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Speaker 1: My from the Bloomberg Interactive Brooker Studios. This is Bloomberg

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Speaker 1: day Break for Thursday, February second. Coming up today, stocks

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Speaker 1: extend the fed fueld rally. Now it's Europe's turn, with

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Speaker 1: the ECB and Bank of England set to raise raids,

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Speaker 1: met a share surge on track for their biggest game

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Speaker 1: in a decade, and techernies continue with Apple and Amazon

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Speaker 1: reporting today there has been an arrest in the attempted

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Speaker 1: fire bombing of the New Jersey Synagogue. Plus the US

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Speaker 1: says it will increase its military presence in the Philippines.

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Speaker 1: I'm Michael blar More Ahead, I'm John Stashward, sports reactor

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Speaker 1: to the Tom Brady retirement. The nets cut blown out

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Speaker 1: in Boston seton Hall Beat. St John. That's all's trading

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Speaker 1: ahead on Bloomberg day Break on Bloomberg eleven three on

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Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh

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Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x

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Speaker 1: M one nine team and the round the world on

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Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business App.

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Speaker 1: Good morning, I'm Nathan Hagar and I'm Karin Moscow. Here

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Speaker 1: are the stories we're following today. It is all about

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Speaker 1: the FED this morning. Chair J Powell is vowing to

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Speaker 1: keep raising rates, but it looks like markets don't believe him.

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Speaker 1: Stocks are rising anyway. Instead, investors are hearing a more

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Speaker 1: upbeat outlook on inflation, keying in on the central banks

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Speaker 1: failure to push back on the recent rally. Michael Gabon

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Speaker 1: Astead of US Economics at Bank of America's securities if

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Speaker 1: they really really wanted to push back again expectations of

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Speaker 1: easing and financial conditions or cuts later, or just that

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Speaker 1: they wanted to kind of, you know, reassert their intent,

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Speaker 1: they could have gone fifty and they didn't. Bank of

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Speaker 1: America's Michael Gapon says the Fed mayhike one more time

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Speaker 1: before pausing. Former Atlanta FED President Dennis Lockhart says that

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Speaker 1: next policy meeting will be crucial and March will learn

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Speaker 1: a lot, will learn a lot about how they actually

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Speaker 1: see this play ending, meaning how they actually, when they're

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Speaker 1: closer to it, see a stopping point, a whole period

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Speaker 1: and an ultimately a Pivotly easy. Dennis Locker points out

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Speaker 1: that j. Powell did not say the FED still has

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Speaker 1: a long way to go. Right now, markets are pricing

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Speaker 1: in just one more rate hike this year. Well. Interest

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Speaker 1: rates are also in focus in Europe, Nathan, we have

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Speaker 1: a pair of policy decisions set for this morning, and

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Speaker 1: we get a preview from Bloomberg's Leanne Garens. In London,

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Speaker 1: the Bank of England and European Central Bank are both

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Speaker 1: forecast to raise interest rates by fifty basis points. The

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Speaker 1: BAW is expected to lift their main interest rate from

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Speaker 1: three point five percent to four percent. Now. This will

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Speaker 1: be its tenth consecutive rise. The debate within the ECB

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Speaker 1: may be more finely balanced, however. Euro Area headline inflation

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Speaker 1: slowed in January by more than expected, but the core

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Speaker 1: measure of prices held at an all time high. In London,

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Speaker 1: I'm Leanne Gerens Bloomberg at daybreak, Thanks Lee and staying

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Speaker 1: in Europe. Shares of Deutsche Bank are down two percent

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Speaker 1: this morning. Fourth quarter pretext profit and revenue at the

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Speaker 1: firm fell short of estimates, but chief financial officer James

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Speaker 1: von Molka says he is still optimistic going forward. We're

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Speaker 1: still very pleased with the performance and don't see that

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Speaker 1: as any signal about three. In fact, the momentum has

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Speaker 1: really continued strongly in Deutsche Banks CFO James von Molka

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Speaker 1: made the comments in an interview with Bloomberg. Deutsche Banks

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Speaker 1: gains and fixed income trailed Wall Street for the first

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Speaker 1: time in ten quarters. Well back here in the US

