Congress Plan to Avert Shutdown; Fed's Powell to Testify

Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:19.640 following today. We begin with policy. In Washington, congressional leaders 0:00:19.680 --> 0:00:22.439 have unveiled a plan to fund parts of the federal 0:00:22.440 --> 0:00:25.960 government through the end of September. Bloomberg's Ed Baxter has 0:00:26.000 --> 0:00:26.440 the story. 0:00:27.120 --> 0:00:29.920 It's four hundred and thirty six billion dollars and covers 0:00:29.920 --> 0:00:33.240 about a quarter of the overall government spending. It represents 0:00:33.280 --> 0:00:37.720 the first real progress toward resolving ideological clashes, but at 0:00:37.720 --> 0:00:41.400 the same time does not address the sharply partisan issues 0:00:41.400 --> 0:00:45.480 that keep pushing last minute shut down anxiety. It does 0:00:45.520 --> 0:00:49.319 not address Pentagon spending, for example. It does include, though, 0:00:49.360 --> 0:00:52.640 a provision to prevent oil sales from the US Strategic 0:00:52.680 --> 0:00:57.200 Petroleum Reserve to China. Ed Baxter, Bloomberg Radio, All. 0:00:57.160 --> 0:00:59.560 Right, Ed, thank you, Ale. Turning to the presidential race. 0:00:59.640 --> 0:01:03.120 Nikki Haley just won her first Republican primary. It's in 0:01:03.160 --> 0:01:05.880 the district of Columbia, where, with one hundred percent of 0:01:05.920 --> 0:01:09.399 the votes counted, Hailey took sixty two point eight percent 0:01:09.480 --> 0:01:12.600 to former President Trump's thirty three point three percent. Before 0:01:12.600 --> 0:01:14.880 the win Hailey hinted she might stay in the race 0:01:14.920 --> 0:01:17.640 all the way to the Republican National Convention in July. 0:01:18.120 --> 0:01:20.440 If the people want to see me go forward, they'll 0:01:20.440 --> 0:01:20.840 show it. 0:01:21.200 --> 0:01:23.000 They'll show it in their votes, they'll show it in 0:01:23.000 --> 0:01:24.880 their donations, They'll show it in the fact that they 0:01:24.880 --> 0:01:26.320 want us to continue to go forward. 0:01:26.720 --> 0:01:29.160 And Nikki Haley spoke on NBC's Meet the Press her 0:01:29.160 --> 0:01:31.560 in Sundays on Bloomberg Radio. Her win in the DC 0:01:31.720 --> 0:01:35.000 primary gives her nineteen convention delegates, bringing her total to 0:01:35.080 --> 0:01:38.240 forty three. Former President Trump has racked up two hundred 0:01:38.240 --> 0:01:40.840 and forty four delegates so far. He's likely to pick 0:01:40.880 --> 0:01:44.480 up many more when fifteen states vote tomorrow and Super Tuesday. 0:01:44.600 --> 0:01:46.920 I mean, while Karen, former President Trump could learn today 0:01:46.959 --> 0:01:50.000 whether the Supreme Court lets him appear on the Colorado ballot. 0:01:50.040 --> 0:01:53.320 The justices are expected to decide at least one case today. 0:01:53.680 --> 0:01:56.280 Signs are pointing to resolution of the Colorado case. The 0:01:56.320 --> 0:01:59.160 threatened to kick Trump off some state ballots because of 0:01:59.200 --> 0:02:01.919 his efforts to over return his twenty twenty election loss. 0:02:02.120 --> 0:02:05.080 Trump is challenging a Colorado Supreme Court decision that he 0:02:05.120 --> 0:02:08.600 has disqualified from being president again and ineligible for the 0:02:08.600 --> 0:02:10.160 state's primary tomorrow. 