Trump-Xi Summit Wraps in Beijing; Jay Powell's Final Day as Fed Chair

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1:53And I'm Karen Moscow. Here are the stories we're following today. Karen, the Beijing summit between Presidents Trump and Xi Jinping of China is in the books. The president is on his way back to Washington now. After a whirlwind 36 hours that ended with a visit to Jiangnanhai, the secretive headquarters of China's Communist Party, the president is touting his trip as a success. This has been an incredible visit. I think a lot of good has come of it. We've made some fantastic trade deals, great for both countries. President Trump spoke alongside President Xi inside the heavily guarded compound. Bloomberg's Min Min Lowe reports the details on some of those deals have been wanting.

2:36Boeing, a 200 jet deal that was less than expected. Many people were expecting as much as 500 jets. So we saw the stock of Boeing fall on the back of that. But still quite a significant one just given that it puts an end to a near decade long freeze in orders from China. The last time we saw such a big deal was when President Trump last visited back in 2017. Bloomberg's Min Min Lowe reports the U.S. and China are also discussing a mechanism to fast-track some investment deals, as well as reducing tariffs on non-critical goods. Nathan, there is another key pledge coming out of the summit. U.S. Trade Representative Jameson Greer told Bloomberg's Anne-Marie Hordern about a new agricultural pact with China.

3:16We expect to also see an agreement for double-digit billion purchases of ags over the next three years per year coming out of this visit. And that's more general. That's aggregate. That's not just soybeans. That's everything else. U.S. Trade Rep. Jameson Greer told our Anne-Marie Hordern that China has kept up on existing soybean pledges and expects them to fulfill further pledges. Greer mentioned China re-upped U.S. beef plant export registrations as part of that progress. And soybean futures fell, however, and corn futures pared gains, with farmers and traders searching for more concrete details on talks.

3:51Well, Karen, President Trump also says he discussed the war in Iran with President Xi, and he says they both have common goals in trying to end it. We don't want them to have a nuclear weapon. We want the straits open. We're closing it now. They closed it, then we closed it on top of them. Earlier, the president told Fox News that Xi offered to help with negotiations, but China has not confirmed that. But President Trump also said the U.S. doesn't need the Strait of Hormuz opened as much as China and Gulf allies do before saying he wants the Strait reopened. The president also told Fox the goal of recovering Iran's highly enriched uranium is, in his words, more for public relations.

4:26He says the U.S. has round-the-clock surveillance on the material, which is thought to be buried in Iran's bombed nuclear sites. Nathan, as President Trump departs China, another world leader is coming. The South China Morning Post is reporting Russian President Vladimir Putin will visit Beijing next Wednesday. This will be Putin's first trip abroad this year, underscoring the close ties between Beijing and Moscow. Back to the Middle East, Karen. The United Arab Emirates says it's building a new pipeline bypassing the Strait of Hormuz and plans to have it in operation by next year. According to a social media post, Abu Dhabi National Oil Company will double its oil export capacity through the port of Fujairah once it completes the project, helping meet global demand.

5:06Let's head to the UK now, Nathan, where the future of Prime Minister Keir Starmer remains in question. We go to London, get the very latest with Bloomberg's James Wolcock. James, good morning. Good morning, Karen and Nathan. The starting gun on the race to replace Keir Starmer fired three times yesterday. 6 a.m. London time, bang. Former Deputy Prime Minister Angela Rayner says she is open to standing. 1 p.m., bang. Health Secretary West Streeting resigned. And 6 p.m. last night, bang. Greater Manchester Mayor Andy Burnham, the most popular Labour politician in the country, says he wants to take a job in Parliament, the first step to a formal challenge.

5:41All that political volatility has gilts set for their biggest weekly increase since March. In London, James Woolcock, Bloomberg Radio. All right, James, thank you. Back here in the US, workers at the nation's biggest commuter railroad are threatening to walk off the job tomorrow. For the latest, let's bring in Bloomberg's John Tucker in New York. John. And Nathan, the contract talks between New York City's transit system and the Long Island Railroad workers have hit a snag. The union free to strike after today when a cooling off period runs out. Rob Free is president of the Long Island Railroad.

