Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: Daybreak for Friday, February tenth. Coming up today, the UK
Speaker 1: narrowly avoids a recession in the fourth quarter, the end
Speaker 1: strength and Secker surprise picked ahead in the Bank of Japan,
Speaker 1: Shares of Lift plunge on disappointing earnings, and Yahoo becomes
Speaker 1: the latest tech company to slash jobs. I'm Amy Morris.
Speaker 1: Wallmakers are working on a single payer healthcare system in
Speaker 1: New York, and former Vice President Mike Pence has been subpoenaed.
Speaker 1: I'm John stan Shower and sports home wins for the
Speaker 1: Nets and Devils, a loss for the Islanders. Bryan day
Speaker 1: Ball named NFL Coach of the Year. Patrick Mahomes one
Speaker 1: m v P. That's all straight ahead on Bloomberg day Break,
Speaker 1: The business news you need disturb your day, and just
Speaker 1: one fifteen minute podcast each pointing on Apples, Spotify, the
Speaker 1: Bloomberg Business app and everywhere you get your podcasts. Good morning,
Speaker 1: I'm Nathan Hagar and I'm kerin Moscow. Here are the
Speaker 1: stories we're following today. We begin with important economic news
Speaker 1: this morning around the world, starting in Europe, where the
Speaker 1: UK avoided a recession last year by the narrowest of margins.
Speaker 1: We go live to London and get the very latest
Speaker 1: with Bloomberg's You and Parts, Good Morning You, and Good
Speaker 1: Morning Nathan and Karen. The UK economy failed to grow
Speaker 1: in the fourth quarter, but the reading of zero percent
Speaker 1: will come as a relief to achus sing That's government,
Speaker 1: as it means that Britain avoided a recession at the
Speaker 1: end of last year. The more timely data, though, looks worse,
Speaker 1: with economic output falling nor point five percent in the
Speaker 1: month of December alone, worse than forecast. With consumer prices
Speaker 1: ten percent higher than a year ago and widespread industrial action,
Speaker 1: there are plenty of headwinds facing the UK economy. In London,
Speaker 1: I'm you in Parts in Bug Daybreak, Great You and
Speaker 1: thank You, and Asia the yen strengthening sharply. That's following
Speaker 1: news dec Zoo Waiter will be nominated to take the
Speaker 1: helm of the Bank of Japan in April. Begin more
Speaker 1: from Bloomberg's cousin Nori Takata into You. He served as
Speaker 1: one of the board members on the Bank of Japan
Speaker 1: from thousand and five. That was when the b O
Speaker 1: j for the first time embarked on negative rights and
Speaker 1: quantitative easy. He's also known for voting against lifting of
Speaker 1: negative rights, and Bloomberg'ssinri Takata and Tokyo says investors are
Speaker 1: interpreting the decision as a hawkish choice for the b
Speaker 1: o J. Staying in Asia, Karen, we have economic data
Speaker 1: out of China this morning. The country's consumer inflation accelerated
Speaker 1: last month as the Lunar New Year holiday stimulated demand.
Speaker 1: Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Speaker 1: The CPI rose two point one percent from a year earlier.
Speaker 1: That was in line with estimates. Core inflation, stripping out
Speaker 1: food and energy, gained just one percent. In the meantime,
Speaker 1: the pp I fill zero point eight percent as commodity
Speaker 1: prices lagged. The estimate was for a drop of zero
Speaker 1: point five percent. Bloomberg Economic says the pickup in cp
Speaker 1: I was down to higher food prices, not services. As such,
Speaker 1: the signal is underwhelming in Hong Kong. Bryan Curtis, Bloomberg Daybreak,
Speaker 1: All right, Brian, thank you. Well. Back here in the US,
Speaker 1: we get a reading on consumer confidence today. The University
Speaker 1: of Michigan issues. It's a national consumer sentiment index for
Speaker 1: early February, and economists anticipate further improvement to Bloombergy Sviny
Speaker 1: dewl Judais has more. January's consumer sentiment index rose stor
Speaker 1: nine month high sixty four point nine as the outlook improved,
Speaker 1: somewhat encouraging news following historic clothes. Even so, Bloomberg Economics
Speaker 1: he is considerable downside risks. Two thirds of consumers are
Speaker 1: bracing for an economic downturn. Also on today's economic agenda,
Speaker 1: the Treasuries monthly budget statement for January Finny del Judais
Speaker 1: Bloomberg Daybreak Fanny Thanks. Turning to earnings this morning, shares
Speaker 1: of Lift are plunging by more than thirty three percent.
