Trump Says China Deal Possible; NYC Congestion Pricing Heads to Court
17:12 Share

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 episode is brought to you by Intuit Enterprise Suite. As businesses grow, so do the challenges. Data gets scattered, tools struggle to keep up, and manual tasks pile up.

With the all-new Intuit Enterprise Suite, you can keep expanding without the headaches. Intuit Enterprise Suite is an AI-powered solution that brings all your data together in one place, managing financials, payroll, payment processing, marketing, and more. Learn more at intuit.com slash enterprise. Money Movement Services by Intuit Payments, Inc., licensed by NYDFS. 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 a possible easing of tensions between the U.S. and China. President Trump says a new trade deal with China is possible weeks after he imposed tariffs on the country's imports. Speaking to reporters on Air Force One, the president praised China's Xi Jinping.

It's possible. Well, we did a great trade deal with China. We did it great for the farmers, great for manufacturers. They had to buy $50 billion worth of our product, and we were making them buy it. The problem is that Biden didn't push them to adhere to it. President Trump didn't outline the parameters of a potential deal. Any agreement would face significant obstacles. His comments come a day after he hinted at new global tariffs on car, semiconductor, and pharmaceutical imports.

Well, Nathan, President Trump appears to be turning further against Ukrainian President Volodymyr Zelensky. First, the president did not invite Ukraine to negotiations with Russia on ending the war. Now Trump is calling Zelensky a dictator without elections after the Ukrainian leader accused him of falling for Russian propaganda. The president, as heard here on Bloomberg Radio, discussed the war at the Future Investment Initiative Summit in Miami.

Europe has failed to bring peace, and Zelensky probably wants to, maybe he wants to keep the gravy train going. I don't know what's the problem, but he hasn't been able, he's very upset that he wasn't invited. He could have come if he wanted to, but that he wasn't invited to Saudi Arabia.

He's been working for three years. There's never been even meetings or phone calls to stop this war. It's a horrible thing. President Trump's turn against Zelensky leaves Ukraine with limited options. He could keep fighting with assistance from Europe, or he could accept whatever deal Trump might make with Russian President Vladimir Putin. Well, Karen, President Trump is also defending his government cost-cutting effort at that Miami summit. He says some of the Doge savings could be passed to taxpayers. There's even...

under consideration a new concept where we give 20% of the Doge savings to American citizens and 20% goes to paying down debt because the numbers are incredible. President Trump's Doge team has claimed $55 billion in savings so far. Its website only accounts for about $8.6 billion, a 20% dividend on that total would amount to about $11 per taxpayer.

Well, Nathan, the Doge team can now add overhauling government regulations to its cost-cutting drive. President Trump has signed an executive order for all agencies to review their rules and make sure they align with the administration's policies and the Doge effort. The president also signed a directive eliminating or minimizing a dozen federal agencies, including advisory councils on community banks and credit unions, long COVID, health equity, and voluntary foreign aid.

And he signed an executive action aimed at ensuring taxpayer money does not support undocumented migrants or encourage illegal immigration. Looking at geopolitics now, Karen, Secretary of State Marco Rubio is skipping the group of 20 foreign ministers meeting in Johannesburg. The move comes after Rubio criticized host South Africa's policies as anti-American. We get more from Bloomberg's Anthony Squazen in Johannesburg.

Bloomberg's Anthony Skwazin also reports that Treasury Secretary Scott Besant is not going to be traveling to the Group of 20 finance ministers meeting in South Africa next week.

Speaking of the Treasury Secretary, we invite you to join us at 7 a.m. Wall Street time when Scott Besant speaks live with Bloomberg Surveillance. You can catch that conversation here on Bloomberg Radio and on the Bloomberg Podcast's YouTube page. Well, Nathan is now headed to the courts. Moments after the Trump administration said it plans to block New York City's congestion pricing program, the MTA filed a lawsuit in federal court.

Here's New York Governor Kathy Hochul and remarks carried live here on Bloomberg. We're in fight mode. Within seconds of us getting this notification, our MTA was prepared. We knew this could come. Filed a lawsuit within minutes. I'm very confident we'll be successful.

And I also want to say the cameras are staying on. And Governor Kathy Hochul says the toll program will continue while the lawsuit plays out. The congestion pricing plan charges a $9 toll on most vehicles entering Manhattan neighborhoods south of Central Park.

Well, congestion tolling is not the only thing remaining uncertain this morning in New York, Karen. So is Mayor Eric Adams' political future. U.S. District Judge Dale Ho has yet to rule on the Justice Department's fight to end Adams' corruption case. The judge heard arguments from Adams' lawyer and a DOJ official to determine whether to sign off on the dismissal. The move's been met with opposition from Adams' political opponents and other groups.

