Davos Braces for Trump's Arrival; Bessent Cautions Allies Over Military Missions in Greenland

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 is on his way
to attend the annual gathering of global elites, and he's
promising to talk about America's successes.
The country's never done better.
We have eighteen prillion.
Dollars plus coming in.
We've never had anything like it, and no country has
had anything like it. The President spoke to reporters before
boarding Air Force one, but the trip's already gotten off
to a rough start. The plane had to return to
Joint Bass Andrews shortly after takeoff due to a mechanical issue.
President Trump was eventually able to get on a replacement plane,
but it delayed his departure by more than two hours.
The President's speech is scheduled for eight thirty am Wall
Street time, but Treasury Secretary Scott Bessent in Davos says
he expects the president to be about three hours late.
We will carry the President's remarks when they happen on
Bloomberg Radio. Bloomberg Television and the Bloomberg Podcast channel on YouTube, Nathan.
When President Trump does arrive in Davos, he could find
allies shaken by his stated desire to take control of Greenland.
The President has announced ten percent tariffs on goods from
eight European countries starting next month unless he has a
deal to purchase Denmark's territory. Officials in Europe have started
drafting plans to retaliate, but President Trump says he does
not think they will.
I think that we will work something out when NATO's
going to be very happy and where we're going to
be very happy.
President Trump spoke at a White House news conference or
live here on Bloomberg Radio, marking his first year back
in office. Asked how far he'd go to acquire Greenland,
the President responded, you'll find out.
Well.
Karen Franz is requesting that NATO carry out a military
exercise in Greenland in a bid to boost the region's security.
That brought an angry response from Treasury Secretary Scott Besson
this morning.
If this is what all President Macron has to do
when the European, when the French budget is in shambles,
I would suggest that he focuses on other things for
the French people.
Treasury Secretary Scott Besstt is questioning the message European allies
are sending following Denmark's recent decision, as well as that
of seven other NATO nations, to deploy a handful of
officers to Greenland.
Nathan.
The Treasury Secretary is also pushing back after a Danish
pension fund said it plans to sell it's US treasury
holdings by the end of the month. Academic Are Pensions
cited US fiscal policies and Trump's desire to own Greenland
as reasons for the decision. Here's Bessent again this morning
in Davos.
Well, the size Denmark's investment in US treasury bonds, like
Denmark itself, is irrelevant. That is less than one hundred
million dollars. They've been selling treasuries for years. I'm not
concerned at all.
The Treasury Secretary Scott Besson's comments follow on the US
market route yesterday that saw the S and P five
hundred log its worst day since October, and Bloomberg's John
Tucker's here with the latest.
John, Good morning, and good morning Nathan. Yeah, the S
and p five hundred erased It's twenty twenty six games.
Bomb prices and the dollar fell all after President Trump
threatened tarras on multiple European countries who have opposed his
pressure to take over Greenland. JP Morgan Asset Management's Bob
Michaels sees it this way.
It seems crazy, except that things have a way of
happening which people didn't think would happen. So you have
to back away and de risk a bet.
Well, Michael says, the selloff in markets is a message
to President Trump's administration to take action to restore calm,
as officials did after Liberation Day. Terrems rattled investors last year. Well,
this morning, risk assets may have found a floor. US
treasury yields their backing down, and Japan's longer maturity bonds
they've rebounded after yields there hit a record high yesterday.
Although Japan's route was a separate issue, it was just
one more thing to test investor patients in New York
On John Tucker Bloomberg Radio, all.
Right, John, thank you, welcome. The World Economic Forum moved
from Davos. Larry Fink, the interim CO chief of the WEF,
is thinking about a venue change for the flagship event.
On a post on LinkedIn, he brought up Detroit and Dublin,
and cities like Jakarta and Buenos Aires as possible future size.
A possible relocation would be a blow to Switzerland, which
has benefited from the forum being held in the Swiss
Alps for decades well.
Turning back to the White House Now Karen, President Trump
spent much of his news conference defending the immigration crackdown
in Minneapolis that has sparked confrontations between officers and demonstrators
and led to nationwide protests. The President said his team
needs to focus on highlighting arrests of violent migrants, as
he held up a series of photos of people he
says are criminal, illegal aliens.
In many cases, murderers, their drug lords, drug dealers, they're
the mentally insane, some of them who are brutal killers.
They're mentally insane. They're killers, but they're insane.
But the President says, immigration and Customs enforcement agents can
sometimes make mistakes. Even as he broadly defended the crackdown,
Bloomberg News has learned the Justice Departments issued subpoenas against
top Minnesota officials accused of conspiring to impede the federal
enforcement well.
