Shutdown Averted; Stocks at Record Highs

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 --> 0:00:15.960 following today. 0:00:16.480 --> 0:00:19.840 We begin in Washington, where Congress has kept the lights 0:00:19.880 --> 0:00:20.640 on again. 0:00:21.200 --> 0:00:24.560 I'm happy to inform the American people there will be 0:00:24.600 --> 0:00:26.680 no government shutdown on Friday. 0:00:26.920 --> 0:00:30.240 Senate Majority Leader Chuck Schumer is celebrating after the Senate 0:00:30.280 --> 0:00:32.920 passed a temporary spending bill last night that keeps some 0:00:33.040 --> 0:00:35.519 parts of the government open until March eighth and the 0:00:35.560 --> 0:00:39.440 rest through March twenty second. Bloomberg's Eric Wasson has more 0:00:39.479 --> 0:00:40.680 details from Washington. 0:00:40.920 --> 0:00:43.720 Behind the scenes, there's also sort of an agreement on 0:00:43.800 --> 0:00:48.400 a six bill package full year funding for about twenty 0:00:48.440 --> 0:00:51.720 seven percent of agency spending. We're exciting to see that 0:00:51.840 --> 0:00:54.480 release sometime this weekend, probably on Sunday. 0:00:54.560 --> 0:00:57.560 Bloomberg's Eric Wasson reports Republicans in the House have been 0:00:57.560 --> 0:01:00.800 told not to expect many victories when those tales come out. 0:01:01.000 --> 0:01:03.760 The temporary spending bill is now headed to the White House, 0:01:03.800 --> 0:01:06.440 where President Biden plans to sign it well. 0:01:06.560 --> 0:01:10.280 Nathan, turning to presidential politics, the border is quickly replacing 0:01:10.280 --> 0:01:13.640 the economy is the most important issues for American voters, 0:01:13.640 --> 0:01:17.680 and Bloomberg's Ed Baxter reports the front runners are paying attention. 0:01:18.160 --> 0:01:21.160 Both President Joe Biden and Donald Trump visiting the border 0:01:21.440 --> 0:01:24.679 two different locations and both blaming each other. Trump at 0:01:24.680 --> 0:01:26.280 Eagles Pass, people. 0:01:26.000 --> 0:01:29.959 From places unknown, from countries unknown, who don't speak languages. 0:01:30.000 --> 0:01:32.480 We have languages coming into a country. We have nobody 0:01:32.480 --> 0:01:36.399 that even speaks those languages. They truly foreign languages. Nobody 0:01:36.400 --> 0:01:37.160 speaks them. 0:01:37.200 --> 0:01:40.280 Biden at Brownsville, folks, So my first day is president 0:01:40.720 --> 0:01:43.400 I introduced to Bill, I sent to Congress a comprehensive 0:01:43.440 --> 0:01:47.400 plan to fix the broken immigration system and to secure 0:01:47.440 --> 0:01:49.760 the border, but no action was taken. 0:01:50.040 --> 0:01:54.120 Trump calling it a Biden invasion, Biden saying the Congress 0:01:54.120 --> 0:01:57.960 and Republicans must act. Ed Baxter Bloomberg Radio, All right, Ed, 0:01:58.000 --> 0:01:59.960 thank you. Now, he turned to the markets where stock 0:02:00.200 --> 0:02:02.920 begin the new month. That record highs. We get more 0:02:03.000 --> 0:02:05.480 from Bloomberg's John Tucker, John and Nathan. 