0:02:10.400 --> 0:02:10.560 Well. 0:02:10.600 --> 0:02:12.520 Turning to the Middle East, now, Nathan calls for a 0:02:12.560 --> 0:02:16.120 ceasefire between Israel and Hamas are growing louder. Vice President 0:02:16.160 --> 0:02:18.760 Kamala Harris is now calling for a pause in the 0:02:18.760 --> 0:02:19.680 fighting in Gaza. 0:02:20.040 --> 0:02:25.359 Let's get a ceasefire, let's reunite the hostages with their families, 0:02:26.360 --> 0:02:31.200 and let's provide immediate relief to the people of Gaza. 0:02:31.360 --> 0:02:34.399 Vice President Harris spoke in Selma, Alabama, a day after 0:02:34.560 --> 0:02:37.960 US officials said Israel had essentially agreed to a six 0:02:38.040 --> 0:02:42.360 week ceasefire if Amas hands over vulnerable hostages. Meanwhile, a 0:02:42.400 --> 0:02:45.520 new Gallup poll shows Americans are less favorable of both 0:02:45.560 --> 0:02:48.959 Israel and the Palestinian authority since the Gaza war began. 0:02:49.360 --> 0:02:52.600 Fifty eight percent say they have a positive view of Israel. 0:02:52.680 --> 0:02:56.560 That's down ten percentage point since last year. Favorable views 0:02:56.600 --> 0:03:00.480 of the Palestinian authority have dropped from eighteen to eight percent. 0:03:00.880 --> 0:03:04.760 Now, let's look toward outer space. Karen SpaceX has successfully 0:03:04.800 --> 0:03:08.400 launched another Falcon nine spacecraft from NASA's Kennedy Space Center 0:03:08.440 --> 0:03:11.960 in Florida. The one cosmonaut and three astronauts on border 0:03:12.040 --> 0:03:16.280 headed to the International Space Station, American astrobiologist and former 0:03:16.400 --> 0:03:19.960 NASA employee Keith Cowing says, for SpaceX, incredible feats like 0:03:20.040 --> 0:03:21.680 this are becoming routine. 0:03:21.840 --> 0:03:24.760 They're always exciting, but I'll be honest with you, these 0:03:24.800 --> 0:03:27.320 SpaceX things are starting to get a little boring, which 0:03:27.680 --> 0:03:29.960 is a good thing, because we're at least now going 0:03:30.000 --> 0:03:33.040 from being scared every time we launched the crew. Just 0:03:33.040 --> 0:03:38.080 something that's approaching, maybe not routine, but acceptable, and that's again, 0:03:38.160 --> 0:03:38.720 that's a good thing. 0:03:39.080 --> 0:03:42.240 American astrobiologist Keith Cowing says after last night's launched, the 0:03:42.240 --> 0:03:45.400 spacecraft is expected to dock autonomously to the space station 0:03:45.560 --> 0:03:48.200 at about three am Eastern time tomorrow morning. 0:03:49.000 --> 0:03:51.400 Well, Nathan, turning to the markets. Now, for the first time, 0:03:51.520 --> 0:03:54.400 Japan's and EK two twenty five stock average are past 0:03:54.560 --> 0:03:57.880 forty thousand. Investors around the world have been piling into 0:03:57.960 --> 0:04:02.360 Japan's biggest companies on moving shareholder returns, the weaker yen 0:04:02.760 --> 0:04:04.119 and booming corporate profits. 0:04:04.320 --> 0:04:06.240 And back on Wall Street Care and another firm is 0:04:06.280 --> 0:04:09.120 lifting its price target for US stocks. We get that 0:04:09.240 --> 0:04:14.000 story from Bloomberg's Jeff Bellinger. Bank of Americas Savita Subramanian 0:04:14.080 --> 0:04:16.760 now expects the S and P five hundred to end 0:04:16.800 --> 0:04:19.400 the year at fifty four hundred. That is up from 0:04:19.400 --> 0:04:22.760 her earlier target to five thousand and indicates about a 0:04:22.800 --> 0:04:26.960 five percent gain from Friday's close. She says indicators are 0:04:27.000 --> 0:04:31.680 flashing bullish signals on stronger earnings growth ahead and surprising 0:04:31.720 --> 0:04:35.840 profit margin resilience. Ba A's fifty four hundred price target 0:04:35.960 --> 0:04:38.560 now ranks as one of the most bullish on Wall Street. 