WEBVTT - Greenland Talks Loom Over Davos; Bessent Says Fed Pick Could Come as Soon as Next Week

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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 from the World Economic

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<v Speaker 3>Forum in Davos, Switzerland. President Trump's push to take control

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<v Speaker 3>of Greenland is already the talk of the annual gathering

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<v Speaker 3>of global elites. The president says he has agreed to

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<v Speaker 3>a meeting on the issue after speaking with NATO's Secretary

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<v Speaker 3>General Mark Rota.

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<v Speaker 4>We'll be talking about it with the various people. We've

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<v Speaker 4>had tremendous success, and we've you know, I've done more

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<v Speaker 4>for NATO than anybody else.

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<v Speaker 3>President spoke to reporters in Miami. Later, he posted a

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<v Speaker 3>screenshot on social media of a text message he received

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<v Speaker 3>says he received from the NATO's Secretary General, saying that

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<v Speaker 3>he was committed to finding a way forward on Greenland. Earlier,

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<v Speaker 3>President Trump linked his claims to the Danish territory to

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<v Speaker 3>not receiving the Nobel Peace Prize in a letter to

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<v Speaker 3>Norway's Prime minister, than Aegian government does not decide the

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<v Speaker 3>Nobel winner well.

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<v Speaker 2>Nathan Treasury Secretary Scan Besson, deserting European allies to remain

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<v Speaker 2>calm over President Trump's Greenland claims. He spoke this morning

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<v Speaker 2>from the sidelines of the World Economic Forum.

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<v Speaker 5>Toot back the relaxed I am confident that the leaders

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<v Speaker 5>will not escalate and that this will work out in

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<v Speaker 5>a manner that ends up in a very good place

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<v Speaker 5>for all, for national security, for the US and for Europe.

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<v Speaker 2>Secretary Bessond is comparing the uproar to the political blowback

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<v Speaker 2>over President Trump's tariff announcements last April. French President Emmanuel

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<v Speaker 2>mccron has talked about unleashing the European Union's toughest trade

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<v Speaker 2>tools in response to the Greenland threats, though German Chancellor

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<v Speaker 2>Frederick Mertz has batted that down. Secretary Bessend also says

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<v Speaker 2>the idea of Europe selling US treasuries and response to

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<v Speaker 2>the President's Greenland claims is a false narrative.

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<v Speaker 3>Along with the Greenland push, Karen, President Trump is also

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<v Speaker 3>bringing his affordable agenda to Davos. He has pitched his

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<v Speaker 3>populist economic platform in battleground states in recent weeks. Now

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<v Speaker 3>he is targeting a different audience. The global elite gathered

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<v Speaker 3>in the Swiss Ski village. President Trump is vound to

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<v Speaker 3>unveil details of a sprawling affordability pitch, which is landed

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<v Speaker 3>Wall Street banks, tech companies, and homebuilders in his crosshairs.

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<v Speaker 3>Plans to do it during his speech tomorrow at the

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<v Speaker 3>World Economic Forum, Nathan.

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<v Speaker 2>The Trump Davos speech comes as a new study shows

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<v Speaker 2>his tariffs are paid almost entirely by Americans. We get

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<v Speaker 2>more this morning from Bloomberg's John Tucker and John Good morning.

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<v Speaker 6>And good morning, Karen. You know this study finds that

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<v Speaker 6>only about four percent of the tariff burden is shouldered

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<v Speaker 6>by foreign firms, with a near complete pass through of

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<v Speaker 6>ninety six percent to US buyers that pay the levies,

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<v Speaker 6>and then most either absorb them or raise selling prices.

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<v Speaker 6>That's the Keel Institute for World Economy says. The two

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<v Speaker 6>hundred billion dollars surge and customs revenue represents two hundred

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<v Speaker 6>billion diracted from American businesses and households, so that the

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<v Speaker 6>terra functions not as a tax on foreign producers but

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<v Speaker 6>as a consumption tax in Americans. Based on shipment data,

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<v Speaker 6>this covers twenty five million transactions worth about four trillion dollars.

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<v Speaker 6>The Queue study runs completely counter to the Trump administration's argument,

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<v Speaker 6>but the trading partners pay tariffs in New York. Come

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<v Speaker 6>John Tucker, Bloomberg Radio.

