China Hits Back Against Trump’s Tariffs; Netanyahu-Trump Meeting
17:19 Share

Feeling buried in a never-ending to-do list that comes with running a business, managing orders, tracking expenses, it's a lot.

That's where Amazon Business steps in. They've got smart buying solutions like Spend Visibility, a cloud-based system to track your buying patterns so you can optimize your savings, and Bulk Buying, so you can continue to save costs on select products with quantity discounts. Smart, right? Let Amazon Business take care of the admin so you can focus on what really matters, growing your business. Check out Smart Business Buying at AmazonBusiness.com. A Business Prime membership is required to access Spend Visibility.

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.

Clients are able to choose in what way they would like to communicate with me, whether video or on the phone or chat texting. BetterHelp is there when you need it, and that's what makes all the difference. Visit betterhelp.com slash podbusiness to get 10% off your first month. Therapists were compensated. Bloomberg 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 developments in a trade war now between the U.S. and China. At midnight, the Trump administration imposed a 10% tariff on all Chinese goods. This morning, China is retaliating. Bloomberg's John Tucker joins us with the latest. John, what is the response? Nathan, Beijing has imposed a 15% tax on some U.S. energy imports.

and a 10% fee on American oil and agricultural equipment. It also put companies like Calvin Klein owner PVH Corporation and Illumina on a blacklist. China also said it's going to investigate Google for alleged antitrust violations.

by targeting a handful of American companies, Nathan and Karen, and slapping levies on some U.S. goods, this move does seem designed to avoid escalating tensions. The tariffs are set to kick in February 10th, and this potentially leaves room for negotiation. And President Trump also did signal a desire to speak with the Chinese leader, Xi Jinping, before the tariffs take effect. So the reaction in the market seems to be muted at this point.

The Chinese currency, the offshore yuan, little change this morning. In fact, it's up three-tenths of a percent right now. And then the Hang Seng China Enterprises Index, this is of Chinese stocks listed in Hong Kong. That has rebounded. Initially, it dove at the news of the U.S. tariffs and the Chinese countermeasures. And right now, in fact, it is up three-and-a-half percent.

In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. While tariffs on China are moving ahead, America's neighbors are getting a reprieve. President Trump says he's delaying 25% tariffs on Canada and Mexico for a month. Those were due to kick in just after midnight this morning. Bloomberg's Derek DeCloet says Canadian Prime Minister Justin Trudeau made a number of concessions on border enforcement.

Bloomberg's Derek DeCloet reports Canada is also going ahead with a $900

million dollar plan it announced in December to add more resources to the border security, including helicopters. Nancar in Mexico is also getting a 30-day delay on tariffs. President Trump says he's gotten a similar border security agreement from President Claudia Sheinbaum. They've agreed to put in 10,000 soldiers permanently.

like forever, 10,000 soldiers at their side of the border and stop fentanyl and illegal aliens from coming into our country. President Trump's deal with Mexico is similar to one from the Biden administration. Mexico also agreed to send 10,000 troops to its own southern border in 2021. President Trump says the U.S. will negotiate now with both Mexico and Canada over the next 30 days on a more permanent economic deal.

Well, Nathan, we now turn to the latest developments in the war overseas. President Trump wants an agreement with Ukraine to access its critical mineral resources in exchange for U.S. aid in its defense against Russia. We're telling Ukraine they have very valuable rare earth. We want what we put up to...

go in terms of a guarantee. We want a guarantee. We're handing them money hand over fist. We're giving them equipment. European is not keeping up with us. Ukraine has significant reserves of uranium, titanium, lithium and graphite, which could be worth trillions of dollars. And President Volodymyr Zelensky offered Western allies access to these resources.

as part of his victory plan last year. Meanwhile, Karen, President Trump is going to meet later today with Israeli Prime Minister Benjamin Netanyahu in Washington. Bloomberg's Amy Morris has a preview from the nation's capital. Israeli Prime Minister Benjamin Netanyahu says being the first world leader to visit the White House and meet with the president since his inauguration sends a strong signal.

