Trump Moves to Preserve Xi Truce While Reassuring Ally Japan, Moscow and Kyiv Trade Fire

0:00Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London with the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens It's smart, calm and to the point And it fits into your morning You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris On Apple, Spotify, YouTube or wherever you get your podcasts

1:02Bloomberg 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 with a delicate diplomatic situation for President Trump as tensions rise between China and Japan over the status of Taiwan. The president held back-to-back phone calls with the leaders of both countries. China's foreign ministry says the U.S. initiated the hour-long conversation with President Xi Jinping. Bloomberg's Min Min Lo reports for President Trump the focus was keeping trade talks on track. Trump's true social post was very much about soybeans, about fentanyl, about trade, and didn't really mention Japan and Taiwan, but the Chinese readout heavily focused on Taiwan and Ukraine.

1:51China also mentioning, you know, it wants to see both sides, Ukraine and Russia, keeping to a binding peace agreement, but definitely Japan was a part of it. And Bloomberg's Min Min Lo reports President Trump then called Japan's Prime Minister Sanae Takeichi to reaffirm their ties. Any sign the U.S. is siding with Japan on Taiwan could jeopardize the trade truce that saw China suspend many rare earth restrictions while the U.S. lowered fentanyl-related tariffs. President Trump's NSA plans to visit China in April. Now, Nathan, to the latest on efforts to end the war in Ukraine. The fighting continued overnight with heavy Russian drone and missile attacks on Kiev and Ukrainian assaults on southern Russia.

2:30The exchanges came after President Trump suggested big progress was being made on a deal to end the fighting following weekend talks in Geneva. White House Press Secretary Caroline Levitt says he still hopes a deal can get done by Thanksgiving. He wants to see this killing stop. As for any deadlines, he wants to see this end as soon as possible. Press Secretary Caroline Levitt speaking at the White House after Ukraine and European officials presented a counteroffer to the U.S.'s 28-point peace plan. We get more with Bloomberg's Oliver Crook in Brussels. It appears that now it's this sort of 19-point plan that's sort of the living document that the United States is working from and now is going to have to obviously take that back to the Russian side.

3:11The commentary from the Russian side so far is that the 19-point plan is a non-starter. We understand also from Zelensky, who briefed the people of Ukraine last night, as he does every night that after the Geneva talks that no longer the 28 point plan, many of the right elements have been taken into account into that framework. And Bloomberg's Oliver Crook reports Army Secretary Dan Driscoll will meet with a Russian delegation in Abu Dhabi today. Ukraine's defense secretary says President Vladimir Zelensky wants a visit with President Trump in the U.S. by the end of the month. Well, Karen, the European Union's rejected a U.S.

3:45demand to ease its tech regulations in return for lower steel and aluminum tariffs. The EU's antitrust chief says the bloc's digital rulebook is, quote, not up for negotiation. The comments come after Commerce Secretary Howard Ludnick told Bloomberg the Trump administration could relax levies in return for the digital rollback. So we're talking to him about take your foot off the regulatory statement, build those data centers in America, and in exchange for that, We'll come up with a cool steel and aluminum deal that we'll all be together. Commerce Secretary Howard Ludnick spoke yesterday right here on Bloomberg Radio.

4:22The Trump administration has long fumed that the EU treats American tech giants unfairly, pointing to both its regulations and large fines the bloc has imposed on firms like Google. Nathan, the White House says President Trump is still working on a proposal to address a spike in Obamacare health insurance premiums, but the eventual plan may differ significantly from details reported over the weekend. Kate Sullivan covers the White House for Bloomberg. There really is added pressure on the White House right now to address these rising costs, to bring these costs down, because there's been really a renewed focus on affordability and rising costs.

4:59This was a winning message for Democrats recently on Election Day. This is something that the White House knows that they need to really recalibrate their message on. We've heard the president really speak a lot more about affordability recently. Bloomberg's Kate Sullivan says the eventual proposal is expected to include extended subsidies for those purchasing health insurance on the Affordable Care Act exchanges with new income limits and a requirement for enrollees to pay a nominal monthly premium. Turning to the markets now, Karen. Futures are lower following yesterday's tech-led rally on Wall Street.

