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Speaker 1: News when you want it. With Bloomberg News Now, I'm

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Speaker 1: Doug Krisner. We begin with earnings news after the bell,

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Speaker 1: Amazon reported net sales for the fourth quarter in line

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Speaker 1: with estimates. The company also beat big on operating income.

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Speaker 1: The problem was Amazon sales forecast for the current quarter.

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Speaker 1: We got reaction from a Run Sunderrum, vice president of

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Speaker 1: equity Research at CFRRA.

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Speaker 2: The bandside is still very strong.

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Speaker 3: You know.

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Speaker 2: I think all the big tech players, the hyperscalers have

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Speaker 2: announced that right now. You know, their demand is exceeding supply.

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Speaker 2: So there's supply chain issues throughout the industry. Amazon included.

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Speaker 2: You know, I think it's going to take probably at

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Speaker 2: least half a year to a full year for supply

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Speaker 2: to catch up with demand. That's why these companies are

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Speaker 2: investing so heavily.

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Speaker 1: That's a run Sunderrm, vice president of equity research at CFRRA.

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Speaker 1: Later in the earnings call with analyst, Amazon said it

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Speaker 1: could face capacity constraints in its cloud computing division, despite

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Speaker 1: plans to invest some one hundred billion dollars this year.

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Speaker 1: CEO Andy Jasse also warned that growth would be lumpy.

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Speaker 1: He hinted that the company could face capacity issues related

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Speaker 1: to delays in getting hardware and not having sufficient electricity.

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Speaker 1: Shares and Amazon were down four percent in the late

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Speaker 1: US trading. The Justice Department is appealing an order from

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Speaker 1: a federal judge that blocks President Trump's attempt to restrict

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Speaker 1: automatic birthright citizenship. This is the first move by the

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Speaker 1: administration to take the issue to a higher court after

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Speaker 1: a series of setbacks. Tomorrow, Japanese Prime Minister Shighiru Ishiba

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Speaker 1: will be meeting with President Trump. Now, Ishiba's goal is

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Speaker 1: to build a relationship of trust with Trump. We got

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Speaker 1: some insight from Tomoyuki Yoshida. He is the chief executive

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Speaker 1: director of the Japan Institute of International Affairs.

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Speaker 4: There are many other issues that the leaders have to

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Speaker 4: talk about them, but as the important thing is that

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Speaker 4: Japan should be regarded as a trustee to Pertona for

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Speaker 4: the Trump administer ratio in the context of the American

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Speaker 4: first policies. If it is benetal for the interest of

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Speaker 4: the United States or the two das, we'll corporate in Chiada.

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Speaker 1: That's Tomoyuki Yoshida of the Japan Institute of International Affairs.

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Speaker 1: Now in Japan, the focus will be on how well

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Speaker 1: Ishiba appears to get on with President Trump and to

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Speaker 1: avoid being targeted by Trump's trade policies. So far, President

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Speaker 1: Trump is not mentioned tariffs on Japan. Treasury Secretary Scott

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Speaker 1: Besson defended the government's efficiency team, being led by Elon

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Speaker 1: Musk Here is best in speaking earlier to Bloomberg.

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Speaker 3: We are doing a complete review, and I want to

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Speaker 3: emphasize to you and everyone watching that it is an

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Speaker 3: operational review, It is not an ideological review. We want

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Speaker 3: to make sure that the American people are getting the

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Speaker 3: best practices, and I don't think that's happening right now.

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Speaker 1: That's Treasury Secretary Scott Besson speaking earlier to Bloomberg. He

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Speaker 1: also addressed the FED, saying that he would refrain from

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Speaker 1: criticizing the head of the US Central Bank, and Bessen

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Speaker 1: said the Trump administration is not focused on whether the

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Speaker 1: FED would cut its benchmark policy rate. Instead, the focus

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Speaker 1: is on achieving a lower yield for the US ten

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Speaker 1: yere Treasury note. You can listen to the full interview

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Speaker 1: on the Bloomberg Talks podcast feed. It's available wherever you

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Speaker 1: get your podcast. President Trump outlined he has tax bill

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Speaker 1: priorities in a meeting today with Republican lawmakers. Here's White

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Speaker 1: House Press Secretary Caroline Levitt on the measures Trump would

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Speaker 1: like to see.

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Speaker 5: No tax on tips, which is obviously a very public

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Speaker 5: campaign promise that the President made. No tax on seniors

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Speaker 5: social Security, no tax on overtime pay. Renewing President Trump's

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Speaker 5: twenty seventeen middle class tax cuts. Again, these are the

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Speaker 5: President's priorities. Adjusting the salt cap, eliminate all the special

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Speaker 5: tax breaks for billionaire sports team owners, close the carried

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Speaker 5: interest tax deduction, loophole, tax cuts for made in America products.

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Speaker 5: This will be the large or just tax cut in

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Speaker 5: history for middle class working Americans. The President is committed

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Speaker 5: to working with Congress to get this done.

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Speaker 1: That is White House Press Secretary Caroline Levitt speaking there now.

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Speaker 1: Republicans are aiming to pass as sweeping tax build this year.

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Speaker 1: Details are expected to be announced as soon as Friday tomorrow.

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Speaker 1: The US Jobs Report will be the focal point not

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Speaker 1: just for the markets, but for the Fed as well.

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Speaker 1: The consensus estimate expects an increase in non farm payrolls

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Speaker 1: by one hundred and seventy three thousand. Veronica Clark is

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Speaker 1: an economist at City Group Global.

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Speaker 6: Markets We've had about six months now where the unemployment

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Speaker 6: rates move sideways a bit above four percent, higher than

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Speaker 6: the lows we had in twenty twenty three. But that

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Speaker 6: level is still okay. I would still be worried that

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Speaker 6: not necessarily tomorrow, but as we're getting into the spring

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Speaker 6: and summer, we do still see that unemployment rate taking higher.

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Speaker 6: It is just this consequence of a very low hiring dynamics,

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Speaker 6: and you could get that unemployment rate moving higher.

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Speaker 1: That is City Group's Veronica Clark there. Meantime, today we

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Speaker 1: learned application for first time jobless claims picked up last week,

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Speaker 1: although in the bigger picture they remained relatively subdued by

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Speaker 1: the way. You can stay with Bloomberg for our coverage

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Speaker 1: of the January jobs report. We'll have those numbers beginning

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Speaker 1: at eight thirty am Wall Street time. And that is

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Speaker 1: news when you want it with Bloomberg News.

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Speaker 4: Now.

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Speaker 1: I'm Doug Prisner, and this is Bloomberg