I think it's a testimony to the strength of the Israeli-American alliance. The meeting comes as U.S. and Arab mediators begin brokering the next phase of a ceasefire agreement. Netanyahu plans to discuss with President Trump critical issues facing Israel and the region, including victory over Hamas, achieving the release of the remaining hostages in Gaza, and dealing with the Iranian axis. Amy Morris, Bloomberg Radio.

All right, Amy, thank you. The president has signed an executive action to create a sovereign wealth fund for the U.S. Treasury Secretary Scott Besant and Commerce Secretary nominee Howard Lutnick will be spearheading the effort. Here's Besant. Within the next 12 months, we're going to...

monetize the asset side of the U.S. balance sheet for the American people. We are going to put the assets to work, and I think it's going to be very exciting. We're going to study best practices that's done around the world.

And Treasury Secretary Scott Besson said the fund would be created within the next 12 months and could be used to facilitate the sale of TikTok. Well, let's turn to markets now, Karen, as we watch futures move lower once again this morning, this time on the China-U.S. trade war. S&P futures are down about two-tenths of one percent. Stocks paired their losses yesterday after the U.S. agreed to delay tariffs on Canada and Mexico. The S&P closed down three-quarters of one percent after being nearly two percent lower earlier in the session.

Well, one stock that's on the move this morning, Nathan, is Palantir. The shares are up more than 18%. The software company is out with a full-year revenue forecast that exceeded analysts' estimates. We get more with Bloomberg's Charlie Pellett. CEO Alex Karp cites what he calls untamed organic growth in demand for its artificial intelligence software. Derek Yan is senior investment strategist at Crane Funds. We see Palantir has the potential to

to become the go-to operating system for enterprises in the AGI world. A reference to artificial general intelligence. Best known for its national security work and more recently its AI platform, Palantir's stock surged 340% last year.

In New York, Charlie Pellett, Bloomberg Radio. Thanks, Charlie. Looking overseas, shares of UBS are down nearly 6%. The bank beat earnings estimates, but concern persists over a potentially substantial increase in capital requirements. In an interview with Bloomberg, CEO Sergio Armani warned markets may not fully reflect the impact posed by President Trump's tariffs.

I can see inflationary pressure coming out of tariff war. And that in turn would mean that central banks would need to stop their easing path, potentially even reverse something that is not priced in the market. UBS CEO Sergio Amati also says the bank aims to buy back up to $3 billion of its own shares this year.

And staying in Europe, Nathan, shares of Diageo are down about a tenth of a percent. The maker of Johnny Walker, Kettle One and Casa Amigos is scrapping its sales target as it deals with sluggish growth and a possible tariff battle in the U.S., its biggest market. About 45 percent of Diageo's U.S. sales are from products made in Canada and Mexico.

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. Democrats are upset about the abrupt shutdown of the U.S. Agency for International Development. Republicans say they welcome the move. The independent federal agency is approved and funded by Congress. But over the weekend, it was essentially shuttered by the Department of Government Efficiency, or DOGE, headed by billionaire Trump ally Elon Musk.

Democratic Senator Brian Schatz of Hawaii called the move flatly illegal. This is about literally, do we uphold the rule of law in the United States? One of those employees was Christina Dry, a speechwriter for the agency. Dry says she was locked out of her computer without notice.

Literally, you couldn't email things to yourself. You couldn't download any of your work. You couldn't communicate. People like me who had access revoked didn't even get this email to not come in. I heard about that through the grapevine. Democrats are asking if Musk has the power to shut an entire agency. White House Press Secretary Caroline Leavitt responded. I can confirm he's a special government employee. I can also confirm that he has abided by all applicable federal laws.