Speaker 1: The right hailing company says it will prioritize lower prices
Speaker 1: to attract more customers. We get more from Bloomberg Intelligence
Speaker 1: see or analyst man Deep Singh. Lift, being the smaller player,
Speaker 1: has a little choice but to keep its prices low
Speaker 1: because Uber definitely has the advantage when it comes to
Speaker 1: scale of you know, writers, it has the number of
Speaker 1: trips as well as the driver's supply, and and that's
Speaker 1: what you're seeing in the results Bloomberg Intelligence Senior analyst
Speaker 1: man Deep Singh says lifts revenue projection for the current
Speaker 1: period also fell below expectations. Well in Europe, Nathan shares
Speaker 1: of Adidas are down almost eleven percent. The German apparel
Speaker 1: company warrants it could post in operating losses higher seven
Speaker 1: hundred fifty million dollars this year. That's after terminating a
Speaker 1: lucrative branding agreement with the rapper Ya Karen. More job
Speaker 1: cuts are coming to the tech industry. Yahoo is eliminating
Speaker 1: about a thousand jobs beginning this week. That's roughly twelve
Speaker 1: percent of its workforce. We get the story from Bloomberg's
Speaker 1: Charlie Pellett. It is the first round of cuts and
Speaker 1: a larger plan to restructure its advertising tech division amiddle
Speaker 1: way eve of layoffs in the industry, The company, now
Speaker 1: owned by Apollo Global Management, plans to reduce headcount. Had
Speaker 1: its Yahoo for Business at Tech unit by almost fifty
Speaker 1: percent by the end of this year, or more than
Speaker 1: twenty percent of the workforce at Yahoo. Digital advertising providers
Speaker 1: have had to grapple with skittish customers who are concerned
Speaker 1: about the uncertain economic climate in New York Charlie Pellette,
Speaker 1: Bloomberg Daybreak. All right, Charlie, thank you. Now let's turn
Speaker 1: to the latest on the earthquake aftermath in Turkey and Syria.
Speaker 1: The death toll has now crossed twenty two thousand. Thousands
Speaker 1: more remained missing, but just this morning six people were
Speaker 1: pulled alive from the rubble and Turkey dedemed American as
Speaker 1: deputy executive director for Oxfam and Turkey, and she says
Speaker 1: the disaster area is huge. It had ten provinces, so
Speaker 1: it's a big geography and thirteen million people were impacted,
Speaker 1: so you know, it's a big population. So first of all,
Speaker 1: the neath are too much and ox FAM's deedom Americans
Speaker 1: as many survivors who are afraid to go back to
Speaker 1: their homes due to aftershocks. Turkey's government is facing growing
Speaker 1: criticism over the earthquake response and the country's poor construction record.
Speaker 1: It is fifty eight degrees in New York going to
Speaker 1: be partly sunny, breezy and mild today. High's pretty much
Speaker 1: where they are right now, and we'll get down to
Speaker 1: the mid thirties tonight. Time now to take a look
Speaker 1: at some of the other stories making news in New
Speaker 1: York and around the world with Bloomberg's Amy Morris, Good Morning, Amy,
Speaker 1: Good Morning Nathan. Former Vice President Mike Ben's, and former
Speaker 1: National security advisor Robert O'Brien have been subpoenaed in the
Speaker 1: Special Council investigations of Donald Trump and his allies. Special
Speaker 1: counsel Jack Smith is investigating efforts by Trump and others
Speaker 1: to overturn the presidential election and the discovery of classified
Speaker 1: documents that were found at the former president's Mara Logo
Speaker 1: resort in Florida. Lawmakers and labor unions are working to
Speaker 1: amend a long time bill that would establish a single
Speaker 1: payer healthcare system in New York as budget talks are underway.
