Trump's Historic UK Visit; Highly Anticipated Fed Decision

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1:27And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin overseas and President Donald Trump's state visit to the UK. King Charles is preparing to host the president at Windsor Castle. Let's go to London and get the very latest with Bloomberg Daybreak Europe anchor Caroline Hepker. Good morning, Caroline. Good morning, Nathan. They say Windsor Castle's the ultimate right, says President Trump. Well, the British government is certainly hoping so. The president and first lady have had a night at the 11th century castle. They'll be greeted this morning by the Prince and Princess of Wales, then the King and Queen, with a carriage ride, a guard of honour, glittering white tie banquet, all private away from any protests.

2:09Photos of Trump and Jeffrey Epstein beamed onto Windsor Castle, having been swiftly removed with four arrests made. Now, the UK has already seen some significant pledges, more than$42 billion for tech and AI investments into Britain for Microsoft, OpenAI and others who are also on this state visit. But hopes of lowering steel tariffs have been put on the back burner. And yet, Nathan, quiet optimism, given that President Trump is the most Anglophile US leader in decades, Britain has a golden opportunity to make its case to the most powerful political and tech leaders in the world. So while we wait for more on that potential opportunity, Caroline, what are some potential pitfalls, though, for Prime Minister Keir Starmer?

2:56Well, President Trump goes to the Prime Minister's country estate checkers on Thursday. There'll be bagpipes there, a bilateral meeting, and the Chancellor, Rachel Reeves, is hosting a business reception too. So the real peril is actually at a joint press conference that will be held. Will difficult questions emerge about the UK's former ambassador to the US, Peter Mandelson, being fired over his relationship with Jeffrey Epstein? The UK is poised to maybe recognise a Palestinian state. Will there be repeated criticism about the state of free speech here in the UK? And Keir Starmer also wants stronger measures from the US side against Russia over Ukraine.

3:38does a big win on capex for uk data centers really deliver growth and jobs there could be many many questions that come up in that press conference all right bloomberg daybreak europe anchor caroline hepker thank you for this we'll be checking back with caroline throughout the morning and nathan a spirit airlines passenger jet got a little too close for comfort with air force one carrying president trump to london it happened over long island when an air traffic controller noticed their altitudes were similar and flight paths converging. The controller tried to alert the spirit pilots to change their course, and after they did not respond, he repeated the message, raising his voice and commanding them to turn 20 degrees right immediately.

4:22Well, later this month, Karen, President Trump is going to be meeting with another world leader. Israeli Prime Minister Benjamin Netanyahu plans to visit the White House September 29th. Netanyahu says he's had a number of conversations with the president after Israel's strike on Hamas leaders in Doha, Qatar. He says the conversations were, quote, very good. Well, Nathan, we turn now to one of the most highly anticipated and controversial Fed decisions in years. The new Fed board now includes White House economic advisor Stephen Myron, and it still has Fed Governor Lisa Cook, who President Trump is trying to fire.

4:56We get more on the decision from Bloomberg's Michael McKee. Well, there's no question this is going to be a different kind of Fed meeting. There's a lot of storylines here. Of course, the biggest is Stephen Myron joining and the governor, Lisa Cook, being able to continue with her role at the Fed. Now, the question is who sits next to whom in that meeting and what will it be like in terms of the discussions, which is actually a real question because Myron has not participated in the run up to this, hasn't had the briefings, doesn't know what other Fed officials are going to be saying. And they go around the table and they all give a presentation about the economy.

5:33So it isn't clear exactly how much he's going to contribute other than one expects he will vote for the rate cut. And Bloomberg's Michael McKee will be part of our Bloomberg surveillance. The Fed Decides special this afternoon at 1.30 p.m. Wall Street time. You can watch and listen on Bloomberg Radio, Bloomberg Television and the Bloomberg Podcast channel on YouTube. Karen, let's get to the latest now in the Charlie Kirk murder case. The suspect in the conservative activist shooting death has made his first court appearance. 22-year-old Tyler Robinson is facing a first-degree aggravated murder charge, and Utah County Attorney Jeff Gray says he will seek the death penalty.

