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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 Donald Trump's push for tariffs. The President says he will likely impose duties of around twenty five percent on imports of cars, semiconductors, and pharmaceuticals. He says he'll announce the new charges in April. As heard here on Bloomberg Radio, Trump spoke to reporters at his mar Al Lago club in Florida.
It'll be twenty five percent and higher, and it'll go very substantially higher over a course of a year. But we want to give them time to come in because, as you know, when they come into the United States and they have their plant or factory here, there.
Is no tariff. So we want to give them a little bit of a chance.
Again, that was President Trump at mar A Lago. Now, new tariffs on cars would have sweeping effects on the industry. The roughly eight million passenger cars and light trucks into the US last year accounted for about half of US vehicle sales.
Well, Nathan, President Trump is promising to cut hundreds of billions of dollars in waste out of the federal budget. The President defended the doge effort in an interview on Fox News Channel's Hannity program, alongside the man who's spearheading the cost cutting drive, Elon Musk. The overall goal is to try to get trillion dollars out of the deficit, and if the deficit is not quote under control, America will go bankrupt.
This is a very important thing for PreO Will to understand.
Elon Musk had talked about cutting two trillion dollars during the campaign. President Trump heaped praise on the world's richest man during the interview.
He's a leader. Yeah, he gets it there. You get a lot of tech people, and you have people that go.
To a tech but he gets it done.
And the President tells Foxes Sean Hannity, if Musk has any business conflicts with his work on spending cuts, he won't be involved.
Well, Karen.
Treasury Secretary Scott Besson says Elon Musk's Department of Government Efficiency is saving the country tens of billions of dollars and also spoke on Fox News.
I think I saw an estimate today of about fifty billion. So that's a very good start, and I don't think it's unreasonable to think that we could have several percent of GDP that we are saving.
Treasury Secretary Scott Besson also says taxpayers don't need to worry about the security of their private data, while Elon Musk's team seeks to make the federal government more efficient.
Well to foreign Policy Nathan, Secretary of State Marco Rubio said the US will keep sanctions on Russia at least until a deal is reached in the conflict in Ukraine. Rubio spoke to European allies after joining other US officials in Saudi Arabia for the highest level face to face meeting with Russian counterparts since Moscow's invasion in twenty twenty two.
I came away today convinced that they are willing to begin to engage in a serious process to determine and how quickly and through what mechanism can and be brought to this war. Whether we can ultimately reach that outcome will obviously depend on every side in this conflict's willingness to agree to certain things.
Secretary of said Rubio says an end of the war would open quote incredible opportunities to partner with the Russians. President Trump's Special Ukraine Envoy, Keith Kellogg, is now arrived in Kiev, a day after the Russia talks.
Back in Washington, Karen Howard Ludnik has been confirmed and sworn in as Commerce Secretary. As a result, he's named his two eldest sons and three company deputies to run the core of his business group following his resignation from Canterer Fitzgerald. Lutnick also says he will divest his business interests within a few months of his appointment.
Well.
Back in New York, Nathan Mayor Eric Adams will face a federal judge in Manhattan later today. You will decide whether to grant the Justice Department's request to dismiss corruption charges. Just weeks before in April, trial begin more with Bloomberg's and Keleggi in New York.
Judge Dale e Ho said the parties in the case must be prepared to address the reasons for the government's dismissal request. On Sunday, Adams told reporters his ability to lead through turmoil should be noted.
Go back and doing analysis from the data I was invited to what we have accomplished.
That is my ability to lead through turmoil, and I'm going to continue to do that.
Adams has pleaded not guilty to charges that while in his prior role as Brooklyn Borough president, he accepted over one hundred thousand dollars in illegal campaign contributions and lavish travel perks from a Turkish official and business leader seeking to buy his influence.
Ed Kleggy Bloomberg Radio, all righted, thank you.
X is marking the spot for Elon Musk Lately, Bloomberg News has learned Musk's social media company X is in talks to raise money at a forty four billion dollar valuation. That's the same price the billionaire paid three years ago when the company was known as Twitter. The funding ground would be a remarkable turn of fortunes for X after Musk's takeover and overhaul caused many users and advertisers to flee well.
Turning to the markets, now, Nathan stocks begin the trading session in record territory irrallyan chip makers drove the S and P five hundred to an all time high. Global stocks have become the most popular asset class with investors, according to a survey by Bank of America, investors are showing the biggest willingness to take risk in fifteen years. Fund managers cash levels fell to the lowest and twenty ten in that survey.
