US, Europe Work on Ukraine Security; US Weighs 10% Stake in Intel | Bloomberg Brief 8/19/2025

0:13 ♪ DANI: IT’S 5:00 A.M. IN NEW YORK CITY. GOOD MORNING, I’M DANI BURGER WITH YOUR "BLOOMBERG BRIEF." MORE TALKS. PRESIDENT TRUMP CALLS FOR A MEETING BETWEEN PRESIDENT PUTIN AND ZELENSKIY AND A TRILATERAL WITH HIMSELF. THE BIG INTEL BET. THE TRUMP ADMINISTRATION WEIGHS A 10% STAKE. SOFTBANK BUYS A SURPRISE $2 BILLION WORTH OF SHARES. PLAYING FOR TIME, STOCKS GO NOWHERE FAST AHEAD OF ALL TIME HIGHS AND RETAIL EARNINGS AND JACKSON HOLE. WE’RE STILL GOING NOWHERE THIS MORNING. THE S&P ENTERED DOWN 0.01%. WE’RE SO CLOSE TO ALL TIME HIGHS BUT MAYBE WHY WOULD YOU TAKE ON RISKS?

1:05 JACKSON HOLES, DO WE GET THE FED DOING SOMETHING? YESTERDAY WE HAD THE ENTIRETY OF THE CURVE HIGHER. LITTLE CHANGED THIS MORNING. YOUR TWO-YEAR YIELD IS SLIGHTLY LOWER BUT THE 10-YEAR YIELD AT 4.33 AND 30-YEAR YIELD AT 4.933 AND WE HAD A POOR AUCTION IN GERMANY. YOU’RE STARTING TO FEEL TENSION ON THE LONG END OF THE CURVE. LET’S LOOK ANOTHER THE STOCKS MOVING IN THE PREMARKET AND WITH THAT IS VALERIE. VALERIE: LET’S START WITH INTEL, SURPRISE MOVE BY SOFTBANK TO INVEST $2 BILLION IN EQUITY STAKE AND SEEING INTEL SHARES RISE 6.5% IN PREMARKET TRADE THE DAY AFTER THE U.S. ANNOUNCED THEY WANTED TO CONVERT THE CHIP ACT FUNDING INTO A 10% EQUITY STAKE AND INTEL NOW HAS RISEN OVER 25% SINCE THE C.E.O.

1:53 MET WITH DONALD TRUMP LAST MONDAY. MOVING ON TO EARNINGS, PALO ALTO, THE CYBERSECURITY SOFTWARE FIRM, BULLISH FORECAST WHEN IT COMES TO REVENUE, SEEING THE SHARES JUMP 5.5% IN PREMARKET TRADE AND SAY DEMAND FOR THEIR A.I. ENABLED SOFTWARE SECURITY SYSTEMS IS LOOKING STRONG P. LET’S END ON DRONES. THE F.T. REPORTING THE UKRAINE AND U.S. MIGHT ENTER INTO A $50 BILLION DEAL TO PRODUCE UKRAINE DRONES. WE’RE SEEING THE LIKES OF A-EAGLE ARROW SYSTEMS UP AND MANY DRONE STOCKS TRADED POSITIVE IN THE CLOSE OF THIS REPORT. DANI: IN SOME OF THE MOVEMENTS IN UKRAINE AND RUSSIA, OIL IS DOWN

2:39 1%. CONVERSATIONS YOU DON’T WANT TO MISS. WELL DISCUSS THE STEEPENING YIELD CURVE AND CATCH UP WITH KEITH MILLER WITH AN EQUITIES MARKET AT ALL TIME HIGHS. BONDS SOLD OFF ACROSS THE CURVE YESTERDAY AND WITH THAT THE GAP BETWEEN SHORTER AND LONGER DATED U.S. BORROWING COSTS HAS BEEN WIDENING. THE 530 YIELD CURVE HAS REACHED ITS STAPLE AHEAD OF 2021. JOINING US IS SAM FROM PARAPHERNALIA -- FROM B.N.P. PARIBAS. WHEN YOU LOOK AT IT, IS IT

3:25 CHANGES TO DUTCH PENSION SCHEMES PRESSURING THE LONG END? SAM: ALL OF THE ABOVE. IN THE U.S. IT’S PREDOMINANTLY A FISCAL AND INFLATION STORY. WHILE IN EUROPE IT’S A FISCAL STORY AND TO A LESSER EXTENT A INFLATION STORY AND THE REFORM YOU MENTIONED I’D LIKE TO TALK ABOUT IN THE NETHERLANDS IS A KEY DRIVER. PERHAPS IF WE FIRST ADDRESS THE U.S. FOR THE U.S., ON THE FISCAL SIDE, AN INTERESTING POINT I THINK TO FLAG IS THE MONTHLY BUDGET NUMBERS COMING OUT ACTUALLY LOOK A LITTLE BIT BETTER THAN THE MARKET WAS EXPECTING SO WE HAD DATA, FOR EXAMPLE, THE END OF JULY AND SHOWS THE U.S. DEFICIT IS RUNNING AT A LOWER RUN RATE THAN LAST YEAR, 4% LOWER. IF WE THINK WHAT THAT MEANS AS WELL FROM AN ISSUANCE PERSPECTIVE, WE HEARD FROM THE

4:11 TREASURY, FROM THE TREASURY SECRETARY SCOTT BESSENT, THEY’RE PLANNING TO FUND ANY INCREMENTAL FINANCING THEY HAVE THROUGH BILLS, NOT THROUGH BONDS. SO OUR VIEW IS CONTRARY TO CENSUS AND IF THE LONG END BONDS COULD OUTPERFORM. DANI: SO MANY PEOPLE HAVE BEEN TERRIFIED TOUCHING THE LONG END OF THIS CURVE. WHAT’S YOUR TIME LINE FOR THAT ESPECIALLY IF THERE ARE CONCERNS WE GET A SHIFT TO A MORE DOVEISH FED THAT PRESSURES FURTHER THE LONG END IF THERE ARE INFLATIONARY CONCERNS ALONGSIDE THAT? SAM: IT’S A CRUCIAL RISK IF THE

4:57 MARKET PRICES IN LESS INFLATION CREDIBILITY FROM THE FED, THAT WE’LL SEE PERMANENT GREAT ACROSS THE CURVE AND TO SOME EXTENT HAS BEEN PLAYING OUT BUT WE LOOK AT INFLATION BREAKERS IN THE U.S., WHILE THE FRONT END IS PRICED HIGHER IT’S REFLECTIVELY OF THE MARKET EXPECTATIONS IT DRIVES PRICES UP. BUT THEN YOU LOOK AT THE FED HITTING THE INFLATION STARTING ON AVERAGE THE NEXT 30 YEARS. SO IT IS A KEY RISK AND I THINK IT’S AN IMPORTANT RISK IF THE MARKET GETS MORE CONCERNED ON THE FED IF THERE IS PERCEPTIONS AROUND POLITICAL INTERFERENCE, GETTING EMBEDDED IN INFLATION EXPECTATION MARKETS THE U.S. COULD BE UNDER PRESSURE. DANI: LET’S SIT ON THE DUTCH PENSION REFORM BECAUSE I KNOW YOU’VE

