Government Shutdown Ends; New Iran Negotiations

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 in Washington, where, after just four days,
the partial government shutdown is over. President Trump has signed
his deal with Senate Democrats to reopen the government with
less than two weeks of funding for the Department of
Homeland Security. That's to allow more time to negotiate on
democrats demands on new limits for immigration enforcement. President Trump
says the new law won't stop his immigration agenda.
It continues to fund deportation flights that are removing dangers
illegal aliens from our country. It continues historically successful efforts
to reduce crime in our nation's capital. We have a
very safe center right now.
That was President Trump at the Oval Office bill signing
herd live on Bloomberg Radio. Bloomberg's Eric Wasson reports lawmakers
now have just nine days to come to an agreement
done reining in ice agents.
Democrats have a long list of demands, including judicial warrens
and kicking masks off that Republicans are really not willing
to entertain, and it's just very hard. The House would
have to pass this very early next week for the
Senate in order to take it up and get it
done by February thirteenth. I don't see that happening, Bloomberg.
Eric Wanson reports if they don't reach a deal by
next Friday, FEMA and TSA employees could start to miss paychecks.
ICE and Border Patrol would continue to receive funds under
President Trump's One Big, Beautiful Tax and Spending Cut law.
We now turn to geopolitics. Nathan Bloomberg News has learned
Iran is asking the US to move diplomatic talks this
Friday from Turkey to Oman cursus A. Tehran wants the
talks to focus only on Around's nuclear activities and not
its support for proxy Milicious in the Middle East and
its ballistic missiles. President Trump has threatened to strike Iran
if it does not agree to a deal, which his
administration has signaled must include Iron's missiles and malicious support.
Back in Washington, Karen, the dates are set for Bill
and Hillary Clinton to testify about their ties to Jeffrey Epstein.
The House Oversight Committee says the former president will appear
before the panel on February twenty seventh, the former Secretary
of State will testify. The day before, February twenty sixth,
the full House had planned to hold a criminal contempt
vote against the Clintons if they continued to defy subpoenas.
President Trump commented on it in the Oval Office.
So that takes care of Epstein as far as Trump
is concerned. But you have a lot of Democrats out
there that are very much involved with Epstein. But I'll
be honest with you, You got to get back to running.
The country, President Trump, again, speaking in the Oval Office.
The Oversight Committee says the Clintons have agreed to appear
for transcribed filmed depositions behind closed doors. The Clinton's attorneys
say they want the hearings open to the public to
address their concerns about fairness.
We now turn to the markets, Nathan, where S and
P futures are little changed and gold is nearing fifty
one hundred dollars an hound see Yesterday techdocs fell led
by the recent sell off led by software stocks and
Bloomberg's John Tucker joins us with the latest John and Karen.
The theme that seems to have gripped investors is that
AI is going to be able to do much of
the stuff that software companies do, making their products far
less important. That was reinforced when the AI firm Anthropic
released an AI tool that does legal work. It looks
like a case is sell now and ask questions later.
Add to that the fact that investors are growing impatient
about returns for all that CAPEX spending. Anika Gupta is
at Wisdom Tree.
Given the fact that now we're seeing CAPEX intentions rise
sixty to eighty percent and the rising of very high levels,
we're now starting to see investors become a lot.
More discerning now.
In this environment, Microsoft has been crushed down close to
three percent yesterday, the software giant down close to twenty
five percent from October New York. I'm John Tucker, Bloomberg Radio, John.
Thanks, Big tech earnings continue today. When Alphabet reports this afternoon,
we get a preview from Bloomberg's Tom Busby.
Google's parent company. Alphabet expected to post solid revenue and
profit growth for last quarter, with its cloud computing division
expected to get a big boost from the release of
its latest Gemini AI models, which it also integrated into
its Google Search and its Chrome browser. Like rivals Meta
and Microsoft, A big focus for investors, though, is all
the spending it's done on AI infrastructure and efforts to
power its data centers. Bloomberg consensus calls for revenue of
one hundred eleven point four billion dollars on earnings per
share of two dollars sixty five cents. Tom buzby Bloomberg Radio.
