Trump Auto Tariffs; Eric Adams Heads to Court
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Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with Donald Trump's push for tariffs. The president says he will likely impose duties of around 25% on imports of cars, semiconductors, and pharmaceuticals. He says he'll announce the new charges in April. As heard here on Bloomberg Radio, Trump spoke to reporters at his Mar-a-Lago club in Florida.

It'll be 25% and higher, and it'll go very substantially higher over a course of a year.

But we want to give them time to come in because, as you know, when they come into the United States and they have their plant or factory here, there is no tariff. So we want to give them a little bit of a chance. Again, that was President Trump at Mar-a-Lago. Now, new tariffs on cars would have sweeping effects on the industry. The roughly 8 million passenger cars and light trucks brought into the U.S. last year accounted for about half of U.S. vehicle sales.

Well, Nathan, President Trump is promising to cut hundreds of billions of dollars in waste out of the federal budget. The president defended the Doge effort in an interview on Fox News Channel's Hannity program alongside the man who's spearheading the cost-cutting drive, Elon Musk.

The overall goal is to try to get a trillion dollars out of the deficit. And if the deficit is not brought under control, America will go bankrupt. This is a very important thing for people to understand. Elon Musk had talked about cutting $2 trillion during the campaign. President Trump heaped praise on the world's richest man during the interview. He's a leader. He really is. He gets it done. You get a lot of tech people and you have people that go to a tech, but they...

And the president tells Fox's Sean Hannity if Musk has any business conflicts with his work on spending cuts, he won't be involved. Well, Karen, Treasury Secretary Scott Besson says Elon Musk's Department of Government Efficiency is saving the country tens of billions of dollars. Besson also spoke on Fox News. I think I saw an estimate today of about 50 billion. So that's a very good start.

And I don't think it's unreasonable to think that we could have several percent of GDP that we are saving. Treasury Secretary Scott Besant also says taxpayers don't need to worry about the security of their private data while Elon Musk's team seeks to make the federal government more efficient.

Well, to foreign policy, Nathan, Secretary of State Marco Rubio said the U.S. will keep sanctions on Russia at least until a deal is reached to end the conflict in Ukraine. Rubio spoke to European allies after joining other U.S. officials in Saudi Arabia for the highest level face-to-face meeting with Russian counterparts since Moscow's invasion in 2022. I came away today convinced that they are willing to begin to engage in a serious process to determine how

and how quickly and through what mechanism can an end be brought to this war. Whether we can ultimately reach that outcome will obviously depend on every side in this conflict's willingness to agree to certain things.

Secretary of State Rubio says an end to the war would open, quote, incredible opportunities to partner with the Russians. President Trump's special Ukraine envoy, Keith Kellogg, has now arrived in Kiev a day after the Russia talks. Back in Washington, Karen, Howard Ludnick has been confirmed and sworn in as Commerce Secretary. As a result, he's named his two eldest sons and three company deputies.

to run the core of his business group following his resignation from Cantor Fitzgerald. Lutnick also says he will divest his business interests within a few months of his appointment. Well, back in New York, Nathan, Mayor Eric Adams will face a federal judge in Manhattan later today who will decide whether to grant the Justice Department's request to dismiss corruption charges just weeks before an April trial. We get more with Bloomberg's Ed Kalecki in New York.

Judge Dale E. Ho said the parties in the case must be prepared to address the reasons for the government's dismissal request. On Sunday, Adams told reporters his ability to lead through turmoil should be noted. Go back and do an analysis from the day that I was invited to what we have accomplished. That is my ability to lead

through turmoil, and I'm going to continue to do that. Adams has pleaded not guilty to charges that while in his prior role as Brooklyn Borough President, he accepted over $100,000 in illegal campaign contributions and lavish travel perks from a Turkish official and business leaders seeking to buy his influence. Ed Kalecki, Bloomberg Radio. All right, Ed, thank you.

Well, X is marking the spot for Elon Musk lately. Bloomberg News has learned Musk's social media company, X, is in talks to raise money at a $44 billion valuation. That's the same price the billionaire paid three years ago when the company was known as Twitter. The funding round would be a remarkable turn of fortunes for X after Musk's takeover and overhaul caused many users and advertisers to flee.

Well, turning to the markets now, Nathan, stocks begin the trading session in record territory. A rally in chipmakers drove the S&P 500 to an all-time high. Global stocks have become the most popular asset class with investors. According to a survey by Bank of America, investors are showing the biggest willingness to take risk in 15 years.