0:04:38.839 --> 0:04:42.000 Subramanian joins the ranks of Ed yard Denny of Yard 0:04:42.000 --> 0:04:45.880 Denny Research and Jonathan Gollub of UBS, who both hold 0:04:45.920 --> 0:04:49.800 the same year end outlook. Jeff Bellinger, Bloomberg Radio. 0:04:50.080 --> 0:04:52.440 All right, Jeff. Thanks. While stocks begin the week at 0:04:52.480 --> 0:04:55.960 record levels, Bitcoin is edging up near its all time hi. 0:04:56.360 --> 0:04:59.560 The cryptocurrency is trading above sixty five thousand. Traders are 0:04:59.600 --> 0:05:01.920 betting on price to soon cross the record of almost 0:05:01.920 --> 0:05:05.080 sixty nine thousand dollars reached during the COVID pandemic in 0:05:05.160 --> 0:05:08.320 November twenty twenty one. Bitcoin has jumped about one hundred 0:05:08.320 --> 0:05:10.479 and eighty six percent in the last twelve months, and 0:05:10.560 --> 0:05:13.800 right now is at sixty five one hundred dollars. We 0:05:13.920 --> 0:05:16.080 turn to the economy now and interest rates will be 0:05:16.160 --> 0:05:18.839 in focus this week. FED Chair j Powell is delivering 0:05:18.839 --> 0:05:21.360 congressional testimony this week. We get the latest with the 0:05:21.360 --> 0:05:23.719 Bloomberg's John Tucker, John and Karen. 0:05:23.800 --> 0:05:26.680 Powell's expected to double down on his message that there's 0:05:26.839 --> 0:05:30.120 no rush to cut interest rates. He delivers his semi 0:05:30.200 --> 0:05:34.159 annual monetary policy testimony to a House committee Wednesday and 0:05:34.200 --> 0:05:37.800 then a Senate panel on Thursday. Powell and nearly all 0:05:37.880 --> 0:05:40.400 his colleagues have said in recent weeks that they can 0:05:40.400 --> 0:05:42.839 afford to be patient in deciding when to cut rates, 0:05:43.000 --> 0:05:46.200 given that the underlying strength in the US economy. That 0:05:46.360 --> 0:05:49.680 cautious approach has been validated in recent weeks by data 0:05:49.720 --> 0:05:53.480 showing inflation picked up last month. On Democrats in Congress 0:05:53.800 --> 0:05:56.480 likely to press the FED chief on why officials are 0:05:56.520 --> 0:05:59.400 keeping borrowing costs so high on the path of rates 0:05:59.480 --> 0:06:03.120 good effect the November election. John Tucker, Bloomberg Radio. 0:06:03.080 --> 0:06:05.560 Okay, John, thank you. In company news, we're watching shares 0:06:05.600 --> 0:06:08.800 of Macy's this morning. They're up nearly fourteen percent in 0:06:08.839 --> 0:06:12.839 early trading. Investors are boosting their takeover bid for the retailer. 0:06:13.200 --> 0:06:15.440 That story from Bloomberg's Doug Prisner. 0:06:15.520 --> 0:06:19.320 Back in January, arc House Management and Brigade Capital offered 0:06:19.360 --> 0:06:22.440 five point eight billion dollars for Macy's, but the retailer 0:06:22.480 --> 0:06:26.400 rejected the bid, saying it lacked compelling value. Well now, 0:06:26.560 --> 0:06:29.800 ourk House and Brigade have boosted their offer by fourteen percent. 