WEBVTT - China Hits Back Against Trump’s Tariffs; Netanyahu-Trump Meeting

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we begin with the latest developments in a trade

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<v Speaker 3>war now between the US and China. At midnight, the

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<v Speaker 3>Trump administration imposed a ten percent tariff on all Chinese goods.

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

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<v Speaker 3>with the latest. John, what is the response?

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<v Speaker 4>And Nathan? Beijing has imposed a fifteen percent tax on

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<v Speaker 4>some US energy imports and a ten percent fee in

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<v Speaker 4>American oil and agricultural equipment. It also put companies like

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<v Speaker 4>Calvin Klein owner PVH Corporation, and Illumina on a blacklist.

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<v Speaker 4>China also said it's going to investigate Google for alleged

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<v Speaker 4>to anti trust violations by targeting a handful of American

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<v Speaker 4>companies Nathan and Karen and slapping levies on some US goods.

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<v Speaker 4>This move does seem designed to avoid escalating tensions. The

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<v Speaker 4>tariffs are set to kick in February tenth, and this

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<v Speaker 4>potentially leaves room for negotiation and President Trump also did

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<v Speaker 4>signal a desire to speak with the Chinese leader Jijingping

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<v Speaker 4>before the tariffs take effect, so the reaction in the

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<v Speaker 4>market seems to be muted at this point. The Chinese currency,

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<v Speaker 4>the offshore you on little change this morning, in fact,

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<v Speaker 4>is up three tenths of per percent right now. And

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<v Speaker 4>then the Hangsang China Enterprises Index, this is of Chinese

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<v Speaker 4>stocks listed in Hong Kong that has rebounded. Initially, it

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<v Speaker 4>dove at the news of the US tariffs and the

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<v Speaker 4>Chinese countermeasures, and right now, in fact, it is up

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<v Speaker 4>three and a half percent. In New yorkome John Tuncker Bloomberg.

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<v Speaker 2>Radio, All right, John, thank you. All tariffs on China

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<v Speaker 2>are moving ahead. America's neighbors are getting a reprieve. President

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<v Speaker 2>Trump says he's delaying twenty five percent tariffs on Canada

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<v Speaker 2>and Mexico for a month. Those are due to kick

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<v Speaker 2>in just after midnight this morning. Bloomberg's Derek to Clodes

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<v Speaker 2>says Canadian Prime Minister Justin Trudeau made a number of

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<v Speaker 2>concessions on border enforcement.

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<v Speaker 5>Canada will appoint a fentanyl czar to monitor and crack

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<v Speaker 5>down on the trade of that drug, list the Mexican

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<v Speaker 5>cartels as terrorists, and ensure twenty four to seven eyes

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<v Speaker 5>on the border, which is part of that surveillance, which

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<v Speaker 5>will include drones and that sort of thing.

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<v Speaker 2>Bloomberg's direct to Clode reports. Canada is also going ahead

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<v Speaker 2>with a nine hundred million dollar planet announced in December

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<v Speaker 2>to add more resources to the border security, including helicopters.

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<v Speaker 6>Thank Karin.

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<v Speaker 3>Mexico is also getting a thirty day delay on tariffs.

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<v Speaker 3>President Trump says he's gotten a similar border security agreement

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<v Speaker 3>from President Claudia Shanbaum.

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<v Speaker 7>They've agreed to put in ten thousand soldiers permanently like

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<v Speaker 7>forever ten thousand soldiers at their side of the border

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<v Speaker 7>and stop fentanyl and illegal aliens from coming into our country.

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<v Speaker 3>The President Trump's deal with Mexico similar to one from

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<v Speaker 3>the Biden administration. Mexico also agreed to send ten thousand

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<v Speaker 3>troops to its own southern border in twenty twenty one one.

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<v Speaker 3>President Trump says the US will negotiate now with both

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<v Speaker 3>Mexico and Canada over the next thirty days on a

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<v Speaker 3>more permanent economic deal.

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<v Speaker 2>Well, Nathan, We now turned to the latest developments in

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<v Speaker 2>the War overseas. President Trump wants an agreement with Ukraine

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<v Speaker 2>to access its critical mineral resources in exchange for US

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<v Speaker 2>aid and its defense against Russia.

