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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today here.
And we begin with the latest on the US trade war with Canada and Mexico. President Trump is giving a one month reprieve from twenty five percent tariffs to goods covered under the US Mexico Canada Trade Agreement. The President says he made the move after speaking with Mexican President Claudia Schenbaum about drug and immigrant flows.
We're working much harder lately. Do you notice that on people coming in and drugs? And we made tremendous progress on both.
Still, the President says the break won't last after April second, that is when he has promised reciprocal tariffs on a range of countries. And he says he's not concerned about the market selloff that followed the new tariffs.
Basically, you have globalist companies that have been ripping us off that won't be able to rip us off any longer.
President Trump's decision means automobiles and parts that meet USMCA requirements will be exempt from tariffs, but about sixty two percent of Canadian imports will still be subject to a twenty five percent duty.
Well, Nathan, Canada is responding to President Trump's tariff pause with one of its own. It's stillaying a second phase of retaliatory tariffs on US steel, aluminum, and cars until April second. It was supposed to take effect March twenty fifth. Canada has already imposed twenty five percent tariffs on about twenty one billion dollars in American goods. Those duties will remain in effect.
Meanwhile, Karen China remains under twenty percent tariffs from the US, and now the country's top diplomat is blasting President Trump, saying he's taking a hypocritical approach to bilateral ties. We get more from Bloomberg Steven Engle at the National People's Congress in Beijing.
Chinese Foreign Minister Wonge is known for having a rather sharp tongue, and today, in a one and a half hour long press conference in Beijing, he did not disappoint attacking the Trump administration on a number of fronts, including trade. Of course, the Trump administration doubled down on its terrifaction against China earlier this week, raising it to twenty percent, and China of course retaliated, but Wong twice referred to the Trump administration as employing the law of the jungle.
Veiled reference, of course, to the Trump policies on trade. He called on larger nations another veiled threat against the United States to act responsibly and not resort to flexing its large muscles and fists. He says, China opposes double standards, trickery and bullying. Steven Engel, Bloomberg News, Beijing.
All right, Steven, thank you. We now turn to the latest developments in the war in Ukraine. In twenty six, European Union leaders back to declaration of support for Ukraine at an emergency meeting in Brussels. Hungary's Russia friendly Prime Minister Victor Orbon was the only one who did not sign on. French President Emmanuel McCrone said the EU needs to boost defense spending.
Lemanessi Quiki had given the threat and whatever happens in Ukraine, we need to increase our defense capabilities and we need to build in the next few years autonomous defense capabilities for Europeans.
French President and Manuel Macron spoke through an interpreter as the US pairs back its protective role. President Trump has suggested the US might abandon its NATO commitments if other members don't meet defense spending targets.
Well Karen uncertain deal over tariffs led to a volatile week on Wall Street. Bloomberg's John Tucker's here at the update. But John, the week's not over yet.
Well take heart, Nathan, the weekend's almost here now. As you just heard, the idea of a Trump put as pretty much evaporated after the President said quote I'm not even looking at the market. Well, the NASAK one hundred from its peak is now almost ten percent. That's the
level that would market correction. The S and P five hundred is on track for its worst week since September, and underscoring this growing risk, Aversions stocks failed the stage of rebound even after the President delayed those tariffs on Mexican and and goods for Steve Chevaron at Federated Armies. The markets are becoming more reasonably priced.
I think that that ball of worry is going to get knocked down or taken down brick by brick as we get in the second half of the year, so more pain to come.
We see a much much better second.
Half, and it's not just stocks. At this point. Oil continues. It's slump that's on the idea of slower growth is going to lead to slower demand. The largest digital asset, Bitcoin, that is lower. That's even after President Trump signed in executive order creating a Strategic Digital Token Reserve. The details, however, fell short of industry expectations. You know, New York on John Tucker, Bloomberg Radio.
