Bloomberg Daybreak: Asia Edition Daybreak Weekend: Bank Earnings, UK Asset Slump, Nippon Steel
Jan 10, 2025
Dan Hansen, Bloomberg's chief UK economist, shares insights on the UK's financial challenges, including inflation and government responses following the mini-budget crisis. Meanwhile, Danny Lee, a Bloomberg News reporter specializing in Asia's EV sector, delves into BYD's rise in the competitive Chinese electric vehicle market. The duo discusses the implications of U.S. economic data on bank earnings and the effects of global market trends on the UK, along with the potential for international relations to shift as automakers navigate consolidation.
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Impact of Jobs Report on Inflation
- The December jobs report showed unexpectedly strong job growth and a decrease in unemployment.
- This suggests uncertainty about inflation's trajectory, as it remains above the Fed's target despite previous predictions of decline.
Importance of CPI Data
- The focus should be on CPI data, as it significantly influences Fed policy and market reactions.
- Retail sales data will likely show continued consumer spending but less market impact.
Fed's Stance on Inflation and Rate Cuts
- The Fed is comfortable with current inflation levels, as certain inflation measures excluding estimated prices look better.
- Rate cuts will likely occur only if inflation rises significantly above current levels.