Trump, Xi Prepare for High-Stakes Meeting; Oil Extends Decline

0:00Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans.

0:42This is Robert Smith from Business History. If you're listening to this, there's a good chance you're a small business owner. And like every small business owner, you started with a dream to do what you love and watch it grow. What you probably didn't dream about? Keeping up with cyber threats. That's where MasterCard can help, with access to tools that help identify cyber threats to better protect your business. Building your dream business? Priceless. For cybersecurity in a changing world, there's MasterCard. Learn more at MasterCard.com slash small business. As industries evolve faster than ever, companies need an environment that accelerates strategic growth and Michigan delivers on that promise.

1:20From emerging startups to global enterprises, Michigan offers what executives value most, a resilient, innovative ecosystem, diverse communities that attract top talent, and a quality of life that supports work-life balance. With our unified Team Michigan approach, businesses scale faster and compete at the highest level. Michigan, pure opportunity. Seize your opportunity at michiganbusiness.org. 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 this week's high-stakes summit between President Trump and his Chinese counterpart Xi Jinping.

2:05Before the Chinese president arrives in Washington on Wednesday, the U.S. and China have agreed to open a new dialogue on artificial intelligence. Treasury Secretary Scott Bessent led high-level talks with top Chinese officials over the weekend. He says they were very successful. We think that just like with any cross-border activity, that moving from opaque to more transparency between the number one and the number two AI powers in the world is very important. That was Treasury Secretary Scott Besson. Did China's Xinhua News Agency describe the talks as, quote, candid, in-depth, and constructive?

2:43The discussions between Presidents Trump and Xi are expected to center on AI competition as well, along with trade, semiconductor exports, and potential Chinese electric vehicle manufacturing in the U.S. Well, Nathan, we're learning more this morning that Microsoft CEO Satya Nadella is planning to attend the White House state dinner for President Xi later this week. Sources say he'll be joining leaders at Apple, OpenAI, and NVIDIA, as well as Qualcomm. Bloomberg reported last week that Apple executive chairman Tim Cook is also set to attend the dinner on Thursday. And Karen, President Trump also says he is open to meeting with Iran's president as the U.N.

3:19General Assembly gets underway this week in New York. The president told Fox News he's in, quote, deciding mode on Iran and some big things may happen in the not so distant future. Meantime, Qatar's energy chief says Treasury Secretary Besant is wrong to suggest the Strait of Hormuz will become worthless in a couple of years as countries build pipelines to bypass it. Qatari Energy Minister Saad al-Kaabi spoke at the Qatar Economic Forum in New York, powered by Bloomberg. I mean, we have a few countries that have waterways outside the Gulf, but the rest of the countries are all inside the Gulf.

3:52So you have a lot of trade other than oil and gas that is needed. So to call it obsolete, I think is wrong. Saad Al-Kaabi is also CEO of Qatar Energy. And this morning, oil is dropping for a fourth day. Brent is set for its longest run of decline since June. The head of U.S. Central Command says crude and liquefied natural gas flows through Hormuz are running at a six-month high. Stellanathan U.S. retail diesel prices, they've topped$6.50 a gallon for the first time. Global supplies have been squeezed by the Iran war and Russia's ban on most exports of the fuel. The surge has led to speculation that the Trump administration might impose export curbs of its own, but Interior Secretary Doug Burgum has said that would not bring down prices.

4:34And Karen, of course, diplomatic efforts continue to try to end the conflict. Iran has been sending the U.S. conditions to resume negotiations through mediators from Qatar. Majid Al-Ansari is an advisor to Qatar's prime minister. For the past couple of weeks now, we've been going back and forth over different ideas. It's pretty stark since the return of possibilities to the region. We've been looking together to see our mediator team in both Tehran and the U.S. to see what can get started again. Qatar's Majid Al-Ansari spoke to Bloomberg this weekend at the Qatar Economic Forum. You can catch Bloomberg this weekend every Saturday and Sunday at 7 a.m.

