Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with the latest from the World Economic
Speaker 3: Forum in Davos, Switzerland. President Trump's push to take control
Speaker 3: of Greenland is already the talk of the annual gathering
Speaker 3: of global elites. The president says he has agreed to
Speaker 3: a meeting on the issue after speaking with NATO's Secretary
Speaker 3: General Mark Rota.
Speaker 4: We'll be talking about it with the various people. We've
Speaker 4: had tremendous success, and we've you know, I've done more
Speaker 4: for NATO than anybody else.
Speaker 3: President spoke to reporters in Miami. Later, he posted a
Speaker 3: screenshot on social media of a text message he received
Speaker 3: says he received from the NATO's Secretary General, saying that
Speaker 3: he was committed to finding a way forward on Greenland. Earlier,
Speaker 3: President Trump linked his claims to the Danish territory to
Speaker 3: not receiving the Nobel Peace Prize in a letter to
Speaker 3: Norway's Prime minister, than Aegian government does not decide the
Speaker 3: Nobel winner well.
Speaker 2: Nathan Treasury Secretary Scan Besson, deserting European allies to remain
Speaker 2: calm over President Trump's Greenland claims. He spoke this morning
Speaker 2: from the sidelines of the World Economic Forum.
Speaker 5: Toot back the relaxed I am confident that the leaders
Speaker 5: will not escalate and that this will work out in
Speaker 5: a manner that ends up in a very good place
Speaker 5: for all, for national security, for the US and for Europe.
Speaker 2: Secretary Bessond is comparing the uproar to the political blowback
Speaker 2: over President Trump's tariff announcements last April. French President Emmanuel
Speaker 2: mccron has talked about unleashing the European Union's toughest trade
Speaker 2: tools in response to the Greenland threats, though German Chancellor
Speaker 2: Frederick Mertz has batted that down. Secretary Bessend also says
Speaker 2: the idea of Europe selling US treasuries and response to
Speaker 2: the President's Greenland claims is a false narrative.
Speaker 3: Along with the Greenland push, Karen, President Trump is also
Speaker 3: bringing his affordable agenda to Davos. He has pitched his
Speaker 3: populist economic platform in battleground states in recent weeks. Now
Speaker 3: he is targeting a different audience. The global elite gathered
Speaker 3: in the Swiss Ski village. President Trump is vound to
Speaker 3: unveil details of a sprawling affordability pitch, which is landed
Speaker 3: Wall Street banks, tech companies, and homebuilders in his crosshairs.
Speaker 3: Plans to do it during his speech tomorrow at the
Speaker 3: World Economic Forum, Nathan.
Speaker 2: The Trump Davos speech comes as a new study shows
Speaker 2: his tariffs are paid almost entirely by Americans. We get
Speaker 2: more this morning from Bloomberg's John Tucker and John Good morning.
Speaker 6: And good morning, Karen. You know this study finds that
Speaker 6: only about four percent of the tariff burden is shouldered
Speaker 6: by foreign firms, with a near complete pass through of
Speaker 6: ninety six percent to US buyers that pay the levies,
Speaker 6: and then most either absorb them or raise selling prices.
Speaker 6: That's the Keel Institute for World Economy says. The two
Speaker 6: hundred billion dollars surge and customs revenue represents two hundred
Speaker 6: billion diracted from American businesses and households, so that the
Speaker 6: terra functions not as a tax on foreign producers but
Speaker 6: as a consumption tax in Americans. Based on shipment data,
Speaker 6: this covers twenty five million transactions worth about four trillion dollars.
Speaker 6: The Queue study runs completely counter to the Trump administration's argument,
Speaker 6: but the trading partners pay tariffs in New York. Come
Speaker 6: John Tucker, Bloomberg Radio.
Speaker 3: All right, John, thank you. President Trump is confirming he's
Speaker 3: invited Russian President Vladimir Putin to join his proposed Board
Speaker 3: of Peace for Gaza. Here's the President speaking again to
Speaker 3: reporters in Florida and Brendan.
Speaker 4: Yes, he's one of the people. These are world leaders
Speaker 4: and the answers yes.
Speaker 3: And this morning China confirmed it also received an invitation
Speaker 3: to join the board, though there's no word whether it
Speaker 3: will accept. One world leader who is rejecting the invitation
Speaker 3: is Emmanuel Macro, and President Trump is taking a swipe
Speaker 3: at the French president.
