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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the latest developments in a trade

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Speaker 3: war now between the US and China. At midnight, the

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Speaker 3: Trump administration imposed a ten percent tariff on all Chinese goods.

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Speaker 3: This morning, China is retaliating. Bloomberg's John Tucker joins us

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Speaker 3: with the latest. John, what is the response?

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Speaker 4: And Nathan? Beijing has imposed a fifteen percent tax on

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Speaker 4: some US energy imports and a ten percent fee in

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Speaker 4: American oil and agricultural equipment. It also put companies like

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Speaker 4: Calvin Klein owner PVH Corporation, and Illumina on a blacklist.

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Speaker 4: China also said it's going to investigate Google for alleged

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Speaker 4: to anti trust violations by targeting a handful of American

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Speaker 4: companies Nathan and Karen and slapping levies on some US goods.

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Speaker 4: This move does seem designed to avoid escalating tensions. The

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Speaker 4: tariffs are set to kick in February tenth, and this

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Speaker 4: potentially leaves room for negotiation and President Trump also did

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Speaker 4: signal a desire to speak with the Chinese leader Jijingping

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Speaker 4: before the tariffs take effect, so the reaction in the

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Speaker 4: market seems to be muted at this point. The Chinese currency,

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Speaker 4: the offshore you on little change this morning, in fact,

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Speaker 4: is up three tenths of per percent right now. And

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Speaker 4: then the Hangsang China Enterprises Index, this is of Chinese

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Speaker 4: stocks listed in Hong Kong that has rebounded. Initially, it

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Speaker 4: dove at the news of the US tariffs and the

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Speaker 4: Chinese countermeasures, and right now, in fact, it is up

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Speaker 4: three and a half percent. In New yorkome John Tuncker Bloomberg.

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Speaker 2: Radio, All right, John, thank you. All tariffs on China

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Speaker 2: are moving ahead. America's neighbors are getting a reprieve. President

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Speaker 2: Trump says he's delaying twenty five percent tariffs on Canada

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Speaker 2: and Mexico for a month. Those are due to kick

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Speaker 2: in just after midnight this morning. Bloomberg's Derek to Clodes

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Speaker 2: says Canadian Prime Minister Justin Trudeau made a number of

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Speaker 2: concessions on border enforcement.

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Speaker 5: Canada will appoint a fentanyl czar to monitor and crack

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Speaker 5: down on the trade of that drug, list the Mexican

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Speaker 5: cartels as terrorists, and ensure twenty four to seven eyes

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Speaker 5: on the border, which is part of that surveillance, which

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Speaker 5: will include drones and that sort of thing.

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Speaker 2: Bloomberg's direct to Clode reports. Canada is also going ahead

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Speaker 2: with a nine hundred million dollar planet announced in December

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Speaker 2: to add more resources to the border security, including helicopters.

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Speaker 6: Thank Karin.

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Speaker 3: Mexico is also getting a thirty day delay on tariffs.

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Speaker 3: President Trump says he's gotten a similar border security agreement

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Speaker 3: from President Claudia Shanbaum.

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Speaker 7: They've agreed to put in ten thousand soldiers permanently like

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Speaker 7: forever ten thousand soldiers at their side of the border

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Speaker 7: and stop fentanyl and illegal aliens from coming into our country.

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Speaker 3: The President Trump's deal with Mexico similar to one from

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Speaker 3: the Biden administration. Mexico also agreed to send ten thousand

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Speaker 3: troops to its own southern border in twenty twenty one one.

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Speaker 3: President Trump says the US will negotiate now with both

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Speaker 3: Mexico and Canada over the next thirty days on a

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Speaker 3: more permanent economic deal.

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Speaker 2: Well, Nathan, We now turned to the latest developments in

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Speaker 2: the War overseas. President Trump wants an agreement with Ukraine

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Speaker 2: to access its critical mineral resources in exchange for US

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Speaker 2: aid and its defense against Russia.