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<v Speaker 8>We're telling Ukraine they have very valuable rare earth. We

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<v Speaker 8>want what we put up to go in terms of

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<v Speaker 8>a guarantee. We want a guarantee we want. We're handing

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

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<v Speaker 8>not keeping up with US.

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<v Speaker 2>Ukraine has significant reserves of uranium, titanium, lithium, and graphied

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<v Speaker 2>which could be worth trillions of dollars, and President Vladimir

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<v Speaker 2>Zelenski offered Western allies access to these resources as part

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<v Speaker 2>of his victory plan last year.

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<v Speaker 3>Well, meanwhile, Karen, President Trump is going to meet later

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<v Speaker 3>today with Israeli Prime Minister Benjamin Natanyahu in Washington. Bloomberg

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<v Speaker 3>Zamy Morris has a preview from the nation's capital.

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<v Speaker 9>Israeli Prime Minister Benjamin Nettanna, who says being the first

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<v Speaker 9>world leader to visit the White House and meet with

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<v Speaker 9>the President since his inauguration sends a strong signal.

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<v Speaker 6>I think it's a testimony to the strength of the

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<v Speaker 6>Israeli American alliance.

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<v Speaker 9>The meeting comes as US and Arab mediators begin brokering

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<v Speaker 9>the next phase of a ceasefire agreement. Nataannahuo plans to

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<v Speaker 9>discuss with President Trump critical issues facing Israel and the region,

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<v Speaker 9>including victory over Hamas, achieving the release of the remaining

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<v Speaker 9>hostages in Gaza, and dealing with the Iranian access Amy

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<v Speaker 9>Morris Bloomberg Radio, All.

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<v Speaker 2>Right, Amy, thank you. By the President has signed an

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<v Speaker 2>executive action to create a sovereign wealth fund for the

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<v Speaker 2>US Treasury Secretary Scott Bessend and Commerce Secretary nominee Howard

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<v Speaker 2>Lutnik will be spearheading the effort. Here's Bessend.

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<v Speaker 10>Within the next twelve months, we are going to monetize

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<v Speaker 10>the assets side of the US balance sheet for the

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<v Speaker 10>American people. Where are going to put the assets to work?

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

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<v Speaker 10>study best practices has done around the world.

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<v Speaker 2>And Treasury Secretary Scott Besson said the fund would be

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<v Speaker 2>created within the next twelve months and could be used

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<v Speaker 2>to facilitate the sale of TikTok.

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<v Speaker 3>Well, let's turn to markets now, Karen, as we watch

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<v Speaker 3>futures move lower once again this morning, this time on

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<v Speaker 3>the China US trade WARRIS and P futures are down

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<v Speaker 3>about two tenths of one percent. Stocks paired their losses

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<v Speaker 3>yesterday after the US agreed to delay tariffs on Canada

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<v Speaker 3>and Mexico. The SMP closed down three quarters of one percent,

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<v Speaker 3>after being nearly two percent lower earlier in the session.

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<v Speaker 2>Well one stock that's on the move this morning, Nathan

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<v Speaker 2>is Pallenteer. The shares are up more than eighteen percent.

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<v Speaker 2>The software company is out with the full year revenue

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<v Speaker 2>forecast that exceeded analyst estimates. Begin more with the Bloomberg's

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<v Speaker 2>Charlie Pellett.

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<v Speaker 11>CEO Alex Karp cites what he calls untamed organic growth

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<v Speaker 11>in demand for its artificial intelligence software. Derek John is

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<v Speaker 11>senior investment strategist at Crane Funds.

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<v Speaker 10>We see Patentier, host of Time Show, to become the

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<v Speaker 10>go to operating system for enterprises in the AGI world.

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<v Speaker 11>A reference to artificial general intelligence, best known for its

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<v Speaker 11>national security work and more recently its AI platform. Palenteer

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<v Speaker 11>stock searched three hundred and forty percent last year in

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<v Speaker 11>New York. Charlie Palette, Bloomberg Radio, Thanks Charlie.

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<v Speaker 3>Looking overseas, shares of UBS are down nearly six percent.

