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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 controversy in the Middle East. President Trump says the US should take control of the Gaza Strip. The President spoke during a White House news conference alongside Israeli Prime Minister Benjamin NATANYAHUO the.
US will take over the Gaza Strip, and we will do a job with it too. We'll own it and be responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site.
The reaction has been swift to President Trump's Kaza proposal. Former NATO Supreme Allied Commander in Europe Wesley Clark warrens it would be exceptionally challenging to deliver.
There are huge problems at the bottom, not to mention strategic consent at the top. So look, he's the President of the United States, better listen to him. But I've done these things. I can tell you how difficult this is. This is unimaginability difficult.
Former NATO's Supreme Allied Commander in Europe, Wesley Clark, spoke as Saudi Arabia reiterated its support for a Palestinian state with East Jerusalem as its capital. The Saudis are rejecting any infringement on the legitimate rights of the Palestinian people.
Well Nathan new Development's new developments this morning. Involving Trump's trade war, the US Postal Service has temporarily suspended the acceptance of inbound parcels from China and Hong Kong. According to its website, letters and flat packages from the region will not be impacted. The move comes after President Trump and post ten percent tariff increases on Chinese goods.
Karen China may be looking at ways to fire back. Bloomberg News has learned Beijing's antitrust watchdog is laying the groundwork for a potential probe into Apple. We get more from Bloomberg News Global Tech editor Peter Elstrom.
We see these tensions between the two countries rising. The US of course imposed the ten percent terra off Sunshina, and in response, we're seeing some measure responses from Beijing. Right now, we have the investigation into Google, and just to be clear, the Apple investigation was not announced. This is a sources based story where we're reporting that We understand the regulators at SAMR are taking a look at Apple.
They've informed the Apple executives in the country that they're concerned about some of these practices that they have in the app store. These have been issues globally. Really it's not just in China, but they're taking a thirty percent cut of revenue from the app store in certain cases, and they're also limiting your payment options so that you run through the Apple Store.
Bloomberg's Peter Elstrom says if Apple resists making changes, the Chinese government may launch a formal investigation on.
Nathan Donald Trump and Elon Musk's efforts to slash the federal workforce have taken a new turn Bloomberg. John Tucker is here with more. John.
What's the latest, Well, Karen, Most employees of the US Agency for International Development they're going to be placed on administrative leave. This starts Friday. The staff members stationed overseas they have to return within thirty days, with exceptions to be considered on a case by case basis. This all comes after Trump ally Elon Musk signaled out USAID repeatedly on X and even Trump described the agency as run
by a bunch of radical lunatics. Secretary of State Marco Rubio said he's now in charge of USA and Warren US lawmakers the agency might be abolished altogether, and it doesn't stop there. The CIA has ordered staff buyouts. That move comes after two million federal workers were given similar offers. That move initially excluded national security agencies in New York. IM John Tucker Bloomberg Radio.
All right, John, thank you, and his controversy swirls around Elawn Musk's role and power in the Trump administration. The Treasury Department says Musk's Government Efficiency Team has been given read only access to coded data of the government's payments system. Democratic lawmakers had raised concerns about that system's integrity stemming from the Musk team's access.
Well Nathan, President Trump's cabinet continues to take Shaye pam Bondy has won a full Senate vote to be the next Attorney General.
On this vote, the yaser fifty four, the nays are forty six.
The nomination is confirmed.
And that was the final tally for Pama Bondi in the US Senate. The new Attorney General now get a chance to reshape the one hundred and fifteen thousand member Justice Department head of her confirmation. Interim leaders forced out or reassigned many officials who investigated the January sixth attack at the US Capitol, including career prosecutors and FBI officials.
I Meanwhile, Karen Moore cabinet nominees are moving closer to their confirmations. Both Robert F. Kennedy, Junior and Tulsea Gabbert have advanced through Senate committees on party line votes. Kennedy faced questions about his past efforts to link vaccines to autism at his hearing to leave the Department of Health
and Human Services. Gabbard drew criticism for meeting with then Syrian President Bashar al Assad and refused to call NSA leaker Edward Snowden a trader in her bid to be Director of National Intelligence.
