WEBVTT - Trump's Gaza Proposal; China Weighs Probe into Apple

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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. Karen, we begin with

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<v Speaker 2>controversy in the Middle East. President Trump says the US

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<v Speaker 2>should take control of the Gaza Strip. The President spoke

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<v Speaker 2>during a White House news conference alongside Israeli Prime Minister

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<v Speaker 2>Benjamin NATANYAHUO the.

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<v Speaker 3>US will take over the Gaza Strip, and we will

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<v Speaker 3>do a job with it too. We'll own it and

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<v Speaker 3>be responsible for dismantling all of the dangerous unexploded bombs

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<v Speaker 3>and other weapons on the site.

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<v Speaker 4>The reaction has been swift to President Trump's Kaza proposal.

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<v Speaker 4>Former NATO Supreme Allied Commander in Europe Wesley Clark warrens

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<v Speaker 4>it would be exceptionally challenging to deliver.

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<v Speaker 5>There are huge problems at the bottom, not to mention

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<v Speaker 5>strategic consent at the top. So look, he's the President

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<v Speaker 5>of the United States, better listen to him. But I've

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<v Speaker 5>done these things. I can tell you how difficult this is.

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<v Speaker 5>This is unimaginability difficult.

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<v Speaker 4>Former NATO's Supreme Allied Commander in Europe, Wesley Clark, spoke

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<v Speaker 4>as Saudi Arabia reiterated its support for a Palestinian state

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<v Speaker 4>with East Jerusalem as its capital. The Saudis are rejecting

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<v Speaker 4>any infringement on the legitimate rights of the Palestinian people.

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<v Speaker 2>Well Nathan new Development's new developments this morning. Involving Trump's

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<v Speaker 2>trade war, the US Postal Service has temporarily suspended the

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<v Speaker 2>acceptance of inbound parcels from China and Hong Kong. According

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<v Speaker 2>to its website, letters and flat packages from the region

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<v Speaker 2>will not be impacted. The move comes after President Trump

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<v Speaker 2>and post ten percent tariff increases on Chinese goods.

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<v Speaker 4>Karen China may be looking at ways to fire back.

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<v Speaker 4>Bloomberg News has learned Beijing's antitrust watchdog is laying the

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<v Speaker 4>groundwork for a potential probe into Apple. We get more

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<v Speaker 4>from Bloomberg News Global Tech editor Peter Elstrom.

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<v Speaker 6>We see these tensions between the two countries rising. The

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<v Speaker 6>US of course imposed the ten percent terra off Sunshina,

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<v Speaker 6>and in response, we're seeing some measure responses from Beijing.

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<v Speaker 6>Right now, we have the investigation into Google, and just

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<v Speaker 6>to be clear, the Apple investigation was not announced. This

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<v Speaker 6>is a sources based story where we're reporting that We

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<v Speaker 6>understand the regulators at SAMR are taking a look at Apple.

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<v Speaker 6>They've informed the Apple executives in the country that they're

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<v Speaker 6>concerned about some of these practices that they have in

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<v Speaker 6>the app store. These have been issues globally. Really it's

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<v Speaker 6>not just in China, but they're taking a thirty percent

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<v Speaker 6>cut of revenue from the app store in certain cases,

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<v Speaker 6>and they're also limiting your payment options so that you

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<v Speaker 6>run through the Apple Store.

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<v Speaker 4>Bloomberg's Peter Elstrom says if Apple resists making changes, the

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<v Speaker 4>Chinese government may launch a formal investigation on.

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<v Speaker 2>Nathan Donald Trump and Elon Musk's efforts to slash the

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<v Speaker 2>federal workforce have taken a new turn Bloomberg. John Tucker

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<v Speaker 2>is here with more. John.

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<v Speaker 7>What's the latest, Well, Karen, Most employees of the US

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<v Speaker 7>Agency for International Development they're going to be placed on

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<v Speaker 7>administrative leave. This starts Friday. The staff members stationed overseas

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<v Speaker 7>they have to return within thirty days, with exceptions to

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<v Speaker 7>be considered on a case by case basis. This all

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<v Speaker 7>comes after Trump ally Elon Musk signaled out USAID repeatedly

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<v Speaker 7>on X and even Trump described the agency as run

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<v Speaker 7>by a bunch of radical lunatics. Secretary of State Marco

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<v Speaker 7>Rubio said he's now in charge of USA and Warren

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<v Speaker 7>US lawmakers the agency might be abolished altogether, and it

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<v Speaker 7>doesn't stop there. The CIA has ordered staff buyouts. That

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<v Speaker 7>move comes after two million federal workers were given similar offers.

