UK Avoids Recession and Tech Layoffs Continue

Wallmakers are working on a single payer healthcare system in New York, and former Vice President Mike Pence has been subpoenaed. I'm John stan Shower and sports home wins for the Nets and Devils, a loss for the Islanders. Bryan day Ball named NFL Coach of the Year. Patrick Mahomes one m v P. That's all straight ahead on Bloomberg day Break, The business news you need disturb your day, and 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 kerin Moscow. Here are the stories we're following today. We begin with important economic news this morning around the world, starting in Europe, where the UK avoided a recession last year by the narrowest of margins. We go live to London and get the very latest with Bloomberg's You and Parts, Good Morning You, and Good

Morning Nathan and Karen. The UK economy failed to grow in the fourth quarter, but the reading of zero percent will come as a relief to achus sing That's government, as it means that Britain avoided a recession at the end of last year. The more timely data, though, looks worse, with economic output falling nor point five percent in the month of December alone, worse than forecast. With consumer prices ten percent higher than a year ago and widespread industrial action,

there are plenty of headwinds facing the UK economy. In London, I'm you in Parts in Bug Daybreak, Great You and thank You, and Asia the yen strengthening sharply. That's following news dec Zoo Waiter will be nominated to take the helm of the Bank of Japan in April. Begin more from Bloomberg's cousin Nori Takata into You. He served as one of the board members on the Bank of Japan from thousand and five. That was when the b O j for the first time embarked on negative rights and

quantitative easy. He's also known for voting against lifting of negative rights, and Bloomberg'ssinri Takata and Tokyo says investors are interpreting the decision as a hawkish choice for the b o J. Staying in Asia, Karen, we have economic data out of China this morning. The country's consumer inflation accelerated last month as the Lunar New Year holiday stimulated demand. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.

The CPI rose two point one percent from a year earlier. That was in line with estimates. Core inflation, stripping out food and energy, gained just one percent. In the meantime, the pp I fill zero point eight percent as commodity prices lagged. The estimate was for a drop of zero point five percent. Bloomberg Economic says the pickup in cp I was down to higher food prices, not services. As such, the signal is underwhelming in Hong Kong. Bryan Curtis, Bloomberg Daybreak,

All right, Brian, thank you. Well. Back here in the US, we get a reading on consumer confidence today. The University of Michigan issues. It's a national consumer sentiment index for early February, and economists anticipate further improvement to Bloombergy Sviny dewl Judais has more. January's consumer sentiment index rose stor nine month high sixty four point nine as the outlook improved, somewhat encouraging news following historic clothes. Even so, Bloomberg Economics

he is considerable downside risks. Two thirds of consumers are bracing for an economic downturn. Also on today's economic agenda, the Treasuries monthly budget statement for January Finny del Judais Bloomberg Daybreak Fanny Thanks. Turning to earnings this morning, shares of Lift are plunging by more than thirty three percent. The right hailing company says it will prioritize lower prices to attract more customers. We get more from Bloomberg Intelligence

see or analyst man Deep Singh. Lift, being the smaller player, has a little choice but to keep its prices low because Uber definitely has the advantage when it comes to scale of you know, writers, it has the number of trips as well as the driver's supply, and and that's what you're seeing in the results Bloomberg Intelligence Senior analyst man Deep Singh says lifts revenue projection for the current period also fell below expectations. Well in Europe, Nathan shares

of Adidas are down almost eleven percent. The German apparel company warrants it could post in operating losses higher seven hundred fifty million dollars this year. That's after terminating a lucrative branding agreement with the rapper Ya Karen. More job cuts are coming to the tech industry. Yahoo is eliminating about a thousand jobs beginning this week. That's roughly twelve percent of its workforce. We get the story from Bloomberg's

Charlie Pellett. It is the first round of cuts and a larger plan to restructure its advertising tech division amiddle way eve of layoffs in the industry, The company, now owned by Apollo Global Management, plans to reduce headcount. Had its Yahoo for Business at Tech unit by almost fifty percent by the end of this year, or more than

twenty percent of the workforce at Yahoo. Digital advertising providers have had to grapple with skittish customers who are concerned about the uncertain economic climate in New York Charlie Pellette, Bloomberg Daybreak. All right, Charlie, thank you. Now let's turn to the latest on the earthquake aftermath in Turkey and Syria.