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Speaker 1: and Nathan Shares, a Facebook parent, Meta are surging their

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Speaker 1: up almost nine percent following earnings, and we get the

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Speaker 1: details live with Bloomberg. Steve rapp Abart, Steve, good morning,

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Speaker 1: Good morning, Karen, and Nathan. Meta stock soaring in early

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Speaker 1: trading after Mark Zuckerberg touted reforms for the platform. I

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Speaker 1: just think we're in We've entered somewhat of a phase

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Speaker 1: change for the company where we just grew so quickly

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Speaker 1: for like the first eighteen years of the company's growth,

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Speaker 1: and it's it's very hard to really crank on efficiency

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Speaker 1: while you're growing that quickly, Zuckerberg telling investors. Those changes

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Speaker 1: include removing some layers of middle management and the use

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Speaker 1: of AI to increase productivity. Met As sales fell four

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Speaker 1: percent last quarter but still beat expectations. Live from New York.

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Speaker 1: I'm Steve Rappaport Bloomberg Daybreak. Steve. Thanks, it's gonna be

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Speaker 1: another big day for tech earnings in the US. Today

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Speaker 1: we get a preview from Bloomberg's Jeff Bellinger. Apple and

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Speaker 1: Amazon dot Com are both scheduled to open their books

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Speaker 1: after the market's close. Apple has been dealing with supply

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Speaker 1: chain issues that may have driven iPhone revenue down and

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Speaker 1: sales growth may have been muted by the strong dollar,

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Speaker 1: But Bloomberg intelligence as the negative foreign exchange impact should

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Speaker 1: fade as the year goes on, and lost iPhone revenue

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Speaker 1: should recover in the second half. Amazon's fourth quarter sales

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Speaker 1: may have risen an anemic six percent. Gains from Amazon

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Speaker 1: Web services have slowed, likely offsetting some of the strength

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Speaker 1: from online advertising and prime video. Analysts are expecting to

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Speaker 1: hear that Amazon had its first unprofitable year since one fourteen.

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Speaker 1: Jeff Budinger, Bloomberg day Break. All right, Jeff, thanks, Let's

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Speaker 1: turn to India now, where shares of a donnie are

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Speaker 1: down another twenty percent a day. More than a hundred

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Speaker 1: billion dollars has now been wiped off. Got to mcdonnie's empire.

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Speaker 1: Begin More from a Bloomberg Finance reporter Tom metcalf, I

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Speaker 1: think we are probably now in meltdown territory. So they

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Speaker 1: sold two point five billion dollars worth of shares on Tuesday,

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Speaker 1: and then they actually canceled that share sell because the

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Speaker 1: share price had fallen so much after that, you know,

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Speaker 1: basically the chare sales underwater. But this, for me says

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Speaker 1: so much about India, India Inc. And obviously this whole

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Speaker 1: kind of massive, hugely wealthy industry's built up around the

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Speaker 1: Adorni's Bloomberg's town. Metcalf says, the Donnie's bonds are now

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Speaker 1: hitting distressed levels. Let's turn out to the debt debate

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Speaker 1: in Washington, Karen. President Biden has held his first meeting

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Speaker 1: on spending and the debt ceiling, sitting down yesterday with

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Speaker 1: how Speaker Kevin McCarthy. First of all, I had a

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Speaker 1: good first meeting. Um I shared my perspective with him,

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Speaker 1: he shared it is and we can. We agreed to

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Speaker 1: continue the conversation. Speaker McCarthy says he thinks he and

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Speaker 1: the President can find common ground on the debt ceiling.

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Speaker 1: Terry Haynes, founder of Pangia Policy, says there will have

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Speaker 1: to be a deal at some point. I think it's

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Speaker 1: very much in Speaker McCarthy's interest to come out and

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Speaker 1: be conciliatory. Leave it up to the White House to

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Speaker 1: continue the known negotiations. Point Panjia Policies. Terry Haynes spoke

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Speaker 1: with our Washington correspondent Joe Matthew on Bloomberg Sound On.

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Speaker 1: You can catch the show weekdays five pm Eastern on

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Speaker 1: Bloomberg Radio, or listen anytime to the sound On podcast.

