Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: We begin in Washington, where Congress has kept the lights
Speaker 2: on again.
Speaker 3: I'm happy to inform the American people there will be
Speaker 3: no government shutdown on Friday.
Speaker 2: Senate Majority Leader Chuck Schumer is celebrating after the Senate
Speaker 2: passed a temporary spending bill last night that keeps some
Speaker 2: parts of the government open until March eighth and the
Speaker 2: rest through March twenty second. Bloomberg's Eric Wasson has more
Speaker 2: details from Washington.
Speaker 4: Behind the scenes, there's also sort of an agreement on
Speaker 4: a six bill package full year funding for about twenty
Speaker 4: seven percent of agency spending. We're exciting to see that
Speaker 4: release sometime this weekend, probably on Sunday.
Speaker 2: Bloomberg's Eric Wasson reports Republicans in the House have been
Speaker 2: told not to expect many victories when those tales come out.
Speaker 2: The temporary spending bill is now headed to the White House,
Speaker 2: where President Biden plans to sign it well.
Speaker 1: Nathan, turning to presidential politics, the border is quickly replacing
Speaker 1: the economy is the most important issues for American voters,
Speaker 1: and Bloomberg's Ed Baxter reports the front runners are paying attention.
Speaker 5: Both President Joe Biden and Donald Trump visiting the border
Speaker 5: two different locations and both blaming each other. Trump at
Speaker 5: Eagles Pass, people.
Speaker 6: From places unknown, from countries unknown, who don't speak languages.
Speaker 6: We have languages coming into a country. We have nobody
Speaker 6: that even speaks those languages. They truly foreign languages. Nobody
Speaker 6: speaks them.
Speaker 7: Biden at Brownsville, folks, So my first day is president
Speaker 7: I introduced to Bill, I sent to Congress a comprehensive
Speaker 7: plan to fix the broken immigration system and to secure
Speaker 7: the border, but no action was taken.
Speaker 5: Trump calling it a Biden invasion, Biden saying the Congress
Speaker 5: and Republicans must act. Ed Baxter Bloomberg Radio, All right, Ed,
Speaker 5: thank you. Now, he turned to the markets where stock
Speaker 5: begin the new month. That record highs. We get more
Speaker 5: from Bloomberg's John Tucker, John and Nathan.
Speaker 8: The S and P five hundredth, the NASDAK, and the
Speaker 8: NASDAK one hundred all ended Thursday session at records. In fact,
Speaker 8: the S and P five hundred so it's fourteenth record
Speaker 8: this year. The NASDAQ one hundred climbed almost one percent,
Speaker 8: with Nvidia leading gains and megacaps. Investor is also encouraged
Speaker 8: that the latest inflation data was not as hot as
Speaker 8: some expected. At Lauren San Philippo at Merrill and Bank
Speaker 8: of America Private Bank thinks stocks can move higher from here.
Speaker 9: There's a lot of things to look forward to. Right
Speaker 9: we have this said pivot that's being priced in. Growth
Speaker 9: is certainly surprising to the upside the Sate Atlanta tracker
Speaker 9: for GDP for this quarter three point two percent, So
Speaker 9: again surprises city upside will certainly matter, and I think
Speaker 9: kerry the market through this year.
Speaker 8: A signed from economic data. The four hundred and eighty
Speaker 8: nine companies of the S and P five hundred that
Speaker 8: have reported earning so far this season, seventy six percent
Speaker 8: have delivered positive earning surprises. A year to date, the
Speaker 8: SCID five and the NASDEK are up around seven percent.
Speaker 8: John Tucker, Bloomberg Radio.
Speaker 1: All right, John, thanks so one stock participating in the
Speaker 1: rally as Dell shares surging twenty two percent. The computer
Speaker 1: hardware company reported fourth quarter results that beat expectations. Analysts
Speaker 1: say demand for artificial intelligence servers is driving momentum well On.
Speaker 2: The flip side, Karen Shares of New York Community Bank
Speaker 2: Corpor Down more than twenty seven percent. The commercial real
Speaker 2: estate lender took a two point four billion dollar hit
Speaker 2: to earnings as it identified weaknesses with its loan review process,
Speaker 2: details from Bloomberg's Charlie Pellett.
