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Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg

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Speaker 1: Daybreak for Wednesday, February fifteen. Coming up today, inflation in

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Speaker 1: the UK slows more than expected. FED officials push plans

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Speaker 1: for more rate hikes until prices are under control. Chairs

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Speaker 1: of Barkley slump as earnings from the bank disappointed, and

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Speaker 1: Elon must says he'll stay as Twitter CEO until the

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Speaker 1: company is more stable. And YPV is learning more about

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Speaker 1: the driver of Monday's U haul truck attack, plus the

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Speaker 1: gunman behind the mass shooting at the Buffalo supermarket will

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Speaker 1: be sentenced today. I'm Michael Barr. More ahead, I'm John

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Speaker 1: Stature and sports The Devil's one, three to two, The

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Speaker 1: Islander's lost three two big East winds for St John's

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Speaker 1: and Seaton Hall. That's our straight ahead on Bloomberg day Break,

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Speaker 1: The business news you need disturn your day, and just

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Speaker 1: one fifteen minute podcast each pointing on Apple, Spotify, the

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Speaker 1: Bloomberg Business Appen everywhere you get your podcasts. Good morning,

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 1: stories we're following today. We begin with inflation and interest

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Speaker 1: rates in focus around the world. Let's start in Europe,

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Speaker 1: where data this morning show UK inflation slowed more than expected.

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Speaker 1: We go live to London and get the latest with

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Speaker 1: Bloomberg's You in parts. Good morning, Good morning, Nathan and Karen.

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Speaker 1: UK consumer prices rose ten point one percent in the

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Speaker 1: year to January, down from the ten and a half

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Speaker 1: percent pace in the previous month. It's the third month

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Speaker 1: of declining inflation, with a dip in the price of

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Speaker 1: fuel for cars, a key driver. Restaurant prices also rising

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Speaker 1: more slowly. It's welcome news for the Bank of England,

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Speaker 1: but with inflation still five times over targets and wage

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Speaker 1: growth coming in hot, the bank has plenty of work

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Speaker 1: to do in London. I'm your port book day break,

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Speaker 1: all right, you and thanks. We'll back here. In the US,

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Speaker 1: more FETE officials are raising the specter of higher rates.

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Speaker 1: We spoke exclusively with Richmond FED President Thomas Barkin. We

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Speaker 1: may or may not choose to take rates up further

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Speaker 1: if inflation continues to persist. Will have to see what happens.

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Speaker 1: If inflation settles, maybe we don't go quite as far.

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Speaker 1: But if inflation persists at levels well above our our target,

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Speaker 1: maybe We'll have to do more like Richmond FED President

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Speaker 1: Tom bark In. New York FED Chief John Williams said

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Speaker 1: controlling inflation remains the top priority. I am confident that

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Speaker 1: the gears in WOTE policy will continue to move in

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Speaker 1: away that will bring inflation down to two. We will

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Speaker 1: stay the course until our jobs. New York Fan President

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Speaker 1: John Williams spoke at the New York Bankers Association in Manhattan.

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Speaker 1: Well Karen, one of the Fed's most devish voices, is

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Speaker 1: headed to the White House. President Biden has named Vice

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Speaker 1: chir Lyle Brainerd as his top economic advisor, and the

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Speaker 1: presidents also promoting Jared Bernstein to chairman of the Council

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Speaker 1: of Economic Advisors. Moody's analytics chief economist Mark Xandy says

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Speaker 1: he is a fan of both. They have a long

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Speaker 1: history working with President Biden and the rest of the administration.