0:02:05.480 --> 0:02:07.280 The S and P five hundredth, the NASDAK, and the 0:02:07.320 --> 0:02:11.120 NASDAK one hundred all ended Thursday session at records. In fact, 0:02:11.120 --> 0:02:13.840 the S and P five hundred so it's fourteenth record 0:02:13.840 --> 0:02:17.360 this year. The NASDAQ one hundred climbed almost one percent, 0:02:17.480 --> 0:02:21.600 with Nvidia leading gains and megacaps. Investor is also encouraged 0:02:21.639 --> 0:02:24.320 that the latest inflation data was not as hot as 0:02:24.360 --> 0:02:27.920 some expected. At Lauren San Philippo at Merrill and Bank 0:02:27.919 --> 0:02:31.600 of America Private Bank thinks stocks can move higher from here. 0:02:31.919 --> 0:02:33.960 There's a lot of things to look forward to. Right 0:02:34.000 --> 0:02:37.040 we have this said pivot that's being priced in. Growth 0:02:37.080 --> 0:02:40.080 is certainly surprising to the upside the Sate Atlanta tracker 0:02:40.200 --> 0:02:43.120 for GDP for this quarter three point two percent, So 0:02:43.200 --> 0:02:46.160 again surprises city upside will certainly matter, and I think 0:02:46.240 --> 0:02:48.040 kerry the market through this year. 0:02:48.480 --> 0:02:50.720 A signed from economic data. The four hundred and eighty 0:02:50.760 --> 0:02:52.640 nine companies of the S and P five hundred that 0:02:52.680 --> 0:02:56.200 have reported earning so far this season, seventy six percent 0:02:56.520 --> 0:02:59.639 have delivered positive earning surprises. A year to date, the 0:02:59.760 --> 0:03:02.840 SCID five and the NASDEK are up around seven percent. 0:03:03.240 --> 0:03:05.040 John Tucker, Bloomberg Radio. 0:03:05.000 --> 0:03:07.600 All right, John, thanks so one stock participating in the 0:03:07.720 --> 0:03:11.880 rally as Dell shares surging twenty two percent. The computer 0:03:11.960 --> 0:03:16.400 hardware company reported fourth quarter results that beat expectations. Analysts 0:03:16.400 --> 0:03:20.120 say demand for artificial intelligence servers is driving momentum well On. 0:03:20.120 --> 0:03:22.440 The flip side, Karen Shares of New York Community Bank 0:03:22.480 --> 0:03:25.920 Corpor Down more than twenty seven percent. The commercial real 0:03:26.040 --> 0:03:28.440 estate lender took a two point four billion dollar hit 0:03:28.520 --> 0:03:32.320 to earnings as it identified weaknesses with its loan review process, 0:03:32.680 --> 0:03:34.600 details from Bloomberg's Charlie Pellett. 0:03:35.040 --> 0:03:37.600 The bank also said it needs more time to file 0:03:37.640 --> 0:03:41.000 its annual report to regulators as it shores up its 0:03:41.160 --> 0:03:46.240 internal controls. In a separate filing, NYCB said quote management 0:03:46.360 --> 0:03:51.440 identified material weaknesses in the company's internal controls related to 0:03:51.640 --> 0:03:58.680 internal loan review resulting from ineffective oversight, risk management, unmonitoring activities. 0:03:59.040 --> 0:04:02.280 The announcement re so drama that erupted at the end 0:04:02.280 --> 0:04:06.400 of January when the bank slashed its dividend and stockpiled 0:04:06.440 --> 0:04:10.320 cash to cover troubled loans in New York. Charlie Pellet, 0:04:10.360 --> 0:04:13.440 Bloomberg Radio and Charlie. The bank's also changing bosses. 0:04:13.560 --> 0:04:18.120 Alessandro Dinelli will become chief executive Officer, effective immediately, succeeding 0:04:18.160 --> 0:04:20.760 Thomas Kangemme Well Nathan. 