Speaker 10: The bank also said it needs more time to file
Speaker 10: its annual report to regulators as it shores up its
Speaker 10: internal controls. In a separate filing, NYCB said quote management
Speaker 10: identified material weaknesses in the company's internal controls related to
Speaker 10: internal loan review resulting from ineffective oversight, risk management, unmonitoring activities.
Speaker 10: The announcement re so drama that erupted at the end
Speaker 10: of January when the bank slashed its dividend and stockpiled
Speaker 10: cash to cover troubled loans in New York. Charlie Pellet,
Speaker 10: Bloomberg Radio and Charlie. The bank's also changing bosses.
Speaker 2: Alessandro Dinelli will become chief executive Officer, effective immediately, succeeding
Speaker 2: Thomas Kangemme Well Nathan.
Speaker 1: While equities overall sit at record highs, it's also been
Speaker 1: quite a run for bitcoin. The cryptocurrency is more than
Speaker 1: forty two percent this year. Demand for the token from
Speaker 1: new US exchange traded funds is helping fuel the rally,
Speaker 1: which saw bitcoin surged over sixty three thousand dollars earlier
Speaker 1: this week, but Michael nova Grants, the CEO of Galaxy
Speaker 1: Digital Holdings, expects a pullback in the near term.
Speaker 2: I would say we've got the very frothy frothy levels,
Speaker 2: and so I wouldn't be surprised to see some correction
Speaker 2: in some consolidation. But I'm very loath to pick a
Speaker 2: Bitcoin high because.
Speaker 10: I really do believe this is price discovery.
Speaker 1: And Galaxy did you, CEO Michael Novagrad, says bitcoin could
Speaker 1: pull back to the mid fifty thousand level before rallying
Speaker 1: to new highs. Looking at Bitcoin right now, it's at
Speaker 1: about sixty two one hundred dollars.
Speaker 2: Turning to the economy, Karen, Despite the Fed's preferred measure
Speaker 2: of inflation rising at its fastest pace in nearly a year,
Speaker 2: more central bankers are talking about rate cuts. San Francisco
Speaker 2: FED president Mary Daily says policymakers are ready to take action.
Speaker 11: We want to avoid holding on all the way to
Speaker 11: two percent. They're putting policy very tight and then cause
Speaker 11: an unnecessary downturn. We are agile, and we're sitting in
Speaker 11: what I call the ready position. We are ready to
Speaker 11: make moves and adjust as the data demand us to do.
Speaker 11: And I think right now the economy and policy are
Speaker 11: in a good place to do that.
Speaker 2: San Francisco Fed chief Mary Daily added she's looking for
Speaker 2: quote a collage of evidence that inflation is moving sustainably lower.
Speaker 2: Daily spoke with David Weston on Bloomberg Wall Street. We
Speaker 2: catch the full conversation today at six pm Wall Street
Speaker 2: time on Bloomberg Radio and television.
Speaker 1: Than over in Europe, big changes are coming at the
Speaker 1: Swiss National Bank. Thomas Jordan is leaving the SMB later
Speaker 1: this year after more than a decade as president. It
Speaker 1: ends an era where his institution was at the heart
Speaker 1: of currency and banking turmoil that rippled around the world.
Speaker 1: Jordan is one of Switzerland's best known a most influential
Speaker 1: public officials. He steered the economy through the Euro Area
Speaker 1: dead crisis, remove the cap on the frank and twenty fifteen,
Speaker 1: and adopted the world's lowest interest rate.
Speaker 2: Moving to Asia, Karen manufacturing activity in China slumped in
Speaker 2: February as factories wrestled with weak demand. Bloomberg Daybreak Asia
Speaker 2: anchor Brian Curtis has more from Hong Kong.
