Bloomberg - Evening Briefing - No more ‘hand-holding’

Fed Bank of Minneapolis President Neel Kashkari said Tuesday that January’s strong labor-market report shows the US central bank would need to keep raising rates to as much as 5.4%. Last week, the Fed raised its benchmark to a range of 4.5% to 4.75%. So by his reading, there’s still a ways to go. But JPMorgan’s Michael Feroli said markets “shouldn’t expect the same degree of hand-holding” from the central bank as it gets closer to its terminal rate. Earlier on Tuesday, the euro fell for a fourth straight session, its fastest slide since October, with investors likely building in expectations for a more hawkish Fed. The common currency dropped as much as 0.5% to 1.0669 against the dollar, the lowest since early January. It weakened even more against other G-10 peers, including funding currencies like the Japanese yen and the Swiss franc. —David E. Rovella

Federal Reserve Chair Jerome Powell stuck to the message that interest rates need to keep rising. Indeed, Powell floated the idea Tuesday that borrowing costs may reach a higher peak than traders and policymakers anticipate. “We think we are going to need to do further rate increases,” Powell told David Rubenstein during a question-and-answer session at the Economic Club of Washington. “The labor market is extraordinarily strong.”

In the aftermath of twin earthquakes that decimated parts of Turkey and Syria, both countries are struggling to cope with the scale of destruction. In northern Syria, an area that has been overwhelmed by death, destruction and displacement for more than a decade, people were trying to respond with limited resources. “This catastrophe is much bigger than us, we need the intervention of states,” said emergency response force White Helmets co-founder Ismail Al-Abdullah. In Turkey, the government declared a three-month state of emergency in areas struck by the disaster. Teams are racing against the clock to save potentially thousands of victims trapped in rubble across 10 Turkish cities. The death toll for both nations has topped 7,000, while more than 11,000 buildings have been damaged.

Though fossil fuel giant BP pledged to find ways to be more sustainable, soaring prices and limited supplies have turned its attention to a different kind of green. The company said it may pursue acquisitions to expand its oil and gas portfolio while scaling back promises to sharply cut output.

Germany, Denmark and the Netherlands will supply Ukraine with up to 178 older generation Leopard 1 battle tanks as Kyiv braces for a predicted intensification of fighting with invading Russian forces. Ukraine has been pleading for more weapons to arrive more quickly as Vladimir Putin throws tens of thousands of conscripts and convicts at the eastern front. 

German-made Leopard 1 tanks Photographer: Dursun Aydemir/Anadolu Agency/Getty Images

Hudson Bay Capital Management is said to be the anchor investor of the share sale launched by Bed Bath & Beyond in its bid stave off bankruptcy. The embattled retailer lined up investors for an eleventh-hour cash infusion. Hudson, a New York-based multi-strategy hedge fund, comprised the largest order among several institutional investors.

After a year grappling with rampant inflation that spurred big rate hikes, some investors are starting to see the possibility of a soft landing. But policymakers warn prematurely declaring victory would only cause more pain down the line. We asked three prominent investors, who collectively oversee almost $2 trillion, about the next big risks they see coming.

Brexit was a “colossal mistake.” So says former Tory Prime Minister John Major, who noted that while he isn’t a “significant Europhile,” he believes the UK was stronger when it was in the EU.

John Major Photographer: House of Commons/PA Wire

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• Iraq revalues its currency weeks after replacing central bank chief.
• Zoom is firing 1,300 people, some 15% of its workforce.
• Meta tells managers to code, design, research—or quit.
• A $4 billion accounting scandal puts a spotlight on PwC’s record.
• Lab-grown meat has a much bigger problem than the FDA.
• Will US home prices fall? The news from New York’s suburbs isn’t good.
• He’s back, and Adam Neumann of WeWork fame has a big new idea.

A multibillion-dollar startup with a “genius” founder has a very public fall from grace. The topic has spawned many a cover of business magazines and more recently a small flood of streaming series. Now it’s the plot behind a stage play, Brilliant Jerks, coming to London’s Southwark Playhouse this March. Playwright Joseph Charlton, of HBO’s Industry, says the play is about a fictional technology company. The takeaway? One “brilliant” idea can change millions of lives, and not necessarily for the better.

  Courtesy of Brilliant Jerks

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