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Speaker 1: You know that's been in the layoff was you know,

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Speaker 1: in the Treasury and its FED and Jaredson was Vice

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Speaker 1: president vice president fighting back in Obama administration. Mark Xandy

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Speaker 1: and Moody spoke with our Washington correspondent Joe Matthew on

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Speaker 1: Bloomberg Sound on Catch the Show weekdays five pm Eastern

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Speaker 1: on Bloomberg Radio or listen on demand wherever you get

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Speaker 1: your podcasts. Well now, Nathan, Fed officials get another economic

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Speaker 1: report to inform their next policy decision, and this morning

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Speaker 1: we get the January reading on retail sales. And here

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Speaker 1: with the preview is Bloomberg's Michael McKee. Americans did something

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Speaker 1: different in January. They bought more cars that should help

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Speaker 1: retail sales rebound after a surprise decline in December. The

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Speaker 1: gasoline they put in those cars also cost more during

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Speaker 1: the month, and sales are denominated in dollars. Clothing stores

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Speaker 1: may also have seen higher sales as apparel prices unexpectedly

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Speaker 1: rose in January. That's not the dynamic the Fed wants

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Speaker 1: to see. Policymakers are hoping demand drops so inflation will fall.

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Speaker 1: A strong retail report would keep market concerns about higher

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Speaker 1: interest rates front and center. Michael McKee, Bloomberg Daybreak, Mike

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Speaker 1: Thanks on the earnings front watching shares of Barclays. They

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Speaker 1: are down more than eight and a half percent. The

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Speaker 1: company or the banks trading both fixed income and equities

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Speaker 1: missed estimates. Barkley's also docked its bonus pool by about

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Speaker 1: six hundred million dollars. Last year. On the flip side,

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Speaker 1: commodities giant Glencore saw its profit rise sixty percent to

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Speaker 1: a record thirty four point one billion dollars. Glen Core

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Speaker 1: will also return more than seven billion dollars to shareholders

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Speaker 1: in dividends and buy backs. Well here in the US, Nathan,

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Speaker 1: a couple of travel related companies are surging and early trading.

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Speaker 1: Airbnb gave a first quarter revenue forecast that was stronger

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Speaker 1: than expected, and online travel company trip Advisor reported fourth

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Speaker 1: quarter results that beat estimates, and both stocks are out

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Speaker 1: more than nine percent this morning. Turning to Silicon Valley,

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Speaker 1: now it looks like you're not going to see a

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Speaker 1: new CEO at Twitter until next year. Elon Musk talked

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Speaker 1: about the succession plan at the World Government Summit in Dubai.

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Speaker 1: I think I need to stabilize the organization and just

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Speaker 1: make sure it's in finacially healthy place and that the

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Speaker 1: park road map is clearly laid out. So I don't know,

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Speaker 1: I'm guessing probably towards the end of this year, which

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Speaker 1: should would be good timing to find someone else's around

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Speaker 1: the company, because I think it should be in a

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Speaker 1: stable position around you know at the end of this year. Meantime,

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Speaker 1: Musk is reportedly taking steps to boost his tweets. We

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Speaker 1: get the latest Live with Bloomberg, Steve Rappaport, Steve, good morning,

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Speaker 1: Good morning, Karen, and Nathan Elon. Musk was said to

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Speaker 1: be incensed when his Super Bowl tweet generated a mere

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Speaker 1: nine million impressions, whereas a similar post from President Biden

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Speaker 1: was viewed more than twenty nine million times. The tech

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Speaker 1: news website platform Or reports Musk ordered his team to

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Speaker 1: alter the social network's algorithm to prioritize his posts. Twitter

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Speaker 1: users on Monday can played their feeds were flooded with

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Speaker 1: Musk's musings. The CEO later tweeted, stay tuned while we

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Speaker 1: make adjustments to the algorithm. That last word in quotes

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Speaker 1: live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,

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Speaker 1: thanks moves by Warren Buffett to tell you about this morning.

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Speaker 1: Berkshire Hathaway increased the size of its bets on Apple,

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Speaker 1: Paramount Global, and Louisiana Pacific in the fourth quarter. At

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Speaker 1: the same time, Buffett Slash just holding of Taiwan Semiconductor

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Speaker 1: manufacturing just months after disclosing a major steak, Taiwan Semiconductor

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Speaker 1: is down almost four and from one billionaire to another.

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Speaker 1: Ray Dalio is speaking out about US China relations. The

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Speaker 1: founder of Bridgewater Associate says China is coming out on

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Speaker 1: top in the trade war with the US, but he

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Speaker 1: told the conference in Dubai this standoff between the world's

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Speaker 1: two biggest economies will likely not escalate into military conflict.