0:04:20.800 --> 0:04:24.240 While equities overall sit at record highs, it's also been 0:04:24.320 --> 0:04:27.360 quite a run for bitcoin. The cryptocurrency is more than 0:04:27.440 --> 0:04:30.400 forty two percent this year. Demand for the token from 0:04:30.520 --> 0:04:33.800 new US exchange traded funds is helping fuel the rally, 0:04:34.000 --> 0:04:37.919 which saw bitcoin surged over sixty three thousand dollars earlier 0:04:37.960 --> 0:04:41.039 this week, but Michael nova Grants, the CEO of Galaxy 0:04:41.040 --> 0:04:43.960 Digital Holdings, expects a pullback in the near term. 0:04:44.120 --> 0:04:47.360 I would say we've got the very frothy frothy levels, 0:04:47.400 --> 0:04:50.320 and so I wouldn't be surprised to see some correction 0:04:50.600 --> 0:04:54.919 in some consolidation. But I'm very loath to pick a 0:04:54.920 --> 0:04:56.520 Bitcoin high because. 0:04:56.320 --> 0:04:59.360 I really do believe this is price discovery. 0:04:59.200 --> 0:05:02.520 And Galaxy did you, CEO Michael Novagrad, says bitcoin could 0:05:02.560 --> 0:05:05.719 pull back to the mid fifty thousand level before rallying 0:05:05.760 --> 0:05:08.400 to new highs. Looking at Bitcoin right now, it's at 0:05:08.440 --> 0:05:10.599 about sixty two one hundred dollars. 0:05:10.760 --> 0:05:13.599 Turning to the economy, Karen, Despite the Fed's preferred measure 0:05:13.600 --> 0:05:16.440 of inflation rising at its fastest pace in nearly a year, 0:05:16.560 --> 0:05:19.840 more central bankers are talking about rate cuts. San Francisco 0:05:19.920 --> 0:05:23.400 FED president Mary Daily says policymakers are ready to take action. 0:05:23.760 --> 0:05:25.839 We want to avoid holding on all the way to 0:05:25.880 --> 0:05:29.520 two percent. They're putting policy very tight and then cause 0:05:29.520 --> 0:05:34.520 an unnecessary downturn. We are agile, and we're sitting in 0:05:34.640 --> 0:05:37.279 what I call the ready position. We are ready to 0:05:37.560 --> 0:05:40.640 make moves and adjust as the data demand us to do. 0:05:41.240 --> 0:05:43.440 And I think right now the economy and policy are 0:05:43.440 --> 0:05:44.440 in a good place to do that. 0:05:44.680 --> 0:05:47.280 San Francisco Fed chief Mary Daily added she's looking for 0:05:47.360 --> 0:05:50.839 quote a collage of evidence that inflation is moving sustainably lower. 0:05:51.080 --> 0:05:53.839 Daily spoke with David Weston on Bloomberg Wall Street. We 0:05:54.000 --> 0:05:57.159 catch the full conversation today at six pm Wall Street 0:05:57.200 --> 0:05:59.160 time on Bloomberg Radio and television. 0:06:00.080 --> 0:06:02.560 Than over in Europe, big changes are coming at the 0:06:02.560 --> 0:06:06.200 Swiss National Bank. Thomas Jordan is leaving the SMB later 0:06:06.320 --> 0:06:09.080 this year after more than a decade as president. It 0:06:09.160 --> 0:06:11.479 ends an era where his institution was at the heart 0:06:11.480 --> 0:06:14.919 of currency and banking turmoil that rippled around the world. 0:06:15.240 --> 0:06:18.280 Jordan is one of Switzerland's best known a most influential 0:06:18.279 --> 0:06:21.560 public officials. He steered the economy through the Euro Area 0:06:21.640 --> 0:06:24.880 dead crisis, remove the cap on the frank and twenty fifteen, 0:06:25.000 --> 0:06:27.279 and adopted the world's lowest interest rate. 0:06:27.600 --> 0:06:31.200 Moving to Asia, Karen manufacturing activity in China slumped in 0:06:31.240 --> 0:06:35.119 February as factories wrestled with weak demand. Bloomberg Daybreak Asia 0:06:35.160 --> 0:06:37.480 anchor Brian Curtis has more from Hong Kong. 0:06:37.720 --> 0:06:41.400 China's factory activity shrank for a fifth month, the official 0:06:41.440 --> 0:06:44.479 PMI coming in at forty nine point one, slightly