Trump Drops Tariff Threat After ‘Framework’ Greenland Deal; Supreme Court Appears Wary of Bid to Fire Fed’s Cook

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 at Davos, Switzerland, and a major reversal from President
Donald Trump when it comes to Greenland. The President now
says he will not impose tariffs on goods from countries
that oppose his effort to take possession of the island.
He says he has reached a framework of a future
deal on Denmark's territory after a meeting with NATO's Secretary
General Mark Ruta.
It's the ultimate long term deal and I think it
puts everybody in a really good position, especially as it
pertains to security and minerals.
And anything else.
President Trump is not giving details of the deal. He's
not saying whether it grants the US ownership of Greenland.
Secretary General Ruta says the island's sovereignty was not part
of the discussion.
We didn't go into those details at all. Well, we
know that the Danes are completely open to having more
American presidence in Greenland, and Greenland is open to debt,
and I think it's good that these discussions take place
visus three of them, because at the end I cannot
negotiate on behalf of anyone.
In an interview with Bloomberg News editor in chief John mclthwaite,
NATO's Secretary General Mark Rutz has said President Trump agreed
that the seven nations in the High North should work
together to protect the Arctic against any adversary. You can
catch the full conversation on the Bloomberg Podcast channel on YouTube.
Meanwhile, Nathan European leaders are meeting in Belgium today for
an emergency summit over Greenland, and Bloomberg A Chief europe
correspondent Oliver Crook is covering the gathering in Brussels.
We know apparently there will not be an invasion of Greenland,
which is a large relief for everybody in Brussels and
everybody presumably sitting in the room there in Davas. We
know that the tariffs will not go in effect on
February the first, and we know that this is apparently
down to Secretary General Mark Rutter's efforts to basically talk
Trump down and as ever to create an off wrap
for the President of the United States to make it
seem like there has been a victory in this while
at the same time trying to not contravene some of
the red lines here in Europe. So Trump has said
about this that this basically will deliver everything the United
States wants from a security standpoint, also from a raw
material standpoint. In terms of the actual details of the deal,
we have very little. We understand that it will apparently
not impinge upon a Danish sovereignty, and.
Bloomberg's all of our Kirk reports, Denmark has said repeatedly
that Greenland's sovereignty is not up for negotiation. The Secretary
General Ruta says Denmark is completely open to an increased
US presence on the island.
Well, Karen, President Trump's Greenland pivot has helped feel a
big rally on Wall Street. Let's get the very latest
from Bloomberg's John Tucker in New York.
John and Nathan call it a pivot or the taco
trade for a Trump always chickens out. The major stock
caverages in the US ended yesterday's session up over one percent.
A UBS basket of stocks exposed to tariffs that close
two point seven percent higher. Then you have shares of
car makers which are in some of the more vulnerable
to tariffs. The helping lead gains in Europe this morning,
with geopolitics on the back burner for now. Alison McCartney
at UBS sees the bull rally continuing this.
Bull market that began in late twenty twenty two. The
things that are motivating it and sustaining it have not
changed in the last forty eight hours.
Well still, technical signals are flashing. Some caution. Analysts warn
the S and P five hundred, who's approaching a setup
that can amplify market swings. Matt Mayley, the chief market
strategist at Miller Tabak, says of the latest market gain,
the president merely offset a short term problem that he
himself created. In New York, I'm John Tucker Bloomberg Radio.
All right, John, thank you. On Greenland's pension fund is
smilling whether it should continue investing in US stocks. Sees
a pension which manages around one point one billion dollars
currently has around a fifty percent exposure to the US.
This chief executives said is contemplating the move and what
would be a symbolic stand against President Trump's push to
cease control of the Arctic Island.
Well Davos today, Karen President Trump's Board of Peace initiative
is taking center stage of the proposed charter announcement on
the sidelines of the World Economic Forum. Russian President Vladimir
Putin says he's ready to commit frozen Russian assets in
the United States toward rebuilding damaged regions of Ukraine once
a deal to end the war is concluded. He also
told Russia's Security Council he could give a billion dollars
of those assets for membership in the Board of Peace.
