Your morning briefing, the business news you need in just 15 minutes.
On today’s podcast:
(1) US President Joe Biden said he’s pushing for a six-week pause in fighting between Israel and Hamas to allow for the release of hostages, saying those conditions could lay the groundwork for broader peace.
(2) Bond traders have come more in line with the Federal Reserve’s trajectory for the upcoming easing cycle. Strategists at Citigroup Inc. say what’s missing now is traders hedging the risk of a very brief easing cycle followed by rate increases shortly thereafter.
(3) Arm Holdings soared again on Monday, extending a three-day rally that has driven its value up almost 100%, after a blockbuster earnings report last week showed artificial intelligence spending is bolstering sales.
(4) Regulatory reforms since the 2008 financial crisis cannot be blamed for the sharp discount in UK commercial bank valuations, Bank of England Governor Andrew Bailey said.
(5) Britain isn’t building enough homes and the shortage is about to get even worse. That’s based on calculations by Bloomberg News of government population data and homebuilding targets from the biggest political parties, which suggests a shortfall of almost 100,000 homes a year over the next parliament when including pent up demand from years of missed targets.
See omnystudio.com/listener (https://omnystudio.com/listener) for privacy information.
Bloomberg Daybreak delivers today’s top stories, with context, in just 15 minutes. Get informed from Bloomberg’s 2,700 journalists and analysts in 120 countries.
Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts
Listen to more Bloomberg Daybreak: Europe Edition: https://youtube.com/playlist?list=PLe4PRejZgr0PqNNpsYrggTdZUf8hA6-t5
#Bloomberg #Podcast #Europe #News
Visit us: https://www.bloomberg.com/podcasts
Follow Bloomberg Podcasts on Twitter: https://twitter.com/podcasts
Visit our other YouTube channels:
Bloomberg Television: https://www.youtube.com/@markets
Bloomberg Originals: https://www.youtube.com/bloomberg
Quicktake: https://www.youtube.com/@BloombergQuicktake
For coverage on news, markets and more: http://www.bloomberg.com/video
Bloomberg audio Studios podcasts radio news this is the Bloomberg Daybreak you podcast available every morning on Apple Spotify or wherever you listen it’s Tuesday the 13th of February and I’m Caroline hepker and I’m Steven Carol coming up today Joe Biden says he’s pushing for a six we pause in fighting
Between Israel and Hamas chip designer arm stock Rises by 29% in a single day and nearly doubles in less than a week plus lacking a plan we look at why Britain’s chronic housing shortage is about to get even worse let’s start with a Roundup of our top stories negotiators from Israel the
United States Egypt and Qatar are expected to resume talks in Cairo later to discuss a pause in fighting and the release of hostages being held by in Gaza by Hamas the discussions come as President Biden says he’s pushing for a six- week pause in the conflict the
United States is working on a hostage deal between Israel and Hamas which would bring a immediate and sustained period of common to Gaza for at least 6 weeks which we could then take the time to build something more enduring Biden’s comments were his most detailed yet about the ongoing
Negotiations between Israel and Hamas which the US is helping to facilitate on Monday Israeli forces launched strikes on the city of Rafa in the southern Gaza a strip where more than a million people have sought Shelter From the fighting many refugees fled the north of the territory after Israel launched its
Retaliatory campaign against Hamas for the group’s October 7th attack in the UK the labor party has withdrawn support for its candidate in the upcoming Rochdale byelection because of anti-semitic remarks the mail on Sunday newspaper reported that AAR Ali repeated a conspiracy theory about Israel and the October 7th attack Ali had a apologized
For what he’d said calling it deeply offensive ignorant and false but labor Pat mcfaden says that fresh information about other comments he made has now come out and since we learned about those uh K has considered the position and taken the tough but necessary decision to withdraw support from Mr Ali’s
Candidacy Pat mcfaden there the deadline to replace as our Ali has passed with the vote due on the 29th of this month a full list of the 11 candidates is on the Rochdale Bor Council website City group is warning that the market needs to price in the risk of
Future Federal Reserve hikes strategist at the bank say Traders should now be hedging the risk of a very brief easing cycle followed by rate increases the analysis from the lenders economists commer fed Governor Michelle Bowman says she doesn’t see a need to cut at the moment
I think it’s too soon to have an expectation that to to measure or project when and how much I think we might be lowering the policy rate I think the progress that we’re making on inflation is um is very um positive Michelle Bowman’s comments come ahead of
Today’s US inflation print out at 1:30 p.m. London time the data is expected to show that price rise has slowed to 2.9% year onye in January that would be the first reading below 3% since March 20 21 stock in arm has risen again extending a 3-day rally shares so by 29%
Closing at a record with the chip designer almost doubling in value thanks to the artificial intelligence boom Bloomberg’s Carol Massa says that the gains are being fueled by the firm’s projections that was fueled by that revenue forecast that the company put out specifically that far far exceeded
Uh the average of analyst estimate so it’s interesting there wasn’t anything specific today but investors continuing uh that three-day jump to more than 93% in arms so pretty remarkable Bloomberg’s Chief National correspondent Carol Massa there well the jump comes after a blockbuster earnings report which showed that AI spending is boosting sales for
Arm and other big beneficiaries in the sector include Nvidia whose sales tripled thanks to its AI accelerated chips it’s been just over four years since the UK officially left the European Union some economists say the country is still suffering the consequences Bloomberg’s Tia adabo has the details brexit shrank the British
