Winter Storm Pummels East Coast; Tariff Defeat Tests Trade Deals

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.
No, Karen, we want to bring you first the very
latest on the powerful winter storm pounding the northeast. Let's
check in with Bloomberg meteorologist Craig Allen. Craig, how bad is.
It, Nathan? It is so so heavy right now. The
snow is falling very heavily across New Jersey from Philadelphia
on up towards Newark. New York City getting hit pretty
hard right now. The last official reading out of New
York City was about ten and a half inches. It
is snowing heavily right now in Boston too, so it
finally reached Boston later, but later during the nighttime hours.
So A.
Mounts in Massachusetts and Connecticut and so forth are generally
in the four to eight inch rains and climbing rapidly.
Long Island and coastal sections of New Jersey are the
areas that are getting it the worst. Over a foot
foot and a half another half foot or more is expected,
and the winds are gusting over fifty miles per hour.
In fact, I could say that I'm on generator right
now talking to you at this moment as well. We
lost Bauer earlier this morning.
Oh my goodness. So when are we expecting all this
to end, Craig, Not till the end of the afternoon.
You know, I don't think that we're going to see
a complete ending here until somewhere between three and six.
For New York City as well as Boston. Let me
mention that DC did not get hit nearly as hard.
There's a slushy one to three locally two to four
up towards Baltimore on the ground there, and the snow
is basically over except for some snow showers. But from
New York to Boston it's going to continue much of
the day.
All right, Bloomberg Meteorologists, Craig Allen, Thank you, Craig, and
of course we'll be checking in with you throughout the morning.
While the snow is piling up in New York City
and that has the mayor closing schools and enacting a
travel ban. Bloomers. John Tucker continues our team coverage from Manhattan.
John, Good morning, Yeah, good snowy morning to you, Karen,
New York City hasn't faced a storm of this scale
in the last decade, and he may be new to
the job, but Mayor Mom Donnie already a snow veteran.
We are looking to utilize every tool that was successful
last time around and then utilize new tools as well.
Highways, bridges, and streets into New York City were closed
last night. Schools are shut this morning. The subway system
is operating with local service. Well Metro North is running
a weekend schedule, a service on the Long Island Railroad
that is suspended. New Jersey Transit is shuttered, no service,
and a state of emergency exists in New York and
New Jersey. The message throughout the tri state area simple,
stay off the roads. Here's Connecticut Governor Ned Lamont.
We have the best Olympic hockey team in the country
and they do pretty well on ice, but we don't.
So Advice number one is stay off the roads.
That's a sentiment echoed by New Jersey's these new gobetor
Mikey Cheryl.
We need to be prepared, we need to be safe,
get water, get all of your charging.
Done with your devices.
Stay off the roads.
In Boston, Mayor Michelle Woo declared a snow emergency. The
most snow New York got in a day that was
twenty seven inches in January of twenty sixteen. Now keep
in mind, everybody what our meteorologist Rob Carolyn is saying.
It could take until April for us to break out
of this weather pattern. In New York time, John Tucker, Bloomberg.
Radio, Come on, John, all right, thank you all. This
storm is wreaking havoc on air travel as well. Bloomberg's
Alexis christoffers joins us now at that part of the story.
Good morning, Alexis, Good morning Nathan.
The massive storm is already grounded more than fifty five
hundred flights this morning and delayed nearly seven thousand. Those
numbers are expected to climb as the blizzard set to
dump up to thirty inches of snow in some areas.
Airlines began offering travel waivers to help customers avoid flight disruptions.
Impacts are respect aecially severe at New York's LaGuardia Airport
and JFK, where nearly all flights have been canceled today.
Delta Airline says it expects to halt operations at New
York and Boston airports into tomorrow, and Delta is also
warning of broader disruptions across its network due to a
technical issue affecting its check in and boarding systems. If
you're scheduled to fly today, call your airline to check
your flight status before heading to the airport. In New York,
Alexis Christoffras Bloomberg Radio.
Yeah, good advice, Alexis. Thank you. While some may say
you deserve a medal for braving these blizzard like conditions,
millions are still buzzing about the US performance in the Olympics. Yesterday,
the US team closed out the games with a gold
medal in men's hockey. Bloomberg. John Stashower joins US Now
with more on the historic win John all.