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<v Speaker 3>The bank beat earnings estimates, but concern persists over a

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<v Speaker 3>potentially substantial increase in capital requirements. In an interview with

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<v Speaker 3>Bloomberg CEO Sergio or Mighty Warren, markets may not fully

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<v Speaker 3>reflect the impact post by President Trump's tariffs.

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<v Speaker 12>I can see inflationary pressure coming out of tariff tariff war,

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<v Speaker 12>and that in turn would mean that central banks would

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<v Speaker 12>need to stop their easing path, potentially even reverse something

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<v Speaker 12>that is not priced in the market.

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<v Speaker 3>UBS CEO Sergio Ormudy also says the bank aims to

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<v Speaker 3>buy back up to three billion dollars of a its

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<v Speaker 3>own shares this.

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<v Speaker 2>Year and staying in Europe, Nathan shares a Diagio are

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<v Speaker 2>down about eight tens of a percent. The maker of

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<v Speaker 2>Johnny Walker, kennel I and Casamigos is scrapping its sales

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<v Speaker 2>target as it deals with sluggish growth and a possible

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<v Speaker 2>tariff battle in the US, its biggest market. About forty

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<v Speaker 2>five percent of Diagio's US sales are from products made

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<v Speaker 2>in Canada and Mexico. Time now for a look at

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<v Speaker 2>some of the other stories making news in New York

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<v Speaker 2>and around the world, and for that we're joined by

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<v Speaker 2>Bloomberg's Michael Maher.

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<v Speaker 6>Michael, good morning, Good morning, Karen, Democrats are upset about

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<v Speaker 6>the abrupt shutdown of the US Agency for International Development.

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<v Speaker 6>Republicans say they welcome to move. The independent federal agency

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<v Speaker 6>is approved and funded by Congress, but over the weekend

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<v Speaker 6>it was essentially shuttered by the Department of Government Efficiency

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<v Speaker 6>or DOGE, headed by billionaire Trump ally Elon Musk. Democratic

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<v Speaker 6>Senator Brian Chats of Hawaii called the move flatly illegal.

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<v Speaker 3>This is about, literally, do we uphold the rule of

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<v Speaker 3>law in the United States.

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<v Speaker 6>One of those employees was Christina Dry, a speech writer

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<v Speaker 6>for the agency. Dry says she was locked out of

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<v Speaker 6>her computer without notice.

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<v Speaker 2>Literally, you put an email fixed to yourself, you put

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<v Speaker 2>it download any of your work, and you couldn't.

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<v Speaker 13>Communicate people like me who had access to BOKES and

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<v Speaker 13>even get this email to not come in.

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<v Speaker 2>I heard about that through the grape vine.

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<v Speaker 6>Democrats are asking if Musk has the power to shut

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<v Speaker 6>an entire agency. Whye House Press Secretary Caroline Levitt responded.

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<v Speaker 2>I can confirm he's a special government and employee. I

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<v Speaker 2>can also confirm that he has abided by all applicable

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<v Speaker 2>federal laws.

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<v Speaker 6>It comes as news that DOGE now has access to

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

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<v Speaker 6>visiting l Salvador, announced an offer from the country's president

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<v Speaker 6>to accept deportees from the US and jail violent American

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<v Speaker 6>criminal citizens now in prison in the US as well.

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<v Speaker 14>He has agreed to except for deportation any illegal alien

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<v Speaker 14>in the United States who is a criminal from any nationality,

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<v Speaker 14>be they MS thirteen or train that Agua, and house

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<v Speaker 14>them in his jails.

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<v Speaker 6>A US official said that Rubio spoke that the Trump

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<v Speaker 6>administration had no plans to try to deport American citizens,

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<v Speaker 6>but that the offer was significant. The US government cannot

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<v Speaker 6>deport American citizens. Finally, the son of billionaire New England

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<v Speaker 6>Patriots owner Robert Craft plans to run for mayor of Boston.

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<v Speaker 6>Josh Craft will formally announce his campaign later this morning.

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<v Speaker 6>Josh Craft will run against first term mayor Michelle wou.

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<v Speaker 6>He says his number one priority is to lower the

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<v Speaker 6>cost of housing. Global news twenty four hours a day,

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<v Speaker 6>whenever you want it with Bloomberg News Now. Why Michael

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<v Speaker 6>Barr and this is Bloomberg Karen.