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Speaker 1: Straight ahead, your latest local headlines, plus a check of sports.

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Speaker 1: And this is Bloomberg. It is forty seven degrees in

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Speaker 1: Central Park. It's gonna be partly sunny, breezy, and quite

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Speaker 1: mild today. Highs in the low sixties. Overnight, we'll get

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Speaker 1: down to around fifty. Time now to take a look

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Speaker 1: at some of the other stories making news in New

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Speaker 1: York and around the world with Bloomberg's Michael bar Good morning, Michael,

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Speaker 1: Good morning, Nathan. Police in New York City are revealing

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Speaker 1: new details into a U haul driver's frame of mind

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Speaker 1: after veering onto sidewalks and ramming and the bicyclists and

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Speaker 1: moped riders and a Bay Ridge, Brooklyn neighborhood Monday. Police

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Speaker 1: say the driver, sixty two year Old Wings Or hit

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Speaker 1: nine people, killing one in my p D Chief of

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Speaker 1: Detectives James Essek He states, when he's driving his van,

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Speaker 1: he sees an invisible object come towards the car and

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Speaker 1: at that point he says, I've had enough and he

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Speaker 1: goes on his rampage. Chief Essex says Or has been

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Speaker 1: charged with murder and attempted murder. Schools in Ewing Township,

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Speaker 1: New Jersey, were closed yesterday out of caution after police

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Speaker 1: say there was a connection to the gunman who killed

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Speaker 1: three people and wounded five others on the Michigan State

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Speaker 1: University campus on Monday. Police say they found a note

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Speaker 1: on Anthony McCray threatening Ewing schools. According to authorities, McCrae

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Speaker 1: had ties to the Ewing area and apparently had an

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Speaker 1: old issue with the school district. McCray also listed to

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Speaker 1: other additional locations for an attack, including Franklin Park, New Jersey. Meanwhile,

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Speaker 1: a vigible be held tonight on Michigan State's East Lands

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Speaker 1: and campus for the victims of the mass shooting. This

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Speaker 1: ms U student visited the growing campus memorial this is

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Speaker 1: going to shake ms U for forever and um, it

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Speaker 1: definitely shook me. As a student. Classes won't resume an

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Speaker 1: m s U until Monday. The Light Supremacists is set

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Speaker 1: to be sentenced to life in prison today for the

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Speaker 1: main shooting depths of ten black people at a Buffalo supermarket.

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Speaker 1: Peyton Gendron, now nineteen, is scheduled to appear in Erie

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Speaker 1: County court. He pleaded guilty in November to charges including

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Speaker 1: murder and domestic terrorism of motivated by hate. After calling

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Speaker 1: municipal employees back to the office after the height of

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Speaker 1: the pandemic, New York Mayor Eric Adams appears now to

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Speaker 1: offer some sort of a compromise for city employees who

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Speaker 1: can work from home. And we say into our agencies

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Speaker 1: come up with creative ways of having flexibility. But when

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Speaker 1: you do it, how do we operate as a team.

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Speaker 1: What do we do for the p bull who can't

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Speaker 1: work from home? Mayor Adams says he wants to avoid

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Speaker 1: a two tier system where some can work from home

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Speaker 1: and others cannot, and how to help those who have

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Speaker 1: to come into work be compensated. Global News twenty four

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Speaker 1: hours a day, powered by more than twenty seven hundred

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Speaker 1: journalist and antilists, and over a hundred twenty countries on

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Speaker 1: Michael bar This is Bloomberg Nath. Thank you, Michael. It's

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Speaker 1: time for the Bloomberg Sports Update, brought to you by

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Speaker 1: try stayed out a good morning, John stash Out, good

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Speaker 1: morning night than quite a win for the Devils. Looked

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Speaker 1: to be headed to overtime in Columbus, Ryan Graves scored

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Speaker 1: with one second left. Devil's won three two. It's their

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Speaker 1: thirty five win on the road. Of the Islanders lost

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Speaker 1: three two in a shootout at home against Ottawa, and

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Speaker 1: the Rangers go for a sixth straight win tonight. They're

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Speaker 1: in Vancouver. The nixt final game before the All Star

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Speaker 1: Break is tonight in Atlanta. College of St. John's needed

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Speaker 1: double overtime. We gotta win it. De paul In Seton

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Speaker 1: Hall beat Lowly Georgetown. Also, Rutgers lost at home to

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Speaker 1: the Rascal. All NFL teams don't have a head coach.