And as stock Sorda records, Karen the CEO of one of Wall Street's biggest banks, is benefiting. City Group has lifted Jane Fraser's total compensation to thirty four and a half million dollars for twenty twenty four. That is a thirty three percent increase from the prior year. Jane Fraser's pay rise comes after City Group posted record revenue in three divisions and in.
Europe, Nathan HSBC said it will incur one point eight billion dollars in charges over the next two years as it embarks on a global restructuring program. Europe's largest lender hopes the restructuring will allow it to whittle away three billion dollars in expenses in the coming years, with about half of that to be reinvested into priority grows both areas.
And it's time now if we're looking at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's John Tucker John, Good morning.
And good morning, Karen. Investigators that were viewing monday's crash at that Delta Regional jet at Toronto appears in the International Airport. The plane's cockpit voice recorder and flight DITA recorder have now been recovered. They're also talking to passers and crew. John Nelson was among the passengers.
We hit the runway extremely hard and we kind of popped up and felt like we were leaning to the left. There was a giant firewall down the side. I could actually feel the heat through the glass, and then we were going sideways. I'm not even sure how many times we like tumbled.
The plane flipped over after landing. It's the fourth major aviation accident in North America in the past three weeks. There were nearly two dozen people injured, but all eighty on board escaped Flight forty eight nineteen with their lives. A blast of Arctic air has much of the nation continueing in that deep freeze. Let's get the update this morning from Bloomberg meteorroologist Rob Carolyn John.
Bitter cold will continue to stretch from the coat Is into portions of Texas. It'll make its way into the Gulf coast and eventually portions of the southeast by tomorrow. We're looking at some spots watching their temperatures run fifty degrees below normal today. Now at ahead of the cold here, we've got a storm system that will bring snow to parts of Tennessee, Kentucky, Virginia, and North Carolina today.
That's Bloomberg Meteorologist Rob Carolyn Hamas says it's ready to exchange its remaining Israeli hostages for Palestinian prisoners. It would come in the second phase of the Gaza Truce, leading to what they say would be a permanent ceasefire at Israel's full withdrawal from Gaza. Asap, Rocky dove into the arms of Rihanna as a court clerk read the not guilty verdict at his trial on two filain a counts
of assault with a firearm. The Los Angeles courtroom, full of fans of the hip hop performer and is singing superstar partner, exploded into screaming glee. After a three week trial, the jury deliberated for just three hours to reach the verdict that spared Rocky prison sentence. The Vatican reported the diagnosis for the Ponta now more serious than originally thought. Both Francis is now fighting pneumonia. The eighty eight year old had a cat scan which showed that he now
has an infection in both of his lungs. Global News twenty four hours Day and whenever you want it with Bloomberg News Now.
I'm John Tucker. This is Bloomberg Karen.
All right, John, thank you time now for the Bloomberg Sports Update, brought to you by Tri State Anti. Here's John stash Hour, John, Good morning, Good morning, Karen.
Every baseball off season that appears to be one or two big name free agents A couple of years ago, Aaron Judge, Joeyotani than once sot Of, Vladimir Guerrero Junior. Maybe not quite at that level, but he's still only twenty six and last season in Toronto he hit three twenty three with thirty homers forty four doubles. He had set a deadline of yesterday to get a long term deal done with the Blue Jays. The deadline, as Guerrero said, they had their numbers, I had mine. He's another one
apparently betting on himself. Unless something changes, he'll be a free agent after the upcoming season. Like Soto was, of course, went from the Yankees to the Mets, making for high hopes for Mets owner Steve Cohen. He was asked yesterday in Port Saint Lucy his goals for the upcoming campaign.
Yeah, you always want to set high standards and high goals. There's no guaranteeing anything, right, It's really hard to win a World Series. But the thought of, you know, we're putting together a team, not just a team good for one year, but we want to create sustainable success. And if we keep making the playoffs, you know, why can't we find you know, ultimate again, know, get to the ultimate goal?
Doone admits that with the Soto signing and others, they blew through their budget. Saint John's only lost one since twenty twenty five. Red Storm ranked tenth in the country. They are a top the Big East by two games, having won the Big East regular season since nineteen eighty six. Play tonight at DePaul, seating all off the stunning upset of you co on over the weekends.
Last night at.