Speaker 4: Well, nobody wats him because he's going to be out
Speaker 4: of office versu. So you know, that's all right. What
Speaker 4: I'll do is, if they feel like Costo, I'll put
Speaker 4: a two hundred percent twer for his wines and champagnes
Speaker 4: and he'll join. But he doesn't have to join.
Speaker 3: President Trump also published a text message he says came
Speaker 3: from mcclom in which he invited the President to have
Speaker 3: dinner in Paris on Thursday. A draft charter for the
Speaker 3: proposed Board of Peace seen by Bloomberg, says that President
Speaker 3: Trump would serve as its inaugural chairman and have authority
Speaker 3: over membership decisions. The Trump administration is asking countries that
Speaker 3: want a permanent spot on the body to contribute at
Speaker 3: least a billion dollars Heythan.
Speaker 2: Treasury Secretary Scott Besson says President Trump is coming close
Speaker 2: to announcing his pick for the next Federal Reserved chair.
Speaker 2: Besson spoke earlier today in DeVos.
Speaker 5: We have four fantastic candidates. It will be up to
Speaker 5: the President and I would imagine that he will have
Speaker 5: an announcement, maybe as early as next week.
Speaker 2: Treasury Secretary Scott Besson, speaking at Davos Black Rocks, Rick Reader,
Speaker 2: National Economic Council Director Kevin Hassett, Fed Governor Waller and
Speaker 2: former Governor Kevin worsh are the final contenders to replace
Speaker 2: j Powell. A s.
Speaker 3: Fed shair Well This morning, Karen Geopolitical concerns are taking
Speaker 3: their toll on stocks as we kick off the holiday
Speaker 3: shortened trading week. In Nasdaq, futures are hardest hit, down
Speaker 3: two point two percent. A swamp in Japanese bonds is deepening.
Speaker 3: It's sending yields there to records. Investors are giving a
Speaker 3: thumbs down to Prime Minister sna Atakaichi's election pitch to
Speaker 3: cut taxes on food.
Speaker 2: We do have a deal in the drug industry this morning.
Speaker 2: Nathan GSK has agreed to buy San Francisco based biotech
Speaker 2: company Wrapped Therapeutics, in a deal value to two point
Speaker 2: two billion dollars. Wrapped, which develops treatments for patients with
Speaker 2: inflammatory and immunological diseases, is up sixty three and a
Speaker 2: half percent in early trading.
Speaker 3: And as far as company earnings go, Karen, we get
Speaker 3: more of those this afternoon from Netflix leading the way
Speaker 3: those results come as the streaming giant face is a
Speaker 3: fierce takeover battle for Warner Bros. Discovery get the wrong
Speaker 3: Ganathan covers Netflix for Bloomberg Intelligence.
Speaker 7: I hope the focus really turns. And this is a distraction,
Speaker 7: you know, from this whole drama that we've seen. But
Speaker 7: fundamentals wise, you're absolutely right. The company has never been
Speaker 7: in a stronger situation. We think they will absolutely deliver
Speaker 7: on their revenue growth expectations of about seventeen percent, strong
Speaker 7: operating margin, strong free cash flow. They're expecting about nine
Speaker 7: billion dollars for the full year.
Speaker 3: Let's keep the wrong, Ganathan of Bloomberg Intelligence. Netflix shares
Speaker 3: are down forty five percent from their all time high.
Speaker 2: And finally, Nathan, it might cost you a little less
Speaker 2: money if you're in the market for an engagement ring.
Speaker 2: Bloomberg News has learned to beers is cutting its official
Speaker 2: diamond prices for the first time in more than a year.
Speaker 2: The diamond industry has been beset by a crisis amid
Speaker 2: a pullback in Chinese luxury spending and the rising popularity
Speaker 2: of synthetic stones. Time now for look at some of
Speaker 2: the other stories making news in New York and around
Speaker 2: the world, and for that we're joined by Bloomberg's Michael Barr.
Speaker 8: Michael, good morning, Good morning Karen. It is cold this morning.
Speaker 8: Bloomberg Meeting relogist Craig Allen has the latest.
Speaker 9: It's an open door to the Arctic and the bitter
Speaker 9: cold will come in births right through the next five
Speaker 9: to seven days, each outbreak getting colder, and the daytime
Speaker 9: highs in the major I ninety five cities from New
Speaker 9: England to New York City to DC only climbing into
Speaker 9: the twenties, nights in the teens, and wind chills below
Speaker 9: zero in some suburbs.
