Bloomberg Daybreak: US Edition Daybreak Weekend: Jobs Report, European Banking, China's Technology Battle
Aug 29, 2025
Michael McKee, Bloomberg's International Economics and Policy Correspondent, and Shuli Ren, a columnist in Hong Kong, delve into gripping economic topics. They analyze the implications of the upcoming jobs report on U.S. monetary policy and discuss the challenges facing Europe’s banking sector amidst geopolitical tensions. They also tackle the intense tech rivalry between China and the U.S., highlighting advancements in industrial AI and the shifting landscape of China’s stock market, making for an engaging discussion on global finance.
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Inflation Keeps Fed Cautious
- The July PCE showed core inflation rising year-over-year, undermining a confident path to 2% for the Fed.
- Policymakers will wait for the August jobs report and September CPI before deciding on rate cuts.
Jobs Outlook Shapes Fed Timing
- Economists forecast roughly 75,000 payrolls and a small unemployment uptick to 4.3% for August.
- The Fed tolerates a gradual rise in unemployment but would worry about a faster jump toward 4.5%.
AI May Be Driving Business Investment
- Q2 GDP showed growth and stronger business investment, possibly reflecting AI-related capital spending.
- Income and spending rose, but some gains were driven by auto purchases and pricing actions.