u.s. officials say the leader of the islamic state was killed when he detonated a bomb as american or disclosed in. there were no american casualties. house speaker nancy pelosi is more in all the big athletes to avoid acts of protest while in china for the winter games. the speaker reminded athletes they are there to compete and do not risk incurring the anger of what she called the ruthless chinese government. western tv networks broadcasting the games have come under pressure to address china's human rights record during live broadcasts of the opening ceremonies, and some athletes may not participate as a formal protest. putting food on the table is getting more expensive across the globe. united nations index of global food prices rose 1.1% in january, nearing a record it hit in 2011. experts say bad weather for

crops as well as an energy crisis could keep pushing prices even higher. the cost of meat, dairy, green, and vegetables rose last month. the only commodity where prices went down was sugar. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ matt: good afternoon. it is 1:00 p.m. in new york, 6:00 in london, and 2:00 a.m. in hong kong. welcome to bloomberg markets. here are the top stories we are following from around the world. tech troubles pummel u.s. stocks as investors react to disappointing results from meta platforms. ecb president christine lagarde is no longer rolling out an

interest rate hike this year, pivoting toward a tightening stance of global peers. we will discuss the impact with padhraic garvey, head of debt and rates strategy at ing. we are minutes away from the spacex falcon 9 the launch of a bunch of starling satellites. we will bring you full coverage. first, a check on what is going on in markets. after four days our rallies, we see the s&p falling pretty hard. 1.7% being dragged down by tech stocks. the nasdaq is off more than 3%. meta is the biggest loser. look at this drop, 26%, a loss of around 200 billion dollars in market cap in one day. that is the most that any company has ever lost in one day of training. in fact, more than most companies are worth david big drops for meta.

the u.s. 10 year coming back up to 1.829. investors letting go of a little bit of that debt. speaking of rates, let's get to something that caught my eye. it was decision day at the ecb and bank of england. the bank of england hiked its key rate, said that it was start running down bond holdings. meanwhile, european president christine lagarde is no longer rolling out an interest rate hike this year, which she had previously. this means the ecb is kind of getting the pack in terms of the global tightening regime. no surprise since we had inflation well over 5% or the entire euro zone, even higher for germany, considered the engine of european growth. for more on today's central-bank announcements, let's bring on

padhraic garvey, head of global debt and rates strategy at ing. thank you for joining us. what do you make of the ecb move? it was just a week ago, many thought that the ecb would not hike this year. issue job owning or issue prepared to do it? padhraic: thanks for having me. there has been a significant change in central banks over the course of 2022. boe hiked today, that that is gearing up. the ecb -- look, negative rates are not natural. if there was ever to be a period where there was an opportunity to move rates away from negative, it is now. the economy is doing well, growing strongly, inflation around 5%. i think from her perspective she had to move from where she was

in december, which was nothing to see here in terms of rate hikes, to a march meeting where there is a recalibration. that means things can change her mind. we think she is certainly queuing this up for a hike this year. matt: they are at -50 basis points right now. it is not unknown for the ecb to move in small increments, 10 or 15 basis points. is that what we are looking for? padhraic: two parts to this. the default rate is -50. that could be jacked up by 10 or 15 basis points to get slowly higher. in terms of the refi rate, which is traditionally the key rate, that probably goes up in increments of 25 basis points. they will start off with that and then slowly move us out of deep negative territory. by the way, futures are

discounting that moves in positive territory by the end of the year. matt: in terms of the differentials that we will be looking at for the bank of england, the fed, ecb, what do you anticipate, how will that affect euro-pund, euro-dollar, the cable rate, etc.? padhraic: it has been an interesting start because the u.s. has dominated the conversation up until the last five days. last five days we have seen a real pop higher in euro in u.k. rates. that is because the marketplace is beginning to discount the change in town at central banks. up until now, it has been dollar strength that has dominated. it is obvious why that is, the fed was getting serious about the rate hikes and the ecb wasn't. today there was a big move.

