Speaker 1: This is Bloomberg Daybreak here for this Wednesday, the fifteenth
Speaker 1: of February in London. Coming up today, Pivot pushed back,
Speaker 1: Traders abounded ray card bets as US inflation remains stubbornly high.
Speaker 1: The stage of Omaha doubles down on Apple. Bloomberg analyzes
Speaker 1: what Buffett has had by all that glitters isn't Goldman
Speaker 1: David Solomon says the bank expects to rein in hiring soon,
Speaker 1: A considers back dating pay Both scenario plans are returned
Speaker 1: to Brazil and a two billion dollar lottery win. Those
Speaker 1: are the stories we're looking at in today's papers. And
Speaker 1: I'm Leanne Geron's plus in search of more followers. Reports
Speaker 1: emerge that Elon Musk tweet the algorithm to boost his tweets.
Speaker 1: That's all straight ahead on Bloomberg Daybreak Europe. The business
Speaker 1: news you need to start your day in just one
Speaker 1: fifteen minute podcast on Apple, Spotify, the Bloomberg Business app,
Speaker 1: and everywhere you get your podcasts. Good morning, I'm Stephen
Speaker 1: Carroll and I'm Caroline Hick. Here all the stories that
Speaker 1: we're following today. Traders are abandoning bets of the Federal
Speaker 1: Reserve is about to cut rates, with a two year
Speaker 1: treasury yield rising above four and a half percent. The
Speaker 1: market rethink comes after data showed consumer prices rising six
Speaker 1: point four percent in January compared to a year earlier.
Speaker 1: Speaking exclusively to Bloomberg, Richmond FED President Thomas Barkin says
Speaker 1: the central bank will hike higher if needed. We may
Speaker 1: or may not choose to take rates up further if
Speaker 1: inflation continues to persist, but we'll have to see what happens.
Speaker 1: If inflation settles, maybe we don't go quite as far.
Speaker 1: But of inflation persists and levels well above our our target,
Speaker 1: may we'll have to do more. Barkin's view was echoed
Speaker 1: elsewhere by Dallas FED President Laurry Logan, who said rate
Speaker 1: rises may be needed for a longer period than previously anticipated.
Speaker 1: Now moving on, Once considered uninvestable, Chinese stocks have become
Speaker 1: a must have for edge funds again. The latest filings
Speaker 1: show that they loaded up on the shares last quarter
Speaker 1: as Beijing abandoned its COVID zero policy. Even Michael Burry,
Speaker 1: the money manager made famous by the Big Short, is
Speaker 1: going along. Meanwhile, Berkshire Hathaway has provided an update on
Speaker 1: what it's holding, and it's been bulking up its position
Speaker 1: in Apple. The story from Bloombergs Charlie Palace. In addition,
Speaker 1: Berkshire expanded its stakes in Paramount Global and Louisiana Pacific Corp.
Speaker 1: In the last three months of two according to a
Speaker 1: regulatory filing. At the same time, Berkshire trimmed as some
Speaker 1: of its financial holdings, including its stakes in US BANKORPS,
Speaker 1: Bank of New York, Melon and Ally Financial. The remainder
Speaker 1: of the company's portfolio was largely unchanged in New York.
Speaker 1: Charlie Pellett Bloomberg Daybreak Europe Now, Bloomberg has learned that
Speaker 1: the European Union is seeking to force banks to report
Speaker 1: information on frozen Russian Central Bank assets as part of
Speaker 1: its tenth package of sanctions targeting Moscow. Commission is also
Speaker 1: proposing extensive trade restrictions on goods used by Russia's military,
Speaker 1: including technology, heavy vehicles, and electronics. After a record slew
Speaker 1: of job cuts, Goldman CEO David Solomon says the bank
Speaker 1: plans to have stricter hiring policies going forward. He told
Speaker 1: her Credit Swiss conference cutting costs was a key focus
Speaker 1: for him. We are in a position to lower the
Speaker 1: head count of the firm. We've taken some action. Um,
Speaker 1: we have a much tighter hiring plan in three and
Speaker 1: then attrition rolls through and so that also helps and
Speaker 1: creates more cost leverage. I think we're very targeted and
Speaker 1: focused and we'll be in a good place. Speaking at
Speaker 1: the same conference as Solomon JP, Morgan's chief financial officer,
Speaker 1: Jeremy Barnum also struck a pessimistic tone. He warned the
Speaker 1: lender's first quarter trading revenue for this year made a
Speaker 1: kline compared to the eight point eight billion dollars it
Speaker 1: pulled in at the start of two. And finally, Elon
Speaker 1: Musk has reportedly had Twitter's engineers all to the social
Speaker 1: media's algorithm so that his own tweets get more views.