Speaker 12: China's factory activity shrank for a fifth month, the official
Speaker 12: PMI coming in at forty nine point one, slightly better
Speaker 12: than expected but still in contraction that Taishin PMI came
Speaker 12: in stronger at fifty point nine. Surveys elsewhere in Asia
Speaker 12: showed manufacturers cutting output and new orders last month as
Speaker 12: due to subdued customer spending in both domestic and internet
Speaker 12: national markets. Taiwan's PMI edging down to forty eight point six,
Speaker 12: Japan's at forty seven point two in al Kong.
Speaker 13: Brian Curtis, Bloomberg.
Speaker 1: Radio, All right, Brian, thanks so, Bloomberg News has learned
Speaker 1: the World Trade Organization has made progress toward agreements on
Speaker 1: measures to broaden global trade. Sources say a final deal
Speaker 1: on agriculture subsidies, over fishing and tariff free e commerce
Speaker 1: are hinging on the willingness of major economies to make
Speaker 1: last minute concessions.
Speaker 2: So now to take a look at some of the
Speaker 2: other stories making news in New York and around the world,
Speaker 2: and for that we are joined by Bloomberg's Michael Barr.
Speaker 13: Good morning, Michael.
Speaker 14: Good morning, Nathan. There are conflicting reports about yesterday's events
Speaker 14: leading up to the depths of more than one hundred Palestinians,
Speaker 14: according to health officials in northern Gaza, witnesses say Israeli
Speaker 14: soldiers guarding an AID convoy in Gaza City opened fire
Speaker 14: on Palestinians racing to pull food off the trucks. Israel
Speaker 14: says many of the victims were run over by the
Speaker 14: trucks and that troops only opened fire when they felt
Speaker 14: endangered by the crowd. IDF spokesman Peter Lerner.
Speaker 15: A large amount of people were going on the trucks
Speaker 15: and looting them and trampling and crushing one another, and
Speaker 15: indeed many of the people that were injured or wounded
Speaker 15: or even killed were as a result of the truck movement.
Speaker 14: At a Pentagon briefing press Secretary Air Force Major General
Speaker 14: Pat Riders, the Defensive Department has repeatedly stressed to Israel
Speaker 14: the need to minimize civilian casualties.
Speaker 16: We're going to continue to work with partners in the
Speaker 16: region to try to ensure that humanitarian assistants can be
Speaker 16: delivered while at the same time communicating with our Israeli
Speaker 16: partners the importance of taking civilian safety into account.
Speaker 14: Major General Writers says the White House is asking for
Speaker 14: an investigation. Relatives and supporters of Alexi Navolni are bidding
Speaker 14: farewell to the Russian opposition leader. Today, a funeral is
Speaker 14: in southeastern Moscow after his still unexplained death in an
Speaker 14: Arctic peace colony. The first MTA public hearing was held
Speaker 14: last night on congestion pricing in Manhattan. There were comments
Speaker 14: four and against the move to toll drivers who travel
Speaker 14: below sixtieth Street. The hearing is not expected to change much,
Speaker 14: but it was a chance for voices to be heard.
Speaker 14: Many uber and lyft drivers are against the measure. This man,
Speaker 14: who identified himself as a TLC driver, says the MTA
Speaker 14: is a money pit, and he made sure the board
Speaker 14: knew he was in the no column.
Speaker 1: For each and every one of you.
Speaker 5: There is a special place in hell for you.
Speaker 13: Lucifer waits for you.
Speaker 1: He waits for you.
Speaker 14: Then he was escorted out. However, there were others for
Speaker 14: congestion pricing, like this woman who lost her husband and
Speaker 14: says an ambulance was delayed because of traffic.
Speaker 11: None of you want to be in a situation where
Speaker 11: you might have been saved but you died because there
Speaker 11: was too much traffic.
Speaker 14: Audio courtesy of ABC seven and picks eleven Federal agents
Speaker 14: search to properties owned by a top advisor to New
Speaker 14: York City may Eric Adams. The FBI carried out rage
Speaker 14: yesterday had two Bronx addresses, which records show are owned
Speaker 14: by Winnie Greco, a former fundraiser for Adams who now
Speaker 14: serves as his director of Asian Affairs. The purpose of
Speaker 14: the investigation not revealed. Global News twenty four hours a
Speaker 14: day and whenever you want it with Bloomberg News Now,
Speaker 14: Michael Barr, this is Bloomberg.