rates have ratcheted higher by 10 basis points. euro-dollar is up. it was threatening to go below 1.10, now threatening to break above 1.15. there is real calibration happening ahead of the march calibration. matt: can these banks contain inflation without pushing their economies into recession? anywhere that you expect us to see a contraction? padhraic: central banks this year will be very careful with regard to rate hikes. but let's be serious about this. they are behind the curve. central banks could not tighten st year because we were recovering from a pandemic. it would have looked strange for central banks to hike last year because governments have been spending heavily. the government was spending heavily because they had to, central banks had to facilitate that by keeping lending

standards loose. this year is different, there has to be a catch up. the thing the central bank has to be careful of is to be sure the system does not get hurt. so far, it's been rough for the system because we have been risk off. 25 basis points, slow measures. the trick from the fed and the boe's perspective is to get rates above 1%, and that it's about balance your production. matt: great to have your insight, appreciate your time, padhraic garvey, head of global and rates strategy at ing. on a programming note, something coming up that you don't want to miss. our monthly series chief future officer. the latest episode includes the mondelez ceo. we are also awaiting a spacex falcon nine launch. they will be shooting up i believe 49 starlink satellites.

we will bring you coverage. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. we are just two minutes and 20 seconds away from the spacex falcon nine launch. they will bring 49 starlink satellites to the kennedy space center in florida.

you can see the preparations and the countdown, live. we are going to bring and and love to -- ed ludlow. there is a definitive time window here. they have to hit this window or it is no go. >> this is what is called an instantaneous launch window. they need to put the satellites into a very specific orbit, synchronicity around the earth. that means the window is very precise. less than two minutes away. skies look beautiful. what they are doing is venting the byproducts, kerosene, liquid oxygen. skies look good. what they are looking for is any exclusion zone risk, aircraft coming into the exclusion zone without authority to do so, any kind of technical computer issue. if they launch late, they would

miss their targeted orbital path. this is another 49 satellites to a consolation that is more than 1500. star link network has global coverage already, but this is just routine at this point. matt: you are too young to know, but synchronicity is one of the best police albums. in terms of this rocket, are we looking at a famous piece of equipment? didn't they use this launcher to get some people up there? >> you are right, this is part of the economics of what spacex has done. this falcon 9 booster has taken up humans in two missions. astronauts were carried to the international space station twice, and then the booster was refurbished and reused. this is where we are now with spacex. approaching that magic moment, so let's listen in. >> 5, 4, 3, 2, 1.

lift off. [applause] >> over the next 60 seconds, the falcon 9, the first stage, the payload in the second stage, will approach supersonic speed, maximum aerodynamic stress or pressure, where the earth's atmosphere is thicker. we are using the energy from the kerosene to get out of the atmosphere. then that big puff of fire that you see coming out of the bottom, that engine will cut off. quickly, the booster will

separate from the second stage caring the payload and falls back to earth. i make it sound simple but it is literally rocket science. matt: they have been practicing that for a solid 50 years now, but it does not get old. i could still watch this kind of thing all day long. the difference you were pointing out earlier, these boosters are reusable. when they fall away, they will come down in a controlled landing, hopefully be able to be recycled. this is not only the kind of green portion of this but also the economically viable portion of it. how often have they been successful, have they lost boosters since they started doing this? >> i love running through these numbers. they are hard to get your head around. this is launch number 144 in the spacex program history. in that time, they have done 105

total successful testings and landings. if they are successful this time, 106. that is across a fleet of 82 different boosters. some do not get reused because they are damaged, but they have had no catastrophes since this started. in the next 20 seconds, that booster that we talked about will separate the second stage. there are bursts of cold pressurized gas to orient itself so that it can fall back to earth, using a resistance to slow it down. fins help to orient itself. that is what you are looking at from the camera. this is very routine, activity on a scale that legacy aerospace is not doing. and there you have it, the separation. matt: very cool. ed, thank you for being with us and walking us through that.