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Speaker 8: We're telling Ukraine they have very valuable rare earth. We

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Speaker 8: want what we put up to go in terms of

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Speaker 8: a guarantee. We want a guarantee we want. We're handing

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Speaker 8: the money, handover fist. We're giving them equipment. European is

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Speaker 8: not keeping up with US.

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Speaker 2: Ukraine has significant reserves of uranium, titanium, lithium, and graphied

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Speaker 2: which could be worth trillions of dollars, and President Vladimir

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Speaker 2: Zelenski offered Western allies access to these resources as part

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Speaker 2: of his victory plan last year.

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Speaker 3: Well, meanwhile, Karen, President Trump is going to meet later

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Speaker 3: today with Israeli Prime Minister Benjamin Natanyahu in Washington. Bloomberg

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Speaker 3: Zamy Morris has a preview from the nation's capital.

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Speaker 9: Israeli Prime Minister Benjamin Nettanna, who says being the first

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Speaker 9: world leader to visit the White House and meet with

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Speaker 9: the President since his inauguration sends a strong signal.

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Speaker 6: I think it's a testimony to the strength of the

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Speaker 6: Israeli American alliance.

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Speaker 9: The meeting comes as US and Arab mediators begin brokering

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Speaker 9: the next phase of a ceasefire agreement. Nataannahuo plans to

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Speaker 9: discuss with President Trump critical issues facing Israel and the region,

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Speaker 9: including victory over Hamas, achieving the release of the remaining

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Speaker 9: hostages in Gaza, and dealing with the Iranian access Amy

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Speaker 9: Morris Bloomberg Radio, All.

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Speaker 2: Right, Amy, thank you. By the President has signed an

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Speaker 2: executive action to create a sovereign wealth fund for the

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Speaker 2: US Treasury Secretary Scott Bessend and Commerce Secretary nominee Howard

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Speaker 2: Lutnik will be spearheading the effort. Here's Bessend.

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Speaker 10: Within the next twelve months, we are going to monetize

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Speaker 10: the assets side of the US balance sheet for the

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Speaker 10: American people. Where are going to put the assets to work?

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Speaker 10: And I think it's going to be very exciting. We've

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Speaker 10: study best practices has done around the world.

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Speaker 2: And Treasury Secretary Scott Besson said the fund would be

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Speaker 2: created within the next twelve months and could be used

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Speaker 2: to facilitate the sale of TikTok.

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Speaker 3: Well, let's turn to markets now, Karen, as we watch

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Speaker 3: futures move lower once again this morning, this time on

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Speaker 3: the China US trade WARRIS and P futures are down

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Speaker 3: about two tenths of one percent. Stocks paired their losses

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Speaker 3: yesterday after the US agreed to delay tariffs on Canada

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Speaker 3: and Mexico. The SMP closed down three quarters of one percent,

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Speaker 3: after being nearly two percent lower earlier in the session.

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Speaker 2: Well one stock that's on the move this morning, Nathan

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Speaker 2: is Pallenteer. The shares are up more than eighteen percent.

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Speaker 2: The software company is out with the full year revenue

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Speaker 2: forecast that exceeded analyst estimates. Begin more with the Bloomberg's

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Speaker 2: Charlie Pellett.

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Speaker 11: CEO Alex Karp cites what he calls untamed organic growth

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Speaker 11: in demand for its artificial intelligence software. Derek John is

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Speaker 11: senior investment strategist at Crane Funds.

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Speaker 10: We see Patentier, host of Time Show, to become the

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Speaker 10: go to operating system for enterprises in the AGI world.

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Speaker 11: A reference to artificial general intelligence, best known for its

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Speaker 11: national security work and more recently its AI platform. Palenteer

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Speaker 11: stock searched three hundred and forty percent last year in

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Speaker 11: New York. Charlie Palette, Bloomberg Radio, Thanks Charlie.

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Speaker 3: Looking overseas, shares of UBS are down nearly six percent.

