Bloomberg Daybreak: Asia Edition Daybreak Weekend: Nike Preview, TheCityUK, China Eco Survey
Jun 20, 2025
Eric Zhu, a China economist for Bloomberg Economics, dives into key insights from Bloomberg's China Economic Survey. He discusses the troubled property market and challenges of deflation facing the Chinese economy. Zhu also explores the changing consumer priorities among the younger generation in China and their potential long-term impacts on demand. Additionally, he touches on the UK’s economic recovery struggles and the geopolitical implications of recent international agreements.
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Fed's Data-Dependent Rate Strategy
- The U.S. Fed views inflation as currently under control with no immediate need to raise or cut rates.
- Fed officials remain uncertain about economic forecasts and rate cuts depend heavily on incoming data.
Nike Faces Tariff Challenges Strategically
- Nike expects a sales decline in Q4 with tariff impacts more evident in next fiscal year's guidance.
- Price increases on higher-end products aim to offset tariff-related cost pressures.
Nike's Diverse Manufacturing Risks
- Nike maintains global supply diversity, with China production largely supporting non-US regions.
- Rising tariffs in Vietnam could pose challenges, as much of Nike's footwear is made there.