Bloomberg Daybreak: Asia Edition Daybreak Weekend: Jobs Report, European Banking, China's Technology Battle
Aug 29, 2025
Michael McKee, Bloomberg's International Economics and Policy Correspondent, offers expert insights on the imminent August jobs report and its implications for inflation and Federal Reserve policy. Shuli Ren, a Bloomberg Opinion columnist, discusses the surge in China's tech stocks amidst the ongoing technology rivalry with the U.S. They explore the evolving landscape of European banking and the anticipated reforms needed to attract investments, making for a thought-provoking conversation on global economic trends.
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Fed Is Data-Dependent On Inflation Signals
- The July PCE showed core inflation ticking up to 2.9% year-over-year, complicating Fed decisions.
- The Fed remains data-dependent and awaits the jobs and CPI reports before deciding on cuts.
Adjust For Seasonal School-Year Effects
- Expect seasonal and school-year effects in August payrolls and let economists adjust for them.
- Watch private-sector job trends to judge whether hiring weakness is broad-based.
AI May Be Driving Unexpected Business Investment
- Q2 GDP and incomes showed resilience, partly driven by consumer and auto spending.
- Business investment rose, likely reflecting AI-related investment despite firms saying they were on the sidelines.