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 with policy. In Washington, congressional leaders have unveiled a plan to fund parts of the federal government through the end of September. Bloomberg's Ed Baxter has the story.
It's four hundred and thirty six billion dollars and covers about a quarter of the overall government spending. It represents the first real progress toward resolving ideological clashes, but at the same time does not address the sharply partisan issues that keep pushing last minute shut down anxiety. It does not address Pentagon spending, for example. It does include, though, a provision to prevent oil sales from the US Strategic Petroleum Reserve to China. Ed Baxter, Bloomberg Radio, All.
Right, Ed, thank you, Ale. Turning to the presidential race. Nikki Haley just won her first Republican primary. It's in the district of Columbia, where, with one hundred percent of the votes counted, Hailey took sixty two point eight percent to former President Trump's thirty three point three percent. Before the win Hailey hinted she might stay in the race all the way to the Republican National Convention in July.
If the people want to see me go forward, they'll show it.
They'll show it in their votes, they'll show it in their donations, They'll show it in the fact that they want us to continue to go forward.
And Nikki Haley spoke on NBC's Meet the Press her in Sundays on Bloomberg Radio. Her win in the DC primary gives her nineteen convention delegates, bringing her total to forty three. Former President Trump has racked up two hundred and forty four delegates so far. He's likely to pick up many more when fifteen states vote tomorrow and Super Tuesday.
I mean, while Karen, former President Trump could learn today whether the Supreme Court lets him appear on the Colorado ballot. The justices are expected to decide at least one case today. Signs are pointing to resolution of the Colorado case. The threatened to kick Trump off some state ballots because of his efforts to over return his twenty twenty election loss.
Trump is challenging a Colorado Supreme Court decision that he has disqualified from being president again and ineligible for the state's primary tomorrow.
Well.
Turning to the Middle East, now, Nathan calls for a ceasefire between Israel and Hamas are growing louder. Vice President Kamala Harris is now calling for a pause in the fighting in Gaza.
Let's get a ceasefire, let's reunite the hostages with their families, and let's provide immediate relief to the people of Gaza.
Vice President Harris spoke in Selma, Alabama, a day after US officials said Israel had essentially agreed to a six week ceasefire if Amas hands over vulnerable hostages. Meanwhile, a new Gallup poll shows Americans are less favorable of both Israel and the Palestinian authority since the Gaza war began. Fifty eight percent say they have a positive view of Israel.
That's down ten percentage point since last year. Favorable views of the Palestinian authority have dropped from eighteen to eight percent.
Now, let's look toward outer space. Karen SpaceX has successfully launched another Falcon nine spacecraft from NASA's Kennedy Space Center in Florida. The one cosmonaut and three astronauts on border headed to the International Space Station, American astrobiologist and former NASA employee Keith Cowing says, for SpaceX, incredible feats like this are becoming routine.
They're always exciting, but I'll be honest with you, these SpaceX things are starting to get a little boring, which is a good thing, because we're at least now going from being scared every time we launched the crew. Just something that's approaching, maybe not routine, but acceptable, and that's again, that's a good thing.
American astrobiologist Keith Cowing says after last night's launched, the spacecraft is expected to dock autonomously to the space station at about three am Eastern time tomorrow morning.
Well, Nathan, turning to the markets. Now, for the first time, Japan's and EK two twenty five stock average are past forty thousand. Investors around the world have been piling into Japan's biggest companies on moving shareholder returns, the weaker yen and booming corporate profits.
And back on Wall Street Care and another firm is lifting its price target for US stocks. We get that story from Bloomberg's Jeff Bellinger. Bank of Americas Savita Subramanian now expects the S and P five hundred to end the year at fifty four hundred. That is up from her earlier target to five thousand and indicates about a five percent gain from Friday's close. She says indicators are flashing bullish signals on stronger earnings growth ahead and surprising
profit margin resilience. Ba A's fifty four hundred price target now ranks as one of the most bullish on Wall Street. Subramanian joins the ranks of Ed yard Denny of Yard Denny Research and Jonathan Gollub of UBS, who both hold the same year end outlook. Jeff Bellinger, Bloomberg Radio.
All right, Jeff. Thanks. While stocks begin the week at record levels, Bitcoin is edging up near its all time hi. The cryptocurrency is trading above sixty five thousand. Traders are betting on price to soon cross the record of almost sixty nine thousand dollars reached during the COVID pandemic in November twenty twenty one. Bitcoin has jumped about one hundred and eighty six percent in the last twelve months, and
right now is at sixty five one hundred dollars. We turn to the economy now and interest rates will be in focus this week. FED Chair j Powell is delivering congressional testimony this week. We get the latest with the Bloomberg's John Tucker, John and Karen.
