Powerful Winter Storm Threatens East Coast; Russia Sees No Breakthrough After Ukraine Talks

0:00Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London with the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens It's smart, calm and to the point And it fits into your morning You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris On Apple, Spotify, YouTube or wherever you get your podcasts

1:02Bloomberg 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 impending major winter storm that will affect a large part of the country. The East Coast, set to be particularly hard hit. Let's get the very latest. Bloomberg meteorologist Craig Allen is with us. Craig, what's the update? We are definitely going to get our share, Nathan. And the first thing is that a cold weather advisory is in effect. You need the cold air. That's coming in during the day today. As for the snowfall, that's next.

1:41We are all under a winter storm watch from Washington on up through Philadelphia to New York City and all the way on up to Boston. What this means is that there is the potential for six inches of snow or more. It will start sometime late Saturday night and continue into Sunday for Washington. It will probably start around Sunday morning or so around the New York City area and then take until mid-afternoon on Sunday to reach on up into Boston. It's going to start hard and fast and stick immediately because of all that cold air. And I suspect we'll all start with a six-inch snowfall. There could be a top number of 12 to 18 inches of snow in any of these areas along the I-95 corridor.

2:26And the only thing that would keep those numbers down is if there's a mix with sleet and freezing rain, a little changeover towards the end. I will have more updates on this to follow as we go through the morning. Karen and Nathan, back to you. Well, before we let you go, Craig, got to know when this is expected to end. Oh, you know what? This is a long-duration event. So what we get during the day on Sunday, whether it starts in the morning, the afternoon, or later in the afternoon for up into New England, it is not going to completely end until Monday. I would say somewhere close to lunchtime on Monday.

3:03So we're easily going to see about a 24-hour event of snowfall, possibly, as I said, mixing with some sleet or freezing rain towards the end of it to make it even that much more icy. And then after that, the cold stays right through the week. That snow's not going anywhere. All right, Craig Allen, thanks so much. And as you said, we will be checking in with you throughout the morning. The storm is already having an impact on the airlines. They're making contingent plans for an expected weekend of messy travel. And Bloomberg's Tom Busby continues our team coverage. U.S. carriers are out with backup plans for passengers ahead of wicked winter weather expected to impact 125 million Americans from today through Monday.

3:42and disrupt air traffic from coast to coast. Delta offering to rebook flights to and from 41 airports in the South and Southwest. United waiving change fees for flights at 61 airports. An American will do the same at airports from New Mexico to Virginia. Even low-cost carriers like Spirit, Southwest, and JetBlue will waive fees for travelers. Tom Busby, Bloomberg Radio. All right, Tom, thank you. As we continue to track the weather, we want to turn now to President Donald Trump in his foreign policy plans because we're learning more about his framework for a future deal on Greenland. Sources tell Bloomberg News that the U.S.

4:17wants to rewrite its defense agreement with Denmark to remove any limits on its military presence on the island. The current arrangement was signed in 1951, amended in 2004. It currently calls for the U.S. to consult with both Denmark and Greenland before making any significant changes. The president says his goal is permanent total access to the island. We can do anything we want. We can do military. We can do anything we want. And it's being negotiated. And let's see what happens. I think it'll be good. President Trump spoke aboard Air Force One on his way back to Washington from Davos. Danish Prime Minister Mette Frederiksen says she's open to expanding the 1951 treaty.

4:56I think everybody in NATO agrees about that. The Arctic states, but also other member states, that we need a permanent presence from NATO in the Arctic region, including around Greenland. But Danish Prime Minister Bente Fredriksen says the question of Greenland sovereignty is a red line. And now, Nathan, with President Trump making progress on Greenland, he's openly musing about sending NATO troops to the southern border with Mexico. He posted the idea on social media, saying maybe the U.S. should invoke Article 5, force NATO to come to the U.S. and free up Border Patrol agents for other tasks.

5:28It's unclear whether the post was just a jab or laying the groundwork for a serious policy statement. President Trump has long claimed NATO's Article 5 mutual defense obligation is a one-sided deal against the U.S. Now, Karen, let's turn to the latest on the war in Ukraine. The Kremlin says the territorial issue remains unresolved after Russian President Vladimir Putin held late-night talks with U.S. Envoy Steve Witkoff and Jared Kushner. This comes after Ukraine's president, Vladimir Zelensky, used a speech at Davos to criticize Europe for relying too much on American support. Dear friends, we should not degrade ourselves to secondary roles, not when we have a chance to be a great power together.