Marquette eighty to fifty six. While the Huskies were back home, they beat Villanova sixty six to fifty nine. The NBA's back Tonight one game. It's a makeup in LA due to a postponement during the fires. The Lakers play Charlotte, third Laker game for Lukey Donsons, but Lebron James unlikely to play, has got that ankle injury that kept me from playing the All Star Game. Knicks are back tomorrow at the Garden against Chicago, and also tomorrow in Boston.
It's the US and Canada the fourteen faceoff Championship game. Several US players nursing injuries, but only one has been ruled out. Bruins defenseman Charlie Mackabor, John Stashie, I War Bloomberg Sports Care.
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.
President Donald Trump's Special Envoy to Ukraine, Keith Kellogg, has arrived in Kiev for talks with President Vladimir Zelenski. A day after the first high level meetings between the US and Russia the invasion in twenty twenty two, and following that summit in Riyad. Secretary of State Marco Rubio said, it is important to reset the US Russia relationship.
We haven't really had much engagement with the Russians for almost three years, and it sets the table for future conversations. How that turns out, we'll be up to the parties and their willingness not just to make commitments but to live by them.
That'll be tested in the weeks to come, and for some analysis. We are joined now by Bloomberg opinion columnist Mark Champion. Mark, thanks so much for joining us this morning. And also following this meeting, Secretary of State Rubio said that sanctions will remain in place on Russia at least until there is a deal to end the Ukraine conflict. I guess the question is whether the conflict is going to end quickly?
Good morning, Yes, I mean it.
At the moment, it looks as though the US is moving very quickly to end the conflict. That is going to be worrying much as the Ukrainians want to see the war end, and certainly also the Europeans.
Is going to be worrying to both simply because.
You know, the the quicker you want to end it, the easier you know, the path is that takes you to giving concessions to to Russia and making enforcing concessions on the weaker parties, which is both Ukraine and Europe. And at the moment it does rather look as though we are you know, headed in that direction.
The Ukrainian side says it wants security guarantees. The US has said it recognizes that what could security guarantees look like?
Well, that's you know, for the Ukrainians, that's the most worrying thing they can deal with, you know, territorial losses at least a facto if you know, if not to jury. But what they've always said is they have to be as solid security guarantees because we know that the Russians will otherwise be back. This happened after twenty fourteen, when
they made a deal that didn't include security guarantees. You know, the original you know, Budapest memorandum that under which Ukraine gave up its nuclear weapons also said that you know that the various parties, including Russia, would guarantee Ukraine's borders, but there weren't any concrete security guarantees in there. And you've had you know, invasion of Ukraine by Russia and you know, no Western troops into support, you know, to
follow up on the Budhapest, MEPARANDUS. So the Ukrainians have very bitter experience about this, and they are quite united about it actually, and you know, so I think, you know, there is a real possibility you end up with a situation in which the Americans say, okay, we've got a deal with the Russians, and then the Ukrainians say, we
don't accept it. And you know, the at the moment, both the Kremlin and President Trump yesterday and some extraordinary remarks are pushing for elections that would get Zelensky replaced. But I suspect that that would you know, he in these circumstances, with such a deal being pushed on them, if that, if that's how it goes, he might he might well. If elections were held, it should be very difficult and non constitutional, he might well win. And you know, so I think it's a it's a we don't know
yet how this is going to turn out. We don't know yet how much the US will give away with Ukraine and Europe not at the table. They've already given away, you know, most demands that the Russians have They said that, you know, Ukraine will not be admitted into NATO, that it will not get its territory back, and that the US will you know, will not provide involved in leading
on security guarantees. And it's more or less just sort of shrugged at shoulders and said that if Europe wants to send He's keeping force in then that's fine by the US.
But so far we haven't seen a lot more commitment.
So in our last minute, mark, how important are these conversations going to be between the especially Ukraine Envoy Kellogg and Ukraine's president a day after Ukraine wasn't included in these Russia at tacks.
Well, that's a very.
Good question, you know, so the Ukraine envoy was not at the talks.
Also, Kellogg was not at the talks.
You know, He's now going to try and reassure the Ukrainians and reassure so the Europeans.
That's kind of his job.
But you know, from what we can see in terms of who is actually you know, taking the lead, he is not the guy. You know, it's more Steve Whitcoff, who was the Trump Special envoy on Gaza also to Israel and he was at the table. Seems to be President Trump's fixer, So you know, it's yeah, it's again.
It's too early to say.
Exactly how this will turn out, but there are a lot of signals here that are not encouraging for Ukraine.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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