Winter Storm Pummels East Coast; Tariff Defeat Tests Trade Deals

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0:41That'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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1:58Bloomberg 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 want to bring you first the very latest on the powerful winter storm pounding the northeast. Let's check in with Bloomberg meteorologist Craig Allen. Craig, how bad is it? Nathan, it is so, so heavy right now. The snow is falling very heavily across New Jersey from Philadelphia on up towards Newark. New York City getting hit pretty hard right now. The last official reading out of New York City was about 10 and a half inches. It is snowing heavily right now in Boston, too.

2:41So it finally reached Boston later during the nighttime hours. So amounts in Massachusetts and Connecticut and so forth are generally in the 4 to 8 inch range and climbing rapidly. Long Island and coastal sections of New Jersey are the areas that are getting it the worst. Over a foot, foot and a half, another half foot or more is expected. And the winds are gusting over 50 miles per hour. In fact, I can say that I'm on generator right now talking to you at this moment as well. We lost power earlier this morning. Oh my goodness. So when are we expecting all this to end, Craig? Not till the end of the afternoon.

3:18You know, I don't think that we're going to see a complete ending here until somewhere between 3 and 6 for New York City as well as Boston. Let me mention that D.C. did not get hit nearly as hard. There's a slushy 1 to 3, locally 2 to 4 up towards Baltimore on the ground there. And the snow is basically over except for some snow showers. But from New York to Boston, it's going to continue much of the day. All right, Bloomberg meteorologist Craig Allen. Thank you, Craig. And, of course, we'll be checking in with you throughout the morning while the snow is piling up in New York City. And that has the mayor closing schools and enacting a travel ban.

3:55Bloomberg's John Tucker continues our team coverage from Manhattan. John, good morning. Yeah, good snowy morning to you, Karen. New York City hasn't faced a storm of this scale in the last decade. And he may be new to the job, but Mayor Momdani already a snow veteran. We are looking to utilize every tool that was successful last time around and then utilize new tools as well. Highways, bridges and streets into New York City were closed last night. Schools are shut this morning. The subway system is operating with local service while Metro North is running a weekend schedule. The service on the Long Island Railroad, that is suspended.

4:30New Jersey transit is shuttered. No service. And a state of emergency exists in New York and New Jersey. The message throughout the tri-state area is simple. Stay off the roads. Here's Connecticut Governor Ned Lamont. We have the best Olympic hockey team in the country, and they do pretty well on ice, but we don't. So advice number one is stay off the roads. That's a sentiment echoed by New Jersey's new governor, Mikey Sherrill. We need to be prepared. We need to be safe. Get water. Get all of your charging done with your devices. Stay off the roads. In Boston, Mayor Michelle Wood declared a snow emergency.

5:09The most snow New York got in a day. That was 27 inches in January of 2016. Now, keep in mind, everybody, what our meteorologist Rob Carolyn is saying. It could take until April for us to break out of this weather pattern. In New York, I'm John Tucker, Bloomberg Radio. Come on, John. All right, thank you. Well, this storm is wreaking havoc on air travel as well. Bloomberg's Alexis Christophorus joins us now at that part of the story. Good morning, Alexis. Good morning, Nathan. and the massive storm is already grounded. More than 5 ,500 flights this morning and delayed nearly 7 ,000. Those numbers are expected to climb as the blizzard set to dump up to 30 inches of snow in some areas.

5:49Airlines began offering travel waivers to help customers avoid flight disruptions. Impacts are especially severe at New York's LaGuardia Airport and JFK, where nearly all flights have been canceled today. Delta Airlines says it expects to halt operations at New York and Boston airports into tomorrow. And Delta is also warning of broader disruptions across its network due to a technical issue affecting its check-in and boarding systems. If you're scheduled to fly today, call your airline to check your flight status before heading to the airport. In New York, Alexis Christophoris, Bloomberg Radio.

6:24Yeah, good advice, Alexis. Thank you. While some may say you deserve a medal for braving these blizzard-like conditions, Millions are still buzzing about the U.S. performance in the Olympics. Yesterday, the U.S. team closed out the games with a gold medal in men's hockey. Bloomberg's John Stashauer joins us now with more on the historic win. John. All right, Karen. Yeah, overtime in men's hockey and a U.S. victory on a gold medal winning goal scored by the New Jersey Devils' Jack Hughes. It's a journey. It's the whole lifetime of work. And, you know, I'm just a part of that. So I think every single person in that game tonight can be proud.