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<v Speaker 2>All right, Michael Barr, thank you time now for the

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<v Speaker 2>Bloomberg Sports update, brought to you by tri State out

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<v Speaker 2>Here's John stash Hour, John good morning, Good one up.

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<v Speaker 13>The Garden Knicks and the much improved Houston Rockets, who

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<v Speaker 13>threw three quarters at an eleven point lead. So in

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<v Speaker 13>the fourth, the Knicks look to their captain Brunson against

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<v Speaker 13>Thompson gets inside La off the hotness, the Brunson barrage

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<v Speaker 13>continuers shot.

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<v Speaker 11>Make it here on the fourth quarter.

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<v Speaker 13>Bronson has been the catalyst.

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<v Speaker 11>He's made all of bacousa a minute remaining, Brunson at

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<v Speaker 11>three damn tail.

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<v Speaker 13>Brunsen does it again. Tied up Rockets a MSJ. Knicks

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<v Speaker 13>won one twenty four to one eighteen. He scored forty

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<v Speaker 13>six points in the fourth and seven seen of those

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

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<v Speaker 13>Knicks history with now eighteen games of forty or more.

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<v Speaker 13>He's only in this third season with the team. Mix

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<v Speaker 13>wat tonight in Toronto. Rockets go to Brooklyn, top two

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<v Speaker 13>in the East, meet tonight Boston at Cleveland. The Cavs

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<v Speaker 13>are forty and nine and West leading Oklahoma City with

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<v Speaker 13>a blowout went on Milwaukee. The Thunder now thirty nine

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<v Speaker 13>and nine at the Guard Tonight it's red hot Saint

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<v Speaker 13>John's riding in an eight game winning streak, looking to

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<v Speaker 13>remain unb at home and taking on Marquette, top two

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<v Speaker 13>teams in the Big East. Baseball has fired umpire Pat Hoberg,

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<v Speaker 13>who didn't work any games in twenty twenty four due

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<v Speaker 13>to an investigation that determined Hoburg shared a betting account

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<v Speaker 13>with a friend who bet on MLB games. Holburg said

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<v Speaker 13>he's embarrassed, but that he never bet on baseball himself.

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<v Speaker 13>He can apply for reinstatement next year. Chats and Eagles

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<v Speaker 13>in New Orleans, so some familiar faces for Super Bowl

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<v Speaker 13>opening night for Patrick Mahomes and Travis Kelseats their fifth

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<v Speaker 13>Super Bowl in six years, but it's the first for

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<v Speaker 13>sa Kuon Barkley, who on Sunday will try to win

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<v Speaker 13>a Super Bowl on his twenty eight birthday. John Stasheware

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<v Speaker 13>Bloomberg Sports Karen.

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<v Speaker 1>Nathan Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

0:11:43.800 --> 0:11:46.640
<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager, and the opening shots have

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<v Speaker 3>been fired in a new trade war between the US

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<v Speaker 3>and China. After President Donald Trump slapped ten percent duties

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<v Speaker 3>on Chinese products just after midnight East Coast time. Beijing

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<v Speaker 3>has responded with levies of its own on US energy

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<v Speaker 3>and agriculture equipment, blacklist designations for a couple of American companies,

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<v Speaker 3>and an anti trust investigation into Google. For the very latest,

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

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<v Speaker 3>good morning. What to make of this response from China?

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<v Speaker 3>Is it a full tit for tat against the ten

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<v Speaker 3>percent tariffs?

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<v Speaker 11>Good morning.

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<v Speaker 15>I think the way it was characterized is right. These

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<v Speaker 15>are opening salvos from both sides. A ten percent tariff

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<v Speaker 15>on Chinese imports into the US is not really going

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<v Speaker 15>to change the dial all that much in terms of

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<v Speaker 15>trade flows between the two countries. China's retaliation is viewed

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<v Speaker 15>as fairly measured. They launched an anti trust investigation into Google,

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<v Speaker 15>but Google search services have been unavailable there, so you know,

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<v Speaker 15>they kind of sort of a paper tiger response. But basically,

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<v Speaker 15>this is the dance that the that the two the

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<v Speaker 15>world's two largest economies, will do that will bring them

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<v Speaker 15>to the table. President Trump will meet with President She

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<v Speaker 15>undoubtedly in the weeks ahead, and they'll start working out

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<v Speaker 15>a deal. If they can't, then then we will see

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<v Speaker 15>a trade war. And you know, to ten percent tariffs

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<v Speaker 15>that that Trump has put on China could become sixty percent.