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<v Speaker 3>All right, John, thank you. President Trump is confirming he's

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<v Speaker 3>invited Russian President Vladimir Putin to join his proposed Board

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<v Speaker 3>of Peace for Gaza. Here's the President speaking again to

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<v Speaker 3>reporters in Florida and Brendan.

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<v Speaker 4>Yes, he's one of the people. These are world leaders

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<v Speaker 4>and the answers yes.

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<v Speaker 3>And this morning China confirmed it also received an invitation

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<v Speaker 3>to join the board, though there's no word whether it

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<v Speaker 3>will accept. One world leader who is rejecting the invitation

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<v Speaker 3>is Emmanuel Macro, and President Trump is taking a swipe

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<v Speaker 3>at the French president.

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<v Speaker 4>Well, nobody wats him because he's going to be out

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<v Speaker 4>of office versu. So you know, that's all right. What

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<v Speaker 4>I'll do is, if they feel like Costo, I'll put

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<v Speaker 4>a two hundred percent twer for his wines and champagnes

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<v Speaker 4>and he'll join. But he doesn't have to join.

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<v Speaker 3>President Trump also published a text message he says came

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<v Speaker 3>from mcclom in which he invited the President to have

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<v Speaker 3>dinner in Paris on Thursday. A draft charter for the

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<v Speaker 3>proposed Board of Peace seen by Bloomberg, says that President

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<v Speaker 3>Trump would serve as its inaugural chairman and have authority

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<v Speaker 3>over membership decisions. The Trump administration is asking countries that

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<v Speaker 3>want a permanent spot on the body to contribute at

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<v Speaker 3>least a billion dollars Heythan.

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<v Speaker 2>Treasury Secretary Scott Besson says President Trump is coming close

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<v Speaker 2>to announcing his pick for the next Federal Reserved chair.

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<v Speaker 2>Besson spoke earlier today in DeVos.

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<v Speaker 5>We have four fantastic candidates. It will be up to

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<v Speaker 5>the President and I would imagine that he will have

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<v Speaker 5>an announcement, maybe as early as next week.

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<v Speaker 2>Treasury Secretary Scott Besson, speaking at Davos Black Rocks, Rick Reader,

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<v Speaker 2>National Economic Council Director Kevin Hassett, Fed Governor Waller and

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<v Speaker 2>former Governor Kevin worsh are the final contenders to replace

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<v Speaker 2>j Powell. A s.

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<v Speaker 3>Fed shair Well This morning, Karen Geopolitical concerns are taking

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<v Speaker 3>their toll on stocks as we kick off the holiday

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<v Speaker 3>shortened trading week. In Nasdaq, futures are hardest hit, down

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<v Speaker 3>two point two percent. A swamp in Japanese bonds is deepening.

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<v Speaker 3>It's sending yields there to records. Investors are giving a

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<v Speaker 3>thumbs down to Prime Minister sna Atakaichi's election pitch to

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<v Speaker 3>cut taxes on food.

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<v Speaker 2>We do have a deal in the drug industry this morning.

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<v Speaker 2>Nathan GSK has agreed to buy San Francisco based biotech

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<v Speaker 2>company Wrapped Therapeutics, in a deal value to two point

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<v Speaker 2>two billion dollars. Wrapped, which develops treatments for patients with

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<v Speaker 2>inflammatory and immunological diseases, is up sixty three and a

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<v Speaker 2>half percent in early trading.

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<v Speaker 3>And as far as company earnings go, Karen, we get

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<v Speaker 3>more of those this afternoon from Netflix leading the way

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<v Speaker 3>those results come as the streaming giant face is a

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<v Speaker 3>fierce takeover battle for Warner Bros. Discovery get the wrong

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<v Speaker 3>Ganathan covers Netflix for Bloomberg Intelligence.

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<v Speaker 7>I hope the focus really turns. And this is a distraction,

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<v Speaker 7>you know, from this whole drama that we've seen. But

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<v Speaker 7>fundamentals wise, you're absolutely right. The company has never been

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<v Speaker 7>in a stronger situation. We think they will absolutely deliver

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<v Speaker 7>on their revenue growth expectations of about seventeen percent, strong

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<v Speaker 7>operating margin, strong free cash flow. They're expecting about nine

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<v Speaker 7>billion dollars for the full year.

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<v Speaker 3>Let's keep the wrong, Ganathan of Bloomberg Intelligence. Netflix shares

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<v Speaker 3>are down forty five percent from their all time high.

