Episode summary
Daybreak Weekend: Fed Meeting, UK Election, BOJ Decision | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 38 min · Hosts: Nathan Hager
Summary
Markets are heading into a dense week of policy decisions and politically sensitive catalysts. The host said the Fed will open its June meeting on Tuesday and deliver its decision Wednesday, with investors watching whether Kevin Worsh keeps rates unchanged, removes any hint of future cuts, and says anything about the dot plot or Fed communication. Michael McKe said Worsh is under pressure to show independence, while Jay Powell is expected to stay in the background.
The episode also flagged three US stocks to watch: Kroger, CarMax and DraftKings. A Bloomberg Intelligence analyst expects Kroger to post its weakest sales and profit growth of the year, with same-store sales likely at the lowest level since August 2024. CarMax is expected to show EPS down about 30% year over year, and DraftKings is being watched for whether the World Cup converts into more users and betting handle without too much promotional spending.
In the UK, the host and guests focused on a by-election in Makerfield and the Bank of England meeting on the same day. The discussion centered on Andy Burnham’s political ambitions, Labour’s weakness, and the possibility that the BOE leaves rates unchanged while maintaining a hawkish tone. In Asia, the Bank of Japan is expected to keep policy steady as officials try to contain inflation, weak yen pressures and the effects of higher oil prices.
Key takeaways
- Michael McKe said Worsh may use his first Fed meeting to signal independence and potentially revisit the dot plot and the Fed’s communication style.
- Bloomberg Intelligence expects Kroger’s weakest sales and profit growth of the year, with same-store sales at the lowest level since August 2024.
- The host said CarMax is expected to report adjusted EPS of about 97 cents, down 30% from a year earlier, as the used-car market remains under strain.
- Judy Lru said DraftKings could benefit from the World Cup, but only if it adds users and handle without overspending on promotions.
- Anna Andrade said the Bank of England is likely to leave rates unchanged, but a continued hawkish stance could threaten credibility if it does not act later.
- Molly Smith said the Bank of Japan’s main challenge remains weak yen-driven inflation pressure, even as exporters continue to benefit.
Notable quotes
“The first decision and news conference for new Fed Chair Kevin Worsh”
“they'll probably take that out and leave the statement fairly anodine, leave it open, as neutral as they can be”
“I think the most notable shift is probably going to be in the vote split”
“anything less than a decisive move could create doubt about the BOJ's commitment to contain inflation”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight ahead on the program, we'll look to the next policy decision from the Fed. I'm Nathan Hager in Washington. I'm Caroline Hepka in London where we're asking what's next for the UK as it sits on the precipice of two big economic and political decisions.
I'm Doug Krner looking ahead at what's expected to be a rate hike next week from the Bank of Japan. That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 1130 New York, Bloomberg 991 Washington DC, Bloomberg 929 Boston, DAB Digital Radio London, SiriusXM121, and around the world on Bloombergradio.com and the Bloomberg Business App.
Good day to you. I'm Nathan Hager. We begin today's program with the Federal Reserve.
All eyes will be on the world's most important central bank when it begins its June policy meeting on Tuesday and issues its decision Wednesday. The first decision and news conference for new Fed Chair Kevin Worsh. For more on what to expect, we are joined by the man who will be in the room when the decision comes down, Michael McKe, international economics and policy correspondent for Bloomberg radio and television.
No pressure, right, Mike? I mean, how much pressure is War facing? Is he under pressure right now?
Uh yes. Uh he's under a pressure maybe a little bit different than people anticipated when the president was first nominating him. There was a feeling that of course Trump would be on his case immediately to start lowering interest rates. The president said at one point, "I'm not going to pick anybody who won't cut interest rates." But since then, we've seen inflation flare up quite a bit because of the war that Donald Trump started.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fomc decision
- fed meeting
- uk election
- bank of england decision
- bank of japan decision
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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