Adams was indicted in September on charges of bribery, fraud, soliciting illegal foreign campaign contributions. New York Governor Kathy Hochul has stated she's going to see what the judge decides before she makes any decisions on removing Adams from office.

We turn to the markets now. Nathan and stocks once again begin the day in record territory. However, the 4.5% rally in the S&P 500 this year may not last long. That's according to strategists at Citigroup. The firm sees more near-intermediate-term downside risk rather than potential for an advance from Trump's policy effects.

They believe investors are not yet pricing in policy disruptions to fundamentals. And this morning, Karen, we get earnings from the nation's largest retailer and biggest private sector employer. Bloomberg's Tom Busby has more. Walmart expected to report strong sales during the holiday quarter as consumer spending rose by more than expected in December. Key for investors, though, it's full year projections for sales and profit in light of President Trump's tariffs and the threats of even more levies on imports.

Also, interest rates that will likely remain around 7% for some time. Bloomberg Consensus calls for revenue of $180.21 billion, earnings per share of 65 cents. Tom Busby, Bloomberg Radio. All right, Tom, thank you. Another stock we're watching this morning is Palantir. Those shares, they're down 1.4% right now. The drop follows a report that Defense Secretary Pete Hegseth plans to slash military spending.

Palantir, which has seen its stock soar by almost 50 percent this year, is a major U.S. defense contractor.

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. Hamas handed to the Red Cross the remains of four Israelis it had taken hostage in October of 2023. The remains were of a young mother, her two small children, ages four and nine months, and a man in his 80s. This return comes as the shaky Gaza truce stumbles ahead. The bodies are the first to be delivered through negotiations since the war started.

President Trump may be edging closer to being able to fire Federal Reserve Chairman Jerome Powell. Let's get that story this morning from Bloomberg's Gina Cervantes.

Bloomberg Intelligence says the Federal Reserve Act requires cause for the president to oust Jerome Powell as a Federal Reserve board member. But there's a good chance that the for-cause removal restriction will be held unconstitutional for intruding on the president's executive authority. The statute says board members shall serve 14-year terms unless removed before that

for cause by the U.S. president. The Bloomberg analysis goes on to say, for cause in this context is generally thought to mean inefficiency, neglect, or malfeasance. The statute, however, articulates no such restriction for chairs or vice chairs of the Fed board. Gina Cervetti, Bloomberg Radio. Delta Airlines is offering $30,000 to every passenger aboard that regional jet.

that came to rest upside down after a crash landing at Toronto Airport earlier this week. A Delta spokesman says the payments are a good faith gesture that have no strings attached and does not affect rights.

Two people are dead after two small planes hit in midair north of Tucson, Arizona yesterday. Little appears to remain of one of the aircraft except a burned wreckage on the desert floor. One of the planes was able to land. The NTSB and FAA are on their way to the scene to investigate.

And the Vatican says this morning Pope Francis is continuing his recovery from pneumonia, eating breakfast in bed after a sixth night in the hospital. New blood tests showed a slight improvement in some inflammation for the 88-year-old pontiff. 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.

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. Another win for the Red Storm of St. John's. This one, no surprise. At DePaul, 41 points at each half and 82 to 58 victory. Qadari Richmond, 17 points, 9 rebounds, 5 assists. The St. John's goes to 14-2 in the Big East. Big game Sunday with UConn.

at the Garden where tonight it's the Knicks and the Chicago Bulls were actually 2-0 against the Knicks this season. NBA returned with a game last night. It was a make-up in L.A. from a postponement due to the fires and an upset. Charlotte beat the Lakers and LeBron James did play despite that injured ankle, but Luka Doncic

struggled shot five of 18 one of nine on three pointers had six turnovers hockey tonight in Boston US and Canada and the four Nations face-off final remember what happened between the two teams just after the opening face-off last Saturday in Montreal three fights in the first nine seconds the Rangers JT Miller was in one of them have to set the tone if you let those guys come out

David flying around to start the game, and Kinnan flying around, like, you know, that could become a contagious and infectious thing in that building. So I just think that, you know, last game was such a unique start because we knew we have to set the tone in a game and...

have our presence in the game you know it's different this time around but in the sense of intensity that won't change it sounds like that's a chuck brothers will both play despite injuries the U.S without defense but Charlie McEvoy the Long Island native hurt his shoulder and then developed an infection and his NHL team the Bruins said to be unhappy with the treatment he got at Yankee camp starting pitcher Clark Schmidt dealing with back pain they may need Marcus Stroman after all

at least to start the season. They played soccer last night in Kansas City in below zero temperatures. Enter Miami, top sporting KC in a Champions Cup game, 1-0. Lionel Messi scored the goal. They postponed the game Tuesday due to snow. A night later, they set a record, the coldest ever MLS game. John Staschauer, Bloomberg Sports, Canada.

