Record Blizzard Cleanup; Trump’s 10% Levy Takes Effect

0:00Donald Trump is rewriting the Washington rulebook and reshaping the global economy. If you're trying to connect the dots behind the headlines, Bloomberg's Trumponomics podcast is here to help. I'm Stephanie Flanders, head of government and economics at Bloomberg. Every week, I'll bring you a smart, focused conversation with reporters and experts from Washington, Wall Street and beyond. Listen to new episodes every Wednesday and follow Trumponomics wherever you listen. Today's show is brought to you by Vanguard. To all the financial advisors listening, let's talk bonds for a minute. Capturing value and fixed income is not easy.

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1:14All investing is subject to risk, Vanguard Marketing Corporation Distributor. 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, let's begin with details on the historic blizzard that pounded the East Coast. Bloomberg meteorologist Craig Allen has been following the storm every step of the way and is here with us now. So, Craig, what kind of accumulation totals are we looking at here? Indeed, historic, because there are some history-making numbers here. Not so much D.C. Let's start around D.C.

1:53and work our way on up. There was about two to four inches of a slushy snow around D.C., but there were some areas that were closer to the five to ten inch mark if you were near the coast or in some of the suburbs. On up to Philadelphia, 14 inches. New York City, 19.7 inches. That puts it in the top ten snowiest storms for the New York City area. 18 to 24, though, in some of the suburbs and even as much as 32 inches for parts of Long Island and on up into coastal Connecticut. And then up to Boston, 31.8. But before we get to Boston, it was a record-breaking snow in the history of record-keeping for Providence.

2:3538 inches of snow from this particular storm. Highest snow totals ever. Highest wind totals were 80 to 85 miles per hour out across Nantucket and Montauk. Temperatures this morning are in the 20s, and obviously that means that we have some refreezing going on out there as well. Well, are we expecting that we're going to get any break in the temperature so we can start to dig out of this thing? We will. It will get milder for a while this weekend, but it doesn't come cheaply. It comes at a cost of more snow. There is a chance of snow, but light snow. These are not major systems, but there could be some snow, especially for New York City and Boston tonight into tomorrow.

3:16Maybe about a one to three inch type system. Same thing again Wednesday night into Thursday, and believe it or not, early next week. So it's going to be a parade of systems, but I don't think there's going to be anything as epic as what we just had moving off the coast yesterday. All right, Bloomberg meteorologist Craig Allen, and of course, we'll be checking in with you all morning. Craig, thank you. Well, as the digout continues in the Northeast, things are not back to normal just yet. And Bloomberg's John Tucker joins us with the very latest. John, good morning. Good morning, Karen. It's going to be days before we dig out from the blizzard of 26.

3:50After three canceled flights, this man spoke for many. How is my winter going in general? It's a little bit too long if you ask me. I'm wondering if they'll let me become the new groundhog and I can decide if winter stays a little bit longer because this has been a bit much. More than 11 ,000 flights have been grounded through today. More than 500 ,000 homes and businesses without power as of late yesterday. NJ Transit says North Jersey Coastline and Raritan Valley Line service. That remains suspended. Northeast Corridor trains operating on a President's Day schedule with some adjustments. On the streets of Manhattan, sidewalks are treacherous in spots where snow has turned to sheets of ice.

4:29New York City schools will be open for in-person instruction this morning. And don't relax just yet. Winter isn't over in New York. I'm John Tucker, Bloomberg Radio. All right, John. Thank you. We turn to politics now. Well, major story on that front's coming up tonight as President Trump delivers his State of the Union address to a joint session of Congress. Affordability and tariffs are expected to be two key themes. We get a preview from Bloomberg's Amy Morris in Washington. President Trump's second year in office is struggling with erratic messaging, policy reversals and sinking poll numbers.

5:02Former Republican Congressman Patrick McHenry of North Carolina, now a Bloomberg News contributor, tells Bloomberg Daybreak there's plenty for the president to talk about. So the question of tariffs and how the president's going to respond to speak to this massive buildup of troops and air power in the Middle East and doing so in the midst of, you know, nearly 50 million people socked in in a blizzard. And while the president's economic agenda was thrown into chaos after the Supreme Court struck down his preferred method of imposing global tariffs, he's expected to continue to promote levies in the state of the union.

5:38In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. President Trump has invited both the men's and women's gold medal hockey teams to attend the State of the Union address. The women's squad has declined the invite, while many of the men's teams said they plan to attend. And you can catch extended coverage of the State of the Union tonight with a special edition of Balance of Power. Coverage begins at 8 p.m. Wall Street time with Joe Matthew and Kaylee Lines on Bloomberg Radio and Television. And Karen, President Trump's primetime speech comes as he begins to rebuild his trade agenda.

