Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the latest developments in a trade war now between the US and China. At midnight, the Trump administration imposed a ten percent tariff on all Chinese goods. This morning, China is retaliating. Bloomberg's John Tucker joins us with the latest. John, what is the response?
And Nathan? Beijing has imposed a fifteen percent tax on some US energy imports and a ten percent fee in American oil and agricultural equipment. It also put companies like Calvin Klein owner PVH Corporation, and Illumina on a blacklist. China also said it's going to investigate Google for alleged to anti trust violations by targeting a handful of American companies Nathan and Karen and slapping levies on some US goods.
This move does seem designed to avoid escalating tensions. The tariffs are set to kick in February tenth, and this potentially leaves room for negotiation and President Trump also did signal a desire to speak with the Chinese leader Jijingping before the tariffs take effect, so the reaction in the market seems to be muted at this point. The Chinese currency, the offshore you on little change this morning, in fact,
is up three tenths of per percent right now. And then the Hangsang China Enterprises Index, this is of Chinese stocks listed in Hong Kong that has rebounded. Initially, it dove at the news of the US tariffs and the Chinese countermeasures, and right now, in fact, it is up three and a half percent. In New yorkome John Tuncker Bloomberg.
Radio, All right, John, thank you. All tariffs on China are moving ahead. America's neighbors are getting a reprieve. President Trump says he's delaying twenty five percent tariffs on Canada and Mexico for a month. Those are due to kick in just after midnight this morning. Bloomberg's Derek to Clodes says Canadian Prime Minister Justin Trudeau made a number of concessions on border enforcement.
Canada will appoint a fentanyl czar to monitor and crack down on the trade of that drug, list the Mexican cartels as terrorists, and ensure twenty four to seven eyes on the border, which is part of that surveillance, which will include drones and that sort of thing.
Bloomberg's direct to Clode reports. Canada is also going ahead with a nine hundred million dollar planet announced in December to add more resources to the border security, including helicopters.
Thank Karin.
Mexico is also getting a thirty day delay on tariffs. President Trump says he's gotten a similar border security agreement from President Claudia Shanbaum.
They've agreed to put in ten thousand soldiers permanently like forever ten thousand soldiers at their side of the border and stop fentanyl and illegal aliens from coming into our country.
The President Trump's deal with Mexico similar to one from the Biden administration. Mexico also agreed to send ten thousand troops to its own southern border in twenty twenty one one. President Trump says the US will negotiate now with both Mexico and Canada over the next thirty days on a more permanent economic deal.
Well, Nathan, We now turned to the latest developments in the War overseas. President Trump wants an agreement with Ukraine to access its critical mineral resources in exchange for US aid and its defense against Russia.
We're telling Ukraine they have very valuable rare earth. We want what we put up to go in terms of a guarantee. We want a guarantee we want. We're handing the money, handover fist. We're giving them equipment. European is not keeping up with US.
Ukraine has significant reserves of uranium, titanium, lithium, and graphied which could be worth trillions of dollars, and President Vladimir Zelenski offered Western allies access to these resources as part of his victory plan last year.
Well, meanwhile, Karen, President Trump is going to meet later today with Israeli Prime Minister Benjamin Natanyahu in Washington. Bloomberg Zamy Morris has a preview from the nation's capital.
Israeli Prime Minister Benjamin Nettanna, who says being the first world leader to visit the White House and meet with the President since his inauguration sends a strong signal.
I think it's a testimony to the strength of the Israeli American alliance.
The meeting comes as US and Arab mediators begin brokering the next phase of a ceasefire agreement. Nataannahuo plans to discuss with President Trump critical issues facing Israel and the region, including victory over Hamas, achieving the release of the remaining hostages in Gaza, and dealing with the Iranian access Amy Morris Bloomberg Radio, All.
Right, Amy, thank you. By the President has signed an executive action to create a sovereign wealth fund for the US Treasury Secretary Scott Bessend and Commerce Secretary nominee Howard Lutnik will be spearheading the effort. Here's Bessend.
Within the next twelve months, we are going to monetize the assets side of the US balance sheet for the American people. Where are going to put the assets to work? And I think it's going to be very exciting. We've study best practices has done around the world.
And Treasury Secretary Scott Besson said the fund would be created within the next twelve months and could be used to facilitate the sale of TikTok.
