Trump's China Tariff Decision, Fed Rates, and Global Market Updates | Bloomberg Daybreak

US-China Trade Relations

• 🇨🇳 The US and China have concluded two days of trade talks in Stockholm, with Chinese officials indicating an agreement to extend the 90-day tariff truce.
• 🇺🇸 However, the US side suggests China may have acted prematurely, stating that no agreement is final until President Trump makes the decision.
• 📈 Treasury Secretary Scott Bessent indicated that extending the pause could be an option, potentially paving the way for President Trump to visit China.

US-India Trade Negotiations

• 🇮🇳 The US and India are in a race to negotiate a trade deal before a Friday deadline.
• 💰 President Trump has suggested potential tariffs of 20% to 25% on India, citing India's historically high tariffs.
• 🤝 Despite potential tariff increases, India plans to continue negotiating a bilateral trade deal through the fall.

Global Economic and Market News

• 📉 Stocks showed weakness ahead of the Federal Reserve's interest-rate decision and a significant number of major company earnings reports.
• 🏦 Federal Reserve policymakers are not expected to change the benchmark interest rate today, awaiting more clarity on the economic impact of tariffs.
• 📈 Microsoft is expected to report a 14% rise in sales, largely driven by its Azure cloud computing unit and its partnership with OpenAI.
• 🇪🇺 European banks like HSBC and UBS are releasing earnings, with HSBC flagging rising expenses and UBS CEO stating the bank will not shrink to meet capital requirements.
• 🚗 European carmakers Mercedes-Benz and Porsche have reduced profit expectations due to US tariffs and competition in China.
• 💳 Visa shares are down, while Starbucks shares are up following its first sales gain in China since late 2023.

Natural Disasters and Public Safety

• 🌊 A powerful earthquake off Russia's far east has triggered tsunami warnings across the Pacific, with Hawaii recording 4-foot waves.
• ⚠️ Officials are urging residents in affected areas, including parts of California and Washington State, to stay alert, stay off beaches, and head for higher ground.
• 🏙️ In New York City, tighter security and grief persist following a deadly shooting at 345 Park Avenue, described as the worst mass shooting in the city in 25 years.
• 🌡️ Extreme heat is impacting the US, with 170 million Americans under heat alerts, straining power grids and leading to increased calls for heat-related illnesses.

Sports and Other News

• ⚾ The New York Yankees won their game, while the Toronto Blue Jays are on a losing streak.
• ⚾ The Boston Red Sox and Philadelphia Phillies also secured wins.
• 🏈 NFL player Trey Hendrickson has reported to Bengals training camp after ending his holdout.
• 🚆 New York City's public transportation agency will delay a planned fare and toll increase until January.