Bloomberg Daybreak: Europe Edition Daybreak Weekend: The Future of the Fed, UK Private Markets, Miran's Impact Overseas
Sep 20, 2025
Sweta Gopinath, a Bloomberg private equity reporter, dives into the challenges facing private markets, discussing fundraising hurdles and the evolving regulatory landscape. Swati Pandey, an Asia-Pacific security expert, analyzes the AUKUS alliance and Australia's rising defense budget amidst tensions with China. Lastly, Shuli Ren examines the weakening U.S. dollar and its implications for global reserve assets, offering insights into future capital flows. This lively conversation covers the future of finance and international relations.
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Fed Cut Was Insurance Against Hidden Weakness
- Edward Harrison argues the Fed's 25bp cut was an insurance move responding to a weaker-than-reported labor market.
- Revised payroll data showed about 900,000 fewer jobs over a year, forcing the Fed to reassess economic weakness.
Tariffs Could Rekindle Inflation Pressure
- Harrison warns tariffs are increasingly being passed to end consumers rather than absorbed by firms.
- That transmission risks lifting inflation above the Fed's 2% target even as policy eases.
Premium Travelers Prop Up Legacy Airlines
- George Ferguson says summer travel demand favoured premium travellers, helping legacy carriers more than low-cost ones.
- Excess capacity at low-cost carriers keeps pressure on their results despite stronger overall demand.