we will continue to bring you any headlines that we get. actually, since you are our main tech reporter on the west coast, let me keep you around. i want to pivot to the markets. they are doing the opposite of what we are watching this rocket do today, they are dropping big time. the s&p done 1.7%. the nasdaq down 3%. the problem is meta. the drought that we have seen for the owner of the facebook product is truly historical. a $200 billion market cap you raise in one session. we have never seen anything like this for any company. most companies are not worth that much in total. what can you tell us about the huge disappointment that was the meta earnings release yesterday? >> it appears to be twofold. if you read the note this

morning, it is the outlook principally. in the quarter just gone, the facebook app, growth has stopped, zero. the question is raised, has facebook reached peak growth? it is facing competition from tiktok and youtube which we heard executives talk about more candidly than they have discussed before. the outlook ties specifically to add revenue growth. that is being inhibited by the changes apple made to ios in terms of ads and privacy tracking. advertisers have choice. if you think about how robust google and alphabet earnings were. this does not bode well. the second part is the multi-year time horizon for the metaverse. we have to talk about that. matt: i spoke to ben this morning on my radio program with paul sweeney.

he drew some interesting parallels, possible parallels, between facebook as a rating platform that could fall from grace, and ibm. you pointed out to me that insiders at facebook call their product big blue. that is what old people used to call ibm. i also spoke with dan ives, and he was at pains to state the differences between the problems at meta platforms and the rest of the tech sector, saying this is a company specific issue and should not bleed over to amazon, apple, microsoft, etc. what do you think about especially that latter point? >> we have asked the question for a long time with the changes to the apple ios would mean for these companies, alphabet, snap. facebook has shown the most material impact. the other realization on the

metaverse, how it links to revenues, i guess the street. that top and bottom line contributions would come from the metaverse sooner. whatever happens with the legacy facebook product and how that is a driver of revenue, we thought it would get some support from instagram and video. but instagram reels is facing competition from tiktok. they pointed out the metaverse. the top line is not being driven by ads but the losses are being driven by the metaverse. the worry is that that is an ongoing issue for margins, which makes facebook a less attractive option. matt: another point that dan ives made, meta's platform, in his view, is a marketing move. they aren't really a metaverse company. i cannot see why facebook's

products would be any more related to the metaverse than google or amazon, apple, and all the others are getting in on this competition. while facebook changed its name to meta platforms, it will not necessarily be the winner in future revenue streams that we don't see yet of the metaverse. >> we are showing these beautiful pictures of the spacex lodge, but there is this mark zuckerberg quote that i woke up to this morning. i stood out there for 12 hours, i was there the moment they took the sheet off the new name. on that day he said over a decade, the metaverse would at some point reach one billion users, and have e-commerce transactions valued at hundreds of millions of dollars. millions, not billions. facebook's user base is around 4

billion. it reached annual revenue of $100 billion for the first time. they 10 year horizon where it only reaches of building users in the metaverse, revenue in the region of hundreds of millions, what i'm not understanding is why the street is putting out notes this morning saying this is decades away from being meaningful. zuckerberg said as such when they changed their name. matt: i have to say, you have no worklife balance, but not a bad thing because your work is so fascinating. you are all over ev's, rivian, silicon valley, tech and probably the most exciting time ever, and you are covering these rocket launches. we are looking at the booster come back. i guess we all want them to succeed? >> i speak to nasa officials. by the way, it is normal for the video feed to cut out what it approaches that drone ship.

you can hear from the cheers that it was successful you will see that image appearing. matt: 105. no, 106. >> every nasa official i speak to, every investor says every time spacex is successful, it's a boost to the industry. matt: it may not make jeff bezos extremely happy, but he is busy dismantling a bridge to get one of his yachts through. covering the most exciting stuff in the world for us out of san francisco, one of the most exciting cities in the world. from new york, i'm matt miller. . this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller.

we have seen a real reversal of the rallies that we had over the past four sessions. the s&p down 1.6%, being dragged down by the nasdaq. the 10-year yield arising at 1.8324%. the dollar index is down, crude is rising, but it is meta that you want to watch. losing $200 billion and then some of market cap. amazon coming out with earnings after the bell. the company is worth $1.4 trillion, now more than twice as much as facebook. amazon is down 6.5%. this is bloomberg. ♪

mark: welcome to the bnn audience. i'm mark crumpton with bloomberg first word news.