Fund managers' cash levels fell to the lowest since 2010 in that survey. And as stocks soar to records, Karen, the CEO of one of Wall Street's biggest banks is benefiting Citigroup, has lifted Jane Frazier's total compensation to $34.5 million for 2024. That is a 33% increase from the prior year. Jane Frazier's pay rise comes after Citigroup posted record revenue in three divisions.

And in Europe, Nathan, HSBC said it will incur $1.8 billion in charges over the next two years as it embarks on a global restructuring program. Europe's largest lender hopes the restructuring will allow it to whittle away $3 billion in expenses in the coming years, with about half of that to be reinvested into priority growth areas.

And it's 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 John Tucker. John, good morning. And good morning, Karen. Investigators are reviewing Monday's crash of the Delta Regional Jet at Toronto Pearson International Airport. The plane's cockpit voice recorder and flight data recorder have now been recovered. They're also talking to passengers and crew. John Nelson was among the passengers.

We hit the runway extremely hard and we kind of popped up and it felt like we were leaning to the left. There was a giant firewall down the side. I could actually feel the heat through the glass. And then we were going sideways. I'm not even sure how many times we like tumbled. The plane flipped over after landing. It's the fourth major aviation accident in North America in the past three weeks. There were nearly two dozen people injured, but all 80 on board escaped flight 4819 with their lives.

A blast of Arctic air has much of the nation continuing in that deep freeze. Let's get the update this morning from Bloomberg meteorologist Rob Carlin. John, bitter cold will continue to stretch from the Dakotas into portions of Texas. It'll make its way into the Gulf Coast and eventually portions of the southeast by tomorrow. We'll be looking at some spots watching their temperatures run 50 degrees below normal today. Now, ahead of the cold air, we've got a storm system that'll bring snow to parts of Tennessee, Kentucky, Virginia, and North Carolina today.

That's Bloomberg meteorologist Rob Carolin. Hamas says it's ready to exchange its remaining Israeli hostages for Palestinian prisoners. It would come in the second phase of the Gaza truce, leading to what they say would be a permanent ceasefire and Israel's full withdrawal from Gaza.

ASAP, ROCKY DOVE INTO THE ARMS OF RIANA AS A COURT CLERK READ THE NOT GUILTY VERDICT AT HIS TRIAL ON TWO FELONY COUNTS OF ASSAULT WITH A FIREARM. THE LOS ANGELES COURTROOM, FULL OF FANS OF THE HIP-HOP PERFORMER AND HIS SINGING SUPERSTAR PARTNER, EXPLODED INTO SCREAMING GLEE. AFTER A THREE-WEEK TRIAL, THE JURY DELIBERATED FOR JUST THREE HOURS TO REACH THE VERDICT THAT SPARED ROCKY A PRISON SENTENCE.

And the Vatican reported the diagnosis for the pontiff now more serious than originally thought. But Francis is now fighting pneumonia. The 88-year-old had a CAT scan, which showed that he now has an infection in both of his lungs. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker. This is Bloomberg. Karen. All right, John, thank you.

When you have bars in the sky, onboard showers and award-winning in-flight entertainment, it's no surprise that Emirates was recently named the best airline in the world. We fly you to over 140 destinations and with partners across the globe, we connect you to another 1,700 cities across six continents. So when we say we're also the largest international airline, what we really mean is...

If you're going there, so are we. Book now on Emirates.com. Fly Emirates. Fly better. This show is sponsored by BetterHelp. BetterHelp has been revolutionary in connecting people to mental health services. Using BetterHelp can be as easy as opening your laptop or your phone and clicking a button, and the session begins.

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Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashour. John, good morning. Good morning, Karen. Every baseball offseason, there appears to be one or two big-name free agents. A couple years ago, Aaron Judge, Shohei Otani, then Juan Soto, Vladimir Guerrero Jr. Maybe not quite at that level, but he's still only 26 in last season in Toronto. He hit .323 with 30 homers, 44 doubles. He had set a deadline of yesterday to get a long-term deal done with the Blue Jays. The deadline passed. Guerrero said they had...

Their numbers, I had mine. He's another one, apparently betting on himself. Unless something changes, he'll be a free agent after the upcoming season. Like Soto was, of course, went from the Yankees to the Mets, making for high hopes for Mets owner Steve Cohen. He was asked yesterday in Fort St. Lucie his goals for the upcoming campaign. You always want to set high standards and high goals. There's no guarantee in anything, right? It's really hard to win a World Series, but...

The thought of we're putting together a team, not just a team good for one year, but we want to create sustainable success. And if we keep making the playoffs, why can't we get to the ultimate goal?