better 0:06:44.520 --> 0:06:48.520 than expected but still in contraction that Taishin PMI came 0:06:48.560 --> 0:06:52.559 in stronger at fifty point nine. Surveys elsewhere in Asia 0:06:52.600 --> 0:06:56.480 showed manufacturers cutting output and new orders last month as 0:06:56.560 --> 0:06:59.960 due to subdued customer spending in both domestic and internet 0:07:00.040 --> 0:07:03.960 national markets. Taiwan's PMI edging down to forty eight point six, 0:07:04.320 --> 0:07:07.599 Japan's at forty seven point two in al Kong. 0:07:07.680 --> 0:07:09.279 Brian Curtis, Bloomberg. 0:07:08.880 --> 0:07:11.960 Radio, All right, Brian, thanks so, Bloomberg News has learned 0:07:11.960 --> 0:07:15.240 the World Trade Organization has made progress toward agreements on 0:07:15.320 --> 0:07:18.840 measures to broaden global trade. Sources say a final deal 0:07:18.880 --> 0:07:22.560 on agriculture subsidies, over fishing and tariff free e commerce 0:07:22.840 --> 0:07:25.720 are hinging on the willingness of major economies to make 0:07:25.840 --> 0:07:27.200 last minute concessions. 0:07:30.480 --> 0:07:31.680 So now to take a look at some of the 0:07:31.720 --> 0:07:34.080 other stories making news in New York and around the world, 0:07:34.080 --> 0:07:36.600 and for that we are joined by Bloomberg's Michael Barr. 0:07:36.600 --> 0:07:37.760 Good morning, Michael. 0:07:37.520 --> 0:07:41.240 Good morning, Nathan. There are conflicting reports about yesterday's events 0:07:41.560 --> 0:07:44.520 leading up to the depths of more than one hundred Palestinians, 0:07:44.920 --> 0:07:48.480 according to health officials in northern Gaza, witnesses say Israeli 0:07:48.520 --> 0:07:52.920 soldiers guarding an AID convoy in Gaza City opened fire 0:07:53.000 --> 0:07:56.800 on Palestinians racing to pull food off the trucks. Israel 0:07:56.840 --> 0:07:59.200 says many of the victims were run over by the 0:07:59.240 --> 0:08:02.880 trucks and that troops only opened fire when they felt 0:08:02.960 --> 0:08:06.720 endangered by the crowd. IDF spokesman Peter Lerner. 0:08:06.640 --> 0:08:11.400 A large amount of people were going on the trucks 0:08:11.440 --> 0:08:14.880 and looting them and trampling and crushing one another, and 0:08:14.920 --> 0:08:17.560 indeed many of the people that were injured or wounded 0:08:17.800 --> 0:08:20.920 or even killed were as a result of the truck movement. 0:08:21.280 --> 0:08:24.680 At a Pentagon briefing press Secretary Air Force Major General 0:08:24.800 --> 0:08:29.400 Pat Riders, the Defensive Department has repeatedly stressed to Israel 0:08:29.520 --> 0:08:31.920 the need to minimize civilian casualties. 0:08:32.160 --> 0:08:34.040 We're going to continue to work with partners in the 0:08:34.080 --> 0:08:37.480 region to try to ensure that humanitarian assistants can be 0:08:37.520 --> 0:08:40.320 delivered while at the same time communicating with our Israeli 0:08:40.360 --> 0:08:44.120 partners the importance of taking civilian safety into account. 0:08:44.360 --> 0:08:47.160 Major General Writers says the White House is asking for 0:08:47.200 --> 0:08:51.560 an investigation. Relatives and supporters of Alexi Navolni are bidding 0:08:51.640 --> 0:08:55.520 farewell to the Russian opposition leader. Today, a funeral is 0:08:55.600 --> 0:08:59.400 in southeastern Moscow after his still unexplained death in an 0:08:59.520 --> 0:09:03.560 Arctic peace colony. The first MTA public hearing was held 0:09:03.640 --> 0:09:07.280 last night on congestion pricing in Manhattan. There were comments 0:09:07.320 --> 0:09:10.400 four and against the move to toll drivers who travel 0:09:10.480 --> 0:09:14.400 below sixtieth Street. The hearing is not expected to change much, 0:09:14.480 --> 0:09:16.640 but it was a chance for voices to be heard. 