中美延长贸易休战至明年1月，加拿大总理提及美国入侵风险

[music] Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Daybreet podcast. Good morning. It's Thursday the 24th of September. I'm Caroline Heba in London. Coming up today, Trump and Xi extend their trade ceasefire as Bloomberg reporting raises fresh questions. Canada's Mark Carney concedes that he has been forced to consider the risk of a US invasion in an interview with the New York Times. Soaring petrol and diesel prices push European car drivers towards electric vehicles and less risky than cocaine.

Bloomberg's exclusive reporting on the gangs flooding Europe with fake cigarettes. Let's start with a roundup of our top stories. The US and China have extended their trade truce for another two months as Xi Jinping begins his first US state visit in 11 years. President Trump personally greeted Xi at Joint Base Andrews, setting the stage for White House talks today. US Treasury Secretary Scott Besson says that the extension buys more time to work towards a broader economic agreement.

We have agreed today uh that we will extend what we call the Busousan agreement. the U economic day between the two countries uh that was scheduled to end on November 10th that is going to be extended until January 10th to give us more time to see what we can do on the economic front.

That was Scott Bessent there. The truth leaves major disputes unresolved though including on rare earths trade and the two countries race for dominance in artificial intelligence. Exclusive Bloomberg reporting is adding another point of tension though as the summit gets underway. Our team has learned that the Chinese government is holding potentially sensitive F-35 stealth aircraft parts. According to people briefed on the incident, the components were being shipped from Australia to the US when they were unexpectedly diverted to Hong Kong.

Bloomberg's national security reporter Tony Capacio uncovered the story. In the interest of good relations, China should have returned it. I know the US was pressing for them to get it. Back in late May when this happened, the JO they call the joint program office hoped they would get the parts back. And we fast forward to today. The Pentagon still trying to get them back.

Tony Capacio there as Bloomberg has separately uncovered new evidence that Chinese source components are helping the Houthies build missiles and drones in Yemen. There's no evidence that Chinese companies involved knew that their products were ultimately destined for the Iranbacked group. However, the findings put sensitive military technology into sharper focus as Trump and Xi begin their discussions. The Trump administration has been ordered to temporarily restore White House access for journalists from CNN, MS Now, and Politico.

The outlets say that they were banned in retaliation for their coverage and are suing over what they call a quote direct assault on their First Amendment rights. The temporary order was issued by a Trumpappointed judge and will remain in place for 2 weeks. Canada's prime minister says that he has prepared for what he calls the quote extreme tale risk of US military action against his country. Mark Connie has told the New York Times a US invasion is not his base case, but he says that it would be irresponsible not to consider the risk after President Trump's repeated claims that Canada should become an American state.

Now, the comments come as Mark Carney tries to reduce Canada's dependence on the US while building closer ties to Europe. Foreign Minister Anita Anan told Bloomberg that Canada now sees a bigger role for itself and other middle powers. ensuring that the vacuum that is left uh in the WTO or in geopolitical conflict environments is addressed by middle powers who want to work together for the interests of their domestic populations as well as or the global environment at large.

Anita Anan speaking to Bloomberg at the UN in New York. She says that Canada has signed more than 20 economic security and defense agreements across five continents over the past year. Now, an open AI model hacked an Australian ministry website earlier this year. Now, this marks one of the first known AI attacks on a government database. The model gained unauthorized access to files on a website for reporting healthcare statistics.

Australia Prime Minister Anthony Alanesi says that he has spoken to OpenAI's leadership about the incident.

Today I spoke with the CEO of Open AI, Sam Alman, to express Australia's extreme concern about this incident. And I also expressed my disappointment that it took the company way too long to inform the government uh what had occurred and the the nature of the way that that notification occurred as well was unacceptable.

Australia's Anthony Albani there he added that there was no evidence that the personal information of Australian citizens was compromised. The government is now investigating whether any crimes were committed. This is the latest in a series though of high-profile incidents involving Open AI, including its models breaking into the resources of hugging face, aer website hosting AI data sets. That was in July, of course.

Well, despite continued concerns about AI safety, firms are still pressing ahead with developments to make the technology more user friendly. Now, Meta has unveiled a palmsiz gadget for using Muse. This is its popular uh new AI assistant. The product was revealed on stage by co Mark Zuckerberg in a surprise announcement yesterday because um that little handheld thing that I was working on, it's um it's actually real.

Um, we packed the whole Muse experience, including the whole real time voice and avatar stack into something that fits on a keychain and is always available to talk to you. You just uh go ahead and tap here in the fingerprint sensor in the corner and you can start talking without having to unlock a phone or open an app. So, the device that Zuckerberg was talking about is called the Muse Charm, and it allows users to customize a virtual character and interact with other devices.

Is expected to go on sale by December with pricing to be determined if you're wondering, and if you remember, looks a little bit like a Tamagotchi. Right, let's think about markets. So, US Treasuries tumbled on the news of rising oil prices and also some strong economic data out yesterday. So, yields on the 5-year US bond pushed above 5%. This for the first time since 2007. BNY's chief investment officer Jason Granite says that that is down to energy prices and also high growth.

Number one, if you look at yields in the market, it's been unbelievably well correlated to the price of energy. Brent back over 100. That is as good a forecaster of this move recently as any. And and [snorts] the second thing is you had the strong economic data of the PMIs today but broad-based strength and part of that has been driven by strength coming out of the corporates. The earning cycle has been very strong.

Granite adds that he sees the era of low interest rates as over and that these yields are normal. The sell-off also spread to European debt with German 10-year B yields rising seven basis points to 3.53% yesterday. Now to the UK. Prime Minister Andy Burnham hinted that he doesn't want his government to repeat the tax rises of recent Labor budgets. The leader told reporters that the government raised levies in the past two years and now needs to quote get the balance right.

Bloom's James Walco has more. It's a warning from the prime minister to his own party. Tax rises aren't always the answer. The global bond selloff means the UK government has limited fiscal space. Some in the Labor Party are now pushing for tax rises on banks as well as oil and gambling companies to make up the shortfall. The alternative would be state spending cuts, which are likely to upset voters. Despite the looming economic pressures, Bernham plans to use his first leader speech at Labour's annual conference next week