Speaker 1: The so called New York Health Act would create a
Speaker 1: universal health care system and cover all primary, preventive, and
Speaker 1: specialized medical care for all New Yorkers, regardless of immigration status.
Speaker 1: It would be funded through an income based graduated tax
Speaker 1: based on a person's ability to pay. New York One
Speaker 1: reports the plan is different from the Affordable Care Act.
Speaker 1: It eliminates insurance companies as the core of the system.
Speaker 1: Talks are ongoing. Governor Huckle's office did not respond to
Speaker 1: questions about the governor's position on the bill. A handful
Speaker 1: of Senate lawmakers were briefed behind closed doors yesterday by
Speaker 1: Defense Department officials and attorneys on the Chinese balloon that
Speaker 1: was shut down off the coast of South Carolina last week.
Speaker 1: Democratic Senator Chris Murphy of Connecticut says intelligence gathering was critical.
Speaker 1: Maybe some people don't think it's valuable to collect the intelligence,
Speaker 1: um I do. I think it made sense for us
Speaker 1: to learn something about this balloon, given that it really
Speaker 1: posed no threat to the United States. Senegun officials say
Speaker 1: the balloon was first detected over Alaska, but they waited
Speaker 1: to shoot it down so they could gather intelligence about it.
Speaker 1: In Battled New York Congressman George Santos would have been
Speaker 1: one of those briefed on the balloon. He was not,
Speaker 1: as he is facing a new measure to get him
Speaker 1: removed from the House. California Representative Robert Garcia is joining
Speaker 1: New York Congressman Richie Torres and Dan Goldman. They're sponsoring
Speaker 1: a bill to get Santos removed. They say the measure
Speaker 1: will be referred to the Ethics Committee. Global News twenty
Speaker 1: four hours a day, powered by more than twenty seven
Speaker 1: hundred journalists and analysts in over one d twenty countries.
Speaker 1: I'm Amy Morris. This is Bloomberg Nathan. All right, Amy,
Speaker 1: thank you time now for our Bloomberg Sports Ubday, brought
Speaker 1: to you by try stayed Outie. Good morning, John Stash,
Speaker 1: Our morning, Nathan. Super Bowl fifty seven Sunday in Phoenix,
Speaker 1: Chiefs and Eagles. And obviously a big storyline is that
Speaker 1: Andy Reid is coaching against his former team fourteen grade
Speaker 1: years there. I loved every minute of it. Um. It's
Speaker 1: a great organization. UM, and I still I'm close with
Speaker 1: the people there. It was great to see the kids
Speaker 1: that we had drafted, uh that are now these veteran players,
Speaker 1: all pro. Chiefs and Eagles have together won only three
Speaker 1: of the fifties six Super Bowls read in the Chiefs
Speaker 1: one three years ago, the Eagles two years before that.
Speaker 1: This first super Bowl in forty years between two teams.
Speaker 1: We've both won championships within the previous five seasons. Postseason
Speaker 1: honors handed out last night in Phoenix. Patrick Mahomes a
Speaker 1: runaway choice for m v P, only the tenth to
Speaker 1: win it twice. Brian Dabo rewarded for getting the Giants
Speaker 1: to the playoffs. He beat out Kyle Shanahan for Coach
Speaker 1: of the Year and two Jets one Rookie awards. Garrett
Speaker 1: Wilson on offense, Sauce Gardner on defense. Former Jet and
Speaker 1: Giant quarterback Geno Smith, now with Seattle, named the Comeback
Speaker 1: Player of the Year. To former Jets name for induction
Speaker 1: to the Hall of Fame. The Great cornerback dar l
Speaker 1: Reeb has made it in his first year of eligibility.
