Trump to Meet Putin in Alaska; Nvidia & AMD to Pay US 15% of China Chip Sales

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. 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.

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1:28Learn more at thehartford.com slash risk mitigation. Policy is provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut. 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 with the highly anticipated summit coming up at the end of the week. President Trump is preparing to meet with Russian President Vladimir Putin in Alaska on Friday to discuss ending the war in Ukraine. NATO Secretary General Mark Rutte says the meeting could be a turning point.

2:09He clearly is putting pressure on Putin. Next Friday will be important because it will be about testing Putin how serious he is on bringing this terrible war to an end. Speaking on ABC's This Week, NATO Secretary General Mark Rutte said the summit could open the door to negotiations about Ukrainian territory, along with security guarantees. Ukrainian ambassador to the U.S. Oksana Markarova says her president, Volodymyr Zelensky, is willing to talk. We all understand the reality on the ground, and we are ready to discuss, you know, how to end this war, and that's why ceasefire as a step has always been so important.

2:48At the same time, Ukrainian Ambassador Oksana Makarova tells CBS's Face the Nation the Ukrainian constitution does not allow it to give up territory. Face the Nation and ABC's This Week can be heard every Sunday on Bloomberg Radio. Well, Nathan, Bloomberg News has learned European nations want to talk to President Trump ahead of his meeting with Putin. And we get more on this developing story with Bloomberg's Ewan Potts in London. And Ewan, good morning. What's the latest? Karen and Nathan, it's been a weekend of intense diplomacy between US, Ukrainian and European officials, including meetings between Vice President J.D.

3:21Vance and the British Foreign Secretary. Now Bloomberg understands that European leaders are keen to speak to the US president before Friday's summit with Vladimir Putin. Along with Ukraine, they'd like to see a ceasefire with the freezing of the current front line as a first step, along with more economic pressure on Moscow. Whether President Trump intends to pick up the phone still remains to be seen. In London, I'm Ewan Potts, Bloomberg Radio. All right, Ewan, thank you. Along with that summit on Friday, the trade truce between the U.S. and China is set to expire tomorrow. President Trump has not said yet whether he'll extend it.

3:54But before that decision, NVIDIA and Advanced Microdevices have agreed to pay 15 % of their revenues from AI chip sales in China to the U.S. government in a deal to secure export licenses to the country. We get more from Bloomberg's Min Min Lo in Hong Kong. This is something that is quite unprecedented. and no U.S. companies had done such a thing before. But it does sort of reflect the pattern that we have seen so far in the Trump administration with the president asking for certain things from companies such as domestic investments in exchange for things like lowering or exempting some of these companies from U.S.

4:29tariffs. Bloomberg's Min Min Lo says Beijing is unlikely to warm to the idea of a chip tax. And in the pre-market, NVIDIA shares are lower by more than 1%. AMD is down 2.5%. Meanwhile, Nathan, President Trump says he hopes China massively steps up its purchases of American soybeans. On a post on social media, the president said, quote, I hope China will quickly quadruple its soybean orders. We get more from Bloomberg Global Trade Editor Brendan Murray. The interesting thing here is that U.S. farmers are looking out at their fields at the moment. They're not quite ready to be harvested, but they're looking at the price of soybeans going, wow, those have really been flat for the past 12 to 18 months.

5:09And so perhaps Trump is trying to accomplish two things here, and that's extend an olive branch to China to say, hey, we've got soybeans coming for you, a surplus of them at a low price, and at the same time try to stoke the price of soybeans for key constituents of his throughout the Midwest of the country. Bloomberg's Brandon Murray says President Trump also thanked Chinese leader Xi Jinping in the post without saying why. Soybean futures in Chicago rose back above$10 a bushel for the first time in a week after the post. And the price of lithium is spiking this morning, Karen. That's after battery giant contemporary Amperex Technology, CATL, halted operations at a major Chinese mine.

5:52That's spurring speculation Beijing might move to suspend other projects as it tackles overcapacity across the Chinese economy. Later this morning, Nathan, President Trump plans to put his focus squarely on the nation's capital. He scheduled a news conference from the White House on ending violent crime in D.C. In a social media post, the president said the plan will include moving homeless people out of the city. Washington, D.C. Mayor Muriel Bowser says the president has the power to step up law enforcement in the federal city, but she says it's not the best use of federal resources. This is what I know.