0:06:30.200 --> 0:06:34.159 It's worth six point six billion per share twenty four dollars. 0:06:34.240 --> 0:06:37.400 The latest bid is a thirty three percent premium to 0:06:37.480 --> 0:06:40.760 Macy's closing price on Friday, and the investor group also 0:06:40.880 --> 0:06:45.640 disclosed equity partners in the proposed transaction Fortress Investment Group 0:06:45.920 --> 0:06:50.520 and One Investment Management US in New York. I'm Doug Prisoner, Bloomberg. 0:06:50.120 --> 0:06:53.040 Radio, all right, Doug, thanks well. In Asia, Chinese Premier 0:06:53.120 --> 0:06:55.480 Leak Chong will break tradition at the end of the 0:06:55.600 --> 0:06:59.240 National People's Congress, and Bloomberg and Daybreak Asia anchor Brian 0:06:59.320 --> 0:07:01.039 Curtis has more from Hong Kong. 0:07:01.279 --> 0:07:04.760 Premierly will not hold a news briefing, killing a long 0:07:04.800 --> 0:07:08.160 standing tradition. This will surely fan fears of a lack 0:07:08.200 --> 0:07:11.080 of openness by the Chinese leadership. It will be seen 0:07:11.120 --> 0:07:15.320 as diminishing access to information. In addition, a spokesperson said 0:07:15.320 --> 0:07:17.720 this will continue for the remainder of this term of 0:07:17.760 --> 0:07:21.080 the NBC. China will set a growth target for this 0:07:21.200 --> 0:07:24.000 year and what's likely to be a slight increase in 0:07:24.080 --> 0:07:26.960 deficit spending. But the thing is we may not hear 0:07:27.040 --> 0:07:30.400 much about the reasoning behind it. In Hong Kong, Brian Curtis, 0:07:30.440 --> 0:07:31.320 Bloomberg Radio. 0:07:31.600 --> 0:07:36.800 All right, Brian, thank you, and it's time now for 0:07:36.840 --> 0:07:38.800 a look at some of the other stories making news 0:07:38.800 --> 0:07:41.240 in New York and around the world. And for that 0:07:41.280 --> 0:07:43.600 we're joined by Bloomberg's Michael Barr. 0:07:43.640 --> 0:07:47.120 Michael, good morning, Good morning, Karen. Congestion pricing is set 0:07:47.200 --> 0:07:50.520 up in London now. The final set of MTA hearings 0:07:50.560 --> 0:07:54.800 about congestion pricing in Manhattan takes place today. The two 0:07:54.840 --> 0:07:57.480 final hearings are schedule for ten am and six pm 0:07:57.560 --> 0:08:00.760 at the MTA headquarters. New York. Carrier residents will have 0:08:00.800 --> 0:08:04.280 another chance to share their thoughts on congestion pricing. South 0:08:04.320 --> 0:08:07.760 of sixtieth Street. Most drivers and cars would pay a 0:08:07.760 --> 0:08:10.480 fee of at least fifteen dollars. That's on top of 0:08:10.520 --> 0:08:13.280 paying the tolls to drive through the Lincoln or Holland Tunnel's. 0:08:13.520 --> 0:08:16.680 The plan is slated to begin in mid June. US 0:08:16.760 --> 0:08:20.239 military plane started dropping food aid into Gaza over the weekend. 0:08:20.760 --> 0:08:24.920 Former Marine fighter pilot Colonel Steve Ganyard explains the Air 0:08:24.960 --> 0:08:28.920 Force regularly makes air drops to resupply US Army units 0:08:28.920 --> 0:08:29.440 in the field. 