6:10the president's new 10 % global tariffs are now in effect, but he doesn't plan to stop there, as we hear from Bloomberg's Rosalind Matheson. We do know from an administration official telling Bloomberg that they're looking to see how they can raise that quickly to 15%, the level that Donald Trump threatened. And of course, that's potentially bad news for some key U.S. allies like Australia and the U.K., which stand to be worse off than the parameters of the trade deals that they've been agreeing with the U.S. In response to the 10 percent levy, Bloomberg's Ross Matheson says the European Union has halted ratification of its trade deal with the U.S.

6:45And the White House is also launching investigations into imported batteries, cast iron, electrical and telecom equipment, plastics and industrial chemicals. Those probes could lead to even more tariffs under Section 232 of the Trade Act. Meantime, Nathan, the respite from President Trump's larger tariffs could drive up cargo volumes at large ports. And that's what we're hearing from Port of Los Angeles Executive Director Eugene Sirocco. Realistically speaking, it appears that the effective tariff rate will be lower for many who buy, especially from Asia countries, that are shipping here to the United States.

7:22But all of this remains under one complication, and that's that announcements keep coming out so fast and furious that it's tough even for the most seasoned professional to keep up with all of this. Importative L.A. Director Eugene Sirocco says import patterns have fluctuated based on trade policy announcements. At the same time, exports have consistently suffered with shipments to China dramatically reduced. Now we want to turn to the latest, Karen, on a dangerous situation in Mexico. Turmoil continues south of the border after the Mexican army killed the country's most powerful drug lord. More than 70 people died in the attempt to capture the cartel chief known as El Mencho.

8:04The cartel responded with widespread violence, including roadblocks and setting fire to vehicles. Tourists in the area have been left stranded, unable to make a dangerous trip to the airport. Juan Carlos Guerrero is sheltering in place in Puerto Vallarta. We have not been able to find the flight back. Even if we hear that the airport is secure and there's military people around the airport keeping it safe, getting there and the hour drive to the airport is the concerning part. We don't know what we may find along the way. The violence has prompted several Mexican states to cancel school and warn residents to stay inside.

8:40Now, Nathan, to the latest on tensions in the Middle East. President Trump is pushing back against concerns about the risks of an extended military campaign against Iran. In a social media post, the president said a conflict against Iran would be, quote, easily won. But he says he'd rather have a deal with Tehran. Bloomberg's Stuart Livingstone Wallace says the president is likely considering four options. Option number one is the diplomatic track, the one they've been going down so far, and we have that meeting coming up on Thursday. Option two is cyber warfare and propaganda. It feels maybe a little bit late for that, given the amount of hardware that's now in the region.

9:17And then option three, limited strikes to try and push the deal forward or try and get some more concessions out of Iran. And then option four, which is basically regime change, and that is effectively a multi-week campaign. there are some doubts about whether you can achieve that purely with airstrikes. And Bloomberg's Stuart Lemmingston-Wallace says the State Department ordered non-emergency personnel to leave the U.S. Embassy in Beirut yesterday. The U.S. has amassed the largest force in the region since the Iraq invasion in 2003. Well, there is a lot going on in the world, Karen. Let's take a moment to look at the markets now.

9:50Stock futures are higher after yesterday's AI-fueled sell-off. The Dow Jones Industrial year, the industrial average fell more than 800 points, or 1.7 percent. IBM had its worst day in a quarter century, plunging 13 percent. That's after Anthropic said its clawed code tool could help modernize a dated programming language from IBM. American Express, MasterCard, and Capital One were among the top financial decliners. Citrini Research mentioned them in a report describing the potential risk AI could pose to the global economy. Nathan, we have new developments this This morning in the takeover battle for Warner Brothers Discovery, Bloomberg News has learned that Paramount Skydance is raising its offer.

10:30Sources say the new unspecified bid improves on Paramount's$30 a share all-cash proposal. Warner Brothers will consider the new offer, and if deemed superior, Netflix will have four days to respond. Karen, Jamie Dimon is sounding a warning this morning. The JPMorgan Chase CEO is telling investors he's starting to see parallels to the era before the 2008 financial crisis when a rush to make loans ended very badly. Unfortunately, we did see this in 05 and 06 and 07, almost the same thing. The rising tide was lifting all boats. Everyone was making a lot of money. I don't know how long it's going to be great for everybody.

11:08I see a couple of people doing some dumb things. You know, they're just doing dumb things to create NAI or say they're winning in the markets business or something like that. Jamie Dimon says he expects the credit cycle will eventually sour again, though he says he's not sure exactly when. 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. New details on the disappearance of Nancy Guthrie. The investigation reportedly saw the masked man suspected of abducting the 84-year-old scared off by a camera and fled from her front door sometime before apparently returning the night she was taken.