5:44 BEEN DOING A LOT OF WORK ON THAT, INSOFAR AS NO THAT IT’S EXPECTING THE MARKET BUT WE’VE SEEN TAILS WAG THE DOG AND TELL US WHAT’S HAPPENING IN EUROPE AND THE NETHERLANDS, OUCH OF THAT IS FILTERING IN TO AMERICAN BONDS, TOO? SAM: I DON’T THINK IT’S HAVING A BIG IMPACT. THE U.S. IS THE STORY PREDOMINANTLY DRIVING THE REST OF THE WORLD AND TO A LESSER EXTENT, JAPAN IS A IMPORTANT MARKET AND WE HAD WEAKNESS ON THE LONG END OF THE CURVE FOLLOWING A WEAK 20-YEAR WAND AUCTION AND THAT’S CONTRIBUTING. FOR EUROPE, THE STORY HERE IS THE CURVE IS QUITE FLAT COMPARED TO OTHER MARKETS. AT THE START OF THIS YEAR, THE LONG END OF THE EURO SWAPS CURVE, FOR EXAMPLE, 30-YEAR COMPARED TO 10-YEAR WAS CONVERTED AND VERY DIFFERENT TO

6:32 THE JAPAN OR U.K. OR EVEN TO THE U.S. THAT INVERSION HAS NOW SORT OF ABATED THE MARKET TRADES BETWEEN 20 AND 25 BITS POSITIVE IN 10 STUDIES BUT THE KEY POINT FROM HERE IS WE’LL SEE A SIGNIFICANT FURTHER STEEPENING IN THE EURO SWAPS CURVE. DANI: WE ARE AT THE WEEK OF JACKSON HOLE AND IN THE PAST IT’S BEEN ANNOUNCEMENTS, 2022, THE SPEECH, THE TIME HAS COME TO ADJUST. FOR POWELL THIS TIME AROUND, DO YOU SEE A REASON TO ENDORSE OR PUSH BACK AGAINST CURRENT MARKET PRICING OF CUTS? SAM: IT’S VERY TRICKY FOR THE FED AT THE MOMENT AND IN PARTICULAR FOR POWELL. THE WAY I’D FRAME IT IS THE FED

7:22 AT THE MOMENT, WE’RE EITHER IN A SCENARIO, THE EMPLOYMENT DATA REBOUNDS HIRING IS SOLID AND THE UNEMPLOYMENT RATE DOESN’T RISE AND IF WE’RE IN THAT STATE OF THE WORLD ESPECIALLY GIVEN THE P.P.I. DATA, WE THINK IT’S A FED THAT WILL BE CAUTIOUS TO CUT RATES AND THE CASE WE HAVE HERE AND BEEN OUR VIEW SINCE SEPTEMBER OF 2014, NO RATE CUTS IN 2025 AND ANOTHER SCENARIO WHERE WE’RE ATTUNE TO THE RISKS AND ACKNOWLEDGE IT’S PLAUSIBLE IS THE EMPLOYMENT DATA IS WEAK, THE LABOR MARKET IS DETERIORATING FASTER THAN ANTICIPATED BUT IF THAT’S THE CASE THE FED WILL CUT QUICKLY AND BY A LOT AND COULD CUT 150 BASIS POINTS, THREE CONSECUTIVE

8:12 50-BIT CUTS. BECAUSE THE LABOR MARKET IS WEAKENING, THE FED IS LESS CONCERNED OF THE PRICES FROM TARIFFS BECAUSE THAT TARIFFS WILL BE ONE AND NOT SUSTAINED AND THE LABOR MARKET IS WEAK THEY’LL CUDDLE UP BUT IF THE FED HOLDS UP THEY MIGHT NOT BE CUTTING. DANI: WE WON’T KNOW THE ANSWER THIS WEEK AT JACKSON HOLE BUT IF YOU LOOK AT THE F-1-C, BOWMAN AND WALLER LEANING DOVEISH BUT COOK AND DAILY HAVE SHIFTED THEIR SPEECH TO SKEW MORE DOVEISH, TOO. IF WE HAVE A POWELL WHO IS A CONSENSUS BUILDING FED CHAIR WHICH WE KNOW HE HAS BEEN, DOES HE HAVE ANY CHOICE TO LEAN MORE DOVEISH IN WHAT HE TALKS ABOUT

9:02 THIS WEEK? SAM: IT’S CERTAINLY POSSIBLE. ON THE BASIS OF THE REACTION FUNCTION POWELL LAID OUT AT THE LAST MEETING, FROM WHAT THEY’VE SEEN SO FAR HE SHOULDN’T BE CUTTING RATES. HE PREMISED IT ON UNEMPLOYMENT AND INFLATION. AND IT’S GONE UP BUT THE FED SEES IT AS THE NONACCELERATING RATE FOR WAGES FOR UNEMPLOYMENT, SORT OF THE NEUTRAL LEVEL AND WELL BELOW WHERE THE FED PROJECTED IT TO BE THE END OF THIS YEAR WHICH IS 4.5%. ON THE BASIS OF THE FED’S REACTION FUNCTION THEY SHOULD NOT CUT RATES EVEN THE DATA WE’VE BEEN GIVEN THE PAST THREE WEEKS. AND THE RIGHT QUESTION IS IT YOU HAVE A LACK OF CONSENSUS ON THE FED GIVEN ALL THE PRESSURE IS THE EASIEST MOVE AT THIS

9:52 JUNCTURE TO TO DO SOMEWHAT RISK MITIGATING DELIVERS ON THAT CONSENSUS AND DELIVER AS 25-BIT CUT IN SEPTEMBER. I THINK IF POWELL IS TO DO THAT, WE PROBABLY SHOULD SEE SOME TYPE OF REMESSAGING OF THE FED’S REACTION FUNCTION WHEN HE SPEAKS AT 3:00 P.M. LONDON TIME THIS FRIDAY. DANI: WE’LL GET FED MINUTES FRIDAY AND MIGHT BE INSTRUCTIVE FOR THE SPLIT HAPPENING. SO WONDERFUL TO START OUR MONDAY WITH YOU, SAM LYNTON-BROWN. WE’LL HEAR FROM FED PRESIDENT-ELECT MICHELLE BOWMAN. NOW OTHER TOP STORIES TRENDING, SOURCES SAY THE TRUMP ADMINISTRATION IS IN DISCUSSIONS TO TAKE A STAKE OF ABOUT 10% IN INTEL. THE GOVERNMENT IS CONSIDERING A

10:41 POTENTIAL INVESTMENT THAT WOULD INVOLVE CONVERTING SOME OR ALL OF THE COMPANY’S CHIPS FROM THE U.S. CHIPS ACT INTO EQUITY. GRANTS INTO THE CHIP ACT AND A SPOKESMAN DECLINED TO COMMENT. MORE ON INTEL. SOFTBANK AGREED TO BUY $2 BILLION WORTH OF ITS STOCK. THE JAPANESE COMPANY HAS BEEN TRYING TO BECOME A CENTRAL PLAYER IN A.I. BUT LARGELY BEEN A BYSTANDER. SOFTBANK’S MOVE DELIVERS A STRONG VOTE OF CONFIDENCE IN INTEL AS IT STRUGGLES TO REMAIN RELEVANT IN THE A.I. SPACE. ELSEWHERE IN TECH, APPLE IS EXPANDING IPHONES IN INDIA IN FIVE FACTORIES TRYING TO LESSEN THE INDEPENDENCE FROM CHINA. THE COMPANY IS PRODUCING ALL FOUR IPHONE MODELS IN INDIA AHEAD OF THE DEBUT NEXT MONTH.

