Speaker 1: Live from the Bloomberg Interact a Brooker's Studios. This is
Speaker 1: Bloomberg day Break for Thursday, February twenty third. Coming up today,
Speaker 1: the Fed plans more rate hikes to curb inflation. Kennedy
Speaker 1: Yellen says the global economy is in a better place
Speaker 1: today than many predicted, and videos share surge following its
Speaker 1: earnings report. And President Biden calls Russia's nuclear withdrawal a
Speaker 1: big mistake. The National Weather Service says it was indeed
Speaker 1: a tornado in New Jersey this week. Plus the NTSB
Speaker 1: releases its preliminary report today on the Ohio train derailment.
Speaker 1: Michael Barr More ahead, I'm John Stash, Aaron Sports. The
Speaker 1: Islanders beat the Jets, the Rangers play tonight, college basketball
Speaker 1: wins for Saint John's and portam. That's all straight Ahead
Speaker 1: on Bloomberg day Break, The business news you need disturn
Speaker 1: your day in just one fifteen minute podcast each pointing
Speaker 1: on Apples, Spotify, the Bloomberg Business app and everywhere you
Speaker 1: get your podcasts. Good morning, I'm Nathan Hagar and I'm
Speaker 1: kieron Moscow. Here are the stories we're following today. We
Speaker 1: begin with the latest reaction to the minutes from this
Speaker 1: month's FED meeting, officials expect more interest rate hikes will
Speaker 1: be needed to curb inflation. Still, almost all officials backed
Speaker 1: slowing the pace of the encreases. New York Fed President
Speaker 1: John william says it is critical the Bank remains committed
Speaker 1: to its two percent inflation target. Price stability is, in
Speaker 1: fact the foundation of economic prosperity. Without price stability, all
Speaker 1: of the other goals that we have, whether maximum employment
Speaker 1: or low and stable or low interest rates, can't be accomplished.
Speaker 1: So that's an absolute imperative for US. New York Fed
Speaker 1: President John william says demand for goods may keep inflation
Speaker 1: from falling as quickly as sum of expected bets on
Speaker 1: the Fed's policy rate are almost fully pricing in quarter
Speaker 1: point increases at each of the Central Bank's next three meetings, Well, Nathan,
Speaker 1: the Fed and investors will have a couple more key
Speaker 1: economic reports to analyze this morning. Revised data on fourth
Speaker 1: quarter economic growth and weekly jobless claims, and Bloomberg's Vini
Speaker 1: Deale Judais has more. In its initial tally, the government
Speaker 1: said the US economy expanded at a two point nine
Speaker 1: percent pace in a fourth quarter a tax slower than
Speaker 1: the third quarter but respectable. Nonetheless, Bloomberg Economic says today's
Speaker 1: revised data could signal weakness and trade, though the headline
Speaker 1: will remain healthy. Turning to the labor market, jobless claims
Speaker 1: of help below two hundred thousand for five weeks, running
Speaker 1: at historic lows. That's the US economy's best protection against recession.
