Bloomberg Audio Studios, Podcasts, Radio News.

Good morning, I'm Nathan Hager and I'm Karen Moscow.

Here are the stories we're following today.

We begin in Washington, where Congress has kept the lights on again.

I'm happy to inform the American people there will be no government shutdown on Friday.

Senate Majority Leader Chuck Schumer is celebrating after the Senate passed a temporary spending bill last night that keeps some parts of the government open until March eighth and the rest through March twenty second.

Bloomberg's Eric Wasson has more details from Washington.

Behind the scenes, there's also sort of an agreement on a six bill package full year funding for about twenty seven percent of agency spending.

We're exciting to see that release sometime this weekend, probably on Sunday.

Bloomberg's Eric Wasson reports Republicans in the House have been told not to expect many victories when those tales come out.

The temporary spending bill is now headed to the White House, where President Biden plans to sign it well.

Nathan, turning to presidential politics, the border is quickly replacing the economy is the most important issues for American voters, and Bloomberg's Ed Baxter reports the front runners are paying attention.

Both President Joe Biden and Donald Trump visiting the border two different locations and both blaming each other.

Trump at Eagles Pass, people.

From places unknown, from countries unknown, who don't speak languages.

We have languages coming into a country.

We have nobody that even speaks those languages.

They truly foreign languages.

Nobody speaks them.

Biden at Brownsville, folks, So my first day is president I introduced to Bill, I sent to Congress a comprehensive plan to fix the broken immigration system and to secure the border, but no action was taken.

Trump calling it a Biden invasion, Biden saying the Congress and Republicans must act.

Ed Baxter Bloomberg Radio, All right, Ed, thank you.

Now, he turned to the markets where stock begin the new month.

That record highs.

We get more from Bloomberg's John Tucker, John and Nathan.

The S and P five hundredth, the NASDAK, and the NASDAK one hundred all ended Thursday session at records.

In fact, the S and P five hundred so it's fourteenth record this year.

The NASDAQ one hundred climbed almost one percent, with Nvidia leading gains and megacaps.

Investor is also encouraged that the latest inflation data was not as hot as some expected.

At Lauren San Philippo at Merrill and Bank of America Private Bank thinks stocks can move higher from here.

There's a lot of things to look forward to.

Right we have this said pivot that's being priced in.

Growth is certainly surprising to the upside the Sate Atlanta tracker for GDP for this quarter three point two percent, So again surprises city upside will certainly matter, and I think kerry the market through this year.

A signed from economic data.

The four hundred and eighty nine companies of the S and P five hundred that have reported earning so far this season, seventy six percent have delivered positive earning surprises.

A year to date, the SCID five and the NASDEK are up around seven percent.

John Tucker, Bloomberg Radio.

All right, John, thanks so one stock participating in the rally as Dell shares surging twenty two percent.

The computer hardware company reported fourth quarter results that beat expectations.

Analysts say demand for artificial intelligence servers is driving momentum well On.

The flip side, Karen Shares of New York Community Bank Corpor Down more than twenty seven percent.

The commercial real estate lender took a two point four billion dollar hit to earnings as it identified weaknesses with its loan review process, details from Bloomberg's Charlie Pellett.

The bank also said it needs more time to file its annual report to regulators as it shores up its internal controls.

In a separate filing, NYCB said quote management identified material weaknesses in the company's internal controls related to internal loan review resulting from ineffective oversight, risk management, unmonitoring activities.

The announcement re so drama that erupted at the end of January when the bank slashed its dividend and stockpiled cash to cover troubled loans in New York.

Charlie Pellet, Bloomberg Radio and Charlie.

The bank's also changing bosses.

Alessandro Dinelli will become chief executive Officer, effective immediately, succeeding Thomas Kangemme Well Nathan.

While equities overall sit at record highs, it's also been quite a run for bitcoin.

The cryptocurrency is more than forty two percent this year.

Demand for the token from new US exchange traded funds is helping fuel the rally, which saw bitcoin surged over sixty three thousand dollars earlier this week, but Michael nova Grants, the CEO of Galaxy Digital Holdings, expects a pullback in the near term.

I would say we've got the very frothy frothy levels, and so I wouldn't be surprised to see some correction in some consolidation.

But I'm very loath to pick a Bitcoin high because.

I really do believe this is price discovery.

And Galaxy did you, CEO Michael Novagrad, says bitcoin could pull back to the mid fifty thousand level before rallying to new highs.

Looking at Bitcoin right now, it's at about sixty two one hundred dollars.

Turning to the economy, Karen, Despite the Fed's preferred measure of inflation rising at its fastest pace in nearly a year, more central bankers are talking about rate cuts.

San Francisco FED president Mary Daily says policymakers are ready to take action.

We want to avoid holding on all the way to two percent.

They're putting policy very tight and then cause an unnecessary downturn.