All right, John, thank you well. Bitcoin may be on the decline. One chip stock is on the rise. Shares of a Broadcom. They're up almost thirteen percent. This morning, the key chip supplier for Apple and other big tech companies posted earnings that beat analyst estimates and also gave an upbeat forecast, reassuring investors that artificial intelligence spending remains healthy. Lin Dwaan is a managing editor of technology for bloom News.
This is what the chip sector needed, right. It needed a bright spot in Nvidia disappointed, which wasn't fair. Marvell disappointed, which also wasn't fair. Both of them beat, but not by enough. They wanted it to be overwhelming. Broadcom is delivering on a beat, and it's a very solid beat.
Bloomberg News Managing editor Linda Wallan says Broadcom's AI sales totaled four point four billion dollars in the quarter, and.
Karen's shares of Gap are surging up more than eighteen percent in the pre market. The retailer exceeded analyst estimates for comparable sales, led by better than expected results at the namesake brand as well as Old Navy and Banana Republic.
Well on the flip side, Nathan shares of Hewlett Packard Enterprise, they're plunging down more than well, almost twenty one percent right now. The company gave an annual profit outlook that fell short of investor expectations. It also announced plans to eliminate about three thousand positions.
Now we're going to get a lot more on the labor market picture, Karen, when we get the February jobs report, and we get a preview now from Bloomberg's Michael McKee.
The chaos of the Trump administration's first weeks is swirling around today's jobs report. Tariff talk has given us conflicting signals about the strength of the labor market from a host of labor indicators. Economists are generally looking through the noise, anticipating about the same number of jobs created in February as in January. The biggest reason is the timing of data collection the pay period, including the twelfth of the month.
The big firings didn't really begin until the fourteenth, and so wouldn't be captured. Wall Street, however, is leaning toward a much lower number on fear the economy is slowing growth threatened by Trump tariffs that could mean volatility today, even though FED officials have already signaled their staying on hold no matter what. Michael McKee, Bloomberg Radio.
All right, Mike, thanks and stick with Bloomberg for full Jobs Day coverage on Bloomberg's surveillances starts as soon as the numbers cross the terminal eight thirty am Wall Street Time. Listen on Bloomberg Radio, Watch on the Bloomberg Podcasts YouTube page.
Well Nathan.
In addition to the jobs report, investors will be on alert as a number of FED officials speak, and Bloomberg's Charlie Pellett has the latest.
J Powell gives a keynote speech at an event in New York hosted by the University of Chicago Booth School of Business. New York FED President John Williams and FED Governor Michelle Bowman will also speak. Investors are listening for any remarks about the path of interest rates, the effects of tariffs, and the outlook for inflation. Here's Federal Reserve Bank of Philadelphia President Patrick Harker.
Inflation while we were moving slowly down through our two percent target. I'm worried that right now that that is at risk.
FED officials have signaled they are likely to leave rates unchanged for some time in New York. Charlie Pellett, Bloomberg Radio.
Charlie, thank you, and you can hear J Powell's full remarks at twelve thirty Wall Street time. That's on Bloomberg Radio and the Bloomberg Podcast page on YouTube.
Well, Karen elon Musk's SpaceX has suffered another setback. We get the details on the latest test flight from Bloomberg's Lisa Matteo. Didn't go so well, Lisa, So.
It didn't Nathan. This was actually the eighth test flight of its starship rocket and things really started out great, and when it blasted off yesterday from South Texas, and then this happened.
And we just saw some engines go out.
It looks like we are losing attitude control of the ship.
Yeah, this was just eight minutes into the flight. It began spinning wildly out of control. The thing is some engines. They started to malfunction before they were supposed to cut off, and the mishap becaused the FAA's Air Traffic Control System Command Center to actually pause takeoffs from some Florida airports due to space debris. Now in a post on x Elon, Musk called it quote a minor setback. He also said the next ship is going to be ready in about
four to six weeks. Meanwhile, Intuitive Machine second lander Athena, it also had some issues, and that's when it was trying to land on the Moon yesterday, after the company couldn't confirm its status. Its CEO said it was not likely in the right position on the surface. Again, Intuitive Machines shares well, they're down more than thirty four percent. Lisa Matteo Bloomberg Radio.