7:01And obviously it was a great game, and we were the team with the better outcome. But just a great game between USA and Canada. It was that. It came three days after the U.S. women also beat Canada, also 2-1 in overtime for their gold medal. It came 46 years to the day after the miracle upset of the Soviet Union. The U.S. had not won the gold in men's hockey since then. More coming up on sports. John Stachauer, Bloomberg Radio. All right, John. Thanks. down to the big market news out of Washington, D.C., tariffs. The Trump administration is working to salvage its trade policy after the Supreme Court struck down the president's emergency duties.

7:34In response, he rolled out a 10 percent global tariff, then raised it to 15 percent. That move came under Section 122 of the 1974 Trade Act. Treasury Secretary Scott Besson says the policy will stay in place for 150 days until more permanent tariffs can be imposed. The president, the administration remains undeterred in reshoring American factories and getting rid of these massive trade imbalances. That's the big story here is that we are immediately going to go to Section 122 tariffs that the revenue for the U.S. Treasury for 2026, the projections are unchanged. Secretary Bessett appeared on CNN's State of the Union.

8:13Despite the high court's ruling, U.S. Trade Representative Jameson Greer says trade deals struck in recent months will stay in place. he was on CBS's Face the Nation, heard Sundays on Bloomberg Radio. I've been speaking to these folks as well, and I've been telling them for a year, whether this case, whether we won or lost, we were going to have tariffs. The president's policy was going to continue. That's why they signed these deals. U.S. Trade Rep. Jameson Greer in a Section 122 allows presidents to impose temporary tariffs in situations of fundamental international payments problems. Many economists say the U.S.

8:45is not facing that risk. Well, Nathan, as the tariff fallout continues, the European Union is holding an emergency meeting to reassess its U.S. trade deal. At the same time, India is holding off on talks to finalize its interim U.S. trade agreement. European Central Bank President Christine Lagarde says President Trump's latest global tariff could upset the relationship with the EU. It's critically important that all people in the trade, both outside of the United States, but also in the United States, have clarity about the future of the relationships. ECB President Christine Lagarde was also on face of the nation.

9:24As it stands now, the UK could be the biggest loser from President Trump's 15 percent tariff. It had negotiated a 10 percent rate. China, India and Brazil stand to benefit the most. And for the first time, Karen, we're starting to see global markets react to the Supreme Court's ruling. Stocks in Hong Kong rose 2.5%. The sensex in India is up about 0.5%. We get more from Bloomberg Markets reporter Abir Abu Omar. Some of the Asian countries are set to benefit from this, namely India and China. As a matter of fact, Morgan Stanley analysts say that the net or the average weighted tariff for Asian countries comes down to 17 % from 20%.

10:03percent. Bloomberg Zabir Abu Omar notes the dollar has weakened since the tariff ruling. And this morning, U.S. stock futures are lower after all three major indexes gained on Friday. Now, Nathan, let's switch gears and turn our focus to the Middle East. The U.S. and Iran are set to resume nuclear talks in Geneva on Thursday. Talks come in the face of a U.S. military buildup in the region. Iran's foreign minister says Tehran is working on a proposal for an agreement that meets the needs of both parties. There is a good chance to have a diplomatic solution, which is based on a win-win game. A solution is at our reach.

10:39So there is no need for any military buildup and military buildup cannot help it and cannot pressurize us. And Iran's foreign minister says the Islamic Republic will not be pressured by the U.S. military buildup in the Middle East. We get more on the situation from Bloomberg's Jumana Bersetchi in Dubai. I think if you go back to last year, President Trump was able afterwards to say that they had conducted very successful operations because they obliterated, quote unquote, Iran's nuclear centrifuges. Of course, we know now that they haven't completely obliterated the program, but they've obliterated at least the time frame at which Iran can create a nuclear weapon.