It comes as news that Doge now has access to the Treasury Department's payment system. Secretary of State Marco Rubio visiting El Salvador announced an offer from the country's president to accept deportees from the U.S. and jail violent American criminal citizens now in prison in the U.S. as well. He has agreed to accept for deportation any illegal alien in the United States who is a criminal.

from any nationality, be they MS-13 or Tren Daragua, and housed them in his jails. A U.S. official said that Rubio spoke that the Trump administration had no plans to try to deport American citizens, but that the offer was significant. The U.S. government cannot deport American citizens.

Finally, the son of billionaire New England Patriots owner Robert Kraft plans to run for mayor of Moston. Josh Kraft will formally announce his campaign later this morning. Josh Kraft will run against first-term mayor Michelle Wu. He says his number one priority is to lower the cost of housing. Global News, 24 hours a day, whenever you want it, with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg. Karen. All right, Michael Barr, thank you.

Running a business, it's a lot, right? Orders to place, expenses to track, procurements to manage. It feels like there are never enough hours in the day. We could all use more time. That's where Amazon Business comes in. They offer smart buying solutions to help you make the most of yours.

like Spend Visibility, a cloud-based system to track your buying pattern so you can optimize your savings, and Bulk Buying, so you can continue to save costs on select products with quantity discounts. Now that's smart. Amazon Business handles the heavy lifting.

so you can finally focus on growing your business instead of drowning in admin. From customized recommendations to real-time spend tracking and delivery options tailored to your schedule, they've got your back every step of the way. Why not spend less time sweating the small stuff and more time crushing your goals or maybe even sneaking in some well-earned downtime? Discover more about smart business buying at AmazonBusiness.com. A Business Prime membership is required to access spend visibility.

I'm Alpine skier Michaela Schifrin. I've won the most World Cup ski races in history. But what does success mean to me? Success means discipline. It's teamwork. It's the drive and passion inside of us that comes before all recognition. And it's why Stiefel is one of the fastest growing global wealth management firms in the country. If you're looking for success, surround yourself with the people who will get you there.

At Stiefel, we invest everything into our advisors so they can invest everything into their clients. That means direct access to one of the industry's largest equity research franchises and a leading middle market investment bank. And it's why Stiefel has won the J.D. Power Award for Employee Advisor Satisfaction two years in a row.

If you're an advisor or investor, choose Stiefel. Where success meets success. Stiefel Nicholas & Company, Inc. Member SIPC and NYSE. For J.D. Power 2024 award information, visit jdpower.com slash awards. Compensation provided for using, not obtaining the award.

Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashower. John, good morning. Good morning, Karen. Good one at the guard. Knicks and the much-improved Houston Rockets who threw three quarters at an 11-point lead. So in the fourth, the Knicks look to their captain. Brunson against Thompson. Gets inside. Layup off the glass. The Brunson barrage continues. Shot making here in the fourth quarter. Brunson has been the catalyst. He's made all the big hoops now.

A minute remaining. Brunson at three. Back. Timeout. Rockets.

On MSJ, Knicks won 124-118. They scored 46 points in the fourth and 17 of those by Brunson, who finished with 42. He's third in Knicks history with now 18 games of 40 or more. He's only in his third season with the team. Knicks play tonight in Toronto. Rockets go to Brooklyn. Top two in the East meet tonight, Boston and Cleveland. The Cavs are 40-9 and West leading Oklahoma City with a blowout win over Milwaukee. The Thunder now.

39-9. At the Garden tonight, it's Red Hot St. John's riding an eight-game winning streak, looking to remain unbeaten at home and taking on Marquette, top two teams in the Big East. Baseball has fired umpire Pat Hoberg, who didn't work any games in 2024, due to an investigation that determined Hoberg shared a betting account with a friend who bet on MLB games. Hoberg said he's embarrassed, but that he never bet on baseball himself. He can apply for reinstatement next year. Chiefs and Eagles in New Orleans.

