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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: DAYBAC podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Friday, the twenty third of February. I'm

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Speaker 1: Caroline Hepka.

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Speaker 2: And I'm Lizzie Burden coming up today And video's quarter

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Speaker 2: of a trillion dollar surch sparks a global stock rally.

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Speaker 1: But as equities surge, more fed speakers Pylon to say

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Speaker 1: that rake huts aren't coming anytime soon.

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Speaker 2: And Putin makes friends in Africa. Why Russia's shipping free

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Speaker 2: food to countries on the continent.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: A record breaking two hundred and seventy seven billion dollar

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Speaker 2: one day jump in the value of Nvidia has helped

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Speaker 2: to fuel a global rally in equities that's seen markets

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Speaker 2: from the US to Europe and Japan hit all time highs.

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Speaker 2: The SP five hundred, the Nasdaq, and the MSCIS Asia

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Speaker 2: all country in DEA closed at new records in the US,

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Speaker 2: while Asian stocks also jumped.

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Speaker 3: Home.

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Speaker 2: E Lynn, senior macro strategist at Lombard Audier, says he

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Speaker 2: expects American equities to continue their rise.

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Speaker 3: When you see a rally like this, first of all,

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Speaker 3: you have to respect the price section and momentum, so

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Speaker 3: we are incorporating that in our portfolios by overweighting US

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Speaker 3: equities at the expense of European equities, for which we

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Speaker 3: think the macro and policy backdrop is slightly more challenging.

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Speaker 2: Home in Ly's bullish view on the US comes despite

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Speaker 2: increasingly hawkish language from Fed policymakers, with a number of

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Speaker 2: rate setters pushing back on the idea of rate cuts

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Speaker 2: in the coming months. Much of the stock rally so

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Speaker 2: far in twenty twenty four has been powered by investor

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Speaker 2: expectation that the Federal Reserve will begin to cut interest

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Speaker 2: rates later this year.

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Speaker 1: Former Treasury is actually Larry Summers is warning that financial

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Speaker 1: markets are underestimating the risks of political and social turmoil

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Speaker 1: around the world resulting on populist policies. He highlighted the

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Speaker 1: dangers of protectionism and restrictions on the free flow of goods, capital,

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Speaker 1: and people, calling them very real.

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Speaker 4: Risks nationalists populist policy, both at home in terms of

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Speaker 4: the rule of law internationally in terms of protectionism and

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Speaker 4: restrictions on flows of goods, flows of capital flows of people.

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Speaker 4: But they are very real risks, and they seem to

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Speaker 4: me to be insufficiently.

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Speaker 1: Christian Summers is a paid contributor to Bloomberg. Television has

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Speaker 1: caused the coming US election, the most consequential vote since

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Speaker 1: World War II.

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Speaker 2: Top FED officials are emphasizing the need for patients on

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Speaker 2: rate cuts. Their calls come in the wake of strong

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Speaker 2: US economic data, including a surprise drop in jobless claims

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Speaker 2: for the weekending February seventeenth to two hundred one thousand,

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Speaker 2: well below estimates of two hundred and sixteen thousand. FED

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Speaker 2: Vice Chair Philip Jefferson and Governor Lisa Cook say inflation

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Speaker 2: is cooling, but they added that they need to see

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Speaker 2: more evidence before lowering borrowing costs. Jefferson also says excessive

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Speaker 2: easing could stall progress.

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Speaker 4: The labor market can change dramatically. We have to be

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Speaker 4: careful and we have to.

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Speaker 5: Try to assess the different shocks that can hit the economy.

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Speaker 6: I would like to have greater confidence that inflation is

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Speaker 6: converging to two percent before beginning to cut the policy rate.

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Speaker 6: I would see an eventual rate cut as adjusting policy

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Speaker 6: to reflect a shifting balance of risks.

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Speaker 2: Vice chairv Jefferson and Governor Cook speaking there. The remarks

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Speaker 2: from policymakers come as economists forecast the Fed's preferred inflation

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Speaker 2: gauge will rise at the fastest pace since twenty twenty three.

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Speaker 1: Standard Chartered has announced a one billion dollar buy back

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Speaker 1: program as its profits last quarter beat which analyst estimates.

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Speaker 1: The lender's fourth quarter adjusted pre tax profit rose by

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Speaker 1: sixty three percent to one point zero six billion dollars,

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Speaker 1: beating estimates. Following the strong results, the ferminals a new

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Speaker 1: Fit for Growth program that will save over one and

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Speaker 1: a half billion dollars over the next three years, boosting

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Speaker 1: returns for investors and galvanizing the bank's stock, which has

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Speaker 1: plunged by more than twenty percent in the last year.