0:08:29.920 --> 0:08:32.320 Part of the Air Force crew's mission is being able 0:08:32.320 --> 0:08:35.520 to air drop supplies. So in this case it's not 0:08:35.679 --> 0:08:38.760 US forces. Obviously they're close to the ground, and so 0:08:38.880 --> 0:08:41.560 you need a permissive environment where people aren't shooting at you. 0:08:41.960 --> 0:08:44.360 Presumably none of of a moss would be shooting at 0:08:44.520 --> 0:08:46.240 the US while they were trying to deliver this aid. 0:08:46.400 --> 0:08:50.400 Former pilot Steve Ganyard spoke to ABC. Authorities avoided a 0:08:50.480 --> 0:08:53.560 night time curfew in an attempt to regain control of 0:08:53.600 --> 0:08:57.200 Haiti streets after an explosion of violence during the weekend, 0:08:57.559 --> 0:09:01.240 including gunmen from gangs overrunning the centry's two biggest prisons 0:09:01.520 --> 0:09:05.240 and freeing their inmates. Democratic Senator Chris Murphy, one of 0:09:05.240 --> 0:09:08.800 the bipartisan senators who negotiated a border security deal that 0:09:08.840 --> 0:09:12.680 fell through after it failed to garner enough Republican support 0:09:12.679 --> 0:09:15.719 in the House, now urges Democrats to go on the 0:09:15.800 --> 0:09:19.680 offensive on immigration. Senator Murphy of Connecticut says he knows 0:09:19.720 --> 0:09:23.000 the reason. He believes Republicans chose to back out of 0:09:23.040 --> 0:09:23.400 the deal. 0:09:23.800 --> 0:09:27.880 Republicans blocked the bill because they knew only the legislation 0:09:27.960 --> 0:09:31.320 would be effective in controlling the border. They want the 0:09:31.320 --> 0:09:34.000 border to be out of control because it helps him politically, 0:09:34.080 --> 0:09:36.040 and they know the president has limits to what he 0:09:36.080 --> 0:09:37.760 can do through executive order. 0:09:37.880 --> 0:09:41.160 Senator Murphy spoke on ABC's This Week Heard Sundays on Bloomberg. 0:09:41.480 --> 0:09:44.320 An unlucky family in Sullivan County, New York, had a 0:09:44.440 --> 0:09:47.520 dangerous moment just hours after they moved into a house. 0:09:47.920 --> 0:09:51.840 A home in Monticello is now condemned after the home exploded. 0:09:52.440 --> 0:09:55.680 Firefighters and police officers responded to the blast on Emily 0:09:55.720 --> 0:09:58.760 Street over the weekend. The family had just finished unpacking 0:09:58.800 --> 0:10:01.720 two U haul trucks and was heading for bed when 0:10:01.880 --> 0:10:03.240 suddenly the blast occurred. 0:10:04.040 --> 0:10:06.000 It's laying down and all of a sudden, the whole 0:10:06.000 --> 0:10:07.600 house went boom and shook and. 0:10:09.040 --> 0:10:11.160 Ran out the door, spreadble. 0:10:11.320 --> 0:10:14.679 We couldn't go. One person is hospitalized with burns. Eight 0:10:14.720 --> 0:10:16.760 others managed to get out of the house uninjured. The 0:10:16.760 --> 0:10:19.520 cause of the explosion believed to have stemmed from a 0:10:19.559 --> 0:10:22.320 gas leak in the basement. Global News twenty four hours 0:10:22.360 --> 0:10:24.520 a day and whenever you want it. With Bloomberg News Now, 0:10:24.600 --> 0:10:26.400 I'm Michael Barrd. This is Bloomberg Naither. 0:10:26.600 --> 0:10:34.160 Okay, Michael, thank you time now for the Bloomberg Sports Update. 0:10:34.160 --> 0:10:36.160 Bron to you by tri stayed Out. Are you good morning, 0:10:36.240 --> 0:10:37.120 John stash Out. 0:10:36.960 --> 0:10:40.839 Good morning, Nathan and Nixon. Cleveland still without three injured starters, 0:10:40.840 --> 0:10:44.000 and then in the first minute, Jalen Brunson hurt his knee. 0:10:44.040 --> 0:10:46.160 They had to play without him, still beat the Calves 0:10:46.240 --> 0:10:49.040 one oh seven ninety eight twenty of Nick Hero's Josh 0:10:49.080 --> 0:10:51.400 Hart played forty five minutes at a triple double that 0:10:51.480 --> 0:10:55.960 included nineteen rebounds. Duce McBrien came in for Brunson, never left. 0:10:56.000 --> 0:10:59.679 He played forty seven minutes twenty eight points for Dante DiVincenzo. 