Bloomberg Daybreak: Europe Edition Daybreak Weekend: US Inflation, Renewable Energy, RBA Decision
Aug 8, 2025
Michael McKee is a Bloomberg International Economics and Policy Correspondent, while Rebecca Jones serves as Managing Editor for Australia and New Zealand. They delve into critical economic indicators like U.S. CPI and PPI, discussing their implications for Federal Reserve policy. The impact of inflation on renewable energy is a hot topic, intertwining with Cisco's earnings and AI market shifts. They also share insights on Australia’s economy and the upcoming RBA decision, shedding light on trade tensions and semiconductor production challenges.
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Episode notes
Monitor PPI Intermediate Goods
- Watch PPI intermediate goods for early tariff pass-through, Michael McKee says.
- Rising prices there signal inflation moving through supply chains to consumers.
Tariffs Will Drive Fed Reaction
- Tariff-driven inflation will shape Fed choices, Michael McKee warns.
- Markets paused to wait for CPI/PPI outcomes from tariff moves.
Stagflation Is A Modest But Real Risk
- Michael McKee warns mild stagflation could appear: slower growth with 3–4% inflation.
- That mix would still qualify as stagflation and constrain policy options.