Trump Seeks Minnesota De-Escalation; Fed Officials Near ‘Kumbaya’ Moment on Rates

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 on the tensions in Minneapolis.
President Donald Trump says he is looking to de escalate
after the killings of two US citizens by federal immigration
enforcement agents. The President sent in his borders are Tom
Holman to replace Greg Baveno, the Border patrol commander who
had been the face of the crackdown. But President Trump
says he's not letting up with the enforcement.
I don't think it's a pullback. It's a little bit
of a change. Everybody in this room that has a business,
you know, you make little changes.
You know.
Bavino's very good, but he's a pretty out there kind
of a guy. And in some cases that's good. Maybe
it wasn't good here.
President Trump tells Fox News he's largely satisfied with how
his team has carried out the operation, while acknowledging it
may have inflamed tensions. He says Tom Holman has been
meeting with Minnesota's governor and the mayor of Minneapolis, and
he hears it's going well.
But Nathan. There are more signs of tension in Minneapolis.
A man attack Minnesota Democrat Ilhan Omar during a town
hall as she called for consequences over the aggressive enforcement.
The man appeared to squirt some kind of liquid on
the congresswoman before security and police tackled him. Omar carried
on with her speech.
Here's the reality that people like this augument don't understand.
We are Minnesota strong, and we will stay with silly
and in the face of whatever they might throw at us.
And Congressman Ilhan Omar called for ICE to be abolished
and for Homeland Security Secretary Christine Nome to resign or
be impeached and Karen.
Those calls are growing louder on Capitol Hill. Senate Minorti
leader Chuck Schumer is adding to the pressure on Secretary Nome.
Christineoam is a liar, She's vicious, She's also incompetent. Donald
Trump must fire her at once before another American is
killed under her watch.
Minority Leader Chuck Schumer spoke on the Senate floor. Two
Republican Senators, Lisa Murkowski and Tom Tillis also say Nome
should step down. Nom has come under criticism for saying
the latest shooting victim in Minneapolis, Alex Pretty, brandished a
weapon and committed an act of terrorism. Multiple videos show
Pretty holding a cell phone before federal agents tackled and
shot him. White House Deputy Chief of Staff Stephen Miller
says Nome's initial statement was based on reports from Border
Patrol agents on the ground. He says they may not
have followed the administration's protocols in the lead up to
the shooting.
Nathan Apples CEO Tim Cook is weighing in on the
fatal shooting of ICU nurse Alex Pretty. In a memo
on Apple's employee website, Cook said he is heartbroken by
the events and called for com Cook added that he
discussed the matter with President Trump. Earlier this week, he
had come under fire from employees for attending a White
House screening of a documentary on First Lady Malania Trump.
The evening of the shooting.
We turned out to the weather Karen, because frigid temperatures
are here to stay and look out. Another winter storm
may be brewing. Let's get the latest from Bloomberg meteorologist
Craig Gallon.
Not again, Craig, Yeah, Nathan, We're watching that very closely.
We're starting off with the bitter cold this morning and
even colder as we go through the week.
Though.
Right now, listening to us in Boston, it is thirteen
with a windchill of minus three. There are single digit
numbers just to the west, a long ninety up in
Massachusetts right now Central Park fifteen with a wind chill
of four, and down towards DC at Washington National it's eighteen,
Dulles seventeen, also with wind chills currently in the single digits.
As for that storm, it's developing once again and definitely
will form off the mid line of coastline. The question
we have right now is whether or not that comes
up the coast like it did last weekend, or whether
or not I'll get pushed just slightly enough out to
see something. We will watch right through the next several days,
and we'll talk about it more coming up in just
a little bit, Nathan and Karen.
All right, that's Bloomberg meteorologist Craig Allen. Thank you, Craig.
We'll be checking back with you throughout the morning. We
want to turn to the markets now and President Trump
well weighing in on the weakness of the dollar. Bloomberg's
John Tucker joins us at the very latest, John, good morning.
Good morning, Karen. The dollars suffered it's deepest one day
drop since last year's tariff rollout, after the President said
he didn't think the currency had weakened excessively.
No, I think it's great.
I've been the value of the dallar.
Look at the business we done.
We ask former Dallas Fed President Robert Kaplan about the
assertion a week dollar makes us goods more attractive.
Yes, it is true, a weeker dollar boosts exports. However,
we have in the United States has thirty nine trillion
of debt on its way to forty trillion plus. And
when you have that much debt, I think stability of
the currency probably Trump's exports.
