 (05:14):
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
(05:36):
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.
(05:58):
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.
Speaker 10 (06:04):
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
(06:24):
knocking down trees.
Speaker 5 (06:26):
I've never seen flooding like this.
Speaker 11 (06:27):
To sat there, I'm sure the car, I mean, there's
nothing I could do with this is ruined.
Speaker 7 (06:30):
So time for new car.
Speaker 10 (06:33):
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
(06:53):
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
(07:13):
warm the search could last up the six months. Kerr
County Judge Rob Killing.
Speaker 2 (07:18):
It's the tourist that came in for the fourth weekend
the concert fireworks.
Speaker 5 (07:23):
We don't know how many we lost.
Speaker 10 (07:24):
We've heard accounts of trailer after trailer after trailer.
Speaker 5 (07:27):
Being swept into the river with families in them. You
can't find traders.
Speaker 10 (07:32):
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.
Speaker 11 (07:48):
For the next few months, it's my responsibility to earn
your vote.
Speaker 10 (07:54):
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.
Speaker 2 (08:12):
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. And
here's John Stanshauer.
Speaker 5 (08:23):
John, good morning, Good morning care.
Speaker 11 (08:24):
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
(08:46):
the finals eighteen to fifteen. The Yankees Jazz Chishem finished
a distant last. He only managed three home runs.
Speaker 5 (08:53):
Nah, yeah, what do you leave?
Speaker 7 (08:55):
Was it fun?
Speaker 5 (08:56):
I had a lot of fun. I enjoyed every second
of it.
Speaker 11 (09:00):
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
(09:23):
the Dodgers Dave Roberts.
Speaker 9 (09:24):
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.
Speaker 11 (09:40):
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.
Speaker 5 (09:59):
Back in fifth be our do to a blood clot.
John stashy Our Bloomberg Sports Karen Nathan.
Speaker 1 (10:05):
Coast to Coast on Bloomberg Radio nationwide on Sirius XM.
Speaker 13 (10:10):
And around the world on Bloomberg dot Com and the
Bloomberg Business Apple.
Speaker 5 (10:14):
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 3 (10:17):
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.
Speaker 5 (10:34):
Already the world's most valuable company.
Speaker 3 (10:36):
For more, we are joined by Dan Ives, global head
of Tech research at Webbush Securities.
Speaker 5 (10:42):
Dan, good morning.
Speaker 3 (10:43):
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?
Speaker 14 (10:53):
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
(11:15):
around us try and negotiations. Given this chip on.
Speaker 3 (11:18):
The table, how is it positive for the overall tech sector?
What's the read through from Nvidia getting this go ahead?
Speaker 14 (11:25):
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.
(11:48):
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.
Speaker 3 (12:02):
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.
Speaker 14 (12:16):
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
(12:36):
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
(12:58):
AI armsers to.
Speaker 3 (13:00):
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.
Speaker 14 (13:21):
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
(13:41):
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.
Speaker 3 (14:00):
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.
Speaker 14 (14:13):
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.
Speaker 5 (14:29):
So what do you see going forward?
Speaker 3 (14:31):
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?
Speaker 14 (14:48):
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.
Speaker 3 (15:10):
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?
Speaker 5 (15:23):
And if so, when?
Speaker 14 (15:26):
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
(15:47):
and I see a five trillion dollar markup on the horizon.
Speaker 3 (15:51):
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
(16:13):
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
(16:35):
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.
Speaker 5 (16:53):
Give us the highlights. Good morning, good morning.
Speaker 7 (16:56):
Yeah.
Speaker 13 (16:56):
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
(17:17):
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
(17:37):
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
(17:58):
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
(18:20):
don't go to plan.
Speaker 3 (18:21):
So, as you mentioned, it doesn't include military equipment, so
the list might not have been as exhaustive as it
could have been.
Speaker 5 (18:30):
Is that the sense we're getting. Well, it was initially reduced.
Speaker 13 (18:33):
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
(18:54):
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
(19:17):
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
(19:40):
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
(20:03):
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
(20:24):
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.
Speaker 3 (20:34):
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?
Speaker 13 (20:47):
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.
Speaker 7 (21:05):
As well.
Speaker 13 (21:05):
There was the conversation between Mark Karney and our Slavanga line.
Speaker 5 (21:08):
Yesterday as well.
Speaker 13 (21:09):
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.
Speaker 2 (21:28):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 3 (21:35):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or manywhere else you listen.
Speaker 2 (21:41):
You can also listen live each morning starting at five am.
Wall Street Time on Bloomberg eleven three to zero in
New York, Bloomberg in ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
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Speaker 5 (21:56):
Plus.
Speaker 3 (21:56):
Listen coast to coast on the Bloomberg Business app now
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Speaker 2 (22:02):
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.
Speaker 5 (22:15):
And I'm Nathan Hager.
Speaker 3 (22:16):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
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