11:51Former FBI agent Jason Pack. If it is the same person, it could indicate that the person was there surveilling the place before the abduction happened. The fact that there was preparation and planning, which makes it more of a sophisticated type of criminal activity than someone just showing up. Meanwhile, the disappearance of today's show host Savannah Guthrie's mother three weeks ago has inspired volunteers to launch their own searches in the dense desert near her home just outside Tucson. However, authorities are urging volunteers to stop and give investigators space to do jobs that are best left to the professionals.

12:30Director and actor Rob Reiner's son, Nick Reiner, pleaded not guilty in court in the stabbing deaths of his parents. Reiner has a history of mental health and substance abuse problems. Los Angeles District Attorney Nathan Hockman says Reiner could face the death penalty. The case is on track. We have provided the bulk of discovery to defense counsel and we are now waiting for the coroner's report. When that is provided to the district attorney's office, it will in turn be provided to defense counsel. Reiner could change his plea to not guilty by reason of insanity at any point down the road leading up to his trial.

13:09Police in Britain say Peter Mandelson, the former UK ambassador to the United States, has been released on bail after he was arrested in the Jeffrey Epstein Files misconduct probe. Authorities are investigating Mandelson over documents suggesting he passed sensitive government information to Epstein a decade and a half ago. Mandelson reportedly denies any wrongdoing. Global News 24 hours a day and whenever you want it with the Bloomberg News Now. I'm 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, Karen.

13:46The big NBA game was in Detroit. San Antonio beat the Pistons 114-103. The Spurs have won nine in a row. College hoops in the ACC. North Carolina held off Louisville 77-74. Seth Trimble scored 30. In the Big 12, Kansas beat Houston 69-56. Third straight loss for the Cougars, who were ranked number two in the country. Duke, after the big win over Michigan, is now ranked number one. Detroit Tigers ace Tarek Skubel says he will pitch for the USA in the World Baseball Classic, but only one game. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Today's show is brought to you by Vanguard.

14:25To all the financial advisors listening, let's talk bonds for a minute. Capturing value and fixed income is not easy. Bond markets are massive, murky, and let's be real, lots of firms throw a couple flashy funds your way and call it a day. But not Vanguard. At Vanguard, institutional quality isn't a tagline. It's a commitment to your clients. We're talking top-grade products across the board of over 80 bond funds, actively managed by a 200-person global squad of sector specialists, analysts, and traders. These folks live and breathe fixed income. So if you're looking to give your clients consistent results year in and year out, Go see the record for yourself at Vanguard.com slash audio.

15:04That's Vanguard.com slash audio. All investing is subject to risk, Vanguard Marketing Corporation Distributor. The news doesn't stop on the weekends. Context changes constantly. And now Bloomberg is the place to stay on top of it all. Hi, I'm David Gurra. Join us every Saturday and Sunday for the new Bloomberg This Weekend. I'm Christina Ruffini. We'll bring you the latest headlines, in-depth analysis, and big interviews. All the stories that hit home on your days off. And I'm Lisa Mateo. Watch and listen to Bloomberg this weekend for thoughtful, enlightening conversations about business, lifestyle, people, and culture.

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16:21Coast 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. We are hours away from President Donald Trump's first State of the Union address of his second term. Could be a chance to reset with more Americans concerned about the economy, immigration enforcement, foreign policy, and more. Here's White House Press Secretary Caroline Levitt. It is going to be a very good and powerful speech, so everyone should tune in. That was White House spokeswoman Caroline Levitt previewing the speech last week.

16:54This morning, we're joined by Bloomberg News Deputy Washington Bureau Chief Laura Davison. So, Laura, what can we expect from the president tonight? Well, we can expect in the president's own words, he said this is going to be a long speech. There's a lot to cover. Two things that are really of key interest for folks, the two issues dominating the headlines right now are, one, tariffs. How does he address that? Does he lay out any more detailed plans for how he's going to proceed after the Supreme Court struck down his tariff plan last week? One of the key things to note that's really will introduce an interesting dynamic here is that the Supreme Court justices typically attend and they sit in the front row just feet away from where Trump will be speaking.

17:31He has been very critical of the Supreme Court decision, you know, personally attacking some of the justices who ruled against his tariff. So that is a very delicate dynamic going into tonight's speech. The second is Iran. You know, Trump has teased he might be interested in some sort of targeted strike. The U.S. military is building up assets in the region. but it's not clear exactly where things proceed. That is the key foreign policy issue that people are watching for. And those are two key issues that are raising concerns for Americans. How does the president potentially reset that narrative to try to assuage some of those concerns?

