Minnesota Backlash Spurs Policy Shift; Trump Vows to Raise Tariffs to 25% on South Korean Goods

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 Minneapolis, where President Trump may be
signaling a strategy shift after the deaths of two US
citizens and immigration raids this month. The President says he's
sending his borders are Tom Holman to the city, the
man who had been overseeing ice operations there. Border Patrol
Commander at Large Greg Bovino, is expected to leave as
soon as today. Holman is seen as more measured in
his approach than Homeland Security Secretary Christi Nome, but White
House Press Secretary Caroline Levitt says this is not a
sign that the President has lost confidence in Nome.
Mister Holman is doing an exceptional job, and he has
been working with Secretary Nome and President Trump over the
course of the last year. A Secretary Nome still has
the utmost confidence and trust of the President of the
United States, and she's continuing to oversee the entire Department
of Homeland Security and all of the immigration enforcement that's
taking place across the whole entire country.
Press Secretary Caroline Levitt spoke at the White House news conference,
and The New York Times reports President Trump met with
Secretary Nome for nearly two hours in the Oval Office yesterday,
but did not suggest her job was at risk. President
Trump says he also spoke with Minnesota Governor Tim Waltz
and will consider independent investigations into the shootings and reducing
the number of federal agents in the.
State, Nathan. Outrage over the shooting death of Minneapolis I
See You nurse Alex Pretty now has Washington hurtling toward
a government shutdown at the end of the week. Senate
Democrats are threatening to vote against funds for the Department
of Homeland Security unless it comes with new safeguards like
warrant requirements and body cameras for Ice and Border Patrol agents.
Republicans are signaling they'll resist those demands, but several GOP
senators are calling for an impartial investigation into Pretty's killing.
A shutdown would likely have little impact on Ice or
border patrol, they received massive funding in President Trump's tax
bill last year.
Now, the government might not be the only thing shutting down, Karen.
Several airlines are cutting flights again due to the weather.
So far, about one thousand flights have been canceled today.
That's according to flight Aware. The National Weather Services warning
of another potential significant winter storm later this week. US
natural gas is falling today as traders take profits. Prices
shot up nearly thirty percent yesterday amid freezing temperatures.
Nathan, we have several developments on the geopolitical front this morning.
UK Prime Minister kir Starmer is heading to Beijing this week,
I mean with Chinese leaders. In an interview with Bloomberg,
Starmer said the UK will not have to choose between
the US and China, as he tries not to draw
the ire of President Trump. Begin More from Bloomberg's Rosalind Madison.
It's not an easy visit. It will be a very
delicate one Forstama to balance. As he says, you know,
lakaltales he's talking about. We're not trying to take aside here.
He'll keep talking about the importance of the US relationship.
But equally he wanted to come away from this China
visit with some proper deals in the bag and to
show it's not just thrash.
Rich Bloomberg's Rosalind Madison says this will be the first
visit by a British prime minister to China in eight years.
Well Meanwhile, Karen Canada's Prime Minister Mark Carney spoke yesterday
with President Trump and Treasury Secretary Scott Besson talked about
the conversation with Funkx as Sean Hannity.
I was in the Oval with the President today. He
spoke to Prime Minister Carney, who was very aggressively walking
back some of the unfortunate remarks he made at Davos
and Sean, I'm not sure what the Prime Minister was thinking.
That was Treasury Secretary Scott Besson speaking with Fox in
Davos last week, Carney spoke about the need for middle
powers to band together to counter aggressive coercion by the
world's superpowers. Many observers saw his comments as being aimed
at the US.
Nathan President and Trump is threatening to raise tariffs on
South Korean goods to twenty five percent, and a social
media post, the President said the country's lawmakers had not
lived up to the deal they agreed to, with the
new rate applying to Auto's lumber, pharmaceutical and other products.
Bloombergy's White House correspondent Josh Wingrove reports.
He's essentially ripping up or at least for now, the deal
and saying that's because the Korean they're slow walking in.
I should note that there were a lot of question marks,
including from what the American position was about this deal.
And so this is another case for countries that are
looking at this, including the EU and the UK that
had their deals and that then saw the Greenland tariff
threat come in. The Trump's deals aren't necessarily locked in
if implemented.
Bloomberg Josh Wingrove says the move could have wide arranging
effects on major South Korean companies that export to the US,
such as Hyundai Motor Well.
Turning to markets now, Karen Shares of major health insurers
are tumbling in early trading. That's after the US proposed
plans to keep Medicare payment rates flat next year. Analyst
to expected an increase as high as six percent. President
Trump has been facing criticism for americans affordability challenges. He
started targeting insurers, blaming them for rising premiums in private
Affordable Care Act plans and checking the stocks this morning.
Shares of Humana are now down more than thirteen percent.
CVS Health is down ten percent. United Health down nine percent.
Let's turn to the economy now, Nathan, where the Federal
Reserve cakes off its two day policy meeting in Washington
later today, and the Fed is widely expected to leave
rates unchanged as a steadier jobs market restores a degree
of consensus at the Central Bank. John Hasseus is chief
economist at Goldman Sachs.
Wage growth has continued to come down, renderation has continued
to come down. I think that should get the majority
on the FMC comfortable with some additional cuts in the
second half. I don't expect anything this week. I don't
expect anything in the next few meetings, but the second
half of the year is a different story.
Goleman Sex chief economist Joan Hassei has made comments in
an interview with Bloomberg at the Goldman SAX Global Macro
Conference in Hong Kong. A rocky start for TikTok's and
newly established US entity. It's working to resolve a major
infrastructure failure triggered by a data center power disruption. The issues,
which started on Sunday, prevented millions of Americans from posting videos,
accessing their fees, or seeing up to date engagement metrics.
