India ‘a bit recalcitrant' in trade talks, says US Treasury Secretary Bessent
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Business Standard
4 hours ago
- Business Standard
Nvidia, AMD China revenue deal could be model for others, says Bessent
Treasury Secretary Scott Bessent said the recent deal to allow Nvidia Corp. and Advanced Micro Devices Inc. to resume lower-end AI chip sales to China, on the condition they give the US government a 15 per cent cut of the related revenue, could serve as a model for others. 'I think we could see it in other industries over time,' Bessent said Wednesday in a television interview on Bloomberg Surveillance. 'Right now, this is unique, but now that we have the model and the beta test, why not expand it?' Bessent credited President Donald Trump with the 'very unique solution' of allowing Nvidia to expand in China and become a bellwether for Chinese technology, with the US taxpayer getting 'a share of' the reward. The revenue the Treasury receives from the arrangement will go to pay down debt, he said. 'If we could make a substantial debt' repayment, that would then allow for discussions about a program of sending money to taxpayers, he also said. Asked about reporting that China is urging its companies to avoid the Nvidia H20 processors now allowed for its market, Bessent said 'sure, we can discuss that' with the Chinese. 'But it also tells me that they are worried about the Nvidia chips becoming the standard in China.' China Talks On Tuesday, Bessent said that he'd be meeting again with his Chinese counterparts 'within the next two or three months,' speaking on Fox Business. He dismissed the possibility of China emulating other US trading partners in winning tariff relief in return for boosting investments in the US. When asked if China could make pledges worth billions of dollars like Japan, South Korea and the EU have as part of their trade agreements, Bessent said 'my sense is no because a lot of the buyout or the funds from the buyout are going to go to critical industries that we need to reshore and a lot of those need to be reshored away from China.' Whether the industry was semiconductors, rare-earth magnets, pharmaceuticals or steel, 'my sense is that isn't what will happen,' Bessent said in an interview with Fox Business on Tuesday. Tech and AI have been among the most high profile of areas of competition between the world's two biggest economies. President Donald Trump has extended a pause of higher tariffs on Chinese goods for another 90 days into early November, a move that stabilized trade ties between the world's two largest economies while they try to forge an agreement. Chinese companies in sectors such as electric vehicles have opened factories abroad to access new markets, a move that could also help them skirt US tariffs. He also indicated that Washington wanted to see measures from China over an extended period to stem the flow of chemicals used to make fentanyl before lowering duties Trump put in place over the issue. 'We will need to see months, if not quarters, if not a year, of progress on that before I could imagine those tariffs coming down,' he said.
Mint
4 hours ago
- Mint
Bessent Sees Nvidia, AMD China Agreements as a Model for Others
Treasury Secretary Scott Bessent said the recent deal to allow Nvidia Corp. and Advanced Micro Devices Inc. to resume lower-end AI chip sales to China, on the condition they give the US government a 15% cut of the related revenue, could serve as a model for others. 'I think we could see it in other industries over time,' Bessent said Wednesday in a television interview on Bloomberg Surveillance. 'Right now, this is unique, but now that we have the model and the beta test, why not expand it?' Bessent credited President Donald Trump with the 'very unique solution' of allowing Nvidia to expand in China and become a bellwether for Chinese technology, with the US taxpayer getting 'a share of' the reward. The revenue the Treasury receives from the arrangement will go to pay down debt, he said. 'If we could make a substantial debt' repayment, that would then allow for discussions about a program of sending money to taxpayers, he also said. Asked about reporting that China is urging its companies to avoid the Nvidia H20 processors now allowed for its market, Bessent said 'sure, we can discuss that' with the Chinese. 'But it also tells me that they are worried about the Nvidia chips becoming the standard in China.' On Tuesday, Bessent said that he'd be meeting again with his Chinese counterparts 'within the next two or three months,' speaking on Fox Business. He dismissed the possibility of China emulating other US trading partners in winning tariff relief in return for boosting investments in the US. When asked if China could make pledges worth billions of dollars like Japan, South Korea and the EU have as part of their trade agreements, Bessent said 'my sense is no because a lot of the buyout or the funds from the buyout are going to go to critical industries that we need to reshore and a lot of those need to be reshored away from China.' Whether the industry was semiconductors, rare-earth magnets, pharmaceuticals or steel, 'my sense is that isn't what will happen,' Bessent said in an interview with Fox Business on Tuesday. Tech and AI have been among the most high profile of areas of competition between the world's two biggest economies. President Donald Trump has extended a pause of higher tariffs on Chinese goods for another 90 days into early November, a move that stabilized trade ties between the world's two largest economies while they try to forge an agreement. Chinese companies in sectors such as electric vehicles have opened factories abroad to access new markets, a move that could also help them skirt US tariffs. He also indicated that Washington wanted to see measures from China over an extended period to stem the flow of chemicals used to make fentanyl before lowering duties Trump put in place over the issue. 'We will need to see months, if not quarters, if not a year, of progress on that before I could imagine those tariffs coming down,' he said. With assistance from Philip Glamann. This article was generated from an automated news agency feed without modifications to text.
