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

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 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 Secretary General Mark Ruta. It's the ultimate long-term deal.

1:40And I think it puts everybody in a really good position, especially as it pertains to security and minerals and everything else. President Trump is not giving details of the deal. He's not saying whether it grants the U.S. 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. We know that the Danes are completely open to having more American presence in Greenland and Greenland is open to that. And I think it is good that these discussions take place with the three of them because at the end I cannot negotiate on behalf of anyone.

2:14In an interview with Bloomberg News Editor-in-Chief John Micklethwaite, NATO Secretary General Mark Rotez 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 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 Davos.

2:50We know that the tariffs will not go in effect on February the 1st. And we know that this is apparently down to Secretary General Mark Rutte's efforts to basically talk Trump down and as ever to create an off ramp 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.

3:20We understand that it will apparently not impinge upon Danish sovereignty. And Bloomberg's Oliver Crook reports Denmark has said repeatedly that Greenland's sovereignty is not up for negotiations. Secretary General Rutte says Denmark is completely open to an increased U.S. presence on the island. Well, Karen, President Trump's Greenland pivot has helped fuel 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 Trump always chickens out. The major stock averages in the U.S. ended yesterday's session up over 1%.

3:55A UBS basket of stocks exposed to tariffs. That closed 2.7 % higher. Then you have shares of car makers, which are some of the more vulnerable to tariffs. They're helping lead gains in Europe this morning. With geopolitics on the back burner for now, Allison McCartney at UBS sees the bull rally continuing. This bull market that began in late 2022, the things that are motivating it and sustaining it have not changed in the last 48 hours. Still, technical signals are flashing. Some caution analysts warn the S &P 500 is approaching a setup that can amplify market swings. Matt Maley, 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.

4:43In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Greenland's pension fund is mulling whether it should continue investing in U.S. stocks. CISA pension, which manages around$1.1 billion, currently has around a 50 % exposure to the U.S. Its chief executive has said it's contemplating the move and what would be a symbolic stand against President Trump's push to seize control of the Arctic island. Well, Davos today, Karen, President Trump's Board of Peace initiative is taking center stage with a 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.

5:27He 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, U.S. Special Envoy Steve Whitcoff gave an update on plans for the Peace Board, which is still in its early stages. We've got 20 or maybe 25 leaders who have already said yes. This is not such an easy place to get to. We have many people who we weren't sure if they were going to even want to get an invitation. Now they're calling up for an 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 game-changing for the world.

6:05By now, Special Envoy Steve Witkoff 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 Zelensky is meeting with President Trump this morning at Davos. Now, Nathan, to a major story we're following here in the U.S., a huge, powerful winter storm sweeping across most of the country. And we get the very latest with Bloomberg meteorologist Craig Allen. Two high-impact weather events will be occurring starting tomorrow and simultaneously affecting over 200 million Americans through the weekend.

6:38The first is a direct pipeline from the Arctic down into the eastern half of the United States and alerts for extreme cold cover 12 states already in the center of the U.S. from the Canadian border down to the Gulf Coast and will expand east. Concurrently, a storm is developing in the west and will make the 2 ,000-mile trek all across the country to the east coast by Monday, bringing dangerous snow and ice all along its path. Some cities may get their heaviest snow in over four or five years. Craig, thanks. We'll be checking back with Bloomberg meteorologist Craig Allen throughout the morning.

7:11This storm is already affecting markets. U.S. natural gas futures have risen to their highest level since 2022. In fact, we've seen 70 percent gains over three days as frigid weather threatens to boost demand and crimp supplies. In 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. And Bloomberg's Amy Morris reports from Washington. Solicitor General John Sauer 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 in obtaining favorable interest rates for herself.

7:51But those allegations are unproven, and the justices seem to acknowledge that firing Cook could upend 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 Reserve. 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, Amy Morris, 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.

8:29Let's get the latest on that from Bloomberg's Lisa Mateo. Good morning, Lisa. Yeah, good morning, Nathan. So this move, it's not likely to sit well with the Trump administration and its plans to let NVIDIA sell its H200 processors to China. So here's what happened. A 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 that sending those highly advanced American chips to the Asian country, it could strengthen its military and economy, threatening U.S.

9:03national security. The Trump administration officials, well, 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 Mateo, Bloomberg Radio. All right, Lisa, thank you. And 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 U.S. government took a 10 percent stake in Intel last year, the chipmaker'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.

