Trump Defends DOJ's Powell Probe; Iran Death Toll Jumps

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 this morning with President Trump's attacks on Federal Reserve Chairman Jerome Powell. The president is not letting up despite pushback from Republicans, Democrats, business leaders and central bankers around the world. Let's get the update this morning from Bloomberg's John Tucker. John, good morning. Good morning, Nathan. President Trump had this to say about Powell as he left the White House yesterday. He's billions of dollars over budget, so he either is incompetent or he's crooked.

1:42I don't know what he is, but he certainly doesn't do a very good job. And Trump doesn't seem too concerned with pushback from lawmakers like Republican Tom Tillis, who vowed to oppose any Trump nominees to the Fed after the central bank was subpoenaed. Well, that's why Tom's not going to be a senator any longer, I guess, right? But I like Tom Tillis. He's a nice guy. But look, he's not going to be a senator any longer because of views like that. Trump said he would announce his nomination to replace Powell within the next few weeks, despite the backlash. The president also dismissed Jamie Dimon's criticism over the Justice Department probe into the Fed.

2:19He says the CEO of JPMorgan Chase is wrong to suggest he's attacking Fed independents. This all comes as the blowback gets more intense. Three former heads of the Federal Reserve and four former Treasury secretaries in both Republican and Democratic administrations issued a statement saying this type of investigation has, quote, no place in the United States and is more characteristic of emerging markets with weak institutions. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, President Trump also has Iran on his mind. In a speech in Detroit heard live on Bloomberg Radio, the president urged Iranians to continue protesting against Supreme Leader Ayatollah Ali Khamenei's regime.

3:02I've canceled all meetings with the Iranian officials until the senseless killing of protesters stops. And all I say to them is help is on its way. You saw that I put tariffs on anybody doing business with Iran. The president says he'll act accordingly once he gets a sense of how many demonstrators have been killed. Reuters is reporting some personnel at a U.S. Air Base in Qatar have been told to leave by tonight. The U.S.-based human rights activist news agency reports more than 2 ,500 people have died, making it the deadliest protest wave in Iran in decades. And staying with U.S. foreign policy, Karen, top diplomats from Greenland and Denmark are in Washington today.

3:41They'll meet with Secretary of State Marco Rubio and Vice President J.D. Vance, hoping to convince them to back off on demands for the Arctic territory. The meeting comes a day after Greenland's Prime Minister ruled out the possibility of becoming part of the US. One thing that everyone must understand, Greenland will not be owned by the United States. Greenland will not be governed by the United States. Greenland will not be part of the United States. We choose the Greenland we know today and which is part of the Kingdom of Denmark. Greenland's Prime Minister Jens Frederick Nielsen spoke there through an interpreter.

4:20President Trump has declined to rule out the use of military force to get Greenland. He says the U.S. needs the island for national defense. Well, Nathan, turning back here to home, President Trump says he'll cut off federal funding for so-called sanctuary cities at the end of the month. It's the latest move to crack down on immigration as an enforcement search continues in Minneapolis, a week after a federal officer shot and killed a woman there. President Trump addressed Renee Good's death in an interview with CBS Evening News. You know, when you look at that tape, it could be viewed two ways, I guess.

4:53But when you look at the way that car was pulled away, there are a couple of versions of that tape that are very, very bad. President Trump spoke with CBS News in Detroit. Meantime, a group of anti-ice protesters in Minneapolis urged a federal judge to restrict officers' use of force at a hearing yesterday. The demonstrators filed their lawsuit last month before Renee Good's death. The judge said she'll issue a ruling by Friday. Back in Washington, Karen, the Republican-led House Oversight Committee is threatening to hold former President Bill Clinton in contempt of Congress. That's after he failed to appear for a deposition as part of the panel's probe into late convicted sex offender Jeffrey Epstein.

5:32Here's House Oversight Chair James Comer. No one's accusing Bill Clinton of any wrongdoing. We just have questions, and that's why the Democrats voted along with Republicans to subpoena Bill Clinton. House Oversight Chair James Comber says the committee will not attempt to compel testimony from President Trump, saying it can't force a sitting president to testify. Bill and Hillary Clinton are accusing the committee of mounting a bipartisan campaign to hide the truth about Jeffrey Epstein and his powerful connections. Let's stay in Washington, Nathan. and about 1.4 million fewer people have signed up for Obamacare plans so far compared to last year as the federal tax credit expires.

6:11Through early January, 22.8 million people had signed up for Obamacare plans. That's down about 6 percent from last year's total enrollment. Experts warn more attrition is likely in the coming months as consumers face premiums that are on average more than doubling. Consumers have until tomorrow to elect new Obamacare plans for the year. Let's turn to the markets now, Karen. Metals are extending their dramatic start to the year. Gold, silver, copper and tin are all trading at record highs this morning. Geopolitical tensions, hopes for more Fed rate cuts and a revival in sentiment across Chinese markets are all being credited for the commodity surge.

6:49Looking at some company news outside the financials, Bloomberg News has learned Netflix is working on revised terms for its Warner Brothers Discovery acquisition. Bloomberg's Chris Palmieri says the streamer is discussing an all-cash offer for Warner's studios and streaming businesses. There was a component about$4 out of the$27.75 that was going to be in Netflix stock. Netflix stock has taken a beating since this whole takeover war began, lost about a quarter of its value. And Netflix sees this as an opportunity to really just sort of strengthen the terms because they're competing against an all-cash offer from Paramount.