11:32 A SIGN ALL NEW VARIANTS WILL BE SHIFTED TO THE COUNTRY. AND A PUSH ON A SUMMIT. WE’LL HAVE GUARANTEES FOR UKRAINE NEXT ON YOUR "BRIEF." >> WE NEED TO STOP THIS WAR TO STOP RUSSIA AND WE NEED SUPPORT FROM THE EUROPEANS. PRES. TRUMP: IF EVERYTHING WORKS WELL WE’LL HAVE A TRILAT AND THERE WILL BE A CHANCE TO STOP THE WAR IF WE DO THAT. >> 30 COUNTRIES ARE WORKING TOGETHER ON SECURITY GUARANTEES AND WILL NOW WORK WITH THE U.S. ON THOSE GUARANTEES. >> MY HOPE IS THE UNITED STATES DO THE MOST POSSIBLE BECAUSE

12:20 THAT’S WHAT WILL ALLOW US TO ALLEVIATE THE BURDEN ON EUROPE AND THAT THE UNITED STATES CONFIRM ITS COMMITMENTS BECAUSE THAT WAS A BIG QUESTION MARK. DANI: PRESIDENTS TRUMP, ZELENSKYY, STARMER AND MACRON CITYING. AND NOW THEY’RE WORKING TO FIGURE OUT HOW TO PROVIDE SECURITY FOR UKRAINE. NOW WE BRING IN OLIVER CROOK. WHAT APPEARS TO BE THE OUTCOME OF YESTERDAY’S MEETING? >> WE SEE WHAT THE EUROPEANS CAN LEAVE WITH LOOKING AT THE DISCUSSION AT THE WHITE HOUSE THEY CAN SAY THEY HAD A REASONABLY GOOD MEETING WITH DONALD TRUMP AND WENT FAIRLY WELL COMPARED TO THE LAST TIME ZELENSKYY WAS IN THE OVAL

13:10 OFFICE WHICH WAS A CATASTROPHE BY ANY MEASURE AND THEY WANTED PROGRESS ON THE QUESTION OF CEASE-FIRE WHICH WAS PROBABLY THE WEAKEST AND TRUMP DISTANCED HIMSELF FROM THE IDEA OF A CEASE-FIRE, SOMETHING TRUMP WAS PUSHING VERY HARD AND THAT’S AN IDEA HE BASICALLY SINCE HAS ABANDONED WITH HIS MEETING OF PUTIN. WITH THE QUESTION OF ARTICLE 5 AND SECURITY GUARANTEES TO ME THIS IS THE MOST SIGNIFICANT OUTCOME THE PAST COUPLE DAYS AND SOMETHING TOUTED BY MANY OF THE TRUMP ADVISERS INCLUDING AMBASSADOR WITKOFF AND SOMETHING TRUMP CONFIRMED YESTERDAY. STILL, AGAIN, IT’S VERY UNCLEAR WHAT IT MEANS. DOES THIS MEAN THE UNITED STATES WOULD EFFECTIVELY COME TO THE AID OF UKRAINE MILITARILY IF ITS SOVEREIGNTY WERE IMPOSED ON AGAIN WITH A PEACE AGREEMENT WITH RUSSIA AND

13:56 THAT’S A DE FACTO NATO MEMBERSHIP AND HARD FOR RUSSIA TO SIGN ON TO THAT. FOR THE EUROPEANS THEY LEAVE THIS CAPITAL OF WASHINGTON, D.C., WITH THIS KIND OF VICTORY AND PRESENTED AN EXTREMELY UNIFIED FRONT TO DONALD TRUMP AND WHAT THAT PAPERS OVER ARE SOME VERY DIFFICULT DISCUSSIONS THAT NEED TO HAPPEN BACK HOME NOW FOR THESE EUROPEAN LEADERS. THEY NEED TO A, FIGURE OUT HOW TO PAY FOR ALL THIS ARCHITECTURE BECAUSE WE KNOW DONALD TRUMP AND THE UNITED STATES HAS NO INTEREST IN FINANCING IT AND THE SECOND QUESTION, ARE THEY WILLING AS SOVEREIGN NATIONS TO PUT THEIR OWN MILITARY PERSONNEL IN UKRAINE THEORETICALLY WITH PEACEKEEPING OPERATIONS THAT COULD AT SOME POINT HAVE TO RETURN FIRE ON RUSSIAN TROOPS? THESE ARE THE VERY DIFFICULT DISCUSSIONS THEY NEED TO HAVE. THEY PUT THAT UNIFIED FRONT TO DONALD TRUMP BECAUSE HE DOESN’T WANT TO COMPLICATE MATTERS WITH

14:43 THE EUROPEANS BUT NEED TO SELL IT TO THEIR DOMESTIC AUDIENCE WHICH IS WHAT THEY’RE GOING TO DO NOW AND SEE WHAT THE ARCHITECTURE LOOKS LIKE. DANI: YOU HAVE EUROPE PRESENTING A UNITED FRONT BUT YOU MENTIONED SOME SECURITY GUARANTEES BUT BETWEEN UKRAINE AND RUSSIA, IF WE GET SOMETHING LIKE A BILATERAL OR TRILATERAL HOW MUCH CLOSER DOES IT SEEM WE MIGHT BE NEARING SOMETHING THAT LOOKS LIKE PEACE OR AN AGREEMENT? OLIVER: IT’S HARD TO TELL, DANI. ONE OF THE TAKE AWAYS FROM THE MEETING YESTERDAY WHICH I THINK THE EUROPEANS AND UKRAINIANS CAN BE PLEASED ABOUT IS THERE DID NOT SEEM TO BE A LOT OF PRESSURE FROM DONALD TRUMP AT LEAST PUBLICLY ON THE SUBJECT OF GIVING UP TERRITORY. HE KEPT REPEATING AND SAID SEVERAL TIMES THAT’S A UKRAINIAN DECISION THE END OF THE DAY AND WILL COME AS A

