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

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Speaker 1: Daybreak for Friday, February tenth. Coming up today, the UK

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Speaker 1: narrowly avoids a recession in the fourth quarter, the end

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Speaker 1: strength and Secker surprise picked ahead in the Bank of Japan,

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Speaker 1: Shares of Lift plunge on disappointing earnings, and Yahoo becomes

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Speaker 1: the latest tech company to slash jobs. I'm Amy Morris.

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Speaker 1: Wallmakers are working on a single payer healthcare system in

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Speaker 1: New York, and former Vice President Mike Pence has been subpoenaed.

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Speaker 1: I'm John stan Shower and sports home wins for the

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Speaker 1: Nets and Devils, a loss for the Islanders. Bryan day

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Speaker 1: Ball named NFL Coach of the Year. Patrick Mahomes one

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Speaker 1: m v P. That's all straight ahead on Bloomberg day Break,

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

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

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

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Speaker 1: I'm Nathan Hagar and I'm kerin Moscow. Here are the

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Speaker 1: stories we're following today. We begin with important economic news

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Speaker 1: this morning around the world, starting in Europe, where the

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Speaker 1: UK avoided a recession last year by the narrowest of margins.

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

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Speaker 1: with Bloomberg's You and Parts, Good Morning You, and Good

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Speaker 1: Morning Nathan and Karen. The UK economy failed to grow

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Speaker 1: in the fourth quarter, but the reading of zero percent

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Speaker 1: will come as a relief to achus sing That's government,

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Speaker 1: as it means that Britain avoided a recession at the

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Speaker 1: end of last year. The more timely data, though, looks worse,

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Speaker 1: with economic output falling nor point five percent in the

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Speaker 1: month of December alone, worse than forecast. With consumer prices

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Speaker 1: ten percent higher than a year ago and widespread industrial action,

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Speaker 1: there are plenty of headwinds facing the UK economy. In London,

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Speaker 1: I'm you in Parts in Bug Daybreak, Great You and

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Speaker 1: thank You, and Asia the yen strengthening sharply. That's following

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Speaker 1: news dec Zoo Waiter will be nominated to take the

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Speaker 1: helm of the Bank of Japan in April. Begin more

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Speaker 1: from Bloomberg's cousin Nori Takata into You. He served as

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Speaker 1: one of the board members on the Bank of Japan

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Speaker 1: from thousand and five. That was when the b O

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Speaker 1: j for the first time embarked on negative rights and

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Speaker 1: quantitative easy. He's also known for voting against lifting of

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Speaker 1: negative rights, and Bloomberg'ssinri Takata and Tokyo says investors are

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Speaker 1: interpreting the decision as a hawkish choice for the b

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Speaker 1: o J. Staying in Asia, Karen, we have economic data

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Speaker 1: out of China this morning. The country's consumer inflation accelerated

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Speaker 1: last month as the Lunar New Year holiday stimulated demand.

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Speaker 1: Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.

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Speaker 1: The CPI rose two point one percent from a year earlier.

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Speaker 1: That was in line with estimates. Core inflation, stripping out

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Speaker 1: food and energy, gained just one percent. In the meantime,

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Speaker 1: the pp I fill zero point eight percent as commodity

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Speaker 1: prices lagged. The estimate was for a drop of zero

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Speaker 1: point five percent. Bloomberg Economic says the pickup in cp

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Speaker 1: I was down to higher food prices, not services. As such,

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Speaker 1: the signal is underwhelming in Hong Kong. Bryan Curtis, Bloomberg Daybreak,

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Speaker 1: All right, Brian, thank you. Well. Back here in the US,

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Speaker 1: we get a reading on consumer confidence today. The University

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Speaker 1: of Michigan issues. It's a national consumer sentiment index for

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Speaker 1: early February, and economists anticipate further improvement to Bloombergy Sviny

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Speaker 1: dewl Judais has more. January's consumer sentiment index rose stor

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Speaker 1: nine month high sixty four point nine as the outlook improved,

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Speaker 1: somewhat encouraging news following historic clothes. Even so, Bloomberg Economics

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Speaker 1: he is considerable downside risks. Two thirds of consumers are

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Speaker 1: bracing for an economic downturn. Also on today's economic agenda,

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Speaker 1: the Treasuries monthly budget statement for January Finny del Judais

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Speaker 1: Bloomberg Daybreak Fanny Thanks. Turning to earnings this morning, shares

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Speaker 1: of Lift are plunging by more than thirty three percent.

