Trump takes a breather

Good morning. Donald Trump allows more time for trade talks with China. Beijing urges local firms to avoid Nvidia's chips. And why the number 12 is causing a stir among Swifties. Listen to the day's top stories.

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Donald Trump extended a pause in his threatened sky-high tariffs on China. He's allowing another 90 days for talks, helping stabilize relations between the world's two largest economies. But China still isn't happy about US restrictions on its chip exports—it urged local firms to avoid using Nvidia's H20 processors, particularly for government-related purposes. Meanwhile, Trump indicated he'd be open to allowing Nvidia to sell China a scaled-back version of its Blackwell AI chips, the company's most advanced offering.

The search for a new head of the Federal Reserve expanded to include two vice chairs, Michelle Bowman and Philip Jefferson, as well as Dallas Fed President Lorie Logan, according to two administration officials. Meanwhile, Trump named EJ Antoni, chief economist of the conservative Heritage Foundation, to lead the Bureau of Labor Statistics after firing the head of the agency earlier this month.

Trump's eventual pick of a successor to Jerome Powell may help in his quest for lower interest rates, but bond investors betting on a cut next month face a potential roadblock in today's inflation data. Futures drifted higher ahead of the CPI figure, also helped by the extension of the China trade talks. Gold traders are awaiting formal clarification of US policy after Trump said imports of the metal won't face US tariffs.

US Small-Business Optimism Rises to Five-Month High on Economy

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Elon Musk lashed out against Apple's app store practices, accusing the iPhone maker of favoring OpenAI. Elsewhere in tech, Intel shares rose premarket after Trump apparently changed his view on Intel's CEO after meeting him at the White House. The president said Lip-Bu Tan's "success and rise is an amazing story," apparently reversing his earlier criticisms of the executive.

Volodymyr Zelenskiy. Photographer: Sean Gallup/Getty Images

Trump downplayed expectations for his upcoming meeting with Russian leader Vladimir Putin, calling it a "feel-out meeting." European leaders and Ukrainian President Volodymyr Zelenskiy will hold a call with Trump tomorrow. The issue of territory is central to the conflict—here's our explainer.

Deep Dive: DEI Policies

Jamal Bryant speaks during Sunday service at New Birth Missionary Baptist Church in Stonecrest, Georgia, on July 27. Photographer: Elijah Nouvelage/Bloomberg

Pastor Jamal Bryant is urging Black shoppers to steer clear of Target because of the retailer's reversal of its diversity, equity and inclusion policies.

Bryant is demanding Target reverse its January decision to shift long-standing commitments to DEI. He and his supporters have singled out Target because of its historic support of the Black community and Black-owned brands, putting it in an in an especially tricky spot.
While he wasn't the first to call for a Target boycott, the fight has taken on an heightened aspect for Bryant and others who are desperate to force a company to defy Trump's efforts to outlaw what the president calls "illegal DEI." Read our explainer on the DEI backlash.
Trump's crackdown helped prompt a plunge in shareholder resolutions from progressive investors that typically push companies on social reform.

The Big Take

Illustration: Danielle Del Plato; Photographer: Getty Images/U.S. Mint

The US Treasury secretary has the ear of an impulsive president—and nervous investors worldwide hope it stays that way. Scott Bessent discusses tariffs, deficits, and Trump's economic plan in an exclusive interview.

Big Take Podcast

Who's Footing the Bill for Trump's Tariffs?

Bloomberg Power Players New York: Set against the backdrop of the US Open Tennis Championships, we'll bring together influential voices from the business of sports to identify the next wave of disruption that could hit this multitrillion-dollar global industry. Join us on Sept. 4. Learn more.

Opinion

Unitree Robotics boxing robots at the World Artificial Intelligence Conference in Shanghai on July 28. Photographer: Hector Rematal/AFP/Getty Images

The US currently has the lead in the AI race against China, but its position is perilous, Hal Brands writes. While America may be ahead in high-end innovation, China excels at integrating AI into the everyday workings of the economy and the state.

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Nationalism Goes Better on Chips Than Nothing

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The US Oil Shale Industry Is Doing More With Less

Before You Go

Photographer: Gareth Cattermole/TAS24/Gareth Cattermole

Swifties knew something was up when Taylor Swift's marketing team posted a carousel of 12 images. Then her website began a countdown to 12:12 ET (and note the additional clue in the time). Suddenly it all became clear, with the singer announcing the upcoming release of her 12th studio album, titled The Life of a Showgirl.

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