0:11:00.040 --> 0:11:02.320 Just needed win for the next who had lost seven 0:11:02.360 --> 0:11:04.840 of their previous nine, and the news on Brunson's knee 0:11:04.880 --> 0:11:06.720 injury is encouraging a. 0:11:06.760 --> 0:11:09.439 Contusion X rays. We're negative in Boston. 0:11:09.480 --> 0:11:11.800 The celtics eleventh win in a row was their third 0:11:11.840 --> 0:11:13.960 win of the season by fifty or more points. 0:11:13.960 --> 0:11:14.840 That's an NBA record. 0:11:14.880 --> 0:11:18.160 The Celtics over Golden State one forty to eighty eight 0:11:18.240 --> 0:11:22.120 This game was eighty two to thirty eight at halftime Kyler, Jops, 0:11:22.120 --> 0:11:24.360 Seaton Hall or Older. The season had that upset of Yukon. 0:11:24.480 --> 0:11:27.559 The Husky's got revenge beat the Pirates by thirty and 0:11:27.600 --> 0:11:30.480 that clinches the Big East regular season title for. 0:11:30.600 --> 0:11:31.559 Uth Khon and Iowa. 0:11:31.679 --> 0:11:34.800 Last home game for Kitlin Clark yet another milestone, more 0:11:34.840 --> 0:11:40.120 points than Pete Merrivitch, so most points scored male or female. 0:11:40.960 --> 0:11:43.160 It's like hard for me to wrap my head around 0:11:43.200 --> 0:11:45.680 everything that's going on. I think I'm just trying to 0:11:45.679 --> 0:11:48.920 soak in the moment. A record is a record. I 0:11:48.920 --> 0:11:50.760 don't want that to be the reason people remember me. 0:11:50.840 --> 0:11:53.000 I hope people remember me for the way I played 0:11:53.000 --> 0:11:56.280 with a smile on my face, my competitive fire. Sure 0:11:56.320 --> 0:11:59.040 they can remember the wins, but also just like the 0:11:59.120 --> 0:12:00.840 fun me and my team and they's tied together. 0:12:01.360 --> 0:12:03.679 And a big win for Clark and Iowa over second 0:12:03.760 --> 0:12:07.160 ranked Ohio State, top ranked South Carolina b Tennessee to 0:12:07.240 --> 0:12:10.560 complete a second consecutive twenty nine to zero regular season 0:12:10.840 --> 0:12:13.160 and Tampa Yankees may have lost with the Tigers seven 0:12:13.200 --> 0:12:15.680 to two, but a Juan Soto home run first in 0:12:15.720 --> 0:12:18.920 which gave him three homers in his first seven exhibition 0:12:19.040 --> 0:12:21.480 season at bats, also in Florida. They couldn't finish the 0:12:21.520 --> 0:12:24.600 cognizant golf will do so today, twenty five year old 0:12:24.600 --> 0:12:27.880 American and Austin ekrot as a one shot John Stash 0:12:27.920 --> 0:12:28.960 Allen Bloomberg Sports. 0:12:29.000 --> 0:12:31.280 Maybe all right, John, thank you know. Let's get right 0:12:31.280 --> 0:12:33.480 back to this market, starting a trading week at yet 0:12:33.559 --> 0:12:35.520 new all time highs for the S and P five 0:12:35.600 --> 0:12:38.959 hundred and the Nasdak. Even Japan's niek has crossed forty 0:12:39.000 --> 0:12:41.560 thousand for the first time ever. That's as we wait 0:12:41.600 --> 0:12:44.840 for more clues on the raid path from fedcher Jerome Powell. 