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Speaker 1: The right hailing company says it will prioritize lower prices

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Speaker 1: to attract more customers. We get more from Bloomberg Intelligence

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Speaker 1: see or analyst man Deep Singh. Lift, being the smaller player,

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Speaker 1: has a little choice but to keep its prices low

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Speaker 1: because Uber definitely has the advantage when it comes to

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Speaker 1: scale of you know, writers, it has the number of

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Speaker 1: trips as well as the driver's supply, and and that's

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Speaker 1: what you're seeing in the results Bloomberg Intelligence Senior analyst

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Speaker 1: man Deep Singh says lifts revenue projection for the current

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Speaker 1: period also fell below expectations. Well in Europe, Nathan shares

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Speaker 1: of Adidas are down almost eleven percent. The German apparel

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Speaker 1: company warrants it could post in operating losses higher seven

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Speaker 1: hundred fifty million dollars this year. That's after terminating a

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Speaker 1: lucrative branding agreement with the rapper Ya Karen. More job

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Speaker 1: cuts are coming to the tech industry. Yahoo is eliminating

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Speaker 1: about a thousand jobs beginning this week. That's roughly twelve

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Speaker 1: percent of its workforce. We get the story from Bloomberg's

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Speaker 1: Charlie Pellett. It is the first round of cuts and

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Speaker 1: a larger plan to restructure its advertising tech division amiddle

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Speaker 1: way eve of layoffs in the industry, The company, now

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Speaker 1: owned by Apollo Global Management, plans to reduce headcount. Had

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Speaker 1: its Yahoo for Business at Tech unit by almost fifty

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Speaker 1: percent by the end of this year, or more than

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Speaker 1: twenty percent of the workforce at Yahoo. Digital advertising providers

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Speaker 1: have had to grapple with skittish customers who are concerned

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Speaker 1: about the uncertain economic climate in New York Charlie Pellette,

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Speaker 1: Bloomberg Daybreak. All right, Charlie, thank you. Now let's turn

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Speaker 1: to the latest on the earthquake aftermath in Turkey and Syria.

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Speaker 1: The death toll has now crossed twenty two thousand. Thousands

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Speaker 1: more remained missing, but just this morning six people were

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Speaker 1: pulled alive from the rubble and Turkey dedemed American as

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Speaker 1: deputy executive director for Oxfam and Turkey, and she says

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Speaker 1: the disaster area is huge. It had ten provinces, so

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Speaker 1: it's a big geography and thirteen million people were impacted,

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Speaker 1: so you know, it's a big population. So first of all,

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Speaker 1: the neath are too much and ox FAM's deedom Americans

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Speaker 1: as many survivors who are afraid to go back to

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Speaker 1: their homes due to aftershocks. Turkey's government is facing growing

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Speaker 1: criticism over the earthquake response and the country's poor construction record.

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Speaker 1: It is fifty eight degrees in New York going to

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Speaker 1: be partly sunny, breezy and mild today. High's pretty much

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Speaker 1: where they are right now, and we'll get down to

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Speaker 1: the mid thirties tonight. Time now to take a look

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

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Speaker 1: York and around the world with Bloomberg's Amy Morris, Good Morning, Amy,

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Speaker 1: Good Morning Nathan. Former Vice President Mike Ben's, and former

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Speaker 1: National security advisor Robert O'Brien have been subpoenaed in the

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Speaker 1: Special Council investigations of Donald Trump and his allies. Special

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Speaker 1: counsel Jack Smith is investigating efforts by Trump and others

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Speaker 1: to overturn the presidential election and the discovery of classified

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Speaker 1: documents that were found at the former president's Mara Logo

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Speaker 1: resort in Florida. Lawmakers and labor unions are working to

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Speaker 1: amend a long time bill that would establish a single

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Speaker 1: payer healthcare system in New York as budget talks are underway.