0:09:17.080 --> 0:09:20.400 Many uber and lyft drivers are against the measure. This man, 0:09:20.440 --> 0:09:24.199 who identified himself as a TLC driver, says the MTA 0:09:24.320 --> 0:09:26.400 is a money pit, and he made sure the board 0:09:26.440 --> 0:09:28.160 knew he was in the no column. 0:09:28.440 --> 0:09:30.400 For each and every one of you. 0:09:31.080 --> 0:09:33.160 There is a special place in hell for you. 0:09:33.480 --> 0:09:34.560 Lucifer waits for you. 0:09:35.080 --> 0:09:36.000 He waits for you. 0:09:36.360 --> 0:09:39.480 Then he was escorted out. However, there were others for 0:09:39.600 --> 0:09:42.640 congestion pricing, like this woman who lost her husband and 0:09:42.679 --> 0:09:45.439 says an ambulance was delayed because of traffic. 0:09:45.920 --> 0:09:48.640 None of you want to be in a situation where 0:09:48.679 --> 0:09:51.360 you might have been saved but you died because there 0:09:51.400 --> 0:09:52.720 was too much traffic. 0:09:52.880 --> 0:09:56.840 Audio courtesy of ABC seven and picks eleven Federal agents 0:09:56.840 --> 0:09:59.360 search to properties owned by a top advisor to New 0:09:59.400 --> 0:10:02.679 York City may Eric Adams. The FBI carried out rage 0:10:02.720 --> 0:10:06.240 yesterday had two Bronx addresses, which records show are owned 0:10:06.280 --> 0:10:09.439 by Winnie Greco, a former fundraiser for Adams who now 0:10:09.480 --> 0:10:12.200 serves as his director of Asian Affairs. The purpose of 0:10:12.240 --> 0:10:15.599 the investigation not revealed. Global News twenty four hours a 0:10:15.640 --> 0:10:17.559 day and whenever you want it with Bloomberg News Now, 0:10:17.800 --> 0:10:19.040 Michael Barr, this is Bloomberg. 0:10:19.120 --> 0:10:19.360 Nathan. 0:10:19.360 --> 0:10:21.480 All right, Michael, thank you. 0:10:25.080 --> 0:10:27.240 Time now for the Bloomberg Sports Update, brought to you 0:10:27.280 --> 0:10:28.599 by tri State out are you. 0:10:28.679 --> 0:10:30.319 Good morning, John Stanshawer. 0:10:29.840 --> 0:10:32.000 Good morning, Nathan. Steph Curry has been coming into the 0:10:32.040 --> 0:10:33.320 garden for fifteen years. 0:10:33.400 --> 0:10:34.320 Every time he does. 0:10:34.240 --> 0:10:36.040 Knicks fans can't help but think back to that two 0:10:36.120 --> 0:10:38.880 thousand and nine draft. Nicks had the eighth pick we're 0:10:38.960 --> 0:10:42.120 hoping to take Curry. Golden State took him with the seventh. 0:10:42.120 --> 0:10:44.120 He's gone on to make the most three pointers ever 0:10:44.200 --> 0:10:48.240 win four championships. Curry had it going at MSG last night. 