0:12:44.880 --> 0:12:46.560 This week, let's bring in Jeff for you for some 0:12:46.600 --> 0:12:51.800 market analysis, a senior EMEA market strategist at BNY Mellon, Jeff, 0:12:51.840 --> 0:12:54.600 it seems like Wall Street analysts are sort of falling 0:12:54.600 --> 0:12:57.280 all over themselves raising their price targets for the S 0:12:57.320 --> 0:12:59.679 and P five hundred. Now we got Savita Supermanian at 0:12:59.679 --> 0:13:02.920 Bank of America raising the fifty four hundred. Is there 0:13:02.960 --> 0:13:06.720 too much euphoria in this market? Is it well placed? 0:13:07.920 --> 0:13:08.040 Well? 0:13:08.080 --> 0:13:10.360 Good morning. I think it's often the case, no matter 0:13:10.480 --> 0:13:14.240 you know what benchmark you use. Once expectations are raised 0:13:14.280 --> 0:13:16.720 and raised and raised, becomes harder to hit them, right, 0:13:16.800 --> 0:13:21.120 So I think people will be querying that in the US, whereby, 0:13:21.280 --> 0:13:25.160 if we look at other markets right now, expectations are 0:13:25.200 --> 0:13:28.439 relatively muted right now, so perhaps it's a bit easier 0:13:28.440 --> 0:13:31.280 to hit those expectations and surpass them. So I think 0:13:31.280 --> 0:13:34.040 for US assets in general to helperform up ahead may 0:13:34.160 --> 0:13:35.720 just be a bit trickier this month. 0:13:36.080 --> 0:13:39.559 Interesting, So does that have you thinking that investors should 0:13:39.559 --> 0:13:41.880 be taking a little bit more of a look at 0:13:42.040 --> 0:13:45.440 markets outside the US as we get into the balance 0:13:45.440 --> 0:13:45.840 of the year. 0:13:46.840 --> 0:13:48.959 One hundred percent, right, so you know two or three things. 0:13:49.040 --> 0:13:49.199 Yeah. 0:13:49.200 --> 0:13:52.560 Firstly, let's look at emerging markets. This is one area 0:13:52.600 --> 0:13:55.160 where we're expected a new wave of vasa allocation flow 0:13:55.200 --> 0:13:58.240 this year, especially in bonds and to a lesser extent, 0:13:58.440 --> 0:14:02.440 equities APAC. For example, if China and Japan there's both 0:14:02.440 --> 0:14:06.719 potential for reflation, then earnings should continue to surprise the 0:14:06.800 --> 0:14:08.880 upside as well. And in Japan even I'm not just 0:14:08.920 --> 0:14:12.840 talking about the FX translation side of things, Latin America 0:14:12.840 --> 0:14:15.880 still offers you very very good at real rates, even 0:14:15.920 --> 0:14:19.280 relative to the US. So there are other opportunities I'm 0:14:19.280 --> 0:14:21.960 out there. I just think the market, well, the US 0:14:22.080 --> 0:14:25.880 is outperforming, that exceptionalism narrative is fully in place, maybe 0:14:25.880 --> 0:14:29.920 even relative to high expectations. Ass allocations may just be 0:14:29.960 --> 0:14:31.120 a bit too overweight right now. 0:14:31.360 --> 0:14:33.400 Now when it comes to the US market, what are 0:14:33.480 --> 0:14:37.520 some of the headwinds, the major headwinds that are informing 0:14:37.560 --> 0:14:38.160 your view. 0:14:39.520 --> 0:14:44.960 Well, in addition to rhina equity, in addition to equity 0:14:44.960 --> 0:14:48.800 expectations and being raised. I'm looking at our custodial data 0:14:48.920 --> 0:14:51.480 right now and flows into bond markets. And one interesting 0:14:51.960 --> 0:14:54.640 theme that we've established over the past month is if 0:14:54.680 --> 0:14:57.400 in November and