>> welcome to "bloomberg markets." tariffs threats still a factor as president trump dramatically widens the tariff war risks. at the same time, plenty of action in these markets underneath the hood. if you look at energy, we are seeing oil rise, gas going wild. some companies are reaping the benefits. s&p 500 going positive to negative all session long. we are fractionally negative right now. nasdaq fractionally negative. 10 year yield going nowhere at 455. gold $20 off of its high. bitcoin rose today.

plenty of asset classes in the headlines. let's get a headlight on the equity movers. we have natalia joining us. >> shares of -- down 40% after they filed for bankruptcy. wasn't supposed to be a huge surprise because we had headlines and reports of this potential scenario. we see a dramatic reaction in the stock price. this chart shows five-year stock price for nikola. at one point after the company went public, it jumped by almost 700%. at one moment it was trading by almost $2300. then we see a steep decline. a lot of challenges are company related and industry-specific as well. i'm looking at shares of -- fourth-quarter results were disappointing. we see the stock drop by almost

10%. for many analysts, the key question is how this company can make a turnaround. etsy is a marketplace where sellers sell handmade goods and products. people buy them on occasion like weddings. for analyst, the key is how can it be a regular part of consumer's life like amazon or other big retailers? shares are down sharply. and finally, bumble. a disappointment on earnings. down almost 30%. outlook was not impressive as well. two main issues, industry-specific. a decline of users on dating apps. there is also specific uncertainty. there is uncertainty about management, founder of its company.

we expect them to come back in march. so a lot of red on the screen among single stock movers. vonnie: absolutely. another few hours left. i want to mention this breaking news the u.s. department of transportation has confirmed the termination of the new york congestion pricing program. nine dollars below 60th street. if you wanted to get into new york city, it has been in effect for a few weeks. the dot is terminating the pilot program for two reasons. it says the scope is unprecedented and provides no toll-free options for many drivers, and second it was set at a level to raise revenue for transit rather than an amount needed to reduce congestion. the nine dollars seemingly going away. x is set to be in talks to raise money for investors that could value the company at 44 billion

dollars. that is the same price elon musk paid for the company in 20 22. for more, katie roof joins us. fidelity just downgraded their mark to market for this in december. we are a couple of months on. 70%, how can we be back up to $40 billion already? >> fidelity has its own public reporting requirements because they are a public investor. they have to give estimates of what their private holdings are worth. but that was not technically x's last private valuation. no shares transacted at that price. the last valuation is the $44 billion, so this would be the first time, the company raising any money since then. it is flat to where they were last valued at. certainly, advertisers fleeing,

users fleeing, concerns around those lines. some people are surprised. introducing new revenue streams like subscriptions. they own a significant part of x a.i., the platform elon musk is affiliated with. x, the company, their value goes up when x, the a.i. company goes up in value. one other thing to add, all of elon musk's companies, spacex, tesla. they have all been going up since the election because of elon musk's perceived ties to trump. his strong ties to trump. investors feel like that will help his investments and companies do better. vonnie: certainly the adjacency to the office does not do any

harm. it is katie roof reporting. staying with elon musk, he's been leading efforts by president trump to cut federal spending and jobs. musk spoke to fox news about his goals. >> the overall goal is to try to get $1 trillion out of the deficit. if the deficit is not under control, america will go bankrupt. this is a very important thing for people to understand. vonnie: elon musk says the cost cutting saved $55 billion in federal spending so far. but accounting method paints a smaller number. let's bring in laura davison from d.c. what is the number we have calculated? we will put this into the context of the $55 billion elon musk is taking credit for. >> doge said they saved about $55 billion for u.s. taxpayers. when you add up the contracts they list online that they say they have canceled, it only comes to about $8.6 billion.

a small fraction of the overall $55 billion. going through these contracts, it was clear there was one major clerical error. one contract listed for $8 billion that was only an $8 million contract. about $16 billion when you take that away, it is a smaller figure. it has been a key tension point as doge has gone into federal spending and started slashing spending and staff. they say it is transparent, you can read the information. but when it is riddled with errors and there is not oversight that is usually layered above federal agencies, things like watchdogs and the office of government ethics. doge operates independent of that. it raised concerns from members of congress and federal government watchers. vonnie: we have to leave it there, but thank you so much, laura davison. a programming no. tomorrow, bloomberg surveillance will interview treasury

secretary scott bessent, tomorrow morning on bloomberg surveillance. apple is using a new low-end smartphone as it aims to revive growth after a sluggish holiday season. the details next. this is bloomberg. ♪

