My from the Bloomberg Interactive Brooker Studios. This is Bloomberg day Break for Thursday, February second. Coming up today, stocks extend the fed fueld rally. Now it's Europe's turn, with the ECB and Bank of England set to raise raids, met a share surge on track for their biggest game in a decade, and techernies continue with Apple and Amazon reporting today there has been an arrest in the attempted
fire bombing of the New Jersey Synagogue. Plus the US says it will increase its military presence in the Philippines. I'm Michael blar More Ahead, I'm John Stashward, sports reactor to the Tom Brady retirement. The nets cut blown out
in Boston seton Hall Beat. St John. That's all's trading ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and the round the world on Bloomberg Radio dot com and via the Bloomberg Business App. Good morning, I'm Nathan Hagar and I'm Karin Moscow. Here are the stories we're following today. It is all about
the FED this morning. Chair J Powell is vowing to keep raising rates, but it looks like markets don't believe him. Stocks are rising anyway. Instead, investors are hearing a more upbeat outlook on inflation, keying in on the central banks
failure to push back on the recent rally. Michael Gabon Astead of US Economics at Bank of America's securities if they really really wanted to push back again expectations of easing and financial conditions or cuts later, or just that they wanted to kind of, you know, reassert their intent, they could have gone fifty and they didn't. Bank of America's Michael Gapon says the Fed mayhike one more time
before pausing. Former Atlanta FED President Dennis Lockhart says that next policy meeting will be crucial and March will learn a lot, will learn a lot about how they actually see this play ending, meaning how they actually, when they're closer to it, see a stopping point, a whole period and an ultimately a Pivotly easy. Dennis Locker points out that j. Powell did not say the FED still has a long way to go. Right now, markets are pricing
in just one more rate hike this year. Well. Interest rates are also in focus in Europe, Nathan, we have a pair of policy decisions set for this morning, and we get a preview from Bloomberg's Leanne Garens. In London, the Bank of England and European Central Bank are both forecast to raise interest rates by fifty basis points. The BAW is expected to lift their main interest rate from three point five percent to four percent. Now. This will be its tenth consecutive rise. The debate within the ECB
may be more finely balanced, however. Euro Area headline inflation slowed in January by more than expected, but the core measure of prices held at an all time high. In London, I'm Leanne Gerens Bloomberg at daybreak, Thanks Lee and staying in Europe. Shares of Deutsche Bank are down two percent this morning. Fourth quarter pretext profit and revenue at the firm fell short of estimates, but chief financial officer James
von Molka says he is still optimistic going forward. We're still very pleased with the performance and don't see that as any signal about three. In fact, the momentum has really continued strongly in Deutsche Banks CFO James von Molka made the comments in an interview with Bloomberg. Deutsche Banks gains and fixed income trailed Wall Street for the first
time in ten quarters. Well back here in the US and Nathan Shares, a Facebook parent, Meta are surging their up almost nine percent following earnings, and we get the details live with Bloomberg. Steve rapp Abart, Steve, good morning, Good morning, Karen, and Nathan. Meta stock soaring in early
trading after Mark Zuckerberg touted reforms for the platform. I just think we're in We've entered somewhat of a phase change for the company where we just grew so quickly for like the first eighteen years of the company's growth, and it's it's very hard to really crank on efficiency while you're growing that quickly, Zuckerberg telling investors. Those changes include removing some layers of middle management and the use of AI to increase productivity. Met As sales fell four
percent last quarter but still beat expectations. Live from New York. I'm Steve Rappaport Bloomberg Daybreak. Steve. Thanks, it's gonna be another big day for tech earnings in the US. Today we get a preview from Bloomberg's Jeff Bellinger. Apple and Amazon dot Com are both scheduled to open their books
after the market's close. Apple has been dealing with supply chain issues that may have driven iPhone revenue down and sales growth may have been muted by the strong dollar, But Bloomberg intelligence as the negative foreign exchange impact should fade as the year goes on, and lost iPhone revenue should recover in the second half. Amazon's fourth quarter sales may have risen an anemic six percent. Gains from Amazon Web services have slowed, likely offsetting some of the strength
from online advertising and prime video. Analysts are expecting to hear that Amazon had its first unprofitable year since one fourteen. Jeff Budinger, Bloomberg day Break. All right, Jeff, thanks, Let's turn to India now, where shares of a donnie are down another twenty percent a day. More than a hundred billion dollars has now been wiped off. Got to mcdonnie's empire. Begin More from a Bloomberg Finance reporter Tom metcalf, I
think we are probably now in meltdown territory. So they sold two point five billion dollars worth of shares on Tuesday, and then they actually canceled that share sell because the share price had fallen so much after that, you know, basically the chare sales underwater. But this, for me says so much about India, India Inc. And obviously this whole kind of massive, hugely wealthy industry's built up around the Adorni's Bloomberg's town. Metcalf says, the Donnie's bonds are now
hitting distressed levels. Let's turn out to the debt debate in Washington, Karen. President Biden has held his first meeting on spending and the debt ceiling, sitting down yesterday with how Speaker Kevin McCarthy. First of all, I had a good first meeting. Um I shared my perspective with him, he shared it is and we can. We agreed to continue the conversation. Speaker McCarthy says he thinks he and the President can find common ground on the debt ceiling.
