Trump: Greenland Framework, Stocks Recover Half of Tuesday's Losses, More

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What is the main topic discussed in this episode?

Amy Morris 0:00

News when you want it with Bloomberg News Now. I'm Amy Morris. President Trump says he will refrain from imposing tariffs on goods from European nations that oppose his effort to take possession of Greenland, adding that he's reached a framework of a future deal with NATO Secretary General Mark Rutte.

What did President Trump say about a Greenland framework and why does he claim Greenland is strategic?

Amy Morris 0:17

Trump says he wants Greenland for his so-called Golden Dome missile defense system.

Donald Trump 0:21

I want Greenland for security. I don't want it for anything else. We have so much rare earth. We don't know what to do with it. We don't need it for anything else. And in terms of Greenland, you know, you have to go 25 feet down through ice to get it. It's not it's not something that a lot of people are going to do or want to do. No, this is security we're talking about.

Amy Morris 0:41

Trump did not detail the parameters of the so-called framework, but he says the deal will be released soon. And stocks recovered half of yesterday's plunge after Trump called off those tariffs. We bring you the closing numbers each day here at Bloomberg. The S&P gained 79 points. NASDAQ gained 270. The Dow jumped 589 points. The 10-year Treasury yield at 4.25 percent and the two-year yield at 3.59 percent. And President Trump tells CNBC he's whittled the short list for Fed chair down to one.

Donald Trump 1:12

I'd say we're down to three, but we're down to two. And I probably can tell you we're down to maybe one in my mind.

Amy Morris 1:18

Trump says he wants his pick for Fed chair to be someone like former chair Alan Greenspan. The Supreme Court seems inclined to keep Federal Reserve Governor Lisa Cook in her job, casting doubt on President Trump's bid to wrest control of the nation's central bank. Cook's attorney, Paul Clement, argued that firing Cook would set a bad precedent.

1:36

No procedural due process before removal. No judicial review after removal. No preliminary injunction to preserve the status quo in a conception of cause so capacious that apparent misconduct or gross negligence suffices.

Amy Morris 1:50

But Solicitor General John Sauer argues the president has broad discretion in the Cook case.

1:55

A statutory language cause without further qualification is itself, in its plain language, a broad, you know, conferral of authority on the president himself.

Amy Morris 2:03

Fed Governor Cook released a statement after the hearing saying that Congress chose to insulate the Federal Reserve from political threats while still holding it accountable and that as long as she serves at the Federal Reserve, she will uphold the principle of political independence. We're learning more about Apple's plans to revamp Siri this year. The company says it will turn the digital assistant into Apple's first AI chat bot. jumping into the generative AI race dominated by OpenAI and Google. Sources tell Bloomberg the chatbot will be embedded into the iPhone, the iPad and Mac operating systems and replace the current Siri interface. In a potential policy shift, Apple and Google are discussing hosting the chatbot directly on Google servers.

Amy Morris 2:46

Jamie Dimon says President Trump's proposal to cap credit card interest rates would spell economic disaster for the U.S.

Jamie Dimon 2:53

In the worst case, you'd have to have a drastic reduction of the credit card business. I mean drastic. I mean like 10 percent. I mean like 80 percent. It would remove credit from 80 percent of Americans.

Amy Morris 3:03

Dimon says his firm will give a real analysis of the proposal to the government and that banks have argued an interest rate cap would force lenders to drastically pull back on credit they provide to consumers. National Economic Council Director Kevin Hassett says President Trump's tariff policy has helped the bottom line and that they intend to reduce the deficit more over the next year.

Kevin Hassett 3:23

In the end, the bond yield really depends on what's going on for the U.S. with the deficit. And we've reduced the deficit by about $600 billion year over year.

How did markets react after Trump called off tariffs and which major indexes recovered?

Kevin Hassett 3:31

And we expect that we'll do more next year. And we've done it with real stuff, not smoke and mirrors. For example, cutting government employment by 270,000 workers.

Amy Morris 3:40

National Economic Council Director Kevin Hassett spoke to Bloomberg Television from the World Economic Forum in Davos.