Speaker 1: Annie del Judais Bloomberg day break, All right, Vinnie, thank you. Meantime,
Speaker 1: Treasury Secretary Janet Yellen says the economy around the world
Speaker 1: is improving. It's fair to say that the global economy
Speaker 1: isn't a bitter place today than many predicted just a
Speaker 1: few months ago. In the full many were worried about
Speaker 1: a sharp economic sludam across the world. Jellen made those
Speaker 1: comments in India, where G twenty leaders are meeting. She
Speaker 1: also says the US intends to quickly nominate a candidate
Speaker 1: to lead the World Bank. The official nominating process to
Speaker 1: replace current President David Malpass begins today. I'm back here
Speaker 1: in the US, Nathan. We're seeing further signs of weakness
Speaker 1: in one of the key sectors of the economy, the
Speaker 1: housing market. According to Real Estate brokerage Redfin. The total
Speaker 1: value of homes declined by two point three trillion dollars
Speaker 1: in the second half of twenty twenty two. That's a
Speaker 1: four point nine percent decline, the biggest drop since two
Speaker 1: thousand and eight. The median home sale price in the
Speaker 1: US was three hundred eighty three thousand dollars last month,
Speaker 1: down from a peak of four hundred thirty three thousand
Speaker 1: in May. On the earnings front, Karen's shares of Nvidia
Speaker 1: are up eight percent in early trading. The chip maker
Speaker 1: gave a bullish revenue outlook for the current quarter. We
Speaker 1: get the story from Bloomberg's Charlie Pellett. It suggests that
Speaker 1: it's push into artificial intelligence processors is helping offset weakening
Speaker 1: demand for personal computer chips. Of a company who has
Speaker 1: parlayed its dominance of graphics processors into a strong position
Speaker 1: in the growing market for AI hardware, It's chips excel
Speaker 1: at the kind of parallel processing that allows computers to
Speaker 1: make sense of large amounts of data and train software
Speaker 1: to make decisions. In New York, Charlie Bloomberg, daybreak. All right, Charlie,
Speaker 1: thank you all Attorney to geopolitics now The UN General
Speaker 1: Assembly is set to vote on a peace resolution in Ukraine,
Speaker 1: with the one year mark since Russia's invasion coming up tomorrow,
Speaker 1: Bloomberg said, Baxter has a story. The vote is expected
Speaker 1: to take place at the end of the emergency session.
Speaker 1: US Ambassador the UN, Linda Thomas Greenfield says the effort
Speaker 1: is important. We should never give up on the potential
Speaker 1: for diplomacy. Are the power of dialogue? Are the urgency
Speaker 1: of peace? She says. The atrocities cannot go on, the
Speaker 1: bombing of kindergartens and high schools and hospitals, the slaughters
Speaker 1: of innocent civilians. Greenfield says, Vladimir Putin chose the war.
Speaker 1: Now it's time to end it. In San Francisco, I'm
Speaker 1: at Baxter Bloomberg Daybreak. You added adding to the tensions,
Speaker 1: Vladimir Putin is pulling Russia out of New Start, the
Speaker 1: last nuclear treaty between his country and the US. President.
Speaker 1: Biden says that is a big mistake, but he's trying
Speaker 1: to play down concerns that it poses a threat. I've
Speaker 1: not seen anything. We've not seen anything at where there's
Speaker 1: a change in this posture and what they're doing. The
Speaker 1: idea that somehow this means they're thinking of using nuclear weapons.
Speaker 1: International content Bostick must there's no evidence of that. President
Speaker 1: Biden spoke with a VC News at the end of
Speaker 1: his trip to Eastern Europe where he bolstered NATO nearly
Speaker 1: a year into the war in Ukraine, and finally Nathan
Speaker 1: a look at the lack of gender equality in the
Speaker 1: workplace in the UK, only one in ten who run
Speaker 1: Britain's portfolios or women. Now. Veteran investor Helena Morrissey is
Speaker 1: setting her sights on tackling the lack of women in
Speaker 1: top finance jobs as part of a special report. Morrissey
Speaker 1: has been speaking to WATCH about her new Pathway program
Speaker 1: and why diversity efforts so far have failed to move
Speaker 1: the needle. I do think there's an image problem that
Speaker 1: will look and they think, oh, if my management's not
Speaker 1: for me, it'll be very isolated to be a woman.
Speaker 1: It's kind of macho environment. And I think there is
Speaker 1: still though a bit of a sort of cultural impediment
Speaker 1: as well. I think many men now in vestally in
Speaker 1: our industry really are just as frustrated as the women
Speaker 1: that we're not seeing more progress and Morrissey's program is
Speaker 1: currently working with sixty women from thirty three firms in
Speaker 1: a bid to increased gender diversity across senior positions in finance.