Terry Haynes, founder of Pangia Policy, says there will have to be a deal at some point. I think it's very much in Speaker McCarthy's interest to come out and be conciliatory. Leave it up to the White House to continue the known negotiations. Point Panjia Policies. Terry Haynes spoke with our Washington correspondent Joe Matthew on Bloomberg Sound On. You can catch the show weekdays five pm Eastern on Bloomberg Radio, or listen anytime to the sound On podcast.
It's twenty nine degrees in Central Park Love a mix of sunning clouds today in a high near forty degrees, losing the upper twenties tonight with a breeze. Now, let's take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael Bark. Good morning, Michael, Good morning, Nathan. The FBI says there has been an arrest after a man was seen on video in a ski mask, lighting a Molotov cocktail and throwing it at the front door of a Bloomfield,
New Jersey synagogue. Authorities identified the suspect in the temple near to meet attack as Nicholas Malandrados. The U S Attorney's Office says the twenty six year old from Clifton was charged with federal arson related charges. You will face a judge today. Mourners celebrated the life of Tyree Nichols at his funeral. The twenty nine year old died three weeks ago after video shows Memphis police beating him violently during a traffic stop. Vice President Kamala Harris sat with
the family. We are here on behalf of the people of our country and our President Joe Biden Um and we are here to celebrate the life of Tyree Nichols. Vice President Harris said, nichols memory will shine a light towards justice. The US and the Philippines have announced an agreement that will give the US a larger military presence in the Philippines. Defense Secretary Lloyd Austin spoke in Manila. This is an opportunity to increase our effectiveness, increase in
our operability. It is not about permanent but but it is a big deal. It's a really big deal. Secretary Austin says. The idea is to deter China's aims on Taiwan and boost the Philippines claims in the South China Sea, where China continues to increase its operations Israeli warplanes bomb parts of the Gaza Strip early today, after a bloody month of rising tensions between Palestinians and Israel. The Israeli Defense Force has said it's fighter jets struck a production
site for raw chemical material production. Stick a fork in plastic forks. In New York City, Mayor Eric Adams signed a new law prohibiting restaurants and delivery services from including single use plastic utensils, napkins, and condiment packages in food delivery orders unless you ask for them. We must have all said it, you know, we ordered something to take out and we wonder why is all this plastic? You know, utensu We go home, We have utensils at home, and
this was just a brilliant idea, Mayor Adams says. The new law takes effect in July. Global News powered by more than twenty seven hundred journalists and analysts in over one d twenty countries. I'm Michael Bard. This is Bloomberg, Nathan. Thanks Michael Bloomberg. Sports update brought to you by Try Stayed Out with John stash Ower Banks Nathan netson cethics in Boston. This game was decided very early Celtics jumped in front thirty five to seven. They led forty six
to nineteen at the end of the first quarter. That lead grew to forty nine. Boston won by forty six nine ninety six. Nick Since that overtime win last week in Boston have lost to the Nets and Lakers. Next Tonight, host Miami Seaton Hall for the second time this season, beat St. John's eighty four seventy two. The Pirates have won six of the last seven. The Red Storm dropped to four and eight in the Big East top rank PERDU one by twenty now twenty two and one on
the year. Second rank. Tennessee lost at Florida. Big free agent signing in the w NBA, Brianna Stewart was an m v P and Seattle want two championships there. She's coming to New York to play for the Liberty. Tom Brady's retirement announcement means Tampa Bay now needs a quarterback, so does Las Vegas. They've cut ties with Derek Carr. There were thoughts that Brady might go there hook up with Josh McDaniels, who he was with for many years in New England. Was also top of Brady playing for Miami.