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Speaker 3: The bank beat earnings estimates, but concern persists over a

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Speaker 3: potentially substantial increase in capital requirements. In an interview with

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Speaker 3: Bloomberg CEO Sergio or Mighty Warren, markets may not fully

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Speaker 3: reflect the impact post by President Trump's tariffs.

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Speaker 12: I can see inflationary pressure coming out of tariff tariff war,

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Speaker 12: and that in turn would mean that central banks would

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Speaker 12: need to stop their easing path, potentially even reverse something

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Speaker 12: that is not priced in the market.

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Speaker 3: UBS CEO Sergio Ormudy also says the bank aims to

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Speaker 3: buy back up to three billion dollars of a its

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Speaker 3: own shares this.

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Speaker 2: Year and staying in Europe, Nathan shares a Diagio are

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Speaker 2: down about eight tens of a percent. The maker of

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Speaker 2: Johnny Walker, kennel I and Casamigos is scrapping its sales

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Speaker 2: target as it deals with sluggish growth and a possible

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Speaker 2: tariff battle in the US, its biggest market. About forty

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Speaker 2: five percent of Diagio's US sales are from products made

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Speaker 2: in Canada and Mexico. Time now for a look at

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Speaker 2: some of the other stories making news in New York

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Speaker 2: and around the world, and for that we're joined by

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Speaker 2: Bloomberg's Michael Maher.

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Speaker 6: Michael, good morning, Good morning, Karen, Democrats are upset about

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Speaker 6: the abrupt shutdown of the US Agency for International Development.

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Speaker 6: Republicans say they welcome to move. The independent federal agency

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Speaker 6: is approved and funded by Congress, but over the weekend

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Speaker 6: it was essentially shuttered by the Department of Government Efficiency

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Speaker 6: or DOGE, headed by billionaire Trump ally Elon Musk. Democratic

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Speaker 6: Senator Brian Chats of Hawaii called the move flatly illegal.

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Speaker 3: This is about, literally, do we uphold the rule of

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Speaker 3: law in the United States.

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Speaker 6: One of those employees was Christina Dry, a speech writer

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Speaker 6: for the agency. Dry says she was locked out of

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Speaker 6: her computer without notice.

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Speaker 2: Literally, you put an email fixed to yourself, you put

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Speaker 2: it download any of your work, and you couldn't.

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Speaker 13: Communicate people like me who had access to BOKES and

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Speaker 13: even get this email to not come in.

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Speaker 2: I heard about that through the grape vine.

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Speaker 6: Democrats are asking if Musk has the power to shut

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Speaker 6: an entire agency. Whye House Press Secretary Caroline Levitt responded.

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Speaker 2: I can confirm he's a special government and employee. I

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Speaker 2: can also confirm that he has abided by all applicable

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Speaker 2: federal laws.

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Speaker 6: It comes as news that DOGE now has access to

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Speaker 6: the Treasury Department's payment system. Secretary of State Marco Rubio,

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Speaker 6: visiting l Salvador, announced an offer from the country's president

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Speaker 6: to accept deportees from the US and jail violent American

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Speaker 6: criminal citizens now in prison in the US as well.

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Speaker 14: He has agreed to except for deportation any illegal alien

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Speaker 14: in the United States who is a criminal from any nationality,

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Speaker 14: be they MS thirteen or train that Agua, and house

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Speaker 14: them in his jails.

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Speaker 6: A US official said that Rubio spoke that the Trump

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Speaker 6: administration had no plans to try to deport American citizens,

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Speaker 6: but that the offer was significant. The US government cannot

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Speaker 6: deport American citizens. Finally, the son of billionaire New England

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Speaker 6: Patriots owner Robert Craft plans to run for mayor of Boston.

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Speaker 6: Josh Craft will formally announce his campaign later this morning.

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Speaker 6: Josh Craft will run against first term mayor Michelle wou.

