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Stocks and bond traders are at odds going into today’s inflation data, major appointments in the US and Japan, and Ford cuts jobs in Europe [View in browser]( [Bloomberg]( Stocks and bond traders are at odds going into today’s inflation data, major appointments in the US and Japan, and Ford cuts jobs in Europe — [David Goodman]( Inflation data All eyes will be on the [crucial US inflation data](crucial inflation data) at 8:30 p.m. New York time. Expect fireworks in markets after that report, as investors immediately asses what it means for the Fed’s future policy path. The stakes are even higher as, for the first time in a long time, stock and bond markets are flashing [divergent signals]( on the economy and future Federal Reserve policy: bond markets have been cautious while stocks have been less worried. Today’s report will go a long way in determining which one is right. Major appointments President Joe Biden has decided to name Federal Reserve Vice Chair [Lael Brainard]( as his top economic adviser, with an announcement coming as soon as Tuesday, people familiar with the matter said. The president’s selection of Brainard to replace outgoing NEC Director Brian Deese places her alongside another high-profile former Fed official, Treasury Secretary Janet Yellen, as a crucial player on economic policy amid the continuing battle with inflation and as Biden prepares for a likely reelection campaign. Meanwhile, Japanese Prime Minister Fumio Kishida’s government [nominated Kazuo Ueda]( to helm the Bank of Japan on Tuesday. Eisuke Sakakibara, nicknamed “Mr. Yen” for his ability to influence the currency during his tenure as Japan’s vice finance minister from 1997-1999, says that may [pave the way]( for a rate hike by the fourth quarter. Ford cuts Ford will [cut about 3,800 jobs]( across Europe in the latest sign of industrial disruption caused by the global automotive sector’s shift to electric vehicles. Workers in Germany and the UK will be hardest-hit with about 2,300 and 1,300 positions to be eliminated respectively over the next three years, the firm said. Ford, which is shifting its model lineup in Europe to battery-only by 2035, previously said the lower complexity of electric cars meant it could cut staff from its product development teams. The company is also trimming jobs in the US as Chief Executive Officer Jim Farley targets $3 billion in savings to help finance a costly shift to electric vehicles. Stocks rise [European stocks advanced]( and Wall Street equity futures were little changed before the CPI numbers later. The yen jumped on the Ueda news, the pound climbed after UK jobs data and Treasuries rose a second day. Oil prices fell on a report that the Biden administration plans to sell more crude oil from the Strategic Petroleum Reserve. Gold rose. To catch up on the trading day in the UK and Europe, [check out today’s edition of Markets Today.]( How much in retirement savings is enough? Are you hoping to retire early, or plan to never retire? Share your views on our latest MLIV Pulse [survey](. Coming up… Alongside the inflation data, the US also reports real wages data for January. There’s also a run of Fed speakers to keep traders busy after the release, with Thomas Barkin, Lorie Logan, Patrick Harker and John Williams all appearing. Meanwhile earnings include Coca-Cola, Airbnb and TripAdvisor. Coming soon: The Next California newsletter examines the state’s economy, policies, businesses, and influence beyond its borders. Bloomberg’s 100 journalists across the Golden State connect the dots with exclusive reporting every Wednesday. [Sign up here](. What we’ve been reading Here’s what caught our eye over the past 24 hours: - UK wages rise more than expected in [added sign of inflation]( - Credit Suisse says rogue staffer took [personnel data such as pay]( - [Car prices hit record high]( as automakers limit output - An ex-partner at Joe Tsai’s family office is [starting their own fund]( - US crackdown seeks to push crypto back to [fringe of finance]( - India says China should take losses in poor-nation [debt rework]( - A United flight from Hawaii [plunged to within 800ft of Pacific Ocean]( And finally, here’s what Joe’s interested in this morning Hello and Happy CPI Day. One of the surprises of of the last year is that the rapid rate hikes put such a small dent in the labor market. There has definitely been some cooling going on, as seen in job openings and wages. Still if you had been told at the start of 2022 where the Fed was going to go, you probably wouldn't have guessed that the unemployment rate would fall to its lowest level in over 50 years. A popular explanation for all this is that a lot of the biggest drivers of employment are in industries that aren't particularly sensitive to rates. One sector that is sensitive, however, to rates is housing, and there we've seen a very sharp fall in activity as measured by housing starts and other measures of overall transactions. So to some extent, the idea of cooling the economy through rate hikes works like a bank shot through housing. Gotta depress that sector enough so that you create negative spillovers elsewhere and you get that broader slowdown. If this is the case, then it's worth being watchful for signs of housing stabilization and recovery. Yesterday, Mike Simonsen, CEO of Altos Research, noted that per his data [homebuyers are already "defying expectations"]( and already-tight inventory is already dropping yet again. Meanwhile, the number of listed properties [seeing price reductions]( has already fallen markedly since the beginning of the year. It's hard to know exactly what this means for inflation. But if the one sector of the economy that's most clearly linked to Fed policy (via mortgages) is already showing signs of stabilization, then that makes it harder to see where that recessionary impulse comes from. Follow Us You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](