Speaker 1: My from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: day Break for Thursday, February second. Coming up today, stocks
Speaker 1: extend the fed fueld rally. Now it's Europe's turn, with
Speaker 1: the ECB and Bank of England set to raise raids,
Speaker 1: met a share surge on track for their biggest game
Speaker 1: in a decade, and techernies continue with Apple and Amazon
Speaker 1: reporting today there has been an arrest in the attempted
Speaker 1: fire bombing of the New Jersey Synagogue. Plus the US
Speaker 1: says it will increase its military presence in the Philippines.
Speaker 1: I'm Michael blar More Ahead, I'm John Stashward, sports reactor
Speaker 1: to the Tom Brady retirement. The nets cut blown out
Speaker 1: in Boston seton Hall Beat. St John. That's all's trading
Speaker 1: ahead on Bloomberg day Break on Bloomberg eleven three on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x
Speaker 1: M one nine team and the round the world on
Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business App.
Speaker 1: Good morning, I'm Nathan Hagar and I'm Karin Moscow. Here
Speaker 1: are the stories we're following today. It is all about
Speaker 1: the FED this morning. Chair J Powell is vowing to
Speaker 1: keep raising rates, but it looks like markets don't believe him.
Speaker 1: Stocks are rising anyway. Instead, investors are hearing a more
Speaker 1: upbeat outlook on inflation, keying in on the central banks
Speaker 1: failure to push back on the recent rally. Michael Gabon
Speaker 1: Astead of US Economics at Bank of America's securities if
Speaker 1: they really really wanted to push back again expectations of
Speaker 1: easing and financial conditions or cuts later, or just that
Speaker 1: they wanted to kind of, you know, reassert their intent,
Speaker 1: they could have gone fifty and they didn't. Bank of
Speaker 1: America's Michael Gapon says the Fed mayhike one more time
Speaker 1: before pausing. Former Atlanta FED President Dennis Lockhart says that
Speaker 1: next policy meeting will be crucial and March will learn
Speaker 1: a lot, will learn a lot about how they actually
Speaker 1: see this play ending, meaning how they actually, when they're
Speaker 1: closer to it, see a stopping point, a whole period
Speaker 1: and an ultimately a Pivotly easy. Dennis Locker points out
Speaker 1: that j. Powell did not say the FED still has
Speaker 1: a long way to go. Right now, markets are pricing
Speaker 1: in just one more rate hike this year. Well. Interest
Speaker 1: rates are also in focus in Europe, Nathan, we have
Speaker 1: a pair of policy decisions set for this morning, and
Speaker 1: we get a preview from Bloomberg's Leanne Garens. In London,
Speaker 1: the Bank of England and European Central Bank are both
Speaker 1: forecast to raise interest rates by fifty basis points. The
Speaker 1: BAW is expected to lift their main interest rate from
Speaker 1: three point five percent to four percent. Now. This will
Speaker 1: be its tenth consecutive rise. The debate within the ECB
Speaker 1: may be more finely balanced, however. Euro Area headline inflation
Speaker 1: slowed in January by more than expected, but the core
Speaker 1: measure of prices held at an all time high. In London,
Speaker 1: I'm Leanne Gerens Bloomberg at daybreak, Thanks Lee and staying
Speaker 1: in Europe. Shares of Deutsche Bank are down two percent
Speaker 1: this morning. Fourth quarter pretext profit and revenue at the
Speaker 1: firm fell short of estimates, but chief financial officer James
Speaker 1: von Molka says he is still optimistic going forward. We're
Speaker 1: still very pleased with the performance and don't see that
Speaker 1: as any signal about three. In fact, the momentum has
Speaker 1: really continued strongly in Deutsche Banks CFO James von Molka
Speaker 1: made the comments in an interview with Bloomberg. Deutsche Banks
Speaker 1: gains and fixed income trailed Wall Street for the first
Speaker 1: time in ten quarters. Well back here in the US
Speaker 1: and Nathan Shares, a Facebook parent, Meta are surging their
Speaker 1: up almost nine percent following earnings, and we get the
Speaker 1: details live with Bloomberg. Steve rapp Abart, Steve, good morning,
Speaker 1: Good morning, Karen, and Nathan. Meta stock soaring in early
Speaker 1: trading after Mark Zuckerberg touted reforms for the platform. I
Speaker 1: just think we're in We've entered somewhat of a phase
Speaker 1: change for the company where we just grew so quickly
Speaker 1: for like the first eighteen years of the company's growth,
Speaker 1: and it's it's very hard to really crank on efficiency
Speaker 1: while you're growing that quickly, Zuckerberg telling investors. Those changes
Speaker 1: include removing some layers of middle management and the use
Speaker 1: of AI to increase productivity. Met As sales fell four
Speaker 1: percent last quarter but still beat expectations. Live from New York.
