Trump Chip Tariffs; OpenAI and Broadcom Take on Nvidia

0:00Bloomberg Daybreak U.S. edition is brought to you by OTC Markets Group. OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Learn more at otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer, and is available only through participating broker-dealers. When you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, that isn't always easy. Risk can touch multiple parts of an organization at the same time, often in ways that aren't immediately obvious.

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1:21Learn more at thehartford.com slash risk mitigation. Whatever your goal, trade show giveaways, client gifts, or team gear, 4imprint has the promo products to match. With thousands of options, from apparel and drinkware to tech and totes, it's easy to find the right fit for your brand and budget with standout choices at every price point. And with their 360-degree guarantee, you can be 4imprint certain your order will show up just right, right on time. Explore more at 4imprint.com. 4imprint. 4certain. Bloomberg Audio Studios, podcasts, radio, news. Good morning, I'm Nathan Hager. And I'm Karen Moscow.

2:05Here are the stories we're following today. Karen, we begin with trade this morning in the latest announcement from President Donald Trump. As heard live on Bloomberg Radio, the president says tariffs on semiconductor imports are coming soon. Chips and semiconductors, and we'll be putting tariffs on companies that aren't coming in. We'll be putting a tariff very shortly. Probably our hearing will be putting a fairly substantial tariff on, not that high, but fairly substantial tariff. President Trump says the levies could spare companies like Apple, which have pledged to boost investments in the United States.

2:42The president previously suggested the tariff rate on chips could be well above 100 percent, reaching potentially 200 or 300 percent. Well, Nathan, President Trump was speaking at a White House dinner attended by some of the world's biggest tech leaders. The guest list ranged from Apple's Tim Cook, OpenAI's Sam Altman and Google's Sundar Pichai. And sitting beside the president was Meta's Mark Zuckerberg. He was pressed by the president on the company's U.S. investments. How much are you spending, would you say, over the next few years? Oh, gosh. I mean, I think it's probably going to be something like, I don't know, at least$600 billion through 28 in the U.S.

3:25Yeah. It's a lot. Meta's Mark Zuckerberg speaking at the White House. Earlier Thursday, many of the same executives joined First Lady Melania Trump for a discussion on AI. And we have a major new development potentially in the AI space this morning, Karen. We've learned that OpenAI is partnering with Broadcom to design and produce artificial intelligence chips in what would be a direct challenge to NVIDIA. Bloomberg News is reporting the first accelerator chips to begin shipping next year. Broadcom's CEO told investors on his latest earnings call that the company's AI outlook will improve significantly next year, with expected revenue from semiconductors to reach more than$6 billion in the fourth quarter.

4:06Nathan, let's turn to the economy now in today's critical jobs report, which could cement a rate cut at this month's Fed meeting. Markets are currently pricing in a quarter point cut in September. Speaking at a fireside chat yesterday, Chicago Fed President Austin Goolsbee said the number will be important, but stressed he's looking at a broad range of data points. I'm one of the data dogs, so you're never going to hear me say throw away a number and pay no attention to it, but I'm just going to index on that number tomorrow morning a little bit less than we normally would. Chicago Fed President Austin Goolsbee says if the job market shows further deterioration, it could be a sign to loosen monetary policy.

4:47The August jobs report drops at 830 Wall Street time. Please stick with Bloomberg for live coverage of the data on Bloomberg surveillance with Tom Keene and Paul Sweeney on Bloomberg Radio and the Bloomberg podcast page on YouTube. Well, Karen, Goolsbee's not the only Fed speaker talking about rate cuts. New York Fed President John Williams says the central bank is facing a delicate balancing act when it comes to policy. We need to keep the labor market in balance to ensure that the effects of tariffs do not spill over into a longer lasting, broad increase in inflation. On the other hand, maintaining a stance of too restrictive policy for too long could increase risks to our maximum unemployment mandate.

5:24New York Fed President John Williams says the impact of tariffs on inflation has been less than originally feared. He says the labor market is undergoing gradual cooling, consistent with a slowdown in the economy. And we turned out to New York City's mayoral race. The New York Times is reporting, Nathan, that Mayor Eric Adams told confidants that he's weighing job opportunities that would prompt him to abandon his re-election bid. Reports indicate Adams had been in talks with advisors to President Trump about a potential job if he quits the race, which he's denied. President Trump weighed in on the race at the White House last night.