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Speaker 1: It's twenty nine degrees in Central Park Love a mix

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Speaker 1: of sunning clouds today in a high near forty degrees,

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Speaker 1: losing the upper twenties tonight with a breeze. Now, let's

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Speaker 1: take a look at some of the other stories making

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Speaker 1: news in New York and around the world with Bloomberg's

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Speaker 1: Michael Bark. Good morning, Michael, Good morning, Nathan. The FBI

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Speaker 1: says there has been an arrest after a man was

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Speaker 1: seen on video in a ski mask, lighting a Molotov

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Speaker 1: cocktail and throwing it at the front door of a Bloomfield,

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Speaker 1: New Jersey synagogue. Authorities identified the suspect in the temple

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Speaker 1: near to meet attack as Nicholas Malandrados. The U S

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Speaker 1: Attorney's Office says the twenty six year old from Clifton

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Speaker 1: was charged with federal arson related charges. You will face

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Speaker 1: a judge today. Mourners celebrated the life of Tyree Nichols

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Speaker 1: at his funeral. The twenty nine year old died three

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Speaker 1: weeks ago after video shows Memphis police beating him violently

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Speaker 1: during a traffic stop. Vice President Kamala Harris sat with

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Speaker 1: the family. We are here on behalf of the people

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Speaker 1: of our country and our President Joe Biden Um and

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Speaker 1: we are here to celebrate the life of Tyree Nichols.

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Speaker 1: Vice President Harris said, nichols memory will shine a light

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Speaker 1: towards justice. The US and the Philippines have announced an

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Speaker 1: agreement that will give the US a larger military presence

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Speaker 1: in the Philippines. Defense Secretary Lloyd Austin spoke in Manila.

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Speaker 1: This is an opportunity to increase our effectiveness, increase in

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Speaker 1: our operability. It is not about permanent but but it

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Speaker 1: is a big deal. It's a really big deal. Secretary

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Speaker 1: Austin says. The idea is to deter China's aims on

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Speaker 1: Taiwan and boost the Philippines claims in the South China Sea,

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Speaker 1: where China continues to increase its operations Israeli warplanes bomb

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Speaker 1: parts of the Gaza Strip early today, after a bloody

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Speaker 1: month of rising tensions between Palestinians and Israel. The Israeli

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Speaker 1: Defense Force has said it's fighter jets struck a production

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Speaker 1: site for raw chemical material production. Stick a fork in

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Speaker 1: plastic forks. In New York City, Mayor Eric Adams signed

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Speaker 1: a new law prohibiting restaurants and delivery services from including

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Speaker 1: single use plastic utensils, napkins, and condiment packages in food

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Speaker 1: delivery orders unless you ask for them. We must have

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Speaker 1: all said it, you know, we ordered something to take

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Speaker 1: out and we wonder why is all this plastic? You know,

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Speaker 1: utensu We go home, We have utensils at home, and

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Speaker 1: this was just a brilliant idea, Mayor Adams says. The

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Speaker 1: new law takes effect in July. Global News powered by

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Speaker 1: more than twenty seven hundred journalists and analysts in over

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Speaker 1: one d twenty countries. I'm Michael Bard. This is Bloomberg, Nathan.

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Speaker 1: Thanks Michael Bloomberg. Sports update brought to you by Try

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Speaker 1: Stayed Out with John stash Ower Banks Nathan netson cethics

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Speaker 1: in Boston. This game was decided very early Celtics jumped

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Speaker 1: in front thirty five to seven. They led forty six

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Speaker 1: to nineteen at the end of the first quarter. That

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Speaker 1: lead grew to forty nine. Boston won by forty six

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Speaker 1: nine ninety six. Nick Since that overtime win last week

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Speaker 1: in Boston have lost to the Nets and Lakers. Next Tonight,

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Speaker 1: host Miami Seaton Hall for the second time this season,

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Speaker 1: beat St. John's eighty four seventy two. The Pirates have

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Speaker 1: won six of the last seven. The Red Storm dropped

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Speaker 1: to four and eight in the Big East top rank

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Speaker 1: PERDU one by twenty now twenty two and one on

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Speaker 1: the year. Second rank. Tennessee lost at Florida. Big free

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Speaker 1: agent signing in the w NBA, Brianna Stewart was an

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Speaker 1: m v P and Seattle want two championships there. She's

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Speaker 1: coming to New York to play for the Liberty. Tom

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Speaker 1: Brady's retirement announcement means Tampa Bay now needs a quarterback,

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Speaker 1: so does Las Vegas. They've cut ties with Derek Carr.

