US and Ukraine Reach Minerals Deal; Wall Street Braces for Nvidia Earnings
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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 the latest on efforts to end the war in Ukraine. The country has agreed on a deal with the U.S. to jointly develop its natural resources. Sources say Ukraine's cabinet is expected to recommend today that the deal be signed and President Volodymyr Zelensky is planning to travel to the U.S. on Friday to seal the agreement. Here's President Trump speaking from the Oval Office.

I hear that he's coming on Friday. Certainly it's okay with me if he'd like to. And he would like to sign it together with me, and I understand that's a big deal. Sources say the deal came together after the U.S. dropped a demand for Kiev to pay $500 billion from resource extraction to a fund as a form of aid repayment. This framework agreement would create a joint U.S.-Ukraine fund to manage future natural resource revenues.

Well, Nathan, President Trump's plans to cut taxes have taken a big step forward on Capitol Hill. House Republicans have passed a budget blueprint that would make deep cuts to safety net programs like Medicaid to pave the way for $4.5 trillion in tax cuts. It's a victory for House Speaker Mike Johnson. We are going to deliver the America First agenda. We're going to deliver all of it, not just parts of it. And this was the first step in that process.

House Speaker Mike Johnson's plan was in doubt for much of the day. He initially canceled a vote with four Republicans holding out. But after phone calls from President Trump, just one Republican, Thomas Massey, joined with Democrats in voting against it. The bill now heads to the Senate where more changes could be made and that could lead to more objections from House Republicans. No, Karen, President Trump could be opening the door to a new tariff on metals. The president has signed an executive action for the Commerce Department to explore a levy on copper.

Senior administration officials say it's a national security issue. The dumping and overcapacity have left U.S. weapons systems and other critical products dependent on foreign copper. The officials say it's too soon to discuss a potential rate for the tariffs.

Nathan, President Trump is also making a move on immigration. The president says he will offer residency and a path to citizenship to people who pay at least $5 million on projects in the U.S. He says the plan will launch in two weeks and won't need congressional approval. We're going to be selling a gold card.

You have a green card. This is a gold card. We're going to be putting a price on that card of about $5 million, and that's going to give you green card privileges plus. It's going to be a route to citizenship. And wealthy people will be coming into our country by buying this card. They'll be wealthy.

Commerce Secretary Howard Ludnick says the move could replace the existing EB-5 visa program, which allows immigrants to acquire green cards by investing a certain amount in a U.S. business. And Karen, President Trump's plan to take over and develop Gaza may be taking shape. Trump's special Middle East envoy Steve Witkoff says they're planning a summit with real estate developers and planners in the Middle East. Witkoff isn't saying where this gathering would happen or when.

But he says many countries have contacted the U.S. about being part of a permanent solution for Gaza's residents. Witkoff's comments come as Israel tries to extend a ceasefire with Hamas that's set to expire this weekend.

Well, turning to the markets now, Nathan, and skepticism about potential tariffs and federal cost-cutting efforts may be taking a toll on investors. The S&P 500 has dropped more than 3% over the past four trading days, and the sell-off is affecting Elon Musk. His net worth fell by $22.2 billion yesterday. That's his fourth largest one-day loss. Tesla makes up more than half of Musk's fortune. That stock dropped more than 8%.

Tesla sales in Europe plunged nearly in half in January. Elon Musk's favorability there has tumbled as he's inserted himself into Europe's politics. Well, Karen, the direction of markets for the rest of this week will be greatly influenced by NVIDIA. The AI darling reports earnings this afternoon.

And Bloomberg's John Tucker is here with a preview. This is hotly anticipated, John. Yeah, and Nathan, chip demand, China and Donald Trump, they're going to be on investors' minds, as NVIDIA reports after the close. The results come just over a month after the launch of DeepSeek's cheaper AI alternative. And as you know, that scared investors into thinking there may be a dramatic drop-off in demand for equipment like NVIDIA's chips.

U.S. restrictions on selling to China may be a cloud. That's according to Dan Ives at Wedbush Securities. I think some of this stuff does go to the background, but no doubt it has been white knuckles to start the year. You don't know what's going to come out from a regulatory perspective in terms of this U.S.-China cooperation.

cold tech war. The investors will want forward guidance related to NVIDIA's next generation Blackwell chip. Back in the fall, CEO Jensen Huang said demand was insane. The Bloomberg consensus call for revenue $38.25 billion pre-market NVIDIA shares up

two and a half percent. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, NVIDIA, of course, is one of the so-called Magnificent Seven, and it has been anything but a magnificent start to the year for the group that's powered most of the S&P 500's gains over the past two years.

