Greenland Talks Loom Over Davos; Bessent Says Fed Pick Could Come as Soon as Next Week

Bloomberg Audio Studios, Podcasts, radio News.
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
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