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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 two words that start with tea, Trump and tariffs. President Trump says he would prefer not to impose tariffs on China. It's a softening compared to his pre election thread of sixty percent additional import taxes.
Trump spoke with Fox News Channel's Handity, we have.
One very big power over China, and that's tariffs, and.
They don't want them, and I'd rather not have to use it.
President Trump has floated the idea of ten percent tariffs on China from next month, but so far has stopped short of imposing them on Beijing.
In his first days in office.
Well, Nathan, President Trump reiterated as tariffs threats in a virtual speech to the World Economic Forum and Davos, and he said he'll demand that Saudi Arabia and Opek and bring down the cost of oil.
You got to bring it down, which, frankly, I'm surprised they didn't do before the election. That didn't show a lot of love by them not doing it. I was a little surprised by that if the price came down, the rush of Ukraine war would end immediately.
Those are marks when President Trump sent oil prices lower, though it's unclear whether Opek will heed his call, and the President said he would not stop there.
With oil prices going down, I'll demand that interest rates drop immediately, and likewise they should be dropping all over the world. Interest rates should follow us.
And in a surprise broadside, President Trumpec used a Bank of America CEO Brian moynihan of limiting business with conservative clients, telling him quote, I hope you start opening your bank to conservatives, because what you're doing is wrong.
And on the topic of interest rates, Karen, President Trump said he'll speak with Federal Reserve Chairman Jerome Powell about lowering rates at the quote right time. The President spoke to reporters while signing executive orders in the Oval Office.
I think I know interest rates much better than they do, and I think I know it's certainly much better than the one who's primarily in charge of making that decision. But no, I'm guided by them very much. But if I disagree, I will let it be known.
President Trump spoke ahead of the first rate decision of twenty twenty five for J.
Powell and the FED that's coming up next week.
Well, Nathan, Senators may be working through the weekend to get President Trump's cabinet appointees confirmed. Do we get that story with bloomberge Dina Servetti.
So far, just two of Trump's picks have cleared, the Senate Secretary of State Marco Rubio and CIA director John Ratcliffe. But Defense nominee Pete Hegsith cleared a key procedural hurdle yesterday despite opposition from two Republicans. He's set for a final confirmation vote tonight. If the Senate sticks around this weekend, it could vote on Scott Bessant for Treasury Secretary and
Christy Nome to lead Homeland Security. Other nominees, including Robert F. Kennedy, Junior Tulci Gabbard, and Cash Pateel have here set for next week. Gina Cervetti Bloomberg Radio.
Gina, thank you.
President Trump's pledge to keep TikTok operational in the US is being handled differently by different tech giants. Bloomberg's John Tucker's here with more on that story. So John sounds like there's a little bit of confusion out there.
To say the least.
Nathan Apple and Google they remove the app from their respective app stores to comply with the January nineteenth van, and they've held off on relisting TikTok. The app's been unavailable for the past five days, even after Trump's pledge that the government won't enforce the law that raised potential penalties. Oracle, on the other hand, they have kept TikTok operational. Oracle provides cloud services for TikTok and lawmakers and other Washington insiders.
They have raised concerns even with a nod for Donald Trump. The critics argue the company could open itself up to lawsuits from current shareholders and massive fines from a future administration that may want to retroactively enforce those penalties. There's also the possibility that Donald Trump could change his mind on enforcement. In New York, I'm John Tucker Bloomberg Radio.
All right, John, thank you well. President Trump is heading to hurricane battered Western and North Carolina and wildfire ravaged Los Angeles. Meanwhile, firefighters across southern California are making progress battling new blazes that were fanned by gusty wins. The new wildfires come a week's after other blazes killed twenty eight people, displaced thousands, and destroyed more than sixteen thousand structures. A forecast of rain this weekend is offering the potential for some relief.
Well, Karen Let's turn to markets now.
Futures are modestly lowered this morning, following a record close for the S and P five hundred and several key stocks are on the move, watching shares of Boeing.
They are down nearly two percent in early trading.
The planemaker posted preliminary sales about a billion and a half dollars below estimates. Overall, Boeing, which is hit by a workers strike, loss roughly four billion dollars in the quarter.
Well Nathan shares of Texas Instruments are down almost five percent. The chip maker gave it pointing Earning's forecast for the current period. Analysts say it's a sign it's still contending with still sluggish chip demand and higher cost tied to a factory expansion in Europe.
