5 things to start your day

[Bloomberg]( Shutdown fears loom, bad news for Theresa May, and oil hits the highest since November. This again The thing about the [deal brokered]( to end the longest shutdown in U.S. history is that it was only a short-term funding extension – and the time that bought is rapidly running out. While the federal government has the money to keep operating until Feb. 15, House Speaker Nancy Pelosi said the committee working to resolve the stalemate needs to finalize the plan by [this Friday]( to allow time for votes in Congress. That process risks being upended by President Donald Trump’s State of the Union address tomorrow which may include an [emergency declaration]( to start building a border wall. Bad news on Brexit There were more signs of the pressure the uncertainty over Brexit is [putting on businesses in the U.K.]( over the weekend when carmaker Nissan said it would no longer make its upcoming X-Trail model at [its British plant](, as had been previously announced. Construction industry data showed that the sector barely grew in January, with respondents to IHS Markit’s survey saying that clients were taking a “[wait-and-see approach](” before committing to new investments. Prime Minister Theresa May, meanwhile, has [set up a working group]( to find a solution to the stand off over the withdrawal agreement that could prevent a hard exit on March 29. Oil rises West Texas Intermediate futures hit the [highest level since November]( this morning, with a barrel for March delivery rising as high as $55.75. The rally, driven by political uncertainty, [OPEC cuts]( and worries about a slowdown in shale production, is seeing a rush out of short positions on the commodity. Hedge funds have abandoned [more than half their short-selling bets]( in the last four weeks after oil had its [best month]( in almost three years in January. Markets quiet Overnight, the MSCI Asia Pacific Index climbed less that 0.1 percent as trading in the region slows down for the Lunar New Year. Japan’s Topix index closed 1.1 percent higher as the yen extended losses against the dollar. In Europe, the Stoxx 600 index was flat at 5:50 a.m. Eastern Time with no major news to drive equities on what is a quiet start to the week. S&P 500 futures pointed to a [small gain at the open](, the 10-year Treasury yield was at 2.698 percent and gold was lower. Coming around Federal Reserve Bank of Minneapolis President Neel Kashkari said Fed Chair Jerome Powell is “[coming around](” to a wait-and-see view on the economy. Kashkari, who is not a voter this year on the FOMC, said that he still thinks the U.S. economy has room to run, while warning against tapping the brakes too early. At 7:30 p.m., Cleveland Fed President Loretta Mester is due to discuss the economic outlook, which may give investors a better idea of who else at the Fed is flashing dovish signals. Also today, Google parent Alphabet Inc. reports results after the bell. What we've been reading This is what's caught our eye over the weekend. - Odd Lots: What you need to [understand about India]( ahead of the upcoming election. - JPMorgan says 2020 “might not be a year to [think about recession](.” - Want a [hot stock tip](? Watch Trump’s State of the Union speech. - Bond markets signal the ECB may have [missed its chance]( to lift rates. - Why [Italy’s debts]( are Europe’s big problem. - The curious case of Norway’s [60 million barrels of missing oil](. - The “stuff” of the universe [keeps changing](. And finally, here’s what Joe's interested in this morning Friday's [jobs report]( was a nice Rorschach test for you to look at the economy, because it lent itself to different narratives. You could look at it and say, the labor market is blazing hot, and therefore it doesn't make sense for the Fed to pause on rate hikes. Or you could look at it and say, there's still plenty of people who want to work, wage growth is still mild, and the labor force participation rate is creeping upwards, therefore the Fed has plenty of time to be patient. The only problem with the second narrative, however, is that it was just as valid throughout the entirety of 2018, when the Fed was hiking every quarter, so it's hard to see how that's new. Meanwhile, it didn't get as much attention, but we also got [the latest Manufacturing ISM report for the U.S. on Friday](, and it too allowed for the same split narrative. Overall factory conditions jumped nicely in January, easily exceeding economist expectations. However, the prices-paid index dropped below 50 for the first time in three years, meaning costs for businesses are coming down. That doesn't exactly suggest an overheating economy that the Fed needs to tamp down. Simply from a dual mandate perspective, it doesn't look like there's any real risk to things on the inflation front anytime soon. Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. [Learn more](. [FOLLOW US [Facebook Share]]( [Twitter Share]( [SEND TO A FRIEND [Share with a friend]]( You received this message because you are subscribed to Bloomberg's Five Things newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022