>> potential u.s. tariffs tied to canada and mexico but the timeline is shifting. the original deadline is extended to march 1. equities rise. nasdaq leading the way. bonds, little change. gains in core pce, as

anticipated. the peso, the dollar losing ground against it. wait and see mode on whether trump follows through. reuters reporting the deadline extended to march 1. the drop indicates the dollar losing ground. natalia: apple is up 2%. solid result. sales in china down 11%. the ceo gave the optimistic

outlook saying it was due to inventory issues and suggesting demand was not as bad as third parties reported. services was bright. the stock on pace for 8% gain this week. one of the best performers today, ambev, the adjusted forecast for '25 was better than expected and they expect more from two drugs. analysts say there are not many big catalysts ahead. the stock will continue to beat, the commentary from jp. one of the worst performers in

the s&p, walgreens is down 10%. main reason is suspension of dividends. this is a signal cash flow generation is a concern however some say during the year, evercore is saying the suspension will save $650 million for fy25. scarlet: meaningful. thank you. the tariffs story. >> canada and mexico are our largest trading partners. it's unlikely to go well with canada. scarlet: the tariffs were set to

kick in tonight but may be pushed back. washington and ottawa. thank you for joining us. reuters is reporting we are looking at march for taylor's -- for tariffs. kailey: bloomberg has not confirmed this but this would be different from what donald trump said at the white house. he views it as an unfair trade balance as well as fenton a -- fentanyl crossing the south and northern borders. we heard about possible exemptions. the president was asked about oil.

he said that could be price dependent. the u.s. gets most crude from canada, over 70%. that would be hard to replace given venezuela. it's not clear whether this is a firm date. we could hear more in 30 minutes. caroline lovett is set to brief at the white house. she will be facing questions. scarlet: do we know of any active or backroom negotiations between washington and ottawa? what has justin trudeau said about how canada would respond? brian: there has been a steady flow of officials in washington to press their case and say we are doing everything you have

asked for on the border. canadian officials believe there is no case for tariffs. the foreign affairs minister is there, the border safety minister is there. that has been steady over january. officials inside the canadian government, i'm hearing they have to wait and see. every time president trump talks, there is whiplash. things change every time. the canadian government will not announce what they will would do until they receive the concrete plan. scarlet: they are not going to negotiate in public. last weekend, the possibility of tariffs against colombia were removed quickly thereafter. protection of the border was paramount for president trump.

what is he looking for from mexico and canada? how does the white house determine sufficient action? kailey: excellent question. donald trump said this is about the flow of people and illicit drugs over the border suggesting fentanyl is coming in. this is where china gets in. 25% against canada, mexico. he talked about 10% on all chinese goods because of the fenton no problem as well as other issues -- because of the fentanyl problem as well as other issues. it is not clear how the white house will judge progress and whether this is attempting to use leverage for negotiations to

extract concessions. donald trump hasn't been shy about the use of tariffs and it is unclear how others like scott bessent or howard lutnick, just had his confirmation hearing this week, he's not yet in the government but they will play a role. scarlet: thank you. washington and ottawa. coming up, oil moving on the headline that tariffs might be delayed to march. chevron reporting, those shares declining the most since august. this is bloomberg. ♪

scarlet: chevron disappointing because of declines in refining profit but they softened the blow by raising dividends 5%. alix steel. >> most of the canadian crude comes into the upper midwest. there are certain refiners heavily reliant. if cost goes up or supplies were redirected, those refineries get impacted. we tend to be more around the coasts. more flexibility. you can bring in by ships as

opposed to pipeline from canada. scarlet: chevron making the case it is different because it has flexibility. alix: refineries process heavy crude. we don't have that in the u.s. we need to import that. it is costly. it depends where the oil will come from. chevron operates in venezuela. if sanctions come on, does that disrupt their ability to get oil in from that country? scarlet: the refining part they don't have much control over. they can control spending. exxon boosted capex last month. chevron? alix: in the permian, it looks

less. they are spending less to get more. how much more can you do? he's like i always think we are done and we are not. he mentioned ai. it has cut down on their cycle time. from drilling to completion for a well, 9-12 months. he said he could get weeks which is insanely fast. they have kazakhstan finally online. looking at the cash flow. lng products and they want to get their hands on guyana. scarlet: he called it the gulf of america which is a sign of how aligned his thinking is. alix: exxon didn't do that.

he was like, the president said it is the gulf of america. chevron is moving from california to texas. this was mike worth's first interview live from houston. he relocated his family. many reasons to get out of california but that shows the support down there. scarlet: chevron used to be big in the east bay. president trump set to delay tariffs until march 1. oil is falling for wti and brent. trade still guessing on whether crude will be exempted from levees. rebecca provides derivative analysis for energy infrastructure strategy.