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Speaker 1: Has been a priority for Standard Chartered CEO Bill Winters to.

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Speaker 2: The UK Parliament now where more than ten percent of

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Speaker 2: all MPs have called on Lindsay Hoyle to quit. The

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Speaker 2: motion of no confidence is a fallout from a rule

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Speaker 2: change the Speaker of the House of Commons made which

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Speaker 2: helped the Labour Party avoid a rebellion on Gaza. Prime

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Speaker 2: Minister Rishisunak stopped short of calling for Hoyle to go

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Speaker 2: instead blaming pro Palestine protesters.

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Speaker 7: The usual ways in which Parliament works were changed. Now

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Speaker 7: my understanding is that the Speaker has apologized for what

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Speaker 7: happened and is reflecting on that. But I think the

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Speaker 7: important point here is that we should never let extremists

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Speaker 7: intimidate us into changing the way in which Parliament work.

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Speaker 2: As back continues to overshadow government business and any debate

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Speaker 2: over Westminster's approach to the Israel Hamas War.

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Speaker 1: And finally, for the first time since nineteen seventy two,

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Speaker 1: the United States is back on the Moon. In a

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Speaker 1: mission marred by challenges including a harsh environment and last

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Speaker 1: minute changes, Intuitive Machines became the first private firm to

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Speaker 1: land an intact vehicle on the lunar surface. The NASA administrator,

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Speaker 1: Bill Nelson says that the trip was an important victory.

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Speaker 8: Today, for the first time in the history of humanity,

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Speaker 8: a commercial company, an American company, launched and led the

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Speaker 8: voyage up there. What a triumph Odysseus has taken the moon.

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Speaker 1: Bill Nelson works ser NASA, which paid nearly one hundred

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Speaker 1: and eighteen million dollars for the mission. The landing is

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Speaker 1: a milestone for the business of space after previous attempts

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Speaker 1: to reach the surface where a private craft failed. In

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Speaker 1: a moment, we are going to talk about, well, the

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Speaker 1: stocks rally, what hellse Jill Disis, our Bloomberg Economy and

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Speaker 1: Government editor will be joining us, but we should really

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Speaker 1: reflect on the search to an all time high for

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Speaker 1: Nvidia a single session. There was a lot of anticipation,

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Speaker 1: a lot of concern about whether Nvidia could deliver in

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Speaker 1: terms of the results. The investors absolutely loved.

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Speaker 9: It, Liz it.

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Speaker 2: Yeah, I love this line from Stacy Ragson at Sanford

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Speaker 2: s Bernstein.

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Speaker 9: They are just printing money at this point.

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Speaker 2: And it's not just Nvidia itself that's at a tipping point.

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Speaker 9: Using the CEO's words, he is too.

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Speaker 2: He's on the verge of becoming one of the top

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Speaker 2: twenty richest people in the world.

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Speaker 9: That's according to our Bloomberg Billionaires Index.

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Speaker 1: Yeah, hang on, he's not quite there yet though. He's

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Speaker 1: twenty first richest, wealth increasing by nine point six billion dollars.

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Speaker 1: That's quite some sum.

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Speaker 2: The thing is that this point, everybody owns in video,

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Speaker 2: so when he gets rich, so do all the other billionaires.

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Speaker 2: Everyone except Kathy Wood because ARC hasn't held in video

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Speaker 2: of course since the start of last year, so she's

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Speaker 2: just got to watch from the sidelines talk about Fomoh.

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Speaker 1: Yeah, look, I think that's we have mentioned this before.

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Speaker 1: You know that Kathy Wood has missed out on this,

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Speaker 1: even though she was one of the early converts and

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Speaker 1: talking about the artificial intelligence you know, capacity, capability and boom.

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Speaker 1: But yes, you're right, and videos rally has really lifted

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Speaker 1: the fortunes of a lot of companies. How far does

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Speaker 1: that go? I think a lot of investors are going

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Speaker 1: to be probing this. It has helped the fortunes of

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Speaker 1: a lot of other billionaires and a lot of other businesses,

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Speaker 1: including in Europe ASML for example. But you know how

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Speaker 1: much does it sort of trickle down? It's just staggering

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Speaker 1: the gap between stocks and bonds right now.

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Speaker 9: Well, this is the point.

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Speaker 2: Kathy Wood's waiting for that rally to broaden. It's why

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Speaker 2: she's got broad or exposure. But that point isn't yet

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Speaker 2: as still down eight percent so far this year.

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Speaker 6: Is it?

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Speaker 9: Okay?