0:10:48.400 --> 0:10:50.839 Step step back, left point three over at show a 0:10:50.960 --> 0:10:55.800 perfecto fifty three forty four and Steph with his four 0:10:55.880 --> 0:10:58.400 to three of the game, He's got seventeen lead back 0:10:58.440 --> 0:11:01.240 to nine one oho seven ago. In the first step 0:11:01.679 --> 0:11:05.040 bounce pass, Draymond goes to Paul Offus great Steph catches 0:11:05.040 --> 0:11:09.360 shoot right wing three as God. This eighth of the game, He's. 0:11:09.200 --> 0:11:12.160 Got thirty one ninety five seven the fan. Curry and 0:11:12.240 --> 0:11:15.040 the Warriors never trailed. Beat the Knicks one ten ninety nine. 0:11:15.080 --> 0:11:17.240 Golden States now one ten to last twelve. The injury 0:11:17.280 --> 0:11:20.040 riddled Knicks have lost eight of the last eleven. At 0:11:20.040 --> 0:11:22.360 Barkley's rare easy win for the Nets, up eighteen in 0:11:22.400 --> 0:11:24.719 the first quarter, they beat Atlanta, won twenty four to 0:11:24.800 --> 0:11:28.360 ninety seven. Cam Johnson scored twenty nine. The Wizard's fiftieth loss, 0:11:28.400 --> 0:11:31.600 thirteenth in a row. Took the Lakers to overtime, fell short. 0:11:31.640 --> 0:11:35.160 Anthony Davis scored forty for La. Celtics will host Dallas tonight. 0:11:35.200 --> 0:11:37.920 Thirty five year old Jeff Peterson, who's been the Nets 0:11:37.960 --> 0:11:41.439 assistant GM named a head up basketball operations in Charlotte. 0:11:41.440 --> 0:11:43.680 The Islanders went to Detroit end of the red winging 0:11:43.720 --> 0:11:45.520 sixty game, winning Street five to three, two goals for 0:11:45.559 --> 0:11:47.800 brock Nelson. The Bruins blew a three nothing leads, still 0:11:47.800 --> 0:11:51.000 beat Vegas five to four. College hoops Rutgers by thirty 0:11:51.120 --> 0:11:54.240 over Michigan. In Iowa, Caitlyn Clark announced she's going pro 0:11:54.320 --> 0:11:55.160 when the season ends. 0:11:55.160 --> 0:11:56.040 Hardly a surprise. 0:11:56.120 --> 0:11:58.359 She's played four years did have a year of eligibility 0:11:58.400 --> 0:12:01.040 left due to COVID. Clark already the leading score in 0:12:01.160 --> 0:12:03.720 NCAA and all of women's basketball history, and about to 0:12:03.720 --> 0:12:06.480 go past Pete Maravich and have the most points men 0:12:06.600 --> 0:12:09.719 or women. She'll almost certainly be taken first overall by 0:12:09.720 --> 0:12:13.080 Indiana in the WNBA draft. Yankees and Marlins played an 0:12:13.120 --> 0:12:14.680 exhibition game in Tampa. 0:12:15.080 --> 0:12:18.320 The game ended scoreless. Josh stashie that we're Bloomberg's sport, Nathan, 0:12:18.520 --> 0:12:20.600 Thank you, John. Now let's get right back to this market. 0:12:20.640 --> 0:12:23.000 Closing out the week entering a new trading month at 0:12:23.000 --> 0:12:25.559 the S and P five hundred and Nasdaq one hundred, 0:12:25.600 --> 0:12:28.720 both at all time high. So what should we be 0:12:28.800 --> 0:12:31.400 waiting as we round out the quarter. Let's bring in 0:12:31.520 --> 0:12:35.600 Daniel Morris, chief market strategists at BNP Pariba. Daniel, thanks 0:12:35.640 --> 0:12:38.240 for being with us. Does this market look toppy to you? 0:12:38.320 --> 0:12:39.600 Does the rally have more to go? 0:12:40.040 --> 0:12:42.319 Where do you see the momentum? 0:12:42.720 --> 0:12:45.640 Well, certainly one thing you would be looking at if 0:12:45.640 --> 0:12:48.680 you're trying to make that assessment and valuations given the 0:12:48.760 --> 0:12:51.640 run that we've had. But I think thecouraging news is 0:12:51.679 --> 0:12:55.200 that certain evaluations are higher than average. But given an 0:12:55.200 --> 0:12:58.400 earnings growth that we've seen, given the strength of US 0:12:58.440 --> 0:13:02.000 economic growth that we've had, seems perfectly reasonable and certainly 0:13:02.000 --> 0:13:04.520 compared to other parts of the world. You know, we 0:13:04.720 --> 0:13:07.280 Europe is struggling, in Japan was in recession in the 0:13:07.360 --> 0:13:10.680 last quarter. The latest Chinese data was disappointing, so you 0:13:10.760 --> 0:13:13.440 kind of running out of growth areas and so you 0:13:13.520 --> 0:13:15.559 turn into the US and that's reflected in the market. 