president biden said a major terrorist threat was eliminated during a raid in syria the leader of the islamic state was killed when he detonated a bomb as american forces closed in. there were no american casualties. the president is in new york today. he will join with bayer eric adams to support police and a crackdown on illegal guns. he will also meet with governor kathy hochul. senior administration officials told reporters before the trip that he would press conference -- congress to spend $300 million more in physical 2023 to higher police, $200 million more for community violence prevention programs. texas officials say they are confident the states power grid can avoid a repeat of last year's catastrophic blackout as a major storm sweeps through the region. they reassure texans there is more than enough capacity to keep power flowing even if demand for electricity and

natural gas soared to record levels. but they warned the icy blast could still cause local outages. on the next episode of quick take's emma barnett meets, a conversation with rev. al sharpton. he discusses the aftermath of george floyd's murder by police as well as faith and politics. >> i think we are in for a long season of confronting voting rights different sides of these questions. i don't know that we are going to be able to get to this dialogue of healing for a minute. i think this will play itself out. the election of joe biden, the four years of donald trump, has divided the united states more than i've seen it in my lifetime. mark: you can catch the latest episode tonight on

bloombergquint take at 8:00 new york time. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. jon: i'm jon erlichman. welcome to bloomberg markets. matt: i'm matt miller. here are the top stories we are following for you from around the world. as the housing market continues to struggle with inventory, we will talk to jocelyn moore from pretium on how it plans to solve the crisis. she goes from the sports betting industry to single-family rentals. and we get into the sports world with former nfl player terrel owens on his latest venture into nft's.

we look at why the company has destroyed 200 billion dollars market cap in one session. all that and more, coming. jon: the meta meltdown is a key story when we look at the averages. we are seeing weakness in new york and toronto trading, that tech influence. after four days of gains, everyone feeling rattled today. that 200 billion dollar market valuation essentially wiped away given the dramatic decline we are seeing today. that does get us to our for what it's worth segment. you think about the challenges for a company like meta. whether it is the competition out there, the challenges with apple, issues about how much they will have to spend to build

the metaverse. at the end of the day, digging deeper into those numbers, as we look at this history making decline. this could be the biggest collapse we have seen in a single day for a u.s. company. matt: absolutely stunning, i have to say. it really invites the question, what were investors in facebook thinking 16 hours ago? if this was enough to wipe out a quarter of the market cap, the whole business plan has to come into question. one of the parts of that, the spending of the metaverse, changing their name, but they don't expect to earn any significant revenue from. certainly not significant from a company that was worth $900 billion anytime soon. you have to wonder how important the core business has been to

investors' case over the last few months and years. jon: we have seen the company make changes before. when we were covering the company, they made that switch over to mobile. it will take a few years before we know what happens with the metaverse. certainly a lot to watch on that front. tech struggled in the face of higher interest rates. something else to think about with the housing market, also dealing with challenges on the inventory front. the investment firm pretium is focused on single-family rental industries, and believes private capital could be the solution to the current shortage. let's get some perspective from jocelyn moore, senior managing director at pretium. also joining us is sonali basak. when i think about the constant

concerns of supply out there, we are always looking for solutions. how should we think about what you been working on, how it plays into that solution? jocelyn: great to be with you. i appreciate the opportunity. you hit the nail on the head. we have been dealing with a shortage of affordable housing for decades in this country. pretium really is leading in this area to be a part of the solution. we are bringing private capital to bear on one of society's greatest challenges. we are not only investing in existing inventory, we are also creating new inventory through our build to rent program. both of those solutions combined are what we are offering to address this problem. sonali: i realize you just joined pretium, so congratulations, but last year,

pretium had nearly doubled in size. people don't realize, pretium bought thousands of zillow homes. coming off of that massive growth, the idea that 75,000 homes are under the purview of pretium, what does that mean for growth moving forward? jocelyn: what we understand keenly is the critical role that housing plays in addressing health and wellness promoting economic will billy, addressing income inequality. we have doubled in size over the last year, but that doubling is directly tied to demand. for many years, we have not had enough supply in housing, so the solutions we are offering in terms of investing, existing supply, greeting through our build to rent program, those are the solutions that will hopefully meet demand at some