Time Now for a look at some of the other stories making news in New York and around the world, and for that were joined by Bloomberg's Michael Varr. Michael, Good morning, Good morning, Karen.
The South Korean court has ordered impeach President Yunsukiol to be released from jail more than a month after he was arrested and indicted over his short lived imposition of martial law. The decision by the Soul Central District Court would allow you to stand his criminal trial while not being physically detained. The court said it accepted Yun's request to be released from jail because the legal period of
his formal arrest expired before he was indicted. In late January, federal authorities revealed two active duty service members were arrested on accusations they conspired to spy for China. The Justice Department says US Army soldiers conspired to illegally obtain national defense information and send it to individuals in China. The soldiers were stationed at Joint Base Lewis McCord in Washington State.
Mike Harrington, special Agent in charge of the FBI Seattle Field Office, said there is reason to believe some of the data is top secret information.
That identifies saw the United States military's capabilities, plans, and intentions and could really put us at a severe disadvantage if they were to fall in the wrong hands.
The FBI's Mike Harrington says a third suspect, a former Army soldier, was also arrested during a kickoff event in Miami Beach, Florida. Governor Around Dessanta's unveiled plans for increased security in places like Miami Beach for Spring Break twenty twenty five.
It's a very welcoming city. But at the same time, you know, we can't have things just descended to madness in mayhem and chaos.
Governor Desanta says he has deployed one hundred and forty state troopers to assist local law enforcement efforts. 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 Hurry, Michael Barr, thank you time now for the Bloomberg Scores update, brought to you by Try State OUTI here's John Stanshawer. John, good morning, Good morning care.
Not the way the Knicks wanted to be in their five game road trip in LA against the Lakers. A blown lead and almost game winning shot at the end of regulation, but Josh Hart's layup came a tick after the buzzers down, and then with a minute a half left, in overtime, Jalen Brunson rolled in his ankle. Lakers went on to win one thirteen, one oh nine. They're two superstars. Lebron James and Luca Donson's combined for sixty three points,
nineteen rebounds and twenty assists. Brunston scored thirty nine before he had to be helped off the court. Coach Tom Thibodeau said they're awaiting test results, but Brunson's close friend Hart said it looks like Brunston's gonna be out a while. He's the nick they can least afford to lose. In Brooklyn Warriors the Nets one twenty one, one nineteen. Steph Curry scored forty. In Boston Celtics met the Sixers won twenty three, one oh five. Jason Tatum at thirty five.
Bruins lost at Carolina three to two. NHL trade deadline three o'clock today, the Islanders have traded Brock Nelson to Colorado for two players in the first round pick Nelson and an Islander for twelve years. He'll be a free agent after the season, so will Riley Smith. That's why the Rangers shipped him to Vegas for Brendan Bisson and the third round of Smith was with Vegas before helping the
win the Stanley Cup couple of years ago. Yankee injury news Luise heals latstrain gonna prevent him from pitching for at least three months. Dj Lemaye, who's missed time with the recent injuries to his toe, foot and hip, now has a calf strain out several weeks. And Yankee Jim manager Brian Cashman asked about Giant Carlos Stanton's injured elbows.
He thought we were in a good place and I think he was feeling making a good place, but then it reared. It's uckily had you know about three weeks before camping is my understanding, and so now we're dealing with him.
So uh, you know, give it the time of.
Needs and you know, we'll clearly look forward to getting them back at some point, but obviously in the near term that will be the coast.
Cashman said they treated Stanton with plasma injections. He said surgery have seen only as a last resort. John Stash, I we're Bloomberg Sports, Karen.