6:00I would like to see two people drop out and have it be one-on-one, and I think that's a race that could be won. The president emphasized he'd prefer not to have a communist mayor of New York City, referring to current Democratic frontrunners Oren Mamdani. For full transparency, Michael Bloomberg, founder and majority owner of Bloomberg LP, the parent company of Bloomberg Radio, has endorsed Andrew Cuomo in the mayor's race. Let's turn now, Karen, to the latest in President Trump's efforts to oust Fed Governor Lisa Cook. The Justice Department has opened a criminal investigation into whether Cook committed mortgage fraud.

6:35Sources tell Bloomberg federal prosecutors have issued subpoenas relating to allegations that Cook misrepresented information on mortgage applications. Last month, the president said he was removing Cook after Federal Housing Finance Agency Director Bill Pulte accused her of mortgage fraud. Cook is suing. Her lawyer denies the charge and says the president lacks valid grounds to remove her. And in a filing late last night, Cook said a court ruling in favor of Harvard University backs her argument that President Trump's attempt to fire her is a pretext. At the same time, Nathan, President Trump is asking the Supreme Court to let him fire FTC Commissioner Rebecca Kelly Slaughter, testing a 1935 Supreme Court ruling that said Congress could insulate high-ranking officials from being fired.

7:21The filing follows a federal appeals court decision reinstating Slaughter, who is challenging Trump's attempt to ouster. Trump sought to remove Slaughter from her position in March. She sued, arguing that her ouster flouted the FTC Act, which says a president can remove commissioners only for cause. On Capitol Hill, Karen, there are plenty of fireworks at multiple hearings, one involving President Trump's Fed pick Stephen Myron. The president selected as chair of the White House Council of Economic Advisers to fill Adriana Kugler's seat on the Fed board. Democrats raised concern that because Myron says he wants to keep his White House job while serving at the Fed, that could compromise central bank independence.

7:59Myron addressed those concerns during Bloomberg's live coverage of the hearing. The president nominated me because I have policy views that I suppose that he liked. If I'm confirmed to this role, I will act independently, as the Federal Reserve always does, based on my own personal analysis of economic data, my own personal analysis of the effects of economic policies upon the economy, and act based on my judgment of the best economic policy possible. Stephen Myron says he spent much of his career studying monetary policy. Last year, he wrote a paper detailing numerous proposals to overhaul the Fed.

8:38Meanwhile, Nathan, Health and Human Services Secretary Robert F. Kennedy Jr. was criticized by Democrats and some Republicans at his hearing. Senators challenged Kennedy's changes to federal health agencies, including overhauling a key vaccine advisory panel and slashing U.S. support for global immunization efforts. He had a heated exchange about COVID with Democratic Senator Mark Warner of Virginia. There was so much data chaos coming out of the CDC and there was so many perverse incentives. You don't know the answer of how many Americans from COVID. This is the Secretary of Health and Human Services.

9:15Senator Mark Warner addressed the hearing with Bloomberg afterwards. This guy promised that he was going to follow science, not across the board fire experts. He's on, it feels like a purge against any of the respected scientists. Virginia Senator Mark Warner was speaking on Bloomberg's balance of power. And 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. here in Massachusetts, Governor Maura Healy says the Bay State will make vaccines available to its residents no matter what happens at the federal level.

9:57That means insurance carriers will have to cover vaccinations required by the state's Department of Public Health no matter what is recommended at the federal level. The move comes after HHS Secretary Robert F. Kennedy Jr. fired the CDC director, restructured the department, and attacked doctor groups that recommended vaccinations. Healy says they won't let the Trump administration get between doctors and patients. We're forced to do this as states because of the abdication of responsibility by the federal government. And so we've worked quickly here in Massachusetts. We've worked with other states.

10:34We're going to invite other states to join our coalition so that there is more of a consensus. Governor Healy says no one in Massachusetts is going to be denied because of cost. Josh Kraft is contributing an additional$3.5 million to his campaign to unseat Boston Mayor Michelle Wu. The son of billionaire New England Patriots owner Robert Kraft has spent a total of$5.5 million of his own fortune on the campaign, which has also been funded by donations from his father's friends and associates. Despite outspending his opponent, Kraft trails Wu by 30 points in a recent poll. The 30-day deployment of the National Guard in Washington, D.C.