On Nathan, Now, we want to turn to the latest on the plane crash investigation in Washington, d C. The remains of all sixty FI seven victims have been recovered from the collision between the American Airlines flight and the Army helicopter. The National Transportation Safety Board says the latest data show the black Hawk was flying at about three hundred feet at the time of the accident. That's about one hundred feet higher than the preliminary RATEAR indicated. Investigators
say they need more data from the Blackhawk itself. They expect to recover it from the Potomac River later this week.
Turning the markets now, Karen futures are lower, led by tech shares following some disappointing earnings after the bell. Shares of Google parent Alphabet are down seven and a half percent after missing earning's estimate. Sales from its cloud business slowed. On the company conference call, Alphabet CEO Soon darp Shi downplayed competition from China's Deep Seek.
There's been a lot of observations on Deep Seek. First of all, you know, I think tremendous team. I think they've done very very good work. I would say both are two point zero flash models or two point oho flash thinking models. You know, they are some of the most efficient models out there, including comparing two deep seeks.
Alphabet CEO Sun Darbishi also announced seventy five billion dollars in twenty twenty five capital expenditures that far exceeds the fifty seven point nine billion that analysts expected.
Nathan Chairs of AMD also taking it on the chin. This morning, they're down more than eight and a half percent. Is it struggled to catch up with AI computing leader Nvidia. The chip maker's fourth quarter revenue topped estimates, but its data center divisions revenue was below analyst projections.
And shares of Chipotle Mexican Grill are down more than six percent. The fast food retailer sales rose less than expected. Chipotle had stood out as one of the few chains that managed to bring in more customers over the past year to time. When competition or when competitors, I should say, we're losing traffic.
Well for season. Nathan Nissan is reportedly pulling out of plans to combine with Honda. The NYK newspapers reporting talks between the two car makers have stalled since tie up plans were first announced in December. Without Honta is backing, Nissan's future is unclear, with the company facing chronic issues such as an outdated product lineup and bloated dealership incentives.
Time now, if we 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. In New Orleans, security preparations are underway ahead of Super Bowl Sunday. The US Department of Homeland Security Special Agent in Charge for New Orleans, Eric Delonde, is the lead federal coordinator for Super Bowl fifty nine. He says visitors to the city are going to see a heavy police presence this weekend.
This is going to be the safest city in America for the Super Bowl.
We will have more federal assets, more federal law enforcement, more state local law enforcement, probably than any other Fruit Bowl ever played.
Delan's comments come after the January first Bourbon Street terrorist attack that killed fifteen people. Sweden's worst mass shooting has left at least eleven people dead, including the gunman, at an adult education center, as officials warned that the death toll could rise. Police believe the perpetrator acted alone, but have not said if he was a student or what his motive may have been. Tuesday's violence occurred at a school west of Stockholm and offers primary and second educational
classes for adults. Police say one person is dead. Five people have been wounded in a shooting at a cosmetics warehouse in New Albany. Ohio. A spokesperson says the subject is no longer believed to be at the warehouse, which belongs to a company that makes products including toiletries. New Albany Police Chief Greg Jones. We believe we may know their location.
We don't have any reason to believe that they are a general threat to society more than this was.
It appears at this point to be a targeted type of attack.
Chief Jones did not immediately provide the tales of the circumstances surrounding the shooting. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barr, and this Isloomberg Kearn.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by Tri State Audi. Here's John Stshower.
John, Good morning, Yim morning, Karen. Busy Tuesday for New York area teams. The Knicks, Nets, Devils, Islanders, and Saint John's all played. They all won. The Knicks in Toronto saw a twenty three point league get cut to one was just over three minutes remaining, but the Knicks held on one twenty one to one fifteen as Karl Anthony Towns had twenty seven points and twenty rebounds. Nicks had won seven of their last eight games and eight in a row. Versus the Raptors. The Nets had and won
a home game in two months. Didn't look like they'd beat Houston down four with nine seconds left. A Keon Johnson three point or a steal on the inbounds passing at D'Angelo Russell three six points in six seconds. The Nets beat the Rockets ninety seven, ninety three, top two in the East. Met in Cleveland, Celtics beat the Cavs and LA The Lakers beat the Clippers by twenty five with Luca don Said's sitting on the Laker bench. He
hasn't played since Christmas with a calf injury. But for the the first time since the trade, Luca gave his reaction to it.
But like this last forty dollars just one month, Like two days ago was one month ago.
So emotionally it was really hard.
But very day that I like today was much better. You know, I'm just very happy to be here.