Nathan, all right, John, thank you. This updates brought to you by Audi visit your tri state Audi dealer today and get behind the wheel of the Audi model you've always wanted.
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This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager, and we get our first official look at the labor market from the start of the new Trump administration. This morning, the non farm payrolls report for the month of February comes out ahead of the opening bell, and here to preview it for us in our interactive Brokers studios this morning. Veronica Clark, us economist at City. Great to have you with us in
person on a job's Friday. With the consensus calling for one hundred and sixty thousand new jobs added, the unemployment rate at four percent, you're a bit below consensus at one thirt five.
Yes, yeah, exactly, Thank you for having me. Yeah, we do think we'll see some more slowing in the labor market in February, but one thirty five thousand jobs at it, that's still a pretty healthy pace of job growth. Might see the unemployment rate take a bit higher to four point one percent. But I think the issue with this February reading is it's still a bit early. It's not going to get into new government layoffs in the last couple of weeks of sentiment really shifting. It's certainly not
going to cover a period of two substantial teriffs. We saw some tariffs on China, but the outlook I think would look a lot weaker going out going.
To old That is interesting because Bloomberg Economics is going even farther below consensus with sixty five thousand on the thinking that we could start to see some of that impact of federal government slow down in hiring impacting other sectors. Could we start to see that even before many of these ade layoffs start to feed into the data even more.
Clearly, Yeah, yeah, we certainly could. I think you know, other labor market data that we do have for February, we got announcements of job cuts yesterday that we're pretty elevated. Probably takes a bit of time for those to show up in actual layoffs. We do know that, you know, initial jobless claims we're mostly low through the first half of February, but yeah, we might start to see some slowing and I think the issue is, Yeah, as we're getting into the next couple of months, we're coming into
the bigger headwinds. So if the labor market is already slowing in February, that's a worse situation going into even more weakness.
Well, let's look ahead over the next couple of months. How much weakness do you think we could see from some of this Doge effort.
Yeah, we're of course trying to track the headlines. I think, like everyone else's still a lot of uncertainty. So far, we're tracking something maybe around forty to sixty k that have already happened or could happen in the next couple of weeks. As we're getting into the summer, that seems like when we might see some of the bigger layoffs, maybe something as much as three hundred thousand. Now that's going to be worth probably a couple tenths of an
increase on the unemployment rate. But what worries me more is the spillover into the private sector, you know, private contractors, people who rely on government funds, and just the increase uncertainty and what that could do to hiring, especially as we're getting into the spring and summer. That's a time of year when hiring is supposed to pick up, and maybe it doesn't.
Now we haven't even talked to you a bit about the uncertainty sparked potentially by the tariffs. How could that play into the labor picture as well?
Yeah, it is I think just a really hard time for some companies to be hiring. Of course, in manufacturing sector, sectors that rely on on those trade relationships. We have seen some surge in activity potentially before tariffs, you know, frontloading of imports. Maybe consumers are buying goods ahead of possible tariff induced price increases. But overall that's going to weigh on spending and way on activity, and we might see resulting job losses.
Do you see it weighing on wages as well? How does it affect the wage picture?
Yeah, it is is an interesting question.
It could.
I think overall it would probably be you know, net negative for wage growth, just in the fact that it is an activity shock first and foremost. You know, maybe if we're eventually bringing production back to domestic production, that could boost wages, but that's an effect longer down the road, I think.
Just thirty seconds left, Veronica, But do you see any sectors that could pick up the slack from some of this uncertainty.
Yeah, I mean we have seen, you know, where we've seen the consistent strength in the economy recently the last couple of years really has been sectors like healthcare, and I expect that to continue. But even they're going to be facing uncertainty of you know, medical funding cuts, research cuts, things like that. We did earlier this week see ADP employment and saw decline in that sector. We'll see if that's repeated. But overall, software activity is going to on the economy as a whole.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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