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<v Speaker 7>That move initially excluded national security agencies in New York.

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<v Speaker 7>IM John Tucker Bloomberg Radio.

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<v Speaker 4>All right, John, thank you, and his controversy swirls around

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<v Speaker 4>Elawn Musk's role and power in the Trump administration. The

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<v Speaker 4>Treasury Department says Musk's Government Efficiency Team has been given

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<v Speaker 4>read only access to coded data of the government's payments system.

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<v Speaker 4>Democratic lawmakers had raised concerns about that system's integrity stemming

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<v Speaker 4>from the Musk team's access.

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<v Speaker 2>Well Nathan, President Trump's cabinet continues to take Shaye pam

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<v Speaker 2>Bondy has won a full Senate vote to be the

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<v Speaker 2>next Attorney General.

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<v Speaker 8>On this vote, the yaser fifty four, the nays are

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<v Speaker 8>forty six.

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<v Speaker 9>The nomination is confirmed.

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<v Speaker 2>And that was the final tally for Pama Bondi in

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<v Speaker 2>the US Senate. The new Attorney General now get a

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<v Speaker 2>chance to reshape the one hundred and fifteen thousand member

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<v Speaker 2>Justice Department head of her confirmation. Interim leaders forced out

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<v Speaker 2>or reassigned many officials who investigated the January sixth attack

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<v Speaker 2>at the US Capitol, including career prosecutors and FBI officials.

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<v Speaker 4>I Meanwhile, Karen Moore cabinet nominees are moving closer to

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<v Speaker 4>their confirmations. Both Robert F. Kennedy, Junior and Tulsea Gabbert

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<v Speaker 4>have advanced through Senate committees on party line votes. Kennedy

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<v Speaker 4>faced questions about his past efforts to link vaccines to

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<v Speaker 4>autism at his hearing to leave the Department of Health

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<v Speaker 4>and Human Services. Gabbard drew criticism for meeting with then

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<v Speaker 4>Syrian President Bashar al Assad and refused to call NSA

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<v Speaker 4>leaker Edward Snowden a trader in her bid to be

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<v Speaker 4>Director of National Intelligence.

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<v Speaker 2>On Nathan, Now, we want to turn to the latest

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<v Speaker 2>on the plane crash investigation in Washington, d C. The

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<v Speaker 2>remains of all sixty FI seven victims have been recovered

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<v Speaker 2>from the collision between the American Airlines flight and the

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<v Speaker 2>Army helicopter. The National Transportation Safety Board says the latest

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<v Speaker 2>data show the black Hawk was flying at about three

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<v Speaker 2>hundred feet at the time of the accident. That's about

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<v Speaker 2>one hundred feet higher than the preliminary RATEAR indicated. Investigators

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<v Speaker 2>say they need more data from the Blackhawk itself. They

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<v Speaker 2>expect to recover it from the Potomac River later this week.

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<v Speaker 4>Turning the markets now, Karen futures are lower, led by

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<v Speaker 4>tech shares following some disappointing earnings after the bell. Shares

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<v Speaker 4>of Google parent Alphabet are down seven and a half

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<v Speaker 4>percent after missing earning's estimate. Sales from its cloud business slowed.

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<v Speaker 4>On the company conference call, Alphabet CEO Soon darp Shi

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<v Speaker 4>downplayed competition from China's Deep Seek.

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<v Speaker 10>There's been a lot of observations on Deep Seek. First

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<v Speaker 10>of all, you know, I think tremendous team. I think

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<v Speaker 10>they've done very very good work. I would say both

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<v Speaker 10>are two point zero flash models or two point oho

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<v Speaker 10>flash thinking models. You know, they are some of the

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<v Speaker 10>most efficient models out there, including comparing two deep seeks.