His kids live there now, but ESPN reported Brady did not have any interest in joining a new team, that it was going to be either stay with the Bucks or retire, which he is doing. A family, my friends, teammates, my competitors, I could go on forever. There's too many. UM thank you guys for allowing me to live my absolute dream. That would change I think Brady insist this retirement, unlike last year's, is for good. He's got a ten year, three hundred and seventy five million dollar deal to now
analyze games for Fox. John stash Award Bloomberg Sports Live from Hoasted Coast from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius Examp, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hagar. The morning after a decision from the Federal Reserve, the Central Bank has dialed back interest rate increases as expected, with another twenty five basis point rate hike, and Chairman J Powell says the Fed
is making progress in getting prices back to target. Over the past year, we've taken forceful actions to tighten the stance of monetary policy. We've covered a lot of ground and the full effects of our rapid tightening so far are yet to be felt. Even so, we have more work to do. And now we're joined by Bloomberg opinion columnist Marcus Ashworth, and I guess that sets up the operative question, Marcus, how much more work does this FED have to do? How did you read the statement and
the news conference from Chairman Powell. Well, I think and it's it's on a strong view, but that the set is probably done hiking. I mean they may do one more. Certainly, if they've done fifty, I would have been more confident they won't do anymore. It doesn't make much sense, but you know, they could do another five. But I think that the juries out on that one there will really
will be data dependent. Um we've seen from some of the labor market data, particularly Jolts, that there is there is still a really tight labor market which is keeping them, um, you know, on a very much of a bias to Titan. But that's what we've shifted down to know, a bias the Titan rather than a planned definitive absolutely tiding. They know how the market works by going from seventy five down a fifty down. They know the market is expecting that they'll go to nothing as a hold path for
a while. Um, it may be after the next meeting, or maybe at the next meeting, but I mean we are, we've we can see the summit, we may be even at it. So I think that's going to filter through clearly. The way Power put it, which was fascinating, was that he knows the market's running ahead, he's put it down to a different view on inflation, and he's relaxed with that. That's the body language. I think the market realizes that
they are. They're not going to all of a sudden change and snap back that back that gap information expectations, and that's why the market ranny because it was It was interesting, wasn't it, Marcus to hear the chairman not really pushed back too hard against the looser financial conditions that we've seen of late. Is that the main reason why you're thinking that there's a bias tour the hike as opposed to a plan. Yeah, well we saw it from the mark of Canada. I've been thinking it for
a while. I just that wasn't quite sure, how scary j Powe will be. Bear in mind he was absolutely horrifying at Jackson Hole and he you know, he's he has scared as before and so he can never be a hunter of per cent. Sure, but he he was. He was relaxed, mellow, He's going to watch and wait, see how things are coming along. So I think you know, they're just in a bias of time mood now and that's uh. You know. He also didn't push back as everyone was expecting that the fact that the markets pricing
and rate cuts by the back end of this year. Um, I would have thought he would have been much much harsh on that. He wasn't, So I guess you have to view it is cautiously calmly dubbish. And I think that Southern market reaction is uh, he's not too worried about financial conditions not being as tied as he might have wanted. So a bit surprised. Um, so I would say, oh, we're all dubbish though, it's just that they really want
to wait, watch and wait. Does this leave room for a surprise from what we're gonna hear today from the Bank of England and the European Central Bank it seems like the markets have priced in even more aggressive rate hikes. And what we got from the Fed yesterday, well, I mean, the the ECB needs to hike more because they were much much later to the party and obviously they had much harsher inflation. But we are definitely seeing signs of
inflation turning down in Europe. So um, and the question will be, I mean, we're pretty certain that the c B are going to hike fifties, whether they talk, they are definitely going to hike f the next time. I'm not so sure they will be able to, but and the Fed has definitely made room for them. They will be very happy about how the Fed at places. It gives them a lot more room. You can see the
strength of the euros. For dollars to one ten you will to slip below parity and a few months ago, so the last six months of the euro has been much much stronger. Um. That will help, I think in tening conditions in Europe. At the same time, they're about to start que set of tightening and the beginning of March, and the balance sheet for the ECB is actually collapsing quicker than the Feds. So you know, in some senses,
the d CBS catching up a lot of steam. A fifty basis point hike today will now that gap to the to the the U S, which is hence by of the euro so strong. So the question is where they will need to do more after this. I don't think they will. I think they'll drop back to twenty five, but they won't be able to show any weakness and they'll be all all harsh and what have you. The Bank of England, well, we could have almost any result, Nat,
and it's quite extraordinary. Bear in mind two of the Monyitment Policy Committee voted for no change last time, but the committee overall vote at the fifty basis points in Serrie, you could think that they would deflogie for a coup today. I'm sure they won't, but all sorts of possibilities could be up there. I'm expecting fifty bought for them to say this is pretty much it. However it could be
twenty five it commute, we just don't know. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three oh in New York, Bloomberg in Washington, Bloomberg one oh six one
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