Bloomberg Daybreak: Europe Edition Daybreak Weekend: Bank Earnings, UK Property Market, China Trade
Jan 9, 2026
Michael McKee, Bloomberg's international economics correspondent, dives into U.S. inflation data and its implications for Federal Reserve policy, while highlighting the distortions from missing data. Herman Chan, a senior U.S. banks analyst, discusses drivers of bank earnings, emphasizing strong trading outcomes and how Fed rate cuts could enhance net interest margins. John Liu, Bloomberg's chief China correspondent, analyzes geopolitical tensions, especially between China and Japan, and the shifting landscape of China's trade relationships, including ties with Latin America and Europe.
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December CPI Will Be Distorted But Informative
- December CPI will include full price tables but month-over-month comparisons are distorted by the government shutdown.
- Economists expect a ~0.3% monthly rise, keeping headline annual CPI near 2.7% which matters for Fed decisions.
Small CPI Rise Could Stall Fed Cuts
- Consensus expects about a 0.3 percentage point monthly uptick in both headline and core CPI.
- That modest rise could weaken the case for further Fed rate cuts even with soft payrolls.
Official Views May Not Match Data Yet
- Fed Governor Waller highlights productivity gains and tariff effects as reasons underlying inflation may be lower.
- Michael McKee says those rationales are plausible but not yet supported by the numbers.