Trump's War on Media Expands; Trump, Xi to Hold Call

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1:31Bloomberg 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, the Walt Disney Company's decision to take ABC's Jimmy Kimmel Live off the air continues to make waves. The late night show was suspended indefinitely this week after the comedian joked about Republicans' reaction to conservative activist Charlie Kirk's death. Now, President Trump says the Federal Communications Commission should look into the licenses of broadcast networks he says are too critical of him. When you have a network and you have evening shows and all they do is hit Trump, that's all they do.

2:16If you go back, I guess they haven't had a conservative one in years or something. But when you go back and take a look, all they do is they're licensed. They're not allowed to do that. They're an arm of the Democrat Party. President Trump spoke aboard Air Force One on his way back from the U.K. He suggested that NBC should fire its late night hosts, Jimmy Fallon and Seth Meyers, next. Fallon addressed Jimmy Kimmel's suspension on last night's Tonight Show. This morning I woke up to 100 text messages from my dad saying, I'm sorry they canceled your show. They go, that's not me. That's Jimmy Kimmel.

2:53Jimmy Fallon says Kimmel is a decent, funny and loving guy and he hopes he comes back. Sources tell Bloomberg News Disney executives met with Kimmel last night to discuss the future of his show. They say the soonest it could come back on the air is this Monday. Well, Nathan, let's turn now to the latest on U.S.-China relations. President Trump's call with Chinese President Xi Jinping will be the first direct engagement between the two leaders since June. The future of TikTok is expected to top the agenda, and Bloomberg's Amy Morris has a preview from Washington. Negotiators from both countries reached a framework deal earlier this week to preserve the U.S.

3:28operations of TikTok under a national security law. President Trump says there's value in TikTok, and he doesn't want to give away value. We're speaking to President Scheele to see if we can finalize something on TikTok, because there is tremendous value, and I hate to give away value, but I like TikTok. It helped get me elected. Xi and Trump are also expected to discuss a tariff truce after tit-for-tat tariffs earlier this year spooked the markets. The call is a watershed moment for both sides and will be watched closely for any indication on whether Trump and Xi agree to hold their first in-person meeting since Trump returned to office.

4:04In Washington, Amy Morris, Bloomberg Radio. Amy, thank you. And the call is scheduled to happen at 9 a.m. Wall Street time. And that call, Karen, comes just a day after President Trump's historic second state visit to the UK. The president signed a new tech partnership that includes more than$300 billion in bilateral investments from the likes of Microsoft and OpenAI. And at a joint news conference with UK Prime Minister Keir Starmer, the president expressed disappointment over the war in Ukraine. The one that I thought would be easiest would be because of my relationship with President Putin.

4:36But he's let me down. He's really let me down. President Trump also showed mild disagreement with Prime Minister Starmer over the war in Gaza. The president says he does not support Starmer's decision to recognize a Palestinian state at next week's U.N. General Assembly. Meanwhile, Nathan, U.S. law enforcement is building a profile on suspected Charlie Kirk shooter Tyler Robinson that includes his use of President Trump's name as a pseudonym on Valve's Steam video game platform. Sources say the Secret Service has joined the investigation into the shooting, even though Kirk was not under the agency's protection.

5:11And Turning Point USA, the organization Charlie Kirk founded to mobilize young conservatives, says Kirk's wife Erica will serve as its next CEO. Back in Washington, Karen, the Trump administration is now asking the Supreme Court to allow President Trump to remove Fed Governor Lisa Cook. We get more from Bloomberg Economics correspondent Michael McKee. Basically, they are refiling the same cases they filed in district court and then at the U.S. appeals court arguing that the president has the unreviewable right to fire anybody for cause and cause is whatever he deems it to be, which the district court judge rejected.

5:50But the appeals court didn't address that. At Bloomberg's Mike McKee, President Trump has said his cause to fire Cook is alleged mortgage fraud. Cook denies any wrongdoing and remains at the Fed after lower courts blocked her ouster. Let's turn to the markets now. Nathan, stock-seated records as we close out the trading week. The Dow, S &P 500, NASDAQ and Russell 2000 all begin the session at all-time highs. It's a rare feat that's occurred on just 25 other days this century. Aaron Kennan is CEO of Clear Harbor Asset Management. Certainly valuations are not cheap. We're trading at sort of top quartile levels in most equity indices.

6:30And yet we also know that elevated valuations do not always or never really augur bear markets. Usually there's some economic shock that ensues. Clear Harbor Asset Management's Erin Kennan. It's the first time since November 2021 that all four major benchmarks close together at all-time highs. This morning, Karen, we're watching shares of FedEx. They are up four and three quarters percent in early trading. The parcel company reinstated its profit and sales forecast, says revenue will grow by four to six percent in the current fiscal year. That topped Wall Street estimates. FedEx also says it expects a billion dollar hit from trade volatility this year due to President Trump's tariffs and the loss of a key exemption for low value goods.

7:14Nathan Apple is releasing new iPhone designs including the iPhone 17 Pro, Pro Max and iPhone Air as well as new Apple Watch and AirPods models today. Early sales across Asia showed strong demand for the Pro models. The new iPhone models feature redesigned elements such as an aluminum shell in a thin shape for the iPhone Air and are priced from$999 to$1 ,099. And we have some monetary policy news out of Asia this morning, Karen. The Bank of Japan has kept its interest rates steady. BOJ also took another step toward policy normalization, announcing it will start to offload its massive exchange-traded fund holdings.

