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