Donald Trump has already changed the way we think about the US economy. Now he's back in the White House, and Bloomberg's Trumponomics podcast is here to help. I'm Stephanie Flanders, head of government and economics at Bloomberg. Whatever the big question of the week is, we'll have something interesting to tell you about it in a lively conversation with the reporters and analysts closest to the action. Listen to new episodes every Wednesday and follow Trumponomics on Apple Podcasts, Spotify, or wherever you listen.
Bloomberg Audio Studios. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, it is a big day as we await MAG 7 earnings and this afternoon's Fed decision, but we begin in Washington, where President Trump has been shaking up the federal government on a number of levels.
Let's start with the latest development. The president is offering buyouts to federal workers who don't want to comply with his demands to return to the office full-time. A memo titled Fork in the Road says the payments will run through September 30th as long as the employees decide to resign by February 6th. Democratic Senator Tim Kaine isn't buying the president's offer. He's tricked hundreds of people with that offer. If you accept that offer in resign he'll stiff you just like he stiffed the contractors.
He doesn't have any authority to do this. Do not be fooled by this guy. Democrat Tim Cain spoke on the Senate floor last night. The memo from the office of personal management says the Trump administration is seeking a more streamlined and flexible workforce.
Well, Nathan, the buyout offer comes after a surprise move by the president to block trillions of dollars in government spending, only to have it blocked by a federal judge. On Monday night, the White House ordered agencies to pause all federal assistance to make sure it aligns with President Trump's agenda. The move led many offices across the country to question whether it would affect medical research, anti-poverty programs, state and local aid. White House Deputy Chief of Staff Stephen Miller says the review process would only last 90 days.
It's a review process to say that there's for discretionary spending that's not directed by Congress or required by law. So this would be, for example, something like a contract to a non-governmental organization to teach critical race theory. But the confusion led the White House to issue a second memo saying things like Medicaid, Social Security, and rental assistance would be left intact. But the order is on hold for now as we hear from Bloomberg's Derek Wallbank.
A federal judge did come in and stay a lot of this order. Basically said, no, we're going to keep this going now, but I want to have some arguments come in later. So that'll be something that we'll have to watch coming up next week and beyond. There will be a lot of court action here. Bloomberg's Derek Wellbank reports that memo gets into a thorny constitutional issue, whether the president has authority to halt spending that Congress has already approved.
And staying in Washington, Karen, Robert F. Kennedy Jr. is facing confirmation hearings today as he aims to become the next health and human services secretary. Bloomberg's Amy Morris has a preview from Washington. In prepared testimony for the Senate committee, seen by Bloomberg News, Kennedy says he's neither anti vaccine nor anti industry, and he says all of his children are vaccinated. Back in 2023, though, he linked vaccines to autism, something scientists dispute. Do you believe that autism does come from vaccines?
But today, he says he believes vaccines should be left up to the parent, not mandated. His cousin, Caroline Kennedy, has a plea for senators, something her son posted on X. I urge the Senate to reject his nomination. RFK Jr. also changed his stance on abortion after former Vice President Mike Pence opposed his nomination in Washington. Amy Morris Bloomberg radio.
All right, Amy, thank you. And to hear RFK Jr's confirmation hearing, stay with Bloomberg. We will have full coverage starting at 10 a.m. Wall Street time right here on Bloomberg Radio and on the Bloomberg podcast page on YouTube.
One Nathan President Trump has threatened to impose a 25 percent tariff on Canadian goods on Saturday, February 1. Christia Freeland, who is running to succeed Prime Minister Justin Trudeau, is urging the government not to wait to respond. Bloomberg's David Gurus and Toronto for an exclusive sit-down with Freeland.
Christie of Freeland sent shockwaves through Canada when she stepped down as Prime Minister Trudeau's deputy in December. In her resignation letter, she accused him of failing to prepare Canada adequately for a second Trump term. Now, Freeland is making a bid to lead Canada's Liberal Party and to be the next Prime Minister. And she says, weakness is a provocation for President Trump. And capitulation is not a negotiating strategy.
Well, I think we should start responding today. I think that we should publish, for consultation, a retaliation list. I think it should be massive, right? It should be 200 billion. That's not saying that we retaliate at 200 billion, but giving us a menu, like a smorgasbord of choices. And we need to publish it now, because when President Trump says America first,
I believe them. Freeland says Canada needs to appeal directly to Americans, so they understand what's at stake if there's a trade war. In Toronto, David Gura, Bloomberg Radio. OK, David, thank you. Turning to markets now, tech stocks saw rebound on Wall Street yesterday at KMS as we have new developments involving the Chinese artificial intelligence startup DeepSeek. For that, we're joined by Bloomberg's John Tucker. Good morning, John.