point in the future. matt: those are important aspirations, social mobility, helping to reduce income inequality, wealth inequality. i just moved here from berlin. there has been a lot of criticism on large landlords. here in the u.s., you also hear it on both sides of the aisle. elizabeth warren and jd vance have been reticle of big corporate buyers coming out and taking out large portions of the housing sector. how do you respond to that criticism? jocelyn: in several ways. it wouldn't be monday if the policymakers were not writing a letter or raising concerns. as a former capitol hill staffer, i appreciate the work of congress members and staffers to bring about social good. we want to be a part of the solution. we are happy to partner with policymakers at the state and local level to do what we need to do to address the surge in

demand, create new supply across communities in our country. yes, we are hearing from policymakers, but we are working actively around the clock to address their concerns. sonali: someone working on the board of pretium, draftkings, you have this 360 view of how americans invest. it used to be that you bought a home to build wealth. i wonder now if you are seeing a change i where people are planning to put their money as they rent more and buy less. jocelyn: i want to go back to the prior question about the housing market and what we are seeing. we are following our customers. everything that we are doing at pretium is driven by our focus on people. as we think about where people want to live, how they are choosing to live, and as they seek to build wealth, renting is

a critical component. we have all been renters at some point in time. choosing to rent, building credit through renting, choosing where you want to live, it is a both/and proposition in terms of building wealth over time. to the question about innovation, that's a benefit of having private capital really be focused on the public good. we can do things at scale. we can innovate at light speed. we can bring revenue to bear on these critical societal challenges. as i look at investors now and over time, yes, at draftkings, other aspects of corporate america, we see investors are increasingly looking at these new vehicles. people think of draftkings as a sports company, but we are a high-tech company, offering things like an nft marketplace. jon: your incredible career

highlights all the areas that we could take our conversation to. since we are talking about put all and terrel always will be joining us later, i want to get your perspective on what's been going on with coach brian flores. a lot of conversation about where the nfl goes from here. where do you weigh on that? jocelyn: i cannot comment on pending litigation, but here is what i will say. i think the coach is incredibly brave and courageous for what he is doing. more broadly, i believe corporate america across-the-board really has to embrace diversity, equity, and inclusion. we have to make sure that we are not just doing things when the press is watching, or that it sounds good to do, but that we are committed to diversity, equity, and inclusion because it's the right thing to do. as i have said many times, diversity drives innovation

which drives revenue. i am so thrilled to be a part of pretium which is really taking the action to drive diversity, and also on the board of draftkings. i don't just sit on those boards as a checkbox exercise. i sit on the boards as a strategic leader on those teams, corporate boards, driving things like corporate governance, driving esg, driving company strategy. that is the type of america that we have to get to, where diversity, equity, and inclusion are not an afterthought, not something to do when the press is paying attention, but they are done as part and parcel of what we do day in and day out as a business. pretium is at the forefront of that. matt: it's the one thing i've been hearing, pound diversity on boards and management, it will help to boost revenue streams. it seems fairly obvious but it is hard for people to get their minds around.

thank you for joining us. thank you also to sonali basak for bringing us yet another star guest. coming up, amazon slumps ahead of its earnings release after the bell. we will have a preview of those results in our stock of the hour, next. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. time for our stock of the hour. we are going with amazon before we get to meta. we cannot help but talking about meta because it is an historic day. meta is only now less than half

the size of amazon. that will take center stage later on monday result after the close. abigail doolittle has more on what we can expect. >> hard not to talk about facebook today. amazon is down 7%, the worst day since july of last year. from the peak, down 26%. you could say everything is priced in, but you could've said that about netflix, but that stock fell another 20% on a disappointing outlook. matt: there have been a view, netflix, paypal. abigail: there is a real divergent between some of these mega cap tech names that are doing great and others that are just puking it out in a big way. relative to the quarter coming up, earnings are expected to be down 50% year-over-year, revenues up 10%.