15:30 RELIEF TO MANY OF THE WATCHERS INCLUDING THE UKRAINIANS. THERE’S QUESTION ABOUT IF ANY PROGRESS CAN BE MADE WITH A CEASE-FIRE. WE HAD EMANUEL MACRON PUSHING YOU CAN’T HAVE NEGOTIATIONS AND MAKE PROGRESS WITHOUT A CEASE-FIRE TAKING PLACE AND THAT FOR THE MOMENT IS REALLY OFF THE TABLE. IN TERMS OF WHAT WE’RE LOOKING AHEAD TO, THIS IS WHAT WE GOT FROM DONALD TRUMP ON TRUTH SOCIAL AFTER THE CONCLUSION OF THE MEETING, AFTER THE MEETING I CALLED PRESIDENT PUTIN AND BEGAN NEGOTIATIONS OF A MEETING AT A PLACE TO BE DETERMINED AND WE’LL HAVE A TRILAT, THE TWO PRESIDENTS AND MYSELF. THE DETAILS ARE SKETCHY AND THE HOPE FROM THE WHITE HOUSE IS TO GET THE BILOT MEETING THE NEXT TWO WEEKS AND A TRILOT THE TWO WEEKS AFTER THAT. BUT THAT’S STILL UP IN THE AIR

16:18 AS THEY HONE IN WHAT THE POTENTIAL DATES COULD BE FOR THIS. DANI: THIS CONVERSATION ISN’T ENDING ANY TIME SOON. THANKS, BLOOMBERG’S OLIVER CROOK. AS WE HAD THOSE DISCUSSIONS AND PUSH FOR PEACE, WE ARE LOOKING AT WEAKER OIL PRICES TODAY, BRENT AND W.G.I. DOWN ABOUT 1%. NOW, OVER IN INDIA, PRIME MINISTER MODEY HAS MOVED TO INGRATIATE HIMSELF WITH PRESIDENT PUTIN, MY FRIEND, AFTER THE U.S. PUT PRESSURE ON INDIA TO STOP BUYING RUSSIAN OIL. WE’RE JOINED BY THE REPORTER IN NEW DELHI. GREAT TO SEE YOU THIS MORNING. NOT ONLY IS THIS POST FROM MODEY, WE HAVE CHINA’S FOREIGN

17:05 MINISTER GOING TO INDIA. HOW SIGNIFICANT MIGHT THAT MEETING BE BETWEEN THE TWO? >> A VERY, VERY SIGNIFICANT MEETING AND THERE HAS BEEN A COUPLE MEETINGS IN THE LAST COUPLE HOURS STARTING YESTERDAY WHEN THE MEETING TOOK PLACE AND A SHORT WHILE AGO MET INDIA’S SECURITY ADVISER AND THE LAST MEETING WITH THE PRIME MINISTER IS TO HAPPEN A COUPLE HOURS FROM NOW. VERY SIGNIFICANT MEETINGS FROM AT LEAST TO WHAT THEY’RE GETTING TO HEAR FROM BOTH SIDES KIND OF SAYING THEY WANT TO GET THE RELATIONSHIP AT A LEVEL BOTH COUNTRIES CAN WORK TOGETHER. BOTH EXPRESSING A DEEP INTEREST IN A BETTER RELATIONSHIP. THAT IS A BIG MOVEMENT.

17:55 INDIA AND CHINA FOR A BRIEF BACKGROUNDS, INDIA AND CHINA HAD A VERY TENSE RELATIONSHIP THE PAST FIVE YEARS WITH A STANDOFF THAT LEFT SHOULDERS DEAD AND NOW THINGS SEEM TO BE TURNING THE OTHER WAY AROUND AND HAPPENS AT A TIME WHEN THE INDIA AND U.S. RELATIONSHIP IS TENSE AND INDIA HAS BEEN CRITICIZED BY THE UNITED STATES FOR BUYING RUSSIAN OIL IT. IT IS VERY IMPORTANT AND GOING FORWARD, PRIME MINISTER MODI WILL BE IN CHINA, HIS FIRST VISIT IN SEVEN YEARS AND WILL BE MEETING HIS CHINESE COUNTERPART, PRESIDENT XI JINPING THERE P. DANI: TO WHAT DEGREE IS THIS AN OUTRIGHT REJECTION AND MODI SAYING AMERICA, WE DON’T NEED YOU AND WE’RE LOOKING ELSEWHERE?

18:42 SUDHI: I WOULDN’T PUT IT AT THAT BECAUSE THERE ARE TOO MANY THINGS AT STAKE WITH THE UNITED STATES AND INDIA AND THE RELATIONSHIP HAS SOURED AND IS DIFFICULT NOW BUT FROM THE REPORTING WE’VE DONE AND THE BRIEFINGS WE’VE GOT IN NEW DELHI AND MY COLLEAGUES BACK IN WASHINGTON. DOESN’T SEEM BOTH SIDES ARE WILLING TO WRITE OFF THE RELATIONSHIP AND BOTH SIDES ARE LOOKING AT A DIFFICULT PATCH AND HOW TO GET OVER IT. HAVING SAID THAT, INDIA IS LOOKING AT HOW TO BOOST ITS ECONOMY AND THAT IS WHERE CHINA AND RUSSIA COME IN. DANI: THANK YOU VERY MUCH FOR JOINING US THIS MORNING ON THAT. THAT’S SUDHI WITH THE LATEST ON INDIA AND CHINA. SPEAKING OF CHINA, NVIDIA PREPARES A NEW CHIP SPECIFICALLY FOR THE COUNTRY

19:29 AND WE’LL HAVE MORE ON THE FRONT PAGE NEWS COMING UP NEXT. STAY WITH US. DANI: WELCOME BACK TO YOUR "BRIEF." I’M DANI BURGER. LET’S LOOK AT THE FRONT PAGES OF HEADLINES. "THE WALL STREET JOURNAL" AND MOST NEWSPAPERS LEADING WITH THE MEETING BETWEEN PRESIDENT ZELENSKYY. NVIDIA REPORTS IT IS PRODUCING A CHIP FOR INDIA AND BE MORE

20:16 POWERFUL THAN THE LAST MODEL AND THEY WILL TEST EARLY NEXT MONTH. HAMAS ACCEPTED A CEASE-FIRE PROPOSAL BY GAZA PUT FORWARD BY QATAR AND EGYPT AND WOULD SEE THE RELEASE OF PRISONERS AND UNCLEAR WHETHER NETANYAHU WOULD ACCEPT THE PROPOSAL. AIR CANADA FLIGHT ATTENDANTS HAD BEEN ON A STRIKE AND AIR CANADA FLIGHT ATTENDANTS SAID IT HAS ENDED AND WERE SEEKING HIGHER PAY AND COMPENSATION FOR PERIODS WHEN THE PLANE ISN’T IN MOTION. BUT THE FLIGHT ATTENDANTS SAYING THE STRIKE HAS ENDED. IF WE HAVE MORE DETAILS WE’LL BRING THAT TO YOU. YOU’RE WATCHING "BLOOMBERG BRIEF." ♪