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Speaker 1: The so called New York Health Act would create a

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Speaker 1: universal health care system and cover all primary, preventive, and

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Speaker 1: specialized medical care for all New Yorkers, regardless of immigration status.

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Speaker 1: It would be funded through an income based graduated tax

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Speaker 1: based on a person's ability to pay. New York One

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Speaker 1: reports the plan is different from the Affordable Care Act.

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Speaker 1: It eliminates insurance companies as the core of the system.

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Speaker 1: Talks are ongoing. Governor Huckle's office did not respond to

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Speaker 1: questions about the governor's position on the bill. A handful

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Speaker 1: of Senate lawmakers were briefed behind closed doors yesterday by

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Speaker 1: Defense Department officials and attorneys on the Chinese balloon that

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Speaker 1: was shut down off the coast of South Carolina last week.

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Speaker 1: Democratic Senator Chris Murphy of Connecticut says intelligence gathering was critical.

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Speaker 1: Maybe some people don't think it's valuable to collect the intelligence,

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Speaker 1: um I do. I think it made sense for us

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Speaker 1: to learn something about this balloon, given that it really

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Speaker 1: posed no threat to the United States. Senegun officials say

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Speaker 1: the balloon was first detected over Alaska, but they waited

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Speaker 1: to shoot it down so they could gather intelligence about it.

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Speaker 1: In Battled New York Congressman George Santos would have been

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Speaker 1: one of those briefed on the balloon. He was not,

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Speaker 1: as he is facing a new measure to get him

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Speaker 1: removed from the House. California Representative Robert Garcia is joining

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Speaker 1: New York Congressman Richie Torres and Dan Goldman. They're sponsoring

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Speaker 1: a bill to get Santos removed. They say the measure

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Speaker 1: will be referred to the Ethics Committee. Global News twenty

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

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Speaker 1: hundred journalists and analysts in over one d twenty countries.

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Speaker 1: I'm Amy Morris. This is Bloomberg Nathan. All right, Amy,

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Speaker 1: thank you time now for our Bloomberg Sports Ubday, brought

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Speaker 1: to you by try stayed Outie. Good morning, John Stash,

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Speaker 1: Our morning, Nathan. Super Bowl fifty seven Sunday in Phoenix,

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Speaker 1: Chiefs and Eagles. And obviously a big storyline is that

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Speaker 1: Andy Reid is coaching against his former team fourteen grade

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Speaker 1: years there. I loved every minute of it. Um. It's

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Speaker 1: a great organization. UM, and I still I'm close with

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Speaker 1: the people there. It was great to see the kids

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Speaker 1: that we had drafted, uh that are now these veteran players,

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Speaker 1: all pro. Chiefs and Eagles have together won only three

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Speaker 1: of the fifties six Super Bowls read in the Chiefs

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Speaker 1: one three years ago, the Eagles two years before that.

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Speaker 1: This first super Bowl in forty years between two teams.

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Speaker 1: We've both won championships within the previous five seasons. Postseason

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Speaker 1: honors handed out last night in Phoenix. Patrick Mahomes a

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Speaker 1: runaway choice for m v P, only the tenth to

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Speaker 1: win it twice. Brian Dabo rewarded for getting the Giants

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Speaker 1: to the playoffs. He beat out Kyle Shanahan for Coach

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Speaker 1: of the Year and two Jets one Rookie awards. Garrett

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Speaker 1: Wilson on offense, Sauce Gardner on defense. Former Jet and

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Speaker 1: Giant quarterback Geno Smith, now with Seattle, named the Comeback

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Speaker 1: Player of the Year. To former Jets name for induction

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Speaker 1: to the Hall of Fame. The Great cornerback dar l

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Speaker 1: Reeb has made it in his first year of eligibility.