Powell's expected to double down on his message that there's no rush to cut interest rates. He delivers his semi annual monetary policy testimony to a House committee Wednesday and then a Senate panel on Thursday. Powell and nearly all his colleagues have said in recent weeks that they can afford to be patient in deciding when to cut rates, given that the underlying strength in the US economy. That cautious approach has been validated in recent weeks by data
showing inflation picked up last month. On Democrats in Congress likely to press the FED chief on why officials are keeping borrowing costs so high on the path of rates good effect the November election. John Tucker, Bloomberg Radio.
Okay, John, thank you. In company news, we're watching shares of Macy's this morning. They're up nearly fourteen percent in early trading. Investors are boosting their takeover bid for the retailer. That story from Bloomberg's Doug Prisner.
Back in January, arc House Management and Brigade Capital offered five point eight billion dollars for Macy's, but the retailer rejected the bid, saying it lacked compelling value. Well now, ourk House and Brigade have boosted their offer by fourteen percent. It's worth six point six billion per share twenty four dollars.
The latest bid is a thirty three percent premium to Macy's closing price on Friday, and the investor group also disclosed equity partners in the proposed transaction Fortress Investment Group and One Investment Management US in New York. I'm Doug Prisoner, Bloomberg.
Radio, all right, Doug, thanks well. In Asia, Chinese Premier Leak Chong will break tradition at the end of the National People's Congress, and Bloomberg and Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Premierly will not hold a news briefing, killing a long standing tradition. This will surely fan fears of a lack of openness by the Chinese leadership. It will be seen as diminishing access to information. In addition, a spokesperson said this will continue for the remainder of this term of the NBC. China will set a growth target for this year and what's likely to be a slight increase in deficit spending. But the thing is we may not hear
much about the reasoning behind it. In Hong Kong, Brian Curtis, Bloomberg Radio.
All right, Brian, thank you, and it's time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr.
Michael, good morning, Good morning, Karen. Congestion pricing is set up in London now. The final set of MTA hearings about congestion pricing in Manhattan takes place today. The two final hearings are schedule for ten am and six pm at the MTA headquarters. New York. Carrier residents will have another chance to share their thoughts on congestion pricing. South of sixtieth Street. Most drivers and cars would pay a
fee of at least fifteen dollars. That's on top of paying the tolls to drive through the Lincoln or Holland Tunnel's. The plan is slated to begin in mid June. US military plane started dropping food aid into Gaza over the weekend. Former Marine fighter pilot Colonel Steve Ganyard explains the Air Force regularly makes air drops to resupply US Army units in the field.
Part of the Air Force crew's mission is being able to air drop supplies. So in this case it's not US forces. Obviously they're close to the ground, and so you need a permissive environment where people aren't shooting at you. Presumably none of of a moss would be shooting at the US while they were trying to deliver this aid.
Former pilot Steve Ganyard spoke to ABC. Authorities avoided a night time curfew in an attempt to regain control of Haiti streets after an explosion of violence during the weekend, including gunmen from gangs overrunning the centry's two biggest prisons and freeing their inmates. Democratic Senator Chris Murphy, one of the bipartisan senators who negotiated a border security deal that fell through after it failed to garner enough Republican support in the House, now urges Democrats to go on the
offensive on immigration. Senator Murphy of Connecticut says he knows the reason. He believes Republicans chose to back out of the deal.
Republicans blocked the bill because they knew only the legislation would be effective in controlling the border. They want the border to be out of control because it helps him politically, and they know the president has limits to what he can do through executive order.
Senator Murphy spoke on ABC's This Week Heard Sundays on Bloomberg. An unlucky family in Sullivan County, New York, had a dangerous moment just hours after they moved into a house. A home in Monticello is now condemned after the home exploded. Firefighters and police officers responded to the blast on Emily Street over the weekend. The family had just finished unpacking two U haul trucks and was heading for bed when suddenly the blast occurred.
It's laying down and all of a sudden, the whole house went boom and shook and.
Ran out the door, spreadble.
We couldn't go. One person is hospitalized with burns. Eight others managed to get out of the house uninjured. The cause of the explosion believed to have stemmed from a gas leak in the basement. Global News twenty four hours a day and whenever you want it. With Bloomberg News Now, I'm Michael Barrd. This is Bloomberg Naither.
Okay, Michael, thank you time now for the Bloomberg Sports Update. Bron to you by tri stayed Out. Are you good morning, John stash Out.