Karen's shares of Eric Center down more than eight percent. The Swedish telecom missed analysts forecasts for earnings in the fourth quarter.
On the flip side, Nathan Shears Burbery higher by twelve and a half percent to pick up a US demand, boosted the Trench code makers results. Sales in the America's unexpectedly climbed well, China fell less than estimated.
And oh, it's staying in the Asia Pacific, Karen. The Bank of Japan raised its key policy rate to the highest level in seventeen years and took a more bullish view on the strength of inflation. Boj lifted the overnight call rate by a quarter percentage point to half percent. The decisions feeling expectations for more rate hikes and is supporting the end checking it against the dollar right now it is stronger at one fifty five point seven zero.
And it's time now for a look at some of the their 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.
A federal judge in Washington State has temporarily blocked President Trump's executive order denying US citizenship to the children born from undocumented parents living in the country. The hearing didn't even take a half an hour. Judge John Kunauer said in his four decades on the bench, he'd never seen such a clear case. That Reagan appointee called President Trump's order blatantly unconstitutional and said it boggles his mind that
any lawyer would unequivocally assert otherwise. President Trump pledged to fight it.
Obviously will appeal if they put it before a certain judge in Seattle.
I guess right, and there's no surprises with that judge.
Loyola Law School professor Jessica Levinson.
For a judge at a temporary restraining order to say blatantly unconstitutional, it is where emphasizing that you don't typically see that type of language at this initial stage.
Professor Levinson spoke to CBS. Trump's order aims to block the issuance of passports and Social Security numbers to children born to undocumented women or on temporary visas unless the father is a US citizen or a Green card holder, and ice raid conducted at a Newark, New Jersey business as the city's mayor outraged, immigration officials took away three workers who couldn't prove citizenship while working at the Ocean
Seafood Depot in Newark. The owner of that business. Luis Ganoda believes this was a step too far.
I feel that we have to be a country law, but go off.
To bad people, not working people. Visit people, these a family people? Is it people that would show up to work every day.
The raid yesterday was part of a nationwide enforcement following President Trump's executive order. One of the people taken into custody was a US veteran. In a statement, Newark Mayor Baraka called it egregious and a violation of the Fourth Amendment. Baraka insists the proper warrant was not presented. President Trump has ordered the release of thousands of classifying the governmental records related to the assassination of President John F. Kennedy.
The executive order Trump signed yesterday also aims to declassify records relating to the assassinations of Senator Robert F. Kennedy and Martin Luther King Jr. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. Michael Barn, This is Bloomberg Karen Uncle Barr.
Thank you time now for the Bloomberg Scores update, brought to you by try Stan Outy. Here's John Stanshauer John.
Good morning, Good morning, Karen Novak.
Djokovich is at ten for an eleventh Australian Open title, a record breaking twenty fifth Grand Slam, and then suddenly in Melbourney at upset Carlos Alcarez in the quarterfinals despite taking an injury time out getting his left leg taped up of the semis.
He took on alex Zavera.
They've played a long and tight first sets of Vera won a tiebreaker and then the match was over.
Djokovic was struggling. He didn't know how Battley Patrick he did.
And the cloud is absolutely stunted.
Stunned.
Lady Shanny, his name was seconds.
Ago is he was very much in that tipe breaking second did he missed the volley.
To lose the set.
He came forward to shake.
Hands and this is for disappointing the drive at twenty five NS right here on ESPN.
Djokovic said later due to the muscle tear in the leg, he would not have been able to finish even had he won that first set.
Soaver evern the.
Final will take you on the winner of the match going on now. Top seed Yannick Sinner just won a first set tiebreaker from the Herd, serving young American Ben Shelter. The Rangers on November nineteenth were twelve and four. Rest of twenty twenty four they went four and fifteen, but since the new year began there are eight, one and three very much back in the playoff picture.
It was easy at the Garden.
Sixty one rout of Philadelphia was six different goal scorers. The capital is a top the NHL. They won three nothing at Seattle career goal number eight seventy five for a Solovashkian. Bruins won two nothing over Ottawa Celtics in LA. Lost to the Lakers once seventeen ninety six Spurs meet the Pacers in Paris. NBA All Stars starters announced some familiar names Lebron James, Kevin durand Steph Curry, and two
next were named Jalen Brunston and Karl Anthony Towns. Thirty nine year old Liam Cohen is the new coach of the Jacksonville Jaguars. He had been coaching Tampa Bay's offense. The Cowboys said to be moving closer to promoting Brian Schottenheimer, Dallas's current offensive Cornada. The Atlanta Braves have signed free agent outfielder Jerkson Profar just had his best season with San Diego.