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Speaker 1: Played eight seasons, two different stints with the Jets, and

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Speaker 1: Joe Cleco had twenty sacks back in one. He was

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Speaker 1: named by the vet of in his committee. Another home

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Speaker 1: game for the Nets their third and four nights, and

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Speaker 1: they gotta win one sixteen one oh five over Chicago.

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Speaker 1: Spencer Dinwoodie, just acquired in the Kyrie Irving trade, scored

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Speaker 1: twenty five points. Zach Levine had thirty eight for the Voles.

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Speaker 1: There was a hot rumor yesterday that he was going

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Speaker 1: to be traded to the Knicks. That didn't happen. On

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Speaker 1: the ice, Devils beat Seattle three to one. Islanders lost

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Speaker 1: to Vancouver six to five. On the Rangers have acquired

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Speaker 1: veteran Vladimir Terra Senko from St. Louis. He's had six

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Speaker 1: thirty goal seasons. John Statutward Bloomberg Sports Live from coast

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

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Speaker 1: d C. Nationwide on Sirius x AM, the Bloomberg Business app,

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Speaker 1: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning,

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Speaker 1: I'm Nathan Hager. We're taking a closer look now at

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Speaker 1: a bit of a surprise coming out of the UK

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Speaker 1: in terms of the economic data. Britain just barely avoided

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Speaker 1: a recession last year. That's despite the cost of living

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Speaker 1: crisis and the strikes we keep hearing about in the

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Speaker 1: UK that have been going on for months now. And

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Speaker 1: Andreta is an economist who covers your Forest and Bloomberg Economics,

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Speaker 1: and Anna is here with us now. Good morning, Anna,

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Speaker 1: thanks for being with us. So the gross national product

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Speaker 1: we're told was flat in the fourth quarter, so technically

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Speaker 1: not a recession, but I'm sure that does not change

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Speaker 1: how the economy feels to the average citizen in the UK.

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Speaker 1: Good morning. So yeah, I would say that's that's exactly

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Speaker 1: it's um so essentially growth platons in the last quarter

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Speaker 1: of the year, and there were a couple of reasons

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Speaker 1: for that. So one was that, you know, the vaccines

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Speaker 1: were rolled out, the vaccine campaign in the autumn was

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Speaker 1: rolled out and that drove up health output. And also

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Speaker 1: there was something related to the timing of an extra

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Speaker 1: national holiday, and so those are the kind of reasons

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Speaker 1: that you know, helped the UK avoid contraction in the

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Speaker 1: last quarter of the year. But I would say that,

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Speaker 1: you know, the broader picture is that momentum is weak.

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Speaker 1: You can see in the data that consumers are already

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Speaker 1: feeling the pain from high um, high inflation, humor facing

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Speaker 1: servant since for instance, up fallen by one percent since

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Speaker 1: y cole Um. So I would say that the recession

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Speaker 1: was avoided on paper only, and the outpoot isn't also

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Speaker 1: looking very good. Yeah, and I would imagine that it

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Speaker 1: doesn't just feel like it on paper, but it feels

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Speaker 1: like it in the average citizens feelings about the economy

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Speaker 1: as well. What is it behind the data that you're

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Speaker 1: seeing that points to the possibility that we could see

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Speaker 1: even further economic downturns in the UK and the months

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Speaker 1: to come. Yeah. So so so there's a couple of things.

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Speaker 1: So I mean, first of all, um, we had the

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Speaker 1: p m I pro January and that came in pretty

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Speaker 1: weak to that pointed to another monthly contraction at the

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Speaker 1: start of the year. But then you have just underlying

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Speaker 1: weakness that it's driven by, you know, interest rates are increasing. UM.