The Bloomberg Magnificent 7 Index has fallen almost 10% from a December high, erasing about $1.4 trillion in value. The MAG 7 Index is an equal weighted gauge of NVIDIA, along with Apple, Alphabet, Amazon, Meta, Microsoft, and Tesla. We will have full

coverage and analysis of Nvidia's earnings on Bloomberg Radio and the Bloomberg podcast page on YouTube. Well, speaking of the Magnificent Seven, Karen, one of those, Apple, may be getting an iPhone ban lifted in Indonesia. Apple has signed an investment agreement paving the way for sales of the iPhone 16 to resume in Southeast Asia's largest nation.

The pact is set to end a five-month tussle that began in October after Indonesia refused to issue a sales permit to Apple, citing failure to comply with domestic manufacturing requirements for smartphones and tablets.

And Bank of America to the list of Wall Street firms scrapping DEI plans. Nathan, the bank is rolling back workplace representation targets and replacing references to diversity, citing legal changes under the Trump administration. In an interview heard right here on Bloomberg Radio, Bank of America CEO Brian Monahan told David Rubenstein about the company's recent inclusion efforts.

We have a very diverse company in terms of representation from all economic stratas, all races, all ethnicities. Once they get in, the opportunity is there a lifetime. We equal pay for equal work, the ability to promote, we train, we do all the work. And so the idea is that's an opportunity.

Bank of America CEO Brian Moynihan says the bank will no longer have aspirational goals for diversity and inclusion and will replace references to diversity with talent and opportunity in its annual report. Finally, Karen, we want to let you know about something new for Bloomberg.com subscribers. Get the Going Private.

It's delivered to your inbox Wednesdays and Fridays, bringing you coverage of private markets and the forces moving capital away from the public eye. Subscribe to the Going Private newsletter now at Bloomberg.com slash Going Private.

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 Jersey Governor Phil Murphy has unveiled a $58.1 billion budget proposal for the fiscal year starting July 1st. It caps new discretionary spending and relies on $27.9 billion in federal funds.

The proposal includes cuts to various departments such as agriculture and environmental protection. Murphy, in his address at the state capitol in Trenton, also says working families have been pummeled by rising prices with the noise of chaos louder than ever in Washington.

We need to keep fighting with every fiber of our being for our children, workers, parents, senior citizens, and every New Jerseyan who is struggling to get by. The NTSB and FAA are investigating a close call at Chicago's Midway Airport between a Southwest Airlines Boeing 737 and a business jet.

As the Southwest flight from Omaha was touching down, the business jet crossed the runway in front of it. The Southwest pilots, right as the wheels were about to touch the runway, pushed the throttles up and took off. Air traffic controllers could be heard telling the business jet not to cross the runway, but it did anyway. Retired Marine fighter pilot Colonel Stephen Gagnard. If the Southwest crew hadn't been so alert and seen this aircraft crossing the runway, this could have been a terrible, terrible tragedy.

The White House says its officials will determine which news outlets cover President Donald Trump. White House Press Secretary Caroline Levin. Legacy outlets who have participated in the press pool for decades will still be allowed to join. Fear not.

But we will also be offering the privilege to well-deserving outlets who have never been allowed to share in this awesome responsibility. Levitt says the move would restore access back to the American people who elected Trump. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. All right, Michael Barr, thank you.

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Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashower. John, good morning. Good morning, Karen. An uphill climb for the Rangers trying to make the playoffs despite that horrendous stretch when they lost 15 out of 19 games at the UBS Arena. They beat the Islanders 5-1. Johnny Brzezinski with a pair of first-period goals. Even Matt Rempe scored, and the Rangers are now

two points behind columbus for the last playoff spot in the east washington lost to calgary 3-1 but alex ovechkin scored the caps goal his 30th of the season he needs 12 more goals for wayne gretzky's career goal scoring record it was boston against toronto in the nhl and nba at td garden the bruins blew a three nothing lead lost to the maple leaves 5-4 in overtime in toronto celtics beat the raptors 111-101 in l.a the lakers beat dallas 107-99 luke gadan since faced his former team

had a triple-double. Knicks come off that loss weekend, those losses in Cleveland and Boston. They're at the Garden tonight to play Philadelphia. St. John's with a win tonight, and Butler clinches at least a tie for the Big East regular season title. What didn't Diana Taurasi do in her career? Three NCAA championships at UConn led Phoenix to three titles in the WNBA, where she scored the most points in league history.