Speaker 1: Played eight seasons, two different stints with the Jets, and
Speaker 1: Joe Cleco had twenty sacks back in one. He was
Speaker 1: named by the vet of in his committee. Another home
Speaker 1: game for the Nets their third and four nights, and
Speaker 1: they gotta win one sixteen one oh five over Chicago.
Speaker 1: Spencer Dinwoodie, just acquired in the Kyrie Irving trade, scored
Speaker 1: twenty five points. Zach Levine had thirty eight for the Voles.
Speaker 1: There was a hot rumor yesterday that he was going
Speaker 1: to be traded to the Knicks. That didn't happen. On
Speaker 1: the ice, Devils beat Seattle three to one. Islanders lost
Speaker 1: to Vancouver six to five. On the Rangers have acquired
Speaker 1: veteran Vladimir Terra Senko from St. Louis. He's had six
Speaker 1: thirty goal seasons. John Statutward Bloomberg Sports Live from coast
Speaker 1: to coast, from New York to San Francisco, Boston to Washington,
Speaker 1: d C. Nationwide on Sirius x AM, the Bloomberg Business app,
Speaker 1: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning,
Speaker 1: I'm Nathan Hager. We're taking a closer look now at
Speaker 1: a bit of a surprise coming out of the UK
Speaker 1: in terms of the economic data. Britain just barely avoided
Speaker 1: a recession last year. That's despite the cost of living
Speaker 1: crisis and the strikes we keep hearing about in the
Speaker 1: UK that have been going on for months now. And
Speaker 1: Andreta is an economist who covers your Forest and Bloomberg Economics,
Speaker 1: and Anna is here with us now. Good morning, Anna,
Speaker 1: thanks for being with us. So the gross national product
Speaker 1: we're told was flat in the fourth quarter, so technically
Speaker 1: not a recession, but I'm sure that does not change
Speaker 1: how the economy feels to the average citizen in the UK.
Speaker 1: Good morning. So yeah, I would say that's that's exactly
Speaker 1: it's um so essentially growth platons in the last quarter
Speaker 1: of the year, and there were a couple of reasons
Speaker 1: for that. So one was that, you know, the vaccines
Speaker 1: were rolled out, the vaccine campaign in the autumn was
Speaker 1: rolled out and that drove up health output. And also
Speaker 1: there was something related to the timing of an extra
Speaker 1: national holiday, and so those are the kind of reasons
Speaker 1: that you know, helped the UK avoid contraction in the
Speaker 1: last quarter of the year. But I would say that,
Speaker 1: you know, the broader picture is that momentum is weak.
Speaker 1: You can see in the data that consumers are already
Speaker 1: feeling the pain from high um, high inflation, humor facing
Speaker 1: servant since for instance, up fallen by one percent since
Speaker 1: y cole Um. So I would say that the recession
Speaker 1: was avoided on paper only, and the outpoot isn't also
Speaker 1: looking very good. Yeah, and I would imagine that it
Speaker 1: doesn't just feel like it on paper, but it feels
Speaker 1: like it in the average citizens feelings about the economy
Speaker 1: as well. What is it behind the data that you're
Speaker 1: seeing that points to the possibility that we could see
Speaker 1: even further economic downturns in the UK and the months
Speaker 1: to come. Yeah. So so so there's a couple of things.
Speaker 1: So I mean, first of all, um, we had the
Speaker 1: p m I pro January and that came in pretty
Speaker 1: weak to that pointed to another monthly contraction at the
Speaker 1: start of the year. But then you have just underlying
Speaker 1: weakness that it's driven by, you know, interest rates are increasing. UM.
Speaker 1: Delivery market has been very hot over you know, the
Speaker 1: over twenty two, but now you see in the data
Speaker 1: that there are signs of cooling and that it's likely
Speaker 1: to kind of you know, translate into redundancies this this year. UM.
Speaker 1: And so that's together with you know, wrising interest rates. UM,
Speaker 1: it will drive some witness in the economy and we
Speaker 1: actually expect the GDP to call over the next two quarters. UM.