5:13Wall Street time on Bloomberg Radio and Television and the Bloomberg Business App. Well, Nathan, there are a couple more key meetings happening in New York this week. Ukraine's President Volodymyr Zelensky said he'll meet President Trump during the U.N. General Assembly, saying the meeting could change a lot in that there is diplomatic momentum. And the president will also be meeting with New York City Mayor Zoran Mamdani at the mayor's residence later today. It'll be their third in-person meeting since Mamdani was elected mayor. Elsewhere in geopolitics, Karen, the U.S., Denmark, and Greenland have signed a security pact that boosts Washington's presence on the Arctic Island without giving up any land.

5:49Former U.S. diplomat Louis Lukens told Bloomberg Greenland is open for business, but still faces massive hurdles. It's a very harsh terrain. It's a very difficult place to do business. The infrastructure needs to kind of create or to develop the mining industry here, to develop hydropower. There's huge potential in mining and hydropower, but it's very, very difficult. And they also, they have 0 % unemployment here. Very small population. Everyone works. They desperately need a workforce and laborers to come in and do these projects. And former U.S. diplomat Louis Lukens was also a guest on Bloomberg this weekend.

6:28Meanwhile, in Europe, Nathan, pressures mounting on Germany's Chancellor Friedrich Mertz after an historic election defeat. For the first time since World War II, his Christian Democratic Union failed to win a single seat in a state election. The CDU took just 4.9 percent in Mecklenburg, Western Pomerania, while the far-right AFD won with 38.2 percent. In another election in Berlin, the governing CDU was defeated by the anti-capitalist left party. Speaking through a translator, Mertz insists he will stay on as chancellor, but offer this frank assessment of the defeat. We can't sugarcoat the result in Mecklenburg, Western Pomerania.

7:07It's a disaster. The CDU fought hard, but in the end, it was crushed in the escalating confrontation between the SPD and the AFD. Mersh will hold crisis talks with party leaders today as some in the CDU question how long he can remain in power. We're following another overseas election this morning, Karen. With practically no genuine opposition on the ballot, Russian President Vladimir Putin's ruling party is headed for a landslide parliamentary victory. Russia's election commission says the United Russia Party has 57 percent support with a quarter of votes counted. The final day of voting also saw Ukraine's biggest drone attack on Russia this year.

7:47Many of those drones were intercepted, but several hit a major oil refinery near Moscow. Well, let's turn to the markets now, Nathan, and continued pressures on the U.S. economic outlook. Stocks are getting a boost, though, ahead of a week of diplomacy and sliding oil prices. Even so, we're hearing some bearish sentiment this morning. Mark and Stanley CIO Mike Wilson is saying that stocks risk a 7 % near-term drop amid market volatility and U.S. midterm uncertainty. And it comes as Kansas City Fed President Jeff Schmid signals he expects monetary policy to stay tight. Schmid recently said even if you exclude energy prices, inflation remains hot on a range of goods and services.

8:29Turning now to the latest on AI this morning, Karen Citigroup CEO Jane Frazier says companies are racing to strengthen their defenses as increasingly powerful models create new cyber risks. Frazier says the arrival of Anthropoc's Mythos model is a wake-up call for businesses. When Mythos came out, that was not a good day when we saw the power of the model. So there is a race to defend and shore up all of the firm's perimeters. And there is a tsunami of patching going on in the world at the moment, in all companies, as we make sure that we are trying to secure the defense around the perimeters of our firms against the negative side of the models.

9:13Citigroup CEO Jane Frazier spoke at the Qatar Economic Forum. Anthropic CEO Dario Amade kicked off a major debate on AI development with a 3 ,800-word essay this month calling for the pace of Frontier models to slow as well as for stronger safety measures. Well, in U.S. company news here, Nathan Settlement talks between Paramount, Skydance, and Californian officials include a financial penalty if the company fails to distribute 30 films per year in theaters. Paramount would have to pay$30 million for each film that falls short to that goal and could also be forced to sell Miramax if it fails to meet that target.