Economy that’s according to economists at Goldman Sachs who say the UK has fallen significantly behind similar Nations thanks to the decision their research found the country’s real GDP has underperformed by about 5% reduced international trade and fewer migrants are included on a list of side effects that have contributed to the long-term
Cost of the move according to the Bank Goldman’s conclusion is broadly in line with other estimates about the drawbacks of brexit in London Tia adayo Bloomberg Radio Andrew Bailey says that Capital rules are not responsible though for the low UK bank valuations but he remains puzzled as British lenders trade below
Their book values the bank of England governor was giving a speech in the East Midlands saying that he believes more reforms are needed to protect Banks from runs like the one that broke silicon Valley Bank UK last year Bailey also dismissed UK recession concerns saying that any slowdown will be shallow the
News comes ahead of data out today that will show whether the UK economy shrank last year and finally clear skies here in London but in New York a snowstorm is expected to dump up to 20 cmers of snow on the city on Tuesday New York city mayor Eric Adams has urged residents to
Stay home and is closing schools for home learn earning instead we’re strongly encouraging New Yorkers if you don’t have to go out stay home and please use public transportation we want to minimize the number of vehicles on the road so that our apparatus and vehicles can actually deal with the
Removal of snow and make our movement in the city more feasible mayor of New York Eric Adams there warning New Yorkers not to go out today unless necessary the storm is likely to dis disrupt traffic and trains with flight cancellations and delays also so expected now in a moment we’ll
Bring you more on the ceasefire talks in the Middle East plus some exclusive Bloomberg analysis of the UK’s homeb building needs as well but first another story that caught AR ey this morning about a case of a super yacht uh under sanctions and the United States is
Asking for permission to sell it who knew that it would be so expensive to upkeep one of these enormous vessels but it is proving so costly that the US government wants to get it off its B even before the court case is over yeah the amade has been impounded in Fiji
Since April of 2022 it’s paying $600,000 the US government for the upkeep of the boat they’re saying the costs month are far from Modest far a month yeah um and the public shouldn’t have to pay them while the court considers whether to order forfeiture of the vessel the
Dispute is over the ownership of it the US government says that it is a Russian billionaire who is under sanctions that’s being disputed in court at the moment so it’s a question of whether or not uh The Vessel I suppose can be sold under those rules that were applied to
Russian figures after the Russian invasion of Ukraine as well um it’s a pretty impressive boat we’re talking about though worth some $300 million it has a helipad um and six decks among features W but I’m just wondering Al who’s I suppose who’s going to come along and snap up a bark in basement
Super yach I don’t know car your moment there we are yeah look a very interesting story around sanctions and the consequences of course of of what happens after those Russian sanctions well let’s get more details on our top story now and this pushed by the United States for a prolonged pause in fighting
In Gaza of at least 6 weeks to allow for the release of more hostages our EMA news director rosin maon joins us now for more morning to you Ros what more can you tell us first of all about this plan that we’ve we’ve heard about from the US
President well he didn’t give a lot of detail he just said that he’s pushing for this six week pause and again he’s been using the word pause versus ceasefire in the fight between Israel and Hamas in Gaza and that’s to facilitate the release of the remaining Israeli hostages um and that’s sort of
In line with what we’ve been hearing from elsewhere there’s been differing proposals for an amount of time six weeks to a couple of months even out to four months for a ceasefire but that’s not really the sticking point the sticking point of some of the conditions
That would be um included in that deal and the two primary ones that they seem to be unable to agree on what would happen to the Israeli troops in that scenario do they pull entirely out of the Gaza Strip or to certain areas of the Gaza Strip and is the ceasefire
Paving the way for a permanent ceasefire and is that the goal of any kind of short-term pause in the fighting and so what we’re seeing is perhaps the US is trying to coach both Hamas and Israel if they can’t agree on something like a four month or three or four month cire
At least to allow for something of a shorter duration particularly again to facilitate the release of those hostages yeah just remember about 100 hostages were released um in a week-long truce that ended on the 1st of December so that’s how long ago that that sort of um pausing fighting took place there are
Reports of a meeting um between the CIA mosad Egyptian and Qatari officials today is that a sign that the talks are serious how why is that important does it yield results was interesting to see that there’s another meeting we know that that’s happened several times we know
The CIA and Mossad have been talking regularly throughout um and it’s interesting to see again the role of uh the Egyptians and the qataris in all of this because they’re seen potentially by both sides as as good faith actors in all of it this is probably more to share
To share intelligence at the moment particularly around the location of the remaining hostages we know that Israel says that they managed to get two more of them out uh yesterday uh as while they were conducting those strikes on ruer near the Egyptian border um but we