11:16This time around, it depends on what they're trying to achieve. And Bloomberg's Jumana Bursette, she notes that President Trump is considering limited strikes on Iran, which risks a destabilizing conflict in the region. Back to markets for a moment, Karen, because we have a couple of major stocks on the move to tell you about. Shares of Novo Nordisk are down more than 11 percent in Copenhagen. That's after results from a trial of its latest weight loss drug. The next generation obesity shot fell short of expectations compared to its rival Zep bound made by Eli Lilly. those shares are up 4 % in the pre-market.

11:54Time 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. Nick Reiner is sent to enter a plea to murder charges today following his arrest late last year in the stabbing deaths of his parents, Director Rob Reiner and his wife, Michelle Reiner. The 32-year-old faces two counts of first-degree murder. His defense attorney, Alan Jackson, withdrew from the case. Reiner was assigned a public defender. He remains in jail without bail. The U.S. Secret Service said an armed man was shot and killed after entering a secured area at President Donald Trump's Mar-a-Lago estate in Florida.

12:33Palm Beach County Sheriff Rick Bradshaw. The security detail detected that an individual had made his way into the inner perimeter of Mar-a-Lago. A deputy and two Secret Service agents on the detail went to that area to investigate. A portrait of the alleged gunman is emerging. The suspect is identified by the FBI as 21-year-old Austin Tucker Martin. A cousin says that the family is generally made up of Trump supporters, but Martin's feelings were unclear. The young man allegedly traveled from North Carolina to Mar-a-Lago. Neighbors of Martin are expressing their shock. For being a Trump supporter, you know, I appreciate what Trump does for us.

13:18And I don't see why things like this should happen, but they do. The president and first lady were not at Mar-a-Lago spending the weekend in Washington. All eyes on Mexico amid an explosion of drug cartel violence. The State Department telling U.S. citizens to shelter in place as some airports are shut down. The violence erupted after the head of Mexico's most powerful cartel was killed by the Mexican army on Sunday. Authorities say the man known as El Mencho died while being transported to a hospital. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg.

13:57Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The Olympics are over. They ended with overtime in men's hockey. in a U.S. 2-1 victory over Canada. The gold medal winning goal scored by Jack Hughes of the New Jersey Devils. Minute 41 into overtime. It came three days after the U.S. women also beat Canada 2-1 in overtime for their gold medal, and it came 46 years to the day after the miracle upset of the Soviet Union in Lake Placid. The U.S. had not won the gold medal in men's hockey since then. The 12th gold won by the U.S.

14:31in the games. Norway won the most. That's Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. 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. 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.

15:12These 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. That's Vanguard.com slash audio. All investing and subject to risk, Vanguard Marketing Corporation Distributor.

15:37hosts 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.

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16:37Around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Let's get more now on that powerful snowstorm that's pounding the northeast this morning, affecting much of the east coast, and it's canceling public transportation and flights. We're joined now by Bloomberg meteorologist Craig Allen. Thanks to the power of a generator, you certainly are feeling the effects, as are many millions of others, actually. This storm's not a joke. Where are we in the system? All right. The system is moving off the Delmarva now about 50, 60, 70 miles off the Delmarva. So in other words, southern Jersey, Delaware.

17:15And the worst of it right now, the heaviest snow, the strongest winds are being felt within about a 100 mile radius all directions of New York City. It is over for Washington, D.C. and really not much too far away from the storm. So a slushy one to two, two to four in some of those locales, Washington and suburbs. But it is snowing very heavily. Winds are gusting over 55 miles per hour in and around New York City. We could actually see another five to ten inches of snow as we go through the morning and into this afternoon. And it's first making its way on up towards Boston. So Connecticut is hit very hard with about 5 to 10 so far and at least another 5 to 10 to go.

18:02Fort Waite making its way through Rhode Island. And Boston, while not much on the ground just yet, as I said, is first getting into the worst of it now. And it will be a very snowy, windy day with blizzard-like conditions at times in and around Boston. And certainly south of Boston down towards the Cape. Okay, so if my math is correct, you're talking two feet in some areas. That is correct. There will be snowfall amounts of, let's say, 18 to 24 inches. And I think the most likely area for that will be along the Jersey Shore up towards New York City or actually east of New York City. The last report we got from Central Park was about close to 10 inches of snowfall so far.