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Speaker 1: There were thoughts that Brady might go there hook up

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Speaker 1: with Josh McDaniels, who he was with for many years

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Speaker 1: in New England. Was also top of Brady playing for Miami.

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Speaker 1: His kids live there now, but ESPN reported Brady did

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Speaker 1: not have any interest in joining a new team, that

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Speaker 1: it was going to be either stay with the Bucks

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Speaker 1: or retire, which he is doing. A family, my friends, teammates,

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Speaker 1: my competitors, I could go on forever. There's too many.

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Speaker 1: UM thank you guys for allowing me to live my

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Speaker 1: absolute dream. That would change I think Brady insist this retirement,

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Speaker 1: unlike last year's, is for good. He's got a ten year,

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Speaker 1: three hundred and seventy five million dollar deal to now

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Speaker 1: analyze games for Fox. John stash Award Bloomberg Sports Live

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Speaker 1: from Hoasted Coast from New York to San Francisco, Boston

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Speaker 1: to Washington, d C. Nationwide on Sirius Examp, 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. The morning after a decision

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Speaker 1: from the Federal Reserve, the Central Bank has dialed back

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Speaker 1: interest rate increases as expected, with another twenty five basis

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Speaker 1: point rate hike, and Chairman J Powell says the Fed

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Speaker 1: is making progress in getting prices back to target. Over

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Speaker 1: the past year, we've taken forceful actions to tighten the

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Speaker 1: stance of monetary policy. We've covered a lot of ground

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Speaker 1: and the full effects of our rapid tightening so far

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Speaker 1: are yet to be felt. Even so, we have more

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Speaker 1: work to do. And now we're joined by Bloomberg opinion

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Speaker 1: columnist Marcus Ashworth, and I guess that sets up the

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Speaker 1: operative question, Marcus, how much more work does this FED

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Speaker 1: have to do? How did you read the statement and

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Speaker 1: the news conference from Chairman Powell. Well, I think and

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Speaker 1: it's it's on a strong view, but that the set

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Speaker 1: is probably done hiking. I mean they may do one more. Certainly,

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Speaker 1: if they've done fifty, I would have been more confident

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Speaker 1: they won't do anymore. It doesn't make much sense, but

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Speaker 1: you know, they could do another five. But I think

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Speaker 1: that the juries out on that one there will really

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Speaker 1: will be data dependent. Um we've seen from some of

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Speaker 1: the labor market data, particularly Jolts, that there is there

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Speaker 1: is still a really tight labor market which is keeping them, um,

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Speaker 1: you know, on a very much of a bias to Titan.

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Speaker 1: But that's what we've shifted down to know, a bias

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Speaker 1: the Titan rather than a planned definitive absolutely tiding. They

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Speaker 1: know how the market works by going from seventy five

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Speaker 1: down a fifty down. They know the market is expecting

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Speaker 1: that they'll go to nothing as a hold path for

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Speaker 1: a while. Um, it may be after the next meeting,

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Speaker 1: or maybe at the next meeting, but I mean we are,

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Speaker 1: we've we can see the summit, we may be even

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Speaker 1: at it. So I think that's going to filter through clearly.

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Speaker 1: The way Power put it, which was fascinating, was that

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Speaker 1: he knows the market's running ahead, he's put it down

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Speaker 1: to a different view on inflation, and he's relaxed with that.