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Speaker 1: The last to hire where Indianapolis and Arizona, and they

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Speaker 1: both hired Philadelphia assistant Shane strike In. Thirty seven years

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Speaker 1: old just coach the Eagles offense. Now he takes over

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Speaker 1: the Colts. Thirty nine year old Jonathan Gannon was the

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Speaker 1: Eagles defensive coordinator and now he will lead the Cardinals

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Speaker 1: as expected. Derek Carr, the Raiders quarterback to past nine seasons,

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Speaker 1: is now a free agent and since he was released,

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Speaker 1: he becomes eligible to sign right away. In Port St. Lucie,

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Speaker 1: Mets pitchers and catchers officially report today Manager buckshow Walter

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Speaker 1: starts his second season on the job. It all starts

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Speaker 1: on the even level playing field. Nobody cares about any

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Speaker 1: of that stuff between the Lions. Trust me, it's I'm

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Speaker 1: not better than you and are you better than the

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Speaker 1: in Let's see where are at the end of the year,

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Speaker 1: and let's get a chance to October. The last October

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Speaker 1: didn't go well for the Mets. Big change on the

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Speaker 1: Mets pitching staff. Justice Earlander in Jacob kran Our Tiger

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Speaker 1: Woods for tournament over year the Genesis at Ribby Area

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Speaker 1: in l A's gonna play tomorrow with Rory McElroy and

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Speaker 1: Justin Thomas. John stash At went Bloomberg Sports Live from

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Speaker 1: coast to coast, from New York to San Francisco, Boston

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Speaker 1: to Washington, d C. Nationwide on Sirius xamp, the Bloomberg

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Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning, I'm Nathan Hagar with inflation and focus on

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Speaker 1: both sides of the Atlantic. After the stronger than expected

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Speaker 1: inflation data we got out of the US yesterday, we

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Speaker 1: have a downside surprise in the United Kingdom with consumer

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Speaker 1: prices dropping for a third straight month to their lowest

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Speaker 1: level since September. So what could that mean for a

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Speaker 1: Bank of England that has been aggressively hiking interest rates.

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Speaker 1: Simon French is with us for more on this, Chief

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Speaker 1: economist at Pamir Gordon. Simon, it's great to speak with

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Speaker 1: you this morning. How big a surprise was it that

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Speaker 1: we saw January consumer prices in the UK dipped to

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Speaker 1: ten point one percent and that of the consensus figure.

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Speaker 1: Although ten point one is still double digits, it's pretty high, right, Yeah,

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Speaker 1: good morning, Nathan. You're absolutely right. It's important to put

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Speaker 1: a downside surprise in its context with still seeing double

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Speaker 1: digit inflation in the United Kingdom, and that is uncomfortable

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Speaker 1: for policymakers, both of the Banking Treasury. In terms of

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Speaker 1: your question on how surprising it was, we expected a

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Speaker 1: downward move, but what was really interesting looking at the

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Speaker 1: seasonally adjusted number month on month, it was up just

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Speaker 1: now point one percent. That's for the lowest monthly increase

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Speaker 1: since July one, And if we transpose that with the

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Speaker 1: monthly increasing in the United States of nor point five

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Speaker 1: percent yesterday, it looks like the UK is coming back

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Speaker 1: into the pack, albeit slowly, on what has been in

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Speaker 1: global inflation that has picked up very aggressively around the

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Speaker 1: world and is now coming down. But it's going to

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Speaker 1: come down at different rates based on geography, is based

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Speaker 1: on the degree to which energy and shelter is in

