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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin in Washington, where, after just four days, the partial government shutdown is over. President Trump has signed his deal with Senate Democrats to reopen the government with less than two weeks of funding for the Department of Homeland Security. That's to allow more time to negotiate on democrats demands on new limits for immigration enforcement. President Trump says the new law won't stop his immigration agenda.
It continues to fund deportation flights that are removing dangers illegal aliens from our country. It continues historically successful efforts to reduce crime in our nation's capital. We have a very safe center right now.
That was President Trump at the Oval Office bill signing herd live on Bloomberg Radio. Bloomberg's Eric Wasson reports lawmakers now have just nine days to come to an agreement done reining in ice agents.
Democrats have a long list of demands, including judicial warrens and kicking masks off that Republicans are really not willing to entertain, and it's just very hard. The House would have to pass this very early next week for the Senate in order to take it up and get it done by February thirteenth. I don't see that happening, Bloomberg.
Eric Wanson reports if they don't reach a deal by next Friday, FEMA and TSA employees could start to miss paychecks. ICE and Border Patrol would continue to receive funds under President Trump's One Big, Beautiful Tax and Spending Cut law.
We now turn to geopolitics. Nathan Bloomberg News has learned Iran is asking the US to move diplomatic talks this Friday from Turkey to Oman cursus A. Tehran wants the talks to focus only on Around's nuclear activities and not its support for proxy Milicious in the Middle East and its ballistic missiles. President Trump has threatened to strike Iran if it does not agree to a deal, which his administration has signaled must include Iron's missiles and malicious support.
Back in Washington, Karen, the dates are set for Bill and Hillary Clinton to testify about their ties to Jeffrey Epstein. The House Oversight Committee says the former president will appear before the panel on February twenty seventh, the former Secretary of State will testify. The day before, February twenty sixth, the full House had planned to hold a criminal contempt vote against the Clintons if they continued to defy subpoenas. President Trump commented on it in the Oval Office.
So that takes care of Epstein as far as Trump is concerned. But you have a lot of Democrats out there that are very much involved with Epstein. But I'll be honest with you, You got to get back to running.
The country, President Trump, again, speaking in the Oval Office. The Oversight Committee says the Clintons have agreed to appear for transcribed filmed depositions behind closed doors. The Clinton's attorneys say they want the hearings open to the public to address their concerns about fairness.
We now turn to the markets, Nathan, where S and P futures are little changed and gold is nearing fifty one hundred dollars an hound see Yesterday techdocs fell led by the recent sell off led by software stocks and Bloomberg's John Tucker joins us with the latest John and Karen.
The theme that seems to have gripped investors is that AI is going to be able to do much of the stuff that software companies do, making their products far less important. That was reinforced when the AI firm Anthropic released an AI tool that does legal work. It looks like a case is sell now and ask questions later. Add to that the fact that investors are growing impatient about returns for all that CAPEX spending. Anika Gupta is at Wisdom Tree.
Given the fact that now we're seeing CAPEX intentions rise sixty to eighty percent and the rising of very high levels, we're now starting to see investors become a lot.
More discerning now.
In this environment, Microsoft has been crushed down close to three percent yesterday, the software giant down close to twenty five percent from October New York. I'm John Tucker, Bloomberg Radio, John.
Thanks, Big tech earnings continue today. When Alphabet reports this afternoon, we get a preview from Bloomberg's Tom Busby.
Google's parent company. Alphabet expected to post solid revenue and profit growth for last quarter, with its cloud computing division expected to get a big boost from the release of its latest Gemini AI models, which it also integrated into its Google Search and its Chrome browser. Like rivals Meta and Microsoft, A big focus for investors, though, is all the spending it's done on AI infrastructure and efforts to
power its data centers. Bloomberg consensus calls for revenue of one hundred eleven point four billion dollars on earnings per share of two dollars sixty five cents. Tom buzby Bloomberg Radio.
