Crypto News: Constructive AI talks

Good morning. The US and China hail positive talks ahead of this week’s leaders’ summit. We look at the hurdles facing Trump’s Venezuela oil deal. And there may be more value hiding in your family’s jewelry boxes than you think. Listen to the day’s top stories.

— Marc Perrier

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US and China officials hailed positive talks on AI, trade and investment ahead of this week’s summit between Donald Trump and Chinese President Xi Jinping. The two sides agreed on an AI dialogue, though they failed to extend their trade truce, the Financial Times reported. US Treasury Secretary Scott Bessent called the discussions “very successful.”

The upbeat tone carried into markets, with futures rising on optimism ahead of the summit. Oil fell on diplomacy hopes after Trump said he may meet Iranian President Masoud Pezeshkian on the sidelines of the UN General Assembly this week. Energy markets remain strained, however, with US retail diesel topping $6.50 a gallon for the first time. And while the world’s attention is on the Strait of Hormuz, the impasse in the Black Sea is threatening a food supply shock.

The AI investment boom is accelerating, too. SoftBank is seeking the equivalent of more than $11 billion in what would be one of the biggest junk bond deals ever, people familiar said, as Masayoshi Son’s conglomerate ramps up investment in OpenAI. Meanwhile, Citigroup CEO Jane Fraser said companies are racing to strengthen their defenses as increasingly powerful AI models raise the risk of cyberattacks.

Old campaign foes meet again. Donald Trump and New York Mayor Zohran Mamdani sit down at the mayor’s residence today, continuing an unlikely relationship that has veered between cooperation and clashes. It’ll be their third face-to-face since Mamdani’s election win, following a bitter campaign and a surprisingly friendly first meeting at the White House.

Merz Vows to Stay On After Record German Election Defeat

Hollywood’s theatrical pipeline is part of settlement talks over Paramount Skydance’s planned acquisition of Warner Bros. Discovery. California officials are said to be seeking a commitment to release 30 films a year in theaters, with a $30 million penalty attached and a potential forced sale of Miramax if it falls short. The talks also include keeping Paramount’s substantial Los Angeles operations in California.

Deep Dive: Oil Play

Oil rigs in Venezuela — Oil rigs on Lake Maracaibo in Cabimas, Zulia state, Venezuela.

The success of the Trump administration’s blockbuster Venezuela oil deal hinges on fields that are aging, degraded or costly to access.

The agreement last month with controversial Venezuelan energy mogul Alejandro Betancourt includes 17 fields and gives the US majority control of a huge share of the country’s oil wealth.
Betancourt’s North American Blue Energy Partners aims to more than double production, adding about 300,000 barrels a day in just over two years.
Industry executives and analysts say that target will be difficult to reach, with production centered on remote fields yielding heavy, tar-like crude that requires specialized equipment.
Pressure is mounting for a quick boost to calm oil markets roiled by the Iran war, even as the deal faces political blowback in Venezuela over sovereignty.

The Big Take

As the AI boom seeps into every part of the economy, pensions and sovereign wealth funds with billions to invest are finding the diversification they once relied on is an illusion.

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Opinion

Donald Trump Jr. and his bride, Bettina Trump.

Donald Trump Jr.’s wedding fails the sniff test, Nia-Malika Henderson writes, as a Russian oligarch and Vladimir Putin ally bankrolling the celebrations in the Bahamas raises questions about influence and access.

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Before You Go

What’s hidden in your family’s jewelry boxes? The average US household is sitting on $5,700 in unappraised gold jewelry, with roughly $750 billion in gold weight in drawers across the country, according to Unvault.

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