Right Kerny overtime in men's hockey and a US victory
on a gold medal winning goal scored by the New
Jersey Devil's Jack Ughes.
It's a journey, it's the whole lifetime of work, you know.
I'm just a part of that. So I think every
single person in that game, then I can be proud.
And obviously it was a great game and we're the
team with the better outcome, but just a great game
between USA and Canada.
It was that came three days after the US women
also beat Canada, also to one in overtime for their
gold medal. That came forty six years to the day
after the miracle upset of the Soviet Union in the
US had not won the gold in men's hockey since then.
Working up with sports John Stashieh with Bloomberg Radio. All Right, John,
thanks down of the big market news. Out of Washington,
d C.
Tariffs. The Trump administration is working to salvage its trade
policy after the Supreme Court struck down the president's emergency duties.
In response, he rolled out a ten percent global tariff,
then raised it to fifteen percent. That move came under
Section one twenty two of the nineteen seventy four Trade Act.
Treasury Secretary Scott Besson says the policy will stay in
place for one hundred and fifty days until more permanent
tariffs can be imposed.
The President the administration remains undeterred and restoring American factories
and getting rid of these massive trade imbalances. That's the
big story here is that we are immediately going to
go to Section one twenty two tariffs that the revenue
for the US Treasury for twenty twenty six. The projections
are unchanged.
Secretary Besset appeared on CNN's State of the Union. Despite
the High Court's ruling, US Trade Representative Jamison Greer says
trade deals struck in recent months will stay in place.
He was on CBS's Face the Nation heard Sundays on
Bloomberg Radio.
I've been speaking to these folks as well, and I've
been telling them for a year whether this case, whether
we won or lost, we were going to have tariff.
The President's policy was going to continue. That's why they
signed these deals.
US Trade rep.
Jamison green In a Section one twenty two allows presidents
to impose temporary tariffs in situations of fundamental international payments problems.
Many economists say the US is not facing that risk well, Nathan.
As a tariff fallout continues, the European Union is holding
an emergency meeting to reassess its US trade deal. At
the same time, India is holding off on talks to
finalize its interim US trade agreement. European Central Bank President
Christine Laguard says President Trump's latest global tariff could upset
the relationship with the EU.
It's critically important that all people in the trade, both
outside of the United States but also in the United States,
have clarity about the future of the relationships.
ECB President Christine Leaguard was also on face the Nation.
As it stands now, the UK could be the biggest
loser from President Trump's fifteen percent tariff. It had negotiated
a ten percent rate. China, India and Brazil stand to
benefit the most.
And for the first time, Karen, we're starting to see
global markets react to the Supreme Court's rolling. Stocks in
Hong Kong rose two and a half percent, the sen
sex in India is up about a half percent. We
get more from Bloomberg Market supporter of verr abu Omar.
Some of the Asian countries are set to benefit from this,
namely India and China. As a matter of fact, Morgan
analysts say that the net or the average weighted tariff
for Asian countries comes down to seventeen percent from twenty percent.
Bloomberg Sabi abu Omar notes the dollar has weakened since
the tariff ruling. In this morning, US stock futures are
lower after all three major indexes gained on Friday.
Now, Nathan, let's switch gears and turn our focus to
the Middle East. The US and Iran are set to
resume nuclear talks in Geneva on Thursday. Talks come in
the face of a US military build up in the region.
Arounds for a Minister says, Tehran is working on a
proposal for an agreement that meets the needs of both parties, but.
There is a good chance to have a diplomatic solution,
which is based on a win win game. A solution
is at our riach, so there is no need for
any military built up, and military build up cannot help
it and cannot pressurize US.
And Arounds Foreign minister says, the Islamic Republic will not
be pressured by the US military build up in the
Middle East. We get more in the situation from Bloomberg's Jumana,
Bursechi and buy.
I think if you go back to last year, President
Trump was able afterwards to say that they had conducted
very successful operations because they obliterated quote unquote Iran's nuclear centrifugias.
Of course, we know now that they haven't completely obliterated
the program, but they've obliterated at least the time frame
at which the Iran can create a nuclear weapon this
time around, it depends on what they're trying to achieve.
And Bloomberg strew monu percent. She notes that President Trump
is considering limited strikes on Iran, which risks a destabilizing
conflict in the region.