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Speaker 6: He says his number one priority is to lower the

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Speaker 6: cost of housing. Global news twenty four hours a day,

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Speaker 6: whenever you want it with Bloomberg News Now. Why Michael

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Speaker 6: Barr and this is Bloomberg Karen.

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Speaker 2: All right, Michael Barr, thank you time now for the

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Speaker 2: Bloomberg Sports update, brought to you by tri State out

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Speaker 2: Here's John stash Hour, John good morning, Good one up.

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Speaker 13: The Garden Knicks and the much improved Houston Rockets, who

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Speaker 13: threw three quarters at an eleven point lead. So in

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Speaker 13: the fourth, the Knicks look to their captain Brunson against

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Speaker 13: Thompson gets inside La off the hotness, the Brunson barrage

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Speaker 13: continuers shot.

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Speaker 11: Make it here on the fourth quarter.

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Speaker 13: Bronson has been the catalyst.

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Speaker 11: He's made all of bacousa a minute remaining, Brunson at

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Speaker 11: three damn tail.

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Speaker 13: Brunsen does it again. Tied up Rockets a MSJ. Knicks

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Speaker 13: won one twenty four to one eighteen. He scored forty

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Speaker 13: six points in the fourth and seven seen of those

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Speaker 13: by Brunson, who finished with forty two. He's third and

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Speaker 13: Knicks history with now eighteen games of forty or more.

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Speaker 13: He's only in this third season with the team. Mix

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Speaker 13: wat tonight in Toronto. Rockets go to Brooklyn, top two

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Speaker 13: in the East, meet tonight Boston at Cleveland. The Cavs

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Speaker 13: are forty and nine and West leading Oklahoma City with

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Speaker 13: a blowout went on Milwaukee. The Thunder now thirty nine

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Speaker 13: and nine at the Guard Tonight it's red hot Saint

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Speaker 13: John's riding in an eight game winning streak, looking to

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Speaker 13: remain unb at home and taking on Marquette, top two

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Speaker 13: teams in the Big East. Baseball has fired umpire Pat Hoberg,

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Speaker 13: who didn't work any games in twenty twenty four due

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Speaker 13: to an investigation that determined Hoburg shared a betting account

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Speaker 13: with a friend who bet on MLB games. Holburg said

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Speaker 13: he's embarrassed, but that he never bet on baseball himself.

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Speaker 13: He can apply for reinstatement next year. Chats and Eagles

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Speaker 13: in New Orleans, so some familiar faces for Super Bowl

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Speaker 13: opening night for Patrick Mahomes and Travis Kelseats their fifth

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Speaker 13: Super Bowl in six years, but it's the first for

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Speaker 13: sa Kuon Barkley, who on Sunday will try to win

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Speaker 13: a Super Bowl on his twenty eight birthday. John Stasheware

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Speaker 13: Bloomberg Sports Karen.

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Speaker 1: Nathan Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager, and the opening shots have

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Speaker 3: been fired in a new trade war between the US

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Speaker 3: and China. After President Donald Trump slapped ten percent duties

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Speaker 3: on Chinese products just after midnight East Coast time. Beijing

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Speaker 3: has responded with levies of its own on US energy

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Speaker 3: and agriculture equipment, blacklist designations for a couple of American companies,

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Speaker 3: and an anti trust investigation into Google. For the very latest,

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Speaker 3: we're joined by Bloomberg News Global Trade editor Brendan Murray. Brendan,

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Speaker 3: good morning. What to make of this response from China?

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Speaker 3: Is it a full tit for tat against the ten

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Speaker 3: percent tariffs?

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Speaker 11: Good morning.