6:15Let's just say first and foremost, we do not want a strike. That is the last thing we want. We're trying to negotiate in good faith. While both sides agree on a retroactive 9.5 % pay increase over three years, the impasse is on the wage hikes for this year. Nearly 300 ,000 weekday riders use the LIRR. A strike would force thousands of commuters onto the island's already congested roadways. By at least one estimate, the economic impact of suspending service would amount to$70 million per day. The agency has a contingency plan for buses. That would just make a dent barely. Commuters are being urged to work from home if there is a walkout.

6:54In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. President Trump's latest financial disclosures show that he made a slew of stock and bond purchases in the first quarter of the year. We want to get the very latest with Bloomberg's Alexis Christophorus. Alexis, good morning. Good morning, Karen. The president bought as much as$5 million each in companies, including NVIDIA, Oracle, Boeing and Costco. Six of the president's trades involved Intel. His administration hammered out an agreement to take a 10 percent stake in the chipmaker in August. Trump made investments related to companies including Netflix, Paramount, Skydance and Warner Brothers and sold holdings in technology firms, Microsoft, Meta Platforms and Amazon.

7:35Unlike his predecessors, President Trump didn't divest or move his assets into a blind trust with an independent overseer. His business empire is managed by two of his sons and operates in several areas that intersect with presidential policy. The White House has said on previous occasions that neither Trump nor his family members are making investment decisions for him. Alexis Christophorus, Bloomberg Radio. Alexis, thank you. Jay Powell's term as Federal Reserve Chairman ends today. He's being replaced by Kevin Warsh. Fed Governor Stephen Myron says he'll resign from the central bank once Warsh is sworn in, and he says Powell could help create a smooth transition.

8:12Look, transitions are important, and I think that, you know, it is maybe helpful to have someone there to give advice. Here's how to be an effective chairman. Here's how to lead the committee. Here's you know, here's how the building works. It may be a little bit different than it was 20 years ago. Right. I think that can be helpful, but I still think it's important that it be a transition because you want to have people's loyalties undivided. You want to have there be very clearly one chairman. You want to have a place where there's no question about no question about who's in charge. Fed Governor Stephen Myron made those comments on Bloomberg surveillance.

8:40Jay Powell says although his term is ending as Fed chair after eight years, he is staying on the Fed's board. Well, we turn to the markets now, Nathan, where futures are lower following another tech-led record close on Wall Street. The Dow closed above 50 ,000, while the S &P 500 closed above the 7 ,500 level. However, Nasdaq futures are leading the losses this morning. They are currently down one and a half percent. The global bond sell-off is intensifying in the rise in oil prices and signs of rising inflation around the world. The yield on two-year treasuries are trading at a 15-month high.

9:13Japan's 30-year yield rose to 4 % for the first time since its debut in 1999. Well, Karen, it was quite the Wall Street debut for Cerebra Systems. The AI chipmaker and data center firm soared 68%, giving it a market value of nearly$67 billion. Bailey Lipschultz covers the company for Bloomberg. A lot of froth in the market, a lot of excitement around anything AI. You throw out NVIDIA competitor and people just get jacked up. It'll be interesting to see where The stock is trading three days, five days after their first earnings, and more importantly, six months from now when insiders are unlocked.

9:47Bloomberg's Bailey Lipschult says this was the year's biggest initial public offering. Following yesterday's gains, Serebra CEO Andrew Feldman's stake is now valued at$3.2 billion. Nathan, Bloomberg News has learned Apple's two-year-old partnership with OpenAI has become strained. Sources say the AI startup is not seeing the expected benefits from the deal and is now preparing possible legal action. and Mark Gurman wrote this story for Bloomberg. The reality is that this has been a dud financially. OpenAI believes that the vast majority of people don't want to use the Siri integration with Apple.

10:21They'd rather use the ChadGPT app. And they believe that the poor integration of ChadGPT into iOS has resulted in OpenAI's brand being damaged. So for that reason, they're looking at a slew of different legal options to go after Apple in the near future. And Bloomer's Mark Ehrman says OpenAI still hopes to resolve its issues with Apple outside of court. Of course, Karen, one case that did go to trial involving OpenAI is nearing a conclusion. Lawyers have made final arguments following about two weeks of testimony in the high-stakes showdown between Elon Musk and Sam Altman. Musk claims Altman and OpenAI president Greg Brockman, quote, stole a charity by exploiting his early support for an altruistic research project to get rich by turning the company into a profit-driven enterprise.

