Bloomberg Daybreak: Asia Edition Daybreak Weekend: U.S Retail, ECB Meeting, TSMC Earnings
8 snips
Apr 11, 2025 Jane Lanhee-Lee, a North Asia tech reporter for Bloomberg News, and Geetha Ranganathan, a Bloomberg Intelligence Analyst on U.S. Media, delve into the anticipated U.S. retail sales and Netflix's changing reporting strategies. They explore the impact of tariffs on consumer spending and inflation, highlighting TSMC's strategic moves amid U.S. trade policies. The conversation also covers the European Central Bank's challenges and responses during economic uncertainties, providing insights into global market dynamics and the evolving landscape.
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Good News, Bad News
- March's positive economic indicators, like lower inflation and increased auto sales, suggest a healthy U.S. consumer.
- However, the looming tariff war introduces significant uncertainty, potentially impacting future consumer spending and economic growth.
Tariff Trouble
- The escalating tariff war threatens consumer spending and overall economic stability by creating uncertainty for businesses and investors.
- A 1% tariff increase can drag down real GDP growth by 15 basis points, while a 25% tariff increase can add 2.5% to core inflation.
Fed's Dilemma
- The Federal Reserve faces a challenge in balancing its dual mandate of maximum employment and price stability amid tariff threats.
- These tariffs could de-anchor inflation expectations and create slack in the economy.