what does the positioning look like in terms of how players are thinking about how tariffs would apply? rebecca: the market is hedging. they priced in 30% chance tariffs on canada come to fruition. there is confidence with delay that they will negotiate through. the reason is it would hurt u.s. consumers by raising prices at the pump which has been a theme for donald trump throughout his campaign and presidency to avoid that and lower costs. this will not do that. those competing themes are playing out. there's a degree of confidence in the market it will not come to fruition. that does not mean the market is

not on edge. big moves. uncertainty. low conviction. we have to get used to again under trump, things can change quickly and headlines adjust. you don't know how it plays and you have to be noble. there's not a lot of confidence in crude but at the core there is a degree of underlying theme that raising energy prices is not part of what he wants to accomplish. scarlet: what about confidence in trading energy stocks? exxon mobil and chevron down. chevron boosting its dividend 5%. it is down 4% on the day. over the past 12 months, energy group has underperformed the most. rebecca: there is no margin for

error for energy companies to miss on any metric, particularly free cash flow which is what we saw today. energy investors are conditioned to you will meet your numbers, keep costs lower and always increase your dividend and buyback. if you miss on any of those, you will be punished. huge factor is how people are looking in the future for energy. where is peak oil demand? how long will they sustain these level of buybacks and dividends if they cannot meet free cash flow? there is overriding negative sentiment in the group longer-term that pressures every earnings release for them to deliver. alix said how productive they have been. doing more with less.

there is concern -- when does that run out? if they don't deliver on numbers, punishments are severe. scarlet: the base has turned flighty. a lot of tourists are in. short-term players looking for a quick trade? rebecca: we have drawn in the generalists. not energy dedicated investors, who know how delicate the group can be. the last month with this ai powered generation trade was the gateway drug into talking energy positive spin again. we have natural gas exposed names performing well and it brought in the generalist community that avoided energy

for so long because it was difficult. monday, the trade blows up. now you question is this worth trading? do i want to reallocate into energy for a reason? maybe that was reaffirmed. scarlet: always a pleasure. thank you. coming up, energy, renewables as president trump seeks to constrain the wind industry with eo's. this is bloomberg. ♪

>> we vended the moratorium on onshore wind and have signed applications in six months for

new onshore wind farms. there are industrial and investment opportunities for the private sector in these jobs of the future. scarlet: rachel reeves, u.k. chancellor of the exchequer this week. she remains bullish on green energy. the tone is different in germany with new legislation threatening wind projects. president trump moves to curb the industry in the u.s. oliver metcalf, good to speak with you. tempting to tie the wind prospects to president trump's executive orders but shell was already moving away from wind. oliver: many majors have started to roll back ambitions for the sector, particularly offshore. in the u.s., many projects faced

issues. the high interest rate environment and capital-intensive, high cost constraints have burned many developers. many early developers have taken impairments, of which shall announced yesterday. it is not just the executive orders but the wider atmosphere. scarlet: the economics are not working out companies anticipated. which companies are most exposed? oliver: the executive order, projects further along in the process are the least exposed. for u.s. offshore wind projects, some big ones are under construction. developers have committed billions. those projects are less at risk.

in the executive order, donald trump put a hiatus on new permitting and leasing for projects on federal lands/waters. offshore wind is more exposed. the majority in the u.s. have been on state or private land. projects on federal lands go through a different permitting process. scarlet: that makes sense. big oil may be retreating from wind. smaller companies remain committed. how do you see them capitalizing? oliver: big oil in some cases has offered a lot of money to acquire development rights for projects around the world.

the retreat of some majors might be seen as opportunity for incumbent players, european utilities, project development majors, who might see this pullback of oil majors as a decrease in competition when they look to expand portfolios in established markets. scarlet: how does u.s. wind compared with the rest of the world? how far behind or ahead? oliver: u.s. wind is the second-largest largest in the world behind china. the u.s. offshore wind sector is just getting started with a couple big projects under construction. it's a big market. it's developed a lot of jobs in the u.s. scarlet: fantastic. thank you.

this is the dollar versus the loonie. the red arrow is the dollar weakening against the canadian currency. ♪

announcer: politics to business,

this is balance of power. live from washington dc. joe: tariffs will take effect in a month. white house prepares to hit canada and mexico with 25% on march 1. welcome. we might learn more in a moment, standing by for a briefing. kailey: caroline lovett will probably have to answer for reuters suggesting it is march 1 that is the real deadline here even though this is different from what we heard yesterday from the president. he said tomorrow would be the day. joe: or was that the day thi