The Fed Could Head Higher and Musk's Twitter Following

are the stories we're looking at in today's papers. And I'm Leanne Geron's plus in search of more followers. Reports emerge that Elon Musk tweet the algorithm to boost his tweets. That's all straight ahead on Bloomberg Daybreak Europe. The business news you need to start your day in just one fifteen minute podcast on Apple, Spotify, the Bloomberg Business app, and everywhere you get your podcasts. Good morning, I'm Stephen Carroll and I'm Caroline Hick. Here all the stories that

we're following today. Traders are abandoning bets of the Federal Reserve is about to cut rates, with a two year treasury yield rising above four and a half percent. The market rethink comes after data showed consumer prices rising six point four percent in January compared to a year earlier. Speaking exclusively to Bloomberg, Richmond FED President Thomas Barkin says

the central bank will hike higher if needed. We may or may not choose to take rates up further if inflation continues to persist, but we'll have to see what happens. If inflation settles, maybe we don't go quite as far. But of inflation persists and levels well above our our target, may we'll have to do more. Barkin's view was echoed elsewhere by Dallas FED President Laurry Logan, who said rate rises may be needed for a longer period than previously anticipated.

Now moving on, Once considered uninvestable, Chinese stocks have become a must have for edge funds again. The latest filings show that they loaded up on the shares last quarter as Beijing abandoned its COVID zero policy. Even Michael Burry, the money manager made famous by the Big Short, is going along. Meanwhile, Berkshire Hathaway has provided an update on what it's holding, and it's been bulking up its position

in Apple. The story from Bloombergs Charlie Palace. In addition, Berkshire expanded its stakes in Paramount Global and Louisiana Pacific Corp. In the last three months of two according to a regulatory filing. At the same time, Berkshire trimmed as some of its financial holdings, including its stakes in US BANKORPS, Bank of New York, Melon and Ally Financial. The remainder of the company's portfolio was largely unchanged in New York.

Charlie Pellett Bloomberg Daybreak Europe Now, Bloomberg has learned that the European Union is seeking to force banks to report information on frozen Russian Central Bank assets as part of its tenth package of sanctions targeting Moscow. Commission is also proposing extensive trade restrictions on goods used by Russia's military, including technology, heavy vehicles, and electronics. After a record slew of job cuts, Goldman CEO David Solomon says the bank

plans to have stricter hiring policies going forward. He told her Credit Swiss conference cutting costs was a key focus for him. We are in a position to lower the head count of the firm. We've taken some action. Um, we have a much tighter hiring plan in three and then attrition rolls through and so that also helps and creates more cost leverage. I think we're very targeted and focused and we'll be in a good place. Speaking at the same conference as Solomon JP, Morgan's chief financial officer,

Jeremy Barnum also struck a pessimistic tone. He warned the lender's first quarter trading revenue for this year made a kline compared to the eight point eight billion dollars it pulled in at the start of two. And finally, Elon Musk has reportedly had Twitter's engineers all to the social media's algorithm so that his own tweets get more views. According to Platformer, the billionaire owner for the social media firm was unhappy with the number of views that his

Super Bowl tweet got. The change would be at odd with musque previous comments on preferential treatment before taking the company private. He said that he wanted to make the site an even playing field without bias. Okay, those are top stories this morning. Well, well, well, people doing doing making ways to make their their social media more popular and not just a regular social media strategy, really, is it? No? I mean, look it's a little bit strange, isn't it.

But yes, it's one report on elon mask and the super Bowl tweets over the weekend, and look, I've been more focused on what's happening here in the UK Waitrose custing prices to compete that the high sweet competition, champagne corps being puffed everywhere as a result. Look, I mean it's a bit more mundane than that, isn't it. Waits is facing so much competition on the high street other firms of slashing costs and it goes of course to

the inflation number that is the all important data. After the U s CPI figure yesterday we get the UK inflation data at seven am, three d own brand products from Waitrose are going to see prices cut. Food price inflation is just staggering sixteen point seven and looks interesting

because we've had other supermarkets have done this already. You know, many of the other big players, test Go a Little Algae have their price match guaranteed to ensure their charge and the same price as Waitrose until now hasn't gotten in on that. But they've obviously decided that even the hallowed Waitrose consumer is also worried about prices going up, so it is interesting to see them taking this action