they will really have to hit that. it comes down to holiday quarter. then it's all about aws cloud services. also what will they do with the outlook? every now and then they just spend, sacrifice the bottom line. i don't know if they will do that. it seems like one quarter a year they do that. we also have rising transportation, labor, freight. a lot of different factors to look at with amazon. jon: pretty amazing that the revenue for meta in all of last year may be less than what we see from amazon in a single quarter. let's talk about the reaction to meta. the revenue for all of last year at meta is the same on one quarter at amazon. it could also the that one quarter at amazon is about a

quarter of the loss of meta in market cap today. abigail: it is a huge decline. the revenue about amazon is expected to come in at a record. that loss for meta, $228 billion, is of the incredible. it speaks to the inflection point this company is at. in 2018, they had a horrible quarter in july, but it seems they will have to reinvent themselves. they are trying to do that with meta, but will it succeed? in terms of the facebook platform, users have stalled out, but then they need to bring a video. then they have competition coming from tiktok and youtube. can they bring up instagram reels, facebook watch? and then all that money going to meta itself. matt: without hurting anything. jon: he story to watch. thank you. . we will take a quick break

this is bloomberg. ♪

jon: this is bloomberg markets. i'm jon erlichman. alongside matt miller. terrell owens has made headlines on an off the field during his career, but is now entering the world of social media. he announced he acquired a minority stake in a social media app, which he says combines the best of audio and video. nice to have you with us. it seems like facebook is having some problems with their business right now. maybe tell us more about how this investment came together or you. terrell: just like everyone else who is trying to be entrepreneurial, you think about the pandemic, the world shutting

down, everyone doing work at home on zune, things of that nature. a good friend of mine who is a great actor, he approached me about an opportunity in the tech world. if you think about these social media platforms, he brought one to me that is a video and audio social app that brings people together for real-time conversations. just real everything. when he brought it to me, i was like, yeah, i see it as the world, where it is going. i brought it up to my business consultant. that led to one, which led to another, which led to another call. matt newman , the creator of thisapp has been phenomenal with everything he has brought to the table. for us, this is really -- the

motto is for us, by us. the black community, black voices have been muted on some of these main social media platforms. we want to provide a platform for a lot of the black community. at the same time, we understand some of these audio apps, they are not engaging and they don't expect to create community, which often sometimes isolates and excludes certain audiences, such as the deaf and hard appear in communities. matt: since you bring it up, i want to ask about your response to the brian flores lawsuit. it makes sense that it would be hurtful to be invited to an interview if you already knew they were going to hire somebody else. of course, only one black coach among nfl teams now, and all the openings will be going to white and. -- men.

what do you think about the idea that racism is still running rampant and there is not enough mercy and inclusion in the nfl? terrell: to be honest, this is a reason for apps like truso. we can have the dialogue with the community, not just the black community, but two people that don't understand what racism is, how it is still relevant in today's world. it is very sad. to think that brian flores would just come up with these ideas, conversations he had with the owner, and then now all of a sudden, racism doesn't exist? again, it is here, it is not going anywhere. i think you did an admirable job, very noble, to very much risk his future as a coach in the national football league by standing up for something he

believes in. i am an athlete that speaks off-the-cuff. these are certain things that i experience when i played in the national football league. i knew back then, had i spoken on some of these topics, people would have swept it under the rug. in the wake of the george floyd incident, there has been a trickle-down effect of things that have come to light. even with things happening with the las vegas raiders. matt: some long overdue changes. i have to say, one of my all-time favorite players. wish we could have had you on longer. nfl hall of famer terrell owens. for jon erlichman, i'm matt miller. this is bloomberg. ♪ mberg. ♪

>> i am mark crumpton with bloomberg's news. president biden says a horrible

terrorist leader has been killed in a raid in syria syria -- syria. the president spoke at the white house this morning. >> last night, operating on my orders, u.s. military forces successfully removed a major threat to the world, the global leader of isis, known as abdullah. >> abdullah took over the terror organization after former leader abu bakr al-baghdadi was killed in a raid in 2019. they have been tracking him for months. no civilians were hurt. justin trudeau is not planning to deploy his nation's military to clear out a trucker protest that has paralyzed the capital. trudeau, in isolation after contracting covid, said the government would consider any official request for military