All right, Tom, thank you well. Sticking with earning. Shares
of Advanced micro Devices down more than seven percent in
early trading. The chip makers are for top analyst estimates,
but its sales forecast underwhelmed investors. It's a sign that
AMD is not making the kind of AI inrows that
some investors anticipated.
Another chip maker is soaring in the pre market care,
and that's Silicon Labs. Those shares are up more than
thirty two percent. The Financial Times is reporting Silicon labses
and talks to me acquired by Texas Instruments for around
seven billion dollars.
Nathan Bloomberg News has learned Nvidia is nearing a deal
to invest twenty billion dollars in open Ai as part
of its latest funding round. It marks a chit maker's
single biggest investment in the chat GPT developer open Ai
is looking to raise up to one hundred billion dollars
in funding for a new round, with much of that
coming from large tech firms in Europe.
Parent's shares of Novo Nordisk are plunging more than seventeen percent.
The pharma giant's warning of a steep decline in sales
of its drugs. It says those sales will fall with
as much as thirteen percent. Novo blames increased competition and
lower prices for its blockbuster weight loss medicines, driven by
a US government push to bring down drug costs. We
spoke with Novo's CEO, Mike Doustar.
Of course, I can understand that negative numbers are not
good news to the market, but once again, this is
something that we had anticipated and the obesity market is
quite dynamic and the reason the range has its numbers
on each end and it is because so many things
can happen.
Novanordesk CEO Mike Deustar says this company will start a
new share buy backworth as much as two point four
billion dollars.
Nathan shares of UBS they are down almost five percent.
The Swiss Leander reported stronger than expected earnings and also
announced a three billion dollar share buyback, but client inflows
for its wealth management unit fell well short of expectations.
We spoke earlier, was CEO Sergio or Modi.
The investment bank is growing well in the areas where
we want to compete. Asset management is doing a good job,
and the Swiss business is also holding up well despite
the low rates or negative rates almost environment. And we're
making also good progress on the integration. Eighty five percent
of the Swiss clients of Credit Swiss had been migrated.
We are delivering on our capital returns, so I can
only be happy.
To be honest, ubs CEO Sergio or Modi says. The
bank broadly maintained its previously signaled financial targets.
For the U and a notable Central Bank move Karen
Federal Reserve Governor Stephen Myron is stepping down from his
post leading the White House's Council of Economic Advisors. Myron
had been on unpaid leave from his White House role
after President Trump nominated him to the FED Board in
September on a temporary basis to fill a vacated seat.
That drew criticism from Senate Democrats, who said Myron on
the FED undermined the Central Bank's credibility.
Time now for a 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.
And ongoing search continues for the eighty four year old
mother of Today's show host Savannah Guthrie. Nancy Guthrie was
reported missing in Pima County, Arizona Sunday. Investigators also found
evidence showing there was a nighttime kidnapping. Police now trying
to determine if alleged ransom notes are real. Pima County
Sheriff Chris Nano spoke to reporters.
You're asked if there was any ransom, and you didn't
say no.
You said, we're following all leads. Does that mean a
ransom has come in?
We are following all leads we have. That's all I
can tell you.
Get We've got hundreds of leads.
Sheriff Nano says, Nancy Guthrie relies on medication that she
has to take daily. The Trump administration has been sued again,
this time by the states of New York and New
Jersey over its cutoff of financing for the sixteen billion
dollar Gateway rail tunnel under the Hudson River, a day
after the public commission overseeing the project filed as suit.
The States allege in a complaint Tuesday that the suspension
of funds for the Hudson Tunnel project is a politically
motivated attempt to punish and coerce those with whom the
president disagrees. The NFL says there's no planned ice enforcement
at Super Bowl sixty in Santa Clara, California. NFL's chief
security officer Kathy Lanier the.
Federal presence here is consistent with past Super Bowls and
other sporting OF's, like what you will see around the
World Cup in the Olympics as well. There are no
planned ice or immigration enforcement operations that are scheduled around
the super Bowl or any of the Super Bowl related events.