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<v Speaker 2>And finally, Nathan, it might cost you a little less

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<v Speaker 2>money if you're in the market for an engagement ring.

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<v Speaker 2>Bloomberg News has learned to beers is cutting its official

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<v Speaker 2>diamond prices for the first time in more than a year.

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<v Speaker 2>The diamond industry has been beset by a crisis amid

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<v Speaker 2>a pullback in Chinese luxury spending and the rising popularity

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<v Speaker 2>of synthetic stones. Time now for look at some of

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<v Speaker 2>the other stories making news in New York and around

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<v Speaker 2>the world, and for that we're joined by Bloomberg's Michael Barr.

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<v Speaker 8>Michael, good morning, Good morning Karen. It is cold this morning.

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<v Speaker 8>Bloomberg Meeting relogist Craig Allen has the latest.

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<v Speaker 9>It's an open door to the Arctic and the bitter

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<v Speaker 9>cold will come in births right through the next five

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<v Speaker 9>to seven days, each outbreak getting colder, and the daytime

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<v Speaker 9>highs in the major I ninety five cities from New

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<v Speaker 9>England to New York City to DC only climbing into

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<v Speaker 9>the twenties, nights in the teens, and wind chills below

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<v Speaker 9>zero in some suburbs.

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<v Speaker 8>Bloomberg Meeting relogist Craig Allen it should remain chilly through

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<v Speaker 8>the rest of the week across the Midwest and Northeast.

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<v Speaker 8>Snow crippled traveled nationwide over the long MLK weekend. In Michigan,

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<v Speaker 8>more than one hundred vehicles piled up on an interstate

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<v Speaker 8>outside Grand Rapids Monday. Captain Jake Sparks of the Ottawa

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<v Speaker 8>County Sheriff's Office says there are some injuries.

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<v Speaker 10>I'm told that most of them are minor injuries at

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<v Speaker 10>this time, so I don't believe that any of them

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<v Speaker 10>are terribly serious or life threatening. I know that there

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<v Speaker 10>have been fatalities reported yet, so that's one positive.

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<v Speaker 8>Captain Jake Sparks is advising people to stay home until

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<v Speaker 8>the cleanup is complete. It's a big day in New Jersey.

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<v Speaker 8>Mikey Cheryl is set to be sworn in today as

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<v Speaker 8>the state's first female Democratic governor. Cheryl will take over

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<v Speaker 8>for Governor Phil Murphy. The former Navy pilot and congresswoman, says,

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<v Speaker 8>we are going to very quickly show that we have

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<v Speaker 8>a new agenda here in New Jersey. A Massachusetts police

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<v Speaker 8>station appears to be the target of an intentional attack.

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<v Speaker 8>It happened in Shrewsbury, about forty five minutes west Boston yesterday.

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<v Speaker 8>Shrewsbury Police Chief Kevin Anderson described what happened after the

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<v Speaker 8>driver of a twenty twenty two black bmwsuv used it

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<v Speaker 8>as a battering ram to break through the front doors.

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<v Speaker 11>The vehicle actually went through the front door and actually

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<v Speaker 11>went into dispatch, So went through the lobby into dispatch,

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<v Speaker 11>and there were three dispatchers working at the time, and

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<v Speaker 11>obviously they're very shuckn up.

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<v Speaker 8>Chief Anderson. Global News twenty four hours a day and

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<v Speaker 8>whenever you want it with the Bloomberg News. Now, I'm

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<v Speaker 8>Michael Barr, and this is Bloomberg Karen.

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<v Speaker 12>Thanks Michael.

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<v Speaker 2>Time now for our Bloomberg Sports update, and for that

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<v Speaker 2>we bring in John Stashauer.

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<v Speaker 13>Thanks Karen. The Indiana Hoosiers captain amazing perfect sixteen and

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<v Speaker 13>oh season, winning college Football's National Championship over Miami in

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<v Speaker 13>Miami twenty seven to twenty one. The Hoosier has never

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<v Speaker 13>trailed NFL coaching hirings and firings. Jeff Hafley, the green

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<v Speaker 13>Bay defensive coordinator, is the new head coach of the

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<v Speaker 13>Miami Dolphins. Robert Salo, the defensive cornator of the forty

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<v Speaker 13>nine ers, has a deal to become the new coach

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<v Speaker 13>of the Tennessee Titans. The Buffalo Bills now need a

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<v Speaker 13>new coach, surprising, and they fired Sean McDermott. That's your

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<v Speaker 13>Bloomberg Sports update.