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<v Speaker 4>Alphabet CEO Sun Darbishi also announced seventy five billion dollars

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<v Speaker 4>in twenty twenty five capital expenditures that far exceeds the

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<v Speaker 4>fifty seven point nine billion that analysts expected.

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<v Speaker 2>Nathan Chairs of AMD also taking it on the chin.

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<v Speaker 2>This morning, they're down more than eight and a half percent.

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<v Speaker 2>Is it struggled to catch up with AI computing leader Nvidia.

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<v Speaker 2>The chip maker's fourth quarter revenue topped estimates, but its

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<v Speaker 2>data center divisions revenue was below analyst projections.

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<v Speaker 4>And shares of Chipotle Mexican Grill are down more than

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<v Speaker 4>six percent. The fast food retailer sales rose less than expected.

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<v Speaker 4>Chipotle had stood out as one of the few chains

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<v Speaker 4>that managed to bring in more customers over the past

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<v Speaker 4>year to time. When competition or when competitors, I should say,

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<v Speaker 4>we're losing traffic.

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<v Speaker 2>Well for season. Nathan Nissan is reportedly pulling out of

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<v Speaker 2>plans to combine with Honda. The NYK newspapers reporting talks

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<v Speaker 2>between the two car makers have stalled since tie up

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<v Speaker 2>plans were first announced in December. Without Honta is backing,

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<v Speaker 2>Nissan's future is unclear, with the company facing chronic issues

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<v Speaker 2>such as an outdated product lineup and bloated dealership incentives.

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<v Speaker 2>Time now, if we look at some of the other

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

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

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<v Speaker 2>Good morning.

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<v Speaker 9>Good morning Karen. In New Orleans, security preparations are underway

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<v Speaker 9>ahead of Super Bowl Sunday. The US Department of Homeland

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<v Speaker 9>Security Special Agent in Charge for New Orleans, Eric Delonde,

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<v Speaker 9>is the lead federal coordinator for Super Bowl fifty nine.

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<v Speaker 9>He says visitors to the city are going to see

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<v Speaker 9>a heavy police presence this weekend.

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<v Speaker 2>This is going to be the safest city in America

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<v Speaker 2>for the Super Bowl.

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<v Speaker 4>We will have more federal assets, more federal law enforcement,

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<v Speaker 4>more state local law enforcement, probably than any other Fruit

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<v Speaker 4>Bowl ever played.

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<v Speaker 9>Delan's comments come after the January first Bourbon Street terrorist

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<v Speaker 9>attack that killed fifteen people. Sweden's worst mass shooting has

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<v Speaker 9>left at least eleven people dead, including the gunman, at

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<v Speaker 9>an adult education center, as officials warned that the death

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<v Speaker 9>toll could rise. Police believe the perpetrator acted alone, but

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<v Speaker 9>have not said if he was a student or what

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<v Speaker 9>his motive may have been. Tuesday's violence occurred at a

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<v Speaker 9>school west of Stockholm and offers primary and second educational

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<v Speaker 9>classes for adults. Police say one person is dead. Five

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<v Speaker 9>people have been wounded in a shooting at a cosmetics

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<v Speaker 9>warehouse in New Albany. Ohio. A spokesperson says the subject

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<v Speaker 9>is no longer believed to be at the warehouse, which

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<v Speaker 9>belongs to a company that makes products including toiletries. New

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<v Speaker 9>Albany Police Chief Greg Jones. We believe we may know

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<v Speaker 9>their location.

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<v Speaker 5>We don't have any reason to believe that they are

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<v Speaker 5>a general threat to society more than this was.

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<v Speaker 2>It appears at this point to be a targeted type

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<v Speaker 2>of attack.

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<v Speaker 9>Chief Jones did not immediately provide the tales of the

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<v Speaker 9>circumstances surrounding the shooting. Global News twenty four hours a

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<v Speaker 9>day and whenever you want it with the Bloomberg News. Now,

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<v Speaker 9>I'm Michael Barr, and this Isloomberg Kearn.

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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 Audi.

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<v Speaker 2>Here's John Stshower.