We are agile, and we're sitting in what I call the ready position.

We are ready to make moves and adjust as the data demand us to do.

And I think right now the economy and policy are in a good place to do that.

San Francisco Fed chief Mary Daily added she's looking for quote a collage of evidence that inflation is moving sustainably lower.

Daily spoke with David Weston on Bloomberg Wall Street.

We catch the full conversation today at six pm Wall Street time on Bloomberg Radio and television.

Than over in Europe, big changes are coming at the Swiss National Bank.

Thomas Jordan is leaving the SMB later this year after more than a decade as president.

It ends an era where his institution was at the heart of currency and banking turmoil that rippled around the world.

Jordan is one of Switzerland's best known a most influential public officials.

He steered the economy through the Euro Area dead crisis, remove the cap on the frank and twenty fifteen, and adopted the world's lowest interest rate.

Moving to Asia, Karen manufacturing activity in China slumped in February as factories wrestled with weak demand.

Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.

China's factory activity shrank for a fifth month, the official PMI coming in at forty nine point one, slightly better than expected but still in contraction that Taishin PMI came in stronger at fifty point nine.

Surveys elsewhere in Asia showed manufacturers cutting output and new orders last month as due to subdued customer spending in both domestic and internet national markets.

Taiwan's PMI edging down to forty eight point six, Japan's at forty seven point two in al Kong.

Brian Curtis, Bloomberg.

Radio, All right, Brian, thanks so, Bloomberg News has learned the World Trade Organization has made progress toward agreements on measures to broaden global trade.

Sources say a final deal on agriculture subsidies, over fishing and tariff free e commerce are hinging on the willingness of major economies to make last minute concessions.

So now to take a look at some of the other stories making news in New York and around the world, and for that we are joined by Bloomberg's Michael Barr.

Good morning, Michael.

Good morning, Nathan.

There are conflicting reports about yesterday's events leading up to the depths of more than one hundred Palestinians, according to health officials in northern Gaza, witnesses say Israeli soldiers guarding an AID convoy in Gaza City opened fire on Palestinians racing to pull food off the trucks.

Israel says many of the victims were run over by the trucks and that troops only opened fire when they felt endangered by the crowd.

IDF spokesman Peter Lerner.

A large amount of people were going on the trucks and looting them and trampling and crushing one another, and indeed many of the people that were injured or wounded or even killed were as a result of the truck movement.

At a Pentagon briefing press Secretary Air Force Major General Pat Riders, the Defensive Department has repeatedly stressed to Israel the need to minimize civilian casualties.

We're going to continue to work with partners in the region to try to ensure that humanitarian assistants can be delivered while at the same time communicating with our Israeli partners the importance of taking civilian safety into account.

Major General Writers says the White House is asking for an investigation.

Relatives and supporters of Alexi Navolni are bidding farewell to the Russian opposition leader.

Today, a funeral is in southeastern Moscow after his still unexplained death in an Arctic peace colony.

The first MTA public hearing was held last night on congestion pricing in Manhattan.

There were comments four and against the move to toll drivers who travel below sixtieth Street.

The hearing is not expected to change much, but it was a chance for voices to be heard.

Many uber and lyft drivers are against the measure.

This man, who identified himself as a TLC driver, says the MTA is a money pit, and he made sure the board knew he was in the no column.

For each and every one of you.

There is a special place in hell for you.

Lucifer waits for you.

He waits for you.

Then he was escorted out.

However, there were others for congestion pricing, like this woman who lost her husband and says an ambulance was delayed because of traffic.

None of you want to be in a situation where you might have been saved but you died because there was too much traffic.

Audio courtesy of ABC seven and picks eleven Federal agents search to properties owned by a top advisor to New York City may Eric Adams.

The FBI carried out rage yesterday had two Bronx addresses, which records show are owned by Winnie Greco, a former fundraiser for Adams who now serves as his director of Asian Affairs.

The purpose of the investigation not revealed.

Global News twenty four hours a day and whenever you want it with Bloomberg News Now, Michael Barr, this is Bloomberg.

Nathan.

All right, Michael, thank you.

Time now for the Bloomberg Sports Update, brought to you by tri State out are you.

Good morning, John Stanshawer.

Good morning, Nathan.

Steph Curry has been coming into the garden for fifteen years.

Every time he does.

Knicks fans can't help but think back to that two thousand and nine draft.

Nicks had the eighth pick we're hoping to take Curry.

Golden State took him with the seventh.

He's gone on to make the most three pointers ever win four championships.

Curry had it going at MSG last night.

Step step back, left point three over at show a perfecto fifty three forty four and Steph with his four to three of the game, He's got seventeen lead back to nine one oho seven ago.

In the first step bounce pass, Draymond goes to Paul Offus great Steph catches shoot right wing three as God.

This eighth of the game, He's.

Got thirty one ninety five seven the fan.

Curry and the Warriors never trailed.