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. Crews have been working
to restore power knocked out by a massive weekend winter storm.
At least thirty depths have been reported in states afflicted
with severe cold. The storm dropped over a foot of
snow from Arkansas to New England. More widespread record cold
temperatures are forecast for to day, with eastern Texas through
western Pennsylvania under extreme cold warnings. Sylvania Governor John Shapiro, Well.
It was so unique about this storm was nearly every
or every one of our.
Sixty seven counties got hit. New Jersey Governor Mikey Cheryl
says clean up is underway. Cheryl says the state of
emergencies she implemented on Saturday is now over.
I think we've gone through the acute crisis.
Now it's post crisis cleanup and making sure we continue
to keep everyone safe through this cold weather. We are
endure enduring.
New York City Mayor Zorn Memdani.
While the worst is behind us, there is still more
to be done as we clear the snow and restore
our city.
And how are New Yorkers grading the new mayor on
handling the storm.
If you wanted to get out and around, you could,
and I did, so that's something to be said for.
That too, you know.
So what do you give him?
I give him an A. He's all right, he's trying
to do something good.
You get to be a bee, you get to be strong. B.
What's your grade? B?
Minus?
Officials say almost all MDA train and bus service in
New York City will operate on a regular weekday schedule. Today,
North Korea fired what appeared to be ballistic missiles off
its east coast, days after the US released a new
defense strategy. The launch comes after the US National Defense
Strategy urged South Korea to take the primary role in
deterring North Korea with critical but more limited US support.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr, and this
is Bloomberg Karen.
Thanks Michael. Time now for our Bloomberg Sports update, and
for that we bring in John Stashauer.
Karen, Americans had been doing well at the Australian Open
six into the quarterfinals four on the women's side, but
Coco Golf seated third, lost to the Ukrainian Alnas Fidelina
and it was not closed. Sixty one sixty two. Two
young Californians also went down. Iva Jovich, you just turned eighteen,
won only three games against top seed. They're in the
Sablanca and Lerner ten, who just turned twenty, lost in
four cents to Alex Savera Arizona, a unanimous number one
of the most recent college basketball poll. In The Wildcats
stayed undefeated, winning at BYU. That's your Bloomberg Sports update.
Stay with us. More from Bloomberg Daybreak 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 app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump maybe shifting
tactics after two killings of US citizens in Minneapolis immigration enforcement.
The President is sending his borders are Tom Hollman to
oversee the operation, but the White House is not shifting
blame for tensions in the state. Here's press Secretary Caroline Levitt.
This tragedy occurred as a result of a deliberate and
hostile resistance by Democrat leaders in Minnesota.
White House Press Secretary Caroline Levitt. This morning, we're joined
by Bloomberg DC Breaking News editor Alexander Pearson. So, Alex,
how big a shift is this? What kind of a
change of approach could we see? From Tom Holman in Minneapolis.
Good morning, Good morning, Nathan.
It certainly seems to be a significant shift, certainly in
terms of tone, but potentially also in strategy the Trump administration.
Trump himself and his officials were very defensive of immigration
enforcement officials in the wake of the killing last weekend
of alex pretty and ever since outcry has grown over
video footage of that particular incident. They've come on a
huge pressure also from some Republicans within Trumpson party, And
yesterday we did see the President come out with a
far more measured tone. He said he'd had a call
with the governor of Minnesota and also with the mayor
of Minneapolis, that those were good calls, they seemed to
be cooperative. And also this announcement that he was sending
his Bordi saw to Minneapolis, which in and of itself
is notable given that Tom Hoe is known within the
administration as not really being in favor of the current
operations that are happening in many YR cities. He's not
really in favor of these large scale deployments. He's in
favor of for more focused immigration enforcement. So that's certainly
being read as an attempt by the President to try
to diffuse some of the tensions, bringing down, you know,
some of the shrill tone around this issue, and to
potentially bring in someone like Tomhoman who can shift the
strategy away from what is turning out to be quite
you know, a controversial operation in that city.
Oh, with Homan coming in alex what does this mean
for the figures who had been overseeing ice enforcement in Minneapolis,
Border Patrol Commander at Large Greg Bavino and Homeland Security
Secretary Christi nom who's come under a lot of criticism
as well.
That's right.
So the current reporting is that Bavino will be removed
from the city. We that's been reported overnight. It's not
been officially confirmed yet, but that's certainly the direction seems
to be going. He'll be relieved as of his duties
and Homan will come in and actually manage ice operations
in the city. And Department of Homeland Security Secretary Christinoum
has come under a lot of criticism and there has
been some concern that maybe she her job could be
at risk. And certainly there was a report of a
night from the New York Times that she requested a
meeting with the President in the Oval Office. That meeting
took place, it lasted around two hours. There was no
indication that her job was at risk based on that conversation,
but we don't really know that much more about what
was discussed, but certainly that the meeting took place, you know,
raises some questions about, you know, how secure position is,
given that she was one of the officials who came
out strongest in support of border control in the wake
of the killing over the weekend.
Got about a minute left here, But the outrage over
these killings has Senate Democrats threatening to block a major
government funding bill unless it strips out DHS funds. What's
the risk of a government shut by the end of
the week.
Yeah, the risk is significant. So Senate Minority Leader Chuck
Schumer has threatened not to support that funding package. Unless
that DHS funding is removed. Republicans so far have not
actually said that they're willing to do that. They want
other measures to be taken, but the Democrats have not
budged on their position. They say that the measures so
far proposed insufficient. So at the moment we are heading
towards potentially a partial government shutdown whereby the bills, these
bills will not pass and as a result, there won't
be enough funding for some parts of the government. It
is noted below that ICE and other border immigration enforcement
agencies will still have funding due to last year's tax build.
This is Bloombery Daybreak, your morning podcast on the stories
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