Good morning, Nathan and Nixon. Cleveland still without three injured starters, and then in the first minute, Jalen Brunson hurt his knee. They had to play without him, still beat the Calves one oh seven ninety eight twenty of Nick Hero's Josh Hart played forty five minutes at a triple double that included nineteen rebounds. Duce McBrien came in for Brunson, never left. He played forty seven minutes twenty eight points for Dante DiVincenzo.
Just needed win for the next who had lost seven of their previous nine, and the news on Brunson's knee injury is encouraging a.
Contusion X rays. We're negative in Boston.
The celtics eleventh win in a row was their third win of the season by fifty or more points.
That's an NBA record.
The Celtics over Golden State one forty to eighty eight This game was eighty two to thirty eight at halftime Kyler, Jops, Seaton Hall or Older. The season had that upset of Yukon. The Husky's got revenge beat the Pirates by thirty and that clinches the Big East regular season title for.
Uth Khon and Iowa.
Last home game for Kitlin Clark yet another milestone, more points than Pete Merrivitch, so most points scored male or female.
It's like hard for me to wrap my head around everything that's going on. I think I'm just trying to soak in the moment. A record is a record. I don't want that to be the reason people remember me. I hope people remember me for the way I played with a smile on my face, my competitive fire. Sure they can remember the wins, but also just like the fun me and my team and they's tied together.
And a big win for Clark and Iowa over second ranked Ohio State, top ranked South Carolina b Tennessee to complete a second consecutive twenty nine to zero regular season and Tampa Yankees may have lost with the Tigers seven to two, but a Juan Soto home run first in which gave him three homers in his first seven exhibition
season at bats, also in Florida. They couldn't finish the cognizant golf will do so today, twenty five year old American and Austin ekrot as a one shot John Stash Allen Bloomberg Sports.
Maybe all right, John, thank you know. Let's get right back to this market, starting a trading week at yet new all time highs for the S and P five hundred and the Nasdak. Even Japan's niek has crossed forty thousand for the first time ever. That's as we wait for more clues on the raid path from fedcher Jerome Powell.
This week, let's bring in Jeff for you for some market analysis, a senior EMEA market strategist at BNY Mellon, Jeff, it seems like Wall Street analysts are sort of falling all over themselves raising their price targets for the S and P five hundred. Now we got Savita Supermanian at Bank of America raising the fifty four hundred. Is there too much euphoria in this market? Is it well placed?
Well?
Good morning. I think it's often the case, no matter you know what benchmark you use. Once expectations are raised and raised and raised, becomes harder to hit them, right, So I think people will be querying that in the US, whereby, if we look at other markets right now, expectations are relatively muted right now, so perhaps it's a bit easier to hit those expectations and surpass them. So I think for US assets in general to helperform up ahead may just be a bit trickier this month.
Interesting, So does that have you thinking that investors should be taking a little bit more of a look at markets outside the US as we get into the balance of the year.
One hundred percent, right, so you know two or three things.
Yeah.
Firstly, let's look at emerging markets. This is one area where we're expected a new wave of vasa allocation flow this year, especially in bonds and to a lesser extent, equities APAC. For example, if China and Japan there's both potential for reflation, then earnings should continue to surprise the upside as well. And in Japan even I'm not just talking about the FX translation side of things, Latin America still offers you very very good at real rates, even
relative to the US. So there are other opportunities I'm out there. I just think the market, well, the US is outperforming, that exceptionalism narrative is fully in place, maybe even relative to high expectations. Ass allocations may just be a bit too overweight right now.
Now when it comes to the US market, what are some of the headwinds, the major headwinds that are informing your view.
Well, in addition to rhina equity, in addition to equity expectations and being raised. I'm looking at our custodial data right now and flows into bond markets. And one interesting theme that we've established over the past month is if in November and December it was about getting out of frontend due to expectations of rate cuts and moving into uration,
right now we are seeing flows across the curve. So it's actually mattering even less to clients with regard to their bond exposures whatever part of the curve, and they're looking at they just want to own dollars at full stop, not saying that this is a risky prospect near right now, Again, the US is outperforming without excessive inflation. But again, you know, this is where even if I look at equity and
performance allocations may just be a bit too extreme. Brino It's almost as no infrast rate risk is being priced in, and that looks a bit excessive considering what's going to happen this year with respect to the economy.
I wonder what you made of tourist and slocks call over to Paula management last week that the FED might not be able to cut rates at all this year.
We will still take the other side of that. Inflation will continue to soften if you look at some of the core items I think that trenders in place. Central banks right now they need to retain optionality. They will not state they will not pre commit to cut, but they'll absolutely not pre commit to say there won't be
any cuts either this year. They will be data dependent, and right now we think data will continue to justify easing, this easing in Q two, So we will absolutely take the other side of fact.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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