Speaker 1: I'm Steve Rappaport Bloomberg Daybreak. Steve. Thanks, it's gonna be
Speaker 1: another big day for tech earnings in the US. Today
Speaker 1: we get a preview from Bloomberg's Jeff Bellinger. Apple and
Speaker 1: Amazon dot Com are both scheduled to open their books
Speaker 1: after the market's close. Apple has been dealing with supply
Speaker 1: chain issues that may have driven iPhone revenue down and
Speaker 1: sales growth may have been muted by the strong dollar,
Speaker 1: But Bloomberg intelligence as the negative foreign exchange impact should
Speaker 1: fade as the year goes on, and lost iPhone revenue
Speaker 1: should recover in the second half. Amazon's fourth quarter sales
Speaker 1: may have risen an anemic six percent. Gains from Amazon
Speaker 1: Web services have slowed, likely offsetting some of the strength
Speaker 1: from online advertising and prime video. Analysts are expecting to
Speaker 1: hear that Amazon had its first unprofitable year since one fourteen.
Speaker 1: Jeff Budinger, Bloomberg day Break. All right, Jeff, thanks, Let's
Speaker 1: turn to India now, where shares of a donnie are
Speaker 1: down another twenty percent a day. More than a hundred
Speaker 1: billion dollars has now been wiped off. Got to mcdonnie's empire.
Speaker 1: Begin More from a Bloomberg Finance reporter Tom metcalf, I
Speaker 1: think we are probably now in meltdown territory. So they
Speaker 1: sold two point five billion dollars worth of shares on Tuesday,
Speaker 1: and then they actually canceled that share sell because the
Speaker 1: share price had fallen so much after that, you know,
Speaker 1: basically the chare sales underwater. But this, for me says
Speaker 1: so much about India, India Inc. And obviously this whole
Speaker 1: kind of massive, hugely wealthy industry's built up around the
Speaker 1: Adorni's Bloomberg's town. Metcalf says, the Donnie's bonds are now
Speaker 1: hitting distressed levels. Let's turn out to the debt debate
Speaker 1: in Washington, Karen. President Biden has held his first meeting
Speaker 1: on spending and the debt ceiling, sitting down yesterday with
Speaker 1: how Speaker Kevin McCarthy. First of all, I had a
Speaker 1: good first meeting. Um I shared my perspective with him,
Speaker 1: he shared it is and we can. We agreed to
Speaker 1: continue the conversation. Speaker McCarthy says he thinks he and
Speaker 1: the President can find common ground on the debt ceiling.
Speaker 1: Terry Haynes, founder of Pangia Policy, says there will have
Speaker 1: to be a deal at some point. I think it's
Speaker 1: very much in Speaker McCarthy's interest to come out and
Speaker 1: be conciliatory. Leave it up to the White House to
Speaker 1: continue the known negotiations. Point Panjia Policies. Terry Haynes spoke
Speaker 1: with our Washington correspondent Joe Matthew on Bloomberg Sound On.
Speaker 1: You can catch the show weekdays five pm Eastern on
Speaker 1: Bloomberg Radio, or listen anytime to the sound On podcast.