Speaker 1: Thirty eight degrees in New York. We are tracking that
Speaker 1: massive winter storm in the upper Midwest for US. It's
Speaker 1: going to turn partly sunny and mild today, going up
Speaker 1: to near fifty five degrees. It'll be breezy down to
Speaker 1: forty tonight. Time now to take a look at some
Speaker 1: of the other stories making news in New York and
Speaker 1: around the world with Bloomberg's Michael var Good morning, Michael,
Speaker 1: Good morning, Nathan. The National Weather Service, asimated official, it
Speaker 1: was indeed a tornado that touched down in parts of
Speaker 1: Mercer County, New Jersey Tuesday. The e F two tornado
Speaker 1: had estimated wins of up to one hundred and fifteen
Speaker 1: miles per hour and to our destructive path for almost
Speaker 1: six miles. The cleanup continues today. As you mentioned, Nathan,
Speaker 1: a massive winners storm is pummeling the central US. It
Speaker 1: has dumped record amounts of snow and canceled hundreds of flights.
Speaker 1: Storm warnings and advisories stretch across almost the entire northern
Speaker 1: US with the blizzard warnings in Minnesota and the Dakotas.
Speaker 1: In the Chicago area, the ice made for dangerous road conditions.
Speaker 1: This motorist is in Antioch Lake County. The roads kind
Speaker 1: of got a lot icier. My driveways complete ice right now.
Speaker 1: About one hundred thousand people in the Chicago area are
Speaker 1: without power. NTSB Inspectors will release its preliminary report on
Speaker 1: the Norfolk Southern train derailment today. Almost forty rail cars
Speaker 1: ran off the tracks two weeks ago in East Palestine, Ohio,
Speaker 1: creating a toxic spill. Today, Transportation Secretary Pete Budajage will
Speaker 1: visit the area. Yesterday, former President Trump was in East Palestine,
Speaker 1: telling residents that they are not forgotten. It's been weeks
Speaker 1: since Americans have been inspired. They've just watched this over
Speaker 1: the weeks. They've been inspired by your strength and your
Speaker 1: courage and how you've come together to stand up for
Speaker 1: the families in your area. Trump, also a presidential candidate,
Speaker 1: handed out make America Great Again hats to residents. The
Speaker 1: Orlando community is reeling after multiple shootings, claiming the life
Speaker 1: of a nine year old child, a young woman, and
Speaker 1: a TV station. News employee who was on the scene
Speaker 1: covering the earlier shooting. Two more victims are in critical condition.
Speaker 1: Orange County Sheriff John Minus says the suspect in all
Speaker 1: three shootings, nineteen year old Keith Melvin Moses, is in custody.
Speaker 1: At nineteen, he has a lengthy criminal history to include
Speaker 1: gun charges, aggravatedness, aggravated battery and assault with a daily weapon,
Speaker 1: burglary and grand theft charges. Sheriff Minus says that's unclear
Speaker 1: if he was targeting the news crew. A pack of
Speaker 1: headphone thieves are on the loose Manhattan. According to the NYPD,
Speaker 1: they are riding through on moopads and yanking Apple air
Speaker 1: pods Max headphones off unsuspecting pedestrians heads. They've struck more
Speaker 1: than twenty times less than a month. Global nein Who's
Speaker 1: twenty four hours a day, powered by more than twenty
Speaker 1: seven hundred journalist and analysts and over one hundred and
Speaker 1: twenty countries. I'm Michael Barr. This is Bloomberg Naked, shaking
Speaker 1: my head. Thank you, Michael time Alf for the Bloomberg
Speaker 1: Sports update brought to by Trice State out of Morning,
Speaker 1: John Stanshower and gim Morning Nathan, We're getting closer to
Speaker 1: March Madness. Final four will take place in Euston. The
Speaker 1: number one team in the nation is Euston Cougars. Last
Speaker 1: night one by thirty, they're twenty six and two. Alabama's
Speaker 1: ranked second Crimson Tide wanted South Carolina an overtime game
Speaker 1: winning hoop by their star freshman Brandon Miller. He scored
Speaker 1: forty one points. This comes just two days after police
Speaker 1: in Tuscaloosa revealed that Miller was once in possession of
Speaker 1: the gun that they say was later used in a murder.