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context changes everything. ♪ vonnie: i'm vonnie quinn. time for the stock of the hour. apple making an announcement today. iphone 16e joins is product lineup. apple intelligence have better battery life. plus more features. with those details, we are joined by mark gurman who covers apple for us. we were anticipating this launch. is there anything we were not anticipating? >> pretty much every thing we discussed yesterday. the price point came higher than most were expecting. $600. about 200 more dollars than the low google pixel. a phone this compares to. it is a few hundred dollars more expensive. samsung devices. but you're getting a lot for the price point. essentially getting an $800 phone for $600, given it has most of the features of the iphone 16.

you're really only missing the second camera on the back for the additional wide-angle lens. missing issues like magnetic charging. you mentioned ai, it is a compelling upgrade for people on lower and phones. they really abandoned the lowend with the $600 market pricing. vonnie: it might alienate those who did buy the iphone 16. trying to do this big cycle change last time around. and the start of broader move away, windows that pick up steam? >> that is a great point. this is a c1 chip. it is a modem, allowing to connect the cellular networks when you are on wi-fi to make phone calls. basically do what you want to do on the phone. they spend multiple billions of dollars on this. they have hired thousands to

work on this. qualcomm will probably come calling -- calling for royalties they believe apple is abusing on this. there will be comparative analysis on the performance of the chip versus qualcomm. this is really the beginning. it will launch in this phone when it goes on sale. it will launch in some ipad models over the next six to 12 months. and the c2, the second-generation version will launch with the iphone 18 line at the end of 2026. this roadmap is about a three year, for your roadmap to replace qualcomm across apple devices. >> you love to see court cases. just kidding. the u.s. pc charging, that soft people swapping over in november as i recall. they did not want to have to change charger units and so on. will it be standard at some point? >> usb c's standard because of the european union. apple never wanted to move to

it. they wanted to move to port louis or stick to the old lightning connector which they believe has more benefits. and it makes them money on royalty makers from it. they actually had to stop selling the current iphone se and iphone 14 and iphone 14 plus in europe several years ago. in europe, you cannot cell phones without usb c. they had to discontinue those. the 16e brings the price point back to the market. vonnie: i had not quite noticed that. was it a monopoly issue? >> there is a law in the european union several years ago that went into the effect at the end of last year that requires phones, cameras, laptops, a slew of gadgets in the european union to use usb c. you can ask the eu why they are doing that. i think there are pros. one unified charger for all of your devices. one cable can charge your mac,

ipad, and iphone. it was a mishmash of chargers. so the unification is a plus. there's also downsides. people needing to buy new bricks, charges. apple does not include the bricks, they say for environmental reasons. so there are some pros and cons. if you're in europe or the european union and you want a phone at a cheaper price point from apple, you are able to get this device because the c and 14 are discontinued. vonnie: thank you, mark gurman. this is bloomberg. ♪

vonnie: welcome to "bloomberg markets." new york city's new congestion

program is likely to be halted. this comes after the u.s. department of transportation announced its plan to reverse an earlier federal approval for the tolling initiative. it is a move that will likely face legal challenges. but for the moment it looks like the nine dollar charge beneath 60th street might go away. it has only been in since the beginning of january. just a few weeks of data. investors are watching closely. travel and real estate. cane international and todd boley industries are making a large bet on both worlds. a development on one of the most extensive hotel projects in the country. a 17.5 acre property. aiming to be completed before the 2028 olympics. wennberg is reporting they've secured $300 million from -- properties. sonali basak joins us with jonathan goldstein. thank you for joining. >> thank you for joining us. when you look at this

development, it is not only large. you've aged $300 million, but you have more than $5 billion plan to raise money in debt financing. >> thank you for having. let me say we are delighted to have them as our partner. they have been a leader in the experiment to real estate business coming out of vegas. great company for us to be in partnership with. in terms of the wider path, we are on a path. we are in the final stages of that path. being led by jp morgan, vici, and others. we are seeing support because it is one-of-a-kind. the beverly hills project is a beacon of luxury, of wellness, safety, security. we are really going to show the world a world leading piece of real estate. >> one thing i have a question about is what it is about los angeles? will you get it done before the olympics and what kind of