Well, let's turn to markets now, Karen, as we watch futures move lower once again this morning, this time on the China US trade WARRIS and P futures are down about two tenths of one percent. Stocks paired their losses yesterday after the US agreed to delay tariffs on Canada and Mexico. The SMP closed down three quarters of one percent, after being nearly two percent lower earlier in the session.
Well one stock that's on the move this morning, Nathan is Pallenteer. The shares are up more than eighteen percent. The software company is out with the full year revenue forecast that exceeded analyst estimates. Begin more with the Bloomberg's Charlie Pellett.
CEO Alex Karp cites what he calls untamed organic growth in demand for its artificial intelligence software. Derek John is senior investment strategist at Crane Funds.
We see Patentier, host of Time Show, to become the go to operating system for enterprises in the AGI world.
A reference to artificial general intelligence, best known for its national security work and more recently its AI platform. Palenteer stock searched three hundred and forty percent last year in New York. Charlie Palette, Bloomberg Radio, Thanks Charlie.
Looking overseas, shares of UBS are down nearly six percent. The bank beat earnings estimates, but concern persists over a potentially substantial increase in capital requirements. In an interview with Bloomberg CEO Sergio or Mighty Warren, markets may not fully reflect the impact post by President Trump's tariffs.
I can see inflationary pressure coming out of tariff tariff war, and that in turn would mean that central banks would need to stop their easing path, potentially even reverse something that is not priced in the market.
UBS CEO Sergio Ormudy also says the bank aims to buy back up to three billion dollars of a its own shares this.
Year and staying in Europe, Nathan shares a Diagio are down about eight tens of a percent. The maker of Johnny Walker, kennel I and Casamigos is scrapping its sales target as it deals with sluggish growth and a possible tariff battle in the US, its biggest market. About forty five percent of Diagio's US sales are from products made
in Canada and Mexico. Time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Maher.
Michael, good morning, Good morning, Karen, Democrats are upset about the abrupt shutdown of the US Agency for International Development. Republicans say they welcome to move. The independent federal agency is approved and funded by Congress, but over the weekend it was essentially shuttered by the Department of Government Efficiency or DOGE, headed by billionaire Trump ally Elon Musk. Democratic Senator Brian Chats of Hawaii called the move flatly illegal.
This is about, literally, do we uphold the rule of law in the United States.
One of those employees was Christina Dry, a speech writer for the agency. Dry says she was locked out of her computer without notice.
Literally, you put an email fixed to yourself, you put it download any of your work, and you couldn't.
Communicate people like me who had access to BOKES and even get this email to not come in.
I heard about that through the grape vine.
Democrats are asking if Musk has the power to shut an entire agency. Whye House Press Secretary Caroline Levitt responded.
I can confirm he's a special government and employee. I can also confirm that he has abided by all applicable federal laws.
It comes as news that DOGE now has access to the Treasury Department's payment system. Secretary of State Marco Rubio, visiting l Salvador, announced an offer from the country's president to accept deportees from the US and jail violent American criminal citizens now in prison in the US as well.
He has agreed to except for deportation any illegal alien in the United States who is a criminal from any nationality, be they MS thirteen or train that Agua, and house them in his jails.
A US official said that Rubio spoke that the Trump administration had no plans to try to deport American citizens, but that the offer was significant. The US government cannot deport American citizens. Finally, the son of billionaire New England Patriots owner Robert Craft plans to run for mayor of Boston. Josh Craft will formally announce his campaign later this morning. Josh Craft will run against first term mayor Michelle wou. He says his number one priority is to lower the
cost of housing. Global news twenty four hours a day, whenever you want it with Bloomberg News Now. Why Michael Barr and this is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports update, brought to you by tri State out Here's John stash Hour, John good morning, Good one up.
The Garden Knicks and the much improved Houston Rockets, who threw three quarters at an eleven point lead. So in the fourth, the Knicks look to their captain Brunson against Thompson gets inside La off the hotness, the Brunson barrage continuers shot.
Make it here on the fourth quarter.
Bronson has been the catalyst.
He's made all of bacousa a minute remaining, Brunson at three damn tail.
