Bloomberg Daybreak: US Edition Daybreak Weekend: Nike Preview, TheCityUK, China Eco Survey
Jun 20, 2025
Eric Zhu, an economist specializing in China and Hong Kong for Bloomberg Economics, dives into the nuances of the Chinese economy's challenges. He discusses the findings from Bloomberg’s China economic survey, highlighting sluggish growth and the troubling property market. The conversation also touches on potential shifts in consumer behavior towards 'emotional consumption' and the broader implications for economic stability. Zhu provides critical insights into how these trends may affect both the domestic and global economic landscape.
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U.S. Inflation Expectations
- U.S. inflation, measured by the PCE price index, is expected to rise slightly to around 2.3% headline and 2.6% core.
- This trend is driven partly by tariffs, but inflation remains generally in check and the Fed is content with current rates.
Fed's Rate Cut Forecast Uncertain
- The Fed's dot plot predicts two potential rate cuts this year but with low confidence.
- The economy's future is uncertain, so rate decisions remain data-dependent and guarded.
Nike Faces Sales Drop Amid Tariffs
- Nike's fiscal Q4 sales are expected to drop mid-teens globally and 20% in China, with tariff impacts more evident in fiscal Q1 guidance.
- Nike has increased prices on items over $100 to offset tariffs and expects to weather the situation.