Speaking at Davos, US Special ENVOYE. Steve Whitcoff gave an
update on plans for the Peace Board, which is still
in its early stages.
We've got twenty or maybe twenty five leaders who have
already said yes, this is not such an easy place
to get to. We had many people who we weren't
sure if they were going to even want to get
an invitation. Now the calling up for invitation, so everyone
wants to be a part of this. What we're going
to do here, what the President is going to do
here will be it'll be game changing for the world.
Fine, how Special Envoys Steve Whitcoff and President Trump's son
in law, Jared Kushner, are expected to arrive at the
Kremlin later today for talks with Vladimir Putin. Ukrainian President
Vladimir Zelenski is meeting with President Trump this morning at Davos.
Now, Nathan to a major story we're following here in
the US. Say, huge powerful winter storm sweeping across most
of the country, and we get the very latest at
Bloomberg meteorologist Craig Allen.
Two high impact weather events will be occurring starting tomorrow
and simultaneously affecting over two hundred million Americans through the weekend.
The first is a direct pipeline from the Arctic down
into the eastern half of the United States and alerts
for extreme cold cover twelve states already in the center
of the US from the Canadian border down to the
Gulf Coast, and we'll expand east. Concurrently, a storm is
developing in the west and will make the two thousand
mile track all across the country to the east coast
by bringing dangerous snow and ice all along its path.
Some cities may get their heaviest snow in over four
five years.
Craig.
Thanks, We'll be checking back with Bloomberg meteorologist Craig Gallon
throughout the morning. This storm is already affecting markets. US
natural gas futures have risen to their highest level since
twenty twenty two. In fact, we've seen seventy percent gains
over three days as frigid weather threatens to boost demand
and crimp supplies.
And Washington Nathan Supreme Court justices seem to suggest they're
wary of President Trump's effort to fire Federal Reserve Governor
Lisa Cook over allegations of mortgage fraud. In Bloomberg's Amy
Morris reports from.
Washington, Solicitor General John Sower argues that Cook isn't fit
to serve.
The American people should not have their interest rates determined
by someone who was at best grossly negligent and obtaining
favorable interest.
Rates for herself.
But those allegations are unproven, and the justices seem to
acknowledge that firing Cook could up end the Fed's independence.
Justice Brent Kavanaugh expressed skepticism of there being no judicial
review of the actions of the president.
Very low bar for cause that the president alone determines.
I mean that would weaken, if not shatter, the independence
of the Federal Reserves.
FED Governor Cook released a statement saying that as long
as she serves at the Federal Reserve, she will uphold
the principle of political independence. In Washington, amymore as Bloomberg
Radio Amy Thanks staying in the nation's capital.
Congress is one step closer to gaining authority to review
artificial intelligence chip sales to China. Let's get the latest
on that from Bloomberg's Lisa Mateo. Good morning Lisa, Yeah,
and good morning Nathan.
So this move, it's not likely to sit well with
the Trump administration and its plans to let in Nvidia
sell its h two hundred processors to China. So here's
what happened to House Committee. They approved bipartisan legislation endorsed
by the panels Republicans and Democrats, and it calls for
congressional oversight of advanced AI chip exports, including a ban
on Nvidia's Blackwell chips for at least two years. The
concern is at sending those highly advanced American chips to
the Asian it could strengthen its military and economy, threatening
US national security. The Trump administration officials will they argue
that selling in China's market will encourage foreign companies to
become reliant on American technology. Now that bill, it now
heads to the House for a floor vote. Lisa Matteo,
Bloomberg Radio.
All right, Lisa, thank you. As speaking of chips, we
will get earnings this afternoon from Intel. Bloomberg's Tom Busby
has more on what to look for.
Well.
After the US government took a ten percent stake in
Intel last year, the chip maker's share price has seen
a resurgence, but it's not out of the woods just yet.