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Speaker 1: your CPI index. But this is encouraging data for the

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Speaker 1: UK economy. Is it encouraging enough that we can start

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Speaker 1: to bring the Bank of England into the conversation that's

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Speaker 1: been surrounding the Fed over the last few months about

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Speaker 1: dialing back interst rate hikes even further, even pausing interest

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Speaker 1: rate increases. That's very much a live debate. And what

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Speaker 1: this data this morning gives is those doves on the

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Speaker 1: Montre Policy Committee here in the United Kingdom additional ammunition

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Speaker 1: going into the March meeting. The market sees a basis

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Speaker 1: point increase from the Bank of England in March with

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Speaker 1: about a sev likelihood. Has that softened a little bit

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Speaker 1: this morning. Yes, I think it has nothing that's the

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Speaker 1: right interpretation. But the Bank of England, having done basis

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Speaker 1: points of hikes so fastins December, was always starting to

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Speaker 1: change its narrative to talk about a bit of a

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Speaker 1: wait and see approach, a bit of potentially a mid

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Speaker 1: cycle pause, trying to assess how much of that tightening,

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Speaker 1: particularly in the UK mortgage market for residential real estate,

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Speaker 1: is going to still play out in the years to come.

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Speaker 1: And they want to be moving to data dependency rather

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Speaker 1: than RATI or to pilot, which they've been for most

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Speaker 1: of the last top months. Interesting to talk about data dependency.

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Speaker 1: It's almost as though the Bank of England is getting

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Speaker 1: even closer to a parallel with the Federal Reserve when

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Speaker 1: it comes to the policy path. Is that what you're seeing, Yes,

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Speaker 1: it looked the Bank of England has, although it's got

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Speaker 1: a very different domestic economic backdrop, it has had to,

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Speaker 1: like a lot of central banks, perhaps with the only

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Speaker 1: really exclusion of the Bank of Japan, has had to

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Speaker 1: man mark the Federal Reserve because the Federal Reserve has

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Speaker 1: been on a path which dictates global financial conditions, and

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Speaker 1: unless the Bank of England wanted to let the pound

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Speaker 1: sterling fall out fall even further than it did in

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Speaker 1: the last twelve months. The it needed to keep pace.

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Speaker 1: So the fact that the narratives are pretty similar is

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Speaker 1: not a bug. It's a feature of the way the

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Speaker 1: central banks have dealt with this inflation research. I think

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Speaker 1: in terms of whether the same core inflationary pressures are

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Speaker 1: going to play out, that will determine visitated a lot

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Speaker 1: by the labor market dynamics. And if I can just

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Speaker 1: pull on the data point from the last twenty four

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Speaker 1: hours on the UK jobs market, they're about a hundred

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Speaker 1: thousand jobs added in January. Now the UK economy is

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Speaker 1: about a cysticize, the labor markets about the cysticize of

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Speaker 1: the US. So that's about half a million new jobs added.

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Speaker 1: That's very parallel with what we saw in the January's

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Speaker 1: payroll data in the US. So you've got very similar

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Speaker 1: labor market backdrops which suggest very similar response functions from

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Speaker 1: both Federal Reserve and the Bank. Having on the about

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Speaker 1: thirty seconds left here, Simon, But after the stronger than

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Speaker 1: expected inflation we got in the US yesterday, does that

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Speaker 1: raise the possibility that we could see the terminal rate

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Speaker 1: rise even more from this federal reserve. I think the

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Speaker 1: market's got in about right. I don't think I took

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Speaker 1: away from the data estate that the pricing of two

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Speaker 1: to three hikes pikes is massively wrong. I think we've

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Speaker 1: got still cuddle of data to travel to a lot

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Speaker 1: of assessments of core inflation, and the degree to its

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Speaker 1: shelves is doing a lot of that work. But I

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Speaker 1: think the pricing is about right in the market at

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Speaker 1: the moment. This is Bloomberg Daybreak Today, your morning brief

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Speaker 1: Heart Radio app, and on Bloomberg dot Com. I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Join us again tomorrow morning

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