All right, Tom, thank you well. Sticking with earning. Shares of Advanced micro Devices down more than seven percent in early trading. The chip makers are for top analyst estimates, but its sales forecast underwhelmed investors. It's a sign that AMD is not making the kind of AI inrows that some investors anticipated.
Another chip maker is soaring in the pre market care, and that's Silicon Labs. Those shares are up more than thirty two percent. The Financial Times is reporting Silicon labses and talks to me acquired by Texas Instruments for around seven billion dollars.
Nathan Bloomberg News has learned Nvidia is nearing a deal to invest twenty billion dollars in open Ai as part of its latest funding round. It marks a chit maker's single biggest investment in the chat GPT developer open Ai is looking to raise up to one hundred billion dollars in funding for a new round, with much of that coming from large tech firms in Europe.
Parent's shares of Novo Nordisk are plunging more than seventeen percent. The pharma giant's warning of a steep decline in sales of its drugs. It says those sales will fall with as much as thirteen percent. Novo blames increased competition and lower prices for its blockbuster weight loss medicines, driven by a US government push to bring down drug costs. We spoke with Novo's CEO, Mike Doustar.
Of course, I can understand that negative numbers are not good news to the market, but once again, this is something that we had anticipated and the obesity market is quite dynamic and the reason the range has its numbers on each end and it is because so many things can happen.
Novanordesk CEO Mike Deustar says this company will start a new share buy backworth as much as two point four billion dollars.
Nathan shares of UBS they are down almost five percent. The Swiss Leander reported stronger than expected earnings and also announced a three billion dollar share buyback, but client inflows for its wealth management unit fell well short of expectations. We spoke earlier, was CEO Sergio or Modi.
The investment bank is growing well in the areas where we want to compete. Asset management is doing a good job, and the Swiss business is also holding up well despite the low rates or negative rates almost environment. And we're making also good progress on the integration. Eighty five percent of the Swiss clients of Credit Swiss had been migrated. We are delivering on our capital returns, so I can only be happy.
To be honest, ubs CEO Sergio or Modi says. The bank broadly maintained its previously signaled financial targets.
For the U and a notable Central Bank move Karen Federal Reserve Governor Stephen Myron is stepping down from his post leading the White House's Council of Economic Advisors. Myron had been on unpaid leave from his White House role after President Trump nominated him to the FED Board in September on a temporary basis to fill a vacated seat. That drew criticism from Senate Democrats, who said Myron on the FED undermined the Central Bank's credibility.
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 Barr Michael, Good Morning, Good Morning Karen.
And ongoing search continues for the eighty four year old mother of Today's show host Savannah Guthrie. Nancy Guthrie was reported missing in Pima County, Arizona Sunday. Investigators also found evidence showing there was a nighttime kidnapping. Police now trying to determine if alleged ransom notes are real. Pima County Sheriff Chris Nano spoke to reporters.
You're asked if there was any ransom, and you didn't say no.
You said, we're following all leads. Does that mean a ransom has come in?
We are following all leads we have. That's all I can tell you.
Get We've got hundreds of leads.
Sheriff Nano says, Nancy Guthrie relies on medication that she has to take daily. The Trump administration has been sued again, this time by the states of New York and New Jersey over its cutoff of financing for the sixteen billion dollar Gateway rail tunnel under the Hudson River, a day after the public commission overseeing the project filed as suit.
The States allege in a complaint Tuesday that the suspension of funds for the Hudson Tunnel project is a politically motivated attempt to punish and coerce those with whom the president disagrees. The NFL says there's no planned ice enforcement at Super Bowl sixty in Santa Clara, California. NFL's chief security officer Kathy Lanier the.
Federal presence here is consistent with past Super Bowls and other sporting OF's, like what you will see around the World Cup in the Olympics as well. There are no planned ice or immigration enforcement operations that are scheduled around the super Bowl or any of the Super Bowl related events.
