Bloomberg Surveillance The Fed Decides; Warner Bros. Bidders Brace for a Fight
Dec 10, 2025
Frances Donald, Chief Economist at RBC Capital Markets, dives into the intriguing dynamics of the U.S. labor market and the Fed's potential rate cuts. She highlights the uneven impacts of tariffs across sectors and the limited relief small businesses might see. Meanwhile, Robert Fishman, Senior Analyst at MoffettNathanson, breaks down the competitive landscape for Warner Bros assets, comparing Netflix's and Paramount Skydance's bids. He warns about the cultural challenges in media mergers and the strategic significance of Warner's content in shaping future streaming engagement.
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Fed Cuts Seem Counterintuitive
- Frances Donald argues data looks hawkish: inflation above target and very tight unemployment.
- She wants Powell to explain why the Fed would cut given that backdrop.
Data Lag Creates Policy Optionality
- Frances Donald highlights data lags and missing 2025 clarity heading into 2026.
- She warns many policy calls hinge on a big batch of data due between now and January.
Tariffs Are The Big Hidden Shock
- Donald frames tariffs as a once-in-100-year trade shock with sectoral impacts.
- She says tariffs, not rates, explain much of small-business and sector pain.