6:09As county attorney, I am charged with bringing justice to those who offend our laws. I am charged with bringing justice for those who harm, for those who are harmed. I am charged with bringing justice for Charlie Kirk. Utah County Attorney Jeff Gray says DNA matching Robinson was found on the rifle that investigators think was used in the shooting. He also says Robinson confessed in text messages with his roommate whom he was dating. The judge set the next hearing for the end of this month when Robinson could be asked to enter a plea. Let's turn to the nation's capital now, Nathan, and FBI Director Cash Patel clashed with Democratic senators during the first of two oversight hearings this week.

6:54And Bloomberg's Amy Morris has more from Washington. Patel faced criticism from Senate Democrats over his handling of the investigation into the death of conservative activist Charlie Kirk and Patel's leadership. Three former senior FBI officials are suing over their firing, which they called retribution. Patel responded when Democratic Senator Cory Booker said he didn't think he'd be in that job much longer. That rant does not bring this country together. My God, my God. If you want to talk about fighting this country, I follow you on your social media posts that tear this country apart. You're making a mockery of this committee.

7:32Sir, you don't tell me my time is over. The people of New Jersey tell me what my time is. Next, Patel will testify before the House Judiciary Committee. In Washington, Amy Morris, Bloomberg Radio. Amy, thanks. The White House says TikTok can continue operating in the U.S. until December 16th. The latest extension comes as Bloomberg News has learned TikTok's U.S. operations will be bought by a consortium of U.S. companies under a deal to be discussed between President Trump and China's Xi Jinping. The framework agreement involves a U.S.-based version of the app backed by firms including Oracle, private equity firm Silverlake, and venture capital company Andreessen.

8:08U.S. Trade Representative Jameson Greer says the deal represents a step forward in the ongoing saga. The TikTok saga has gone on for a long time. Toward the end of his first term, President Trump set about to solve it. Over the course of the Biden administration, they grappled with this issue but could not solve it. But as of yesterday, we believe that President Trump has, in fact, resolved this issue. U.S. Trade Rep Jameson Greer spoke on Fox Business. Under an initial agreement, a Chinese-owned ByteDance's stake in TikTok would fall below 20 percent to satisfy a U.S. law that requires the Beijing-based company to divest.

8:42President Trump is set to speak with President Xi on the deal this Friday. Well, Nathan, shares of NVIDIA down seven-tenths of a percent this morning. The Financial Times is reporting China's internet regulator has told the country's tech companies to stop buying all of NVIDIA's AI chips and terminate their existing orders. The move comes as Beijing steps up efforts to boost its homegrown semiconductor industry and compete with the U.S. And another tech giant seeing a slowdown in China, Karen. and Apple's smartphone sales fell 6 % there in the weeks leading up to the iPhone 17 launch. That's a deeper slump than usual before a major product release, but Apple wasn't the only one.

9:20China's overall smartphone market shrank 2 % in July and August. Companies with bigger market share like Xiaomi, Vivo, and Honor device also saw declines. And Nathan, ticket platform StubHub goes public today. It priced its initial public offering at the midpoint of a marketed range to raise$800 million. The company's shares will trade under the symbol STUB or stub. The U.S. IPO market is on a hot streak with about$4.7 billion raised since the Labor Day holiday.

9:54Time 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. Terrorism and first-degree murder charges were dropped against Luigi Mangione after a judge decided the charges lacked sufficient evidence. Prosecutors accused Mangione of fatally shooting UnitedHealthcare CEO Brian Thompson last December in Manhattan as an act of terror. The 27-year-old still faces second-degree murder charges and has pleaded not guilty. Former CDC Director Dr. Susan Menares will appear before the Senate Health Committee today.

10:30Menares is expected to testify about her firing and her month working for Health and Human Services Secretary Robert F. Kennedy Jr. One of its members, Senator Susan Collins, spoke about Dr. Menardus when she appeared before the World Medical Innovation Forum in Boston. Susan put it best to me. She said that she was asked to fire all these people and refused to do it. Senator Collins, a Maine Republican, lauded Menardus' work and says she looks forward to going into further detail on her firing. In New York City, we'll find out later this morning about the future of a casino in Times Square. A final vote is expected on whether the casino proposal moves forward.

11:15There have been demonstrations on both sides for and against the Caesars Palace Casino that is currently the home of the Minskoff Theater. The Food and Drug Administration says it is conducting an independent physician investigation into the 25 reports of child deaths after receiving COVID vaccines. FDA Commissioner Dr. Martin McCary says self-reported unverified cases are part of a database that are available to the public but need to be investigated. Some people say you shouldn't be looking at this. You should not be sharing data like this with the public because it may lead some to question the vaccine.