December it was about getting out of 0:14:57.400 --> 0:15:00.440 frontend due to expectations of rate cuts and moving into uration, 0:15:00.960 --> 0:15:03.920 right now we are seeing flows across the curve. So 0:15:04.240 --> 0:15:07.880 it's actually mattering even less to clients with regard to 0:15:07.920 --> 0:15:10.640 their bond exposures whatever part of the curve, and they're 0:15:10.640 --> 0:15:13.760 looking at they just want to own dollars at full stop, 0:15:14.000 --> 0:15:17.640 not saying that this is a risky prospect near right now, Again, 0:15:17.680 --> 0:15:21.920 the US is outperforming without excessive inflation. But again, you know, 0:15:22.000 --> 0:15:24.080 this is where even if I look at equity and 0:15:24.080 --> 0:15:26.680 performance allocations may just be a bit too extreme. Brino 0:15:26.680 --> 0:15:29.440 It's almost as no infrast rate risk is being priced in, 0:15:29.600 --> 0:15:32.040 and that looks a bit excessive considering what's going to 0:15:32.040 --> 0:15:33.920 happen this year with respect to the economy. 0:15:34.040 --> 0:15:35.960 I wonder what you made of tourist and slocks call 0:15:36.040 --> 0:15:38.360 over to Paula management last week that the FED might 0:15:38.400 --> 0:15:40.040 not be able to cut rates at all this year. 0:15:40.720 --> 0:15:43.080 We will still take the other side of that. Inflation 0:15:43.120 --> 0:15:45.440 will continue to soften if you look at some of 0:15:45.440 --> 0:15:48.000 the core items I think that trenders in place. Central 0:15:48.040 --> 0:15:50.880 banks right now they need to retain optionality. They will 0:15:50.880 --> 0:15:52.960 not state they will not pre commit to cut, but 0:15:53.000 --> 0:15:55.520 they'll absolutely not pre commit to say there won't be 0:15:55.560 --> 0:15:59.240 any cuts either this year. They will be data dependent, 0:15:59.320 --> 0:16:02.160 and right now we think data will continue to justify easing, 0:16:02.240 --> 0:16:05.360 this easing in Q two, So we will absolutely take 0:16:05.400 --> 0:16:06.080 the other side of fact. 0:16:07.800 --> 0:16:10.880 This is Bloomberg Daybreak Today, your morning brief on the 0:16:10.920 --> 0:16:14.320 stories making news from Wall Street to Washington and beyond. 0:16:14.600 --> 0:16:17.360 Look for us on your podcast feed at six am 0:16:17.440 --> 0:16:21.120 Eastern each morning on Apple, Spotify, and anywhere else you 0:16:21.160 --> 0:16:22.359 get your podcasts. 0:16:22.480 --> 0:16:25.160 You can also listen live each morning starting at five 0:16:25.200 --> 0:16:27.800 am Wall Street time on Bloomberg eleven three to zero 0:16:27.840 --> 0:16:31.320 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:31.360 --> 0:16:33.960 one oh six to one in Boston, and Bloomberg nine 0:16:34.040 --> 0:16:35.440 sixty in San Francisco. 0:16:35.800 --> 0:16:38.760 Our flagship New York station is also a chal on 0:16:38.800 --> 0:16:43.360 your Arizona one in Boston just six late Bloomberg eleven 0:16:43.480 --> 0:16:44.440 thirty plus. 0:16:44.480 --> 0:16:48.040 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:48.240 --> 0:16:52.280 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:52.080 --> 0:16:55.200 And I'm Karen Moscow. Join us again tomorrow morning for 0:16:55.320 --> 0:16:57.840 all the news you need to start your day right 0:16:57.880 --> 0:16:59.560 here on Bloomberg Daybreak