9:49Potential concessions discussed, including a significant investment in film production in the U.S., with the size of the investment promise potentially being around$1.5 billion. Bloomberg is reporting no terms have been finalized, but that settlement talks between the parties have accelerated in recent days. And finally, Karen, Lindsey Clancy's former Her husband is given his first televised interview after the jury deadlock in his ex-wife's trial for the murder of their three young children in Massachusetts. Patrick Clancy was the prosecution's first witness in the trial. He appeared on CBS's 60 Minutes and talked about his grief and his forgiveness of his wife, believing her mental illness caused those deaths.

10:32There was a time where I didn't think I would live to see my 35th birthday, and I was completely fine with it. That was Patrick Clancy again on CBS's 60 Minutes. Lindsay Clancy admitted to strangling her children but pleaded not guilty by reason of insanity, saying that she should not be held criminally responsible because she suffered from postpartum psychosis. Prosecutors contended that Clancy had control of her actions.

11:00Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Local authorities say a U.S. Immigration and Customs Enforcement officer shot and wounded a man Sunday in Austin, Texas. Anti-ice protesters quickly gathered at the scene. According to the Department of Homeland Security, the man was in serious but stable condition after being shot once in the torso. He is in federal custody pending removal. Austin Mayor Kirk Watson said he wants the city's police department to have a role in the investigation to provide clear third-party eyes in the process.

11:39I'm extremely unhappy. A person being shot on the streets of Austin by someone purporting to be law enforcement, particularly when it's ICE. Homeland Security, with FBI assistance, is also investigating the shooting. President Trump banning several news organizations from the White House was the topic on the Sunday talk shows. journalists from MSNOW, CNN, and Politico were denied access to the White House grounds after President Trump said on social media that he had banned the news outlets over what he called their constant reporting fake news. House Majority Leader Steve Scalise. Well, I don't know why he did it.

12:16I don't know what the background is. Look, when we have our press conferences every week, the speaker, myself, our leadership team, we take questions from everybody. CNN's there, all of them. But the president takes those questions. I've never seen him turn a question down from anybody. House Majority Leader Steve Scalise spoke on ABC's This Week, heard Sundays on Bloomberg. President Trump says the U.S. will demand drug companies break their vaccines into smaller doses. Bloomberg's Amy Morris reports from Washington. President Trump says they'll break up the vaccines into 20 percent doses. So we're going to recommend that they do five doses marked one, two, three, four, five, and that they be given in six month intervals.

13:00Trump did not say which vaccines the administration plans to split apart. He says he thinks people will see a reduction in autism. Global scientific research has established there is no link between childhood vaccines and autism. In Washington, Amy Morris, Bloomberg Radio. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. A day of upsets in the NFL like Cleveland's 23-19 win at Tampa Bay. New Orleans came from behind a win at Baltimore 24-17.

13:39The Raiders beat the Chargers in L.A. 26-14. The Raiders only had three wins last season. They're 2-0 this year. And a week after Chicago scored 59 points, they were held to three and lost at home to Minnesota 9-3. Wild game last night. It went to overtime. Kansas City, a field goal on the last play to beat the Colts. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work.

14:22It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans. You already know how AI is changing how everyday work gets done, how much ground you can cover, and how fast a team can scale. To stay ahead, you need the tools that give you a competitive advantage built for this new era.

15:00Welcome to Agentic Revenue. Adio is the CRM for this world. It meets you where you work, compounds every customer signal into context, then acts on it across your pipeline to let you move in on match speed and scale. With agents and automations for every job in revenue, Adio orchestrates your work around the clock. Built to handle the scale of your workloads, extensible with API and MCP, and with the infrastructure to keep up with your most ambitious agents. Loved by high-growth startups like Granola, Modal, and Etched, Adio runs the work behind every win. That's Adio, the agentic CRM, the intelligent system that never sleeps.

15:35Picks up leads at 2 a.m., catches renewals before they slip, hands you the answer before you ask. Try Adio free at adio.com slash iHeart. That's adio.com slash iHeart.

15:50We know kids don't hold back. And I wouldn't want them to. Get in there, make a mess, slide for home, bring on the stains. I've got OxyClean Versatile Stain Remover. It works on over 100 stains, and it's America's number one stain fighter additive brand. It's color-safe and chlorine-free, so I use it on whites, colors, and dark fabrics. And OxyClean isn't just for laundry. Mix it with water for use all around the house, kitchens, bathrooms, and even floors. When my kids go all in, I say go for it, because I've got OxyClean to get the stains out. It's not clean unless it's OxyClean.

