5 things to start your day

Facebook earnings, huge day for monetary policy, and inflation worries continue. Tech earnings After reporting the first ever stagnation of [View in browser]( [Bloomberg]( Facebook earnings, huge day for monetary policy, and inflation worries continue. Tech earnings After reporting the first ever stagnation of user growth on its Facebook social network, and giving a disappointing sales forecast, shares in Meta Platforms Inc. [collapsed after the release](, and are about 20% lower in pre-market trading. The plunge comes after major tech shares had put in a [very strong performance in recent days](. With several other social media companies falling in the wake of Meta’s results, that rally is [now under threat](. Investors looking for solace will have to wait until after the bell for Amazon.com Inc.’s report which is expected to show margins are being squeezed by labor shortages. Central banks Today’s very busy session for monetary policy kicks off in Europe where the Bank of England is expected to announce an [increase in its benchmark rate to 0.5%]( at 7:00 a.m. Eastern Time. The decision will be followed 30 minutes later by a press conference with Governor Andrew Bailey. While the European Central Bank decision at 7:45 a.m. is [not forecast to show any policy change](, President Christine Lagarde’s comments at the press conference at 8:30 a.m. will be [closely monitored]( in the wake of yesterday’s [surprise inflation print](. In the U.S., President Joe Biden’s nominees for the Federal Reserve Board have their confirmation hearing before the Senate Banking Committee from 8:45 a.m. All three said in their prepared remarks that they place a [high priority on tackling inflation](. Inflation worries Speaking of inflation, data from Turkey this morning showed prices rose an [annual 48.69%]( through January as the country’s central bank pursued [unconventional monetary policy]( and energy prices rose. Globally, there is little sign of inflation dropping off the worry-list any time soon. Data from the United Nations this morning showed worldwide food prices [jumped toward a record high last month](. In the energy space, there is some relief as oil moves lower, with a barrel of WTI [close to $87]( this morning. There continue to be hopes that a [diplomatic solution]( can be reached to cool tensions over Ukraine. Markets drop Yesterday’s surprise results from Meta dominate the tech sector, while Asian trading remains quiet as the Lunar New Year holiday continues. Overnight, Japan’s Topix index closed 0.9% lower. In Europe, the Stoxx 600 Index was down 0.8% by 5:50 a.m., with technology and travel companies among the worst performers. S&P 500 futures pointed to a [drop at the open](, the 10-year Treasury yield was at 1.77%, gold slipped and Bitcoin added to [yesterday’s losses](. Coming up... Initial jobless claims numbers at 8:30 a.m. are expected to show a decline from recent highs. The final reading of January Markit PMIs for the U.S. economy are at 9:45 a.m. ISM services for the month and Factory and Durable Goods orders for December are at 10:00 a.m.  Biogen Inc., ConocoPhillips, Eli Lilly & Co., Merck & Co., Activision Blizzard Inc., Ford Motor Co. and Pinterest Inc. are among the many, many companies reporting today. What we've been reading Here's what caught our eye over the last 24 hours. - Odd Lots: Eva Beylin on eGirl Capital, The Graph and [building Web3](. - Beijing’s [assault on Apple Daily]( is a Hong Kong cautionary tale. - Bulk shipping rates [plunge 75%]( on evaporating Chinese demand. - DeFi project known as Wormhole hit with potential [$320 million hack](. - It looks like there’s a whale [snapping up gold bullion]( below $1,800. - Jeff Bezos’s new superyacht to force [dismantling of Dutch bridge](. - Scientists engineer new material that can absorb and release [enormous amounts of energy](. And finally, here’s what Joe’s interested in this morning There's more to inflation than just new and used cars. However, [the auto sector remains]( a substantial upward contributor to the big indexes. The good news is that there are some green shoots for the sector, indicating that supply is set to grow, and that should help prices ease. Three makes a trend, so here are three data points from this week. 1. Annualized new car sales jumped nicely in January, per Wards. It's just one month, but it's a substantial jump and reverses a steady decline in sales since last spring. 2. GM says its production is ramping up and that it [sees more easing on the horizon](, from a semiconductor standpoint. Here's what CEO Mary Barra said on the company's earnings call: "...we're seeing, definitely seen improvement in first quarter over fourth quarter. We saw fourth quarter better than third quarter, and we really see with the plans we have in place now, by the time we get to third and fourth quarters, we're going to be really starting to see the semiconductor constraints diminish." 3. As for used cars, it will still be a few days before we get the next reading of the Manheim Used Vehicle Index. In the meantime, the app [CoPilot]( says that based on its data, used-car prices are starting to soften. In a press release they state: Prices for 2015-2021 used cars (those most affected by the new car inventory shortages and demand spikes) have risen 43% during the pandemic. Prices peaked in the two weeks following the Christmas holiday and have shown consistent price drops for the final three weeks of January. Already, prices for these vehicles are down 1.4% on average from their post-holiday peak. ... The rapid drop in nearly-new vehicle prices is most dramatic in 2019 and 2020 vehicles. Since their holiday season peak, prices for 2019 vehicles have dropped by 2.5%, while prices for 2020 vehicles have dropped by 4.4%. These price drops are driven by dealer inventories increasing significantly while retail sales for these model years have simultaneously been softening. In recent weeks, dealer inventories rose 15% for 2019 vehicles, and 22% for 2020's. We'll know soon enough whether their data is corroborated by Manheim. The rise in car prices has to balance out eventually, though people have been predicting that for a long time. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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