Speaker 1: It's twenty nine degrees in Central Park Love a mix
Speaker 1: of sunning clouds today in a high near forty degrees,
Speaker 1: losing the upper twenties tonight with a breeze. Now, let's
Speaker 1: take a look at some of the other stories making
Speaker 1: news in New York and around the world with Bloomberg's
Speaker 1: Michael Bark. Good morning, Michael, Good morning, Nathan. The FBI
Speaker 1: says there has been an arrest after a man was
Speaker 1: seen on video in a ski mask, lighting a Molotov
Speaker 1: cocktail and throwing it at the front door of a Bloomfield,
Speaker 1: New Jersey synagogue. Authorities identified the suspect in the temple
Speaker 1: near to meet attack as Nicholas Malandrados. The U S
Speaker 1: Attorney's Office says the twenty six year old from Clifton
Speaker 1: was charged with federal arson related charges. You will face
Speaker 1: a judge today. Mourners celebrated the life of Tyree Nichols
Speaker 1: at his funeral. The twenty nine year old died three
Speaker 1: weeks ago after video shows Memphis police beating him violently
Speaker 1: during a traffic stop. Vice President Kamala Harris sat with
Speaker 1: the family. We are here on behalf of the people
Speaker 1: of our country and our President Joe Biden Um and
Speaker 1: we are here to celebrate the life of Tyree Nichols.
Speaker 1: Vice President Harris said, nichols memory will shine a light
Speaker 1: towards justice. The US and the Philippines have announced an
Speaker 1: agreement that will give the US a larger military presence
Speaker 1: in the Philippines. Defense Secretary Lloyd Austin spoke in Manila.
Speaker 1: This is an opportunity to increase our effectiveness, increase in
Speaker 1: our operability. It is not about permanent but but it
Speaker 1: is a big deal. It's a really big deal. Secretary
Speaker 1: Austin says. The idea is to deter China's aims on
Speaker 1: Taiwan and boost the Philippines claims in the South China Sea,
Speaker 1: where China continues to increase its operations Israeli warplanes bomb
Speaker 1: parts of the Gaza Strip early today, after a bloody
Speaker 1: month of rising tensions between Palestinians and Israel. The Israeli
Speaker 1: Defense Force has said it's fighter jets struck a production
Speaker 1: site for raw chemical material production. Stick a fork in
Speaker 1: plastic forks. In New York City, Mayor Eric Adams signed
Speaker 1: a new law prohibiting restaurants and delivery services from including
Speaker 1: single use plastic utensils, napkins, and condiment packages in food
Speaker 1: delivery orders unless you ask for them. We must have
Speaker 1: all said it, you know, we ordered something to take
Speaker 1: out and we wonder why is all this plastic? You know,
Speaker 1: utensu We go home, We have utensils at home, and
Speaker 1: this was just a brilliant idea, Mayor Adams says. The
Speaker 1: new law takes effect in July. Global News powered by
Speaker 1: more than twenty seven hundred journalists and analysts in over
Speaker 1: one d twenty countries. I'm Michael Bard. This is Bloomberg, Nathan.
Speaker 1: Thanks Michael Bloomberg. Sports update brought to you by Try
Speaker 1: Stayed Out with John stash Ower Banks Nathan netson cethics
Speaker 1: in Boston. This game was decided very early Celtics jumped
Speaker 1: in front thirty five to seven. They led forty six
Speaker 1: to nineteen at the end of the first quarter. That
Speaker 1: lead grew to forty nine. Boston won by forty six
Speaker 1: nine ninety six. Nick Since that overtime win last week
Speaker 1: in Boston have lost to the Nets and Lakers. Next Tonight,
Speaker 1: host Miami Seaton Hall for the second time this season,
Speaker 1: beat St. John's eighty four seventy two. The Pirates have
Speaker 1: won six of the last seven. The Red Storm dropped
Speaker 1: to four and eight in the Big East top rank
Speaker 1: PERDU one by twenty now twenty two and one on
Speaker 1: the year. Second rank. Tennessee lost at Florida. Big free
Speaker 1: agent signing in the w NBA, Brianna Stewart was an
Speaker 1: m v P and Seattle want two championships there. She's
Speaker 1: coming to New York to play for the Liberty. Tom
Speaker 1: Brady's retirement announcement means Tampa Bay now needs a quarterback,
Speaker 1: so does Las Vegas. They've cut ties with Derek Carr.
Speaker 1: There were thoughts that Brady might go there hook up
Speaker 1: with Josh McDaniels, who he was with for many years
Speaker 1: in New England. Was also top of Brady playing for Miami.
Speaker 1: His kids live there now, but ESPN reported Brady did
Speaker 1: not have any interest in joining a new team, that
Speaker 1: it was going to be either stay with the Bucks
Speaker 1: or retire, which he is doing. A family, my friends, teammates,
Speaker 1: my competitors, I could go on forever. There's too many.
Speaker 1: UM thank you guys for allowing me to live my
Speaker 1: absolute dream. That would change I think Brady insist this retirement,
Speaker 1: unlike last year's, is for good. He's got a ten year,
Speaker 1: three hundred and seventy five million dollar deal to now
Speaker 1: analyze games for Fox. John stash Award Bloomberg Sports Live
Speaker 1: from Hoasted Coast from New York to San Francisco, Boston
Speaker 1: to Washington, d C. Nationwide on Sirius Examp, the Bloomberg
Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hagar. The morning after a decision
Speaker 1: from the Federal Reserve, the Central Bank has dialed back
Speaker 1: interest rate increases as expected, with another twenty five basis
Speaker 1: point rate hike, and Chairman J Powell says the Fed
Speaker 1: is making progress in getting prices back to target. Over
Speaker 1: the past year, we've taken forceful actions to tighten the
Speaker 1: stance of monetary policy. We've covered a lot of ground
Speaker 1: and the full effects of our rapid tightening so far
Speaker 1: are yet to be felt. Even so, we have more
Speaker 1: work to do. And now we're joined by Bloomberg opinion
Speaker 1: columnist Marcus Ashworth, and I guess that sets up the
Speaker 1: operative question, Marcus, how much more work does this FED
Speaker 1: have to do? How did you read the statement and
Speaker 1: the news conference from Chairman Powell. Well, I think and
Speaker 1: it's it's on a strong view, but that the set
Speaker 1: is probably done hiking. I mean they may do one more. Certainly,
Speaker 1: if they've done fifty, I would have been more confident
Speaker 1: they won't do anymore. It doesn't make much sense, but
Speaker 1: you know, they could do another five. But I think
Speaker 1: that the juries out on that one there will really
Speaker 1: will be data dependent. Um we've seen from some of
Speaker 1: the labor market data, particularly Jolts, that there is there
Speaker 1: is still a really tight labor market which is keeping them, um,
Speaker 1: you know, on a very much of a bias to Titan.
Speaker 1: But that's what we've shifted down to know, a bias
Speaker 1: the Titan rather than a planned definitive absolutely tiding. They
Speaker 1: know how the market works by going from seventy five
Speaker 1: down a fifty down. They know the market is expecting
Speaker 1: that they'll go to nothing as a hold path for
Speaker 1: a while. Um, it may be after the next meeting,
Speaker 1: or maybe at the next meeting, but I mean we are,
Speaker 1: we've we can see the summit, we may be even
Speaker 1: at it. So I think that's going to filter through clearly.
Speaker 1: The way Power put it, which was fascinating, was that
Speaker 1: he knows the market's running ahead, he's put it down
Speaker 1: to a different view on inflation, and he's relaxed with that.
Speaker 1: That's the body language. I think the market realizes that
Speaker 1: they are. They're not going to all of a sudden
Speaker 1: change and snap back that back that gap information expectations,
Speaker 1: and that's why the market ranny because it was It
Speaker 1: was interesting, wasn't it, Marcus to hear the chairman not
Speaker 1: really pushed back too hard against the looser financial conditions
Speaker 1: that we've seen of late. Is that the main reason
Speaker 1: why you're thinking that there's a bias tour the hike
Speaker 1: as opposed to a plan. Yeah, well we saw it
Speaker 1: from the mark of Canada. I've been thinking it for
Speaker 1: a while. I just that wasn't quite sure, how scary
Speaker 1: j Powe will be. Bear in mind he was absolutely
Speaker 1: horrifying at Jackson Hole and he you know, he's he
Speaker 1: has scared as before and so he can never be
Speaker 1: a hunter of per cent. Sure, but he he was.
Speaker 1: He was relaxed, mellow, He's going to watch and wait,
Speaker 1: see how things are coming along. So I think you know,
Speaker 1: they're just in a bias of time mood now and
Speaker 1: that's uh. You know. He also didn't push back as
Speaker 1: everyone was expecting that the fact that the markets pricing
Speaker 1: and rate cuts by the back end of this year. Um,
Speaker 1: I would have thought he would have been much much
Speaker 1: harsh on that. He wasn't, So I guess you have
Speaker 1: to view it is cautiously calmly dubbish. And I think
Speaker 1: that Southern market reaction is uh, he's not too worried
Speaker 1: about financial conditions not being as tied as he might
Speaker 1: have wanted. So a bit surprised. Um, so I would say, oh,
Speaker 1: we're all dubbish though, it's just that they really want
Speaker 1: to wait, watch and wait. Does this leave room for
Speaker 1: a surprise from what we're gonna hear today from the
Speaker 1: Bank of England and the European Central Bank it seems
Speaker 1: like the markets have priced in even more aggressive rate hikes.
Speaker 1: And what we got from the Fed yesterday, well, I mean,
Speaker 1: the the ECB needs to hike more because they were
Speaker 1: much much later to the party and obviously they had
Speaker 1: much harsher inflation. But we are definitely seeing signs of
Speaker 1: inflation turning down in Europe. So um, and the question
Speaker 1: will be, I mean, we're pretty certain that the c
Speaker 1: B are going to hike fifties, whether they talk, they
Speaker 1: are definitely going to hike f the next time. I'm
Speaker 1: not so sure they will be able to, but and
Speaker 1: the Fed has definitely made room for them. They will
Speaker 1: be very happy about how the Fed at places. It
Speaker 1: gives them a lot more room. You can see the
Speaker 1: strength of the euros. For dollars to one ten you
Speaker 1: will to slip below parity and a few months ago,
Speaker 1: so the last six months of the euro has been
Speaker 1: much much stronger. Um. That will help, I think in
Speaker 1: tening conditions in Europe. At the same time, they're about
Speaker 1: to start que set of tightening and the beginning of March,
Speaker 1: and the balance sheet for the ECB is actually collapsing
Speaker 1: quicker than the Feds. So you know, in some senses,
Speaker 1: the d CBS catching up a lot of steam. A
Speaker 1: fifty basis point hike today will now that gap to
Speaker 1: the to the the U S, which is hence by
Speaker 1: of the euro so strong. So the question is where
Speaker 1: they will need to do more after this. I don't
Speaker 1: think they will. I think they'll drop back to twenty five,
Speaker 1: but they won't be able to show any weakness and
Speaker 1: they'll be all all harsh and what have you. The
Speaker 1: Bank of England, well, we could have almost any result, Nat,
Speaker 1: and it's quite extraordinary. Bear in mind two of the
Speaker 1: Monyitment Policy Committee voted for no change last time, but
Speaker 1: the committee overall vote at the fifty basis points in Serrie,
Speaker 1: you could think that they would deflogie for a coup today.
Speaker 1: I'm sure they won't, but all sorts of possibilities could
Speaker 1: be up there. I'm expecting fifty bought for them to
Speaker 1: say this is pretty much it. However it could be
Speaker 1: twenty five it commute, we just don't know. This is
Speaker 1: Bloomberg Daybreak Today, your morning brief on the stories making
Speaker 1: news from Wall Street to Washington and beyond. Look for
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Speaker 1: Join us again tomorrow morning for all the news you
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