More Fed Rate Hikes Ahead: Nvidia Surges

a tornado in New Jersey this week. Plus the NTSB releases its preliminary report today on the Ohio train derailment. Michael Barr More ahead, I'm John Stash, Aaron Sports. The Islanders beat the Jets, the Rangers play tonight, college basketball wins for Saint John's and portam. That's all straight Ahead on Bloomberg day Break, The business news you need disturn your day in just one fifteen minute podcast each pointing on Apples, Spotify, the Bloomberg Business app and everywhere you

get your podcasts. Good morning, I'm Nathan Hagar and I'm kieron Moscow. Here are the stories we're following today. We begin with the latest reaction to the minutes from this month's FED meeting, officials expect more interest rate hikes will be needed to curb inflation. Still, almost all officials backed slowing the pace of the encreases. New York Fed President John william says it is critical the Bank remains committed to its two percent inflation target. Price stability is, in

fact the foundation of economic prosperity. Without price stability, all of the other goals that we have, whether maximum employment or low and stable or low interest rates, can't be accomplished.

So that's an absolute imperative for US. New York Fed President John william says demand for goods may keep inflation from falling as quickly as sum of expected bets on the Fed's policy rate are almost fully pricing in quarter point increases at each of the Central Bank's next three meetings, Well, Nathan, the Fed and investors will have a couple more key economic reports to analyze this morning. Revised data on fourth quarter economic growth and weekly jobless claims, and Bloomberg's Vini

Deale Judais has more. In its initial tally, the government said the US economy expanded at a two point nine percent pace in a fourth quarter a tax slower than the third quarter but respectable. Nonetheless, Bloomberg Economic says today's revised data could signal weakness and trade, though the headline will remain healthy. Turning to the labor market, jobless claims of help below two hundred thousand for five weeks, running

at historic lows. That's the US economy's best protection against recession. Annie del Judais Bloomberg day break, All right, Vinnie, thank you. Meantime, Treasury Secretary Janet Yellen says the economy around the world is improving. It's fair to say that the global economy isn't a bitter place today than many predicted just a few months ago. In the full many were worried about a sharp economic sludam across the world. Jellen made those

comments in India, where G twenty leaders are meeting. She also says the US intends to quickly nominate a candidate to lead the World Bank. The official nominating process to replace current President David Malpass begins today. I'm back here in the US, Nathan. We're seeing further signs of weakness in one of the key sectors of the economy, the housing market. According to Real Estate brokerage Redfin. The total value of homes declined by two point three trillion dollars

in the second half of twenty twenty two. That's a four point nine percent decline, the biggest drop since two thousand and eight. The median home sale price in the US was three hundred eighty three thousand dollars last month, down from a peak of four hundred thirty three thousand in May. On the earnings front, Karen's shares of Nvidia are up eight percent in early trading. The chip maker gave a bullish revenue outlook for the current quarter. We

get the story from Bloomberg's Charlie Pellett. It suggests that it's push into artificial intelligence processors is helping offset weakening demand for personal computer chips. Of a company who has parlayed its dominance of graphics processors into a strong position in the growing market for AI hardware, It's chips excel at the kind of parallel processing that allows computers to make sense of large amounts of data and train software

to make decisions. In New York, Charlie Bloomberg, daybreak. All right, Charlie, thank you all Attorney to geopolitics now The UN General Assembly is set to vote on a peace resolution in Ukraine, with the one year mark since Russia's invasion coming up tomorrow, Bloomberg said, Baxter has a story. The vote is expected to take place at the end of the emergency session. US Ambassador the UN, Linda Thomas Greenfield says the effort is important. We should never give up on the potential

for diplomacy. Are the power of dialogue? Are the urgency of peace? She says. The atrocities cannot go on, the bombing of kindergartens and high schools and hospitals, the slaughters of innocent civilians. Greenfield says, Vladimir Putin chose the war. Now it's time to end it. In San Francisco, I'm at Baxter Bloomberg Daybreak. You added adding to the tensions, Vladimir Putin is pulling Russia out of New Start, the last nuclear treaty between his country and the US. President.

Biden says that is a big mistake, but he's trying to play down concerns that it poses a threat. I've not seen anything. We've not seen anything at where there's a change in this posture and what they're doing. The idea that somehow this means they're thinking of using nuclear weapons.