Anthony Davis also hurt, didn't play for Dallas and a two point loss at Philadelphia, and you have yes, aerena. The Islanders made it eight wins in the last nine games, two to one over Vegas. Devils won three two in a shootout at Pittsburgh get the Guarden. Saint John's's twentieth win of the season. It's so far been a terrific one. The Red Storm atop the Big East. They beat Marquette seventy to sixty four. The Yankees have re signed lefty
reliever Tim Hill. John Stashan. We're Bloomberg Sports Kenona.
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. And it could be a dramatic shift in the Middle East. President Trump says the US should take over the Gaza Strip and develop it into what he calls a riviera. And he says it's not an idea he comes too lightly.
Everybody I've spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs with something that will be magnificent in a really magnificent area that nobody would know. Nobody could look because all they see is death and destruction and rubble.
And that was President Trump speaking alongside Israeli Prime Minister Benjamin Netan Yahoo at the White House, joining us now as Bloomberg News Managing editor Derek Wallbank and Derek to say, this would up end Middle East policy. May be just scratching the surface. What do you make of this?
Yeah, Nathan, it was really interesting watching that press conference because when Donald Trump started going into this, you know, I think that they're The initial reaction was, hold on, did he just say what we think he said? And then Trump went on to, as you noted, make very clear that not only did he say it, he meant it.
You know, there are infinite questions that it raises. There has been a pretty stiff pushback, unanimous among Democrats over you know, overwhelming out of the out of the Arab world. Not so much from Republicans. We have heard a couple of congressional Republicans, Lindsey Graham being one, suggests that maybe this was, you know, that this was a little bit of a bad idea. But other than that, Republicans have been pretty well supportive of the idea of doing something different.
Now.
Trump went out and said a whole range of things about what he would want to do with Gazaf. The US got heavily, heavily involved and effectively took it over, not least of which redeveloping the entire place. He compared it at one point to a potential Middle Eastern riviera. You know, as I say, it was bombshell comments from the US President. I think, Nathan, you and I've been
following this along so long. The Middle East is really one of those areas, especially issues related to Israel and the Palestinians, where US presidents have had to choose their words exceptionally carefully, and it's sort of like every single word and phrase is litigated. Trump went and smashed through all of that. And I think that there will be there will be effects of this for a very very long time.
We if this idea is a sort of a bull in the China shop of diplomacy from President Trump. Was very interesting to see Prime Minister Netsan Yahoo alongside President Trump not necessarily dismissing this idea out of hand.
No, not necessarily dismissing, but you know it, it's hard to know exactly how red he is and how much he wanted, you know, that level of a statement, you know, Netnya who was making, you know, statements that were generally positive towards Trump's ideas, more I would say flattering of
Trump than endorsing necessarily exactly specific prescriptions. But I think that this is one of those things that, look, the White House does not appear to have given a lot of people a heads up that this kind of titanic policy shift was coming, right. It took a lot of people by surprise, you know. But this is also something
that Trump is leaning into in his first days. And you could say this across a range of different policies and foreign policies where he sees an advantage to surprise, and he sees an advantage to volatility, many times the volatility he himself is creating.
Oh well, we think through this potential volatile and Middle East policy, Derek. There are new developments in the trade tensions between the US and China after the ten percent tariffs. Now this word from Bloomberg News that China is considering an antitrust probe into Apple's app store. Where could this go?
Yeah, this one's an interesting one, Nathan, and it's and it's a very it's very much a breaking news story, so there's a lot to digest here. But the short version of it is that China's antitrust watchdog is laying the groundwork for a potential probe into Apple's policies and
the fees its charges app developers. Now, the idea of scrutiny over Apple's app store not necessarily new, but at the same point, we have to consider what moment we're in and all of the things going on between the US and China, and the potential that this could sort of stack up on top of that. There's a lot
to sort of follow through here. One thing I we'll say as well though, as we were talking to a lot of analysts yesterday after ahead of this story coming out, but after the United States Postal Service said it was going to freeze taking in small packages from from China and from Hong Kong for temporarily freeze, and one of the things that stood out to me was there was one analyst who noted that essentially you have a macro risk from all of these micro things going on, and
they do stack up, and there is that sort of you know, complication risk going out.
This is Bloomberg Day Break, your morning podcast and the stories making news from Wall Street to Washington and beyond.
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