Beat the Knicks one ten ninety nine.

Golden States now one ten to last twelve.

The injury riddled Knicks have lost eight of the last eleven.

At Barkley's rare easy win for the Nets, up eighteen in the first quarter, they beat Atlanta, won twenty four to ninety seven.

Cam Johnson scored twenty nine.

The Wizard's fiftieth loss, thirteenth in a row.

Took the Lakers to overtime, fell short.

Anthony Davis scored forty for La.

Celtics will host Dallas tonight.

Thirty five year old Jeff Peterson, who's been the Nets assistant GM named a head up basketball operations in Charlotte.

The Islanders went to Detroit end of the red winging sixty game, winning Street five to three, two goals for brock Nelson.

The Bruins blew a three nothing leads, still beat Vegas five to four.

College hoops Rutgers by thirty over Michigan.

In Iowa, Caitlyn Clark announced she's going pro when the season ends.

Hardly a surprise.

She's played four years did have a year of eligibility left due to COVID.

Clark already the leading score in NCAA and all of women's basketball history, and about to go past Pete Maravich and have the most points men or women.

She'll almost certainly be taken first overall by Indiana in the WNBA draft.

Yankees and Marlins played an exhibition game in Tampa.

The game ended scoreless.

Josh stashie that we're Bloomberg's sport, Nathan, Thank you, John.

Now let's get right back to this market.

Closing out the week entering a new trading month at the S and P five hundred and Nasdaq one hundred, both at all time high.

So what should we be waiting as we round out the quarter.

Let's bring in Daniel Morris, chief market strategists at BNP Pariba.

Daniel, thanks for being with us.

Does this market look toppy to you?

Does the rally have more to go?

Where do you see the momentum?

Well, certainly one thing you would be looking at if you're trying to make that assessment and valuations given the run that we've had.

But I think thecouraging news is that certain evaluations are higher than average.

But given an earnings growth that we've seen, given the strength of US economic growth that we've had, seems perfectly reasonable and certainly compared to other parts of the world.

You know, we Europe is struggling, in Japan was in recession in the last quarter.

The latest Chinese data was disappointing, so you kind of running out of growth areas and so you turn into the US and that's reflected in the market.

Now those valuations looking good to you across the market?

Or is it just in those AI stocks that we focus so much on these days.

Well it's not the only Perhaps the interesting comparison is if you take say NAOSAQ one hundred and then look at multiples relative to history for the NASAC and then do the same thing, say for the wrestle one thousand value is kind of the other part of the market, if you will, And they're both at about the same relative valuations, meaning they're both a bit about average, not terrible.

And that's actually a big change from the garment we've had in previous years, where when you would say the SMP was expensive, you were really saying that tech stocks were expensive and everything else perhaps was cheap.

So that's not the case anymore.

Everything is going to equally up of average.

But again that goes back as a reflection of the growth and the earnings potential.

We think, we.

See, what did you make of the reaction that we saw after the core PC deflator The feds preferred inflation gauge came in hotter, but right in line with estimates.

We're starting to hear more Fed officials saying that maybe we can start thinking about rate cuts even with this little bump in inflation.

Maybe mature to go quite that far.

I mean, certainly we had the chance to adjust our expectations after the CPI data, so it really should not have been another surprise, given it's just another slice at the same underlying dynamic.

It is going to be and you hate to say this, but a wait and see whether or not next month's data confirms the trend, because you know, we saw it wasn't just housing in both the PC and the CPI data, you know, there was services pressure.

So we need to see if that persists.

And to make you a little bit more cautious about whether it mine or might not, you look at the data that we got out of Europe recently showed a similar surprise, particularly on the services side.

So this an area where inflation re accelerates simply because growth is or strong, you know, certainly not something we exclude entirely.

So are you thinking that cautions in order as we get ready for the next rate on jobs next week?

Well, I think you would anticipate the job stay.

That's going to be fine.

I mean, labor marketing in general is like an indicator we have.

GDP for the fourth quarter was strong.

GDP now forecasts around three percent for the first quarter.

I mean just really, these just amazingly strong numbers given how high policy rates are.

So that's all going to be fine.

And I think the reason that you've seen this, you know, rather you know, I guess the noign positive reaction in equity markets because a bit more growth, a bit more inflation, that's certainly not much of will worry as far as equitieselt concerned.

So what's going to come into play in March for you?

What catalysts are you looking at?

Well, you know you're looking it's the same two risks to growth and in inflation.

So you know, do we start to see a deceleration and growth?

Certainly not yet, but at some point you know, it has to happen, if you will.

And then on the inflation front, you know, a bit high, a bitsteady, not decelerating so much.

That's probably not as big a concern.

If you really did see that, that reacceleration and inflation, you're going to start to question even the three cuts that that has put out there.

This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

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I'm Nathan Hager and.

I'm Karen Moscow.

Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak