Bloomberg Daybreak: Europe Edition Daybreak Weekend: Nvidia Earnings, Medef Conference, BOK Decision
Aug 22, 2025
In this engaging discussion, Stuart Paul, a U.S. economist at Bloomberg Economics, shares insights on key financial trends. He analyzes Nvidia's earnings and its performance amid geopolitical tensions, offering a glimpse into the tech giant's future. The conversation also delves into the Bank of Korea's upcoming monetary policy decision, considering its broader economic impacts. Additionally, Paul explores France's fiscal challenges and how they reflect the varying economic conditions across Europe.
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Powell Signals A Single Cautious Cut
- Jerome Powell signalled the Fed may be comfortable with a single, cautious rate cut soon rather than a sequence of cuts.
- He balanced acknowledging cooling labour markets with warnings that inflation risks remain skewed to the upside.
Treat Any September Cut As Incremental
- Expect a small 25bp cut framed with hawkish messaging that signals no predetermined follow-up cuts.
- Markets and policymakers should treat any cut as incremental and data dependent, not the start of a cutting cycle.
Equity Rallies Are Feeding Core Inflation
- July core PCE likely rose about 0.3% month-on-month with less tariff pass-through than earlier in the summer.
- Financial services price gains from equity rallies are a key source of core inflation pressure to watch.