Overseas financial media focus: The market expects a 50 basis point rate hike next month with a high probability of up to 80%.

Financial Associated Press, February 11, overnight, overseas markets focused on the global economy and company dynamics. In terms of the global economy, the US inflation rate exceeded expectations to reach the highest in 40 years, the Federal Reserve and the White House are under pressure; the Fed Bullard supports a 50 basis point rate hike, adding 100 basis points before July 1; the 10-year US Treasury yield broke through 2%, and the market expects a 50 basis point increase next month; the European Commission lowered its euro area growth forecast for 2022, significantly raising its inflation forecast. In terms of company dynamics, Tesla has recalled it for the tenth time in the past four months! The ability to choose the sound of the horn is also disabled; the best performer in Buffett's portfolio last year was a stock that he significantly reduced. In addition, OPEC kept its 2022 forecast for global oil demand growth unchanged but said there was room for upward revision; Canada's mayor sought a court order to deport demonstrators paralyzing the U.S.-Canada trade corridor.

Bloomberg: U.S. inflation beat expectations to 40-year high The Fed and the White House are under pressure

With U.S. inflation beating expectations in January and consumer prices rising at their highest level in four decades, it became imperative for the Fed to start raising interest rates.

Data released by the Labor Department on Thursday showed that the Consumer Price Index (CPI) rose 7.5 percent year-on-year in January, up from 7 percent in December. In January, the CPI rose 0.6% month-on-month, and prices rose in many sectors such as food, electricity and housing. Core CPI, excluding food and energy prices, increased 6 percent year-over-year and also posted its biggest increase since 1982, rising 0.6 percent month-on-month.

Economists surveyed estimate that the CPI rose 7.3 percent year-over-year and 0.4 percent month-on-month.

The data further supports the Fed's start of raising rates next month in response to broader inflationary pressures, with markets even beginning to speculate that rate hikes could be higher than 25 basis points. The steady rise in consumer prices has weakened the real value of recent wage growth, reducing the purchasing power of U.S. households, and thus hindering the economic rebound.

The February CPI and employment data will also be released ahead of the Fed's March 15-16 meeting.

Investors raised expectations for the Fed's tightening policy. The market now forecasts a 50% chance of a 50 basis point rate hike in March. While most economists expect the Fed to adopt a more gradual rate hike strategy, as several officials have suggested, a rise in inflation following a rapid rise in wages will make the possibility of a 50 basis point rate hike unavoidable.

Bloomberg: Fed Bullard supports a 50 basis point rate hike by 100 basis points by July 1

St. Louis Fed President James Bullard said he supported a cumulative 100 basis point hike by early July, including a one-time 50 basis points for the first time since 2000, to deal with the worst inflation in four decades.

"I hope to see a 100 basis point hike by July 1," Brad, who has the vote on monetary policy this year, said Thursday. "I'm more hawkish, but I've raised my expectations of what the committee should do."

Currently, Bullard's plan includes three rate hikes, a balance sheet drawdown starting in the second quarter, and then deciding on the path of interest rates for the second half of the year based on the latest data. He said he had not yet decided whether the March meeting should raise interest rates by 50 basis points and would respect Fed Chairman Jerome Powell's decision on the issue. Powell said at a Jan. news conference that he did not rule out the possibility of doing so.

The latest data released before Bullard's speech showed that the U.S. Consumer Price Index (CPI) rose 7.5 percent year-on-year in January, the biggest gain since 1982. Price increases range widely, ranging from food and energy to areas such as home improvement and health insurance.

Bloomberg: 10-year Treasury yield breaks 2% The market is expected to raise interest rates by 50 basis points next month with a 80% probability

U.S. Treasury yields have soared, traders now expect the Fed to cumulatively raise rates by one percentage point in the next three policy meetings, and soaring inflation will prompt the Fed to raise one of them to its biggest in two decades.

After st. Louis Fed President James Bullard's latest speech, the bond market has become more and more depressed. Bullard said he favored a one-off 50 basis point hike unless the Fed scheduled a rate hike at an unplanned meeting.

The Overnight Index Swap (OIS) market forecasts an 80% probability of a 50 basis point rate hike in March and another 25 basis points in May and June. As of Thursday evening, the market believes that by the December meeting, the Fed will raise interest rates by a total of about 166 basis points, equivalent to 6.5 rate hikes of 25 basis points.