NFL's chief security officer, Kathy Lanier. The mayor of San Jose, next door to Santa Clara, says he too, has been told by federal agencies there will be no immigration enforcement that could disrupt Super Bowl events. A Doberman pincher named Tenny won Best in Show in the one hundred and fiftieth Westminster Kennel Club Dog Show last night. The four year old beat out six other finalists at the show
at New York's Madison Square Garden. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. Michael Barram, this is Bloomberg, Karen.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that you bring in John stashauerd Thanks Daring.
A bunch of trades ahead of tomorrow's NBA trade deadline. James Harden goes from the LA Clippers to Cleveland for Darius Garland. A swap of point guards. Veteran Jaron Jackson goes from Memphis to Utah. He was with the Grizzlies for eight years. Point guard Mike Conley moves from Minnesota to Chicago, and center Nicolovich goes from Chicago to Boston. US flag bearers at Friday's opening ceremonies will be Bob's Letter,
Frank del Duca, and speed skater Aaron Jackson. That's your Bloomberg Sports update.
Stay with us. More from Bloomberg Day Break coming up after this.
Coast to coast on Bloomberg Radio nationwide on Sirius XM and around the world on Bloomberg dot Com and the Bloomberg Business Out. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager. The partial government shutdown maybe over at four days, but an even tougher fight remains on Capitol Hill over funds from immigration enforcement. House Speaker Mike Johnson says he's ready for it.
They say they want a real negotiation with President Trump and Republicans over immigration enforcement policy, and we are happy to have that debate.
And that was how Speaker Mike Johnson an on Capitol Hill. For more, We're joined by Bloomberg DC Breaking News editor Alexander Pearson. Alex how big a fight are lawmakers in for now over the next nine days?
Good morning, Good morning, Nathan. Yeah, the fight is probably going to be a very big one. The gap between the Republicans and the White House on the one hand, and Democrats on the other is still very large. So despite the fact that they came to this agreement to reopen parts of the government that were shut down, there is only now nine days to come to an agreement
on restrictions that Democrats have demanded on immigration rewinforcement. The problem is is that Republicans are not accepting many of those demands. Those include things like no immigration officers, not wearing masks, no identification, wearing identification, stopping roving operations in cities, and for the most part, Republicans don't want to agree to any of these. The Democrats are, for their part, say that they are not going to accept anything that does
not meet some at least some of those demands. So it's very likely that next week we could be seeing another partial shutdown that would affect the Department of Homeland Security.
How would that partial shut down affect the Department of Homeland Security specifically, because we understand that even if there were a shutdown, ICE and Border Patroller are still funded under the tax and spending cut law.
Right, Yeah, that's right, So there's unlikely to be any major disruptions to IO border Patrol because of the funding that was passed last year, those agency, those operations could
still tap into that funding for some time. What would be affected very quickly would be TSA and also FEMA, so people working in those services would miss a paycheck after if there is no funding agreement by the end of next week, and that of course could be quite disruptive, particularly for anyone who's planning to travel to fly.
See some major news later on this month, when Bill and Hillary Clinton testify about their Jeffrey Epstein ties to the House Oversight Committee. A subpoena against a former president is almost unheard of, Alex.
Yeah, that's rights. It has happened before, but it's an extremely rare event. And you know, this is obviously going to be a very high profile hearing. At the moment, it is said to be behind closed doors. It will be filmed and recorded, but they won't we won't see it live. That of course could still change, but that's
how it's being done right now. And certainly, yeah, it's it's a very significant event given that we've not seen for many decades a former president testifying to a congressional committee.
Why the focus on the Clinton specifically by the House Oversight Panel, as far as we understand.
The well, the focus is really their ties to Jeffrey Epstein. Certainly we know from the files of were released by the Department of Justice, and also prior to that that there were close contacts between Bill Clinton and Epstein, you know,
in previous decades. For his part, the former president says he was not aware of any crimes that Epstein committed, and you know it was not involved in any wrongdoing, but the House Oversight Committee will want to really check what those ties were and how that might have affected federal enforcement in terms of investigating Epstein and his ties to various parts of the government.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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