9:46Bloomberg consensus calls for revenue of$13.42 billion on adjusted earnings per share of nine cents. Tom Busby, Bloomberg Radio.

9:58Time 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. A former Uvalde Schools police officer who was among the first to respond to the mass shooting at a Texas elementary school has been acquitted of criminal charges that he failed his duty to confront the gunman. Adrian Gonzalez faced 29 charges of child abandonment and endangerment, one count for each of the 19 elementary students who died in the shooting and 10 students who survived. Two teachers also died at Robb Elementary School in May of 2022.

10:34Gonzalez spoke outside the court. Thank you for the jury for considering all the evidence and making that verdict. Gonzalez's lawyer, Jason Goss. The prosecutor's charge 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. Gonzalez 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 jury may have found him as innocent, but in the court of public opinion, he is a coward and an absolute 100 percent failure on that day.

11:12Maine has become the latest target in the Trump administration's immigration enforcement wave. Portland City Consular Wesley Pelletier 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 tear gas or pepper spray against peaceful protesters in Minnesota. The U.S. is set to leave the World Health Organization today. President Trump removed the U.S. from the Global Health Group in 2020, but the U.S. rejoined under President Biden.

11:49Global News 24 hours a day and whenever you want it. With 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. The Knicks have been slumping. They've lost nine of their last 11, booed loudly by their fans at their last home game. This time at Madison Square Garden, they beat the Nets. 120-66. They won by 54. It's the most lopsided win in Knicks history. College basketball, top-ranked Arizona with an easy win. Seventh-ranked Nebraska also won both teams are 18-0. The Yankees re-signed outfielder Cody Bellinger.

12:27The Mets acquired pitcher Freddy Peralta from Milwaukee. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Hello, I'm Michelle Hussain, and for more than 20 years, I was at the BBC. Military withdrawal from Afghanistan. But all the time I was delivering the headlines, I wanted to go further than the news of the day. To spend more time with the people shaping our world. And that's what I'm doing here on this podcast. Speaking to people from Nigel Farage. Russia needs to be taught a lesson. To tech journalist Kara Swisher. The tech industry is running wild.

13:08You know, they've gotten what they wanted and they've seen a huge run-up in their stock prices. This will be a place where every weekend you can count on one essential conversation to help make sense of the world. So please join me, listen and subscribe to The Michelle Hussain Show from Bloomberg Weekend, wherever you get your podcasts. You certainly ask interesting questions.

13:37Coast 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. 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. It gets everything we wanted, including especially real national security. That was President Trump after meeting on this with NATO Secretary General Mark Rutte on the sidelines of the World Economic Forum in Davos, where we are joined once again by Bloomberg surveillance anchor Lisa Abramowitz.

14:17Lisa, good morning. The president says this deal gets the U.S. 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 Mark Rutte, speaking to our executive, our editor-in-chief, John McElfay, 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 U.S. 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 rare earth minerals.

14:55None of this 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 180, 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 that will be discussing exactly what the path forward is going to be.

15:37And 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 on the ground, 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 betrayal 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 there aren't tariffs and feel like this too shall pass.

16:19So unclear exactly which way it will go. But the mood is very different among European leaders about the path 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$1 billion fee per year to sit on the board.

16:59Also, 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.

17:32Yeah, more questions than answers on multiple fronts to your point. Thank you for this, Lisa. Once again, great having you with us from Davos. That is Bloomberg surveillance anchor Lisa Abramowitz 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 with Bloomberg meteorologist Rob Carolyn. Rob, good morning. Please tell us where we stand right now. Well, Karen, the storm system is just off the coast of California and it's going to be working its way inland.

18:04It'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, early Sunday morning, through the mid-Atlantic states on Sunday, and then off the coast of either the DeMarva or southern New Jersey by Sunday night and early Monday, and then south of New England Monday. There are over 30 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.

18:39Tell 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 are going to be around the Washington, D.C. area. They could see up to a foot of snow. We may also see a foot of snow around the Baltimore area, Trenton, 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.

19:08We'll also have heavy snow across areas of around Kansas City, St. Louis. It also looks like southern Indiana and even into parts of Kentucky could see six to 12 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.

19:46For the eastern seaboard, it's a different story. We'll be looking for the precipitation to more or less wind down Saturday night, 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 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m.

20:19Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston and nationwide on Sirius XM Channel 121. 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 on 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.

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