5:33The Nasdaq gained 2.7 percent. But this morning, NVIDIA shares are down more than 3 percent. For more on what's behind the decline, we're joined by Bloomberg's Lisa Mateo. Lisa. Hey, Nathan. Yeah, the industry's best-selling accelerator, known as the gold standard for big tech firms, startups, it's in for some competition. Meta reportedly in talks to spend billions on Google's AI chips. They're known as Tensor Processing Units, or TPUs. They're going to be in data centers in 2027. Sources tell the information Meta also may rent chips from Google's cloud division next year. Now, an agreement would really help establish TPUs as this alternative to NVIDIA chips.

6:12Now, shares of Alphabet, they're up about 3%, and that's adding to that recent surge on Optimismo for its latest Gemini AI model. Lisa Mateo, Bloomberg Radio. All right, Lisa, thank you. Another tech giant is making headlines this morning. rare layoffs at Apple. The iPhone maker is eliminating dozens of sales rules in a bid to streamline the way it offers products to businesses, schools, and governments. It's unusual for Apple to make cuts across an organization, and the layoffs came as a surprise to those affected. The move is especially notable because revenue has been growing at the fastest clip in years.

6:46Apple's on track to generate sales of nearly$140 billion in the December quarter, smashing its previous record. Well, Karen, the intense selling pressure that's weighed on Bitcoin in recent weeks looks to be easing. It's raising hopes that the token's brutal slide may be near an end. Right now, Bitcoin is trading around$87 ,000. It's down nearly 2%. Bitcoin is on track for its worst month since 2022. Nathan, we now turn to the economy where investors are boosting bets on the Fed cutting rates next month, and Fed Governor Christopher Waller is the latest official to call for a cut in December. The labor market is still weak and not, we're getting no evidence telling me it's rebounding, despite what the jobs report for September said.

7:30So my concern is mainly the labor market in terms of our dual mandate, so I'm advocating for a rate cut at the next meeting. Fed Governor Chris Waller made the comments on Fox Business, and right now, traders are pricing and a 75 % of a rate cut next month. An important but long-delayed look at consumer spending is out later this morning. Karen, we get the details on that from Bloomberg's Tom Busby. Just ahead of Thanksgiving, Black Friday, and Cyber Monday, the Commerce Department is coming out with the shutdown-related September retail sales report later this morning. Now, economists tell Bloomberg they expect to see moderated growth up 0.4 % following a gain of 0.6 % in August.

8:08As many consumers, especially lower-wage earners, temper their spending because of higher prices, stubbornly high inflation, and worries about their jobs as employers curb their hiring. Tom Busby, Bloomberg Radio. All right, Tom, thank you. Boeing says it's making progress in its war against defects at its 737 jet plant factory. Efforts including weekly meetings where employees discuss on-the-job impediments and irritants. The company has seen encouraging results, including a decline in traveled work and lost tools, and is planning to increase 737 output to 60 jets a month. Time now for a look at some of the other stories making news in New York and around the world.

8:49And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. A federal judge has dismissed the criminal cases against former FBI Director James Comey and New York Attorney General Letitia James. U.S. District Judge Cameron McGowan-Curry ruled the appointment of Lindsey Halligan as interim U.S. attorney for the Eastern District of Virginia was unlawful. White House Press Secretary Caroline Levitt. The Department of Justice will be appealing very soon, and it is our position that Lindsey Halligan is extremely qualified for this position, but more importantly, was legally appointed to it.

9:23The rulings allow prosecutors to potentially refile the cases, although Comey's lawyer said the statute of limitations has expired and the Justice Department can't re-indict him. James' lawyer said that they will continue to challenge any further charges. The Pentagon says it's investigating Democratic Senator Mark Kelly of Arizona over possible breaches of military law after the former Navy pilot joined a handful of other lawmakers in a video that called for U.S. troops to defy illegal orders. The Pentagon cited a federal law that allows retired service members to be recalled to active duty on orders of the defense secretary for possible court-martial or other measures.

