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

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 with this week's high-stakes summit between President Trump and his Chinese counterpart Xi Jinping. Before the Chinese president arrives in Washington on Wednesday, the US 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.

Scott Bessent (0:38)

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 are very important.

Nathan Hager (0:53)

That was Treasury Secretary Scott Bessent and China's Xinhua News Agency described the talks as quote candid, in-depth and constructive. The 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 US.

Karen Moskow (1:11)

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.

Nathan Hager (1:31)

And Karen, President Trump also says he is open to meeting with Iran's president as the UN General Assembly gets underway this week in New York. The president told Fox News he's in quote, the siding mode on Iran and some big things may happen in the not so distant future.

Meantime, Qatar's energy chief says Treasury Secretary Bessent 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 Qaabi spoke at the Qatar Economic Forum in New York powered by Bloomberg.

Saad Al Qaabi (2:02)

I mean we have a few countries that have waterways outside the Gulf but the rest of the countries are all inside the Gulf so you have a lot of trade other than oil and gas that is needed. So to call it obsolete I think is wrong.

Nathan Hager (2:15)

Saad Al Qaabi 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 US Central Command says crude and liquefied natural gas flows through Hormuz are running at a six month high.

Karen Moskow (2:29)

Still Nathan, US 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.

Nathan Hager (2:51)

And Karen, of course, diplomatic efforts continue to try to end the conflict. Iran has been sending the US conditions to resume negotiations through mediators from Qatar. Majid Al Ansari is an advisor to Qatar's Prime Minister.

Majid Al Ansari (3:03)

For the past couple of weeks now, we've been going back and forth over different ideas for these talks since the return of the possibilities to the region. We've been looking together at our mediator team in both Tehran and the US to see if we can get started again.

Nathan Hager (3:21)

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. Wall Street time on Bloomberg Radio and Television and the Bloomberg Business App.

Karen Moskow (3:34)

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 UN. General Assembly. He said the meeting could change a lot and 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 will be their third in-person meeting since Mamdani was elected mayor.

Nathan Hager (3:57)

Elsewhere in geopolitics, Karen, the US., Denmark and Greenland have signed a security pact that boosts Washington's presence on the Arctic Island without giving up any land. Former US diplomat Louis Lukens told Bloomberg Greenland is open for business but still faces massive hurdles.

Louis Lukens (4:14)

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.