So some familiar faces for Super Bowl opening night for Patrick Mahomes and Travis Kelsey. It's their fifth Super Bowl in six years. But it's the first for Saquon Barkley, who on Sunday will try to win a Super Bowl on his 28th birthday. John Stasch, Bloomberg Sports, Karen 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 and the opening shots have been fired in a new trade war between the U.S. and China. After President Donald Trump slapped 10% duties on Chinese products just after midnight East Coast time,

Beijing has responded with levies of its own on U.S. energy and agriculture equipment, blacklist designations for a couple American companies, and an antitrust investigation into Google. For the very latest, we're joined by Bloomberg News Global Trade Editor Brendan Murray.

Brendan, good morning. What to make of this response from China? Is it a full tit-for-tat against the 10% tariffs? Good morning. I think the way it was characterized is right. These are opening salvos from both sides. A 10% tariff on Chinese imports into the U.S.,

is not really going to change the dial all that much in terms of trade flows between the two countries. China's retaliation is viewed as fairly measured. They launched an anti-trust investigation into Google, but Google's search

services have been unavailable there. So, you know, they're kind of a paper tiger response. But basically, this is the dance that the world's two largest economies will do, that will bring them to the table. President Trump will meet with President Xi, undoubtedly, in the weeks ahead, and they'll start working out a deal.

If they can't, then we will see a trade war. And 10% tariffs that Trump has put on China could become 60%. And an investigation, this one that we saw into Google, could turn its crosshairs to a company like Tesla, which has a big operation in China and obviously would make much more of an impact in the White House than this other investigation has.

Given what's being described as a muted response from China, could it have afforded to do more given the struggles that we've seen in the Chinese economy?

Not really. This is Beijing's way of saying, "We're ready to deal with you. Let's get to the table and start negotiating." If they wanted to do much harm to the U.S. economy, they would have to come with a whole lot more than what they did. That's not in their interest right now. As you suggested, their economy is on the back foot, and they need to make sure that they maintain

some sort of reasonable relationship with the U.S. economy right now rather than cut it off completely. Do we have a timeline on when Presidents Trump and Xi could speak? And what would the contours of a deal between these two countries potentially look like?

Well, if you take the previous deal, we don't really know the timetable. President Trump is supposed to meet with a number of leaders in the weeks ahead, and President Xi will certainly be one of those. The contours of any particular deal, you'd have to look back to the blueprint that we saw five years ago when Trump announced his, quote-unquote, phase one agreement. They could go back to something like that, where China agrees to, you know,

purchase a certain amount of American exports, agriculture, energy, those kinds of things. But President Trump is transactional. He's going to want something in return for keeping tariffs off of Chinese imports. And speaking of that transactionality in our last minute, Canada and Mexico were supposed to get 25 percent tariffs after midnight. Now that's been delayed another month. What's that say about the seriousness of the tariff threat from the president?

Well, it says that he's playing his poker hand pretty carefully when it comes to those two countries. Those are obviously more allies than China would be, and we're connected, the U.S. is, through a free trade agreement across North America. So, it says that he

He walks away with a pledge for both Canada and Mexico to tighten border security, to migration and the flow of drugs. But it essentially kicks the can down the road. And 30 days from now, we're going to be having a similar conversation about whether...

those threats of tariffs are more of a bluff or they're for real. 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.

I think a

A lot of people think that you're supposed to be going to therapy once you're like having panic attacks every day. But before you get to that point, I think once you start even noticing that you feel a little bit off and you can't maintain this harmony that you once had in relationships, that could be a sign that maybe you want to go talk to somebody.

There's always a benefit in talking to someone because we can all benefit from improved insight about ourselves and who we are and how we behave with other people. So if you're human, that's like a good indicator that you could benefit from talking to somebody. Find out if therapy is right for you. Visit BetterHelp.com today. That's BetterHelp.com.

Join Bloomberg in Chicago or via live stream on March 11th for the Future Investor, Finding the Opportunities. This 2025 event series will examine how companies are investing in their businesses to create efficiencies, innovating their products and services, and improving the customer experience. This series is proudly sponsored by Invesco QQQ. Register at BloombergLive.com slash Future Investor Chicago. That's BloombergLive.com slash Future Investor Chicago.