Bloomberg Daybreak: US Edition

Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) US and Chinese officials offered upbeat assessments of their talks on artificial intelligence, trade and investment, signaling a mutual desire to steady ties ahead of this week’s summit between leaders Donald Trump and Xi Jinping.China’s top trade negotiator, Li Chenggang, said the talks were held in a “good atmosphere” as he left JPMorgan Chase & Co.’s headquarters in New York on Sunday, while US Treasury Secretary Scott Bessent lauded “very successful” discussions. The Chinese official Xinhua News Agency called the exchange “candid, in-depth and constructive.”
2) Oil dropped for a fourth day, with Brent set for the longest run of declines since June, as traders tracked diplomatic efforts to end the US-Iran war and signs cargoes are still getting through the Strait of Hormuz.
3) The settlement talks between Paramount Skydance Corp. and California officials over the planned acquisition of Warner Bros. Discovery Inc. are said to include a financial penalty if the company fails to make good on a promise to distribute 30 films per year in theaters.Paramount would have to pay $30 million for each film that falls short of that goal, according to two people familiar with the discussions who asked to not be identified because the negotiations are private. It could also be forced to sell its stake in Miramax, the studio behind movies such as Pulp Fiction, if it fails to meet the target, one of the people said.
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Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.
In the US – we look at upcoming home building data
In the UK – we preview elections in Germany
In Asia – we discuss President Xi's visit to the US this week

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) The US is expected to hold off announcing new tariffs on China and other trading partners until after next week’s summit between Presidents Xi Jinping and Donald Trump, according to people familiar with the matter, a delay that could preserve such a threat as leverage in the negotiations.
2) The current round of panic over artificial intelligence is based on the conviction that the technology has slipped out of human control to do its own bidding in several recent incidents. To some disillusioned AI researchers — and some senior employees at leading AI companies — this is an early sign of a true threat to human civilization. But other experts in the field are pushing back, claiming that such talk allows companies to sidestep accountability for real-world impacts of their technology. Critics see AI’s environmental impacts, the threat of job displacement, or the potential for mass surveillance as more urgent targets for policymakers.
3) At least two liquefied natural gas shipments transited the Strait of Hormuz this week as producers look for ways to increase flows to a market struggling with a lack of supply and surging prices.A tanker that loaded at Qatar’s Ras Laffan export plant in late August appeared in the Gulf of Oman earlier this week, according to ship-tracking data compiled by Bloomberg, indicating it had passed through the contested waterway. The vessel wasn’t sending a signal when it traversed Hormuz, but jamming and interference is common in the area, complicating efforts to ascertain the exact location of ships.
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) The Federal Reserve raised interest rates by a quarter percentage point and plans an additional hike later this year to contain inflation. Chairman Kevin Warsh said the action shows the Fed is serious about delivering on the price stability objective and removing a dose of accommodation. The rate increase defied President Trump, who said on social media that US interest rates should be at 1% or lower and called for lower interest rates.
2) President Trump said he will put very serious tariffs or stop trading with Europe if he thinks the European Union's push to make Canada a potential associate is harmful to the US. European Commission President Ursula von der Leyen proposed Canada becoming the first associate member of the European Union, saying she would like to work with Canadian Prime Minister Mark Carney on the idea. Trump's comments risk further inflaming a simmering trade war between the US and Canada, with Trump having already imposed tariffs on Canadian goods and restricted Canadian goods from federal government purchases.
3) OpenAI shared several undisclosed incidents of its AI models misbehaving and unveiled a new framework for tracking and disclosing such occurrences going forward. The company detailed various instances of its artificial intelligence models misbehaving, including fabricating missing data and attempting to bypass network restrictions. OpenAI said it does not believe that the AI industry has solved alignment and monitoring to a sufficient degree to continue responsibly scaling at maximum speed for much longer.
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Bloomberg's Tom Keene, Jon Ferro and Lisa Abramowicz discuss remarks from Fed Chair Kevin Warsh following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.
The Federal Reserve raised interest rates by a quarter percentage point and penciled in an additional hike later this year, steps aimed at containing inflation that will test Chairman Kevin Warsh’s relationship with President Donald Trump.
Wall Street traders drove stocks to the lowest since July on bets the Federal Reserve will keep raising rates to combat inflation after delivering its first hike in three years.
In his remarks to reporters, Fed Chair Kevin Warsh restated his concerns over inflation, saying too many categories of products and services were showing annualized price gains above 3% on a 6- and 12-month basis.
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