as well. Yeah. Plus also on the kind of paying for things side of issues, Yeah, slightly to but should have brought an electric vehicle. I'm certainly kicking myself when I look at the data that we've been reporting on this morning. It's Tom Tom data, but apparently London second only to Hong Kong in terms of how expensive it is to drive a petrol vehicle more than two thousand, five hundred quick last year. It makes you think, certainly,

walk a bit more. Stephen up next Sooner considers backdating pay. Barsonaro plans a return to Brazil and a two billion dollar lottery win. Now the paper review on Blue Birddaybreak Europe. The news you need to know from today's papers. I thought we've got a lottery win in today's newspapers will get to that well. I suppose it's a fun story. A bit later on Blue Bakeley and Karen's is here with details. Let's start with the meet the serious staff

for the report in the ft. The headline we she soon like explores public sector paid deal that back dates wage offer. Yes, indeed, Caroline, good morning to you. So the Prime Minister and the Chancellor, according to the FT, are exploring this pay offer, and this is really to try to end the way for public sector strikes that

we have seen here for months. According to the paper, to try to sweeten this pill, Richie Soon, I can Jerry me Hunt are considering giving workers a lum sum of money by back dating next year's pay rise, which takes effect from April probably to the start of January three. Now we did hear ripples and a few rumors months back about this back dated pay but now after weeks of deadlock, it's really important to clarify that no final

decisions have actually been made as of yet. However, the newspaper highlights that these talks do reflect fears currently brewing in Downing Street that the waves of strikes could run on for months and months. And remember we're not that far from an election, and public sector pay awards for two and twenty three were around five percent and inflation actually stood at ten point five pc back in December, so way above those public sector pay awards, and there's

going to be more news on the inflation front. Today we get the UK headline CPI growth and that's scene is slowing to ten point three percent in January from that figure in December, and that's due to weaker fuel prices, even though it is expensive in London to drive, like you just mentioned. I just think tenuous link. Yes, no, it is. I also just think it's isn't it's clever that this is how potentially the government would get around the idea that the Prime Minister has said that he

doesn't want to reopen the pay negotiations for pay this year. Well, if it's about next year's pay, that is just backdated. It's a little bit of wiggle room in the language, isn't there. Yeah, I'm took me a minute to get my head around that idea. But I think I've gotten a know, so love somebody back dating next year's pay your eyes to the storage of this year. That is kind of essentially an advance on next year's pay rise. Right, I think I've gotten it now. Right, let's turn to

the World Street Journal next. We've all got it now, Stephen, thank you. Yes, I'm always the last. Turn to the World Street Journal next, Baltonaro says he will return to

Brazil and march to lead opposition. Yes, indeed, so the former Brazilian president Shayea Bolsonaro is planning his return to Brazil, and he said that's actually going to be next month, and he's planning to lead the political opposition to President Lula de Silva and defend himself against his accusations that he incited attacks by protesters on government buildings when he

was voted out of offers. Now, this is his first interview since leaving the top job with the Wall Street Journal, and according to the paper, Bolsonaro was surrounded by bodyguards as he gave this interview in the US and said the right wing movement is not dead and we live on Balsonaro has never conceded that he actually lost that election, last year's election, and now was actually staying with friends

in Florida. Well, it seems that he's plotting. Has come back to Brazil, and Bolsonaro says he is eager to get home, but acknowledge those illegal risks he faced after he was accused by prosecutors of inciting rights in January with social media posts that did warn of a voter fraud echoes there to what may have happened in the US Caroline, but it does appear that Bolsonaro is plotting a return despite Lula da Silva being in power. He won by a slim majority, but still a majority. He

won exactly so in terms. Yeah, Also, they did have a nice photograph. Actually, I thought that they actually had a picture Barsonara looking relatively relaxed, I thought in the water Journal. And we've seen him go to KFC in all different restaurants while he has been staying in the States. Just put that out there. Interesting. The headline in the Times two billion dollar lottery win Edwin Castro is shocked