Well, back to markets for a moment, Karen, because you
have a couple of major stocks on the move to
tell you about. Shares of Novo Nordisk are down more
than eleven percent in Copenhagen. That's after results from a
trial of its latest weight loss drug, the Next Generation
Obesity Shot, fell short of expectations compared to its rival,
zep Bound, made by Eli Lilly. Those shares are up
four percent in the pre market.
Time now for look at some other Glory's making news
in New York and around the world, and for that
were joined by Bloomberg's Michael Barr Michael, good morning.
Good morning, Karen. Nick Reiner is sent to enter Replee
to murder charges today following his arrest late last year
in the stabbing deaths of his parents, director Rob Reiner
and his wife Michelle Reiner. The thirty two year old
faces two counts of first degree murder. His defense attorney,
Alan Jackson withdrew from the case. Reiner was assigned a
public defender. He remains in jail without bail. The US
Secret Service set an arm man was shot and killed
after entering the secured area at President Donald Trump's ower
Lago estate in Florida. Palm Beach County Sheriff Rick Bradshaw.
The security detail detected that an individual had made his
way into the enterperimeeur of Barlago. A deputy and two
Secret Service agents on the detail went to that area
to investigate.
A portrait of the alleged gunman is emerging. The suspect
is identified by the FBI as twenty one year old
Austin Tucker Martin. A cousin, says that the family is
generally made up of Trump supporters, but Martin's feelings were unclear.
The young man allegedly traveled from North Carolina to maer Lago.
Neighbors of Martin are expressing their.
Shock for being a Trump supporter.
You know, I appreciate what Trump does for us, and
I don't see why things like this should happen, but
they do.
The President and First Lady were not at maer Lago,
spending the weekend in Washington. All eyes on Mexico admit
an explosion of drug cartel violence, the State Department telling
US citizens to shelter in place as some airports are
shut down. The violence erupted after the head of Mexico's
most powerful cartel was killed by the Mexican Army on Sunday.
Authority to say the man known as Elmencho died while
being transported to a hospital. 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.
Thanks Karon.
The Olympics are over. They ended with overtime in men's
hockey and a US two to one victory over Canada.
The gold medal winning.
Goals scored by Jack Hughes of the Jersey Devil's minute
forty one into overtime. It came three days after the
US women also beat Canada two one and overtime for
their gold medal, and it came forty six years to
the day after the miracle upset of the Soviet Union
in Lake Blast that the US had not won the
gold medal in men's hockey since then, the twelfth gold
won by the US in the Games. Norway won the most.
That's 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 opp This is Bloomberg Daybreak.
Let's get more now on that powerful snowstorm that's pounding
the Northeast this morning, affecting much of the East Coast,
and it's canceling public transportation and flights. We're joined now
by Bloomberg meteorologist Craig Allen. Thanks to the power of
a generator, you certainly are feeling the effects, as are
many millions of others. Actually, this storm's not a joke.
Where are we in the system?
All right?
The system is moving off the del Marvin now about
oh fifty sixty seventy miles off the del Marves, so,
in other words, southern Jersey, Delaware and the worst of
it right now, the heaviest snow, the strongest winds, are
being felt within about a one hundred mile radius all
directions of New York City. It is over for Washington,
DC and really not much too far away from the storm.
So a slushy one to two, two to four in
some of those locales Washington and suburbs. But it is
snowing very heavily, windsor gusting over fifty five miles per
hour in around New York City. We could actually see
another five to ten inches of snow as we go
through the morning and into this afternoon. And it's first
making its way on up towards Boston. So Connecticut has
hit very hard, with about five to ten so far,
and at least another five to ten to go four
to eight making its way through Rhode Island and Boston,
while not much on the ground just yet, as I said,
is first getting into the worst of it now, and
it will be a very snowy, windy day with blizzard
like conditions at times in and around Boston and certainly
south of Boston down towards the Cape.
Okay, so if my mouth is correct, you're talking two
feet in some areas.
That is correct. There will be snowfall amounts of let's
say eighteen to twenty four inches, and I think the
most likely area for that will be along the Jersey
Shore up towards New York City, or actually east of
New York City. The last report we got from Central
Park was about close to ten inches of snow so far,
but there is well over a foot already fourteen to
fifteen inches of snow over parts of Long Island, and
especially as you make your way across the eastern sections
of Long Island. So the proximity to the storm itself
is part of the reason for the snowfall, the way
it's dispersed across the Northeast Corridor.