Speaker 1: Now I would say that, you know, like for historically
Speaker 1: this kind of downturn won't be as severe as in
Speaker 1: the past. So we see since the third quarter of
Speaker 1: twenty two, we actually see the falling GDP of just
Speaker 1: about point seven percent. And just to give you like
Speaker 1: a comparison, output fell by six percent during the downturn
Speaker 1: in the financial crisis and by three percent in the
Speaker 1: so you know, prospects aren't great, but also this recession
Speaker 1: won't be as bad as as as previous one. If
Speaker 1: that forecast holds, and what could that mean for the
Speaker 1: Bank of England the last time around. I think they
Speaker 1: hiked by fifty basis points have been a little bit
Speaker 1: more aggressive than the Fed is looking like it's going
Speaker 1: to be up to this point. What does that mean
Speaker 1: in terms of where the right hike path could go
Speaker 1: for the Bank of England going forward. Yeah, so the
Speaker 1: economy was was a little weaker than the VOE had expected,
Speaker 1: so it had in its forecast. We've had point one
Speaker 1: percent gain for the last quarter of the year. But
Speaker 1: I mean that's that's not going to move the needle
Speaker 1: on the committee. First, the BOE knows that the economy
Speaker 1: is we is weak and it's weakening. It's forecasting a
Speaker 1: recession over this current year and all the way until
Speaker 1: the first quarter of twenty four UM. But secondly and
Speaker 1: most important is that what they're really concerned about is
Speaker 1: underlying pressures in the economy. UM. So they were clear.
Speaker 1: So they did signal at their last meeting that they
Speaker 1: were reaching the end of their hiking cycle, but they
Speaker 1: still kept the door open for further hikes. And what
Speaker 1: they will be looking at is the risk of inflation persistence,
Speaker 1: so they will really be looking at how fast the
Speaker 1: labor deliver market cools down and how services inflation fairs
Speaker 1: over the coming months. And we just don't think that
Speaker 1: those two things will turn around meaningfully by the next
Speaker 1: meeting um to you know, to persuade the committee to
Speaker 1: stop just yet. So we still see rates going up.
Speaker 1: I mean, there will be a downshift. We expect an
Speaker 1: increase of twenty five basis points in March from the
Speaker 1: fifty you mentioned, but but we just don't see them
Speaker 1: pausing just yet. Only about thirty seconds left here. And
Speaker 1: I understand the government can't say what the impact of
Speaker 1: strikes has been on GDP, but can you is there
Speaker 1: any impact on the strikes it is so it's been,
Speaker 1: it's it's it's hard to measure, but the ons in
Speaker 1: its the Certificate Office and it's a GDP release did
Speaker 1: point to some weakness attributed to the strikes. UM We
Speaker 1: think that you know, strikes um since over the last
Speaker 1: quarter of the year had kind of left GDP point
Speaker 1: two percent lower than it would have been. But you know,
Speaker 1: any kind of hit to the GDP due to the
Speaker 1: strikes will will then kind of be you know, gained
Speaker 1: after so or there will be a rebound. So this
Speaker 1: is just a temporary weaknes. It's not really a permanent
Speaker 1: heap um to GDP, but it's definitely amplifying the weakness
Speaker 1: we're seeing at this moment in the economy. 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
Speaker 1: us on your podcast feed at six am Eastern each morning,
Speaker 1: on Apple, Spotify, and anywhere else you get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street time on Bloomberg eleven three oh in
Speaker 1: New York, Bloomberg in Washington, Bloomberg one oh six one
Speaker 1: in Boston, and Bloomberg nine six in San Francisco. Our
Speaker 1: flagship New York station is also available on your Amazon
Speaker 1: Alexa devices. Just say Alexa play Bloomberg eleven Plus listen
Speaker 1: coast to coast on the Bloomberg Business app, Serius XM
Speaker 1: Channel one nine, the I Heart Radio app, and on
Speaker 1: Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow.
Speaker 1: Join us again tomorrow morning for all the news you
Speaker 1: need to start your day right here on Bloomberg Daybreak