Bullard's remarks accelerated the decline in U.S. Treasuries following the release of CPI data. The more policy-sensitive 2-year Treasury yield doubled, rising more than 21 basis points throughout the day to 1.58 percent, its biggest single-day gain since 2009. The 10-year Treasury yield broke through 2 percent for the first time since 2019, closing up about nine basis points to 2.03 percent.

The U.S. Department of Labor reported that the CPI rose 7.5 percent year-over-year in January, higher than economists expected 7.3 percent and the biggest increase since 1982.

Reuters: The European Commission lowered its euro zone growth forecast for 2022 to significantly raise its inflation forecast

The European Commission said that due to a new wave of COVID-19 infections, high energy prices and continued disruptions to supply, eurozone economic growth this year will be slower than previously expected, while inflation will be much higher than expected.

In its economic forecasts, the Executive Board said that the gross domestic product (GDP) of the 19 countries in the euro area this year will grow by 4.0% this year and by 2.7% in 2023. Inflation is expected to be 3.5 percent this year, well above the ECB's 2.0 percent target and well above the Board's November forecast of 2.2 percent.

Reuters: Tesla's tenth recall in the past four months! The ability to select speaker sounds is also disabled

The National Highway Traffic Safety Administration (NHTSA) said Thursday that Tesla is recalling 578,607 vehicles in the U.S. Under NHTSA's increasing scrutiny, Tesla has issued ten recalls in the past four months.

The recall totaled 578607 units, covering the Model S, Model X, Model Y produced in the U.S. market in 2020-2022 and model 3 produced in 2017-2022.

Tesla said it did not find any car accidents, injuries or fatalities related to the recall.

NHTSA said the vehicles did not meet the minimum sound requirements for electric vehicles in the federal motor vehicle safety standards. The noise emitted by these electric vehicles when driving is very small, and pedestrians may not know that a vehicle is approaching, increasing the likelihood of a traffic accident.

Bloomberg: The best performer in Buffett's portfolio last year was a stock that he significantly reduced

What was the best-performing stock on Warren Buffett's hands last year? It was a company that he sold.

Wells Fargo shares returned 61 percent overall last year, according to data compiled by the media, outpacing the performance of any stock in Berkshire's latest portfolio data for the end of Sept. 30. It also far outperformed Berkshire's two big bets: Apple and Bank of America.

Buffett's Berkshire will disclose the latest information about the stake in the coming days. Filings have shown that the company has largely missed the opportunity for Wells Fargo to rebound. For years, Wells Fargo, based in San Francisco, was the largest bet on Berkshire's stock portfolio by market capitalization, often praised by Buffett himself. But as the bank's scandal embroiled, Berkshire cut its investment from 323 million shares at the end of 2019 to about 675,000 shares by September.

Reuters: OPEC keeps its 2022 global oil demand growth forecast unchanged but says there is room for upward revision

The Organization of the Petroleum Exporting Countries (OPEC) said global oil demand could rise more sharply this year as the global economy recovers strongly from the pandemic, which will provide support for oil prices, which are already at a seven-year high.

OPEC said in the report that it expects global oil demand to increase by 4.15 million bpd this year, unchanged from last month's forecast.

Commenting on the demand outlook for 2022, the OPEC report said: "Based on the strong economic recovery observed continuously and the fact that GDP has reached pre-pandemic levels, there is general upside potential for demand forecasts."

Wall Street Journal: Canada's mayor seeks court order to deport demonstrators paralyzing the U.S.-Canada trade corridor

Windsor, a Canadian border city in Ontario, said Thursday it would ask a court order to deport demonstrators who had blocked most of the traffic on the important U.S.-Canada trade corridor for four days.

Windsor Mayor Drew Dilkens said at a news conference that the city's lawyers will debate the case before a judge later Thursday. The mayor said that if the municipality wins the case, the protesters will be expelled so that goods can be transported across the border safely and efficiently, and the economic damage caused by the protesters' occupation to international trade is unsustainable and must be ended.

Earlier, detroit automakers scaled back production in the U.S. and Canada and temporarily let employees go home due to a shortage of parts caused by protests against the mandatory COVID-19 vaccine order.

Windsor police estimate that about 50 to 75 cars on the Ambassador Bridge, which connects Detroit and Windsor, disrupted the traffic of commercial trucks. The protests originated in Canada's capital, Ottawa, and expanded to the border city this week.