Speaker 8: Bloomberg Meeting relogist Craig Allen it should remain chilly through
Speaker 8: the rest of the week across the Midwest and Northeast.
Speaker 8: Snow crippled traveled nationwide over the long MLK weekend. In Michigan,
Speaker 8: more than one hundred vehicles piled up on an interstate
Speaker 8: outside Grand Rapids Monday. Captain Jake Sparks of the Ottawa
Speaker 8: County Sheriff's Office says there are some injuries.
Speaker 10: I'm told that most of them are minor injuries at
Speaker 10: this time, so I don't believe that any of them
Speaker 10: are terribly serious or life threatening. I know that there
Speaker 10: have been fatalities reported yet, so that's one positive.
Speaker 8: Captain Jake Sparks is advising people to stay home until
Speaker 8: the cleanup is complete. It's a big day in New Jersey.
Speaker 8: Mikey Cheryl is set to be sworn in today as
Speaker 8: the state's first female Democratic governor. Cheryl will take over
Speaker 8: for Governor Phil Murphy. The former Navy pilot and congresswoman, says,
Speaker 8: we are going to very quickly show that we have
Speaker 8: a new agenda here in New Jersey. A Massachusetts police
Speaker 8: station appears to be the target of an intentional attack.
Speaker 8: It happened in Shrewsbury, about forty five minutes west Boston yesterday.
Speaker 8: Shrewsbury Police Chief Kevin Anderson described what happened after the
Speaker 8: driver of a twenty twenty two black bmwsuv used it
Speaker 8: as a battering ram to break through the front doors.
Speaker 11: The vehicle actually went through the front door and actually
Speaker 11: went into dispatch, So went through the lobby into dispatch,
Speaker 11: and there were three dispatchers working at the time, and
Speaker 11: obviously they're very shuckn up.
Speaker 8: Chief Anderson. Global News twenty four hours a day and
Speaker 8: whenever you want it with the Bloomberg News. Now, I'm
Speaker 8: Michael Barr, and this is Bloomberg Karen.
Speaker 12: Thanks Michael.
Speaker 2: Time now for our Bloomberg Sports update, and for that
Speaker 2: we bring in John Stashauer.
Speaker 13: Thanks Karen. The Indiana Hoosiers captain amazing perfect sixteen and
Speaker 13: oh season, winning college Football's National Championship over Miami in
Speaker 13: Miami twenty seven to twenty one. The Hoosier has never
Speaker 13: trailed NFL coaching hirings and firings. Jeff Hafley, the green
Speaker 13: Bay defensive coordinator, is the new head coach of the
Speaker 13: Miami Dolphins. Robert Salo, the defensive cornator of the forty
Speaker 13: nine ers, has a deal to become the new coach
Speaker 13: of the Tennessee Titans. The Buffalo Bills now need a
Speaker 13: new coach, surprising, and they fired Sean McDermott. That's your
Speaker 13: Bloomberg Sports update.
Speaker 2: Stay with us. More from Bloomberg day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Speaker 1: Bloomberg Business out This is Bloomberg Daybreak.
Speaker 8: Good morning.
Speaker 3: I'm Nathan Hager. Between his desire to take control of
Speaker 3: Greenland and is pushed to form a new board for
Speaker 3: peace in Gaza and potentially the world. President Trump is
Speaker 3: promising this year's World Economic Forum will be, as he
Speaker 3: put it, a very interesting DeVos.
Speaker 4: I think I have a lot of messages for Davos,
Speaker 4: but the primary message is how well the United States
Speaker 4: is doing.
Speaker 3: I was President Trump in Miami before he heads to
Speaker 3: the Swiss Alps. Later today. Bloomberg Surveillance host Lisa Bromwitz
Speaker 3: is already there anchoring our coverage of the World Economic Forum,
Speaker 3: and very pleased to say that Lisa is here with
Speaker 3: us now. Great to have you on daybreak, Lisa head
Speaker 3: of the World Economic Forum. The theme this year a
Speaker 3: spirit of dialogue? What is the spirit of dialogue with
Speaker 3: all these geopolitical risks preceding the forum? Good morning, Good.