President Trump seeming a difference to the doll drop is
seen by some as another signal to sell the currency
and accelerate the quiet quitting of assets like US treasuries
in this dollar debasement, pushing gold to a record high
dollar dxy down a tenth of a percent This morning,
Gold at fifty three twelve an ounce. You know you,
York Im, John Tucker, Bloomberg Radio.
All right, John, thanks to all this. As the Federal
Reserve gets ready to make its first rate decision of
the year that's coming up this afternoon, and after three
consecutive cuts, the Central Bank is widely expected to leave
rates unchanged. We get a preview from Bloomberg's Michael McKee.
Today's question for the Fed will it be policy or politics?
The central bankers won't be changing the benchmark lending rate,
and there's no new dot plot and no new economic forecasts.
For the markets, the issue is whether they get any
kind of hints about when or if rates will be
cut again. But for Washington and Wall Street, the overriding
question is what impact President Trump's threats might have had
on the Policy Committee and whether they have convinced Jay
Powell to stay on as governor when his term as
FED chair expires in May. Will Powell repeat his angry
response to being subpoened by the Justice Department or will
he seek to de escalate any suggestion Paul may stay
on to handicap Trump's efforts to control the Fed will
have an impact on the rate outlook. Michael McKee, Bloomberg Radio.
All right, Mike, thanks to be sure to stay with
Bloomberg for full coverage of the FED decision on a
special edition of Bloomberg Surveillance starts at one thirty pm
Wall Street Time on Bloomberg Radio, Bloomberg Television, and the
Bloomberg Podcast channel on YouTube.
Earnings Nathan also in focus after the closing bell Microsoft
Meta platforms in Tesla. I'll report this afternoon and we
get a preview with Bloomberg's Tom Busby.
Meta's continued investment into AI infrastructure is key for investors
after CEO Mark Zuckerberg vowed to spend six hundred billion
dollars on AI projects before the end of this decade,
with several data centers already under construction. Also key metas
advertising revenue and user data from Facebook, Instagram, and What's App.
Bloomberg consensus calls for total revenue of fifty eight point
four to one billion dollars for its fourth quarter, on
earnings per share of eight dollars nineteen cents. Meantime, Microsoft
is expected to report a fifteen percent rise in sales
for its second quarter, but also a record thirty six
point two billion dollars in just three months on server
farms at AI chips to run them, and thanks to
expected growth and it's as your cloud computing unit. Bloomberg
consensus calls for revenue of eighty point three billion dollars
on ernings per share of three dollars ninety two cents.
Tom buzzby Bloomberg Radio.
All right, Tom, thanks, Tech earnings are and focus overseas
as well. We heard from chip machine maker ASML. The
Netherlands based company says fourth quarter orders far exceeded analyst expectations,
the rapid development of artificial intelligence infrastructures boosting demand for
ASML's cutting edge chip making machines. The company also says
it plans to cut about seventeen hundred jobs. That represents
about four percent of ASML's workforce, and the shares this
morning are up nearly five percent.
Back here in the day, Snathan another chip maker soaring
after releasing earnings. Shares of Texas Instruments are at more
than seven percent. That shipmaker gave a robus forecast for
the first quarter, indicating that demand for industrial equipment and
vehicles is recovering from a rough patch.
On the flip side, Karen, shares of luxury retailor LVMH
are down more than seven percent. Sales at its key
fashion unit fell over the holiday season as the Louis
Vatan owner continues to suffer from sluggish demand.
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 new Calls to lower the
temperature in the Persian Gulf for coming from the United Nations.
It comes as President Trump promised pressure around following the
violent crackdown on protests within the country. UN Secretary General
Antonio Guterres is asking for maximum restraints from all parts
parties regarding the escalating tensions in the region. Spokesman Stefond
du jark on the arrival of the USS Abraham Lincoln
aircraft carrier in the Middle East near Iran's border.
The SECRETARYOHN is very concerned, indeed about the reported military
build up in the Persian Gulf region.
Meanwhile, activists say more than sixty two hundred people have
been killed in Iran's crackdown on nationwide protests and many
more are feared dead. In North Texas, three young brothers
drowned in an icy pond. The boys were only six
eight and nine years old. Their mom, Cheyenne Hangeman, says
they were playing near upon in Bottom when the ice
broke and the boys fell in. Hangman jumped in after
them but was unable to get them out. I tried
to fight for my kids' life where I had to
watch them struggle and drown and I couldn't helped them.