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Speaker 1: That's the body language. I think the market realizes that

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Speaker 1: they are. They're not going to all of a sudden

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Speaker 1: change and snap back that back that gap information expectations,

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Speaker 1: and that's why the market ranny because it was It

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Speaker 1: was interesting, wasn't it, Marcus to hear the chairman not

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Speaker 1: really pushed back too hard against the looser financial conditions

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Speaker 1: that we've seen of late. Is that the main reason

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Speaker 1: why you're thinking that there's a bias tour the hike

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Speaker 1: as opposed to a plan. Yeah, well we saw it

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Speaker 1: from the mark of Canada. I've been thinking it for

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Speaker 1: a while. I just that wasn't quite sure, how scary

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Speaker 1: j Powe will be. Bear in mind he was absolutely

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Speaker 1: horrifying at Jackson Hole and he you know, he's he

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Speaker 1: has scared as before and so he can never be

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Speaker 1: a hunter of per cent. Sure, but he he was.

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Speaker 1: He was relaxed, mellow, He's going to watch and wait,

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Speaker 1: see how things are coming along. So I think you know,

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Speaker 1: they're just in a bias of time mood now and

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Speaker 1: that's uh. You know. He also didn't push back as

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Speaker 1: everyone was expecting that the fact that the markets pricing

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Speaker 1: and rate cuts by the back end of this year. Um,

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Speaker 1: I would have thought he would have been much much

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Speaker 1: harsh on that. He wasn't, So I guess you have

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Speaker 1: to view it is cautiously calmly dubbish. And I think

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Speaker 1: that Southern market reaction is uh, he's not too worried

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Speaker 1: about financial conditions not being as tied as he might

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Speaker 1: have wanted. So a bit surprised. Um, so I would say, oh,

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Speaker 1: we're all dubbish though, it's just that they really want

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Speaker 1: to wait, watch and wait. Does this leave room for

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Speaker 1: a surprise from what we're gonna hear today from the

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Speaker 1: Bank of England and the European Central Bank it seems

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Speaker 1: like the markets have priced in even more aggressive rate hikes.

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Speaker 1: And what we got from the Fed yesterday, well, I mean,

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Speaker 1: the the ECB needs to hike more because they were

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Speaker 1: much much later to the party and obviously they had

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Speaker 1: much harsher inflation. But we are definitely seeing signs of

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Speaker 1: inflation turning down in Europe. So um, and the question

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Speaker 1: will be, I mean, we're pretty certain that the c

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Speaker 1: B are going to hike fifties, whether they talk, they

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Speaker 1: are definitely going to hike f the next time. I'm

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Speaker 1: not so sure they will be able to, but and

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Speaker 1: the Fed has definitely made room for them. They will

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Speaker 1: be very happy about how the Fed at places. It

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Speaker 1: gives them a lot more room. You can see the

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Speaker 1: strength of the euros. For dollars to one ten you

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Speaker 1: will to slip below parity and a few months ago,

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Speaker 1: so the last six months of the euro has been

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Speaker 1: much much stronger. Um. That will help, I think in

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Speaker 1: tening conditions in Europe. At the same time, they're about

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Speaker 1: to start que set of tightening and the beginning of March,

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Speaker 1: and the balance sheet for the ECB is actually collapsing

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Speaker 1: quicker than the Feds. So you know, in some senses,

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Speaker 1: the d CBS catching up a lot of steam. A

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Speaker 1: fifty basis point hike today will now that gap to

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Speaker 1: the to the the U S, which is hence by

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Speaker 1: of the euro so strong. So the question is where

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Speaker 1: they will need to do more after this. I don't

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Speaker 1: think they will. I think they'll drop back to twenty five,

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Speaker 1: but they won't be able to show any weakness and

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Speaker 1: they'll be all all harsh and what have you. The

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Speaker 1: Bank of England, well, we could have almost any result, Nat,

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Speaker 1: and it's quite extraordinary. Bear in mind two of the

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Speaker 1: Monyitment Policy Committee voted for no change last time, but

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Speaker 1: the committee overall vote at the fifty basis points in Serrie,

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Speaker 1: you could think that they would deflogie for a coup today.

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Speaker 1: I'm sure they won't, but all sorts of possibilities could

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Speaker 1: be up there. I'm expecting fifty bought for them to

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Speaker 1: say this is pretty much it. However it could be

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Speaker 1: twenty five it commute, we just don't know. This is

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