Speaker 1: According to Platformer, the billionaire owner for the social media
Speaker 1: firm was unhappy with the number of views that his
Speaker 1: Super Bowl tweet got. The change would be at odd
Speaker 1: with musque previous comments on preferential treatment before taking the
Speaker 1: company private. He said that he wanted to make the
Speaker 1: site an even playing field without bias. Okay, those are
Speaker 1: top stories this morning. Well, well, well, people doing doing
Speaker 1: making ways to make their their social media more popular
Speaker 1: and not just a regular social media strategy, really, is it? No?
Speaker 1: I mean, look it's a little bit strange, isn't it.
Speaker 1: But yes, it's one report on elon mask and the
Speaker 1: super Bowl tweets over the weekend, and look, I've been
Speaker 1: more focused on what's happening here in the UK Waitrose
Speaker 1: custing prices to compete that the high sweet competition, champagne
Speaker 1: corps being puffed everywhere as a result. Look, I mean
Speaker 1: it's a bit more mundane than that, isn't it. Waits
Speaker 1: is facing so much competition on the high street other
Speaker 1: firms of slashing costs and it goes of course to
Speaker 1: the inflation number that is the all important data. After
Speaker 1: the U s CPI figure yesterday we get the UK
Speaker 1: inflation data at seven am, three d own brand products
Speaker 1: from Waitrose are going to see prices cut. Food price
Speaker 1: inflation is just staggering sixteen point seven and looks interesting
Speaker 1: because we've had other supermarkets have done this already. You know,
Speaker 1: many of the other big players, test Go a Little
Speaker 1: Algae have their price match guaranteed to ensure their charge
Speaker 1: and the same price as Waitrose until now hasn't gotten
Speaker 1: in on that. But they've obviously decided that even the
Speaker 1: hallowed Waitrose consumer is also worried about prices going up,
Speaker 1: so it is interesting to see them taking this action
Speaker 1: as well. Yeah. Plus also on the kind of paying
Speaker 1: for things side of issues, Yeah, slightly to but should
Speaker 1: have brought an electric vehicle. I'm certainly kicking myself when
Speaker 1: I look at the data that we've been reporting on
Speaker 1: this morning. It's Tom Tom data, but apparently London second
Speaker 1: only to Hong Kong in terms of how expensive it
Speaker 1: is to drive a petrol vehicle more than two thousand,
Speaker 1: five hundred quick last year. It makes you think, certainly,
Speaker 1: walk a bit more. Stephen up next Sooner considers backdating pay.
Speaker 1: Barsonaro plans a return to Brazil and a two billion
Speaker 1: dollar lottery win. Now the paper review on Blue Birddaybreak Europe.
Speaker 1: The news you need to know from today's papers. I
Speaker 1: thought we've got a lottery win in today's newspapers will
Speaker 1: get to that well. I suppose it's a fun story.
Speaker 1: A bit later on Blue Bakeley and Karen's is here
Speaker 1: with details. Let's start with the meet the serious staff
Speaker 1: for the report in the ft. The headline we she
Speaker 1: soon like explores public sector paid deal that back dates
Speaker 1: wage offer. Yes, indeed, Caroline, good morning to you. So
Speaker 1: the Prime Minister and the Chancellor, according to the FT,
Speaker 1: are exploring this pay offer, and this is really to
Speaker 1: try to end the way for public sector strikes that
Speaker 1: we have seen here for months. According to the paper,
Speaker 1: to try to sweeten this pill, Richie Soon, I can
Speaker 1: Jerry me Hunt are considering giving workers a lum sum
Speaker 1: of money by back dating next year's pay rise, which
Speaker 1: takes effect from April probably to the start of January three.
Speaker 1: Now we did hear ripples and a few rumors months
Speaker 1: back about this back dated pay but now after weeks
Speaker 1: of deadlock, it's really important to clarify that no final
Speaker 1: decisions have actually been made as of yet. However, the
Speaker 1: newspaper highlights that these talks do reflect fears currently brewing
Speaker 1: in Downing Street that the waves of strikes could run
Speaker 1: on for months and months. And remember we're not that
Speaker 1: far from an election, and public sector pay awards for
Speaker 1: two and twenty three were around five percent and inflation
Speaker 1: actually stood at ten point five pc back in December,
Speaker 1: so way above those public sector pay awards, and there's
Speaker 1: going to be more news on the inflation front. Today
Speaker 1: we get the UK headline CPI growth and that's scene
Speaker 1: is slowing to ten point three percent in January from
Speaker 1: that figure in December, and that's due to weaker fuel prices,
Speaker 1: even though it is expensive in London to drive, like
Speaker 1: you just mentioned. I just think tenuous link. Yes, no,
Speaker 1: it is. I also just think it's isn't it's clever
Speaker 1: that this is how potentially the government would get around
Speaker 1: the idea that the Prime Minister has said that he
Speaker 1: doesn't want to reopen the pay negotiations for pay this year. Well,
Speaker 1: if it's about next year's pay, that is just backdated.
