Bloomberg Daybreak: Asia Edition US Government Nears Shutdown, China Golden Week Begins
Oct 1, 2025
Viraj Patel, Executive VP at Fiduciary Trust International, provides keen insights into the looming US government shutdown and its potential market impacts. He emphasizes resilience in US equities despite political standoffs and discusses the Fed’s influence on economic conditions. Meanwhile, Catherine Lim, Senior Analyst at Bloomberg Intelligence, explores the significance of China’s Golden Week, highlighting consumer spending trends and government initiatives to boost consumption, including vouchers and extended services, offering a glimpse into the potential economic recovery.
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AI Backed By Real Corporate Cash
- AI spending is real and funded largely by healthy corporate free cash flow rather than pure hype.
- Market breadth is improving as cyclical sectors like homebuilders and small caps revive alongside AI winners.
Fed Torn Between Jobs And Inflation
- The Fed faces conflicting signals: a cooling labor market and lingering inflation risks that complicate policy.
- Viraj Patel reads the Fed as slightly tilting toward supporting labor due to downside risks from weaker employment.
Tariffs Met With Corporate Resilience
- Trade rhetoric looks like negotiation and posturing rather than immediate economic rupture.
- Companies currently absorb tariff pressures because revenues and profit margins remain near record highs.