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Speaker 1: Delivery market has been very hot over you know, the

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Speaker 1: over twenty two, but now you see in the data

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Speaker 1: that there are signs of cooling and that it's likely

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Speaker 1: to kind of you know, translate into redundancies this this year. UM.

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Speaker 1: And so that's together with you know, wrising interest rates. UM,

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Speaker 1: it will drive some witness in the economy and we

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Speaker 1: actually expect the GDP to call over the next two quarters. UM.

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Speaker 1: Now I would say that, you know, like for historically

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Speaker 1: this kind of downturn won't be as severe as in

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Speaker 1: the past. So we see since the third quarter of

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Speaker 1: twenty two, we actually see the falling GDP of just

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Speaker 1: about point seven percent. And just to give you like

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Speaker 1: a comparison, output fell by six percent during the downturn

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Speaker 1: in the financial crisis and by three percent in the

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Speaker 1: so you know, prospects aren't great, but also this recession

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Speaker 1: won't be as bad as as as previous one. If

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Speaker 1: that forecast holds, and what could that mean for the

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Speaker 1: Bank of England the last time around. I think they

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Speaker 1: hiked by fifty basis points have been a little bit

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Speaker 1: more aggressive than the Fed is looking like it's going

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Speaker 1: to be up to this point. What does that mean

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Speaker 1: in terms of where the right hike path could go

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Speaker 1: for the Bank of England going forward. Yeah, so the

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Speaker 1: economy was was a little weaker than the VOE had expected,

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Speaker 1: so it had in its forecast. We've had point one

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Speaker 1: percent gain for the last quarter of the year. But

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Speaker 1: I mean that's that's not going to move the needle

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Speaker 1: on the committee. First, the BOE knows that the economy

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Speaker 1: is we is weak and it's weakening. It's forecasting a

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Speaker 1: recession over this current year and all the way until

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Speaker 1: the first quarter of twenty four UM. But secondly and

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Speaker 1: most important is that what they're really concerned about is

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Speaker 1: underlying pressures in the economy. UM. So they were clear.

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Speaker 1: So they did signal at their last meeting that they

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Speaker 1: were reaching the end of their hiking cycle, but they

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Speaker 1: still kept the door open for further hikes. And what

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Speaker 1: they will be looking at is the risk of inflation persistence,

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Speaker 1: so they will really be looking at how fast the

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Speaker 1: labor deliver market cools down and how services inflation fairs

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Speaker 1: over the coming months. And we just don't think that

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Speaker 1: those two things will turn around meaningfully by the next

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Speaker 1: meeting um to you know, to persuade the committee to

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Speaker 1: stop just yet. So we still see rates going up.

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Speaker 1: I mean, there will be a downshift. We expect an

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Speaker 1: increase of twenty five basis points in March from the

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Speaker 1: fifty you mentioned, but but we just don't see them

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Speaker 1: pausing just yet. Only about thirty seconds left here. And

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Speaker 1: I understand the government can't say what the impact of

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Speaker 1: strikes has been on GDP, but can you is there

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Speaker 1: any impact on the strikes it is so it's been,

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Speaker 1: it's it's it's hard to measure, but the ons in

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Speaker 1: its the Certificate Office and it's a GDP release did

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Speaker 1: point to some weakness attributed to the strikes. UM We

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Speaker 1: think that you know, strikes um since over the last

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Speaker 1: quarter of the year had kind of left GDP point

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Speaker 1: two percent lower than it would have been. But you know,

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Speaker 1: any kind of hit to the GDP due to the

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Speaker 1: strikes will will then kind of be you know, gained

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Speaker 1: after so or there will be a rebound. So this

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Speaker 1: is just a temporary weaknes. It's not really a permanent

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Speaker 1: heap um to GDP, but it's definitely amplifying the weakness

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Speaker 1: we're seeing at this moment in the economy. This is

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