11:53We believe in full transparency. People can make their own decision. FDA Commissioner Dr. Martin McCary. 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. The Seattle Mariners made it 10 wins in a row. It was 12-5 at Kansas City as Dominic Canzone hit three home runs and Cal Raleigh hit two. He has 56 home runs on the season. It's the most ever for a switch hitter passing Mickey Mantle. The NFL says it's okay with Tom Brady, who is a partial owner of the Las Vegas Raiders, being in the coaching box during a game, and he pointed to a conflict of interest, since Brady is also an announcer for Fox.

12:39That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Ask yourself, what are your best people spending their time on right now? Expense reports? Receipt chasing? Month-end close that takes weeks? You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts. AI agents that handle the manual stuff automatically, so your team can spend their time on what actually compounds. It's time to get Brex AF. Learn more at brex.com slash AF. Discover a spectacular island destination with crystal blue seas, endless sunshine, and the cool Bahamian breeze.

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14:21Coast 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, and they're pulling out all the stops in Windsor Castle for President Donald Trump's second state visit to the UK, getting a royal welcome from King Charles III, looking to talk trade, as he told reporters before he left the White House. They want to see if they can refine the trade deal a little bit. We made a deal and it's a great deal. And I'm into helping them. Our country is doing very well. That was President Trump ahead of his arrival in the UK.

14:56And joining us this morning from Windsor Castle is Bloomberg's Lizzie Burden. Lizzie, thanks for being with us. Set the scene for us because no one really sets a scene quite like the royals. Good morning. Hey, Nathan. You're absolutely right. Pump and pageantry is what we do best here in the UK. And of course, this is the second, unprecedented second state visit for Donald Trump. You might remember his first one at Buckingham Palace. They were all sat around for a state banquet and everyone's in their finery, but only as they sat down, did a tabloid newspaper break that he was critical of then Prime Minister Theresa May, a deeply embarrassing interview, indigestion for all.

15:33So there are lots of potential pitfalls again this time, maybe on Palestine, maybe on Jeffrey Epstein. We've just lost our UK ambassador to Washington over his links to Jeffrey Epstein. But on the agenda today, we see the President and the First Lady welcomed to Windsor by the King and Queen. They'll have a carriage procession through the grounds of the estate with the Prince and Princess of Wales. Apparently, the President's taken a shine to Prince William. He said he was very handsome when he met him in Paris last year. And so the palace is keen to deploy him once again. Then they're going to have a private lunch.

16:09They're going to lay a wreath at the tomb of the late Queen Elizabeth II. And then we're going to have a fly pass of UK and US F-35 jets along with the Red Arrows. So pulling out all the stops. The hope, of course, is that all of this soft power translates into hard cash for the UK. Yeah, in terms of potentially softening the president to maybe make some concessions when it comes to trade, you've got to think that for Prime Minister Keir Starmer, this trip is going to be crucial. It absolutely is. And it couldn't come at a worse time for the British Prime Minister. It has to be said. His party is floundering in the polls behind, notably, Donald Trump's friend, Nigel Farage, the leader of Reform UK.

16:51He has his colleagues talking about replacing him, but they just don't know who to replace him with. Just this morning, we had the UK inflation numbers, the highest again in a year and a half on a week of a Bank of England decision. And really, it's all coming to a head for Keir Starmer because just this past two weeks, he's lost three from his government, including, as I say, Peter Mandelson, the UK ambassador to Washington, but also the deputy prime minister, also his chief of strategy. And so it's going to give Donald Trump leverage over Starmer. He will be very aware of the weakness of the UK prime minister right now.

17:28Just 30 seconds left, Lizzie, but we've heard about all the tech deals that have been made in the UK leading up to this. what more is the UK hoping to get? Yes,$10 billion of economic agreements expected. In addition to that US-UK trade deal already, perhaps we could get more on AI. We've already had the likes of Google pledging money there, billions of pounds. But look, when it comes to steel tariffs, it doesn't look like Starmer is going to get any better than the 25 % already agreed. And it doesn't look like there's much more to come on Scotch whiskey tariffs either. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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18:49I'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.

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