6:12We should not accept that Europe is just a salad of small and middle powers seasoned with enemies of Europe. When united, we are truly invincible. President Zelensky says top Ukrainian officials will attend planned talks today with the U.S. and Russia in the United Arab Emirates. Well, Lincoln, President Trump says his new board of peace is withdrawing Canada's invitation to join. It comes just days after Prime Minister Mark Carney issued a withering speech at the World Economic Forum in Davos, warning against coercive tactics by the world's great powers. Carney returned to Canada with a similar message.

6:50Now, Canada can't solve all the world's problems, but we can show that another way is possible, that the arc of history isn't destined to be warped towards authoritarianism and exclusion. It can still bend towards progress and justice. And last week, Canadian Prime Minister Mark Carney accepted the offer to be on the new Board of Peace. Well, Mark Carney's not the only prominent figure President Trump is apparently at odds with, Karen. He is now suing Jamie Dimon and JPMorgan Chase. Bloomberg's John Tucker's in New York with the latest on this. John. And Nathan, years of strain between Trump and Jamie Dimon have now culminated in a$5 billion lawsuit.

7:32This was President Trump and Air Force One complaining. J.P. Morgan Chase once debanked his real estate company. All of a sudden, I was told, no, you can't do that. It's so wrong. I don't know what their excuse would be. Maybe their excuse would be the regulators. I don't know. It is a real issue. This was Diamond last year responding to a question about debanking. The rules and the requirements are so onerous, and it does cause people to be debanked, who, in my opinion, should not be debanked. Trump and Diamond have traded bars over the years, and the relationship further strained in Davos when Diamond pushed back against some of Trump's comments.

8:09Investors unfazed by the suit, shares closed up half a percent. And after the lawsuit was announced, the bank's board announced it paid Diamond$43 million last year. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, we turn to the nation's capital now. and former special counsel Jack Smith testified before the House Judiciary Committee his first public testimony about his investigations into President Trump's actions after the 2020 election. Bloomberg's Amy Morris reports from Washington. The committee is looking into what it calls politically motivated prosecutions of President Trump, targeting the investigators who scrutinized the president.

8:44But Smith insists he acted without regard to politics.

8:52President Rather than accept his defeat in the 2020 election, President Trump engaged in a criminal scheme to overturn the results and prevent the lawful transfer of power. Smith told the House Judiciary Committee that if the case against Trump went to trial, he had Trump allies as witnesses who would testify that they told Trump he lost the 2020 election. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Turning to markets now after two straight days of gains, stocks are lower as we close out the holiday shortened trading week. Shares of Intel are lower by more than 10%. The chipmaker gave a lackluster forecast and warned it's struggling with manufacturing problems.

9:29Intel CEO Lip Bhutan told analysts the turnaround is long-term. We are on the multi-year journey. It will take time and resolve. But my team and I are committed to rebuilding this iconic American company and increasing the long-term value for our shareholders. Intel CEO Lip Bhutan's first quarter projections for revenue and earnings both fell well short of Wall Street estimates. Nathan, TikTok and its Chinese parent, ByteDance, have closed a deal to create a new American entity. It officially avoids the threat of a ban in the U.S. that has been in discussion for years. The social video platform company signed agreements with major investors, including Oracle, Silver Lake, and MGX, to form the joint venture.

10:16The new entity will be responsible for moderating content on TikTok and protecting U.S. users' data. And sticking with Asia, Karen, as expected, the Bank of Japan has held rates steady. The BOJ issued higher inflation forecasts that leave the scope for a hike to come earlier than expected this summer.

10:36Time 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. Here in New York City, along with the rest of the Northeast, are forecast to get pummeled with more than a foot of snow this weekend. It's a test for new mayor Zoran Mamdani, as the massive weather system threatens power, airline delays, and transit system problems. While we cannot control how much snow will actually fall this weekend, we can control how we prepare for and respond to this storm. If the forecast holds, it would be the biggest snowstorm to hit Manhattan since 2021.