And let's start with the markets. Relative sense of calm prevailed after that pretty rough start to the week following a plunge that erased almost $600 billion in value. Monday, Nvidia rallied 8.9 percent without punishing sell-off and tech stocks spelled opportunity for dip buyers following the round investors poured $4.3 billion into the tech-heavy and VSCO QQQ ETF.
It's biggest one-day haul in three years. Now, meantime, some of the shine may have come off the Chinese AI startup DeepSeek. Sources say Microsoft and OpenAI are investigating whether the data output from OpenAI's technology was obtained in an unauthorized manner by a group linked to DeepSeek. In New York, I'm John Tucker, Bloomberg Radio.
All right, John, thank you. Well, shares of ASML are soaring. They're up almost 9% overseas. The Dutch company's booking orders were worth twice as much as analysts expected as the artificial intelligence boom fuels demand for its chip making machines. And the tech earning story is going to continue here in the US, Karen. We're going to start to get results of the magnificent seven today. Let's get a preview now from Bloomberg's Tom Busby.
Microsoft Meta and Tesla all reporting their latest quarterly results today. Revenue at Microsoft is expected to grow 11%. Its lowest increase in a year and a half. Meta expected to post a 17% spike in revenue on a boost in advertising. Investors will want to know more about its plans to spend 65 billion to grow out its AI strategy.
And Tesla expected to report weaker gross margins after slashing prices on vehicles and because of unfavorable exchange rates. But investors eager to hear a timeline for its long-awaited lower priced vehicle. Tom Busby, Bloomberg Radio. All right, Tom, thank you all. Turning to the economy, we get the Fed's first policy decision of the year and the first Donald Trump back in office. Bloomberg's Michael McKee is a preview.
Discretion is likely the better part of valor for the Fed today, with inflation sticky, and Donald Trump's fiscal policies incomplete and unclear. There's little reason for the central bankers to make a move on interest rates now. The same logic applies to Chair Jay Powell in his post meeting news conference. Expect him to try to make as little news as possible, avoiding forecasts and dodging any, what would you do if?
questions. After cutting rates, 100 basis points over the past three meetings. This one may be the quietest in some time. Michael McKee Bloomberg radio. All right, Mike. Thank you. Well, stay tuned for Bloomberg's live coverage of the Fed decision. It begins at 1 30 p.m. Wall Street time on Bloomberg radio and the Bloomberg podcast page on YouTube.
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, Michael Barr, Michael Good morning. Good morning, Karen. There were at least three ice raids in New York City on Tuesday. At least 20 people were taken into custody. Frank Tarantino, DEA special agent in charge of the New York Division says more multi agency raids are likely.
This is part of the drug trafficking community. This is exactly what we are designed to do and that is to target the most significant drug traffickers and drug trafficking organizations who are causing the most harm. And some of those happen to be criminal legal aliens. Newly sworn in DHS Secretary Kristi Gnome showed up for a major arrest in the Bronx.
President Trump will sign the Lake and Riley Act into law today. The House passed the legislation a week ago named for a 22 year old nursing student in Georgia who was murdered by an undocumented immigrant. The bill expands the federal government's mandate to detain undocumented immigrants.
Former New Jersey Senator Bob Hernandez will be sentenced alongside two co-defendants in a New York courtroom after being convicted on 16 counts of bribery, extortion, conspiracy and obstruction of justice. The trial for his wife Nadine on similar bribery and corruption charges has been postponed until March as she continues treatment
for breast cancer, Menendez's lawyers filed a motion for a new trial, which the trial judge denied. The White House confirmed what the Biden administration had said in December, those drones flying over New Jersey near President Trump's Bedminster Golf Resort were not a threat. New White House Press Secretary Caroline Levin.
The drones that were flying over New Jersey in large numbers were authorized to be flown by the FAA for research and various other reasons. Spokesperson Levin adds some of the drones also belong to hobbyists. Global News 24 hours a day and whenever you want it with Bloomberg News Now, I'm Michael Byron. This is Bloomberg. Karen. All right, Michael Barr. Thank you.
Not everybody likes talking about money. Some people find it awkward. Sometimes they even find it a little embarrassing. I do not. I like talking about money. Whether it's the boardroom, the newsroom, the trading floor, I've spent the last 30 years talking about money, writing about money and talking about it and writing about it a little bit more.
I'm Marin Zumbs at Web, and every week senior aboard a John Steppock and I answer your questions about personal finance and we discuss the best strategies for making the most of your money. Listen in for the kind of insights and explanations everyone can use to help them make better saving and investment choices for themselves and their families. My question is whether you think maxing out my comfy pension match is enough for when it comes to saving for my pension. Should I attempt to pay my Charles University fees and living costs?
My partner and I have excess savings, so should we overpay on our mortgage, or should we put the money into stocks?