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<v Speaker 2>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 2>after this.

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

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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

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<v Speaker 8>Good morning.

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<v Speaker 3>I'm Nathan Hager. Between his desire to take control of

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<v Speaker 3>Greenland and is pushed to form a new board for

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<v Speaker 3>peace in Gaza and potentially the world. President Trump is

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<v Speaker 3>promising this year's World Economic Forum will be, as he

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<v Speaker 3>put it, a very interesting DeVos.

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<v Speaker 4>I think I have a lot of messages for Davos,

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<v Speaker 4>but the primary message is how well the United States

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<v Speaker 4>is doing.

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<v Speaker 3>I was President Trump in Miami before he heads to

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<v Speaker 3>the Swiss Alps. Later today. Bloomberg Surveillance host Lisa Bromwitz

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<v Speaker 3>is already there anchoring our coverage of the World Economic Forum,

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<v Speaker 3>and very pleased to say that Lisa is here with

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<v Speaker 3>us now. Great to have you on daybreak, Lisa head

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<v Speaker 3>of the World Economic Forum. The theme this year a

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<v Speaker 3>spirit of dialogue? What is the spirit of dialogue with

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<v Speaker 3>all these geopolitical risks preceding the forum? Good morning, Good.

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<v Speaker 12>Morning, Nathan, and thank you for having me. I want

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<v Speaker 12>to just first say that the spirit of Dialogue is

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<v Speaker 12>quite an ironic name considering the fact that this is

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<v Speaker 12>a DeVos about fissures in the global order, rearranging in

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<v Speaker 12>some of the alliances, and that really is one of

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<v Speaker 12>the hot topics. Greenland obviously is sucking a lot of

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<v Speaker 12>oxygen out of the room, and you have some four

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<v Speaker 12>hundred world leaders here, a record getting together, and Donald

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<v Speaker 12>Trump is very much on the forefront of their mind.

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<v Speaker 12>So yes, perhaps President Trump will talk about housing affordability

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<v Speaker 12>and the strength of the United States, but really people

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<v Speaker 12>want to understand what the commitment is to NATO, how

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<v Speaker 12>much the US is serious about taking Greenland, and what

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<v Speaker 12>exactly it's willing to do to get there, and just

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<v Speaker 12>how much of an obstacle the your region is planning

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<v Speaker 12>to be as well as some of the other allies

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<v Speaker 12>like Canada as well, so very much focus in geopolitics

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<v Speaker 12>with interesting Nathan. I'll just point this out. If you

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<v Speaker 12>talk to CEOs, they will talk about optimism, they will

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<v Speaker 12>talk about artificial intelligence. We'll talk about a consumer that's strong.

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<v Speaker 12>They will avoid at all costs weighing in on any

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<v Speaker 12>of these bigger geopolitical issues other than just saying there

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<v Speaker 12>could be volatility ahead.

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<v Speaker 3>Well, can they avoid these geopolitical issues when they are

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<v Speaker 3>already seeming to overshadow the events that are going to

0:12:05.880 --> 0:12:07.559
<v Speaker 3>be coming in the next few days.

0:12:08.000 --> 0:12:10.320
<v Speaker 12>They have found very creative ways to do so. I mean,

0:12:10.360 --> 0:12:12.880
<v Speaker 12>they could talk about resilience. They can talk about how

0:12:12.920 --> 0:12:15.959
<v Speaker 12>they have managed through either the supply chain disruptions of

0:12:16.040 --> 0:12:21.000
<v Speaker 12>the pandemic or even just the post Liberation Day tariffs

0:12:21.000 --> 0:12:24.320
<v Speaker 12>and how they were passed through or not. People are

0:12:24.559 --> 0:12:28.040
<v Speaker 12>clearly more concerned in private conversations. Let's be honest. There

0:12:28.160 --> 0:12:31.120
<v Speaker 12>is clearly a sense that the rules of the road

0:12:31.160 --> 0:12:34.120
<v Speaker 12>are shifting, and it's unclear how permanent some of these

0:12:34.200 --> 0:12:36.319
<v Speaker 12>rules are. I'll give you one anecdote. I was speaking

0:12:36.360 --> 0:12:39.240
<v Speaker 12>to a leader of a business yesterday who is saying

0:12:39.760 --> 0:12:41.880
<v Speaker 12>for us, we just want to know what the rules

0:12:41.920 --> 0:12:44.240
<v Speaker 12>are and we want them to be consistent in different

0:12:44.280 --> 0:12:47.080
<v Speaker 12>regions so that we know how to plan, because if

0:12:47.080 --> 0:12:50.760
<v Speaker 12>they're shifting around at this speed, adapting is very difficult.