11:15Minnesota has been the center of immigration raids for weeks, and the latest case has local advocates outraged. Attorneys and school officials say a five-year-old coming home from preschool was taken by federal agents along with his father. Vice President J.D. Vance speaking in Minneapolis says the agents were protecting the child. What are they supposed to do? Are they supposed to let a five-year-old child freeze to death? Are they not supposed to arrest an illegal alien in the United States of America? However, multiple people on the scene reportedly offered to take the child in but were refused.

11:51Defense attorney Mark Prokic pushed back on Vance's remarks, accusing the boy's father of being in the U.S. illegally. These are not illegal aliens. They came properly, they came legally and are pursuing a legal pathway. So that's just not accurate. The child and his father are being held together in a processing center near San Antonio. Luigi Mangione accused of gunning down the UnitedHealthcare CEO in New York is due in federal court today. At issue is where the Mangione's backpack was searched in an unlawful manner when he was arrested. global news 24 hours a day and whenever you want it with bloomberg news now i'm michael bar and this is bloomberg karen thanks michael time now for our bloomberg sports update and for that we bring in john stash hour thanks karen new coach of the baltimore ravens replacing john harbaugh 42 year old jesse minter a former ravens assistant and then he worked for jim harbaugh first at michigan the last two years with the la chargers finalist name for the nfl mvp christian mccaffrey Matthew Stafford, Josh Allen, Drake May, and Trevor Lawrence.

12:57Stafford is the favorite. Washington Nationals traded all-star pitcher Mackenzie Gore to the Texas Rangers for five minor leaguers. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. I'm Barry Ritholtz, inviting you to join me for the Masters in Business podcast. Every week, we bring you fascinating conversations with the people who shape markets, investing, and business. CEOs, fund managers, billionaires, Nobel laureates, traders, analysts, economists, everybody that affects what's going on in the market. Whether you own stocks, bonds, real estate, commodities, crypto, you really need to hear these conversations.

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14:16coast to coast on Bloomberg radio nationwide on Sirius XM and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Roughly half the country is getting ready for the kind of winter storm many of us haven't seen in years. Bitter cold and ice to the south. Heavy snow for much of the eastern seaboard on into the weekend. Bloomberg meteorologist Rob Carolyn is tracking the storm and joins us now. So give us the update, Rob, are we starting to see impacts from this storm already? Not yet, Nathan. The storm is just now starting to put itself together out over the Four Corners region in Arizona and New Mexico.

14:52We're seeing some rain this morning. It's breaking out in West Texas. It'll blossom as the day goes on over Texas and Oklahoma, and that's where we'll start to see problems later today. Dallas up into Oklahoma City with some snow, sleet, and freezing rain. And then it spreads quickly off towards the east. We're going to see it moving into the mid-Atlantic states by late in the day tomorrow. It's into the New York City area by early Sunday morning and then into Boston Sunday afternoon. The storm system itself is actually going to move off the North Carolina coast after moving through the south-central part of the nation.

15:22It'll then pass south of New England during the day on Monday. As you mentioned, north of the track, we're going to be looking at primarily snow and very cold weather. Along the track, a mixture of snow, sleet, and freezing rain. South of the track, it's rain. Those folks not seeing the snow over the upper Midwest, Great Lakes, and northern New England will get very cold weather through the weekend. it's going to be a sizable snowfall. Right now, it looks like the District of Baltimore pick up 8 to 12 inches of snow. There will be some sleet and freezing rain that mixes in a Sunday afternoon, Sunday evening.

15:50That may hold the accumulations down there. Also, as we look on up to the New York City area, there may be some mixing, especially south of New York City, but it still looks like an 8 to 14-inch snowfall for the New York area. Southern New England, they could be the jackpot area. Right now, it looks like Boston's looking at 10 to 16 inches, And there could be some places outside of Boston that pick up a foot and a half of snow by the time it's winding down Monday evening. Yeah, it sounds like there's something for just about everybody from this storm. With the kind of accumulations we're looking at and the sort of freeze that we're expecting into the rest of the week, when can we start to dig out of this thing, Rob?

16:23Well, most areas will be able to dig out during Monday, Nathan. It'll be a different story in New England. They'll be digging out Monday night and Tuesday. There is not going to be a lot of melting that takes place next week. The air mass that's moving in behind the storm is frigid. Daytime highs today in the Dakotas and across northern Minnesota are going to be in the teens below zero. And they're going to drop to 25 and 35 below tonight. And that air just settles in over the eastern United States. All next week looks cold. And it looks like it stays cold into the beginning of February as well.

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