Bloomberg Daybreak: Europe Edition Daybreak Weekend: US GDP, UK Politics, China Eco
Dec 19, 2025
John Liu, Bloomberg's Chief China Correspondent, shares insights on China's economic challenges, emphasizing the risks in the property sector and the intricacies of local consumption. Rosa Prince, a Bloomberg opinion columnist, discusses the tumultuous state of UK politics, including potential leadership challenges for Prime Minister Keir Starmer and the impact of Nigel Farage's Reform UK. Together, they explore how economic trends and political dynamics in both nations may shaping the future.
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Q3 GDP Revision Could Surprise
- Q3 GDP revision may show much stronger growth than first read, with nowcasts near 3.5% from the Atlanta Fed.
- Ed Harrison warns top-line GDP can mask a K-shaped economy and labor-market cracks felt by lower-wage workers.
AI Spend Masks Labor Weakness
- AI investment and large government deficits are propping up aggregate growth even as many workers face weaker job opportunities.
- The labor market shows mixed signals: falling payrolls in some months but rising participation recently.
Prioritize AI Spend, Offset Costs
- Expect big tech to prioritize selective AI projects and cut elsewhere to sustain margins and growth.
- Companies should balance heavy CapEx increases with hiring freezes or headcount reductions if ROI falters.