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<v Speaker 8>John, Good morning, Yim morning, Karen. Busy Tuesday for New

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<v Speaker 8>York area teams. The Knicks, Nets, Devils, Islanders, and Saint

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<v Speaker 8>John's all played. They all won. The Knicks in Toronto

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<v Speaker 8>saw a twenty three point league get cut to one

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<v Speaker 8>was just over three minutes remaining, but the Knicks held

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<v Speaker 8>on one twenty one to one fifteen as Karl Anthony

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<v Speaker 8>Towns had twenty seven points and twenty rebounds. Nicks had

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<v Speaker 8>won seven of their last eight games and eight in

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<v Speaker 8>a row. Versus the Raptors. The Nets had and won

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<v Speaker 8>a home game in two months. Didn't look like they'd

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<v Speaker 8>beat Houston down four with nine seconds left. A Keon

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<v Speaker 8>Johnson three point or a steal on the inbounds passing

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<v Speaker 8>at D'Angelo Russell three six points in six seconds. The

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<v Speaker 8>Nets beat the Rockets ninety seven, ninety three, top two

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<v Speaker 8>in the East. Met in Cleveland, Celtics beat the Cavs

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<v Speaker 8>and LA The Lakers beat the Clippers by twenty five

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<v Speaker 8>with Luca don Said's sitting on the Laker bench. He

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<v Speaker 8>hasn't played since Christmas with a calf injury. But for

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<v Speaker 8>the the first time since the trade, Luca gave his

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<v Speaker 8>reaction to it.

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<v Speaker 10>But like this last forty dollars just one month, Like

0:10:08.880 --> 0:10:10.360
<v Speaker 10>two days ago was one month ago.

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<v Speaker 2>So emotionally it was really hard.

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<v Speaker 11>But very day that I like today was much better.

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<v Speaker 11>You know, I'm just very happy to be here.

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<v Speaker 8>Anthony Davis also hurt, didn't play for Dallas and a

0:10:23.960 --> 0:10:25.959
<v Speaker 8>two point loss at Philadelphia, and you have yes, aerena.

0:10:26.000 --> 0:10:28.000
<v Speaker 8>The Islanders made it eight wins in the last nine games,

0:10:28.160 --> 0:10:30.240
<v Speaker 8>two to one over Vegas. Devils won three two in

0:10:30.280 --> 0:10:33.719
<v Speaker 8>a shootout at Pittsburgh get the Guarden. Saint John's's twentieth

0:10:33.760 --> 0:10:36.160
<v Speaker 8>win of the season. It's so far been a terrific one.

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<v Speaker 8>The Red Storm atop the Big East. They beat Marquette

0:10:38.920 --> 0:10:41.880
<v Speaker 8>seventy to sixty four. The Yankees have re signed lefty

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<v Speaker 8>reliever Tim Hill. John Stashan. We're Bloomberg Sports Kenona.

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

0:10:51.880 --> 0:10:54.720
<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 9>Good morning.

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<v Speaker 4>I'm Nathan Hager. And it could be a dramatic shift

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<v Speaker 4>in the Middle East. President Trump says the US should

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<v Speaker 4>take over the Gaza Strip and develop it into what

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<v Speaker 4>he calls a riviera. And he says it's not an

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<v Speaker 4>idea he comes too lightly.

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<v Speaker 12>Everybody I've spoken to loves the idea of the United

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<v Speaker 12>States owning that piece of land, developing and creating thousands

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<v Speaker 12>of jobs with something that will be magnificent in a

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<v Speaker 12>really magnificent area that nobody would know. Nobody could look

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<v Speaker 12>because all they see is death and destruction and rubble.

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<v Speaker 4>And that was President Trump speaking alongside Israeli Prime Minister

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<v Speaker 4>Benjamin Netan Yahoo at the White House, joining us now

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<v Speaker 4>as Bloomberg News Managing editor Derek Wallbank and Derek to say,

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<v Speaker 4>this would up end Middle East policy. May be just

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<v Speaker 4>scratching the surface. What do you make of this?

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<v Speaker 11>Yeah, Nathan, it was really interesting watching that press conference

0:11:50.120 --> 0:11:54.760
<v Speaker 11>because when Donald Trump started going into this, you know,

0:11:55.160 --> 0:11:57.760
<v Speaker 11>I think that they're The initial reaction was, hold on,

0:11:57.840 --> 0:12:01.040
<v Speaker 11>did he just say what we think he said? And

0:12:01.080 --> 0:12:04.600
<v Speaker 11>then Trump went on to, as you noted, make very

0:12:04.679 --> 0:12:07.199
<v Speaker 11>clear that not only did he say it, he meant it.