International content Bostick must there's no evidence of that. President Biden spoke with a VC News at the end of his trip to Eastern Europe where he bolstered NATO nearly a year into the war in Ukraine, and finally Nathan a look at the lack of gender equality in the workplace in the UK, only one in ten who run Britain's portfolios or women. Now. Veteran investor Helena Morrissey is setting her sights on tackling the lack of women in

top finance jobs as part of a special report. Morrissey has been speaking to WATCH about her new Pathway program and why diversity efforts so far have failed to move the needle. I do think there's an image problem that will look and they think, oh, if my management's not for me, it'll be very isolated to be a woman. It's kind of macho environment. And I think there is still though a bit of a sort of cultural impediment

as well. I think many men now in vestally in our industry really are just as frustrated as the women that we're not seeing more progress and Morrissey's program is currently working with sixty women from thirty three firms in a bid to increased gender diversity across senior positions in finance. Thirty eight degrees in New York. We are tracking that massive winter storm in the upper Midwest for US. It's going to turn partly sunny and mild today, going up

to near fifty five degrees. It'll be breezy down to forty tonight. Time now to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael var Good morning, Michael, Good morning, Nathan. The National Weather Service, asimated official, it was indeed a tornado that touched down in parts of

Mercer County, New Jersey Tuesday. The e F two tornado had estimated wins of up to one hundred and fifteen miles per hour and to our destructive path for almost six miles. The cleanup continues today. As you mentioned, Nathan, a massive winners storm is pummeling the central US. It has dumped record amounts of snow and canceled hundreds of flights. Storm warnings and advisories stretch across almost the entire northern US with the blizzard warnings in Minnesota and the Dakotas.

In the Chicago area, the ice made for dangerous road conditions. This motorist is in Antioch Lake County. The roads kind of got a lot icier. My driveways complete ice right now. About one hundred thousand people in the Chicago area are without power. NTSB Inspectors will release its preliminary report on the Norfolk Southern train derailment today. Almost forty rail cars ran off the tracks two weeks ago in East Palestine, Ohio,

creating a toxic spill. Today, Transportation Secretary Pete Budajage will visit the area. Yesterday, former President Trump was in East Palestine, telling residents that they are not forgotten. It's been weeks since Americans have been inspired. They've just watched this over the weeks. They've been inspired by your strength and your courage and how you've come together to stand up for the families in your area. Trump, also a presidential candidate,

handed out make America Great Again hats to residents. The Orlando community is reeling after multiple shootings, claiming the life of a nine year old child, a young woman, and a TV station. News employee who was on the scene covering the earlier shooting. Two more victims are in critical condition. Orange County Sheriff John Minus says the suspect in all three shootings, nineteen year old Keith Melvin Moses, is in custody.

At nineteen, he has a lengthy criminal history to include gun charges, aggravatedness, aggravated battery and assault with a daily weapon, burglary and grand theft charges. Sheriff Minus says that's unclear if he was targeting the news crew. A pack of headphone thieves are on the loose Manhattan. According to the NYPD, they are riding through on moopads and yanking Apple air pods Max headphones off unsuspecting pedestrians heads. They've struck more

than twenty times less than a month. Global nein Who's twenty four hours a day, powered by more than twenty seven hundred journalist and analysts and over one hundred and twenty countries. I'm Michael Barr. This is Bloomberg Naked, shaking my head. Thank you, Michael time Alf for the Bloomberg Sports update brought to by Trice State out of Morning, John Stanshower and gim Morning Nathan, We're getting closer to March Madness. Final four will take place in Euston. The

number one team in the nation is Euston Cougars. Last night one by thirty, they're twenty six and two. Alabama's ranked second Crimson Tide wanted South Carolina an overtime game winning hoop by their star freshman Brandon Miller. He scored forty one points. This comes just two days after police in Tuscaloosa revealed that Miller was once in possession of the gun that they say was later used in a murder.

He does not face any charges acc upset BC beats six ranked Virginia by fifteen, Big East Yukon by eighteen over prov Saint John's having a rough year, but Redstorm gotta win at Georgetown seventy nine to seventy. Also locally, Fordham survived to scare at Loyola, winning by two, and the Rams go to twenty two and six on the season. Iona has won twenty games of instrudn't see if the Gaels Hall of Fame coach Rick Patino moves on to

a bigger job like Saint John's or Georgetown. Reportedly Maryland, who wanted to hire Patino last year, but would have had to pay a large buyout, and there is no longer a buyout in Patino's contract. TV ratings for last Sunday's NBA All Star Game lowest ever. Denver's Michael Malone coached the game, called it the worst basketball game ever play. The NBA will return to play in some defense as it returns from the break tonight. Nickston NEETs have road