six Olympic gold medals to Rossi retiring at age 42. The NFL scouting combine underway in Indianapolis. Giants GM Joe Shane looking for a quarterback, either a rookie or a veteran or maybe both. You know, we don't know what's going to happen in the draft. We don't know who's going to be there.

you know, when we get around these kids, they may or may not be a fit for us. So, you know, we're going to have to address the position somewhere. And even if you get a young quarterback, you'd like to have a vet, you know, in the room with them to show them the ropes and how to be a pro. So, you know, we're looking at all different avenues. It's, hey, is this guy going to be really good for a young quarterback or is this guy a starter? Cleveland GM Andrew Barry says the Browns are not going to trade Miles Garrett, who's tired of losing once out. Kansas City GM Brett Veach weighed in on Travis Kelsey. He said he believes...

Kelsey will not retire. John Staschauer, Bloomberg Sports. 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. Ukraine may have a deal to develop its resources jointly with the U.S. and move toward a ceasefire with Russia. President Vladimir Zelensky is expected to head to the White House on Friday to

seal the agreement. It backs off an initial demand from the U.S. for a half trillion dollars as a form of repayment for aid. But President Trump says he is getting what he wants. It could be a trillion dollar deal. It could be whatever. But it's rare earths and other things. And look, we're spending hundreds of billions of dollars on Ukraine and Russia fighting.

A war that should have never, ever happened. President Trump speaking from the Oval Office, as heard on Bloomberg Radio. For more, we're joined by Bloomberg News Senior Editor Bill Ferrys. And Bill, just listening to those comments, it sounds like the president is sort of glossing over the details. But let's get into the details. What is in this deal? Good morning.

Good morning, Nathan. Well, I think we almost know more about what's not in the deal at this point than we know what's exactly in the deal. But as you mentioned, what's not in it is that initial $500 billion request that the U.S. had to get repaid for its support to Ukraine over the last three years of this war. It seems to be more of a kind of a framework agreement that will create a fund for

jointly managed by the U.S. and Ukraine based on revenue that comes from developing rare earths and perhaps other natural resources in Ukraine. We don't know what that fund is expected to top out at, and we don't exactly know what that fund is going to spend its money on. But it seems like both sides have agreed in this situation. They've agreed to agree. And that's probably for Ukraine.

The most important part of this, if you remember just last week, we were watching the U.S.-Ukraine relationship melt down as Trump called Zelensky a little dictator. And Zelensky said that Trump was living in a disinformation space. So things were looking very rocky a week ago. Zelensky coming into Washington now looks like they've agreed to at least be in the same room and talk.

We don't think there are, as far as we know, security guarantees for Ukraine in all of this, but it's probably as much as they're going to get at this point, and they keep that relationship with the U.S. functioning. Okay, so where does this leave things when it comes to getting closer to a resolution between Russia and Ukraine and with Europe as well? Of course, in the talks yesterday,

With U.S. and Russian officials, Europe was kind of left on the sidelines. They were left on the sidelines in what seems to be a process that's unfolding very, very quickly. You know, Donald Trump just a few days ago said that he could be meeting with Vladimir Putin within a couple weeks.

So I think where it leaves the overall situation, it gives Ukraine a chance to show that it's willing and able to strike a deal with the U.S. That, I think, from their perspective, keeps them at the table as the Trump administration pushes forward as quickly as possible.

as quickly as they can to reach a deal with Russia. President Trump already talking about the potential for easing sanctions on Russia, doing deals, natural resource deals with Russia. I think Europe and Ukraine have been watching that with a lot of alarm. At this point, they're glad to find something that gets Zelensky to sit at a table with Trump and reach a deal.

And in terms of the kind of investment that we could see come out of this, Bill, there's a question about just how much resources Ukraine has. Isn't there in terms of critical minerals? We have about a minute left.

Yeah, I mean, there have been reports of trillions of dollars in mineral deposits. But the reality is when you talk about rare earth reserves, Ukraine has no rare earth reserves that are really recognized internationally as economically viable. So that's where a lot of questions, I think, are going to come up on how much money would really go into this fund.

Is it really an economic deal or is it more of just a political deal? 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.

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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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