0:12:50.840 --> 0:12:53.720
<v Speaker 12>So that's what they'll say privately. Publicly they'll just say

0:12:53.720 --> 0:12:55.839
<v Speaker 12>we can't know what we don't know, but right now

0:12:56.160 --> 0:12:58.400
<v Speaker 12>on good footing and et cetera, et cetera. So that's

0:12:58.480 --> 0:12:59.880
<v Speaker 12>kind of how people are navigating this.

0:13:00.200 --> 0:13:03.000
<v Speaker 3>No, Well, publicly, we have already heard from Treasury Secretary

0:13:03.040 --> 0:13:06.720
<v Speaker 3>Scott Besset sort of appealing for calm from allies, comparing

0:13:06.760 --> 0:13:09.280
<v Speaker 3>it to the sort of the uproar of before or

0:13:09.320 --> 0:13:12.480
<v Speaker 3>after the tariff announcement back in April. How is the

0:13:12.720 --> 0:13:15.880
<v Speaker 3>Treasury Secretary's message being received and how could that color

0:13:15.920 --> 0:13:17.920
<v Speaker 3>what we hear from the president later on this week.

0:13:18.760 --> 0:13:21.320
<v Speaker 12>Well, I think that a lot of people have heard

0:13:21.480 --> 0:13:23.679
<v Speaker 12>this type of message before. It was also interesting that

0:13:23.920 --> 0:13:27.000
<v Speaker 12>treasure secretaries got best and talked about how any kind

0:13:27.040 --> 0:13:30.679
<v Speaker 12>of sales of treasury seems preposterous in the wake of

0:13:30.920 --> 0:13:33.520
<v Speaker 12>some of these fears, and this idea that you saw

0:13:33.559 --> 0:13:37.480
<v Speaker 12>a similar shift after Liberation Day last to April that

0:13:37.679 --> 0:13:40.559
<v Speaker 12>said there clearly is a sense. I was just speaking

0:13:40.559 --> 0:13:43.200
<v Speaker 12>to the Foreign Minister of Canada a bit Togo earlier

0:13:43.200 --> 0:13:45.760
<v Speaker 12>this morning, and she was saying, look, the world order

0:13:45.800 --> 0:13:48.600
<v Speaker 12>has changed. It is changing. And this comes after Canada

0:13:48.600 --> 0:13:51.120
<v Speaker 12>I just went to China to feel a trade deal

0:13:51.760 --> 0:13:54.800
<v Speaker 12>with that nation. So there is a feeling that trade

0:13:54.840 --> 0:13:58.880
<v Speaker 12>alliances are shifting. Alliances in general are more in question.

0:13:59.360 --> 0:14:02.560
<v Speaker 12>There is a sense that there are certain players that

0:14:02.600 --> 0:14:04.600
<v Speaker 12>are a bit hamstrung, right they don't have an option

0:14:04.800 --> 0:14:07.400
<v Speaker 12>other than to work things out with the United States

0:14:07.400 --> 0:14:10.720
<v Speaker 12>Canada among those, considering the fact that we're neighbors. So

0:14:10.960 --> 0:14:13.200
<v Speaker 12>these are some of the issues that are on the table.

0:14:13.240 --> 0:14:15.960
<v Speaker 12>But clearly there is a sense of unease that is

0:14:16.040 --> 0:14:18.920
<v Speaker 12>permeeting the entire event. And this is a big event,

0:14:19.040 --> 0:14:21.720
<v Speaker 12>and it is more heavily fortified than I've ever seen

0:14:21.760 --> 0:14:24.160
<v Speaker 12>it before, with lines that look like they're going into

0:14:24.200 --> 0:14:27.840
<v Speaker 12>an airport. So very much it is present in people's times.

0:14:28.560 --> 0:14:32.360
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