21:06 DANI: IT’S 5:30 A.M. IN NEW YORK CITY. GOOD MORNING, I’M DANI BURGER WITH YOUR "BLOOMBERG BRIEF." HERE’S WHAT YOU NEED TO KNOW THIS TUESDAY. MORE TALKS. PRESIDENT TRUMP CALLS FOR MEETINGS BETWEEN PRESIDENTS PUTIN AND ZELENSKYY AND A EVENTUAL TRILATERAL TO INCLUDE HIMSELF. THE BIG INTEL BET. THE TRUMP ADMINISTRATION WEIGHS A 10% STAKE. SOFTBANK BUYS A SURPRISE $2 BILLION WORTH OF SHARES. AND PLAYING FOR TIME, STOCKS GO NOWHERE FAST AROUND ALL TIME HIGHS AND RETAIL EARNINGS AND JACKSON HOLE. YESTERDAY WAS A SECOND CONSECUTIVE DAY WHERE THE S&P NARROWLY LOSES GROUND AND EMPHASIS ON NARROWLY BECAUSE WHAT WE HAD YESTERDAY WAS LITTLE CHANGE. THE RUSSELL 2000 UNDERPERFORMS

21:55 AFTER OUTPERFORMANCE FOR SMALL CAPS YESTERDAY. THE BOND MARKET, YIELDS HIGHER ACROSS THE CURVE YESTERDAY. TAKING A BREAK FROM THAT THIS MORNING BUT AGAIN LITTLE CHANGE MAYBE LINGERING CONCERNS OF INFLATION BUT BETWEEN JACKSON HOLE, THE AUCTION IN JAPAN THIS MORNING, WHY WOULD YOU TAKE ANY RISKS AT THIS MOMENT. SHOULD FLAG OIL IS DOWN BY 1% ON TALKS BETWEEN UKRAINE, THE U.S. AND REST OF EUROPE OVER RUSSIA. LET’S GET STOCKS MOVING IN THE PREMARKET. WITH THAT IS VALERIE. VALERIE: INTEL, THE STOCK UP 6% AND COMES AFTER A SURPRISE ANNOUNCEMENT BY SOFTBANK THEY’LL BE INVESTING $2 BILLION ON INTEL’S REVIVAL AND A DAY AFTER WE HEARD NEWS THE U.S. GOVERNMENT WANTS TO CONVERT

22:48 THAT CHIP ACT FUNDING IN A 10% EQUITY TAKE THE STOCK HAS RISEN 25% SINCE SITTING DOWN WITH TRUMP AT THE WHITE HOUSE. THE SECURITY SOFTWARE FIRM ALTO IS UP 3% AND RAISED THEIR REVENUE GUIDANCE AT THE BACK OF STRONG DEMAND FOR THE A.I. ENABLED SECURITY PRODUCTS. AND ENDING ON GEOPOLITICS, IT’S REPORTED THE UKRAINE AND U.S. ARE LOOKING AT ADDS 50 BILLION DEAL TO INVEST IN DRONE TECHNOLOGY. UKRAINE PRODUCES DRONES BUT BOOSTING THE LIKES OF DRONE STOCKS IN THE U.S., A-EAGLE DRONE AND OTHER STOCKS ARE IN

23:34 THE GREEN THIS MORNING. DANI: THANK YOU FOR THE ROUNDUP. STOCKS ARE HOVERING JUST BELOW RECORD HIGHS. KEITH LERNER OF TRUIST WRITES THE BOLD MARKET UPTREND CONTINUES TO DESERVE THE BENEFIT OF THE DOUBT EVEN WHILE WE STILL EXPECT A CHOPPIER NEAR TERM ENVIRONMENT AND DIGESTION PERIOD. I’M PLEASED TO SAY CITE JOINS US, THE KEY MARKET STRATEGIST AT TRUIST. STOCKS NEAR ALL TIME HIGHS AND CREDIT SPREADS ARE THE TIGHTEST SINCE 1998 AND WHAT GIVES YOU THE CONFIDENCE WE CAN CONTINUE TO PUSH HIGHER. KEITH: YOU TALKED ABOUT MARKET AROUND ALL TIME HIGHS AND TELLS YOU EXPECTATIONS ARE HIGHER AND MAY BE THE RISK BUT OUR ULTIMATE THEME WE SPEAK OF LONGER TERM

24:20 OTHER THAN THE NEXT WEEK AND SEVERAL MONTHS, THE KEY DRIVER OF THIS BULL MARKET HAS BEEN EARNINGS AND EARNINGS FOR THE S&P ARE AT ALL TIME HIGHS AND THAT IS DRIVEN BY TECH, THE BIG T, TECHNOLOGY OVER TARIFFS, TECHNOLOGY COMMUNICATION SERVICES BUT I’VE SEEN RECENTLY IS THAT BORNE OUT TO SMALL CAPS AND THE KEY, ESPECIALLY WHERE VALUATIONS ARE TODAY WILL REMAIN EARNINGS. DANI: YOU SAY BROADENS OUT TO THE SMALL CAPS, IS THAT WHAT THE ECONOMIC ENVIRONMENT CUTS OR ARE YOU TALKING ABOUT A.I. IMPROVEMENTS AND PRODUCTIVITY MOVING OUT TO OTHER COMPANIES

25:06 BEYOND THE BIG T TECH? KEITH: MORE DIRECTLY WE’RE SEEING THE EARNINGS ESTIMATES FOR SMALL CAPS TO MOVE HIGHER AND LOOKING UNDER THE HOOD WHAT DRIVING THAT IS SMALL CAP TECH AND LEVELS WITH FINANCIALS AND INDUSTRIALS AND GETTING THROUGH THIS ONE BIG BEAUTIFUL BILL THERE ARE OFFSETS THAT HELP THE SMALL CAP COMPANIES AS FAR AS CLOSER TAX CRATES CAPITAL SPENDING AS WELL AND THE OTHER TREND IS LARGE CAP WHERE WE’RE OVERWEIGHT BUT NOTICEABLE THE FIRST TIME IN A YEAR WE’RE SEEING BETTER TRENDS BEYOND THE GROWTH SECTORS. DANI: A LOT OF PEOPLE, KEITH, HAS BEEN TALKED ABOUT TO DEATH BUT FORGIVE ME FOR DOING THIS BUT IT’S IMPORTANT TO COME BACK TO THE CONCENTRATION OF THIS

25:52 MARKET, THE TOP 10 CONTRIBUTING TO 60% OF THE GAINS SINCE THE MARKET LOW, HOW TECH HEAVY THIS INDEX HAS BECOME AND OVER AND OVER AGAIN, EXAMPLES ARE BROUGHT BACK TO THE DOT-COM BUBBLE P. WHY IS THIS TIME DIFFERENT? KEITH: I DON’T KNOW THAT IT’S DIFFERENT, PER SE BUT HERE’S A STAT THAT’S IMPORTANT I THINK WOULD BE HELPFUL. YOU LOOK AT THE TECHNOLOGY SECTOR IN A YEAR OVER YEAR BASIS, IT’S UP 27%, 28% AND WHEN WE LOOK BACK OVER THE PAST TWO DECADES OR COMING OUT OF THE TECHNOLOGY BUBBLE, THE REAL ISSUE OR RED ALERT IS WHEN IT’S UP 100% YEAR OVER YEAR AND WE’RE NOT THERE AND THE TECH SIDE HAS THE STRONGEST EARNINGS TRENDS OF ANY SECTOR AND EVEN LOOKING AT THE LAST EARNING

