March 20, 2025: Department of Education to Dismantle, Trump Talks Minerals, More

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Episode Transcript

Speaker 1 (00:01):
News when you want it with Bloomberg News Now, I'm
Doug Prisner. We begin in Washington, where President Trump signed
an executive order to largely dismantle the Education Department. Secretary
Linda McMahon has been directed to take all necessary steps
to facilitate its closure. The aim is to transfer functions
to states and other federal agencies. Here's McMahon speaking earlier

(00:23):
on Fox News.

Speaker 2 (00:24):
But clearly he wanted to state and let Congress know
that he intends to work with them. I want Congress
to be a partner in this, and I believe they
will be because both sides of the aisle know that
what is happening to education in our country cannot be
allowed to stand because we are failing our students.

Speaker 1 (00:42):
That was Secretary of Education Linda McMahon speaking earlier on
Fox News. This plan now faces potential clashes with both
labor unions and lawmakers. This would potentially include Cole. The
aim is to make the US less reliant on foreign imports.
The executive order does tap the Defence Production Act to
provide financing, loans and other investment. Separately, Trump said the

(01:05):
US will be signing a deal very shortly on rare
earth minerals with Ukraine.

Speaker 3 (01:10):
We're also signing agreements in various locations to unlock rare
earths and minerals and lots of other things all over
the world, but in particular Ukraine. We're doing very well
with regard to Ukraine and Russia. And one of the
things we are doing is signing a deal very shortly

(01:31):
with respect to rare earths with Ukraine, which they have
a tremendous value in rare earth.

Speaker 1 (01:37):
And we appreciate that President Trump speaking there. The Pentagon
is reportedly scheduled on Friday to brief Elon Musk on
the US military's plan for any war that might break
out with China. The New York Times says the meeting
reflects the extraordinary dual role played by Musk, both the
world's wealthiest man and someone given broad authority by President Trump.

(01:59):
Now we know that Musk is the chief executive of SpaceX,
a leading supplier to the Pentagon, and Tesla, a company
with operations in China. A federal judge has temporarily blocked
the government's Efficiency team from accessing the personal information of
Americans in the Social Security Administration system. Now, this decision
could delay payments to millions of beneficiaries. The restraining order

(02:23):
will apply for fourteen days while the judge weighs whether
to grant a longer term injunction and prohibit officials at
the Social Security Administration from giving Elon Musk and others
affiliated with DOJE access to the agency system. In Israel,
Prime Minister Benjamin at Niahu's request to fire the head
of the country's domestic intelligence agency has been approved by

(02:46):
the cabinet. The decision to sak Ronenbard deepens a power
struggle focused largely on who bears the responsibility for the
Hamas attack. On October seventh, the decision was made despite
thousands of protests rallying against bars removal. We moved to
earnings news next after the bell, Nike reported results above
analyst expectations. Yes, revenue was down nine percent to eleven

(03:11):
point three billion dollars. However, that was better than the
eleven percent drop Wall Street had predicted. We got reaction
from Bloomberg analyst Punam Goyeut.

Speaker 4 (03:20):
What also stood out was a gross margin. It was
a little better, and that's also a good sign. But
you know what we're really watching for is that the
inventory number here right, because that is the reason why
sales are down so much, because they have to get
rid of all this inventory and they're discounting it. So
we still need to see that improve and it means
that four Q their fiscal four Q could still be choppy,

(03:43):
but they are moving in the right direction.

Speaker 1 (03:44):
That is Punam Goye out for Bloomberg Intelligence. Then the
trouble came later in a call with analyst when Nike
forecast digital traffic would be down double digits in fiscal
twenty twenty six. The stock right now is off more
than four percent in late US trading, all so heart
after the belt from FedEx, the company lowered its full
year profit outlook for a third consecutive quarter. The company's

(04:06):
bottom line is being squeezed by mounting economic uncertainty and
sputtering demand. We got reaction to the news on FedEx
from Leek Classcow at Bloomberg Intelligence.

Speaker 5 (04:17):
The demand picture is probably not as good as we
thought it might have been three months ago. You know,
when when you know President Trump was elected, and you know,
people thought the animal spirits will be released, and you know,
we'd have a less regulation, kind of lower tax environment,
which is obviously better for business. But fast forward today,

(04:39):
you know companies are reeling in their cap X because
they just don't know what the future holds.

Speaker 1 (04:44):
That is Bloomberg's leak. Classcow shares and FedEx were down
more than five percent in late US trading. And that
is news when you want it with Bloomberg News. Now,
I'm Doug Krisner, and this is Bloomberg