Bloomberg Daybreak: Europe Edition Daybreak Weekend: Nike Preview, TheCityUK, China Eco Survey
Jun 21, 2025
Eric Zhu, an economist at Bloomberg Economics focusing on China and Hong Kong, dives into the complexities of China's current economic landscape. He discusses the consumer and business confidence amid government growth strategies and the implications of the U.S.-China trade war. Zhu highlights the challenges young workers face and analyzes how international relations are shifting, particularly in the Indo-Pacific after the AUKUS Pact. His insights shed light on China's role as it navigates economic difficulties and geopolitical tensions.
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US Inflation and Consumer Spending
- The U.S. PCE price index is expected to rise slightly due to tariffs but may not broadly increase inflation.
- Income and consumer spending are slowly growing, showing cautious consumer behavior.
Fed's Uncertain Rate Outlook
- The Fed sees potential for two rate cuts but lacks confidence to make firm decisions.
- They are currently choosing to hold rates steady until more economic data clarifies the outlook.
Powell's Congressional Testimony Strategy
- Powell will likely avoid commenting on fiscal policy during Congress testimony.
- Focus will remain on monetary policy, which is stable without immediate changes.