26:39 SEASON WE SAW 80% ARE BEATING EARNINGS FOR THE S&P, OVER 90% OF TECHNOLOGY COMPANIES ARE BEATING NOW. THERE’S A LOT OF DISCUSSION HOW THESE COMPANIES ARE MOVING FROM CAP LIGHT TO CAP HEAVY WITH ALL THE CAPITAL SPENDINGS AND RIGHT NOW THE EARNINGS TRENDS ARE MOVING AT A FASTER PACE THAN THE OVERALL MARKET AND AS LONG AS THAT CONTINUES WE’LL STICK WITH THAT SECTOR OVERWEIGHT AND IF THAT CHANGES WE’LL CHANGE OUR TUNE AND THE VALUATIONS THOUGH HIGH ARE A LOT DIFFERENT THAN WHEN IT WAS BACK IN THE TECHNOLOGY BUBBLE PERIOD. DANI: WHEN YOU SEE THINGS LIKE BITCOIN AND OTHER CRYPTOS AT ALL TIME HIGHS AND WE LEARNED YESTERDAY THAT POPITEA IS COMING BACK WITH ANOTHER SPACK IN THIS MARKET, IS THERE FROTH IN SOME CORNERS OF THIS MARKET? KEITH: CERTAINLY.

27:26 THERE ARE CERTAINLY POCKETS. LISTEN, I DON’T KNOW SENTIMENTS ARE EXTREME BUT THERE ARE POCKETS YOU SEE SPECULATION AND ARE SEEING CRYPTO COMING OFF A LITTLE ON THE MARGINS. IF YOU SAID WHAT’S THE BIGGEST RISK ON THE SHORT TERM, AFTER WE MOVED UP, PEOPLE ARE FEELING PRETTY GOOD AND THAT BAR FOR POSITIVE SURPRISES IS PRETTY HIGH GOING INTO THIS JACKSON HOLE MEETING BUT STEP BACK AND THINK OF THE NEXT 6-12 MONTHS, WHAT IS THE KEY TACTOR? DOES THE ECONOMY MOVE FASTER AND DO THEY CONTINUE TO MAKE NEW HIGHS? BUT NOT NEARLY THE EXTREME WE SAW IN THE TECHNOLOGY BUBBLE OR EVEN IN 2021. DANI: IN TERMS OF DRIVERS YOU MENTIONED THE BIG BEAUTIFUL BILL AND TECH AND EARNINGS AND

28:11 NOWHERE IN THERE HAD BEEN TARIFFS. IF WE HAD THE CONVERSATION IN EARLY APRIL WE WOULD HAVE SAID THAT WOULD BE THE MAIN FACTOR DRIVING ALL MARKETS. DOES IT COME BACK AT ANY POINT AS A DRIVER OR DO WE HAVE THE CERTAINTY, CORPORATES ARE ABLE TO MOVE THROUGH IT AND ADAPT AND WE CAN FORGET ABOUT TARIFFS? KEITH: I DON’T THINK IT MOVED COMPLETELY THROUGH BUT THE MARKET IS MYOPIC OTHER TIMES AND WE WERE THINKING TARIFFS IS THE ONLY THING THAT MATTERS. IT STILL MATTERS BUT NOT THE ONLY THING THAT MATTERS. COMPANIES HAVE ADOPTED AND WE’RE SEEING RELATIVE TO THOSE RATES, THE ACTUAL AMOUNT COMING THROUGH IS RELATIVE LESS THAN THE EXTREME RATES AND WEAVER HAD CORPORATIONS INJUST DURING

29:01 AN INFLATION SHOCK AND THE FASTEST INTEREST RATE HIKES SINCE THE 198 0’S AND EACH TIME OUR COMPANIES HAVE BEEN ABLE TO ADAPT AND THEY DESERVE THE BENEFIT OF THE DOUBT. WILL WE GET BROKEN GLASS IN THE CHINA SHOP? PROBABLY. BUT AT THIS POINT THE MARKET STILL AT LEAST DESERVES THAT BENEFIT OF A DOUBT. DANI: HOW ARE YOU THINKING ABOUT AMERICAN INVOLVEMENT IN CORPORATE AMERICA? WE HAD OVERNIGHT BLOOMBERG REPORTING THE TRUMP ADMINISTRATION WAS LOOKING AT TAKING A 10% STAKE IN INTEL, SOFTBANK SEEMINGLY BUYING INTEL STOCK AS PART OF THIS PUSH. THERE ARE MORE LYNX, WHETHER IT BE TRUMP POSTING ON TRUTH SOCIAL ABOUT VARIOUS C.E.O.’S OR THE U.S. GOVERNMENT BUYING STAKES.

29:49 HOW DO YOU THINK ABOUT THESE THINGS? KEITH: AT THE END OF THE DAY WITH THIS NEWS WE LOOK AT RELATIVE EARNINGS MOMENTUM AND RELATIVE VALUATIONS AND GOING BACK TO YOUR QUESTION ON TARIFFS, THIS IS KIND OF A SIMILAR PICKING WINNERS AND LOSERS, THE GOVERNMENT IS STEPPING IN MORE. I DON’T KNOW THERE’S A BIG SHIFT IN OUR OVERALL STRATEGY BUT HISTORICALLY THE CAPITAL MARKETS HAVE PICKED THE WINNERS AND LOSERS. AND MORE ON THESE STRATEGIC AREAS BUT IT’S SOMETHING WE HAVE TO BECOME MORE CUSTOMED TO BUT WILL LOOK AT THE TRENDS TO FIGURE OUT WHETHER TO OVERWEIGHT OR UNDERWEIGHT AND THEN THE QUESTION BECOMES ARE THESE COMPANIES FOCUSED WHERE THEY WANT TO FOCUS OR THE GOVERNMENT AND WHERE IS THE POSSIBILITY? ALL ROADS LEAD BACK TO PROFITABILITY AS WE MAKE

