Bloomberg Daybreak: Europe Edition Waller Backs Fed Cut Now, 1000% Return BOE Bet, Looking For G-20 Friends
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Jul 18, 2025 Federal Reserve Governor Christopher Waller advocates for immediate interest rate cuts to bolster a weakening labor market. Traders are gambling on a potential 1,000% return by betting on the Bank of England's possible rate cuts despite rising inflation. Meanwhile, Netflix defies market trends with strong earnings as media rivals struggle. The discussion also touches on ongoing global financial dynamics influenced by U.S. trade policies, especially in the context of the G20 meeting and its repercussions on international economic stability.
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Waller Backs Fed Rate Cut
- Fed Governor Christopher Waller supports a 25 basis point interest rate cut this month due to labor market weakness.
- He expects inflation to remain controlled and favors additional cuts moving policy towards neutral.
Powell Defends Fed Renovations
- Fed Chair Jerome Powell defended Fed's $2.5 billion renovation amid criticism and political pressure.
- He highlighted necessary upgrades like asbestos removal to ensure building safety.
Contrarian Bet on BoE Cuts
- Some traders bet on a 75 basis point Bank of England rate cut this year despite high inflation.
- The bets hinge on a cooling UK labor market with falling payrolls and vacancies.