Speaker 7: Nathan.
Speaker 13: All right, Michael, thank you.
Speaker 2: Time now for the Bloomberg Sports Update, brought to you
Speaker 2: by tri State out are you.
Speaker 13: Good morning, John Stanshawer.
Speaker 3: Good morning, Nathan. Steph Curry has been coming into the
Speaker 3: garden for fifteen years.
Speaker 13: Every time he does.
Speaker 3: Knicks fans can't help but think back to that two
Speaker 3: thousand and nine draft. Nicks had the eighth pick we're
Speaker 3: hoping to take Curry. Golden State took him with the seventh.
Speaker 3: He's gone on to make the most three pointers ever
Speaker 3: win four championships. Curry had it going at MSG last night.
Speaker 17: Step step back, left point three over at show a
Speaker 17: perfecto fifty three forty four and Steph with his four
Speaker 17: to three of the game, He's got seventeen lead back
Speaker 17: to nine one oho seven ago. In the first step
Speaker 17: bounce pass, Draymond goes to Paul Offus great Steph catches
Speaker 17: shoot right wing three as God. This eighth of the game, He's.
Speaker 3: Got thirty one ninety five seven the fan. Curry and
Speaker 3: the Warriors never trailed. Beat the Knicks one ten ninety nine.
Speaker 3: Golden States now one ten to last twelve. The injury
Speaker 3: riddled Knicks have lost eight of the last eleven. At
Speaker 3: Barkley's rare easy win for the Nets, up eighteen in
Speaker 3: the first quarter, they beat Atlanta, won twenty four to
Speaker 3: ninety seven. Cam Johnson scored twenty nine. The Wizard's fiftieth loss,
Speaker 3: thirteenth in a row. Took the Lakers to overtime, fell short.
Speaker 3: Anthony Davis scored forty for La. Celtics will host Dallas tonight.
Speaker 3: Thirty five year old Jeff Peterson, who's been the Nets
Speaker 3: assistant GM named a head up basketball operations in Charlotte.
Speaker 3: The Islanders went to Detroit end of the red winging
Speaker 3: sixty game, winning Street five to three, two goals for
Speaker 3: brock Nelson. The Bruins blew a three nothing leads, still
Speaker 3: beat Vegas five to four. College hoops Rutgers by thirty
Speaker 3: over Michigan. In Iowa, Caitlyn Clark announced she's going pro
Speaker 3: when the season ends.
Speaker 13: Hardly a surprise.
Speaker 3: She's played four years did have a year of eligibility
Speaker 3: left due to COVID. Clark already the leading score in
Speaker 3: NCAA and all of women's basketball history, and about to
Speaker 3: go past Pete Maravich and have the most points men
Speaker 3: or women. She'll almost certainly be taken first overall by
Speaker 3: Indiana in the WNBA draft. Yankees and Marlins played an
Speaker 3: exhibition game in Tampa.
Speaker 13: The game ended scoreless. Josh stashie that we're Bloomberg's sport, Nathan,
Speaker 13: Thank you, John. Now let's get right back to this market.
Speaker 2: Closing out the week entering a new trading month at
Speaker 2: the S and P five hundred and Nasdaq one hundred,
Speaker 2: both at all time high. So what should we be
Speaker 2: waiting as we round out the quarter. Let's bring in
Speaker 2: Daniel Morris, chief market strategists at BNP Pariba. Daniel, thanks
Speaker 2: for being with us. Does this market look toppy to you?
Speaker 2: Does the rally have more to go?
Speaker 13: Where do you see the momentum?
Speaker 18: Well, certainly one thing you would be looking at if
Speaker 18: you're trying to make that assessment and valuations given the
Speaker 18: run that we've had. But I think thecouraging news is
Speaker 18: that certain evaluations are higher than average. But given an
Speaker 18: earnings growth that we've seen, given the strength of US
Speaker 18: economic growth that we've had, seems perfectly reasonable and certainly
Speaker 18: compared to other parts of the world. You know, we
Speaker 18: Europe is struggling, in Japan was in recession in the
Speaker 18: last quarter. The latest Chinese data was disappointing, so you
Speaker 18: kind of running out of growth areas and so you
Speaker 18: turn into the US and that's reflected in the market.