Intel projected to see revenue decline for the fourth quarter,
but new processors for laptops are expected to result in
a rise in future orders, and there's been strong demand
for its bread and butter central processing chips, which are
used to support artificial intelligence. Bloomberg in Census calls for
revenue of thirteen point four to two billion dollars on
adjusted earnings per share of nine cents. Tom Busby, Bloomberg Radio.
Time now for a look at some of the other
storre m He'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, a former Uvalde School's police officer who was
among the first to respond to the mass shooting at
the Texas Elementary school, has been acquitted of criminal charges
that he failed his duty to confront the gunman. Adrian
Gonzalez faced twenty nine charges of child abandonment and endangerment,
one count for each of the nineteen elementary students who
died in the shooting and ten students who survived. Two
teachers also died at rob Elementary School. In May of
twenty twenty two. Gonzales spoke outside.
The court, thank you for the jury for considering all
the evidence and making that.
Burd Gonzalez's lawyer, Jason Goss.
The prosecutor's chars and that he failed in some way
to try to do everything he could to help these children,
and the evidence showed that that wasn't true.
When the verdict was read, Gonzales broke down in tears.
Family members of the children killed also reacted, including Jesse Rizzo,
whose nine year old niece died in the massacre.
The duryman found him as innocent.
For the court of public opinion, he is a coward
and an absolute one hundred percent failure on that day.
Maine has become the latest target in the Trump administration's
immigration enforcement wave. Portland City Counsulor Wesley Pelletaire says, some
families are afraid to go outside.
I want to be really clear, this is a war
of terror that's being waged on our city by the
federal government.
Meanwhile, an appeals court suspended a decision that prohibited federal
officers from using teargas or pepper spray against peaceful protesters
in Minnesota. The US is set to leave the World
Health Organization today. President Trump removed the US from the
Global Health Group in twenty twenty, but the US rejoined
under President Biden. Global News twenty four hours a day
and whenever you want it with Bloomberg News Now Michael
Barr and this is Bloomberg.
Karen Well, thanks Michael.
A time now for our Bloomberg sports updating. For that,
bring in John Stashauer.
Thanks Darren. The Knicks had been slumping. They had lost
nine of their last eleven. Booed loudly by their fans.
At their last home game, this time at Madison Square Garden,
they beat the Nets one twenty to sixty six. They
won by fifty four. It's the most lopsided win in
Knick's history. College basketball top ranked Arizona with an easy
win seventh rank. Nebraska also won both teams for eighteen
and oh. The Yankees resigned outfielder Cody Bellinger. The Mets
acquired pitcher Freddy Peralta from Milwaukee. That's to 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. After threatening much of Europe
with tariffs for opposing his push for Greenland, President Trump
now says he has a framework of a future deal
on the island.
I'll catch everything we wanted, including especially real national security.
That was President Trump, after meeting on this with NATO's
Secretary General Mark Rutta on the sidelines of the World
Economic Forum in Davos, where we are joined once again
by Bloomberg Surveillance anchor Lisa Abromwitz. Lisa, Good morning. The
President says this deal gets the US everything it wanted.
President Trump has said he wants Greenland. Did he get it?
Good morning, Good morning Nathan. Well what we're hearing from
Rutta Speaking to our executive, our editor in chief, John
Micklelsway earlier this morning. Sovereignty of Greenland was not discussed.
It is unclear what the details are in this framework.
There is some reporting saying that the US may have
sovereignty over specific bases where troops are currently located. There's
other discussions around some sort of controlling stake in some
of the ware earth minerals, none of us has been confirmed.
I think there's a lot of confusion even by a
lot of the Europeans and a lot of the European
leaders about what this framework entails and how we got
a complete one eighty where suddenly both a military invasion
and tariffs were on the table and then off the table.
So the details still very much remaining to be seen.
So while we wait for those details, what could this
mean for Europe. There's been so much discussion, so much
concern about whether this push for sovereignty over Greenland could
affect the Alliance, the NATO itself.