First responders and a neighbor pulled them from the freezing water,
but they did not survive. A federal judge in New
York is holding a hearing today on the future of
the city's congestion pricing program, the MTA assuing the Transportation Department,
which is trying to shut it down. City leaders say
the toll plan is cutting traffic and raising millions. Global
news twenty four hours a day and whenever you want
it with the Bloomberg News Now Michael Barr and this
is Bloomberg Karen.
Thanks Michael, All time now for our Bloomberg Sports update,
and for that we bring in John stash Hour.
Thanks darn It looked like Novak Djokovin is gonna be
ousted in the quarterfinals of the Australian Open. Lorenzo Musseti
won the first two cents, but in the thirty injured
his right thigh had to retire. Jessica Pagoula won her
quarterfinal match over fellow American Amanda Anisimova. Nebraska and College
Basketball took its twenty and zero record of Michigan, two
teams both ranked in the top five. The Wolverines won
seventy five seventy two. Ucon beat Providence. The Huskies are
twenty and one. 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 Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business Apple. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. After two deadly shootings of
US citizens in less than a month, President Donald Trump
is looking to a leadership shuffle to turn around a
volatile immigration enforcement surge in Minneapolis.
We have Tom Holman there now, we put him in there.
He's great, and they met with the governor of the
mayor everybody else, and well, we're going to de escalate
a little bit.
I was President Trump speaking to Fox News in Iowa,
head of a rally on the economy joining US now
as Bloomberg News national security reporter Nick Watdams. So, Nickot's
early days now with Tom Homan in Minneapolis. But are
we seeing signs the tensions are cooling now?
Good morning morning.
Yeah.
I think what you're seeing right now is President Trump
essentially saying he wants to climb down a little bit
after the two shootings. I mean, this issue has proven
to be so divisive and and you have seen some conservative,
some members of Congress, even some members of the MAGA base,
particularly on the issue of gun rights, because the second
American who was killed, Alex Pretty, was carrying a gun
that he was permitted for. So it's a very complicated
issue for the president that sort of you see the
clash of two of his priorities. Obviously, Republicans have tended
to support this very strong immigration crackdown, but there is
a sense right now that when you see the federal
agents who killed Pretty, and the video evidence suggests that
he had already been disarmed by the time he was shot,
the president, I mean, it's an extraordinary situation to hear
President Donald Trump say he wants to de escalate a
little bit in that quote you just played so very
much a reflection of where his mind is right now.
They have to wonder whether things are de escalating when
even with this leadership shuffle, the president is at least
for now saying he's standing by his Homeland Security Secretary,
Christi Gnolm, who's come under fire for her initial comments
about the shooting, and now on Capitol Hill we're hearing
even more calls for her to resign.
Yeah.
I mean again, two very competing interests from the president.
One is you may see a certain amount of displeasure
from him against Christy Noam, But at the same time
it has been very much a policy of his in
the second term where he does not want to fire
his cabinet secretaries and his top leadership. So in the
first term it was basically a carousel of officials. He
had several defense secretaries, chiefs of the chief of staff
was a rotating job, national security advisor. There was so
much turnover, and he got a lot of criticism from that.
This time around, he has really almost to a person
not fired or replaced anyone in his group because he
wants to project an era, an aura of stability. So
what you're sort of seeing more is that officials will
stay in their posts, but they might get sidelined. We're
still waiting to see some evidence of that with Christy Noam,
but for the at least, really a determination not to
have as high turnover as he had in the first term.
And how high can we say tensions are now when
we saw these videos just last night of Democratic Congresswoman
ilhan Olmar apparently getting attacked at a town hall.
Right, so, I mean the immediate tension and anxiety around that,
stepped up enforcement action seems to have eased somewhat. You're
not seeing the open clashes between protesters and federal agents.
They have pulled back a little bit, and you're seeing
a lot of conversations between state leaders who were Democrats
and the Trump administration. But when you see that ilhan
Omar attack, what that really reflects is the much deeper
and broader tension and anxiety around her, in particular given
the degree to which the administration has vilified her. And
I should say, we don't really know much about the
person who sprayed that liquid and was involved in that incident,
and he ilhan Omar has really been a long time
target of the presidents but that also reflects this much
broader issue where Congress people have been going out and
some are even reluctant to do town halls because the
atmosphere is so charged and there is so much tension
and anxiety between the right and left in the United States.
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