games tomorrow. Rangers a couple of losses since that seven game win streak. They played tonight in Detroit. Islanders last night bate Winnipeg two to one on a Simon Holtstreet goal midway through the third period. John stash Ellard Bloomberg Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. Rates need to keep going

up to get inflation back to target. That is the main takeaway from the minutes of the fed's latest policy meeting, which just how high they need to go in how quickly. That's still an open question for markets. So let's bring in Bloomberg Markets correspondent Valerie tied Tell to get some more takeaways from the latest Fed minutes. What stands out to you, Valerie, There was a few things. Notably, the discussion around the hike sized in between twenty five and

fifty basis points. A few wanted fifty basis points, so that implies that Bullard and Mester probably convinced one other person with win the FOMC, to go for that, and that was really kind of the hawkish risk for the market. The other things is that there were no mention of pausing. Powell kind of hinted in his Q and A that there was, but the minutes didn't really show it. The minutes also didn't didn't state the word disinflation, which Powell used repeatedly in that Q and A and in that

press conference, so that was surprising to me. The other thing was is that they focused solely on the upside risk to their inflation outlook as being key to their policy going forward. Remember, going into this meaning we had a string of softer than expected CPI prints, there was some expectation that perhaps they would discuss the downside risk to the inflation outlook and the policy that would entail from that. So another sign that data dependency continues to

be the mantra at this FED. Do we have a better sense, judging from the minutes, about what they need to see in the data to get to this idea of at least slowing down or pausing rate hikes. There really wasn't any clues in terms of what it would what they would need to pause. There was really no discussion of the circumstances in which they need to see that the data going forward, though. We do have the core PC on Friday. Piece is the Fed's favored measure

of inflation. It's what they use in their SEP forecast, their summary of economic projections, So keep an eye on that on Friday. And then following on Friday, we have five FED speakers due to speak. All three of the vocal hawks will hear from that's Mestered, Buller, and Waller. So it might be a fun Friday for the markets. Yeah,

yet more commentary from Mester. It'll be interesting to hear from her, in particular, given that we did see that a few market prints or FED participants were talking about the idea of fifty basis points. But in terms of the PCE valerie, there's been so much focus on wage pressures feeding into inflation. Do we have any idea from the people you're speaking to about what they expect to

see in that core inflation data feeds into wages. There is an expectation that the Friday's print doesn't come in hot. We've seen a lot of upgrades on the street in terms of banks upgrading their forecast. Ubs Goldman and a few others upgraded it to the core PC month on month from point four to point five, and that comes after that hot CPI and the hot PPI print. But for really for a measure of wage inflation, for wage pressures, we're going to have to look. Next week we get

an updated reading on the unit labor cost. It is going to be the second and final reading of that. But note the big revisions upward and that a few months ago led to a broad market selloff, So have an eye on that one as well. It's next Thursday. Now we'll also have an eye on who's going to be making these decisions. With one of the most vocal doves on the Federal reserve, Hile Brainerd, set to depart as Vice chair this week, and now we're getting some

clues on who could potentially be in line to succeed her. Yeah, there was a report out from the Wall Street Journal that discussed two candidates, both of which were economists under the Obama administration, one of which she co authored a peace in twenty nineteen that concluded that a three percent inflation target would have been better for the economy coming

out of the Great Recession. So you could you could imply from this that Biden is really looking for a Dove to replace Lale Brainerd in that pivotal vice chair seat. We don't know when we expect to hear this from Biden, but we do hope it soon. We know that the Fed canvens again in a month's time, and ideally that

vice chair seat would be taken by then. Although it is interesting to hear that idea of changing the inflation target when we've gotten some pretty strong rhetoric from New York Fed President John Williams, who is so influential on this Fed, that two percent needs to be the way to go. Yeah, he spoke last night and did discuss

that two percent inflation target. But also Powell has really pushed back on that idea that I higher inflation target would be more suitable, kind of saying that you don't change the goal pulse in the middle of a game. Maybe there will be time to review the inflation target, but it's not going to be in this current cycle until they get inflation back to target. That's kind of

been the words we have heard from Powell. I don't really see him shifting on that, but the fact that Biden would be pushing to get a dove into this seat, you know, it could change the discussion based on the timeframe at which they want to get inflation back to target. Powell has prepared us for it to be a long process, kind of implying that they're okay with inflation running hot for maybe a few months longer, if that means we

don't risk a hard landing. This is Bloomberg day Break 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,

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Listen coast to coast on the Bloomberg Business app, Serius XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot com. I'm Nathan Hager, Andy, I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak