Traders were also encouraged by new Inflation Data forjanuary that showed the smallest increase in goods and Services Prices for three years. That has added to bets that the Federal Reserve is on track to start cutting Interest Rates injune. Our north America Business correspondent Erin Delmore Reports from new york. All three of the major us Stock Indexes closed out february with a bang. The Tech Heavy Nasdaq Hit an all time high and it is the first time we have been able to say that since november 2021. Another new high for the s p 500. Both indexers enjoyed their best february high for the s p 500. Both indexers enjoyed their best february since 2015. The Dowjones Industrial Average for its part was up as well. That makes february the fourth straight month in the green for wall street and the Leap Day Boost was helped by some new Inflation Data. Well, the market today is reacting to a favourable continuation of inflation coming down in a trend towards the Federal Reserve � s target. Towards the Federal Reserve s taruet. ,. , ,. Towards the Federal Reserve s taruet. ,. ,. , target. Investors expect that to continue and target. Investors expect that to continue and it target. Investors expect that to continue and it is target. Investors expect that to continue and it is filled target. Investors expect that to continue and it is filled in target. Investors expect that to | continue and it is filled in hopes of Interest Rate cuts this year. Lets speak to Fiona Cincotta from city index. How much of this excitement is about potential of ai, and is there a risk that the optimism is overblown . Thanks for having me. So, yes. There is a lot of optimism surrounding ai and what has been interesting as we come to the end of this Earnings Seasonis come to the end of this Earnings Season is that we have actually seen this ai optimism start to turn into facts and figures, and i think that is what is part of what has really been driving this rally as well. We just need to look back at nividias earnings so notjust the just need to look back at nividias earnings so not just the figures coming out now but guidance for the coming out now but guidance for the coming quarters is really driving that Buying Interest into ai stocks, but also we are seeing that it is not just ai stocks but also we are seeing that it is notjust ai stocks now. It is starting to broaden outjust slightly as well, which is also encouraging, but as you said, there is also a worry you have to be wary of that perhaps could it be a little bit overdone, could this be a bubble that we are starting to see . For now, as the numbers are backing up the rally, i think there is this optimism for now that we do seem to be at levels that could be supported by the numbers. If we see this continue to get much hotter, then i think there would be some cabbages that will be a boggle forming. From the future to that will be a boggle forming. From the future to hear that will be a boggle forming. From the future to hear and that will be a boggle forming. From the future to hear and now that will be a boggle forming. From the future to hear and now to inflation and the cost of borrowing, tell us more about the pce index which is the feds referred barometer of how to measure inflation. What has it told us about prices and the us economy . We saw the Smallest Prices and the us economy . We saw the smallest possible prices and the us economy . We saw the smallest possible Increase Prices and the us economy . We saw the smallest possible increase in the smallest possible increase in inflation in three years. We also saw personal spending fall for the first time in five months. We know that the us consumer has been really very resilient, so that is also a good sign when spending comes down. That means that inflationary pressures also ease. But there was another side to this report as well. We saw on a monthly basis that inflation tech higher at the fastest pace since february last year and Services Inflation was the highest level in 12 months. Ticked higher. They are figures the Federal Reserve will keep an eye on. They are looking to get inflation back to this 2 level and start to cut Interest Rates as from i think the markets are suggesting june is when we are going to see it. The fed seems comfortable pointing towards june as well but i do not thinkjune is a done deal yet. We are going to see a few more reports come out before Thatjune Meeting and i think Services Inflation is what the fed is going to want to see start cooling further. Is going to want to see start cooling further. Is going to want to see start coolin further. ,. ,. ,. , cooling further. Fiona cincotta from ci index, cooling further. Fiona cincotta from city index, thanks cooling further. Fiona cincotta from city index, thanks for cooling further. Fiona cincotta from city index, thanks for that. Lets stay with that theme but move to europe because in a few hours time we get february Inflation Numbers for the euro area. Prices were rising at an annual rate of 2. 8 injanuary, down from 2. 9 in december. And we are expecting another fall in the rate of inflation, possibly down to 2. 