6:26We are not experiencing a crime spike. We do know that this task force has been focused on quality of life issues. And speaking on MSNBC, Mayor Bowser said 450 federal officers spread across the city on Saturday night only seized a few handguns and made traffic arrests. The president's news conference is set for 10 a.m. Wall Street time, and you can hear it live on Bloomberg Radio or watch on the Bloomberg podcast page on YouTube. Oh, ahead of that, Karen, let's turn to the markets now. Futures are a little changed this morning as we kick off the new trading week, but the Nasdaq 100 is trading at an all-time high.

7:02The S &P 500 is coming off its best week since June. Nathan, Goldman Sachs is saying that U.S. consumers will eventually bear the brunt of tariff costs, and we get more on that story with Bloomberg's Gina Cervetti in New York. Goldman says U.S. companies have so far absorbed most of the costs of Donald Trump's tariffs, but the burden is increasingly going to shift to consumers. The firm says consumers in the U.S. have absorbed an estimated 22 percent of tariff costs through June, but their share will rise to 67 percent if recent tariffs follow the pattern of previous levies. Goldman says as a result, there will be a bump to inflation for the rest of this year.

7:41Goldman predicts a year-on-year core PCE reading of 3.2 percent in December. That's based on an assumption that underlying inflation net of tariffs would be 2.4 percent. In New York, Gina Cervetti, Bloomberg Radio. All right, Gina, thank you. Fed Governor Michelle Bowman is calling for three rate cuts this year, starting next month. Last month, Bowman was one of the two dissenters when the Fed held rates steady. She's also calling for reforms in community banks. Community banks are the cornerstone of the banking and financial system, supporting local communities and their customers. Too often, community banks have been overlooked, with too little attention paid to longstanding and emerging issues and industry and consumer concerns.

8:25Fed Governor Michelle Bowman made those comments over the weekend at the Kansas Bankers Association in Colorado Springs. And speaking of the Fed, Nathan, we have a programming note coming up later this month. Join us for live coverage from Jackson Hole. We'll be on the ground in Wyoming to cover the Kansas City Fed's annual meeting and remarks from Chair Jay Powell. It all begins Wednesday, August 20th and finishes up with a special edition of Bloomberg Surveillance. Tom Keen, Lisa Abramowitz and Michael McKee will all be part of that special starting at 9 a.m. Eastern on Friday. Plus, watch for special episodes of the Odd Lots podcast.

8:58Joe Weisenthal and Tracy Alloway will be taping several conversations from the event as well.

9:06Time now for a look at some of the other stories making news in New York and around the world. And for that, we welcome back Michael Barr. Michael, good morning. Good morning, Karen. Israeli Prime Minister Benjamin Netanyahu defended his plan for a military sweep against Hamas strongholds in Gaza. Netanyahu calls it the best available option for recovering hostages while safeguarding his country's long-term security. Netanyahu also defended his country against what he called a global campaign of lies, pushing back at claims of starvation on the ground in Gaza. Now, if we had a starvation policy, no one in Gaza would have survived after two years of war.

9:44But our policy has been the exact opposite. Meanwhile, Australian Prime Minister Anthony Albanese says Australia will recognize a Palestinian state. His remarks today come amid growing criticism from officials in his government over suffering in Gaza. Four Al Jazeera journalists were among five people killed Sunday when an Israeli airstrike hit a tent in Gaza City. The Israeli military said the target of the strike was Anas al-Sharif, a contract reporter whom the Qatari media network hired to cover the Israeli Hamas war. The IDF said that al-Sharif posed as a journalist and was a member of the military wing of Hamas.

10:25Witnesses and health officials in Gaza said the attack also killed another reporter and two cameramen. Freelance journalist Andre Leon, coordinator of Freedom to Report, says Gaza is facing the worst press blackout in modern conflict. The government keeps lying and we see what they are doing. They are silencing more and more voices. We cannot accept this anymore. Meanwhile, Reporters Without Borders says Israel has killed over 200 journalists in Gaza since its offensive began. Continued heavy rainfall in a half a dozen Midwest states has led to water rescues, power outages and road closures. The National Weather Service has issued flood watches and warnings for parts of Kansas, Iowa, Nebraska, Missouri, Illinois, and Wisconsin.

11:13Global news 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. All right, Michael Barr, thank you.