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Speaker 1: Yeah? Right, Well, let's turn our attention then to the

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Speaker 1: markets more broadly, talk about in video rate cuts in

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Speaker 1: the US and Europe may be looking less likely but

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Speaker 1: the strong earnings from chip maker in Vidia, who's a

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Speaker 1: stock price surge sixteen percent in a single day, have

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Speaker 1: fueled this global equities rally, markets in the US, Europe,

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Speaker 1: and Japan hitting all time highs. Joining US Now to

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Speaker 1: discuss his Bloomberg Economy and Government editor Jill de Sis,

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Speaker 1: Good morning, Jill. So we've seen continued rally in Asia

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Speaker 1: this morning, the S and P five hundred, the NAZA

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Speaker 1: one hundred, the All Country Index all closing at new records.

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Speaker 1: Is in video really driving it all?

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Speaker 8: Well?

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Speaker 10: I think, Caroline, what we're really seeing here is when

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Speaker 10: the video is doing, is sort of epitomizing these strong

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Speaker 10: fundamentals that are underlying stocks right now. I mean the

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Speaker 10: fact that you're seeing, you know, I mean in video

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Speaker 10: by its self, I think has obviously been beating expectations

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Speaker 10: for quite some time now. The market capitalization that it

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Speaker 10: just added over you know, a single day, two hundred

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Speaker 10: and eighty million dollars is absolutely or two hundred eighty

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Speaker 10: billion dollars really is just absolutely stunning. But it's really

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Speaker 10: sort of that fundamental idea of you know, it adding

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Speaker 10: in you know, all of the you know, all all

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Speaker 10: of these gains on the back of this incredible advancement

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Speaker 10: in artificial intelligence, what that ultimately means for the broader

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Speaker 10: tech market, and then how that's ultimately helping you know,

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Speaker 10: the SMP Nazak that that kind of stuff. And I

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Speaker 10: think that you're sort of juxtaposing that against this idea

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Speaker 10: that the narrative on inflation out of the US and

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Speaker 10: the FED policy hasn't really changed too much over the

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Speaker 10: past few weeks, particularly when you take into account some

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Speaker 10: of this other FED speak that we've been hearing recently.

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Speaker 10: So we just heard from several FED officials yesterday, you know,

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Speaker 10: talking about, you know, they eventually need to cut rates,

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Speaker 10: although they didn't particularly put any timing on there. That

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Speaker 10: narrative hasn't changed fundamentally. And so when you're not seeing

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Speaker 10: that you're change and policy, stocks can kind of just

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Speaker 10: keep going, especially when you're seeing such amazing results from

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Speaker 10: a company like in Video, And I think that that's

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Speaker 10: kind of you know, playing out across global markets right now.

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Speaker 2: Yeah, Berdie in the newsroom told me this morning that

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Speaker 2: sixty six billion dollars worth of Nvidia shares traded hands yesterday.

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Speaker 2: It's the second biggest day for volume in history. Second

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Speaker 2: only to the day of Tesla's inclusion in the S

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Speaker 2: and P five hundred, So it was a huge deal,

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Speaker 2: even if it's not the only thing that's driving the

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Speaker 2: equity rally. But Jill, the bit of the laggard in

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Speaker 2: the markets this morning has been China, Hong Kong, they're

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Speaker 2: in the green now, the Hang Sang Tech Inneck's still

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Speaker 2: down five tenths of eight percent.

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Speaker 9: What's the problem there.

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Speaker 10: Well, Lizzie, I think that you know, China has some

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Speaker 10: other more fundamental problems here that are continuing to drag

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Speaker 10: these stocks down, particularly over the last week. So you

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Speaker 10: can't really talk about China without talking about the economy,

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Speaker 10: which is slowing down. You're seeing this this big slowdown

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Speaker 10: in growth that's continuing to weigh out on sentiment there.

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Speaker 10: We did see bit of a rally before China went

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Speaker 10: on this week long lunar New Year holiday last week.

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Speaker 10: We were hoping to see something of an improvement at

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Speaker 10: the beginning of this week as stocks finally reopened after

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Speaker 10: that really really lengthy break, but that hasn't really materialized

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Speaker 10: in China. That's in part because some of the data

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Speaker 10: that we've been getting recently just really hasn't been as

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Speaker 10: strong as we would have liked. We saw some travel

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Speaker 10: and spending data over the course of the Lunar New

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Speaker 10: Year holiday, which we're pretty strong on the face of things,

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Speaker 10: but then you dug down a little bit deeper. You

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Speaker 10: saw that consumers in China were still being pretty thrifty,

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Speaker 10: which was a bit disappointing in China. Today, you just

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Speaker 10: got some data on home prices that wasn't particularly strong,

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Speaker 10: still showing you know, that fall of indicating that the

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Speaker 10: property crisis continues to be an issue there. So you're

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Speaker 10: and then you've also just got some of these larger

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Speaker 10: issues with the stock market in China that has been

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Speaker 10: experiencing this seven trillion dollars route over the last eighteen months.

