5 Things You Need to Know to Start Your Day

Good morning. Markets are cheering the Fed chair, the BOE makes it own decision and Jamie Dimon has a warning for Texas. Here’s what’s movin [View in browser]( [Bloomberg]( Good morning. Markets are cheering the Fed chair, the BOE makes it own decision and Jamie Dimon has a warning for Texas. Here’s what’s moving markets.  —[David Goodman]( Markets cheer Powell Federal Reserve Chair Jerome Powell hinted the US central bank may now be finished with the most aggressive tightening cycle in four decades, a dovish pivot that has been [cheered by global markets](. “The question we’re asking is: Should we hike more?” Powell told reporters yesterday after the Fed held off on raising interest rates for a second consecutive policy meeting. “Slowing down is giving us, I think, a better sense of how much more we need to do, if we need to do more.” On Thursday, rates-sensitive real estate stocks[ led the advance in Europe’s Stoxx 600 index](, with the gauge set to rise for a fourth day, its best run since July. US equity futures pointed to an extension of Wednesday’s gains on Wall Street. BOE decision The Bank of England is also [expected to hold rates]( when it announces its latest decision today. Economists and investors see the Monetary Policy Committee leaving the benchmark lending rate at 5.25% for the second consecutive meeting, with new forecasts from the BOE thrust into the spotlight instead. Earlier, Norway’s central bank also kept borrowing costs unchanged, but hinted it still sees the policy rate being raised next month. Dimon warning Jamie Dimon said Texas [risks undermining its business-friendly reputation]( with laws designed to punish Wall Street banks for policies that limit work with the gun and fossil fuel industries. “Texas is a wonderful, welcoming place” for business, the longtime JPMorgan Chase & Co. chief executive officer said Wednesday. “The government’s done a magnificent job and that’s why you have the growth, why unemployment is so low, why people are moving companies and jobs here.” “I think it’s a mistake to damage it even a little way,” said Dimon. Dollar drops The [dollar weakened]( and Treasuries steadied after sharp gains following Powell’s comments yesterday. In Asia, the yen extended its gains from Wednesday, while the South Korean won led emerging-market currencies higher. In commodities, global benchmark Brent crude oil rose past $85 a barrel, after sliding around 5% over the previous three sessions. Coming up… Apple headlines a suite of US earnings later that also includes Starbucks, Moderna, Peloton and Coinbase. The US reports initial jobless claims numbers, as well as durable goods data, while St. Louis Fed  Interim President Kathleen O’Neill Paese is the lone Fed speaker. What we’ve been reading This is what’s caught our eye over the past 24 hours. - [Shell, BT and Sainsbury]( earnings help lift FTSE 100. - [Storm Ciarán](batters homes and power systems across Europe. - Goldman insider trader gets 3 years in [`squash buddies’ case.]( - Vanguard takes [final step to exit China](, dismantling last team. - World’s largest pension fund has [$4.5 billion quarter loss](. - Barclays CEO says Asia largely spared from [global job cuts](. - Kenneth Rogoff asks: [Why have emerging markets not hit a debt crisis](? And finally, here's what Joe’s interested in this morning Yesterday was Fed Day. Tomorrow is Jobs Day. So today is a little bit of a breather. In light of that, here is a quick smattering of things that are interesting to me right now. 1) With regards to the Fed. Yesterday's meeting was one of the least anticipated ones in a long time. And it delivered! It was pretty uneventful. There was no change, and Powell didn't make much news in the press conference. There was a notable question from Nick Timiraos of the Wall Street Journal about whether the Fed staff in preparation for the meeting were forecasting a recession. And Powell reluctantly said that the answer was no. There was also an interesting question about UMich inflation expectations (which ticked up in the latest reading) and whether that was worrisome. During the aggressive part of the tightening cycle, inflation expectations in the surveys were cited as a reason. This time Powell kind of downplayed Umich. So that might tell you something about where his head is at in terms of risks. 2) Also on the macro front yesterday [we got ISM Manufacturing](. It was not great. The headline reading came in at 46.7, which was well below the 49.0 that was expected. The employment sub-index also dropped sharply, from 51.2 to 46.8. Also in the anecdotal commentary part, there were many firms that talked about economic slowing. And none of the comments had anything to do with challenges hiring. 3) In the wake of the UAW's successful strikes against GM, Ford, and Stellantis,[raises are coming to Toyota workers](, even though they are not unionized. According to Bloomberg's Chester Dawson, starting January 1, most assembly line workers will get a 9.2% bump in pay. This is a theme this year. The gains from labor organizing don't just accrue to unionized workers. FedEx workers benefitted when the UPS gains for example. 4) Speaking of inflation expectations, there's this trope that basically it's totally influenced by gasoline prices. And maybe that's true. But if so, check out RBOB (gasoline) futures. 5) While we wait for tomorrow's jobs report, today we get Initial Jobless Claims, so that's a little appetizer for now. 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 Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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](. Want to sponsor this newsletter? [Get in touch here](. 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. 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