16:23Coast to Coast on Bloomberg Radio. Nationwide on SiriusXM. and around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. And both the U.S. and China are sounding positive this morning following high-level talks on trade, investment, and artificial intelligence ahead of President Trump's summit with Xi Jinping this week. White House Science and Tech Advisor Michael Kratzio says an open dialogue on AI is key. The key thing that we want to talk to them about is avoiding shared risks, And that's something that I think we can have a fruitful conversation on.

16:58That was White House tech advisor Michael Kratios on Fox News Sunday, heard every Sunday on Bloomberg Radio. And joining us from Hong Kong this morning is Bloomberg News Managing Editor Jill Deesis. Jill, so Secretary Besant following these discussions is talking about a U.S.-China AI dialogue. Heading into the summit later this week, how significant could this be? Good morning. Good morning, Nathan. Yeah, so I mean, this is something that the U.S. and China have been kind of paving the road for for quite a while now. Now we had just gotten sort of that first look at what this AI dialogue is intended to include.

17:35Besson saying that this is supposed to be about developing this common understanding of technologies, benefits, and threats when it comes to artificial intelligence. We have also heard that Washington has proposed a notification mechanism covering AI incidents with national security implications. It does seem like what the U.S. and China are ultimately trying to accomplish here is this task force that's for rather this dialogue that's aimed at managing risks rather than creating binding limits on AI development. I think that's particularly important to keep in mind just because of a lot of the chatter about AI that we've been discussing in recent weeks involving Anthropic and others.

18:12But this at least does kind of seem like those first steps that the U.S. and China have really set up here. We've had some indication from Besant talking to the Financial Times that this is a dialogue that they intend to sort of meet touchpoint on, you know, maybe in a couple of months or so. So it is sort of like that first step. But, you know, it does kind of beg the question about what further the U.S. and China are going to be discussing when it comes to these AI topics. Certainly does, given that both sides have said that, you know, keeping the pace of AI development is key to their own competitiveness.

18:48I mean, how much transparency can we expect at a time when we've heard President Trump very clearly say that whoever wins AI wins? Yes. I mean, this is a great question here. You've got two governments that in many ways may not be necessarily incentivized to share everything with each other when it comes to these issues, particularly if they think that this represents sort of a race for national security, any of these other kinds of threats here. I think that it also does speak to the fact that when it comes to not just artificial intelligence, but a lot of other issues, whether that be trade or investing or just geopolitics more generally, the U.S.

19:25and China are quite far apart on a lot of these different issues. But at the same time, these are the world's two largest economies. And, you know, it does kind of behoove them a little bit to sort of keep, you know, maybe, you know, keep this rivalry going, but also to sort of, you know, prevent this relationship from spiraling out of control, from escalating to a point they can't control it. So I do think that that's why you're seeing these two sides sort of project this idea of good vibes going to the Trump-Xi summit. You know, not sure where we're going to land in terms of major deliverables when it comes to the U.S.

19:56and China by the end of this week when Trump and Xi do meet. But it does kind of tell you that, you know, both of these sides maybe are benefiting from keeping this relationship fairly steady. But again, you know, I mean, even when it comes to some of these issues like artificial intelligence, it's very difficult to see where exactly they're going to see eye to eye on these things. 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.

20:28You 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. 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.

21:18Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com. This coffee shop? Running smooth thanks to Genius. From Global Payments. Instant transactions, effortless inventory, and synchronized operations.

21:59Big League reliability for any business. That's genius. This is Robert Smith from Business History. If you're listening to this, there's a good chance you're a small business owner. And like every small business owner, you started with a dream to do what you love and watch it grow. What you probably didn't dream about? Keeping up with cyber threats. That's where MasterCard can help with access to tools that help identify cyber threats to better protect your business. Building your dream business, priceless. For cybersecurity in a changing world, there's MasterCard. Learn more at MasterCard.com slash smallbusiness.