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Speaker 10: Authorities are taking some efforts to curve volatility in trading,

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Speaker 10: but I think the sentiment problem is really just becoming

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Speaker 10: too much to bear there.

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Speaker 1: Yeah, absolutely, so that for the kind of China angle. Meanwhile,

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Speaker 1: we've got to do a quick comparison in terms of

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Speaker 1: the bone market. Is FED officials have been advocating patients

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Speaker 1: in terms of interest rate cuts, how patient can they

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Speaker 1: be when there's a lag in terms of monetary transmission.

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Speaker 10: Oh gosh, Well, I think that at this point that's

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Speaker 10: really the big question when it comes to the FED,

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Speaker 10: and I think the ultimate difficulty that they have to

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Speaker 10: deal with this year is they figure out when exactly

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Speaker 10: they're going to cut rates. I think that, you know,

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Speaker 10: the FED response to that has ultimately been, look, we're

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Speaker 10: incredibly data dependent and they're looking at all types of

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Speaker 10: indicators to decide when exactly they need to move the

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Speaker 10: needle on that first policy cut of the year. But

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Speaker 10: Fed official has been pretty adamant for the last couple

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Speaker 10: of months now that they don't want to move too quickly.

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Speaker 10: I think we just saw in the FOMC minutes the

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Speaker 10: other day that more most FED officials were worried about

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Speaker 10: actually moving too quickly on making interest rate cuts, while

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Speaker 10: only a couple were really suggesting that, you know, they

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Speaker 10: were worried about the long term economic risks of not

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Speaker 10: moving quickly enough. I think that, you know, at this point,

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Speaker 10: we just had a bunch of FED officials yesterday, Vice

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Speaker 10: Fed Fair Philip Jefferson, Governor Lisa Cook, we had Governor

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Speaker 10: Governor Christopher Waller. I'll kind of give a bit of

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Speaker 10: what I saw is still kind of the status quo

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Speaker 10: A bit on this, which is that you know they're optimistic,

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Speaker 10: bit that inflation is cooling, but it's just really not

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Speaker 10: time to cut rags yet. I think we still need

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Speaker 10: to wait a bit more time before we ultimately see

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Speaker 10: some specificity with which Fed officials are willing to say.

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Speaker 10: This is when you know we're actually going to see

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Speaker 10: a cut.

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Speaker 2: Yeah, no one wants to start cutting if they're going

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Speaker 2: to have to hike again. All right, Bloomberg's Economy and

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Speaker 2: Government editor Jill Deesis.

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Speaker 9: We thank you for that analysis.

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Speaker 1: Now we're going to pivot to another story this morning.

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Speaker 1: Russia is steadily expanding its influence across Africa with arm sails,

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Speaker 1: Kremlin sponsored beauty pageants, and more recently free grain. It's

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Speaker 1: the subject of a deep dive story that we have

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Speaker 1: on the Bloombergmanal this morning. And joining us to discuss

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Speaker 1: is our Bloomberg Africa correspondent in Dhaka, Katerina Hoiser. Welcome

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Speaker 1: to Bloomberg Radio, Katerina, and for telling us about your story.

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Speaker 1: What does Russia hope to get in return for all

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Speaker 1: of this investment?

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Speaker 11: Well, I mean Russia is looking for new markets to

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Speaker 11: sell its grains. As it's facing sanctions or its war

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Speaker 11: in Ukraine. I mean, Russia is the world's biggest export

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Speaker 11: of wheats and it has a glood of grain after

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Speaker 11: several bumper harvests, and almost half of the nations in

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Speaker 11: Africa order in port thirty percent of the wheat from

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Speaker 11: either Ukraine or Russia. So as Ukraine is having difficulty

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Speaker 11: exporting its wheat since the beginning of the war and

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Speaker 11: also since last year as Moscow announced its decision to

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Speaker 11: end the Black Sea Grain Initiative, Russia is probably hoping

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Speaker 11: to fill some of that gap and also soften some

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Speaker 11: of the impact of viewers and European sanctions. Secondly, it's

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Speaker 11: also good pr for Moscow. While the donations are pretty

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Speaker 11: small between twenty five thousand and fifty thousand tons of wheat,

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Speaker 11: and we'll only cover small part of these countries' needs

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Speaker 11: by donating food, Moscow comes across as Africa's friend and

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Speaker 11: someone who sees the continent struggle, so this helps us.

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Speaker 11: The Kremlin is also looking for support on an international

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Speaker 11: state for example, for allies, they will vote in its

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Speaker 11: favor to you.

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Speaker 3: And.

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