5 . That could give the European Central bank more of the evidence it needs to start cutting Interest Rates from their record high. Azad zangana is senior european economist at schroders here in london. Welcome to the programme. 2. 5 . Is that what you were expecting as well . ~. , that what you were expecting as well . ~. ,. , well . We had figures released esterda well . We had figures released yesterday from well . We had figures released yesterday from the well . We had figures released yesterday from the biggest. Well . We had figures released yesterday from the biggest economies across the eurozone and it did suggest that there will be a further fall in inflation but probably not quite down to 2. 5 . There has still been small increases in energy costs, especially in germany which may be a figure of around 2. 6 . The ecb has signalled that even if inflation slow, that is not all they are looking at. They are also looking at wage growth. What do you think is the right path for rate cuts in the eurozone . Think is the right path for rate cuts in the eurozone . They will not no hither cuts in the eurozone . They will not go higher from cuts in the eurozone . They will not go higher from here. Cuts in the eurozone . They will not go higher from here. We cuts in the eurozone . They will not go higher from here. We are go higherfrom here. We are expecting rate cuts to come through fairly soon, perhaps not this month but we think probably next month, and then we expect a one percentage point cut across the main Interest Rates over the course of the next year. Rates over the course of the next ear. ,. ,. ,. , year. How much is the fate of the German Economy year. How much is the fate of the German Economy on year. How much is the fate of the German Economy on their year. How much is the fate of the German Economy on their minds| year. How much is the fate of the German Economy on their minds when it comes to deciding when to cut . Of course, germany is the most powerful economy in europe, currently arguably the sickest in the club right now two. The arguably the sickest in the club right now twe arguably the sickest in the club riaht nowtwo. ,. ,. , right now two. The German Economy has certainly right now two. The German Economy has certainly been right now two. The German Economy has certainly been struggling right now two. The German Economy has certainly been struggling for has certainly been struggling for some time and we had a contraction at the end of last year. It is possible that they are in a technical recession as we go through the first quarter. The European Central bank does not solely Pay Attention to any particular country. They always look at the aggregate but of course germany being so large has a large impact across has a large impact across the euro area but smaller countries like italy, spain, even the netherlands and belgium have been rebounding in recent months so it does look like the worst of the downturn is behind us as well as the worst of the inflation which has been one of the biggest reasons why the economy has struggled so much. Hopefully that will lead to those Interest Rate cuts everyone is looking for. 5de cuts everyone is looking for. Azad zan. Ana cuts everyone is looking for. Azad zangana from cuts everyone is looking for. Azad zangana from schroders. Thank you. Lets turn to economic tensions between the us and china now because President Biden� s trade chief Katherine Tai has suggested its healthier that trade between the two sides has decreased and that they are less reliant on each other. Last year, for the first time in more than two decades, mexico overtook china as the leading source of goods imported into the United States. The shift reflects the growing tensions between washington and beijing as well as us efforts to import from countries that are friendlier. Ambassador tai has been speaking exclusively to our middle east Business CorrespondentSameer Hashmi at the world trade 0rganizaton Ministerial Conference in abu dhabi. We knew several years ago that we needed to diversify us china trade, that the dependencies going both ways were increasing tensions and vulnerabilities. So a drop in trade between the United States and china is not necessarily negative. We could be a positive sign of diversification on both sides. I have not looked at the specific data you are pointing to, but i want to address in a really sober way some of the data and statistics that we see and widen the lens to understand what the overall trends are. fin see and widen the lens to understand what the overall trends are. What the overall trends are. On the eve of m03 what the overall trends are. On the eve of m03 a what the overall trends are. On the eve of Mc13 A Report what the overall trends are. On the eve of Mc13 A Report is what the overall trends are. On the eve of Mc13 A Report is released what the overall trends are. On the eve of Mc13 A Report is released by| eve of Mc13 A Report is released by your department which criticised china for being the biggest challenge to the International Trading system. China has retaliated by accusing the United States of Trade Bullying and unilateralism. This is a lot going on and this has resurfaced to create tension that has been the hallmark of this relationship over the last