Trump-Xi High-Stakes Summit; Possible Deal to Open Hormuz

SPEAKER_1 (0:02)

Bloomberg Audio Studios, podcasts, radio, news.

Nathan Hager (0:09)

Good morning, I'm Nathan Hager.

Karen Moskow (0:11)

And I'm Karen Moskow. Here are the stories we're following today.

Nathan Hager (0:15)

Karen, we begin in Washington, where Chinese President Xi Jinping is receiving a lavish state visit that's heavy on pageantry, but light on major announcements. President Trump hosted the Chinese leader at a White House state dinner last night with a who's who in tech and finance leaders in attendance.

Donald Trump (0:31)

Americans and Chinese have always exchanged goods, knowledge, customs and ideas. This has been the foundation of commerce and mutual respect between our countries, and together we can continue to build a relationship that promotes prosperity and security for future generations.

Nathan Hager (0:50)

President Trump gave President Xi a statue of a bald eagle and said their two countries have never gotten along better. Executives from NVIDIA, Apple, Meta, Amazon and OpenAI were on the guest list. Along with major Wall Street banks, President Xi did not bring a business delegation.

Karen Moskow (1:05)

Well, before the dinner, Nathan, the two leaders did discuss some contentious issues. Bloomberg Chief Asia correspondent Stephen Engel is covering the Trump-Xi summit in Washington.

Stephen Engel (1:15)

AI was in focus. As Xi said, China and the US have both the capability and the responsibility to develop and manage AI for good and also ensure it stays under human control. But few details have emerged on the specifics on how they're going to do that under their newly created US-China AI dialogue.

Karen Moskow (1:39)

Bloomberg's Stephen Engel reports, President Trump posted on social media ahead of the meeting that he wants to keep AI exactly where it is. The president does call for unrestrained development to keep the US ahead of China.

Nathan Hager (1:50)

During the summit, Karen, China's president also urged President Trump to oppose independence for Taiwan. It was his most explicit call yet for the US to change its policy on the self-ruled island. We get more from Bloomberg's Balazs Pens.

Balazs Pens (2:03)

The US has had a decades-long policy, and the language they have used is the US does not support the independence movement for Taiwan, which might seem like a subtle change, but it is actually a very significant one because saying that the US opposes Taiwan independence, that it supposes an active role by the US in this.

Nathan Hager (2:24)

Bloomberg's Balazs Pens says President Xi's comments were reported by China's Xinhua news agency. The White House has not released a readout from the meeting.

Karen Moskow (2:32)

Well, Nathan, we're learning more about this week's negotiations between the US and Iran on the sidelines of the UN General Assembly. A source tells Bloomberg News the two sides are discussing a phase deal for Iran to reopen the Strait of Hormuz and the US to lift its naval blockade.

Financial Times reports Iran's Foreign Minister offered a seven-day proposal to reopen the Strait if certain conditions are met. Bloomberg Energy reporter Stephen Stepchinski says this would be similar to the memorandum of understanding that both sides reached three months ago.

Stephen Stepchinski (3:03)

This has been often speculated, talked about. Officials from both sides have gone back and forth on the possibility of there being potentially a deal in an opening and you've seen headlines really pushing oil higher and lower in that $100 range over the last week or two.

Karen Moskow (3:19)

And that's Bloomberg's Stephen Stepchinski. This morning's headlines have a brint down 1.8% at $104.81 a barrel and NYMEX crude oil also lowered down more than 2% at $92.41.

Nathan Hager (3:32)

Meanwhile, Karen, delegates at the United Nations General Assembly walked out as Israel's Prime Minister Benjamin Netanyahu addressed the global body. He defended his decision to attack Iran as an easy one, saying Israel's security is at stake.

Benjamin Netanyahu (3:48)

The eternity of Israel will not falter.

Benjamin Netanyahu (3:52)

And the reason is simple. We have no other choice.

Nathan Hager (3:59)

Israeli Prime Minister Benjamin Netanyahu also called accusations of genocide in Gaza, quote, the biggest lie of the century.

Karen Moskow (4:06)

Nathan, the Republican-controlled Senate defeated a Democratic resolution to end the war in Iran at a very close 49 to 50 vote, and Bloomberg's Amy Morris reports from Washington.

Amy Morris (4:16)

The vote was largely symbolic, but it was also seen as a chance for vulnerable Republicans to distance themselves from the war ahead of the midterms. Several Republicans said they would like to see the war end quickly, but they're not yet willing to rein in Trump's power to wage it. Most Republican senators facing voters in the fall opposed the resolution. Voters are anxious about the war driving up prices, and endangered GOP lawmakers increasingly fear a voter backlash in the election. In Washington, Amy Morris, Bloomberg Radio.