The death toll has now crossed twenty two thousand. Thousands more remained missing, but just this morning six people were pulled alive from the rubble and Turkey dedemed American as deputy executive director for Oxfam and Turkey, and she says the disaster area is huge. It had ten provinces, so it's a big geography and thirteen million people were impacted,

so you know, it's a big population. So first of all, the neath are too much and ox FAM's deedom Americans as many survivors who are afraid to go back to their homes due to aftershocks. Turkey's government is facing growing criticism over the earthquake response and the country's poor construction record. It is fifty eight degrees in New York going to be partly sunny, breezy and mild today. High's pretty much where they are right now, and we'll get down to

the mid thirties 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 Amy Morris, Good Morning, Amy, Good Morning Nathan. Former Vice President Mike Ben's, and former National security advisor Robert O'Brien have been subpoenaed in the

Special Council investigations of Donald Trump and his allies. Special counsel Jack Smith is investigating efforts by Trump and others to overturn the presidential election and the discovery of classified documents that were found at the former president's Mara Logo resort in Florida. Lawmakers and labor unions are working to amend a long time bill that would establish a single payer healthcare system in New York as budget talks are underway.

The so called New York Health Act would create a universal health care system and cover all primary, preventive, and specialized medical care for all New Yorkers, regardless of immigration status. It would be funded through an income based graduated tax based on a person's ability to pay. New York One reports the plan is different from the Affordable Care Act. It eliminates insurance companies as the core of the system. Talks are ongoing. Governor Huckle's office did not respond to

questions about the governor's position on the bill. A handful of Senate lawmakers were briefed behind closed doors yesterday by Defense Department officials and attorneys on the Chinese balloon that was shut down off the coast of South Carolina last week. Democratic Senator Chris Murphy of Connecticut says intelligence gathering was critical. Maybe some people don't think it's valuable to collect the intelligence,

um I do. I think it made sense for us to learn something about this balloon, given that it really posed no threat to the United States. Senegun officials say the balloon was first detected over Alaska, but they waited to shoot it down so they could gather intelligence about it. In Battled New York Congressman George Santos would have been one of those briefed on the balloon. He was not, as he is facing a new measure to get him

removed from the House. California Representative Robert Garcia is joining New York Congressman Richie Torres and Dan Goldman. They're sponsoring a bill to get Santos removed. They say the measure will be referred to the Ethics Committee. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in over one d twenty countries. I'm Amy Morris. This is Bloomberg Nathan. All right, Amy, thank you time now for our Bloomberg Sports Ubday, brought

to you by try stayed Outie. Good morning, John Stash, Our morning, Nathan. Super Bowl fifty seven Sunday in Phoenix, Chiefs and Eagles. And obviously a big storyline is that Andy Reid is coaching against his former team fourteen grade years there. I loved every minute of it. Um. It's a great organization. UM, and I still I'm close with the people there. It was great to see the kids that we had drafted, uh that are now these veteran players,

all pro. Chiefs and Eagles have together won only three of the fifties six Super Bowls read in the Chiefs one three years ago, the Eagles two years before that. This first super Bowl in forty years between two teams. We've both won championships within the previous five seasons. Postseason honors handed out last night in Phoenix. Patrick Mahomes a runaway choice for m v P, only the tenth to win it twice. Brian Dabo rewarded for getting the Giants

to the playoffs. He beat out Kyle Shanahan for Coach of the Year and two Jets one Rookie awards. Garrett Wilson on offense, Sauce Gardner on defense. Former Jet and Giant quarterback Geno Smith, now with Seattle, named the Comeback Player of the Year. To former Jets name for induction to the Hall of Fame. The Great cornerback dar l Reeb has made it in his first year of eligibility. Played eight seasons, two different stints with the Jets, and Joe Cleco had twenty sacks back in one. He was

named by the vet of in his committee. Another home game for the Nets their third and four nights, and they gotta win one sixteen one oh five over Chicago. Spencer Dinwoodie, just acquired in the Kyrie Irving trade, scored twenty five points. Zach Levine had thirty eight for the Voles. There was a hot rumor yesterday that he was going to be traded to the Knicks. That didn't happen. On the ice, Devils beat Seattle three to one. Islanders lost to Vancouver six to five. On the Rangers have acquired