0:12:08.480 --> 0:12:13.480
<v Speaker 11>You know, there are infinite questions that it raises. There

0:12:13.720 --> 0:12:18.920
<v Speaker 11>has been a pretty stiff pushback, unanimous among Democrats over

0:12:19.320 --> 0:12:22.760
<v Speaker 11>you know, overwhelming out of the out of the Arab world.

0:12:23.800 --> 0:12:26.520
<v Speaker 11>Not so much from Republicans. We have heard a couple

0:12:26.600 --> 0:12:30.600
<v Speaker 11>of congressional Republicans, Lindsey Graham being one, suggests that maybe

0:12:30.600 --> 0:12:34.280
<v Speaker 11>this was, you know, that this was a little bit

0:12:34.280 --> 0:12:38.679
<v Speaker 11>of a bad idea. But other than that, Republicans have

0:12:38.760 --> 0:12:44.200
<v Speaker 11>been pretty well supportive of the idea of doing something different.

0:12:44.280 --> 0:12:44.480
<v Speaker 9>Now.

0:12:44.520 --> 0:12:47.720
<v Speaker 11>Trump went out and said a whole range of things

0:12:47.760 --> 0:12:49.920
<v Speaker 11>about what he would want to do with Gazaf. The

0:12:50.000 --> 0:12:53.720
<v Speaker 11>US got heavily, heavily involved and effectively took it over,

0:12:54.679 --> 0:12:58.319
<v Speaker 11>not least of which redeveloping the entire place. He compared

0:12:58.320 --> 0:13:02.079
<v Speaker 11>it at one point to a potential Middle Eastern riviera.

0:13:03.120 --> 0:13:06.880
<v Speaker 11>You know, as I say, it was bombshell comments from

0:13:06.920 --> 0:13:09.840
<v Speaker 11>the US President. I think, Nathan, you and I've been

0:13:09.840 --> 0:13:13.440
<v Speaker 11>following this along so long. The Middle East is really

0:13:13.480 --> 0:13:17.200
<v Speaker 11>one of those areas, especially issues related to Israel and

0:13:17.200 --> 0:13:21.280
<v Speaker 11>the Palestinians, where US presidents have had to choose their

0:13:21.280 --> 0:13:25.280
<v Speaker 11>words exceptionally carefully, and it's sort of like every single

0:13:25.360 --> 0:13:30.079
<v Speaker 11>word and phrase is litigated. Trump went and smashed through

0:13:30.200 --> 0:13:32.199
<v Speaker 11>all of that. And I think that there will be

0:13:32.720 --> 0:13:36.680
<v Speaker 11>there will be effects of this for a very very

0:13:36.720 --> 0:13:37.280
<v Speaker 11>long time.

0:13:37.559 --> 0:13:39.920
<v Speaker 4>We if this idea is a sort of a bull

0:13:39.960 --> 0:13:44.000
<v Speaker 4>in the China shop of diplomacy from President Trump. Was

0:13:44.120 --> 0:13:48.600
<v Speaker 4>very interesting to see Prime Minister Netsan Yahoo alongside President

0:13:48.640 --> 0:13:52.040
<v Speaker 4>Trump not necessarily dismissing this idea out of hand.

0:13:53.600 --> 0:13:58.400
<v Speaker 11>No, not necessarily dismissing, but you know it, it's hard

0:13:58.440 --> 0:14:01.120
<v Speaker 11>to know exactly how red he is and how much

0:14:01.320 --> 0:14:07.000
<v Speaker 11>he wanted, you know, that level of a statement, you know,

0:14:07.120 --> 0:14:10.840
<v Speaker 11>Netnya who was making, you know, statements that were generally

0:14:10.920 --> 0:14:16.760
<v Speaker 11>positive towards Trump's ideas, more I would say flattering of

0:14:16.800 --> 0:14:24.760
<v Speaker 11>Trump than endorsing necessarily exactly specific prescriptions. But I think

0:14:24.800 --> 0:14:26.920
<v Speaker 11>that this is one of those things that, look, the

0:14:26.920 --> 0:14:30.400
<v Speaker 11>White House does not appear to have given a lot

0:14:30.480 --> 0:14:33.440
<v Speaker 11>of people a heads up that this kind of titanic

0:14:33.480 --> 0:14:36.760
<v Speaker 11>policy shift was coming, right. It took a lot of

0:14:36.800 --> 0:14:40.680
<v Speaker 11>people by surprise, you know. But this is also something

0:14:40.720 --> 0:14:42.800
<v Speaker 11>that Trump is leaning into in his first days. And

0:14:42.800 --> 0:14:46.960
<v Speaker 11>you could say this across a range of different policies

0:14:47.000 --> 0:14:51.720
<v Speaker 11>and foreign policies where he sees an advantage to surprise,

0:14:51.840 --> 0:14:55.840
<v Speaker 11>and he sees an advantage to volatility, many times the

0:14:55.920 --> 0:14:57.920
<v Speaker 11>volatility he himself is creating.

0:14:58.080 --> 0:15:00.600
<v Speaker 4>Oh well, we think through this potential volatile and Middle

0:15:00.640 --> 0:15:05.000
<v Speaker 4>East policy, Derek. There are new developments in the trade

0:15:05.000 --> 0:15:09.400
<v Speaker 4>tensions between the US and China after the ten percent tariffs.

0:15:09.440 --> 0:15:13.520
<v Speaker 4>Now this word from Bloomberg News that China is considering

0:15:13.560 --> 0:15:18.040
<v Speaker 4>an antitrust probe into Apple's app store. Where could this go?

0:15:19.720 --> 0:15:22.280
<v Speaker 11>Yeah, this one's an interesting one, Nathan, and it's and

0:15:22.320 --> 0:15:25.120
<v Speaker 11>it's a very it's very much a breaking news story,

0:15:25.240 --> 0:15:27.920
<v Speaker 11>so there's a lot to digest here. But the short

0:15:28.040 --> 0:15:31.360
<v Speaker 11>version of it is that China's antitrust watchdog is laying

0:15:31.400 --> 0:15:35.240
<v Speaker 11>the groundwork for a potential probe into Apple's policies and

0:15:35.280 --> 0:15:39.480
<v Speaker 11>the fees its charges app developers. Now, the idea of

0:15:40.880 --> 0:15:45.040
<v Speaker 11>scrutiny over Apple's app store not necessarily new, but at

0:15:45.080 --> 0:15:47.680
<v Speaker 11>the same point, we have to consider what moment we're

0:15:47.720 --> 0:15:51.520
<v Speaker 11>in and all of the things going on between the

0:15:51.640 --> 0:15:54.320
<v Speaker 11>US and China, and the potential that this could sort

0:15:54.320 --> 0:15:57.880
<v Speaker 11>of stack up on top of that. There's a lot

0:15:57.880 --> 0:16:00.200
<v Speaker 11>to sort of follow through here. One thing I we'll

0:16:00.240 --> 0:16:03.200
<v Speaker 11>say as well though, as we were talking to a

0:16:03.200 --> 0:16:07.320
<v Speaker 11>lot of analysts yesterday after ahead of this story coming out,

0:16:07.360 --> 0:16:10.600
<v Speaker 11>but after the United States Postal Service said it was

0:16:10.640 --> 0:16:17.520
<v Speaker 11>going to freeze taking in small packages from from China

0:16:17.560 --> 0:16:21.760
<v Speaker 11>and from Hong Kong for temporarily freeze, and one of

0:16:21.800 --> 0:16:24.080
<v Speaker 11>the things that stood out to me was there was

0:16:24.400 --> 0:16:29.560
<v Speaker 11>one analyst who noted that essentially you have a macro

0:16:29.840 --> 0:16:33.640
<v Speaker 11>risk from all of these micro things going on, and

0:16:33.680 --> 0:16:35.760
<v Speaker 11>they do stack up, and there is that sort of

0:16:36.680 --> 0:16:38.680
<v Speaker 11>you know, complication risk going out.

0:16:38.920 --> 0:16:41.880
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