John Stanshallen Bloomberg.
Sports Coast to Coast on Bloomberg Radio, nationwide on Sirius Exam, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager.
President Trump is calling for lower oil prices, lower interest rates, and higher tariffs in a virtual address to the global elites gathered at the World Economic Forum.
In my message to every business in the world is very simple. Come make your product in America and we will give you among the lowest taxes of any nation on Earth.
We're bringing them.
Down very substantially, even from the original Trump tax cuts.
And the President reiterated that message at the Oval Office and in an interview with Fox News Channel. Joining us now is doctor Lindsay Newman, geopolitical risk analyst and calumnist at G zero Media. Thanks for being with us this morning, doctor Newman. The President is reiterating these tariff threats at the same time, though saying in that Fox interview that
he would rather not impose tariffs on China. Where do you see the message from the President when it comes to the potential for trade wars with adversaries and allies at this point.
Thanks Nathan, thank you for having me on again. It's a great question around what is the signal and what is the noise here. As you said, he said in his Davos remarks yesterday that he thinks the relationship with China, he expects it to be very good. He wants a fair relationship, he said. He doesn't need to be phenomenal, but he does want it to be fair. And as you said, he said he would rather not He knows China doesn't want those tariffs and posted and he himself
would rather not impose those tariffs. But he also went on to then say it is a tremendous point of power or a tremendous point of leverage. We're hearing this number right now, around ten percent tariffs to be imposed on China, potentially to be imposed on China on February first, a far cry from the sixty to one hundred percent tariffs that he talked about during the campaign trail. But
I think we need to be cautious here. And here's my one indicator that I would suggest to watch already, which is that in his executive order for trade, the sweeping America First Trade Policy Executive Order, he has instructed his team to not only investigate all and review all potential areas where tariffs could be warranted, but he's also setting up this external reserve services. You don't set up an organization to collect tariffs if you're not looking to collect tariffs.
The President also said he was going to demand that Saudi Arabia and OPEK bring down the cost of oil, couching it as the idea that it could help bring the war in Ukraine to a more rapid end.
What did you make of that comment.
It was a really interesting one because most of yesterday's address by Trump at the World Economic Forum was really just a highlight reel of what his very young administration has already done in this first week, including taking responsibility for that ceasefire agreement in Israel, and then of course all these executive orders, which he touched on everything from inflation to deregulation efforts, immigration, etc. But then he broke some news, as you're saying here about this energy point,
where he's saying he's going to ask the Kingdom and Obak to bring down oil pricing. We saw since that discussion he in fact, since this point that he raised it,
oil did come down. And as you said, he even connected very interestingly the ongoing conflict in Russian Ukraine with height and oil price is saying he was even a bit if the sense was that he was a bit miffed that the prices haven't come down, because if they would, he thinks that the war would end immediately, and he's been very clear about how this war needs to end immediately. This relationship is one that we're going to have to
watch closely. We should be watching closely between the US and Saudi Arabia, Between Donald Trump and MBS, we know, for example, that they had that the first foreign Leader's call was with MBS, where they talked about the kingdom's ambitions over the next years and next four years and how they can collaborate together. I wouldn't be surprised if, yet again, that is Donald Trump's first foreign trip.
And how about the relationship between President Trump and global central banks. We heard the President in the Oval Office yesterday saying that he knows interest rates better than Jay Powell does. That he at the Davos forum called for central banks around the world to follow the US lead and lowering interest rates.
Do you see a threat to FED independence?
This is classic Donald Trump. This is nothing new. We saw it during first his first term where he also had these barbs around interest rates. In Powell, really, I
would not expect anything sort of substantive there. We can expect more of that same rhetoric, and it is a point of leverage that he looks to apply to make it clear to both the domestic and global audience that he's going to ask for what he expects, and he's going to make clear what he expects, and he expects to see interest rates come down both further at home and in the global in the global economy. But Powell has been very clear about holding the line and domestic FED independence.
Just thirty seconds left, He's going to ask for what he wants. Do you expect the world to answer?
Well?
So far, we've seen a ceasefire agreement in Israel that was at a logjam for many, many months on the Biden administration. It's this way in which he will intend to be quite ambitious, sort of flooding the field with his asks using both Caroden sticks this time around in which he will He will reshape the world. I think so in his vision.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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