Bloomberg Daybreak: Asia Edition Daybreak Weekend: Bank Earnings, UK Property Market, China Trade
Jan 9, 2026
Michael McKee, Bloomberg's international economics and policy correspondent, dives into the implications of U.S. inflation data and Fed policy, highlighting the affecting 'Fearsome Five' price pressures. Also joining is John Liu, Bloomberg's chief China correspondent, who explores China-Japan relations, the impact of Venezuela on China's oil strategy, and China's evolving trade partnerships with Europe and Latin America. They discuss the shifting landscape of both U.S. banking and the UK's property market, revealing key economic trends to watch.
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December CPI Has Built-In Distortions
- December CPI will contain distortions from the government shutdown but still gives a full price snapshot for the month.
- Economists expect headline and core CPI to tick up ~0.3 percentage points, which could dampen Fed rate-cut prospects.
Inflation And Jobs Could Stall Fed Cuts
- A slightly hotter December CPI and weak jobs data together make the case that the Fed may not need additional cuts.
- Market attention will focus on whether inflation trends reverse direction, not just monthly noise.
Hidden Service Costs Keep Inflation Sticky
- Certain services like airfares, rents, medical and car insurance are persistent inflation drivers despite overall easing.
- Used car price swings and seasonal retail discounts can still materially move monthly CPI readings.