7:59Time 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. A protest over conditions at a Manhattan immigration holding facility led dozens of arrests, including at least 11 elected officials. The officials included Comptroller Brad Lander, Public Advocate Jumaane Williams, and State Senator Julia Salazar. The government building is home to several federal offices, including Immigration Court and the FBI's New York Field Office. According to advocates, several officials were arrested inside the building while attempting to inspect holding rooms amid allegations of squalid conditions and overcrowding.

8:41We're learning more about the shooting deaths of three Pennsylvania police officers. A prosecutor says a suspected stalker armed with a rifle hid inside his ex-girlfriend's home and ambushed officers who came to serve him a warrant Wednesday. York County District Attorney Tim Barker said during a news conference yesterday that the officers opened the door and the suspect immediately opened fire on them using an AR-style rifle. Detective Sergeant Cody Becker, Detective Mark Baker, and Detective Isaiah Eamonheiser were all killed following the brutal ambush that was committed upon them by the actor.

9:21DA Tim Barker says two other officers were wounded. The shooter was killed after a gunfight. Barker says that the incident involved a domestic violence call. New York Mayor Eric Adams says his city is prepared for the 80th United Nations General Assembly, which opens next week. Adams says security will be increased amid national and global threats. At this time, there are currently no known specific or credible threats against the United Nations. But our posture is elevated out of an abundance of caution given the global environment. About 200 diplomats from around the world will descend on the city.

10:01Global 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. Thursday night football to start week three. The Bills got three touchdown passes from Josh Allen. Beat the Dolphins 31 to 21. Buffalo is 3-0. Miami is 0-3. Clayton Kershaw at age 37 in his 18th season, all with the Dodgers, announced that he's retiring at season's end. His last home, at least regular season, start will be tonight at Dodger Stadium, where last night Dodgers beat the Giants 2-1.

10:41Giants had only one hit. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from Public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge. On Public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S &P 500. Or, if my cash balance goes above$20 ,000, move the excess into my direct index.

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12:48Coast 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 ramping up his pressure campaign against major media organizations once again. Following ABC's suspension of late night host Jimmy Kimmel, the president says the FCC should consider revoking the licenses of broadcast networks he deems too critical. They're getting a license. I would think maybe their license should be taken away. It would be up to Brendan Carr. That was President Trump speaking aboard Air Force One on his way back from a state visit to the UK.

13:28And this morning we're joined by Bloomberg's Rosalind Matheson. And Roz, of course, we know the president has a long history of putting legal pressure on media organizations. This seems to take things to a whole new level. Good morning. Good morning. And yeah, it does. I mean, there are several layers of this. There's obviously the individual impact on Kimmel in all of this and his show. there's the potential, you know, death, someone would say, of the late night talk show format, because those shows tend to be robust in their commentary around everything, including politics. But then more broadly, there's the question of tying the behaviour of TV networks to politics.

14:10And, you know, the FCC has long had these powers over licences and the ability to make changes to licensing and take licenses away even, but they've really tended not to use it or certainly not in these circumstances. And the very clear endorsement from Donald Trump of the FCC criticism that came of Kimmel and his commentary, and we saw the swift repercussions from that with his show being taken off the air. There's a direct line now between what Trump wants to see TV networks producing and what they may feel that they can produce with the thing that's hanging over their heads and all of that is the question of their license.

14:50So do we see big changes in behavior as a result? And what does that mean in the end for the concepts of networks being able to air footage or commentary that is critical of a government and certainly of a sitting president? And so some very big precedents potentially being up for grabs in all of this. And there's still the question, isn't there, Roz, about whether the decision by the Disney-owned network to suspend Kimball was a business decision or whether it was directly related to the pressure that we saw this week from FCC Chairman Brendan Carr. Well, that's right. It's interesting to see this example and obviously the previous example involving Stephen Colbert and whether these came at a time that these companies were also having big deals or needing endorsement of certain changes in their company's behaviour.

15:43And for certainly the biggest producer, the biggest owner rather, of local TV stations in the US, you know, they have a deal before the FCC that they want done in acquisition and they need FCC clearance for that. And so, you know, was there an impact in their thinking in the minute because they know that they need the FCC on their side to say that they were going to pull his show from their networks at least. And we can see that previously. And so if you do need the government or regulators to support you, are you going to start making these decisions regardless of the ratings of the show involved or the money involved?

16:25Because you do need that broader relationship to stay intact. Of course, later this morning, the coverage of President Trump is going to continue with the phone call later this morning with Chinese President Xi Jinping. So many layers there as well, including one involving new media. What's going to happen to TikTok? Well, that is the big question. It does seem as though they've got to a bit of a framework on TikTok going into this conversation. Some of the details are still very unclear, but basically you will end up in a situation where ByteDance's stake drops to 20 % or less and a group of American companies, three of them come in and take majority control.

17:02That includes, of course, Oracle. The question is, what happens to all the proprietary technology involved in that for ByteDance, their algorithm? Do they basically set up a new platform for TikTok users in the US and port everybody over, but you still need ByteDance and their technology to do so to help building it at least. So how do you ring fence then US users of TikTok? And that's been a key concern, obviously, in the US politically is to do that. But ByteDance obviously wants to still preserve its technology. So there are some slightly murky areas still in this deal to be understood, but we'll hopefully hear more today after seeing Trump talk and then presumably we'll come out and announce more details of the deal.

17:48This 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. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less.

18:28Search 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.

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