0:13:16.000 --> 0:13:19.120 Now those valuations looking good to you across the market? 0:13:19.200 --> 0:13:22.280 Or is it just in those AI stocks that we 0:13:22.600 --> 0:13:24.439 focus so much on these days. 0:13:25.360 --> 0:13:28.800 Well it's not the only Perhaps the interesting comparison is 0:13:28.840 --> 0:13:32.040 if you take say NAOSAQ one hundred and then look 0:13:32.040 --> 0:13:35.199 at multiples relative to history for the NASAC and then 0:13:35.240 --> 0:13:37.280 do the same thing, say for the wrestle one thousand 0:13:37.400 --> 0:13:39.440 value is kind of the other part of the market, 0:13:39.440 --> 0:13:42.240 if you will, And they're both at about the same 0:13:42.360 --> 0:13:46.120 relative valuations, meaning they're both a bit about average, not terrible. 0:13:46.679 --> 0:13:48.839 And that's actually a big change from the garment we've 0:13:48.840 --> 0:13:50.920 had in previous years, where when you would say the 0:13:51.040 --> 0:13:53.760 SMP was expensive, you were really saying that tech stocks 0:13:53.800 --> 0:13:56.880 were expensive and everything else perhaps was cheap. So that's 0:13:56.880 --> 0:14:00.000 not the case anymore. Everything is going to equally up 0:14:00.080 --> 0:14:03.160 of average. But again that goes back as a reflection 0:14:03.280 --> 0:14:04.840 of the growth and the earnings potential. 0:14:04.880 --> 0:14:05.319 We think, we. 0:14:05.320 --> 0:14:07.720 See, what did you make of the reaction that we 0:14:07.760 --> 0:14:11.720 saw after the core PC deflator The feds preferred inflation 0:14:11.880 --> 0:14:16.040 gauge came in hotter, but right in line with estimates. 0:14:16.679 --> 0:14:20.240 We're starting to hear more Fed officials saying that maybe 0:14:20.280 --> 0:14:22.680 we can start thinking about rate cuts even with this 0:14:22.720 --> 0:14:24.400 little bump in inflation. 0:14:26.280 --> 0:14:29.200 Maybe mature to go quite that far. I mean, certainly 0:14:29.200 --> 0:14:31.840 we had the chance to adjust our expectations after the 0:14:31.880 --> 0:14:34.600 CPI data, so it really should not have been another surprise, 0:14:34.680 --> 0:14:37.680 given it's just another slice at the same underlying dynamic. 0:14:38.800 --> 0:14:40.960 It is going to be and you hate to say this, 0:14:41.080 --> 0:14:43.520 but a wait and see whether or not next month's 0:14:43.560 --> 0:14:46.880 data confirms the trend, because you know, we saw it 0:14:47.040 --> 0:14:51.080 wasn't just housing in both the PC and the CPI data, 0:14:51.160 --> 0:14:53.520 you know, there was services pressure. So we need to 0:14:53.520 --> 0:14:56.800 see if that persists. And to make you a little 0:14:56.800 --> 0:14:59.360 bit more cautious about whether it mine or might not, 0:14:59.520 --> 0:15:01.120 you look at the data that we got out of 0:15:01.160 --> 0:15:05.560 Europe recently showed a similar surprise, particularly on the services side. 0:15:05.600 --> 0:15:09.560 So this an area where inflation re accelerates simply because 0:15:09.560 --> 0:15:12.000 growth is or strong, you know, certainly not something we 0:15:12.240 --> 0:15:13.120 exclude entirely. 