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Speaker 15: I think the way it was characterized is right. These

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Speaker 15: are opening salvos from both sides. A ten percent tariff

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Speaker 15: on Chinese imports into the US is not really going

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Speaker 15: to change the dial all that much in terms of

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Speaker 15: trade flows between the two countries. China's retaliation is viewed

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Speaker 15: as fairly measured. They launched an anti trust investigation into Google,

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Speaker 15: but Google search services have been unavailable there, so you know,

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Speaker 15: they kind of sort of a paper tiger response. But basically,

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Speaker 15: this is the dance that the that the two the

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Speaker 15: world's two largest economies, will do that will bring them

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Speaker 15: to the table. President Trump will meet with President She

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Speaker 15: undoubtedly in the weeks ahead, and they'll start working out

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Speaker 15: a deal. If they can't, then then we will see

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Speaker 15: a trade war. And you know, to ten percent tariffs

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Speaker 15: that that Trump has put on China could become sixty percent.

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Speaker 15: And an investigation, you know, this one that we saw

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Speaker 15: into into Google, you know, could could turn it turn

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Speaker 15: its crosshairs to a company like Tesla, which you know

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Speaker 15: has a big operation in China and obviously would make

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Speaker 15: much more of an impact in the White House than

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Speaker 15: this than this other investigation has.

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Speaker 3: Given what's being described as a muted response from China.

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Speaker 3: Could it have afforded to do more given the struggles

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Speaker 3: that we've seen of in the Chinese economy.

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Speaker 15: Not really, I mean this is this is this is

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Speaker 15: Beijing's way of saying, we're ready to deal with you,

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Speaker 15: and let's let's get to the table and start and

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Speaker 15: start negotiating that if they wanted to do you know,

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Speaker 15: much harm to the to the US economy, they would

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Speaker 15: have to come with a with a whole lot more

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Speaker 15: than what they did. That's not in their interest right now.

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Speaker 15: As as you suggested, their economy is is on is

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Speaker 15: on the back foot, and they need to. They need

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Speaker 15: to make sure that they maintain some sort of reasonable

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Speaker 15: relationship with the US economy right now rather than cut

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Speaker 15: it off completely.

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Speaker 3: Do we have a timeline on when Presidents Trump and

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Speaker 3: She could speak and what would the contours of a

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Speaker 3: deal between these two countries potentially look like.

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Speaker 15: Well, if if you take the previous deal, we don't

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Speaker 15: really know the timetable. Uh. The President Trump is supposed

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Speaker 15: to meet with a number of leaders in the in

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Speaker 15: weeks in the weeks ahead, uh, and President She will

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Speaker 15: certainly be one of those. The contours of any particular deal,

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Speaker 15: you'd have to look back to the blueprint, a blueprint

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Speaker 15: that we saw five years ago when Trump announced his

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Speaker 15: quote unquote Phase one agreement they could go back is

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Speaker 15: something like that where China agrees to, you know, purchase,

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Speaker 15: you know a certain amount of American exports, agriculture, energy,

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Speaker 15: those kinds of things. But you know, the President Trump

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Speaker 15: is transactional. He's going to want something in return for

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Speaker 15: keeping tariffs off of Chinese imports.

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Speaker 3: And speaking of that transactionality, in our last minute, Canada

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Speaker 3: and Mexico, we're supposed to get twenty five percent tariffs

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Speaker 3: after midnight. Now that's been delayed another month. What's that

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Speaker 3: say about the seriousness of the tariff threat from the President.

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Speaker 15: Well, it says that he's got, you know, he's got

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Speaker 15: he's playing his poker hand pretty carefully when it comes

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Speaker 15: to those two countries there were those are obviously more

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Speaker 15: and more allies than China would be that and we're

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Speaker 15: connected the US is through through you know, a free

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Speaker 15: trade agreement across the North America. So it says that

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Speaker 15: he walks away with you know, a pledge to for

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Speaker 15: the for both Canada and Mexico to titan border security,

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Speaker 15: to migration and the flow of drugs. But it essentially

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Speaker 15: kicks the can down the road. In thirty days from now,

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Speaker 15: we're going to be having a similar conversation about whether

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Speaker 15: those threats of tariffs are more of a bluff or

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Speaker 15: they're for real.

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