Time now for the Bloomberg Sports Update brought to you by Tri State Audi. Here's John Stashauer. John Good morning. Good morning, Gary. The St. John's Red Storm and joined their best season in 40 years, completed a seven and a month of January with a second win over Georgetown. It was easy in DC 66 to 41. They held the Hoyas to 25% shooting. St. John's now 18 and three tied for first in the Big East under the direction of their Hall of Fame coach Rick Petino.
At 50 years of coaching, the one thing I've learned, the most important word, is humility. Being humble. That allows you to keep getting better. That allows you not to embrace success. That allows you to stay grounded and know who you are. We know Georgetown computers. We know Providence computers. We know everybody computers.
But we're getting better and better and better. As well as things have gone this season for St. John's, that's how poorly it's gone for Seton Hall. Pirates lost by two to Providence now one and nine in the Big East. Michigan State now nine and O and the Big 10 Spartans are out of Minnesota. Showdown in the SEC Kentucky one at Tennessee. NBA and Philly Sixers beat the Lakers. Tyree's Maxie scored 43 nicks and nuggets tonight at the Garden where the Rangers got shut out by Carolina for nothing. So two home losses after the Rangers have gotten at least a point.
in 10 straight games. They are again now on the outside looking in for a playoff spot as are the Islanders, but they had a big third period at UBS scoring four times to beat Colorado five to two. Bruins lost in Buffalo seven to two capitals, one in Calgary three to one. Spring training begins in a couple of weeks and Peter Lanzo still without a team a report from the Mets network. SNY that he and his agent Scott for us are willing to go perhaps well into spring training before signing. John Stesha with Bloomberg Sports.
Coast to Coast on Bloomberg Radio nationwide on SiriusXM 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 bid to shake up Washington ascending shockwaves across the country. And the latest move is a buyout offer to federal workers who don't want to return to the office full time. Democratic Senator Tim Kaine is sounding a warning.
You will regret it just like these contractors regretted it who did work for this guy when he was a businessman.
And the buyout offer comes after the White House moved to block trillions of dollars in government spending, only to have a judge put that order on hold. Less than 24 hours later, joining us now, Bloomberg's Kevin White Law, it has been a pretty head-spinning couple of hours in the nation's capital and beyond Kevin. Good morning. Let's start with this new buyout offer just because it is the newest thing, something we've seen in the private sector, but is it going to fly in the federal government?
Well, obviously Donald Trump is in the business. He thinks of trying to shrink the government. Some would say break the government. Some would say fix the government. But one way or the other, he is looking to essentially get rid of a number of
federal employees that he sees are an obstacle to enacting his agenda. Federal government workers obviously say that they're applying the law. They work for part. They work. They're nonpartisan. They work for whichever party. That's the the entire ethos of the federal bureaucracy. But that's definitely not the way Donald Trump sees it. So the buyout offer is very much an effort to just say, well,
Here's one way out. And obviously, I think Donald Trump knows that some of the broader efforts, which we expect to include reclassifying a bunch of federal employees, longtime civil service employees as political into political roles so that they can be fired, that's going to get challenged in court. So I do think this is sort of an effort to say, well, if people want an easy way out, here it is. And I think it's not
It's not coincidental that this sort of comes amid all of these orders to free spending and the broader tumult over what the role of the federal government is going to be in the coming years.
Well, obviously, it was stopped almost immediately, but it has still, you know, at least temporarily by a judge, but it will still cause all kinds of confusion over what the role is of the federal government when it comes to this, because obviously, normally, spending is Congress's purview. And so I do think it does raise some very fundamental questions over exactly how and where and when.
the money is authorized and spent. So it's not clear that this Republican Congress is going to want to take on the president over this issue, but normally it is something that that prerogative that Congress has, that lawmakers have defended very, very seriously. In the meantime, it's caused all kinds of confusion and disrupted payments to vendors and to nonprofits and to, you know,
everything from school lunches to other aid programs. So I do think it is going to raise some fundamental questions down the line over how reliable any of these federal programs are for the people and the companies, the contractors, and the workers that have all come to depend on.
Just 30 seconds left, Kevin. But did we get any clarity on what programs were covered under this order before it was temporarily halted? I mean, they had to put out two memos to try to provide some guidance. Right. It does seem that the first one was written so broadly that it stopped all kinds of things they probably didn't intend to that got noticed more widely than they intended. I think the problem here is the Trump administration simply underestimates just how important so many
So many of these programs are to so many people, including their own voters and their own constituents and their own party, lawmakers and their own party.
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 11 3 0 in New York, Bloomberg 99 1 in Washington, Bloomberg 929 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 and 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.
Donald Trump has already changed the way we think about the US economy. Now he's back in the White House, and Bloomberg's Trumponomics podcast is here to help. I'm Stephanie Flanders, head of government and economics at Bloomberg. Whatever the big question of the week is, we'll have something interesting to tell you about it in a lively conversation with the reporters and analysts closest to the action. Listen to new episodes every Wednesday and follow Trumponomics on Apple Podcasts, Spotify, or wherever you listen.