18:44But there is well over a foot already 14, 15 inches of snow over parts of Long Island. and especially as you make your way across the eastern sections of Long Island. So the proximity to the storm itself is part of the reason for the snowfall, the way it's dispersed across the Northeast Corridor. Craig, when does this all wrap up? That also is a very interesting question and depends on your location. Again, there's not much more expected around D.C., maybe another few snow showers from time to time through the day, but little in the way of significant accumulation around New York City. Another 5 to 10 seems very, very likely through the afternoon.

19:24It may take until the latter part of the day. And the snow in the Boston area is going to continue right through the night tonight. And that's why the totals will go up substantially. Boston and suburbs as we go through at least the next, I would say, 12 to 18 hours for Boston. All right. Well, hunker down. Stay warm. We appreciate you being here. That's Bloomberg meteorologist Craig Allen. Nathan. All right, Karen. Thank you. Along with this blizzard heading up and down the East Coast, the trade winds are shifting now with the Supreme Court striking down President Trump's emergency tariffs last week.

20:00Now the administration's trying to keep the president's signature economic agenda intact. U.S. Trade Representative Jameson Greer says the president still has authority to impose a 15 percent global tariff rate under Section 122 of the Trade Act. Considering the severity of the issue we're dealing with, which is a huge unfairness, huge disparity, huge imbalance between the United States and its trading partners, just the urgency of the situation demands that he use his full authority. U.S. trade rep Jameson Greer appeared on CBS's Face the Nation, heard Sundays on Bloomberg Radio. And joining us now is Bloomberg News Global Trade Editor Brendan Murray.

20:38Brendan, let's get back into that subject that the trade representative raised there in that clip. How urgent is the trade disparity that the Trump administration sees, really? Good morning. Good morning. It depends on who you ask, but a lot of people will say that the U.S. has had a large and growing trade deficit for many years, if not decades, and the U.S. has fared just fine. Now, obviously, the U.S. has lost a lot of manufacturing jobs over the years, and those Those are the kinds of jobs that the Trump administration is trying to restore by encouraging companies to buy in the U.S. rather than from overseas.

21:19And the Trump administration, having lost the Supreme Court case and this broad authority that the president used to apply tariffs, now has to shift gears and go to Plan B. Plan B is this 15 percent global tariff, but that only lasts for 150 days. So that gets you into mid-August. And then the administration says that by then they can have other authorities that are more legally tested and durable in place to redirect the kind of flows of trade that they're trying to do. So the message from the administration is same policy, different tools. But in the interim, it means companies, governments that have trade deals with the U.S.

22:04are asking for details, uncertainty returns like it did, like we had last year, until the administration can offer some clarity about what tariff rates are and what countries they're targeting. Well, the White House is in the meantime telling trade partners to stick to the current deals. Can they, though, if the tariff rates are sort of under question now with the Supreme Court striking down the basis of many of those rates? Well, exactly. That's the main question governments around the world are asking. The European Union is asking that very question today as they consider suspending their implementation of the U.S.

22:47EU trade deal. So that could be one of the first signs of countries that are saying, hold on a second here, you've just changed the rules of the game and we need to go back to the negotiating table. Other countries, some in Asia, have said we'll abide by the terms of these deals that we've worked out subject to a clarification about what these new details are. So the president has signed something like 15 interim deals, framework deals, and concluded about five others. And those account, as the U.S. Trade Representative Jameson Greer has said, something like 40 percent of the U.S.'s trade with the rest of the world.

23:32So there's a lot at stake here, but the fine print needs to be reviewed again, given the Supreme Court's decision on Friday to take away the president's unilateral use of tariffs. We have about a minute left here, Brendan. Could the Section 122 tariffs, this 150-day window, could that face a legal challenge now? Yeah, there's some discussion about that amongst legal experts and economists that they're basing this 122 is based on a balance of payments crisis. Now, it's debatable about whether the U.S. has a balance of payments crisis. There certainly is a wide trade deficit, but whether that meets the definition of a balance of payments crisis is something the lawyers are going to have to hammer out.

24:21But legal court cases take a lot longer than 150 days to work through. So the feeling is administration is going to go with this. It might be challenged in court, but the clock will run out and they'll have these other authorities in place by then. 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. Wall 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.

25:05Plus, 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.