US-China Tariff Deal; Iran Won't Soften Demands

SPEAKER_1 (0:02)

Bloomberg Audio Studios, Podcasts, Radio, News.

Karen Moskow (0:10)

Good morning, I'm Karen Moskow.

Alexis Christoforos (0:12)

And I'm Alexis Christoforos. Here are the stories we're following today.

Karen Moskow (0:16)

All right, Alexis, we begin with the latest on US-China relations following the summit between Donald Trump and Xi Jinping. The two countries detailed a plan to cut tariffs on about $30 billion of imports from each nation. The list for goods entering the US contains 77 entries, including fireworks and toys, while more than 1600 goods are set to potentially enter China, such as meat and medical equipment. We get more from Bloomberg Chief Asia Correspondent Stephen Engel.

Stephen Engel (0:45)

It's putting some details to what they agreed on, on maybe the lower-hanging fruit of trade disputes. There's still a lot more contentious issues, no doubt, including chips and other national security items.

Karen Moskow (1:00)

Bloomberg Stephen Engel says the expected tariff relief of $60 billion in bilateral trade is a fraction of the $415 billion in total goods exchanged between the world's largest economies last year.

Alexis Christoforos (1:12)

And Karen, now the latest on the war in the Middle East. Iran is sticking to its seven-day proposal for reopening the crucial Strait of Hormuz, saying it won't soften its conditions, while President Trump sent mixed signals about his willingness to reach a deal. We get more from Bloomberg Middle East correspondent Abira Bouammar.

Abira Bouammar (1:29)

President Trump had rejected this plan that Iran had laid out about a seven-day ceasefire to reopen the Strait of Hormuz. He did say that he might have agreed to the conditions that Iran had laid out a year ago, but Iran had overplayed its hand. Now, from the Iranian side, we also have heard from the Foreign Minister Abbas Harakshi, who said that diplomacy is always on the table. Iran prefers diplomacy, prefers to go back to the negotiating table, but that he doesn't see a way for it.

Alexis Christoforos (1:58)

Middle East correspondent Abir Abu Omar. Oil rising on those latest developments. Right now, we've got Brent Crude nearing up 4% at 108.21 a barrel, and WTI Crude rallying 3.5% at 95.57 a barrel.

Karen Moskow (2:13)

Alexis, UK police are investigating a potential terrorism incident after five men were arrested near an air base used in US strikes on Iran. We go to London and get the very latest from Bloomberg's Nathan Hager. Nathan, good morning.

Nathan Hager (2:27)

Good morning, Karen and Alexis. So this was near RAF Fairford in the area of Gloucestershire in Western England. The US has been using it as a forward staging base for bombers in defensive strikes against Iran. Local police say they got a call around a quarter to one in the morning yesterday, local time of three suspicious vans appearing to be headed toward the base. Armed police arrested five men while dozens of residents were evacuated from a nearby village and a bomb disposal unit came in to examine the vehicles. President Trump says the suspects were looking to do big damage. In his words, he suggested some of them may have been under surveillance, but he didn't give more details. UK Defense Minister Wes Streating told Bloomberg this morning, it's too soon to link the Fairford incident with the Iran conflict. But a source tells Bloomberg police think they disrupted a serious attempted attack at a late stage. In London, Nathan Hager, Bloomberg Radio.

Alexis Christoforos (3:15)

Thanks Nathan. The arrests come as UK Prime Minister Andy Burnham goes into his first Labour Party conference as Britain's Prime Minister. Bloomberg's James Wilcock is covering the four-day event and joins us from Liverpool.

James Wilcock (3:27)

Good morning. It's clear skies here in Northwest England and the UK Prime Minister wants to envision a brighter future. Bring back hope is the pitch here. But with bond yields at multi-decade highs, there are concerns there may be clouds gathering. Wes Streating also told us, the Defense Secretary there, that we know perfectly well if we're out there making unfunded commitments, the market's priced in risk, and we face higher borrowing costs. The UK Chancellor makes his speech in just two hours, and we'll be here covering it.

In Liverpool, James Wilcock, Bloomberg Radio.

Karen Moskow (3:58)

All right, James, thank you. Back here in the US, the Northeast is still feeling the remnants of the nor'easter over the weekend, and the New York area coastal flood advisory is in effect until this afternoon. We get more with Bloomberg meteorologist Craig Allen.

Craig Allen (4:12)

The weather is still pretty nasty along 95, especially from northern New Jersey, New York City and Long Island on up to Boston and suburbs. But the forecast is improving, and after more than 48 hours of wind driven rain and coastal flooding, the nor'easter is weakening. It is moving very slowly though, just meandering, so it will take a while for drier air to arrive. Expect some gusts over 20 miles per hour today, additional showers around. For our listeners in Washington, improvement will get underway today.