11:25Time now for the Bloomberg Sports Update brought to you by Fleshing Bank. And here's John Stashauer. John, good morning. Good morning, Karen. of all the Mets losses and they dropped 10 out of 11 back in June. They're in the midst now of 11 losses in 12 games. This one stings the most. They scored in each of the first five innings. They led 5-0 in Milwaukee. Back came the Brewers. It was 6-6 in the ninth. Collins, five ball, deep in the right field. Isaac Collins, it is a rock-off home run. He's done it again. his first ever and the Brewers have won their ninth straight game they've also won 24 their last 28 Brewers TV to call the Mets losing streak is at 7 they have fallen 5.5 games behind the Phillies they're barely ahead for a wild card the Yankees are 6.5 out also the slimmest of wild card leads Yanks at the stadium lost to Houston 7-1 Astros got home runs from Jose Altuve and Carlos Correa.

12:29Yanks had only three hits, none until the sixth inning. Another loss for Max Fried in his first 11 starts. Fried never gave up more than two runs. He's allowed more than two in six of his last seven. You go through spells sometimes, but to be honest, I have to be better. I just got to be better at locating, being able to throw and get more ground balls and haven't been able to do it. It's something I need to dive into and see what adjustments I need to make. Red Sox lost 6-2 in San Diego. Nationals over the Giants 8-0. Justin Verlander now 1-9. Seventh straight win for Seattle, and Cal Raleigh hit his 45th home run.

13:08Golf in Memphis came down to two Americans and two Brits falling short. Scotty Scheffler, who seems to always win, and Tommy Fleetwood, who has still never won on the PGA Tour of the playoff, had U.S. Open champ J.J. Spahn against Justin Rose, who won the St. Jude on the third extra hole. John Stashauer, Bloomberg Sports, Karen and Nathan. 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.

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15:48This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Anticipation is building for President Trump's Alaska summit at the end of the week with Russian President Vladimir Putin. NATO Secretary General Mark Rutte says it could be a turning point in the three-and-a-half-year war in Ukraine. My absolute conviction on Friday is that this is President Trump making sure that Putin is serious. And if he is not, then it will stop there. If he is serious, then from Friday onwards, the process will continue. NATO Secretary General Mark Rutte appeared on CBS's Face the Nation, heard Sundays on Bloomberg Radio.

16:21This morning, we're joined by Bloomberg News senior editor Bill Ferries. And Bill, over the weekend, we heard from the secretary general saying there could be negotiations on territory in these discussions. But how far could those talks go without Ukraine at the table? Good morning. Good morning. Yeah, Ukraine not at the table and and Ukraine also saying they are not willing to cede any territory. So that's going to be those are going to be big stumbling blocks at this point. I think the comments the secretary general there made about whether Putin is serious are is really kind of the going to be the gauge here.

16:57President Trump has basically in recent weeks been expressing a lot of frustration with Vladimir Putin and the war continuing. continuing this will be a chance to see if there's a serious deal that could be made. But it will be very hard to sort of reach that divide between the two sides. Vladimir Putin says he still wants to hold on to Crimea. But more than that, he wants to hold on to these territories in the east of Ukraine that his troops don't even control the entirety of. So he says those are also part of Russia. That's going to be a very hard sell in Ukraine. So a lot of questions going into this.

17:39It's entirely possible they don't get a deal coming out of that. And a lot of questions I would imagine that European leaders have before this conversation. We're hearing that they want to speak with President Trump before he goes face to face with Putin at the end of the week. Is there a sense that the U.S. and Europe are aligned before these discussions? Well, we know, you know, we know J.D. Vance has been meeting with some European officials. And you're right. European officials are are largely united in terms of wanting to talk to the U.S. and wanting to say that the U.S. should not accept Russian control of Ukrainian territory.

18:19They say that would effectively that would effectively reward Vladimir Putin for that 2022 invasion. So there seems to be a very, very big difference of opinion there as well. I think the European fear is that President Trump will reach some sort of a deal with Putin that leaves all of the rest of the parties to the conflict out. And then Europe will have to decide whether to go along with that deal or whether to continue possibly without any further U.S. support in the conflict. Before the summit on Friday, the U.S.-China trade truce is set to expire tomorrow. And ahead of that, we're hearing that NVIDIA and Advanced Micro Devices have agreed to pay 15 percent of their AI chip sales in China to the U.S.

19:07government. How unusual is this in our last 30 seconds? Oh, highly unusual. This is effectively a U.S. government tax on specific companies for selling specific products to China. It's going to raise a lot of red flags with other companies in that same business. It's going to raise flags with companies doing business with China. And I think China is going to be concerned. They've already been trying to talk companies out of buying some of those H20 chips from NVIDIA. This may accelerate that process.

19:48Eastern 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. I'm Karen Moscow.

20:25And 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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