Speaker 12: Morning, Nathan, and thank you for having me. I want
Speaker 12: to just first say that the spirit of Dialogue is
Speaker 12: quite an ironic name considering the fact that this is
Speaker 12: a DeVos about fissures in the global order, rearranging in
Speaker 12: some of the alliances, and that really is one of
Speaker 12: the hot topics. Greenland obviously is sucking a lot of
Speaker 12: oxygen out of the room, and you have some four
Speaker 12: hundred world leaders here, a record getting together, and Donald
Speaker 12: Trump is very much on the forefront of their mind.
Speaker 12: So yes, perhaps President Trump will talk about housing affordability
Speaker 12: and the strength of the United States, but really people
Speaker 12: want to understand what the commitment is to NATO, how
Speaker 12: much the US is serious about taking Greenland, and what
Speaker 12: exactly it's willing to do to get there, and just
Speaker 12: how much of an obstacle the your region is planning
Speaker 12: to be as well as some of the other allies
Speaker 12: like Canada as well, so very much focus in geopolitics
Speaker 12: with interesting Nathan. I'll just point this out. If you
Speaker 12: talk to CEOs, they will talk about optimism, they will
Speaker 12: talk about artificial intelligence. We'll talk about a consumer that's strong.
Speaker 12: They will avoid at all costs weighing in on any
Speaker 12: of these bigger geopolitical issues other than just saying there
Speaker 12: could be volatility ahead.
Speaker 3: Well, can they avoid these geopolitical issues when they are
Speaker 3: already seeming to overshadow the events that are going to
Speaker 3: be coming in the next few days.
Speaker 12: They have found very creative ways to do so. I mean,
Speaker 12: they could talk about resilience. They can talk about how
Speaker 12: they have managed through either the supply chain disruptions of
Speaker 12: the pandemic or even just the post Liberation Day tariffs
Speaker 12: and how they were passed through or not. People are
Speaker 12: clearly more concerned in private conversations. Let's be honest. There
Speaker 12: is clearly a sense that the rules of the road
Speaker 12: are shifting, and it's unclear how permanent some of these
Speaker 12: rules are. I'll give you one anecdote. I was speaking
Speaker 12: to a leader of a business yesterday who is saying
Speaker 12: for us, we just want to know what the rules
Speaker 12: are and we want them to be consistent in different
Speaker 12: regions so that we know how to plan, because if
Speaker 12: they're shifting around at this speed, adapting is very difficult.
Speaker 12: So that's what they'll say privately. Publicly they'll just say
Speaker 12: we can't know what we don't know, but right now
Speaker 12: on good footing and et cetera, et cetera. So that's
Speaker 12: kind of how people are navigating this.
Speaker 3: No, Well, publicly, we have already heard from Treasury Secretary
Speaker 3: Scott Besset sort of appealing for calm from allies, comparing
Speaker 3: it to the sort of the uproar of before or
Speaker 3: after the tariff announcement back in April. How is the
Speaker 3: Treasury Secretary's message being received and how could that color
Speaker 3: what we hear from the president later on this week.
Speaker 12: Well, I think that a lot of people have heard
Speaker 12: this type of message before. It was also interesting that
Speaker 12: treasure secretaries got best and talked about how any kind
Speaker 12: of sales of treasury seems preposterous in the wake of
Speaker 12: some of these fears, and this idea that you saw
Speaker 12: a similar shift after Liberation Day last to April that
Speaker 12: said there clearly is a sense. I was just speaking
Speaker 12: to the Foreign Minister of Canada a bit Togo earlier
Speaker 12: this morning, and she was saying, look, the world order
Speaker 12: has changed. It is changing. And this comes after Canada
Speaker 12: I just went to China to feel a trade deal
Speaker 12: with that nation. So there is a feeling that trade
Speaker 12: alliances are shifting. Alliances in general are more in question.
Speaker 12: There is a sense that there are certain players that
Speaker 12: are a bit hamstrung, right they don't have an option
Speaker 12: other than to work things out with the United States
Speaker 12: Canada among those, considering the fact that we're neighbors. So
Speaker 12: these are some of the issues that are on the table.
Speaker 12: But clearly there is a sense of unease that is
Speaker 12: permeeting the entire event. And this is a big event,
Speaker 12: and it is more heavily fortified than I've ever seen
Speaker 12: it before, with lines that look like they're going into
Speaker 12: an airport. So very much it is present in people's times.
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