11:17has been extended until at least the end of November. Brigadier General Leland Blanchard made the announcement via social media. I've made the decision to extend the encampment as we continue to work to ensure that everyone that walks through these city streets is safe. The order applies only to the D.C. National Guard, not those sent from other states. Rhode Island and Connecticut sue the Trump administration over its order blocking further construction of a nearly completed offshore wind farm meant to provide power to the two New England states. The states asked a federal judge to vacate a stop work order the administration issued against the Revolution Wind Project located off the coast of Rhode Island.

12:01Global News, 24 hours a day and whenever you want it with the 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 Stashauer. Thanks, Aaron. The first game of the NFL season included a lightning delay of more than an hour in Philadelphia. The Eagles and Cowboys had a lot of scoring before the delay that came in the third quarter. None afterwards. Philadelphia beat Dallas 24-20. Arena Sabalenka and Amanda Anisimova both lost the first set, won the next two semifinal winners at the U.S. Open. The men's semifinals are today.

12:37Kaitlyn Clark, due to her injury, will miss the rest of the WNBA season. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. Thinking about joining the exploding overnight market space but unsure where to start? Designed to meet the needs of a growing international investor base, OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Extend your trading day and trade global securities in U.S.

13:15dollars through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion U.S. dollars traded on Moon ATS. Learn more about Moon ATS. Visit otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

14:02Let's create smarter business. IBM. Let's talk about healthcare 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 healthcare 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.

14:44Technology 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.optum.com to see how.

15:30catching up in the AI race. We have the smartest people. We have the greatest technology. They can copy, but they can't create like we can create. And that was President Trump at a White House dinner with, among others, Meta CEO Mark Zuckerberg, Apple's Tim Cook and Satya Nadella of Microsoft and comments heard live on Bloomberg Radio. This morning, we're joined by Bloomberg's Valerie Teitel. And Val, I guess one of the biggest headlines to come out of the dinner last night as President Trump once again saying substantial tariffs on chip imports are coming very soon. But is this much different from what we've heard from the president in the past?

16:04Good morning. Honestly, it's not because he still touted that some companies like Apple will be carved out of these tariffs that he was foreshadowing could be coming shortly. Him noting specifically that Tim Cook will be in pretty good shape. Of course, that is Apple's CEO. And with Apple achieving some of those carve-outs. It's also understood that some other companies with their chip exports and imports will be getting a similar carve-out as well, as long as they tout these investments in the U.S. And as you mentioned, many of these tech leaders in the room in the White House doing so yesterday, talking about their spending vows, their investment into the U.S.

16:42to build these data centers, to get the right energy infrastructure in place to complement the boom in AI that Trump wants to build. Did we get a sense last night, Val, on what the president's priorities are when it comes to boosting Silicon Valley? Well, look, I think energy infrastructure is a big part of that. We know that many regions globally do not have the kind of energy infrastructure that is needed to drive these data centers. So many of them pledging investments into data centers as well. That's something that's laying the groundwork almost for this AI boom. But I also want to bring you attention to what's going on in the market this morning.

17:19We have shares of Broadcom up nearly 9 % in pre-market trade. They came out with a beat in earnings, and this is important for the chip sector because they also foreshadowed a pact, a new customer, OpenAI, which they'll be getting$10 billion of revenue from. This is very interesting. They are partnering with the ChatGPT owner, OpenAI, to design and produce an AI chip. This would be a direct challenge to NVIDIA's dominance in the AI chip market. But very interesting to see this announced and the shares of Broadcom lifting not only the tech sector, but the broader S &P index this morning. So, your last 30 seconds then, Val.

17:58I mean, how much of an issue could that be for NVIDIA? I mean, they've really dominated this space for so long. There's a lot of questions about that, whether adding a new competitor into the market will suffer. Margins will suffer off the back of that. But note, NVIDIA has some 95 % market share. AMD is the leader behind that. And then Broadcom, not far behind. But you could definitely argue there needs to be more competitors in this space to drive the cost down of these AI chips that could help Trump's AI boom, which he so desperately wants to take place in the U.S. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

18:39Look 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 99.1 in Washington, Bloomberg 92.9 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.

19:17I'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.

19:36When you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering, and claims experience. Learn more at thehartford.com slash risk mitigation.

20:11Policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut. Before you sign off, you tuned in for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use. ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work.

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