Speaker 1: It's a little bit of wiggle room in the language,
Speaker 1: isn't there. Yeah, I'm took me a minute to get
Speaker 1: my head around that idea. But I think I've gotten
Speaker 1: a know, so love somebody back dating next year's pay
Speaker 1: your eyes to the storage of this year. That is
Speaker 1: kind of essentially an advance on next year's pay rise. Right,
Speaker 1: I think I've gotten it now. Right, let's turn to
Speaker 1: the World Street Journal next. We've all got it now, Stephen,
Speaker 1: thank you. Yes, I'm always the last. Turn to the
Speaker 1: World Street Journal next, Baltonaro says he will return to
Speaker 1: Brazil and march to lead opposition. Yes, indeed, so the
Speaker 1: former Brazilian president Shayea Bolsonaro is planning his return to Brazil,
Speaker 1: and he said that's actually going to be next month,
Speaker 1: and he's planning to lead the political opposition to President
Speaker 1: Lula de Silva and defend himself against his accusations that
Speaker 1: he incited attacks by protesters on government buildings when he
Speaker 1: was voted out of offers. Now, this is his first
Speaker 1: interview since leaving the top job with the Wall Street Journal,
Speaker 1: and according to the paper, Bolsonaro was surrounded by bodyguards
Speaker 1: as he gave this interview in the US and said
Speaker 1: the right wing movement is not dead and we live
Speaker 1: on Balsonaro has never conceded that he actually lost that election,
Speaker 1: last year's election, and now was actually staying with friends
Speaker 1: in Florida. Well, it seems that he's plotting. Has come
Speaker 1: back to Brazil, and Bolsonaro says he is eager to
Speaker 1: get home, but acknowledge those illegal risks he faced after
Speaker 1: he was accused by prosecutors of inciting rights in January
Speaker 1: with social media posts that did warn of a voter
Speaker 1: fraud echoes there to what may have happened in the
Speaker 1: US Caroline, but it does appear that Bolsonaro is plotting
Speaker 1: a return despite Lula da Silva being in power. He
Speaker 1: won by a slim majority, but still a majority. He
Speaker 1: won exactly so in terms. Yeah, Also, they did have
Speaker 1: a nice photograph. Actually, I thought that they actually had
Speaker 1: a picture Barsonara looking relatively relaxed, I thought in the
Speaker 1: water Journal. And we've seen him go to KFC in
Speaker 1: all different restaurants while he has been staying in the States.
Speaker 1: Just put that out there. Interesting. The headline in the
Speaker 1: Times two billion dollar lottery win Edwin Castro is shocked
Speaker 1: and ecstatic. Why did you want to highlight this newspaper story? Well,
Speaker 1: I want to highlight those because I think this is
Speaker 1: a very smart man. And the reason it's not just
Speaker 1: because he's won the lottery, but he actually has told
Speaker 1: officials that he wants to remain in private and has
Speaker 1: declined to release his age, occupation and also his address.
Speaker 1: But his name has now come into the forefront after
Speaker 1: he did win the biggest amount on the lottery ever,
Speaker 1: I mean, what are you going to do with two
Speaker 1: point zero four billion dollars. Yes, do you. Oh well,
Speaker 1: I'm sure, but he actually scooped that lottery win after
Speaker 1: buying a ticket at a convenience store in l A.
Speaker 1: So what a lucky guy. Now, Castro's win means that
Speaker 1: three of the ten largest tickets in US history have
Speaker 1: all been sold in California. That's just a tip. Yes,
Speaker 1: I've got my playing ticket booked hours ago, but that's
Speaker 1: just a tip bit for anyone who wants to buy
Speaker 1: a winning ticket go to California. But I think this
Speaker 1: is interesting because I think to not actually release your age, occupation,
Speaker 1: and address is probably quite sensible. And I do agree
Speaker 1: as a sense of lottery that they don't don't stay
Speaker 1: sensible for very long. Yes, and tee. But the odds
Speaker 1: I mean of winning. I'm sorry, I'm still into the mathsphatism. Yeah,
Speaker 1: you're more likely to be hit by a meteor, rights, etcetera,
Speaker 1: etcetera than than win. But yeah, really good. Thank you
Speaker 1: so much again for the roundup of newspapers this morning.