Speaker 2: Now those valuations looking good to you across the market?
Speaker 2: Or is it just in those AI stocks that we
Speaker 2: focus so much on these days.
Speaker 18: Well it's not the only Perhaps the interesting comparison is
Speaker 18: if you take say NAOSAQ one hundred and then look
Speaker 18: at multiples relative to history for the NASAC and then
Speaker 18: do the same thing, say for the wrestle one thousand
Speaker 18: value is kind of the other part of the market,
Speaker 18: if you will, And they're both at about the same
Speaker 18: relative valuations, meaning they're both a bit about average, not terrible.
Speaker 18: And that's actually a big change from the garment we've
Speaker 18: had in previous years, where when you would say the
Speaker 18: SMP was expensive, you were really saying that tech stocks
Speaker 18: were expensive and everything else perhaps was cheap. So that's
Speaker 18: not the case anymore. Everything is going to equally up
Speaker 18: of average. But again that goes back as a reflection
Speaker 18: of the growth and the earnings potential.
Speaker 11: We think, we.
Speaker 2: See, what did you make of the reaction that we
Speaker 2: saw after the core PC deflator The feds preferred inflation
Speaker 2: gauge came in hotter, but right in line with estimates.
Speaker 2: We're starting to hear more Fed officials saying that maybe
Speaker 2: we can start thinking about rate cuts even with this
Speaker 2: little bump in inflation.
Speaker 18: Maybe mature to go quite that far. I mean, certainly
Speaker 18: we had the chance to adjust our expectations after the
Speaker 18: CPI data, so it really should not have been another surprise,
Speaker 18: given it's just another slice at the same underlying dynamic.
Speaker 18: It is going to be and you hate to say this,
Speaker 18: but a wait and see whether or not next month's
Speaker 18: data confirms the trend, because you know, we saw it
Speaker 18: wasn't just housing in both the PC and the CPI data,
Speaker 18: you know, there was services pressure. So we need to
Speaker 18: see if that persists. And to make you a little
Speaker 18: bit more cautious about whether it mine or might not,
Speaker 18: you look at the data that we got out of
Speaker 18: Europe recently showed a similar surprise, particularly on the services side.
Speaker 18: So this an area where inflation re accelerates simply because
Speaker 18: growth is or strong, you know, certainly not something we
Speaker 18: exclude entirely.
Speaker 2: So are you thinking that cautions in order as we
Speaker 2: get ready for the next rate on jobs next week?
Speaker 18: Well, I think you would anticipate the job stay. That's
Speaker 18: going to be fine. I mean, labor marketing in general
Speaker 18: is like an indicator we have. GDP for the fourth
Speaker 18: quarter was strong. GDP now forecasts around three percent for
Speaker 18: the first quarter. I mean just really, these just amazingly
Speaker 18: strong numbers given how high policy rates are. So that's
Speaker 18: all going to be fine. And I think the reason
Speaker 18: that you've seen this, you know, rather you know, I
Speaker 18: guess the noign positive reaction in equity markets because a
Speaker 18: bit more growth, a bit more inflation, that's certainly not
Speaker 18: much of will worry as far as equitieselt concerned.
Speaker 2: So what's going to come into play in March for you?
Speaker 2: What catalysts are you looking at?
Speaker 18: Well, you know you're looking it's the same two risks
Speaker 18: to growth and in inflation. So you know, do we
Speaker 18: start to see a deceleration and growth? Certainly not yet,
Speaker 18: but at some point you know, it has to happen,
Speaker 18: if you will. And then on the inflation front, you know,
Speaker 18: a bit high, a bitsteady, not decelerating so much. That's
Speaker 18: probably not as big a concern. If you really did
Speaker 18: see that, that reacceleration and inflation, you're going to start
Speaker 18: to question even the three cuts that that has put
Speaker 18: out there.
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Speaker 13: I'm Nathan Hager and.
Speaker 10: I'm Karen Moscow.
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