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<v Speaker 15>And an investigation, you know, this one that we saw

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<v Speaker 15>into into Google, you know, could could turn it turn

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<v Speaker 15>its crosshairs to a company like Tesla, which you know

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<v Speaker 15>has a big operation in China and obviously would make

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<v Speaker 15>much more of an impact in the White House than

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<v Speaker 15>this than this other investigation has.

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<v Speaker 3>Given what's being described as a muted response from China.

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<v Speaker 3>Could it have afforded to do more given the struggles

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<v Speaker 3>that we've seen of in the Chinese economy.

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<v Speaker 15>Not really, I mean this is this is this is

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

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<v Speaker 15>and let's let's get to the table and start and

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<v Speaker 15>start negotiating that if they wanted to do you know,

0:14:03.880 --> 0:14:06.080
<v Speaker 15>much harm to the to the US economy, they would

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<v Speaker 15>have to come with a with a whole lot more

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

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<v Speaker 15>As as you suggested, their economy is is on is

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<v Speaker 15>on the back foot, and they need to. They need

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<v Speaker 15>to make sure that they maintain some sort of reasonable

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<v Speaker 15>relationship with the US economy right now rather than cut

0:14:24.440 --> 0:14:25.200
<v Speaker 15>it off completely.

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<v Speaker 3>Do we have a timeline on when Presidents Trump and

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<v Speaker 3>She could speak and what would the contours of a

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<v Speaker 3>deal between these two countries potentially look like.

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<v Speaker 15>Well, if if you take the previous deal, we don't

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<v Speaker 15>really know the timetable. Uh. The President Trump is supposed

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<v Speaker 15>to meet with a number of leaders in the in

0:14:44.480 --> 0:14:46.960
<v Speaker 15>weeks in the weeks ahead, uh, and President She will

0:14:47.000 --> 0:14:50.120
<v Speaker 15>certainly be one of those. The contours of any particular deal,

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<v Speaker 15>you'd have to look back to the blueprint, a blueprint

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<v Speaker 15>that we saw five years ago when Trump announced his

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<v Speaker 15>quote unquote Phase one agreement they could go back is

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<v Speaker 15>something like that where China agrees to, you know, purchase,

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<v Speaker 15>you know a certain amount of American exports, agriculture, energy,

0:15:08.360 --> 0:15:12.040
<v Speaker 15>those kinds of things. But you know, the President Trump

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<v Speaker 15>is transactional. He's going to want something in return for

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<v Speaker 15>keeping tariffs off of Chinese imports.

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<v Speaker 3>And speaking of that transactionality, in our last minute, Canada

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<v Speaker 3>and Mexico, we're supposed to get twenty five percent tariffs

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<v Speaker 3>after midnight. Now that's been delayed another month. What's that

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<v Speaker 3>say about the seriousness of the tariff threat from the President.

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<v Speaker 15>Well, it says that he's got, you know, he's got

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<v Speaker 15>he's playing his poker hand pretty carefully when it comes

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<v Speaker 15>to those two countries there were those are obviously more

0:15:42.840 --> 0:15:46.400
<v Speaker 15>and more allies than China would be that and we're

0:15:46.400 --> 0:15:50.560
<v Speaker 15>connected the US is through through you know, a free

0:15:50.560 --> 0:15:54.320
<v Speaker 15>trade agreement across the North America. So it says that

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<v Speaker 15>he walks away with you know, a pledge to for

0:15:58.040 --> 0:16:01.520
<v Speaker 15>the for both Canada and Mexico to titan border security,

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<v Speaker 15>to migration and the flow of drugs. But it essentially

0:16:06.800 --> 0:16:09.160
<v Speaker 15>kicks the can down the road. In thirty days from now,

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<v Speaker 15>we're going to be having a similar conversation about whether

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<v Speaker 15>those threats of tariffs are more of a bluff or

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<v Speaker 15>they're for real.

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