Speaker 1: Let's get back to some of the Central Bank action.
Speaker 1: Several FED officials stressing on Tuesday that interest rates may
Speaker 1: need to move to a higher level after US consumer
Speaker 1: prices rose by half a percent in January. That was
Speaker 1: the most in three months. We've got Bloomberg's Mark Cranfield
Speaker 1: from our Markets Life team with us for more market Mark.
Speaker 1: Great to have you with us. Traders forced to rethink
Speaker 1: the Fed path after this inflation data. Yeah, it's been
Speaker 1: a very steady stream of hawkish Federal reserveial racist jobs
Speaker 1: data earlier in the month. But probably the most significant
Speaker 1: thing that's that's happened is that traders are finally taken
Speaker 1: out the potential rate cuts for later in this year.
Speaker 1: For some time we were still pricing but the lower
Speaker 1: rates before the end of that's finally now being taken
Speaker 1: out of the market and seeing that yields arise everywhere,
Speaker 1: and people now are starting to price for the fact
Speaker 1: that the Fed could continue raising rates even through to
Speaker 1: June this year, which is a slight change from what
Speaker 1: we've been seeing in recent weeks. So it's it's all
Speaker 1: starting to come home there and in the rates market
Speaker 1: and obviously other asset platists or we need to start
Speaker 1: paying attention to that because there was some people thinking
Speaker 1: that the Feds will go too far and it was
Speaker 1: going to have to reverse course quickly. But that really
Speaker 1: doesn't look as that it's going to be the case,
Speaker 1: and particularly equity market probably hasn't really noticed that just yet.
Speaker 1: The rethink on inflation has been applied to many other
Speaker 1: global central banks though too. You know this is recalibrating
Speaker 1: for the fairs. Yeah, I mean, it's what happens there
Speaker 1: tends to spread to other places. So it's obviously the
Speaker 1: Europeans will be looking at it pretty closely, probably the
Speaker 1: Bank of England as well. It doesn't usually stop in
Speaker 1: one place like that, and obviously when you look at
Speaker 1: the CPI data there were revisions higher as well. So
Speaker 1: though um, we're under a six percent how door now
Speaker 1: for for CPR, which is a slight improvement, they're still
Speaker 1: way too high and they put up some of the
Speaker 1: previous months. So there's no way as the inflation battle finished.
Speaker 1: As far as the feeders concerned. Europeans are saying similar
Speaker 1: things as well. Um, looks as though the seculation story,
Speaker 1: which we thought was the story, actually the three story,
Speaker 1: and it looks like he's going to go on for
Speaker 1: some time. We've also been hearing mark from the governor
Speaker 1: of Australia Center Bank, Philip I was speaking to lawmakers
Speaker 1: in Canberra and much in his testimony for markets UM,
Speaker 1: he was indicating that he thinks a soft lending it's
Speaker 1: still possible for Australia, and the rates market took it
Speaker 1: pretty well. There was a rebound in the Australian bondom
Speaker 1: market on the back of that UM so as though
Speaker 1: they were thinking that he wouldn't have to go too
Speaker 1: much further on interest rate hikes. He said the job
Speaker 1: wasn't finished, but they seemed to be indicating that there
Speaker 1: might not be too much more, maybe one, possibly too
Speaker 1: two more rate hikes in australa radio. But he does
Speaker 1: seem to have a bit of a communication issue because
Speaker 1: it was only last week that the RBA stunded very
Speaker 1: hawkish and since there he sees you backtracking a little
Speaker 1: bit on some of the things he said. And it's
Speaker 1: been a little bit of the case over the past
Speaker 1: few months that the the r BA say one thing
Speaker 1: and then a few days later there's a different story
Speaker 1: going around and bond traders are having a very difficult
Speaker 1: time trying to figure out exactly what the RBA means.
Speaker 1: And you can see there's a lot of flip flopping
Speaker 1: in that market. So not an easy time to be
Speaker 1: a bond trader in Australia. This is Bloomberg Daybreak Europe,
Speaker 1: your morning brief on the stories making news from London
Speaker 1: to Wall Streets and beyond. Look for us on your
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Speaker 1: played Bloomberg thirty. I'm Caroline Hetke and I'm Stephen Caroll.
Speaker 1: Join us again tomorrow morning for all the news you
Speaker 1: need to start your day right here on Bloomberg Daybreak Europe.
Speaker 1: M