veteran Vladimir Terra Senko from St. Louis. He's had six thirty goal seasons. John Statutward Bloomberg Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius x AM, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. We're taking a closer look now at a bit of a surprise coming out of the UK in terms of the economic data. Britain just barely avoided

a recession last year. That's despite the cost of living crisis and the strikes we keep hearing about in the UK that have been going on for months now. And Andreta is an economist who covers your Forest and Bloomberg Economics, and Anna is here with us now. Good morning, Anna, thanks for being with us. So the gross national product we're told was flat in the fourth quarter, so technically not a recession, but I'm sure that does not change how the economy feels to the average citizen in the UK.

Good morning. So yeah, I would say that's that's exactly it's um so essentially growth platons in the last quarter of the year, and there were a couple of reasons for that. So one was that, you know, the vaccines were rolled out, the vaccine campaign in the autumn was rolled out and that drove up health output. And also there was something related to the timing of an extra national holiday, and so those are the kind of reasons that you know, helped the UK avoid contraction in the

last quarter of the year. But I would say that, you know, the broader picture is that momentum is weak. You can see in the data that consumers are already feeling the pain from high um, high inflation, humor facing servant since for instance, up fallen by one percent since y cole Um. So I would say that the recession was avoided on paper only, and the outpoot isn't also

looking very good. Yeah, and I would imagine that it doesn't just feel like it on paper, but it feels like it in the average citizens feelings about the economy as well. What is it behind the data that you're seeing that points to the possibility that we could see even further economic downturns in the UK and the months to come. Yeah. So so so there's a couple of things.

So I mean, first of all, um, we had the p m I pro January and that came in pretty weak to that pointed to another monthly contraction at the start of the year. But then you have just underlying weakness that it's driven by, you know, interest rates are increasing. UM. Delivery market has been very hot over you know, the over twenty two, but now you see in the data that there are signs of cooling and that it's likely to kind of you know, translate into redundancies this this year. UM.

And so that's together with you know, wrising interest rates. UM, it will drive some witness in the economy and we actually expect the GDP to call over the next two quarters. UM. Now I would say that, you know, like for historically this kind of downturn won't be as severe as in the past. So we see since the third quarter of twenty two, we actually see the falling GDP of just

about point seven percent. And just to give you like a comparison, output fell by six percent during the downturn in the financial crisis and by three percent in the so you know, prospects aren't great, but also this recession won't be as bad as as as previous one. If that forecast holds, and what could that mean for the Bank of England the last time around. I think they hiked by fifty basis points have been a little bit more aggressive than the Fed is looking like it's going

to be up to this point. What does that mean in terms of where the right hike path could go for the Bank of England going forward. Yeah, so the economy was was a little weaker than the VOE had expected, so it had in its forecast. We've had point one percent gain for the last quarter of the year. But I mean that's that's not going to move the needle on the committee. First, the BOE knows that the economy

is we is weak and it's weakening. It's forecasting a recession over this current year and all the way until the first quarter of twenty four UM. But secondly and most important is that what they're really concerned about is underlying pressures in the economy. UM. So they were clear. So they did signal at their last meeting that they were reaching the end of their hiking cycle, but they

still kept the door open for further hikes. And what they will be looking at is the risk of inflation persistence, so they will really be looking at how fast the labor deliver market cools down and how services inflation fairs over the coming months. And we just don't think that those two things will turn around meaningfully by the next meeting um to you know, to persuade the committee to stop just yet. So we still see rates going up.

I mean, there will be a downshift. We expect an increase of twenty five basis points in March from the fifty you mentioned, but but we just don't see them pausing just yet. Only about thirty seconds left here. And I understand the government can't say what the impact of strikes has been on GDP, but can you is there any impact on the strikes it is so it's been, it's it's it's hard to measure, but the ons in its the Certificate Office and it's a GDP release did

point to some weakness attributed to the strikes. UM We think that you know, strikes um since over the last quarter of the year had kind of left GDP point two percent lower than it would have been. But you know, any kind of hit to the GDP due to the strikes will will then kind of be you know, gained after so or there will be a rebound. So this is just a temporary weaknes. It's not really a permanent heap um to GDP, but it's definitely amplifying the weakness

we're seeing at this moment in the economy. 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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