Speaker 1: He does not face any charges acc upset BC beats
Speaker 1: six ranked Virginia by fifteen, Big East Yukon by eighteen
Speaker 1: over prov Saint John's having a rough year, but Redstorm
Speaker 1: gotta win at Georgetown seventy nine to seventy. Also locally,
Speaker 1: Fordham survived to scare at Loyola, winning by two, and
Speaker 1: the Rams go to twenty two and six on the season.
Speaker 1: Iona has won twenty games of instrudn't see if the
Speaker 1: Gaels Hall of Fame coach Rick Patino moves on to
Speaker 1: a bigger job like Saint John's or Georgetown. Reportedly Maryland,
Speaker 1: who wanted to hire Patino last year, but would have
Speaker 1: had to pay a large buyout, and there is no
Speaker 1: longer a buyout in Patino's contract. TV ratings for last
Speaker 1: Sunday's NBA All Star Game lowest ever. Denver's Michael Malone
Speaker 1: coached the game, called it the worst basketball game ever play.
Speaker 1: The NBA will return to play in some defense as
Speaker 1: it returns from the break tonight. Nickston NEETs have road
Speaker 1: games tomorrow. Rangers a couple of losses since that seven
Speaker 1: game win streak. They played tonight in Detroit. Islanders last
Speaker 1: night bate Winnipeg two to one on a Simon Holtstreet
Speaker 1: goal midway through the third period. John stash Ellard Bloomberg
Speaker 1: Sports from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg
Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning. I'm Nathan Hagar. Rates need to keep going
Speaker 1: up to get inflation back to target. That is the
Speaker 1: main takeaway from the minutes of the fed's latest policy meeting,
Speaker 1: which just how high they need to go in how quickly.
Speaker 1: That's still an open question for markets. So let's bring
Speaker 1: in Bloomberg Markets correspondent Valerie tied Tell to get some
Speaker 1: more takeaways from the latest Fed minutes. What stands out
Speaker 1: to you, Valerie, There was a few things. Notably, the
Speaker 1: discussion around the hike sized in between twenty five and
Speaker 1: fifty basis points. A few wanted fifty basis points, so
Speaker 1: that implies that Bullard and Mester probably convinced one other
Speaker 1: person with win the FOMC, to go for that, and
Speaker 1: that was really kind of the hawkish risk for the market.
Speaker 1: The other things is that there were no mention of pausing.
Speaker 1: Powell kind of hinted in his Q and A that
Speaker 1: there was, but the minutes didn't really show it. The
Speaker 1: minutes also didn't didn't state the word disinflation, which Powell
Speaker 1: used repeatedly in that Q and A and in that
Speaker 1: press conference, so that was surprising to me. The other
Speaker 1: thing was is that they focused solely on the upside
Speaker 1: risk to their inflation outlook as being key to their
Speaker 1: policy going forward. Remember, going into this meaning we had
Speaker 1: a string of softer than expected CPI prints, there was
Speaker 1: some expectation that perhaps they would discuss the downside risk
Speaker 1: to the inflation outlook and the policy that would entail
Speaker 1: from that. So another sign that data dependency continues to
Speaker 1: be the mantra at this FED. Do we have a
Speaker 1: better sense, judging from the minutes, about what they need
Speaker 1: to see in the data to get to this idea
Speaker 1: of at least slowing down or pausing rate hikes. There
Speaker 1: really wasn't any clues in terms of what it would
Speaker 1: what they would need to pause. There was really no
Speaker 1: discussion of the circumstances in which they need to see
Speaker 1: that the data going forward, though. We do have the
Speaker 1: core PC on Friday. Piece is the Fed's favored measure
Speaker 1: of inflation. It's what they use in their SEP forecast,
Speaker 1: their summary of economic projections, So keep an eye on
Speaker 1: that on Friday. And then following on Friday, we have
Speaker 1: five FED speakers due to speak. All three of the
Speaker 1: vocal hawks will hear from that's Mestered, Buller, and Waller.