Cohen admits that with DeSoto signing and others, they blew through their budget. St. John's only lost once in 2025. Red Storm ranked 10th in the country. They're atop the Big East by two games. Haven't won the Big East regular season since 1986. Played tonight at DePaul. Seton Hall after a stunning upset of UConn over the weekend. Lost last night at Marquette, 80-56. While the Huskies were back home, they beat Villanova 66-59. The NBA is back tonight. One game, it's a make-up in L.A. due to a postponement during the fires. The Lakers play Charlotte.

Third Laker game for Luka Doncic, but LeBron James unlikely to play. He's got that ankle injury that kept him from playing the All-Star game. Knicks are back tomorrow at the Garden against Chicago and also tomorrow in Boston. It's the U.S. and Canada. The 14 face-off championship game. Several U.S. players nursing injuries, but only one has been ruled out. Bruins defenseman Charlie McEvoy. John Staschauer, Bloomberg Sports. Karen and Nathan.

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's special envoy to Ukraine, Keith Kellogg, has arrived in Kiev for talks with President Volodymyr Zelensky a day after the first high-level meetings between the U.S. and Russia since the invasion in 2022. And following that summit in Riyadh,

Secretary of State Marco Rubio said it is important to reset the U.S.-Russia relationship. We haven't really had much engagement with the Russians for almost three years, and it sets the table for future conversations. How that turns out will be up to the parties and their willingness not just to make commitments but to live by them. That will be tested.

in the weeks to come. And for some analysis, we are joined now by Bloomberg opinion columnist Mark Champion. Mark, thanks so much for joining us this morning. And also following this meeting, Secretary of State Rubio said that sanctions will remain in place on Russia at least until there is a deal to end the Ukraine conflict. I guess the question is whether the conflict is going to end quickly. Good morning.

Yes. I mean, at the moment, it looks as though the U.S. is moving very quickly to end the conflict. That is going to be worrying, much as the Ukrainians want to see the war end, and certainly also the Europeans. It's going to be worrying to both, simply because the U.S.

The quicker you want to end it, the easier the path is that takes you to giving concessions to Russia and enforcing concessions on the weaker parties, which is both Ukraine and Europe. And at the moment, it does rather look as though we are headed in that direction.

The Ukrainian side says it wants security guarantees. The U.S. has said it recognizes that. What could security guarantees look like? Well, for the Ukrainians, that's the most worrying thing. They can deal with territorial losses, at least de facto, if not de jure. But what they've always said is there have to be absolutely solid security guarantees there.

because we know that the Russians will otherwise be back. This happened after 2014 when they made a deal that didn't include security guarantees. The original Budapest memorandum under which Ukraine gave up its nuclear weapons

Also said that the various parties, including Russia, would guarantee Ukraine's borders, but there weren't any concrete security guarantees in there. And you've had invasion of Ukraine by Russia and no Western troops in to support Ukraine.

you know, to follow up on the Budapest memoranda. So the Ukrainians have very bitter experience about this, and they are quite united about it, actually. And, you know, so I think, you know, there is a real possibility you end up with a situation in which the Americans say, OK, we've got a deal.

with the Russians, and then the Ukrainians say, we don't accept it. And at the moment, both the Kremlin and President Trump yesterday in some extraordinary remarks are pushing for elections that would get Zelenskyy replaced

But I suspect that that would – in these circumstances with such a deal being pushed on them, if that's how it goes, he might well – if elections were held, which would be very difficult and unconstitutional, he might well win. And so I think it's a –

We don't know yet how this is going to turn out. We don't know yet how much the U.S. will give away with Ukraine and Europe not at the table. They've already given away most demands that the Russians have. They said that Ukraine will not be admitted into NATO, that it will not get its territory back.

and that the U.S. will not be involved in leading on security guarantees. And it's more or less just sort of shrugged its shoulders and said that if Europe wants to send a peacekeeping force in, then that's fine by the U.S. But so far, we haven't seen a lot more commitment. So in our last minute, Mark, how important are these conversations going to be between the special Ukraine envoy, Kellogg,

And Ukraine's president a day after Ukraine wasn't included in these Russia talks. Well, that's a very good question. You know, so the Ukraine envoy was not at the talks. Also, Kellogg was not at the talks. You know, he's now going to try and...

reassure the Ukrainians and reassure also the Europeans. That's kind of his job. But from what we can see in terms of who is actually taking the lead, he is not the guy. It's more Steve Witkoff, who was the Trump special envoy on Gaza also to Israel. And he was at the table.

seems to be President Trump's fixer. So, you know, it's, yeah, it's again, it's too early to say exactly how this will turn out. Yeah. But there are a lot of signals here that are not encouraging for Ukraine. 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. 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. Feeling buried in a never-ending to-do list that comes with running a business? Managing orders? Tracking expenses? It's a lot.

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