11:08Musk is seeking as much as$134 billion in damages to be awarded to OpenAI's non-profit arm, as well as an order unwinding OpenAI's conversion to a for-profit entity.

11:21It'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, Karen. The Centers for Disease Control and Prevention is monitoring 41 people in the U.S. who were exposed to the Hantavirus either aboard the ship or from contact with one of the passengers after they disembarked. European health officials said the respiratory virus that killed three Hondias passengers is showing no sign of mutating to become more contagious. CDC spokesperson Dr. David Fitter says that there are 12 states with people under monitoring for potential Hantavirus infections, including New Jersey.

12:01We're working very closely with all the state and local health departments to monitor everybody, all the contacts that are coming back. Again, we would defer to the jurisdictions or the states about announcements that they would make about their residents, but we are tracking everything very closely. The CDC's Dr. David Fitter says the outbreak has now been linked to 10 cases. The Supreme Court allows abortion pill mifepristone to continue to be available by mail while the lawsuit unfolds. Drug companies ask the justices for an emergency order to put the lower court's ruling on hold. The abortion pill is the most common method of abortion.

12:40People are hopeful about an experimental drug that has shown promising results to give some pancreatic cancer patients more time. It's not FDA approved, but more doctors around the country can now use the drug to help eligible patients after the FDA granted it expanded access. Dr. Brandon Huffman, a medical oncologist at Dana-Farber Cancer Institute, helped carry out the clinical trial. He told ABC the drug could replace chemotherapy as a pancreatic cancer treatment. It's a targeted therapy, and the early trial data that were just published in the New England Journal of Medicine showed that it's well-tolerated, it's a once-a-day pill, and it really works.

13:25Dr. Huffman says the drug helped shrink the cancer, helping the patients live better and longer. 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, for the first time since 1969. A seven-way time for the lead after the opening round of the PGA Championship in Pennsylvania. The group includes Scotty Scheffler, the world number one and defending champion. The full NFL schedule is out. The first game is Wednesday, September 9th, and it's a rematch of last year's Super Bowl.

14:02It'll be New England at Seattle. Stanley Cup playoffs. Montreal won 6-3 at Buffalo. Goes home with a 3-2 series lead. Vegas won 5-1 at Anaheim, the Golden Knights advance. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Is passive investing costing you more than you think? Active ETFs aim to beat the benchmark, while passive ETFs just settle for them. Embrace an active strategy that helps you build stronger portfolios. Invest with a global leader in active fixed income ETFs with JPMorgan Asset Management. Visit jpmorgan.com slash getactive to learn more.

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16:27Coast to coast on Bloomberg Radio, nationwide on Sirius XM and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. President Donald Trump is on his way back from what China is calling a historic and landmark visit to Beijing. President says he made a lot of trade deals during his two days visiting Chinese leader Xi Jinping. He says he's looking forward to reciprocating when President Xi comes to Washington in September. I'm very impressed with China. And I just want to end by saying thank you very much. It's been really a great couple of days.

17:04And that was the president wrapping up his visit in the rarely visited Jiangnan High headquarters of the Chinese Communist Party. Joining us from Beijing is Bloomberg chief political correspondent Anne-Marie Horton, who's been leading our team coverage of the president's visit to Beijing. Anne-Marie, amid all the pomp and circumstance, what of substance came out of the president's two days from where you stand? Good morning. Good morning. It's a great question because it's been very vague in terms of some of the deliverables that we've received out of this trip between President Trump and Xi Jinping, the bilateral meetings.

17:41Clearly, trade has been one of the biggest wins. I spoke to U.S. Trade Representative Jameson Greer earlier this morning in Beijing. He said they expect double-digit billion purchase of agriculture over the next three years. So that's soybeans plus everything else. The president spoke about Boeings to Fox News. But he said that the deal was going to be for 200 Boeings. Leading up to this trip, everyone thought it was going to be 500. So it does feel like potentially that fell short. On top of all of that, we do not have the confirmation on the Chinese side about exactly what was agreed upon in some of these trade deals.