and ecstatic. Why did you want to highlight this newspaper story? Well, I want to highlight those because I think this is a very smart man. And the reason it's not just because he's won the lottery, but he actually has told officials that he wants to remain in private and has declined to release his age, occupation and also his address. But his name has now come into the forefront after he did win the biggest amount on the lottery ever, I mean, what are you going to do with two

point zero four billion dollars. Yes, do you. Oh well, I'm sure, but he actually scooped that lottery win after buying a ticket at a convenience store in l A. So what a lucky guy. Now, Castro's win means that three of the ten largest tickets in US history have all been sold in California. That's just a tip. Yes, I've got my playing ticket booked hours ago, but that's just a tip bit for anyone who wants to buy

a winning ticket go to California. But I think this is interesting because I think to not actually release your age, occupation, and address is probably quite sensible. And I do agree as a sense of lottery that they don't don't stay sensible for very long. Yes, and tee. But the odds I mean of winning. I'm sorry, I'm still into the mathsphatism. Yeah, you're more likely to be hit by a meteor, rights, etcetera,

etcetera than than win. But yeah, really good. Thank you so much again for the roundup of newspapers this morning. Let's get back to some of the Central Bank action. Several FED officials stressing on Tuesday that interest rates may need to move to a higher level after US consumer prices rose by half a percent in January. That was the most in three months. We've got Bloomberg's Mark Cranfield from our Markets Life team with us for more market Mark.

Great to have you with us. Traders forced to rethink the Fed path after this inflation data. Yeah, it's been a very steady stream of hawkish Federal reserveial racist jobs data earlier in the month. But probably the most significant thing that's that's happened is that traders are finally taken out the potential rate cuts for later in this year.

For some time we were still pricing but the lower rates before the end of that's finally now being taken out of the market and seeing that yields arise everywhere, and people now are starting to price for the fact that the Fed could continue raising rates even through to June this year, which is a slight change from what

we've been seeing in recent weeks. So it's it's all starting to come home there and in the rates market and obviously other asset platists or we need to start paying attention to that because there was some people thinking that the Feds will go too far and it was going to have to reverse course quickly. But that really doesn't look as that it's going to be the case, and particularly equity market probably hasn't really noticed that just yet.

The rethink on inflation has been applied to many other global central banks though too. You know this is recalibrating for the fairs. Yeah, I mean, it's what happens there tends to spread to other places. So it's obviously the Europeans will be looking at it pretty closely, probably the Bank of England as well. It doesn't usually stop in one place like that, and obviously when you look at

the CPI data there were revisions higher as well. So though um, we're under a six percent how door now for for CPR, which is a slight improvement, they're still way too high and they put up some of the previous months. So there's no way as the inflation battle finished. As far as the feeders concerned. Europeans are saying similar things as well. Um, looks as though the seculation story, which we thought was the story, actually the three story, and it looks like he's going to go on for

some time. We've also been hearing mark from the governor of Australia Center Bank, Philip I was speaking to lawmakers in Canberra and much in his testimony for markets UM, he was indicating that he thinks a soft lending it's still possible for Australia, and the rates market took it pretty well. There was a rebound in the Australian bondom market on the back of that UM so as though they were thinking that he wouldn't have to go too

much further on interest rate hikes. He said the job wasn't finished, but they seemed to be indicating that there might not be too much more, maybe one, possibly too two more rate hikes in australa radio. But he does seem to have a bit of a communication issue because it was only last week that the RBA stunded very hawkish and since there he sees you backtracking a little

bit on some of the things he said. And it's been a little bit of the case over the past few months that the the r BA say one thing and then a few days later there's a different story going around and bond traders are having a very difficult time trying to figure out exactly what the RBA means. And you can see there's a lot of flip flopping in that market. So not an easy time to be

a bond trader in Australia. This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Streets and beyond. Look for us on your podcast speed every morning on Apple, Spotify and anywhere else you get your podcasts. You can also listen live each morning on London D A B Radio, the Bloomberg Business app, and Bloomberg dot Com. Our flagship New York station, is also available on your Amazon Alexa devices. Just Say Alexa

played Bloomberg thirty. I'm Caroline Hetke and I'm Stephen Caroll. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak Europe. M