Craig, When does this all wrap up?
That also is a very interesting question and depends on
your location. Again, there's not much more expected around DC.
Maybe another few snow showers from time to time through
the day, but little in the way of significant accumulation.
Around New York City, another five to ten seems very
very likely through the afternoon. It may take until the
latter part of the day, and the snow in the
Boston area is going to continue right through the night tonight,
and that's why the totals will go up substantially. Boston
and suburbs as we go through at least the next
I would say twelve to eighteen hours for Boston.
All right, well, hunker down, stay warm, d you being here.
That's Bloomberg meteorologist Craig Allen Nathan, all right.
Karen, thank you. Along with this blizzard heading up and
down the East coast. The trade wins are shifting now,
with the Supreme Court striking down President Trump's emergency tariffs
last week. Now, the administration's trying to keep the President's
signature economic agenda intact. US Trade Representative Jamison Greer says
the President still has authority to impose a fifteen percent
global tariff right under Section one twenty two of the
Trade Act.
Considering the severity of the issue we're dealing with, which
is a huge, huge unfairness, huge disparity, huge imbalance between
United States and his trading partners, It's just the urgency
of the situation demands that he use his full authority.
US Trade rep. Jamison Grier appeared on CBS's Face the
Nation Heard Sundays on Bloomberg Radio and joining us now
is Bloomberg News Global Trade editor Brendan Murray. Brendan Let's
get back into that subject that the trade representative raised
there in that clip. How urgent is the trade disparity
that the Trump administration sees really?
Good morning, good morning. It depends on who you ask,
but a lot of people will say that the US
has had a large and growing trade deficit for many years,
if not decades, and the US has fared just fine. Now, obviously,
the US has lost a lot of manufacturing jobs over
the years, and those are the kinds of jobs that
the Trump administration is trying to restore by this encouraging
companies to buy in the US rather than from overseas.
And the Trump administration, having lost the Supreme Court case
and this broad authority that the President used to apply
tariffs now has to shift gears and go to Plan B.
Plan B is this fifteen percent of global tariff But
that only lasts one hundred and fifty days, so that
gets you into mid August, and then the administration says
that by then they can have other authorities that are
more legally tested and durable in place to redirect the
kind of flows of trade that they're trying to do.
So the message from the administration is same policy, different tools,
but in the interim It means companies governments that have
trade deals with the US are asking for details, uncertainty
returns like it did, like we had last year, until
the administration can offer some clarity about what tariff rates
are and what countries they're targeting.
Well, the White House is in the meantime telling trade
partners to stick to the current deals. Can they though,
if the tariff rates are sort of under question now
with the Supreme Court striking down the basis of many
of those raids, Well.
Exactly, that's the main question governments around the world are asking.
The European Union is asking that very question today as
they consider suspending their implementation of the US EU trade deal.
So that could be one of the first signs of
countries that are saying, hold on a second here, you've
just changed the rules of the game, and we need
to we need to go back to the negotiating table.
Other countries, some in Asia have said, will abide by
the by the terms of these deals that we've that
we've worked out, subject to a clarification about what these
new details are. So the President signed something like fifteen
interim deals framework deals and concluded about five others and
so and those account as the US Trade Representative Jamison
Greer has said something like forty percent of the US's
trade with the rest of the world. So there's a
lot at stake here the but the fine print needs
to be reviewed again. Given the Supreme Court's decision on
Friday to take away the president's unilatter use of tariffs.
We have about a minute left here, Brendan. Could the
Section one twenty two tariffs this one hundred and fifty
day window, could that face a legal challenge?
Now, yeah, there's some discussion about that amongst legal experts
and economists that they're basing this one twenty two is
based on a balance of payments crisis. Now it's debatable
about whether the US has a balance of payments crisis.
There certainly is a wide trade deficit, but whether that
meets the definition of a balance of payments crisis is
something the lawyers are going to have to hammer out.
But you know, legal court cases take a lot longer
than one hundred and fifty days to work through. So
the feeling is administration is going to go with this.
It might be challenged in court, but the clock will
run out and they'll have these other authorities in place by.
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