traffic are you seeing that suggests it will be successful? >> obviously, one can't minimize the difficult situation people are going through in parts of los angeles. i was at the fires in early january. desperate situation for a lot of people. hearts go out to a lot of people in that respect. in terms of what it means for los angeles, beverly hills, it is an opportunity. it will take many years for the palisades. and what we are seeing is a very strong influx of requests into our development. that is because the quality of what we are producing. secondly because beverly hills it so has been a real leader. over the very many years. the insurance industry ranks it as number one nationally in terms of fire systems and fire safety. we are building a development

that reconciles with that mantra. that is going to give people comfort in joining our community. vonnie: can i ask you about the brands you are involved, one in saudi arabia, i'm just curious as to the ultraluxury sector interviews prices, massive to some. how are occupancy rates, particularly in new york? >> since covid, we have seen a huge spike in occupancy. a change in trends. people transferring requirements for goods and experiences. we are seeing huge growth in revenue across the oman network over the last three or four years. one of the things you have to ensure, we get it with the chairman and ceo of oman, you have to focus on unique properties. oman has a collection of these around the world, which are second to none. that is why it sits on its own

in the luxury space. that is why we invited it into our beverly hills project. we are providing a unique opportunity for them in a unique location. in bangkok, a very exciting opportunity for them. there is a huge opportunity set for these brands as they grow around the world. >> a big step back for a moment. a lot of real estate sectors across the u.s. people are worried about real estate by and large at this point in time. streets are relatively high. how do you feel about the environment we are in, and risk tied to interest rates, given there is a concern the 10 year could go to 5% or higher? >> you make a great point. as a generality for real estate to do well, you need strong economies, growth in economies, and you need a stable interest rate environment of what you can price risk. those of us in the real estate

world have been watching the 10 year very closely over the course of the last six months. hovering around 4.5 percent is not so great. because if the movement was to 5%, five and a half percent, the cost of development and servicing existing facilities is going up with significant percentage. we join the president's desire to bring interest rates down over the medium term. that is good for the economy, good for business, and real estate. >> what is important, lower tenure or the stock market continuing to boom? if people feel rich, they will spend a weekend at an oman property? >> that is right in terms of demand. but growth in this economy, investment in real estate, the interest rate environment is more important than the level of the stock market from week to week. >> if you see risk go meaningfully higher, what does it mean in terms of new real estate projects? you are in the final stages of

this, more than $5 billion fundraising here. do you like the rates you have been getting on them? >> it is important to block in your risk -- lock in your risk. you are in the medium-term knowing what your cash flow looks like. when you're starting new projects, it becomes more difficult to do so the more interest rates go higher. so it is important to ensure that you just manage yourself through that process. manage your assets against your cash. and ensure you are in the right position. thankfully we are. >> we were talking about los angeles, miami, when you look across the u.s., wrote regents -- what regions you see the most promise in? i love miami beach. we were investors before the pandemic. in 2016, 2017. later we will be reopening the delano hotel in miami beach. so i a big fan of north america. i'm a big fan of miami.

but i love all of the gateway cities i think give the solidity from an investor perspective. they have the traffic, they have the environment in which businesses can thrive. i will not put a difference between miami, los angeles, our hotel in boston, or new york city. vonnie: you love all of your children equally. what about enzo maresca -- do you love him equally? >> started the season very well. finding their feet a little bit more. bringing the team together, bringing the talent through. we are very optimistic for the rest of the season and how that plays out. vonnie: and he continues -- for the rest of the season? >> 100%. vonnie: you have it right there. thanks to sonali basak and jonathan goldstein, founder and ceo of -- something to do with blues as well-paid that does it for "bloomberg markets." "balance of power" is next.

this is bloomberg. ♪

>> from the world of politics to the world of business this is balance of power lie from washington, d.c.. joe: two budget bills moving on capitol hill and donald trump picks a favorite. senate republicans moved to debate a budget resolution one week before the house gets its turn. i'm joe matthew alongside kailey leinz in washington. from bond through social says he wants one big beautiful bill even though the senate moved the resolution last night. we can have a standoff. kailey: vice president vance will have lunch with senators. we will see if majority leader john thune decides to not go ahead with the vote this week after donald trump essentially said i want my full agenda done in one package. we have been long asking the question when the president might put his foot down as to what exactly he wants to see in strategy deployed to get his legislative agenda done. now, perhaps, he has do