7:25And Bloomberg's Chris Palmieri says Netflix's offer has also faced opposition from politicians along with Paramount Skydance. Well, overnight, Nathan, Saks Global Holdings filed for bankruptcy. The bankruptcy filing from Saks, which traces its roots back more than 150 years, marks a dramatic fall for the luxury retailer that just a year ago embarked on a major turnaround plan involving acquiring Neiman Marcus. And reiterating the breaking news this morning, Karen, Japanese Prime Minister Sanae Takeuchi has told her ruling party she will dissolve parliament for an election soon. The co-leader of the Japan Innovation Party says Takeichi says she'll give more details on Monday.

8:06Time 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. It's day three of a nurses strike in New York City. They're striking to seek higher pay. New York State Nurses Association President Nancy Hagans with a message. Invest a million into a medical benefit. Invest a million into workplace violence protection. The union says that none of the hospitals have agreed to additional bargaining sessions. President Trump went to the Detroit area to tell everyone the economy is booming under his administration, but not everyone gave him a warm welcome at the Ford F-150 plant Tuesday.

8:48As he toured the factory, President Trump was heckled by a man who shouted, pedophile protector. The president responding with what seemed to be an expletive and then appearing to give the man the finger. New York Governor Kathy Hochul unveiled proposals to tackle the state's affordability crisis. During her State of the State address yesterday, the governor also received a standing ovation when she criticized the recent ICE arrests in several cities. We will not allow mask ice agents to storm our schools, our daycare centers, our hospitals, our houses of worship for civil immigration raids unless they have a judicial warrant.

9:31And guess what that means? Signed by a judge. Governor Huckel's proposals also aim to address insurance and utility costs. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Back to Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. A crazy NFL offseason coaching carousel with now nine teams looking for a new coach after Mike Tomlin, just 15 hours after the Steelers season ended with that playoff loss to Houston, resigned. He was in Pittsburgh for 19 years. Nolan Arenado traded by St.

10:09Louis to Arizona, Spent five seasons with the Cardinals after nine with Colorado, an eight-time All-Star, a ten-time Gold Glove-winning third baseman. Good news from snowboarding. Chloe Klim, her shoulder injury will not prevent her from competing in the upcoming Olympics. She'll be going for a third straight gold medal. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots.

10:43Visit Bloomberg.com slash podcast offer to learn more. Coast 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. President Donald Trump says he is still on track to name a new Fed chair, even with the bipartisan and global pushback over the Justice Department's probe into current chair Jay Powell. The president says for him, it's very simple. I want somebody that when the market is doing great, interest rates can go down because our country becomes stronger. So you view it differently.

11:20Our country becomes stronger and therefore interest rates should go down, not up. And that was the president speaking at the Detroit Economic Club. This morning, we're joined once again by Bloomberg News senior editor Alistair Bull. But despite the president's comments, Alistair, it really does seem like there is pretty significant pressure against the Trump administration over this probe. What's the latest? Good morning. Good morning, Nathan. Thanks for having me back on. So, you know, the president is entitled to his opinion about interest rates, but Congress designed the Federal Reserve to insulate it from the pressure of presidents who always want lower interest rates.

11:57And the latest is really, you know, what the Congress does next. You've had significant pushback from Republican senators. They have agency here. They can block President Trump's nominations to the Fed board, effectively saying you can't have the Fed you want. You cannot have a Fed that will just give you the low interest rates you think the economy deserves. And when he does name his pick for the Fed chair, that's when that shoe drops. The second thing that's going to happen in the next few weeks is the Supreme Court's going to begin hearing arguments in the case of Fed Governor Lisa Cook, who the president has tried to fire for courts, and she's fighting that.

12:39So the Fed was designed to be independent. Those guardrails, those checks are now going to be tested. We should say that the Justice Department, D.C. Attorney, U.S. Attorney Janine Pirro, has said this is an investigation into Chairman Powell's comments about the Fed building renovations, denying this is an attack on Fed independents. But hearing some of the commentary surrounding this, it seems like a lot of people disagree with that, including JPMorgan Chase CEO Jamie Dimon in comments just yesterday. No, absolutely. I mean, they are siding with the Fed here. The Fed came out and Jay Powell came out and said this is an assault on the independence of a central bank.

13:24Make no mistake. You know, reporting suggests that the Justice Department sent them a couple of emails over the Christmas holidays, no suggestion of any urgencies, and then nine days later slapped them with a subpoena. There's no other way to view that other than an assault on the independence of a central bank. I don't blame the Justice Department wanting to pivot the narrative that we're just asking for information. But bringing these cases is pretty easy. Winning them and getting a conviction is extremely hard. What's really going on is just holding the thread of legal action, which ties up the target in costly, expensive lawsuits.

14:00And that's a significant peril for the institution and for U.S. monetary policy. It raises the question, doesn't it, of whether the Justice Department will continue with this investigation when we are seeing this kind of significant pushback. Is that the next step you're looking for here, Alistair, whether the Justice Department does continue to pursue this? Well, so yes, we're looking for a signs of an off ramp, but we've not seen it yet. The other factor here is the bond market. Now, if the bond market starts to really freak out, if you see yields rising, that's going to be an incredibly powerful test because that will go to the core of what the Trump administration is trying to achieve, which is lowering mortgage rates.

14:46But the mortgage market prices of the bond market, and so far the bond market's been a bit meh. I mean, the 10-year Treasury yield is a little bit higher, but maybe not much, and you had a soft CPI print yesterday. If investors start focusing on a genuine threat to the independence of the central bank and the integrity of U.S. monetary policy, that's going to change in a hurry. Those yields are going to rise, and that's going to undermine the Trump administration's goals of improving housing affordability in time for midterm elections. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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15:58I'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.