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 Trump's relations with Ukrainian President Volodymyr Zelensky may have hit a new low. After sidelining Ukraine from talks with Russia to end the war, the president is now describing Zelensky this way at a Saudi investment conference in Miami.

A dictator without elections, Zelensky better move fast or he's not going to have a country left. Got to move, got to move fast because that war is going in the wrong direction. In the meantime, we're successfully negotiating an end to the war with Russia. President Trump spoke at the Future Investment Initiative Summit, as heard here on Bloomberg Radio. For more, we are joined by Jennifer Lawless, professor and politics chair.

at the University of Virginia. Jennifer, it's great to have you back with us on Bloomberg Daybreak. I wonder what you make of this rhetorical shift from the president when it comes to Ukraine's leader, what it means for the war in Ukraine. Good morning.

Good morning. Well, I think that Donald Trump caught a lot of people by surprise with those remarks, not only because he's been negotiating an end to the war with Russia and has not involved Ukraine at all in these negotiations, but also because of the way he's characterized Zelensky as a dictator and stated that Ukraine started the war in the first place, which is obviously not true.

It's very difficult for Republicans to back up this kind of logic. It's one thing for them to say that they no longer support aid to Ukraine. It's another to embrace an alternative reality. And he's putting them in a tricky position. Aside from the potential reaction from Republican leaders in Washington, what's the political impact potentially for the president to take this stand when it comes to Ukraine with American voters?

I'd say it's a difficult position with the voters as well for a couple of reasons. The first is that anybody who's been paying attention, and remember the initial footage coming out of Ukraine was incredibly compelling, and it demonstrated Russia just

going in there and uprooting people. They're being asked to suspend reality. They're also being asked to embrace a U.S. foreign policy that puts the United States on the opposite side of its allies. And I think Mike Pence actually came out yesterday and summed it up quite well when he said that this just flies in the face of what the American people know happened

And what they know is the right thing to do. Aside from Mike Pence, it seems like Republicans, for the most part, have been rallying behind President Trump in terms of domestic politics, support for his cabinet nominees, that sort of thing. You mentioned that this could lead to cracks for Republicans.

when it comes to support for Ukraine. But where do you see it going in terms of how Republicans could continue to react to what they are hearing from the president?

There's little to suggest that the Republicans are willing to hold the president accountable for anything he says. So my hunch is that several of them will say that they don't have this shared conception of how the war began, that they don't necessarily agree that Zelensky is a dictator, but that none of this matters because at the end of the day, this war has to end and Donald Trump is going to help end it.

And that's consistent with the way they've handled a lot of domestic policy arguments as well. They don't necessarily think RFK is the best person to run HHS. They have concerns about Pete Hegseth's background. But at the end of the day, they believe in the overall mission and they supported the president for that reason.

In the time we have left, Jennifer, I wanted to get your take as well on what we're seeing from the Doge effort, the cost cutting in Washington, D.C., and now this idea that the president's floating of a Doge dividend, 20 percent of the savings potentially, he says, could go to taxpayers. Is the president trying to make these cuts more politically palatable?

He's literally trying to buy the support of the American people with Elon Musk. And this wouldn't be the first time they did this or they tried to do this during the campaign. What I will say is that there's not much evidence that there's been actual savings. So if these dividend checks are issued, it's unclear where that money is coming from. It might be coming, for example, from the Medicaid cuts that the president said he would not support, that he just supported in the budget.

So there's a fixed amount of money and there's no evidence to suggest that it's coming from government efficiency cuts. So issuing those checks are going to be a real cost to the American people. Just 30 seconds left. It's been a difficult process for federal workers, certainly. But do you see support from the American people for this cost cutting effort?

I think they'll support the cost-cutting effort until they realize some of the implications of these other policy cuts that have happened. So in the abstract, everybody supports cutting federal workers. Everybody supports more government efficiency. It becomes trickier for those levels of support to sustain themselves when people are actually taking a hit in their day-to-day lives. And there's a lag effect there.

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. 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 episode is brought to you by Intuit Enterprise Suite. As businesses grow, so do the challenges. Data gets scattered, tools struggle to keep up, and manual tasks pile up.

With the all-new Intuit Enterprise Suite, you can keep expanding without the headaches. Intuit Enterprise Suite is an AI-powered solution that brings all your data together in one place, managing financials, payroll, payment processing, marketing, and more. Learn more at intuit.com slash enterprise. Money Movement Services by Intuit Payments, Inc., licensed by NYDFS.