Speaker 1: So it might be a fun Friday for the markets. Yeah,
Speaker 1: yet more commentary from Mester. It'll be interesting to hear
Speaker 1: from her, in particular, given that we did see that
Speaker 1: a few market prints or FED participants were talking about
Speaker 1: the idea of fifty basis points. But in terms of
Speaker 1: the PCE valerie, there's been so much focus on wage
Speaker 1: pressures feeding into inflation. Do we have any idea from
Speaker 1: the people you're speaking to about what they expect to
Speaker 1: see in that core inflation data feeds into wages. There
Speaker 1: is an expectation that the Friday's print doesn't come in hot.
Speaker 1: We've seen a lot of upgrades on the street in
Speaker 1: terms of banks upgrading their forecast. Ubs Goldman and a
Speaker 1: few others upgraded it to the core PC month on
Speaker 1: month from point four to point five, and that comes
Speaker 1: after that hot CPI and the hot PPI print. But
Speaker 1: for really for a measure of wage inflation, for wage pressures,
Speaker 1: we're going to have to look. Next week we get
Speaker 1: an updated reading on the unit labor cost. It is
Speaker 1: going to be the second and final reading of that.
Speaker 1: But note the big revisions upward and that a few
Speaker 1: months ago led to a broad market selloff, So have
Speaker 1: an eye on that one as well. It's next Thursday.
Speaker 1: Now we'll also have an eye on who's going to
Speaker 1: be making these decisions. With one of the most vocal
Speaker 1: doves on the Federal reserve, Hile Brainerd, set to depart
Speaker 1: as Vice chair this week, and now we're getting some
Speaker 1: clues on who could potentially be in line to succeed her. Yeah,
Speaker 1: there was a report out from the Wall Street Journal
Speaker 1: that discussed two candidates, both of which were economists under
Speaker 1: the Obama administration, one of which she co authored a
Speaker 1: peace in twenty nineteen that concluded that a three percent
Speaker 1: inflation target would have been better for the economy coming
Speaker 1: out of the Great Recession. So you could you could
Speaker 1: imply from this that Biden is really looking for a
Speaker 1: Dove to replace Lale Brainerd in that pivotal vice chair seat.
Speaker 1: We don't know when we expect to hear this from Biden,
Speaker 1: but we do hope it soon. We know that the
Speaker 1: Fed canvens again in a month's time, and ideally that
Speaker 1: vice chair seat would be taken by then. Although it
Speaker 1: is interesting to hear that idea of changing the inflation
Speaker 1: target when we've gotten some pretty strong rhetoric from New
Speaker 1: York Fed President John Williams, who is so influential on
Speaker 1: this Fed, that two percent needs to be the way
Speaker 1: to go. Yeah, he spoke last night and did discuss
Speaker 1: that two percent inflation target. But also Powell has really
Speaker 1: pushed back on that idea that I higher inflation target
Speaker 1: would be more suitable, kind of saying that you don't
Speaker 1: change the goal pulse in the middle of a game.
Speaker 1: Maybe there will be time to review the inflation target,
Speaker 1: but it's not going to be in this current cycle
Speaker 1: until they get inflation back to target. That's kind of
Speaker 1: been the words we have heard from Powell. I don't
Speaker 1: really see him shifting on that, but the fact that
Speaker 1: Biden would be pushing to get a dove into this seat,
Speaker 1: you know, it could change the discussion based on the
Speaker 1: timeframe at which they want to get inflation back to target.
Speaker 1: Powell has prepared us for it to be a long process,
Speaker 1: kind of implying that they're okay with inflation running hot
Speaker 1: for maybe a few months longer, if that means we
Speaker 1: don't risk a hard landing. This is Bloomberg day Break Today,
Speaker 1: your morning brief on the stories making news from Wall
Speaker 1: Street to Washington and beyond. Look for us on your
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