Staying in the nation's capital, Nathan. The Supreme Court is
hearing arguments over President Trump's effort to oust Federal Reserve
Governor Lisa Cook, and Bloomberg's Amy Morris has more from Washington.
FED Chair J. Powell is expected to attend the Supreme
Court hearing on the Trump administration's attempts to fire FED
Governor Lisa Cook based on allegations that she committed mortgage fraud,
which she denies. Cook spoke about those allegations in November
at the Brookings Institution and.
Multiple briefs filed by my very skilled legal team.
Questions related to this case and its potential impact on
the Federal Reserve have been addressed at lemb.
Critics say the justices are being asked to effectively bless
Trump's efforts to undermine the Fed's independence, giving the president
the power over interest rate policy in Washington. Amy Morris
Bloomberg Radio.
Amy thank you. Turning into company earnings now. Shares of
Netflix are down more than five and a half percent
in early trading. Fourth quarter results largely beat Wall Street estimates,
but Netflix issued a cautious forecast for the months ahead,
citing higher program spending and the cost of closing its
deal for Warner Brothers Discovery. David Joyce covers Netflix for
Seaport Research Partners, they did beat in.
The December quarter, but it's always about what are you
going to do for me next? And while the revenue
guide was a little better than expected, the margin was
a little bit lighter for the guidance. So I think,
you know, people are the concerns that maybe the Warner
Brothers Discovery deal does have something to do with the
long term growth out look that the management has that
might not be as rosie as investors had.
Seaport Research Partners David Joyce. Netflix says the Warner Brothers
deal expected to add two hundred and seventy five million
dollars in costs for this year, and it also plans
to increase spending on films and TV shows by ten
percent this year.
Well Nathan sharers have United Airlines taking off this morning.
They're at more than four percent. The airline beat Wall
Street estimates for the fourth quarter and anticipates a strong
twenty twenty six. It credits demand from high spending domestic
passengers and international travelers 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. Mayors are on them,
Donnie and Vermont Senator Bernie Sanders joined striking nurses on
the picket line yesterday in New York City. Fifteen thousand
nurses went on strike more than a week ago, and
there is still no talk scheduled. The nurses say they
are facing extreme staffing shortage and that patient care is suffering.
Mayor mem dnnick, this is.
About safe working conditions, This is about a fair contract,
This is about dignity.
Senator Sanders says the medical industry is more interested in
turning a profit. The people of.
This country are sick.
And tired of the greed.
In the healthcare industry. In a statement, New York Presbyterian
said all of its hospitals and emergency rooms remain open
and are operating smoothly. They also push back on pay
and benefits. The hospital said its nurses are among the
highest paid in the city, with an average annual compensation
of one hundred and sixty three thousand dollars. Actor and
director Timothy Busfield is ordered release from a jail in Albuquerque,
New Mexico, until his trial. Busfield is accused of having
sexual contact with two child actors on the set of
the TV show The Cleaning Lady. Busfield's wife, actor Melissa Gilbert,
wrote a letter saying her husband has the strongest moral
compass of anyone she has ever known. She spoke outside
the court.
I want to express my gratitude to this judge who
hurt everything he needed to hear and made his ruin
in a very considered and considerate and judicial way.
The judge has ruled the defendant be released on his
own recognizance. Lindsey Halligan, the interim US Attorney in Eastern Virginia,
is leaving her post. Halligan's departure comes after the Chief
Judge and the region istion in order that she may
not continue beyond her one hundred and twenty day term.
Halligan brought charges against two of President Trump's biggest perceived
political enemies, former FBI Director James Comy and New York
Attorney General Letitia James. Global News twenty four hours a
day and whenever you want it with Bloomberg News Now
Michael Barr, and this is Bloomberg.
Hearron, Well, thanks Michael all the time. Now for our
Bloomberg Sports Update, and for them, we bring in John
stash Hour.
Thanks Karen. From night ninety one until this year, only
two center fielders were named for induction of the Baseball
Hall of Fame, Ken Griffy Junior and Kirby Puckett. Two
center fielders are going to go in this year. Carlos Beltran,
a nine time All Star, played twenty seasons, and Andrew Jones,
who spent twelve years in Atlanta, won ten straight Gold
Glove Awards. Only three college basketball teams still undefeated. One
of them is Miami of Ohio, who beat Kent State
in overtime and now has a record of twenty and oh,
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 app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump is on
his way to a World Economic forum in Davos, Switzerland,
that has been shaken by major geopolitical shifts, and just
his first year back in office chief among them. Now,
the President stated desire to take control of Greenland.