There is a meeting on Thursday, I believe of European
leaders will be discussing exactly what the path forward is
going to be. And it was initially in place when
there was still the specter of some sort of military
incursion or invasion of Greenland with the lack of clarity
around tariffs. They're still going ahead with that, and I
think a lot of the discussion, to your point, is
going to be around what is the Europeans relationship with
the United States. I will just say the mood here
among Europeans among Canadians is pretty dark. There are a
lot of ill feelings from the speech yesterday by President Trump.
There is a sense of portrayal and a lack of trust.
When you speak to business leaders, they're relieved that there
is no military incursion on the table and that we
aren't tariffs and feel like this you shall pass. So
unclear exactly which way it will go, but the mood
is very different among European leaders about the pass forward
with its relationship with the United States.
Again, while we wait for those details, the focus now
is turning from Greenland to President Trump's push for a
board of peace for Gaza and possibly more than just Gaza.
We're watching the President speak right now about that. A
very interesting development, not just on who is on the
board potentially, but who isn't.
Yeah, and we've had a couple of leaders say that
they were not going to participate. This came after President
Trump talked about possibly a one billion dollar fee per
year to sit on the board. Also a lot of
questions around what its authority will actually be, what it
will oversee. I mean, look, there are more questions than answers.
Right now, President Trump is giving a speech in the
Congress Center. There are a host of leaders that are
behind him, sitting on the stage alongside him, including Javier
Malay of Argentina, among many others, and he's talking about
how the Board of Peace is going to be working
with the United Nations. Again, so much of what we
have heard there are these broad proclamations and there are
no details, and that has sort of been a theme
throughout Davos, certainly on the political sphere.
Yeah, more questions than answers on multiple fronts. To your point,
Thank you for this, Lisa. Once again great having us
from Davos. That is Bloomberg Surveillance anchor Lisa Abromwitz live
from the World Economic Forum.
Karen Nathan Let's now turn to another major story that
we're following, a powerful winter storm sweeping across a large
part of the country. We want to get the very
latest as Bloomberg meteorologist Rob Carolyn. Rob, good morning. Please
tell us where we stand right now.
Well, Cara, the storm system is just off the coast
of California and it's going to be working its way inland.
It's going to initiate a storm to develop over eastern
New Mexico and Texas tomorrow afternoon and tomorrow night. Right now,
according to latest computer guides, that storm system will track
through the Tennessee River Valley during Saturday night and early
Sunday morning, through the mid Atlantic States on Sunday, and
then off the coast of either the dev Varva or
southern New Jersey by Sunday night and early Monday, and
then south of New England Monday. There are over thirty
states that are going to be impacted by this storm,
from eastern New Mexico into the southern Ohio River Valley,
southern New England, and parts of the Northeast by the
time it's winding down Monday afternoon.
Tell us a bit about what it's bringing. I know
we're hearing reports of snow and ice how much.
Well, there are going to be some areas that definitely
see above a foot of snow. They're going to be
just north of the track. It looks like those areas
probably going to be around the Washington, DC area. They
could see up to a foot of snow. We may
also see a foot of snow around the Baltimore area
right in New Jersey. New York City right now looking
at probably a possibility of at least six inches of snow,
if not more, and Boston now is starting to see
an increased chance late in the weekend of seeing six
or more inches of snow. Will also have heavy snow
across areas of around Kansas City, Saint Louis. It also
looks like southern Indiana and even into parts of Kentucky
could see six to twelve inches of snow from the storm.
Further to the south, significant icing possible from Dallas to
Little Rock to around the Nashville area, and then also
over parts of the Carolinas. As we head through the weekend, and.
When you mentioned the timeline, when will this storm wrap
up and what happens after?
Still cold, very cold, it's going to stay cold across
the eastern two thirds of the country through the end
of the month. The storm will be wrapping up over
the central United States by the time we get into Sunday.
Sunday afternoon. For the Eastern Seaboard, it's a different story.
We'll be looking for the precipitation to more or less
wind down Saturday nights, say, around the district in Baltimore,
New York City area. It's probably not going to be
ending until sometime early on Monday, and it could be
still snowing into the early afternoon hours in eastern New
England on Monday.
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Look 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 auto 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 Daybreak