Brunsen does it again. Tied up Rockets a MSJ. Knicks won one twenty four to one eighteen. He scored forty six points in the fourth and seven seen of those by Brunson, who finished with forty two. He's third and Knicks history with now eighteen games of forty or more. He's only in this third season with the team. Mix wat tonight in Toronto. Rockets go to Brooklyn, top two in the East, meet tonight Boston at Cleveland. The Cavs are forty and nine and West leading Oklahoma City with
a blowout went on Milwaukee. The Thunder now thirty nine and nine at the Guard Tonight it's red hot Saint John's riding in an eight game winning streak, looking to remain unb at home and taking on Marquette, top two teams in the Big East. Baseball has fired umpire Pat Hoberg, who didn't work any games in twenty twenty four due to an investigation that determined Hoburg shared a betting account
with a friend who bet on MLB games. Holburg said he's embarrassed, but that he never bet on baseball himself. He can apply for reinstatement next year. Chats and Eagles in New Orleans, so some familiar faces for Super Bowl opening night for Patrick Mahomes and Travis Kelseats their fifth Super Bowl in six years, but it's the first for sa Kuon Barkley, who on Sunday will try to win a Super Bowl on his twenty eight birthday. John Stasheware Bloomberg Sports Karen.
Nathan Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager, and the opening shots have been fired in a new trade war between the US and China. After President Donald Trump slapped ten percent duties on Chinese products just after midnight East Coast time. Beijing has responded with levies of its own on US energy and agriculture equipment, blacklist designations for a couple of American companies, and an anti trust investigation into Google. For the very latest,
we're joined by Bloomberg News Global Trade editor Brendan Murray. Brendan, good morning. What to make of this response from China? Is it a full tit for tat against the ten percent tariffs?
Good morning.
I think the way it was characterized is right. These are opening salvos from both sides. A ten percent tariff on Chinese imports into the US is not really going to change the dial all that much in terms of trade flows between the two countries. China's retaliation is viewed as fairly measured. They launched an anti trust investigation into Google, but Google search services have been unavailable there, so you know,
they kind of sort of a paper tiger response. But basically, this is the dance that the that the two the world's two largest economies, will do that will bring them to the table. President Trump will meet with President She undoubtedly in the weeks ahead, and they'll start working out a deal. If they can't, then then we will see a trade war. And you know, to ten percent tariffs that that Trump has put on China could become sixty percent.
And an investigation, you know, this one that we saw into into Google, you know, could could turn it turn its crosshairs to a company like Tesla, which you know has a big operation in China and obviously would make much more of an impact in the White House than this than this other investigation has.
Given what's being described as a muted response from China. Could it have afforded to do more given the struggles that we've seen of in the Chinese economy.
Not really, I mean this is this is this is Beijing's way of saying, we're ready to deal with you, and let's let's get to the table and start and start negotiating that if they wanted to do you know, much harm to the to the US economy, they would have to come with a with a whole lot more than what they did. That's not in their interest right now. As as you suggested, their economy is is on is
on the back foot, and they need to. They need to make sure that they maintain some sort of reasonable relationship with the US economy right now rather than cut it off completely.
Do we have a timeline on when Presidents Trump and She could speak and what would the contours of a deal between these two countries potentially look like.
Well, if if you take the previous deal, we don't really know the timetable. Uh. The President Trump is supposed to meet with a number of leaders in the in weeks in the weeks ahead, uh, and President She will
certainly be one of those. The contours of any particular deal, you'd have to look back to the blueprint, a blueprint that we saw five years ago when Trump announced his quote unquote Phase one agreement they could go back is something like that where China agrees to, you know, purchase, you know a certain amount of American exports, agriculture, energy, those kinds of things. But you know, the President Trump
is transactional. He's going to want something in return for keeping tariffs off of Chinese imports.
And speaking of that transactionality, in our last minute, Canada and Mexico, we're supposed to get twenty five percent tariffs after midnight. Now that's been delayed another month. What's that say about the seriousness of the tariff threat from the President.
Well, it says that he's got, you know, he's got he's playing his poker hand pretty carefully when it comes to those two countries there were those are obviously more and more allies than China would be that and we're connected the US is through through you know, a free trade agreement across the North America. So it says that he walks away with you know, a pledge to for the for both Canada and Mexico to titan border security, to migration and the flow of drugs. But it essentially
kicks the can down the road. In thirty days from now, we're going to be having a similar conversation about whether those threats of tariffs are more of a bluff or they're for real.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide on serious XM Channel one twenty one.
Plus listen coast to coast on the Bloomberg Business App now with Apple CarPlay and Android auto interfaces.
And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now and your favorite podcast platform to stay informed all day.
I'm Karen Moscow and I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg.
Dave Ray