Episode summary
Greenland Talks Loom Over Davos; Bessent Says Fed Pick Could Come as Soon as Next Week |...
Bloomberg Daybreak: US Edition
· · 16 min · Guests: Scott Bessent
Summary
President Trump’s Davos agenda was dominated by geopolitics: his push to take control of Greenland, his outreach to NATO Secretary General Mark Rutte, and his effort to build a proposed Gaza “Board of Peace” that could include Russia, China, Turkey, and other world leaders. Treasury Secretary Scott Bessent urged European allies to stay calm, saying the dispute should end in “a very good place” for U.S. and European national security, while also dismissing talk of European Treasury sales as a false narrative.
The program also highlighted Trump’s economic message for the World Economic Forum. He plans to use Davos to pitch his affordability agenda to global elites, even as a new study says tariffs are being borne almost entirely by Americans, with only about 4% of the burden falling on foreign firms and 96% passed through to U.S. buyers.
Markets reacted nervously to the geopolitical backdrop, with Nasdaq futures down 2.2% and Japanese bond yields hitting records. On policy, Bessent said Trump could announce his choice for the next Federal Reserve chair as soon as next week, with four final contenders in the mix. The show also noted Netflix earnings ahead, GSK’s $2.2 billion deal for Wrapped Therapeutics, and Beiers’ cut to official diamond prices.
Key takeaways
- Scott Bessent said Trump’s Fed chair announcement could come “maybe as early as next week,” with four candidates still under consideration.
- A Keil Institute study cited on air said 96% of tariff costs are passed through to U.S. buyers, contradicting the White House’s claim that foreign partners pay.
- Trump is pushing Greenland and Gaza peace simultaneously at Davos, with Bessent arguing allies should “sit back” and not escalate.
- The draft Gaza board could require countries seeking a permanent seat to contribute at least $1 billion, according to Bloomberg’s report.
- Geopolitical tensions are weighing on risk assets, with Nasdaq futures down 2.2% and Japanese bond yields at records.
Notable quotes
“Sit back. They uh relax. I am confident that the leaders will not escalate and that this will work out in a manner that ends up in a very good place”
“We have four fantastic candidates. It will be up to the president and I would imagine that he will have an announcement maybe as early as next week”
“this study finds that only about 4% of the tariff burden is shouldered by foreign firms with a near complete pass through of 96% to US buyers”
“the world order has changed. it is changing and this comes after Canada just went to China to feel a trade deal uh with that nation”
“I think I have a lot of messages for Davos, but the primary message is how well the United States is doing”
How the episode opens
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 from the World Economic Forum in Davos, Switzerland. President Trump's push to take control of Greenland is already the talk of the annual gathering of global elites. The president says he has agreed to a meeting on the issue after speaking with NATO Secretary General Mark Rot.
We'll be talking about it with the various people. We've had we've had tremendous success and we've you know I've done more for NATO than anybody else. The — President spoke to reporters in Miami. Later he posted a screenshot on social media of a text message he received says he received from the NATO secretary general saying that he was committed to finding a way forward on Greenland. Earlier, President Trump linked his claims to the Danish territory to not receiving the Nobel Peace Prize in a letter to Norway's prime minister. The Norwegian government does not decide the Nobel winner.
Well, Nathan, Treasury Secretary Scott Bessant is urging European allies to remain calm over President Trump's Greenland claims. He spoke this morning from the sidelines of the World Economic Forum. — Sit back. They uh relax. I am confident that the leaders will not escalate and that this will work out in a manner that ends up in a very good place for all the for na for national security for the US and for Europe.
Secretary Bessant is comparing the uproar to the political blowback over President Trump's tariff announcements last April. French President Emanuel Maccron has talked about unleashing the European Union's toughest trade tools in response to the Greenland threats. Though German Chancellor Frederick Mertz has batted that down.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- tariffs
- fed chair selection
- gaza ceasefire plan
- greenland diplomacy
- davos negotiations
Companies and tickers mentioned
- BLK
- DJT
- BlackRock Inc.
- Truth Social
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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