few years. How do you see these relations going ahead . I years. How do you see these relations going ahead . I know that is something relations going ahead . I know that is something that relations going ahead . I know that is something that Everybody Relations going ahead . I know that is something that everybody has. Relations going ahead . I know that is something that everybody has a | is something that everybody has a stake in because we are the two largest economies in the world, and thatis largest economies in the world, and that is why the World Trade Organisation is actually a really 0rganisation is actually a really important institution. It is a place where all of us have a seat and have a say in adapting and formulating the rules for all of us to be playing by. Iwill the rules for all of us to be playing by. I will say this one of the ways that the wto is showing its age is that the wto came about at a time when the economy is in the world were difference, and the economies that are here at the wto have also grown, and china is a good example, and china joined the wto in 2001. It was much smaller in footprint than it is today, and i think that chinas Economic Development is creating many Competitive Pressures around the world. That is a challenge that the wto is going to need to rise to meet. ,. , wto is going to need to rise to meet,. , ~ wto is going to need to rise to meet. ,. , ~ ~. , meet. So, you think the wto has to do more on meet. So, you think the wto has to do more on that meet. So, you think the wto has to do more on that front meet. So, you think the wto has to do more on that front in meet. So, you think the wto has to do more on that front in order meet. So, you think the wto has to do more on that front in order to. Do more on that front in order to pull up china . I5 do more on that front in order to pull up china . Do more on that front in order to pull up china . Do more on that front in order to ull u china . ,. ,. , pull up china . Is there more that we need to do at pull up china . Is there more that we need to do at the pull up china . Is there more that we need to do at the wto pull up china . Is there more that we need to do at the wto to pull up china . Is there more that we need to do at the wto to address i pull up china . Is there more that we | need to do at the wto to address the economic and Competitive Pressures that many of us are feeling in the Global Economy because of economic and trade footprint of china and its particular system . Yes, that is something we absolutely need to do. That is a part of this wto reform project, which is the wto is here to serve the interests of all of its members large and small. Serve the interests of all of its members large and small. Donald trum is members large and small. Donald trump is saying members large and small. Donald trump is saying that members large and small. Donald trump is saying that he members large and small. Donald trump is saying that he is members large and small. Donald trump is saying that he is going members large and small. Donald trump is saying that he is going to l trump is saying that he is going to erase chinese goods if he comes back to office. Well be Biden Administration follow the same policy and be tough on the chinese and even look at raising tariffs if they are back in office . President biden has been they are back in office . President biden has been clear they are back in office . President biden has been clear that they are back in office . President biden has been clear that his they are back in office . President. Biden has been clear that his trade policy needs to work for more americans and in particular that americans and in particular that American Workers need to benefit from American Trade Policies and we remain convinced that there is a way for us to have a version of globalisation where countries and economies come together to build their middle classes together and not pitch their workers and their middle classes against each other. Aha, middle classes against each other. A Katherine Tai there. The World Trade OrganizationMinisterial Conference in abu dhabi is just wrapping up. They have been holding all night talks and putting out their draft statements. They are still wrangling over a deal on subsidies to farmers and fishing rights. We will bring you more when we get it. Lets get some of the days other news now. India was the worlds Fastest Growing major economy in 2023 for the third year in a row. Growth came in at 8. 4 between october and december much stronger than expected. India is forecast to overtake japan and germany to become the worlds number three economy after the us and china in the next few years. The data comes as a boost for Prime Minister narendra modi, who faces a general election this year. Sainsbury� s has announced its cutting around 1500 jobs subject to consultation as part of plans to save around £1 billion over three years. It says roles will be lost at its Contact Centre in cheshire, in store bakeries, and some local fulfilment centres. Some staff will be redeployed, with alternative roles found where possible. 0cado has warned it could take legal action against Marks Spencer if the retailer does no