30:37 INVESTMENT DECISIONS. DANI: ALWAYS A JOY. THANKS FOR JOINING SO EARLY. WE APPRECIATE IT. KEITH LERNER OF TRUIST. IN TERMS OF CONVERSATIONS YOU DON’T WANT TO MISS TODAY, THE FED GOVERNOR MICHELLE BOWMAN WILL JOIN THE TEAM AT 10:00 A.M. EASTERN. STAY WITH BLOOMBERG FOR THAT CONVERSATION. FIRST OF ALL, LET’S GET YOU OTHER TOP TRENDING STORIES, PRESIDENT DONALD TRUMP WIDENED STEEL AND ALUMINUM TARIFFS TO INCLUDE OTHER ITEMS LIKE MOTORCYCLES, BABY BOOSTER SEATS, TABLEWARE AND PERSONAL CARE PRODUCTS COMING IN METAL CONTAINERS OR PACKAGING W. INDIAN PRIME MINISTER MODI HAILED PRESIDENT PUTIN AS A FRIEND AS HIS COUNTRY MOVES TO

31:26 BOLSTER RELATIONSHIPS WITH CHINA AND ARE DRIFTING APART FROM TRUMP AND COMES AHEAD OF A MEETING BETWEEN MODI AND HAUNG LI. AND THERE IS A 204% GROWTH IN 2025 AND THE INCOME JUMPED 400% BOOSTED BY GLOBAL DEMAND FOR YOU GUESSED IT, THE GOOGOO DOLLS AND THE COMPANY IS RACING AHEAD WITH THE GLOBAL EXPANSION PLANS AT POP SMART. AND WE WILL HAVE AN UPDATE NEXT ON YOUR "BRIEF." THIS IS BLOOMBERG ♪

32:19 I PRESIDENT ZELENSKYY: WE NEED TO STOP THIS WAR TO STOP RUSSIA AND WE NEED SUPPORT, AMERICAN AND EUROPEAN PARTNERS. WE’LL DO OUR BEST FOR THIS. PRES. TRUMP: IF EVERYTHING WORKS OUT WELL TODAY WE’LL HAVE A TRILAT AND I THINK THERE WILL BE A REASONABLE CHANCE OF ENDING THE WAR. >> IT’S 30 COUNTRIES WORKING TOGETHER ON SECURITY GUARANTEES, WE’LL NOW WORK WITH THE U.S. ON GUARANTEES. >> MY HOPE IS THE UNITED STATES DOES THE MOST POSSIBLE BECAUSE THAT WILL ALLOW US TO ALLEVIATE THE BURDEN ON EUROPE AND THE UNITED STATES CONFIRM ITS COMMITMENTS BECAUSE THAT WAS A BIG QUESTION MARK. DANI: LEADERS FROM THE WHITE HOUSE AND EUROPE SPEAKING AFTER THE SUMMIT YESTERDAY. EUROPE AND THE U.S. ARE SAID TO BE WORKING IMMEDIATELY ON HOW TO GUARANTEE SECURITY FOR UKRAINE.

33:08 JOINING US NOW IS BLOOMBERG’S BRUSSELS BUREAU CHIEF, SUZANNE LYNCH. SONALIA: IS IT MARKING THE START FOR MORE SERIOUS TALKS IN THE PROSPECT FOR PEACE? WERE WE’RE IN THE NEXT PHASE THIS AND THEY WERE HAPPY WITH MONDAY’S MEETING BUT NOW THE REAL WORK BEGINS IN TERMS OF HOW TO FLESH THIS OUT AND HOW WOULD SECURITY GUARANTEES WORK FOR UKRAINE. AS WE’VE BEEN REPORTING THIS MORNING, THAT WORK IS ALREADY STARTING BETWEEN OFFICIALS FROM THE U.S. AND EUROPE. PROBABLY MOST LIKELY MILITARY INTELLIGENCE OFFICIALS TO SEE HOW IT WOULD WORK. ONE OF THE MOST CRUCIAL ASPECTS FOR THAN KEY QUESTION IS

33:53 WHETHER EUROPEAN OR ALLIED NATO TROOPS WOULD BE STATIONED IN UKRAINE SOME WAY TO TRY AND HELP UKRAINE BOLSTER ITS SECURITY. THERE APPEARS TO BE MIXED VIEWS AND SOME COUNTRIES ARE MORE KEEN ON THIS THAN OTHERS AND WE HAVE QUESTIONS WHETHER THE U.S. WOULD COMMIT ANY MILITARY SUPPORT TO THIS. DANI: WHERE DO THE GAPS STILL IN EUROPE SPECIFICALLY AND CAME TO TRUMP WITH A UNITED FRONT. WHAT HAPPENS WHEN THEY GO HOME AND TALK TO THEIR CONSTITUENTS? >> IN AN HOUR OR SO, ALL E.U. LEADERS, THE PRIME MINISTERS FROM ALL THE 27E.U. COUNTRIES WILL HOLD A VIRTUAL MEETING AND BE BRIEFED BY THE FIVE OR SIX EUROPEAN PLAYERS IN

34:40 THAT MEETING AND GET A DEBRIEF AND I SUPPOSE IT WILL BE THE FIRST TIME THE E.U. GETS TOGETHER AND TAKES THE TEMPERATURE, NOW WHAT’S NEXT FOR EUROPE? THEY WERE EXTREMELY WORRIED THAT EUROPE AND ZELENSKYY WAS EXECS CONCLUDEDDED LAST WEEK BUT YESTERDAY IS AN END. NOW THE KEY QUESTION, IS THE UNITED STATES PREPARED TO GIVE A SECURITY GUARANTEE AT SOME POINT? DONALD TRUMP APPEARED TO SHIFT ON THIS AND WHAT FORM THAT WOULD TAKE IS ANOTHER MATTER. WE HAVE COUNTRIES LIKE BRITAIN AND FRANCE AND SEEM TO BE POSITIVE ABOUT THE POSSIBILITY

35:27 OF SENDING MILITARY PERSONNEL TO UKRAINE WHO HELP AND NOT SURE IF OTHER COUNTRIES ARE ONBOARD FOR THAT. DANI: BLOOMBERG’S SUSAN LYNCH. THE TRUMP ADMINISTRATION IS SET TO DISCUSS A STAKE OF 10% P. SOFTBANK AGREED TO BUY $2 BILLION OF THE FIRM’S STOCK, JOINING US IS TOM MACKENZIE, WHAT DO YOU MAKE IT ALL? >> IN TERMS OF BUILDING, OF COURSE IN INTEL, IT’S A VOTE OF CONFIDENCE FROM INTEL AFTER HE FACED PRESSURE FROM DONALD

36:14 TRUMP AND IS MASSIVE POWERS AND HE OWNS A GEORGIA STAKE AND T.M.S.C. HAS A STAKE IN NVIDIA AND LOOKS TO BE BUILDING A STAKE IN INTEL AS WELL. THERE’S POSSIBLY POLITICS THAT PLAY AS WELL AND WILL LOOK GOOD IN TERMS OF WASHINGTON, THIS COMMITMENT, THIS SOFT BANK FROM MASSACHUSETTS, SO ON IN A COMPANY LIKE INTEL AND COMES AS WE DISCUSSED AND ALIGNS WITH THAT POTENTIAL 10% EQUITY STAKE BY THE GOVERNMENT AND THE TEAM, THAT WOULD BE CONVERTED UNDER THE CHIPS ACT. INTEL RECEIVED $2.2 BILLION AND COULD BE IN LINE CLOSE TO $1 11 BILLION U.S.