&w=3840&q=100)
Business Standard
4 hours ago
- Business Standard
S&P 500, Nasdaq near record highs on hopes of Fed rate cut in September
The benchmark S&P 500 and the Nasdaq hovered near record highs on Wednesday as investors were increasingly confident that the Federal Reserve could restart its monetary policy easing cycle next month. Signs that US tariffs on imports have not fully filtered into headline consumer prices came as a relief for investors this week as they scour for insights on the impact trade uncertainty has had on the economy. Despite data showing underlying price pressures were on the rise, markets also factored in recent weakness in the job market and a shake-up at the Federal Reserve as they leaned in favor of a potential dovish move by the central bank in September. Traders are now fully pricing in a 25 basis points interest rate cut, according to the CME's FedWatch Tool, up from 89.2 per cent last week. The central bank last lowered borrowing costs in December. Treasury Secretary Scott Bessent also said he thought an aggressive half-point cut was possible given recent weak employment numbers. Stagflation "was the first word that came to my mind when I saw this CPI report yesterday," said Mark Hackett, chief market strategist at Nationwide, referring to Tuesday's data coming on the heels of a number of other reports pointing to a cooling economy. "The slowdown that we're seeing is probably fairly temporary, at least at this point. So inflation is something that we're absolutely worried about because we saw that uptick." At 12:18 p.m. ET, the Dow Jones Industrial Average rose 363.26 points, or 0.82 per cent, to 44,821.52, the S&P 500 gained 9.34 points, or 0.15 per cent, to 6,455.15 and the Nasdaq Composite advanced 15.77 points, or 0.07 per cent, to 21,697.97. The blue-chip Dow was within 1 per cent away from an all-time high and the Russell 2000 index, which tracks rate-sensitive small-cap companies, added 0.1.3 per cent to hit a six-month high. Investors were also taking notice of other sectors following the recent tech-led rally in US stocks that have pushed valuations of the S&P 500 above long-term averages. Healthcare stocks, which have been beaten down for much of the year, led gains among the 11 S&P 500 sectors with a 1.4 per cent rise, while the tech-heavy Nasdaq 100 index was marginally lower. Later in the day, investors will scrutinize remarks of a number of policymakers, especially Chicago Fed President Austan Goolsbee. CoreWeave, which is backed by Nvidia, slumped 17.6 per cent after the AI data center operator reported a bigger-than-expected quarterly net loss. Eyes are also on developments surrounding the China revenue-sharing deal the US government signed with top chipmakers, which the White House said could be expanded to others in the sector. Paramount Skydance jumped 30 per cent. The company won exclusive broadcasting rights to the Ultimate Fighting Championship for seven years earlier this week. In geopolitics, traders also were keen on a meeting between Trump and Russia's Vladimir Putin on the Ukraine conflict scheduled on Friday. Advancing issues outnumbered decliners by a 2.96-to-1 ratio on the NYSE and by a 2.28-to-1 ratio on the Nasdaq. The S&P 500 posted 37 new 52-week highs and two new lows, while the Nasdaq Composite recorded 131 new highs and 49 new lows.
