Bloomberg Daybreak: US Edition Daybreak Weekend: Bank Earnings, UK Property Market, China Trade
Jan 9, 2026
Michael McKee, Bloomberg's international economics correspondent, discusses U.S. inflation challenges, including distorted CPI data due to a government shutdown. Herman Chan, a senior U.S. bank analyst, sheds light on major bank earnings and trends that hint at economic health, suggesting affluent consumer bases bolster credit quality. John Liu, Bloomberg’s chief China correspondent, explores geopolitics affecting China’s trade dynamics, particularly tensions with Japan and strategic ties with Venezuela. Together, they provide a compelling outlook on global economic interactions.
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December CPI Will Be Distorted But Informative
- December CPI will have distortions because the BLS missed October and that affects month-to-month comparisons.
- Economists expect a ~0.3% monthly rise and a 2.7% year-over-year headline, which could lessen the case for Fed cuts.
Small Monthly Rise Could Stall Fed Cuts
- Economists expect a ~0.3% monthly rise in both headline and core CPI, leaving year-over-year headline at 2.7%.
- If inflation trends a bit hotter, it reduces pressure for the Fed to cut rates further.
Inflation Hides Persistent 'Fearsome Five' Pressures
- Underlying inflation hides persistent price pressures in items like airfares, rents, medical and car insurance.
- Used car prices and food remain volatile and can sway headline readings unexpectedly.