37:01 DOLLARS AND THE GOVERNMENT WOULD LOOK TO CONVERT SOME OF THOSE SUBSIDIES INTO EQUITY AND NOW THE TRUMP ADMINISTRATION COULD TAKE STAKE IN KEY SECTORS THEY SEE AS NATIONAL SECURITY CHARGES, WHETHER IT IS RARE EARTH OR STEEL OR CHIP MAKING IN DOMESTIC SOIL IN THE U.S. DANI: NVIDIA MAKING HEADLINES ABOUT THE TRUMP ADMINISTRATION LENDING ITSELF TO CHINA IF IT GOT 1%. REUTERS SAID NVIDIA IS PREPARE FORECASTER A NEW, MORE POWERFUL CHIP TO SELL TO CHINA. WHAT’S THE LIKELIHOOD THEY GET REGULATORY APPROVAL AND WHY WOULD NVIDIA TAKE THIS TACTIC? >> THE SANDS HAVE SHIFTED BECAUSE THE TRUMP

37:48 ADMINISTRATION IS NOW WILLING TO GO EASY ON THESE EXPORT CONTROLS IN RETURN OF 15% OF REVENUE AND SALES OF CHIPS IN THE CHINESE MOUNTAIN AND SOME WOULD HAVE YOU GOT MAYBE DOWNGRADING FROM THE TRUMP ADMINISTRATION FOCUS AND IS CRITIQUE. THE TRUMP ADMINISTRATION AND THE TREASURY SECOND SCOTT BESSENT PUSHED BACK AND SAID NATIONAL SECURITY REMAINS KEY BUT WE CAN DISTRACT THE SURVEILLANCE AND LOOKS LIKE THEY’RE LOOKING FOR A CHIP TO FIT IN THE CHINESE MARKET AND GIVEN THE GAP THAT REMAINS.

38:38 BUT CLEARLY A TIP WE’LL MANAGE TO GET AROUND. DANI: TOM, THANKS VERY MUCH FOR THAT UPDATE. TOM MCKENZIE IN LONDON. WE’RE KEEPING AN EYE ON HOME DEPOT, SET TO REPORT EARNINGS BEFORE THE MARKET OPENS. LET’S BRING IN OUR BLOOMBERG RETAIL REPORTER JENNIFER FOR MORE. HOME DEPOT KICKS OFF THE BIG BOX EARNINGS, WHAT’S EXPECTED? JENNIFER: AHEAD OF THE RESULTS IS OPTIMISM THIS MORNING. THE ANALYSTS ARE EXPECTING A VERY POSITIVE READ FOR RESULTS IN Q-2 AND THE FIGURE WE WANT TO LOOK AT IS COMPARITIABLE SALES, UP 1.4% WHERE IN THE PREVIOUS QUARTER WE SAW A SLIGHT DIP AND THANKS LARGELY

39:28 IN PART TO SPEND ON D.I.Y. PROJECTING AND SENDING A QUART OF PAINT AND WHAT WE LOOK AT IT. IF THERE’S COMMENTS THEY’LL GIVE ON THE IMPACT OF THE EVER CHANGING TARIFFS AND WHETHER OR NOT HOME DEPOT HAS NEGOTIATED SOME OF THEER" PRICES AND RESOURCES JUST 50% FROM OUTSIDE THE U.S. AND INVESTORS WILL LOOK FOR ANY SIGNS HOME DEPOT HAS BEEN ABLE TO MANAGE THE SHOPS AND ONLY SO MUCH THEY CAN DO BEFORE HE HAD PASS THEM ON TO YOU, THE CONSUMER. DANI: TO WHAT DEGREE DO WE HEAR MORE ABOUT THE CONSUMER, WE DON’T JUST GET HOME DEPOT BUT WILL HAVE TARGET AND WALL MARKET EARNINGS THIS WEEK, JENNIFER.

40:13 >> EXACTLY. WHAT’S REALLY IMPACTING HOME DEPOT, WE’VE DONE SOME SPIN BUT THERE IS WEAKNESS IN THE BIG TICKET DISCRETIONARY SENDS AND IT’S MORE BATHROOM AND KITCHEN REMODELS CONSUMERS ARE PUSHING OFF UNTIL WE CEE LOOR INTEREST RATES. POTENTIALLY WE MIGHT SEE A CUT IN NOVEMBER AND GIVING THEM SOME OPT MISSEN AND CONSUMERS RATED THAT THAT POTENTIALLY CONSUMERS WILL HAVE TO GET AROUND TO SOME OF THESE BIG TICKET SPINS AND IS GIVING CONSUMERS HOPE GOING FORWARD.

40:59 DANI: THANK FOR YOU THAT PREVIEW. WE’LL GET HOME DEPOT NUMBERS TODAY. AND WE LOOK AT MORE HOUSING DATA WITH YOUR TRADING DIARY FOR YOU NEXT. THIS IS BLOOMBERG. ♪ DANI: YOU’RE WATCHING "BLOOMBERG BRIEF." I’M DANI BURGER. LET’S TALK ABOUT TUESDAY. HOME DEPOT WILL DROP ANY MINUTE. HOUSING STARTS AND BUILDING PERMIT DATA AT 8:30 A.M. EASTERN. 10:00 A.M. WE’LL HEAR FROM FED CHAIRMAN MICHELLE BOWMAN WITH AN IMPORTANT CONVERSATION NOT TO MISS. SOME STOCKS MOVING IN THE PREMARKET, INTEL AMONG THEM,

41:48 THOSE SHARES UP 6.5%. SOFTBANK IS INVESTING $2 BILLION WORTH OF SHARES AND THE U.S. LOOKING TO 25 A 10% STAKE IN INTEL PALO ALTO AND THOSE SHARES UP MORE THAN 5.5% AND HAD STRONGER THANS PRESENTED FORECAST. DROPPING MOMENTS AGO YOU SEE THE BOTTOM OF YOUR SCREEN THE HEADLINE FROM MEDTRONIC, ADDING DIRECTORS TO ITS BOARD AND ELLIOTT MANAGEMENT HAS BECOME A MAJOR HOLDER. IN TERMS OF THIS OVERALL MARKET, EVERYTHING IS VERY QUIET. BONDS ARE BARELY MOVING AND STOCKS BARELY MOVING BUT OIL IS KIND OF MOVING AND IS DOWN LESS THAN 1%, 1% FOR BRENT AND NYMEX CRUDE AND WE HAVE THE MEETING

42:35 BETWEEN ZELENSKYY AND THE COALITION OF THE WILLING IN EUROPE GETTING CLOSER TO CONVERSATIONS, TRUMP PUSHING STATEMENTS ABOUT A BILATERAL AND TRILATERAL WITH OIL. AND "BLOOMBERG SURVEILLANCE TAKES THINGS FROM HERE. YOU’RE WATCHING BLOOMBERG TV. ♪