0:15:13.480 --> 0:15:16.400 So are you thinking that cautions in order as we 0:15:16.440 --> 0:15:19.120 get ready for the next rate on jobs next week? 0:15:20.640 --> 0:15:22.880 Well, I think you would anticipate the job stay. That's 0:15:22.920 --> 0:15:24.880 going to be fine. I mean, labor marketing in general 0:15:24.960 --> 0:15:27.640 is like an indicator we have. GDP for the fourth 0:15:27.720 --> 0:15:31.120 quarter was strong. GDP now forecasts around three percent for 0:15:31.320 --> 0:15:34.480 the first quarter. I mean just really, these just amazingly 0:15:34.520 --> 0:15:37.080 strong numbers given how high policy rates are. So that's 0:15:37.080 --> 0:15:39.040 all going to be fine. And I think the reason 0:15:39.120 --> 0:15:42.680 that you've seen this, you know, rather you know, I 0:15:42.720 --> 0:15:45.800 guess the noign positive reaction in equity markets because a 0:15:45.800 --> 0:15:48.120 bit more growth, a bit more inflation, that's certainly not 0:15:48.240 --> 0:15:50.440 much of will worry as far as equitieselt concerned. 0:15:50.960 --> 0:15:53.360 So what's going to come into play in March for you? 0:15:53.440 --> 0:15:54.880 What catalysts are you looking at? 0:15:55.120 --> 0:15:57.840 Well, you know you're looking it's the same two risks 0:15:57.880 --> 0:16:00.200 to growth and in inflation. So you know, do we 0:16:00.240 --> 0:16:03.000 start to see a deceleration and growth? Certainly not yet, 0:16:03.040 --> 0:16:05.160 but at some point you know, it has to happen, 0:16:05.200 --> 0:16:08.000 if you will. And then on the inflation front, you know, 0:16:08.120 --> 0:16:11.280 a bit high, a bitsteady, not decelerating so much. That's 0:16:11.320 --> 0:16:14.080 probably not as big a concern. If you really did 0:16:14.120 --> 0:16:17.200 see that, that reacceleration and inflation, you're going to start 0:16:17.200 --> 0:16:19.400 to question even the three cuts that that has put 0:16:19.440 --> 0:16:19.840 out there. 0:16:24.640 --> 0:16:27.560 This is Bloomberg day Break Today, your morning brief on 0:16:27.640 --> 0:16:31.280 the stories making news from Wall Street to Washington and beyond. 0:16:31.440 --> 0:16:34.200 Look for us on your podcast feed at six am 0:16:34.280 --> 0:16:37.960 Eastern each morning on Apple, Spotify, and anywhere else you 0:16:38.000 --> 0:16:39.200 get your podcasts. 0:16:39.320 --> 0:16:42.000 You can also listen live each morning starting at five 0:16:42.040 --> 0:16:44.640 am Wall Street time on Bloomberg eleven three to zero 0:16:44.680 --> 0:16:47.520 in New York. Bloomberg ninety nine to one in Washington, 0:16:47.640 --> 0:16:50.840 Bloomberg one oh six' one in Boston, and Bloomberg ninety 0:16:50.880 --> 0:16:52.280 sixty in San Francisco. 0:16:52.640 --> 0:16:55.800 Our flagship New York station is also available on your 0:16:55.840 --> 0:17:01.280 Amazon Alexa devices. Just say Alexa Play Bloomberg seven thirty plus. 0:17:01.320 --> 0:17:04.320 Listen coast to coast on the Bloomberg Business app, serious 0:17:04.480 --> 0:17:07.960 Xmbiheartradio app, and on Bloomberg dot Com. 0:17:07.960 --> 0:17:09.040 I'm Nathan Hager and. 0:17:09.040 --> 0:17:10.080 I'm Karen Moscow. 0:17:10.280 --> 0:17:13.040 Join us again tomorrow morning for all the news you 0:17:13.160 --> 0:17:16.359 need to start your day right here on Bloomberg Daybreak