We need it for security purposes. We need a for
national security and even world security. It's very important man.
At a White House news conference heard live on Bloomberg Radio,
the President said he thinks he'll be able to work
out a deal that'll make everyone happy. Joining us now
from Davos this morning, Bloomberg Surveillance anchor Lisa Bromwitz, Lisa,
is Davos man ready to make a deal over Greenland.
Good morning, Good morning, Nathan. And that is a perfect
way of putting it. The Davos Man is one hundred
percent for President Donald Trump of the United States. Not
only has his whole image loomed over the entirety of
this conference, but really all eyes are trained on that
two thirty pm Local time eight thirty am Eastern time
speech by President Trump. We understand that it could still
be at that time even after the delay in his plane,
as plane had a slight issue with some of the lighting,
and just to be abundantly cautious, they turned around delayed
to about three hours or so, and so people are
wondering when the speech will actually be but nonetheless everyone
is trying to see what tone he'll take, will be
taking the temperature up or down. So far this morning, Nathan,
we've heard already from Treasury Secretary Scott Besson, and he
had a more fiery type of tone to him, calling
that Denmark pension Fond that said it was selling treasuries irrelevant,
that Denmark in general was irrelevant, and that Europeans should
do the right thing. So really interesting setup heading into
this discussion.
That is an interesting setup given to what we heard
yesterday from Treasury Secretary Besson was that European allies should
sit back, take a deep breath, and see what happens
once President Trump comes. We've seen some pretty heated response
as well from allies ahead of this speech. I mean,
what kind of atmosphere could the president be headed into here?
Well, it's an interesting question. On one hand, of course,
there's a knee jerk anger, frustration, feeling the trade or
all of those emotions that really fed into people looking
for or some sort of So America trade. Just to
be frank on the flip side and what you're hearing
from the leaders of Finland and the United Kingdom and
others is take a step back, take a deep breath, listen,
try to make a discussion that will actually have a
fruitful outcome, rather than make rash decisions on emotions. Who
are speaking with Finland President Alexander Stubi yesterday and he
was saying, you know, these things are negotiation and you
need to have an open mind and you cannot act
purely out of emotion, and that's kind of how he's
approaching it. You've heard a very different response from Francis
Emmanuel Macaun yesterday with his sungnglasses on inside, because he
has been really pushing back against this and saying it's
blackmail and coercion, that they're not going to stand for it.
Yeah, you sort of highlight the kind of disparate approaches
to the president from allies. It raises a question about
whether this is raising a potential of fracturing the European Alliance,
not just in how it approaches the president, but in
its own cohesion.
This is an either a feature or above, but certainly
a consistent feature of the European Union for years, and
part of the issue has been this sort of fracture
within the Union about how to deal with certain things.
Think about the relationship with China, think about the relationship
with the United States, and certainly think about the relationship
that the entire continent has with President Donald Trump. A
real question about what kind of cohesion there can be.
And then behind all of that, does the European trade
deal with United States stand given the fact that some
of these new tariffs would be in addition to that
or potentially interfere with that. We've heard from some government
officials from the United States saying they expect this deal
to still stand. Similar kind of rhetoric coming out of
the European Union. But a real question here, and this
is part of the reason why people had such acts
coming into this. When is a deal actually a deal?
Right?
I mean, if you end up adding tariffs to it,
then is it a moving target that can shift around
at any time? How do businesses plan and if they
don't have a good sense of exactly what the landscape
of tariff looks like that I think people are looking
to clarify as well. Is this a moving target or
is a deal a deal?
Just about a minute left here, Lisa, how does all
this potentially overshadow what we've heard from the President is
going to be his message to Americans back home, addressing
their affordability concerns.
You know, that would have been front and center, and
that was how he was billing it. If he came
here and he discussed Fannie May and Freddie Mack for
an hour to the stage of Davos, I think that
it would fall on some frustrated years who are looking
for the geopolitical discussion nevertheless very much, and I needs
to be focused from his political perspective on some of
the angst and the concerns are about affordability back home,
and you're certainly hearing that from a lot of businesses
here in Davos as well. So it has to toggle
between the two, and I think that's what people are
looking for.
This is Bloomberry day Break, your morning podcast on the
stories making news from Wall Street to Washington and beyond for.
Us on your podcast feed by six am Eastern each morning,
on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
in New York. Bloomberg in ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Plus.
Listen coast to coast on the Bloomberg Business App now
with Apple CarPlay and Android Atto interfaces.
And don't forget to subscribe to Bloomberg News Now. It's
the latest news whenever you want it in five minutes
or less. Search Bloomberg News Now and your favorite podcast
platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Day Bray