NFL's chief security officer, Kathy Lanier. The mayor of San Jose,
next door to Santa Clara, says he too, has been
told by federal agencies there will be no immigration enforcement
that could disrupt Super Bowl events. A Doberman pincher named
Tenny won Best in Show in the one hundred and
fiftieth Westminster Kennel Club Dog Show last night. The four
year old beat out six other finalists at the show
at New York's Madison Square Garden. Global News twenty four
hours a day and whenever you want it with Bloomberg
News Now. Michael Barram, this is Bloomberg, Karen.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that
you bring in John stashauerd Thanks Daring.
A bunch of trades ahead of tomorrow's NBA trade deadline.
James Harden goes from the LA Clippers to Cleveland for
Darius Garland. A swap of point guards. Veteran Jaron Jackson
goes from Memphis to Utah. He was with the Grizzlies
for eight years. Point guard Mike Conley moves from Minnesota
to Chicago, and center Nicolovich goes from Chicago to Boston.
US flag bearers at Friday's opening ceremonies will be Bob's Letter,
Frank del Duca, and speed skater Aaron Jackson. 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. The partial government shutdown maybe
over at four days, but an even tougher fight remains
on Capitol Hill over funds from immigration enforcement. House Speaker
Mike Johnson says he's ready for it.
They say they want a real negotiation with President Trump
and Republicans over immigration enforcement policy, and we are happy
to have that debate.
And that was how Speaker Mike Johnson an on Capitol Hill.
For more, We're joined by Bloomberg DC Breaking News editor
Alexander Pearson. Alex how big a fight are lawmakers in
for now over the next nine days?
Good morning, Good morning, Nathan. Yeah, the fight is probably
going to be a very big one. The gap between
the Republicans and the White House on the one hand,
and Democrats on the other is still very large. So
despite the fact that they came to this agreement to
reopen parts of the government that were shut down, there
is only now nine days to come to an agreement
on restrictions that Democrats have demanded on immigration rewinforcement. The
problem is is that Republicans are not accepting many of
those demands. Those include things like no immigration officers, not
wearing masks, no identification, wearing identification, stopping roving operations in cities,
and for the most part, Republicans don't want to agree to
any of these. The Democrats are, for their part, say
that they are not going to accept anything that does
not meet some at least some of those demands. So
it's very likely that next week we could be seeing
another partial shutdown that would affect the Department of Homeland Security.
How would that partial shut down affect the Department of
Homeland Security specifically, because we understand that even if there
were a shutdown, ICE and Border Patroller are still funded
under the tax and spending cut law.
Right, Yeah, that's right, So there's unlikely to be any
major disruptions to IO border Patrol because of the funding
that was passed last year, those agency, those operations could
still tap into that funding for some time. What would
be affected very quickly would be TSA and also FEMA,
so people working in those services would miss a paycheck
after if there is no funding agreement by the end
of next week, and that of course could be quite disruptive,
particularly for anyone who's planning to travel to fly.
See some major news later on this month, when Bill
and Hillary Clinton testify about their Jeffrey Epstein ties to
the House Oversight Committee. A subpoena against a former president
is almost unheard of, Alex.
Yeah, that's rights. It has happened before, but it's an
extremely rare event. And you know, this is obviously going
to be a very high profile hearing. At the moment,
it is said to be behind closed doors. It will
be filmed and recorded, but they won't we won't see
it live. That of course could still change, but that's
how it's being done right now. And certainly, yeah, it's
it's a very significant event given that we've not seen
for many decades a former president testifying to a congressional committee.
Why the focus on the Clinton specifically by the House
Oversight Panel, as far as we understand.
The well, the focus is really their ties to Jeffrey Epstein.
Certainly we know from the files of were released by
the Department of Justice, and also prior to that that
there were close contacts between Bill Clinton and Epstein, you know,
in previous decades. For his part, the former president says
he was not aware of any crimes that Epstein committed,
and you know it was not involved in any wrongdoing,
but the House Oversight Committee will want to really check
what those ties were and how that might have affected
federal enforcement in terms of investigating Epstein and his ties
to various parts of the government.
This is Bloomberg Daybreak, your morning podcast on the stories
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