10:08Kelly, in a statement, says, New York prosecutors say they've dismantled a sophisticated porch pirate criminal organization on Long Island. The Suffolk County Prosecutor's Office said that 14 people face up to 50 felony charges. Suffolk County District Attorney Ray Tierney says the thieves hacked FedEx's system, placed orders for cell phones under bogus names but using real addresses, and then wait outside those homes to grab the packages. Once they were placed into the system, the co-conspirators would then contact these runners and tell them, these are the names and you're going to go out and pick these up.

10:51D.A. Tierney says the stolen phones were allegedly resold in the U.S. and internationally. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barm and this is Bloomberg Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. Just two years ago, the Detroit Pistons had a 28-game losing streak. They just won at Indiana, 122-117. This Pistons team has won 13 games in a row to tie the club record. Monday Night Football at Santa Clara. The 49ers beat Carolina 20-9. Christian McCaffrey, for the first time, facing his former team.

11:28He had 142 yards and scored a touchdown. Joe Burrow hasn't played since the toe injury suffered in Week 2. He will start for Cincinnati Thursday night in Baltimore. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots. Visit Bloomberg.com slash podcast offer to learn more. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App.

12:11This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. The U.S. may find itself in a couple of diplomatic balancing acts now. Tensions are rising between China and Japan over the status of Taiwan, and Russia and Ukraine continue to trade heavy fire as the U.S. races to hammer out a plan to end nearly four years of war in Europe. For more on all this, we're joined by our chief Asia correspondent for Bloomberg News, Rosalind Matheson. Ros, good morning. We know that the president held back-to-back phone calls with the leaders of both China and Japan yesterday. What does that tell us about where that situation stands?

12:46Good morning. Good morning. Well, that's right. Yeah, he spoke first with the Chinese president, Xi Jinping, and then subsequently on the phone with the Japanese prime minister to give her, it seems, a readout of his conversation, or at least some of it with the Chinese leader. And it really shows the delicate diplomatic dance that we're in at the moment. You've got tensions high between China and Japan. You've got Taiwan caught in the middle. in the US, obviously, with a vested interest in keeping things on a lower simmer. Donald Trump, the US president, wants to keep the trade truce with China going.

13:20He doesn't want to see anything come up that might start to derail that. But equally, he probably doesn't want to be accused of siding too much with Japan, even though Japan is a key US ally. So he's obviously dancing here between the two to try and potentially encourage this situation to calm down, but also not to be seen to be taking too many sides because his ultimate priority is to have this trade truce developed with China to get to an even bigger trade agreement. He said he spoke with the Chinese President Xi Jinping as part of their call about purchases of soybeans, other US farm products, as well as still curbing shipments of fentanyl.

14:02So there's still a lot of elements to go here, including a proper understanding around Chinese rare earths, that talks and implementing that still continue. So it really seems that Trump may have instigated this call, at least according to China, and in doing so, perhaps wanting to see if there's a way just to calm things down a bit. And we know talks are continuing on all sides on efforts to end the war in Ukraine. We understand that the army secretary who was just in Geneva over the weekend with Ukrainian officials is now meeting with Russian officials in the United Arab Emirates as, I guess, the points of a peace proposal kind of keep shifting?

14:42Well, that's right. It's interesting, again, to see the rise to prominence of the U.S. Army Secretary Dan Driscoll in all of this. He's known to be very close, of course, to the U.S. Vice President Vance. But now you do have the U.S. Secretary of State, Marco Rubio, in there trying to direct the traffic a bit and potentially also working to slow things down a bit beyond these immediate deadlines, because there's a lot in all of these negotiations that's very fraught. This will be trying to bring an end to a war that's been running for years, and where Russia has some very strong demands in order to do so.

15:16But at least there are further conversations happening. These are between the US and Russia, as you were saying. In Abu Dhabi, there's some push, at least for the Ukrainian leader to visit the U.S. again at some point this month. Vladimir Putin's need to get there and have face-to-face time potentially with Donald Trump. But there's a lot of parameters in this deal that are unclear. We have Russia saying today, again, they won't be satisfied if they feel what they call the letter and spirit of agreements between Vladimir Putin and Donald Trump that were reached in Alaska, raised, they say, from this peace plan.

15:48They're 28 points. And so lots of points of disagreement and quite a way potentially from a ceasefire. 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 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.

16:28And 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.