Bloomberg Daybreak: US Edition Daybreak Weekend: Fed Preview, BOE Decision, China Data
Dec 14, 2024
Dan Hansen, Bloomberg's Chief UK Economist, provides keen insights on the Bank of England's upcoming monetary policy decision and its relationship with rising labor costs. He discusses market expectations for potential rate cuts amid inflation concerns. The conversation also shifts to China's economy, analyzing crucial data releases and government strategies for consumption-led growth in a challenging environment. Hansen’s expert analysis sheds light on global economic interconnections, particularly between the UK and China's evolving landscape.
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Fed Interest Rate Cut
- The Federal Reserve is expected to cut interest rates this Wednesday.
- Factors like slowing inflation and a stable labor market support this decision.
Nike's Sales Decline
- Nike's sales have been down for two quarters, and the new CEO, Elliott Hill, is yet to reveal a turnaround plan.
- Investors are waiting to see how Hill will address the declining demand.
Bank of England Rate Cuts
- The Bank of England might cut borrowing costs five times to 3.5% without overheating the economy.
- Bloomberg Economics suggests this based on an assessment of the neutral rate.