18:13So it's very vague. There's going to be need for more details. farm volumes, energy deals, expanded market access, what exactly was agreed upon. And finally, something that really caught my eye and attention was in this conversation with Ambassador Greer. There's been all this speculation about semiconductors, whether or not chips would be back on the table because of the fact that Jensen Wang was a last-minute addition as part of the dozens of executives that flanked the president on this trip. And he said that it wasn't a major topic in the bilateral meeting between Xi Jinping and Donald Trump.

18:48And he also said that approval of NVIDIA's H200 chip purchases will be determined by China, even though the United States has given that green light. Yeah, it was interesting to see Jensen Wang added as a last minute addition to this pretty sizable contingent of business leaders that accompanied President Trump on this trip. Given how many American corporate titans came to the Chinese capital, do the deliverables, from what we understand, match the size of the delegation? Can we tell at this point, Anne-Marie? Well, no, we don't know that yet. But again, it's still early days. Potentially, these executives, which did have time, a number of them, with Xi Jinping as well as the Chinese premier, will see the fruit of this trip later in the year.

19:37You know, ones I'm squarely focused on are individuals like Illumina, which is on the entity list. Meta, of course, Dina Powell was here. I think that was fascinating given the fact that at the very end of them having this acquisition, $2 billion of Manus, the AI company in China, the Chinese government ended up blocking it. This came after Manus employees started actually migrating and moving into the Meta building in Singapore. So potentially these executives are here and able to massage some of the issues they are having in terms of access to China. Or individuals like Elon Musk, which later on this year we know he's going to want to seek Chinese regulatory approval to have autonomous driving when it comes to Tesla cars.

20:19So potentially this is an opening for a lot of these executives. But if you're looking for hard and firm deliverables today as we wrap up this summit, they're not here. We also heard the president tell Fox News that President Xi offered to help with Iran negotiations. How much of a shadow did the Iran war cast over this trip? And do we even have confirmation on the Chinese side that there is going to be that kind of help that the president is suggesting? Well, this is something the White House has really focused on, less so on the Chinese side. Trump, you know, suggesting that they really signal their willingness to help diplomatically and said that both sides want the straighter for moves to open.

21:02China urged for the waterway to open. These are familiar lines, though, we've already heard from Beijing. Really, the White House readout focused a lot on Iran, how China wants to see the waterway open, wants it demilitarized and doesn't want to see the regime be willing to charge a toll. But what China's willing to say publicly on Iran has been what they've been willing to say publicly on Iran for the past weeks as the war has continued. So really that's been more of an issue that the United States has been willing to highlight and has wanted to highlight and push out. And not something the Chinese Ministry of Foreign Affairs or Xi Jinping's readout, according to state media, has wanted to push forward.

21:46For China, the real issue that they wanted to make a red line during the summit, even though they try to have stability with the United States in terms of trade, they wanted to make it very clear that their red line is and continues to be Taiwan. Absolutely. With a very early warning from the Chinese leader about the potential for clashes if the U.S. doesn't handle the Taiwan situation the way it would like to see. in our last minute or so, Anne-Marie. How contentious is that issue still now between the U.S. and China, given what we've seen from the Chinese readout is praise for this new bilateral relationship that President Xi is talking about?

22:29Well, it definitely remains the top risk between this relationship. And what was so interesting is that the readouts are always going to be different between Beijing and Washington. But the Chinese readout came while the two leaders were still speaking. What I found interesting was my conversation with Ambassador Jameson Greer. And remember, he was chief of staff to USTR's Robert Lighthizer in 2017. So he was on that trip and he was in these meetings. And he didn't think that this time around the Chinese delegation, Xi Jinping, was sharper in regards to Taiwan. He says that this was expected. This is always expected when dealing with their Chinese counterparts.

23:07And he said that the coverage or the readout of it was sharper than actually what was taken away in the meeting. He said the meeting was very candid. So that's one view of what is going on. But it is telling that the president, who loves to talk to the press, was asked about it and ignored that question. Potentially, you know, on his way back to Washington, he will gaggle with reporters. And I imagine for the press pool, this is going to be the top ask. 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.

23:45Eastern 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.

24:22And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.