US Treasury Secretary Bessent says he discussed economics and AI with China; have some deliverables

AI Started an AI dialogue. Will open up an incident line on AI with China. US-China to meet in two months on AI in Shenzhen. Labs need to take responsibility for themselves on AI. Open AI managers are responsible for hugging face incident. China would not tell us if they have had AI incidents. Chinese AI models are very powerful but US in in the lead. AI czar would put countours around AI incidents. China agreed US is in lead on AI. Talks Chance Trump and Xi could see each other two more times after this week. There was about 12 hours worth of talks yesterday. Trade Discussed tariffs with China. US and China are discussing items that could go in the most favored nature nation tariffs. US-China trade truce a focal point of talks. US looking to sell more agriculture and energy. For China, looking to bring in more everyday items. On US side, energy items could fit for tariff cuts. On China side, medical devices could be fit for cuts. Iran Can't tell you how long conflict will last. US is pressuring Iran economically like never before. On Sept 23rd, all Iranian airlines will be shutdown worldwide. Discussed Iran with China. Enablers will be closed down. We are putting a stop to enablers. Chinese authorities are very engaged in the process. Officials, including PBoC Governor Pan, were very engaged in Iran talks. Had behind-the scenes talks with China on Iran. On other side of conflict, rates should drop. Buybacks/Bonds Raised buyback size as were in an illiquid period. 10-30 year yields very correlated with energy. Since buyback announcement, 30-year yields are up 1bp despite higher oil prices and rise in global bond yields. Fed Is confident on Fed Chair Warsh and so is Trump. Won't say if he agreed with the Fed rate hike or not. Sure Warsh will do the right thing for the Fed mandates. Will see if this is a supply shock on the energy side. Haven't seen uptick in core inflation, it is all headline.