Bessent拟扩大美债回购，Broadcom谈600亿美元AI融资

Bloomberg Audio Studios, podcasts, radio, news. [music]

Good morning. I'm Nathan Hager.

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

Alexis, we begin with the latest [music] developments in the Middle East. Iran is dismissing US threats of economic pain and isolation. Treasury Secretary Scott Besson says the Trump administration will give details of an initiative on Monday that President Trump describes as an economic D-Day. We get the very latest from Bloomberg News Director Will Kennedy.

There aren't that many added things the US can do. There are sanctions that have been in place for many, many years. There's this blockade of oil tankers which is of course having an impact. Iranian oil exports are very close to zero. It [clears throat] would really take an effort to persuade other countries like China not to trade with Iran to make a a big further difference one presumes and putting secondary sanctions on China would be a very big step for lots of reasons given the broader context on the China US relationship not least because Donald Trump is about to have a meeting with Xiinping

and Bloomberg's Will Kennedy says China will provide the biggest test of Washington's determination to follow through Beijing is the main buyer of Iranian oil.

And Nathan, there may be new tensions in the Asia-Pacific. The US, Japan, and South Korea held a three-way call to coordinate their response after North Korea fired a barrage of short-range ballistic missiles yesterday. The volley came after President Trump stunned South Korea by abruptly cancelling decades old joint military exercises, and the North rejected the president's bid to resume dialogue with leader Kim Jong-un.

North Korea says the two leaders may have an excellent relationship, but America's hostile policies haven't changed. Still, South Korea's president says he supports President Trump's decision to curtail the drills and reopen diplomacy.

Well, Alexis, a new trade deadlines coming up for the US and Canada. The two sides have till midnight to reach a broader trade deal after President Trump announced a tentative agreement to avert 50% tariffs on billions of dollars in Canadian goods. Sources tell Bloomberg the current deal would lower tariffs on certain Canadian steel and aluminum exports to 25% and Canadian car duties would fall to 15%. Christa Freeland is a former Canadian deputy prime minister.

She says both sides need a better outcome.

I think that is a bad outcome for Canada to have permanent tariffs on our steel, aluminum, cars, and carport parts. Really harmful for those sectors. But I think it's a bad outcome for the United States as well. Uh it it's really important for people to recognize that you can lose by winning.

Former Canadian Deputy Prime Minister Christia Freeland, and you can catch more of her remarks on Bloomberg Wall Street Week tonight at 6 Eastern on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.

Well, we have a winner in this week's special runoff in California to serve the rest of former Congressman Eric Swallwell's term. With 95% of votes counted, the Associated Press projects state senator Aisha Wahab will beat fellow Democrat Bay Area Rapid Transit Board President Melissa Hernandez 53 to 47%. Wahab will become the first Afghan-American to serve in Congress and her campaign was backed by the Congressional Progressive Caucus.

The result comes as Swallwell remains under investigation for sexual assault allegations. Federal agents seized electronic devices from the former congressman at San Francisco airport over the weekend and later searched his home in Washington DC.

Now Alexis, the midterm elections are now less than 80 days away and Republicans have a huge war chest sitting on the sidelines. The latest federal filings show President Trump's super PAC MAGA Inc. has a nearly $44 million cash pile. The committee received another $3 million in donations last month, including from private prison operator Geog Group and sugar producer Florida Crystals. At the same time, MAGA Inc. spent just $132,000 in July, mostly on operating costs.

President Trump has said he plans to use MAGA Inc. to support Republicans. So far, though, he hasn't signed off on a plan.

And Treasury [clears throat] Secretary Scott Besson says he's prepared to ramp up buybacks of costly US government debt. That's despite the short-lived impact so far on long-term borrowing costs. Bessent also hinted at a new fiscal plan to address the highest Treasury yields in decades.

Once the market understands that we are focusing on fiscal consolidation and that we are uh trying to bring the market back into equilibrium uh in in a thinly traded market. I think uh you know I'm confident that bonds will continue declining. Treasury Secretary Scott Besson added the expanded buyback could be more than the $4 billion currently planned for next month.

There's a warning this morning from former New York Fed bank President Bill Dudley. The current Bloomberg opinion columnist says the US equity market is in bubble territory.

Look at the railroads and the internet telecom boom all those things did great things for the economy. So two things can be true at the same time that the the technological innovation can be really transformative but at the same time you can have an investment boom and bust and in fact if you look at the history it tells you that that's usually the case. So the question here is really just really not whether it's going to be a turn from a boom to a bust.

It's really a question of timing and magnitude.

That's former New York Fed President Bill Dudley. He says the stock market bubble will likely burst before the end of 2027. You can hear his full remarks on the Bloomberg video hub at bloomberg.com and the Bloomberg business app.

And Nathan, as warnings grow of an artificial intelligencefueled stock market bubble, word this morning that Anthropic is preparing for a potentially record-breaking IPO. Sources say the claw developer expects to match or beat the record $75 billion raised in SpaceX's listing. Mandep Singh is Bloomberg Intelligence's global head of tech research. This kind of growth rate is phenomenal at the scale Enthropic is at. And that's where when you compare to SpaceX which IPOed with about 18 to19 billion revenue run rate growth rate much slower than Anthropics and still managed to get close to that $2 trillion mark.

So from that perspective clearly Anthropic with its growth rate should be at least over where SpaceX traded initially. Bloomberg Intelligence's Mandep Singh says Anthropic may file publicly for its IPO by the end of this month.

Well, meanwhile, Alexis Broadcom's in talks with lenders to raise more than $60 billion in debt for an AI chip financing deal that would benefit Anthropic and other companies. The potential deal would help those firms access chips and other key AI infrastructure. Ryan Gould covers the chip sector for Bloomberg.

This would be among the largest that we've seen of this type of deal. I want to just throw us back a little bit to June when we saw Broadcom announced that that partnership with Blackstone and Apollo where essentially they were looking to strike an agreement to provide sort of 20 gaw of compute globally for AI deployment. I mean, I think you could probably see this as some kind of extension of that agreement. This would essentially see Blackstone and Apollo participate again per our sourcing and reporting.

Bloomberg's Ryan Gold says Broadcom forecast back in March it would have AI chip sales topping hundred billion dollars next year.

And Bloomberg News has learned Nvidia is in early discussions with the Korean AI chip designer Rebellions about possible collaborations. Sources say the talks include a technical partnership and investment or perhaps even an acquisition founded during the pandemic in 2020. Rebellions is among a group of s