18:05Yeah, Trump is going into this speech with his approval sagging, especially on the economy. He's facing a rebuke from members of his own party, both on immigration and on tariff policy. This speech is intended to set the stage going into the midterms later this year. White House aides really want Trump to focus on the economy, focus on his tax cuts from last year, new proposals that they put out regarding housing affordability. But it's not clear if there's enough meat on the bones there for Trump really to turn around how voters are feeling about the economy, you know, going in with just, you know, eight or nine months until the elections.

18:38How much of a bounce do we typically see for the president's party from a State of the Union address ahead of the midterms? Does it have a wave all the way into November? It is highly unlikely, particularly with the news cycles that we experience now, that this is not going to be something that we're all talking about as we head into the fall or even next week or two weeks from now. But this does at least give members of Congress, particularly Republicans who are facing an uphill battle as they go into this midterm election, some key talking points that they can at least point to and say, hey, look, this is what the president, this is what the Republican Party is going to do for you.

19:13One of the fears that Republicans have is that Trump is not going to stick to the script, not focus on those domestic pocketbook issues and instead either go off script and create a new controversy or focus on things that aren't of top concern to voters. In our last minute, Laura, has the White House tipped its hand on any specific policy proposals that the president could roll out here? I mean, we've been waiting for the meat on the bones of a housing policy, for example. They have not. That is one of the key areas that keeps being brought up, being teased that a housing policy plan is coming.

19:45We've seen very few details there. Another thing is AI. The White House is looking at getting technology companies to pledge to cover the cost of data center energy to reduce some of the pressure that households have been feeling about increasing energy cost. That's another area that is happening here. But all of these so far have really been unbinding, not something super actionable and lacking a lot of specifics that people are looking for to actually see that real dollars and cents boost in their paychecks. Bloomberg Deputy Washington Bureau Chief Laura Davis and Laura, thank you ahead of the State of the Union address at 9 p.m.

20:18Wall Street time. Our coverage begins at 8 on a special edition of Balance of Power with Joe Matthew and Kaylee Lines. You can catch it on Bloomberg Radio and television this evening. Karen. Nathan, another major story. We're following the blizzard of 2026 and much of the still digging out. For more, we're joined by Bloomberg meteorologist Craig Allen. And Craig, let's start with the snow totals. Was it Rhode Island that was hardest hit? Yes, it was. Providence setting an all-time record of 38 inches, 37.9 to be exact. And so that set many records for Providence itself. Boston wasn't far behind with 31.5 inches of snow, And neither actually were parts of the New York City area.

21:03Long Island had 25 to 32 inches of snow. New York City itself put itself into the top 10 with a 19 and a half inch snowstorm. And well, fortunately, it wasn't all that bad. The farther south you went, Philadelphia did pick up between 10 and 15. But down towards Washington, it was only a two to four inch slushy accumulation with the highest amounts over towards the coastline around the D.C. Well, let's say Maryland's eastern shore and then on up through Delaware. So that's where it actually began. And the worst of it just kept pounding the northeast coast. You know, growing up in New England, Craig, the blizzard of 78 was always the benchmark.

21:44Does this give us a new benchmark? Yes, I remember it well. How does this compare? Well, you know, in terms of the way the storm was set up, the intensity of the storm, the storm structure, it definitely compares. Now, there was more to the snowstorm in 78 from D.C. on up all the way to Boston. Some places picking up anywhere from 15 to 30 inches of snowfall with about 30, 35, 40 inches of snow in some of the suburbs. And the winds were similar. So there were some reports, as you know from this one, I was mentioning before, about 80 to 85 mile per hour gusts out towards Montauk and Nantucket, Cape Cod, the islands out there, 75 to 85.

22:31That's hurricane force. And so this, too, had similarities in the way it looked on the weather maps and the satellite photographs to be very similar to 78. Every once in a while, the atmosphere just really has to release. And that's basically what this was, a release of energy throughout the northeast coast this time around. So they'll be talking about this one for years to come as well, it seems. So you're also talking about more snow ahead. Say it isn't so, but what are we in for? Yes, I am. And you should see the looks on some faces that I get after I say that. The first two possibilities are coming up.

23:12One for tonight, late tonight and into the early part of Wednesday. Looks minor and looks very wet. There could actually be some rain mixing in. And if there is some snow accumulation, especially on colder surfaces, it would be about an inch or two from New York City on up to Boston. Not much down towards D.C. Another chance during Thursday into Thursday evening. Same thing, minor. but talk is already starting about next Monday night into Tuesday, not being as intense as what we just went through, but that would be the more important storm, a bigger storm, again, early part of next week. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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24:37I'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.