Don’t know a lot about the rest of them including their location um you know their status how healthy they are and so on you can imagine that this is about sharing that information about their location in Readiness for a potential ceasefire deal which would allow them to
Kind of get get a hold of these of these hostages very quickly so it suggests at least again these efforts to keep the lines of communication open to be able to pass messages between Hamas and Israel um but there are those further sticking points more broadly for a
Deal Ros Joe Biden also had a strong warning for Israel and and it’s offensive on Southern Gaza which is a place where many people were forced to move because of fighting elsewhere in the territory as well how does that play into these bigger discussions around a ceasefire well that really is is the
Question there his efforts uh to S to make to try and get a deal done on a ceasefire um before Israel decides to proceed with the ground offensive uh into ruer again that’s that very sort of bunched up border area with Egypt and there were estimates of more than a
Million people uh in that area at the moment a bunch of refugee camps and so on Israel says that that’s also an enclave obviously for Hamas and so the impetus is you know this race to try and get an agreement on a pause in the fighting before the Israeli Prime
Minister Benjamin n know who decides it’s time to proceed um with a ground offensive inside rougher because if if his troops go into rougher then obviously any effort towards a ceasefire is off the table um at least for the short term so you know this this is why
There’s these talks going on in Cairo again today and these frantic efforts to get to this seire okay and a story that we will continue to track for our listeners rosin maton our EMA news director thank you so much for being with us this morning now here in the UK
Ahead of the two byelections on Thursday the country’s housing shortage is in the spotlight once again exclusive analysis compiled by Bloomberg show the 300,000 new homes per year Target promised by the conservatives in 2019 and later adopted by labor in the form of 1 and a half million homes over the next
Parliament isn’t actually enough and that’s because of a projected surge in population and the long running deficit in house building here to explain it all is our residential real estate reporter Daman Shepherd Daman good to see you this morning if 300,000 homes per year new homes isn’t enough how many do we
Actually need yes of all the things that labor and and the conservatives disagree on one thing they do agree on is that 300,000 300,000 homes a year is needed in the UK to start to solve the housing deficit that we have um it was in the 2009 conservative party Manifesto to
Target 300,000 homes a year um and the labor party towards the end of last year advised that 1.5 million homes um will be built over the next Parliament which averages 300,000 a year but we’ve put some calculations together based on Fresh population data that came out
Earlier this year and all of the M targets that we’ve had um over the previous Parliament and the reality is that we’d actually need almost 400,000 homes a year to make up for the shortfall uh during the conservative Parliament um and also the projected surge in population that’s coming in the
UK um so whoever wins the next general election may have to look at those numbers again um and factor in the only an average of about 200,000 have been built a year since 2019 so they’re going to need to roughly double that yeah I
Mean how easy is it to really do that I mean you know and we haven’t even included the fact you know 300,000 you know single unit Apartments is not the same as a big house that might house many people but look how is the government going to actually try to
Improve the house building numbers then yeah look I mean at least in the short term it’s going to be very difficult um we’ve seen a massive drop in the number of homes going under construction and fewer homes are being granted planning permission per year now even those with
Planning um of those about 300,000 potential homes are yet to even go on site in the UK because the numbers just aren’t adding up for the builders given inflation um and high rates so this all really points to things getting even worse on the home building front some
Might say the next government is inheriting a bit of a mess when it comes to the house building situation um so it’ be interesting to see see how they can tackle that of course we have those two votes this week in the constituencies of Wellingborough and Kingswood are those places where housing
Is going to be a big issue yeah well this all came to life in Welling brra in December last year um a homeless man who was sleeping in the town’s Park was found dead um on a night where the temperature dropped to freezing now during the pandemic the closest homeless
Shelter in Welling BR uh was shut down uh so the closest one now is a 30 minute bus Journey away um I had a chat to the mayor um of Welling BR who said there’s a lot of factory workers in the town who simply can’t afford a place to live um
And given the lack of Supply um demand is still high and prices remain elevated now the mayor admits that immigration is also going to be a big vote winner this year um when it comes to the byelection and that’s because of the link to housing when we go back to those
Population projections showing even more people coming into the UK um so housing and immigration are starting to sort of merge together in the these small towns as as as vote winners for politicians and sort of you know for people who really really are getting tired of not being able to afford a
Property this is Bloomberg Daybreak Europe your morning brief on the stories making news from London to Wall Street and Beyond look for us on your podcast feed every morning on Apple Spotify and anywhere else you get your podcasts you can also listen live each morning on London dab radio the Bloomberg business
App and bloomberg.com our Flagship New York station is also available on your Amazon Alexa devices just say Alexa play Bloomberg 11:30 I’m Caroline heer and I’m Steven Carol join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak Europe